Dedicated to each person infusing his / her individual responsibility to make the planet earth more liveable for our next generations...
Dedicated to each person infusing his/ her individual responsibility to make the planet earth more liveable for our next generations...
Our dedicated contributions today will witness a great revolutionary change tomorrow and will have far reaching impacts day after... -
Dadhich &Atrey
Our dedicated contributions today will witness a great revolutionary change tomorrow and will have far reaching impacts day after...
- Dadhich & Atrey
ŻĊġâÿdž It gives us immense pleasure to present you this compilation of case studies on best practices on Environmental, Social and Governance (ESG) and Corporate Social Responsibility (CSR) initiatives taken by Companies in India. The compilation is based on an ‘ESG-CSR Exhibition – Benchmarking Best Practices’ organized by the Indian Institute of Corporate Affairs (IICA) as part of celebration of the Azadi ka Amrit Mahotsav (AKAM). Azadi Ka Amrit Mahotsav is an initiative of the Government of India aimed at celebrating and commemorating 75 years of India’s Independence, the glorious KLVWRU\ RI LWV FLWL]HQV LWV GLYHUVLÀHG FXOWXUHV DQG PDQ\ NH\ DFKLHYHPHQWV 7KH Mahotsav is instrumental in appreciating the undying efforts of people of India ZKR KDYH FRQWULEXWHG LPPHQVHO\ DQG VLJQLÀFDQWO\ LQ EULQJLQJ ,QGLD WKXV IDU LQ its evolutionary journey as a nation of prominence in the global map. 0LQLVWU\ RI &RUSRUDWH $IIDLUV DQG LWV DIÀOLDWH LQVWLWXWLRQV SODQQHG D VHULHV RI event under AKAM Iconic Week from 7 June 2022 to 12 June 2022. Indian Institute of Corporate Affairs (an autonomous institution under the Ministry of Corporate Affairs) also organized an Exhibition on ESG-CSR Best Practices on 12 June 2022 at its campus at IMT Manesar, Distt. Gurugram (Haryana). Shri Rao Inderjit Singh, Hon’ble Union Minister of State, Ministry of Corporate Affairs, Ministry of Statistics and Programme Implementation (Independent Charge), and Ministry of Planning inaugurated virtually the exhibition as Chief Guest. India being one of a largest economy, democracy, populous country in the world holds the fate of millions of lives upon its shoulders, not only the lives of people habituating in the country at present but also those next generations who have to sustain the human life on the planet in future. Businesses are now universally recognized as primary engine of economic growth and sustainable development. ESG and CSR are the two acronyms most discussed these days particularly in the sphere of business in any country. Exhibition on ESG and CSR Best Practices presented a unique opportunity for various stakeholders of the ESG and I-9
I-10
PREFACE
CSR ecosystem in the country to be abreast of the latest developments happening in these domains. This book presents to you compilation of case studies of best practices appealed by the companies in ESG-CSR domains and exhibited during the ESG-CSR Exhibition: Benchmarking Best Practices at Indian Institute of Corporate Affairs. Garima Dadhich Ravi Raj Atrey
!śŒƌĊŒƌǖ PAGE
Message About the Editors Preface Acknowledgement 1. ESG & CSR Eco-system in India 2. Heading Towards an Environmentally Sustainable World Case Study 2.1 - Project Foot Print, HDFC Bank Limited Case Study 2.2 - Rejuvenation of Shanumangala Lake, Bosch Limited Case Study 2.3 - ReNew India Initiative, ReNew Power Private Limited Case Study 2.4 - Upcycling Project, Interglobe Aviations Limited Case Study 2.5 - ITC’s Water Stewardship Program, ITC Limited Case Study 2.6 - Samajeek Utthan - Water Stewardship Program, Galaxy Surfactants Pvt. Limited Case Study 2.7 - Water Resource Development & Management, IndusInd Bank Limited &DVH 6WXG\ $UWLÀFLDO 5HHI 'HSOR\PHQW LQ 6HD 1XFOHDU Power Corporation of India Limited Case Study 2.9 - A World Without Waste, 3R ZeroWaste Private Limited 3. Making Quality Education Innovative, Accessible and Available Case Study 3.1 - Building Greater Future, Tata Consultancy Services Limited Case Study 3.2 - GAIL Utkarsh, GAIL (India) Limited Case Study 3.3 - Code Unnati, SAP India Private Limited Case Study 3.4 - Quality Education, Ennoble Social Innovations Case Study 3.5 - Bridging the Digital Divide, HP Inc. India I-13
I-5 I-7 I-9 I-11 1 9 9 15 22 27 38 54 68 80 86 94 94 107 117 131 141
I-14
CONTENTS
PAGE
4. Strengthening the Livelihoods and Empowering Communities Case Study 4.1 - Creating Wealth for Communities, Adani Enterprises Limited Case Study 4.2 - Saksham - Empowering Persons with Disabilities, Minda Corporation Limited Case Study 4.3 - Bharat Sanjeevani, Bharat Financial Inclusion Limited Case Study 4.4 - Sustainable Agricultural Development, Godrej & Boyce Mfg. Co. Limited 5. Marching Towards a Healthier India Case Study 5.1 - Kishori Express, Jindal Steel and Power Limited Case Study 5.2 - Madhur Muskaan, Indian Oil Corporation Limited Case Study 5.3 - Naya Savera, J K Lakshmi Cement Limited 6. Providing Care for the Women and Child Case Study 6.1 - Nand Ghar, Vedanta Limited Case Study 6.2 - Ensuring Early Childcare, Oaknorth (India) Private Limited 7. Rural Development - Towards the Inclusive and Sustainable Development Case Study 7.1 - Village Development, Bharat Forge Limited Case Study 7.2 - Gram Uday, Publicis Sapient Consulting Private Limited Case Study 7.3 - Mandaura Village, Conquerent Control Systems Private Ltd. 8. ESG - An Approach Towards Holistic Development Case Study 8.1 - Focus on Biodiversity Conservation, Tata Power Company Limited Case Study 8.2 - ESG - Social - Community and Social Work, Cognizant Technology Solutions India Private Limited Case Study 8.3 - HP-RAMP Technology for Producing Biomethane from Biomass, Hindustan Petroleum Corporation Limited 9. ESG-CSR Way Ahead Bibliography
156 156 166 185 193 198 198 206 221 232 232 248 260 260 267 283 288 288
296
299 304 312
2
C
H
A
P
T
E
R
HEADING TOWARDS AN ENVIRONMENTALLY SUSTAINABLE WORLD Case Study 2.1 Project Foot Print HDFC Bank Limited
1. ORGANISATION PROFILE HDFC Bank was among the first financial institutions in India to receive an “in principle” approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. This was done as part of RBI’s policy for liberalization of the Indian banking industry in 1994. HDFC Bank was incorporated in August 1994 in the name of HDFC Bank Limited, with its registered office in Mumbai, India. The bank commenced operations as a Scheduled Commercial Bank in January 1995. As of March 31, 2022, the Bank had a nationwide distribution network of 6,342 branches and 18,130 ATM’s in 3,188 cities/towns. Parivartan, HDFC Bank’s social initiative has been a catalyst in transforming the lives of millions of people in India. It aims to contribute towards the economic and social development of the country by sustainably empowering its communities. Its wide range of interventions spanning across different social causes, has brought about the desired change in the remotest parts of the country. Parivartan has uplifted rural lives, brought water to the desert, rev9
10
HEADING TOWARDS AN ENVIRONMENTALLY SUSTAINABLE WORLD
olutionized education, supported social start-ups, opened pathways towards financial independence through sustainable livelihood initiatives. With a lot already done, the bank continues to bring about the change keeping with its philosophy of Sustainability and Innovation. Under Parivartan, HDFC work in the following focus areas: 1. Holistic Rural Development Program (HRDP) 2. Promotion of Education 3. Skill Training & Livelihood Enhancement 4. Healthcare and Hygiene 5. Financial Literacy and Inclusion
2. PROJECT OVERVIEW (a) Name of the project:
3URMHFW )RRW 3ULQW ² &OLPDWH $FWLRQ (PLVVLRQ 5HGXFWLRQ 9HULÀFDWLRQ (b) Geographical Location: The project focuses interventions in 30 villages in 03 states of India i.e. Uttarakhand, Odisha, and Assam. (c) CSR Fund utilized: The project has a budget of Rs.9.82 Crores over 3 years. (d) Implementation Process:
7KH 3URMHFW )RRW 3ULQW ² &OLPDWH $FWLRQ (PLVVLRQ 5HGXFWLRQ 9HULÀFD tion aims to improve quality of life in rural areas through introducing climate friendly interventions. The various climate friendly intervention options being initiated under the project by providing (i) Improved Cook Stoves (ICS) KDYLQJ KLJKHU HQHUJ\ HIÀFLHQF\ (ii) Biogas units (Deenabandhu Model) that replace fuel wood and reduce GHG emissions contributing to climate change (iii) Community Based Solar Powered :DWHU 7DQN :DWHU SXULÀHUV HWF The program initiated with a baseline survey to help determine the typical baseline fuel consumption patterns in the population targeted prior to adoption of the project technology. Further, WKH KRXVHKROGV KDYLQJ VXIÀFLHQW H[isting resources such as cattle and space
HEADING TOWARDS AN ENVIRONMENTALLY SUSTAINABLE WORLD
11
to build biogas have been mapped as well to identify households targeted for biogas intervention, while those not having enough space and/or cattle are being provided with Improved Cook Stove (ICS). Through this project, consumption of non-renewable fuel wood is being reduced through ICS or biogas. Beside, the clean-energy interventions, the facility of solar SRZHUHG GULQNLQJ ZDWHU DQG ZDWHU SXULÀHUV DUH DOVR EHLQJ FUHDWHG ZKLFK additionally boost up the health indicator in the project area. This is an innovative project that endeavours to address various issues in upgrading the quality of life in rural areas while also offsetting carbon emissions by integrating developmental activities with carbon emission reduction. The activities that are promoted under this project will not only add value to the lives of the rural poor households but will also help in stabilizing the concentration of GHGs in the atmosphere.
9DULRXV 6WHSV DUH LQYROYHG LQ ,PSDFW $VVHVVPHQW &HUWLÀFDWLRQ DQG &DUERQ Credits generation which include: (i) Gold Standard Project and Activity Documentation for Registration, (ii) Project Validation which involves preliminary review and third-party assessment, (iii) Project design review and certiÀFDWLRQ (iv 3URMHFW YHULÀFDWLRQ DQG LVVXDQFH RI FHUWLÀHG SURGXFWV DQG FUHGLWing The project interventions would generate substantial carbon credits as WKH SURMHFW LV UHJLVWHUHG ZLWK *ROG 6WDQGDUG *6 IRU YHULÀHG FDUERQ HPLVVLRQ UHGXFWLRQV 7KH *ROG 6WDQGDUG *6 LV DQ LQGHSHQGHQW FHUWLÀFDWLRQ standard for carbon credits generated from Clean Development Mechanism (CDM) projects or Voluntary Emissions Reduction (VER) projects. 7KH VXVWDLQDELOLW\ RI WKLV SURMHFW LV LQKHUHQW LQ WKH PRQHWDU\ EHQHÀWV WKDW the community would gain through carbon crediting. Farmers would feel motivated to upkeep the interventions undertaken under the projects for longer run when they are provided with the monetory gains of the interventions made. This will also promote behavioural change among the rural community towards the use of clean and renewable energy viz. solar powered drinking water, solar streetlights, solar domestic lights, biogas plants and smokeless stoves. To complement and substantiate the project while also promoting the XVDJH RI VXFK UHQHZDEOH VRXUFHV RI HQHUJ\ DQ DVVHVVPHQW RQ WKH H[LVWLQJ structures in the other locations of the 3 states is also being done.
12
HEADING TOWARDS AN ENVIRONMENTALLY SUSTAINABLE WORLD
(e) Monitoring and Evaluation Process: Digital monitoring solutions have been adopted for the project, wherein HDFK LQGLYLGXDO ELRJDV XQLW LV JHR WDJJHG DQG D XQLTXH XQLW LGHQWLÀFDWLRQ number attested every unit. Real Time updates are made available and progress of all units installed is maintained. Various steps undertaken for Monitoring & Evaluation are: (a) ,Q WKH ÀUVW VWDJH (QG 8VHU $JUHHPHQW LV FUHDWHG LQ ZKLFK WKH GDWH of dissemination/biogas operation, the name of the user, Village, Taluka, District where the user is residing are noted, to irrefutably identify the user. (b) (DFK %LRJDV 8QLW KDV DQ LGHQWLÀFDWLRQ QXPEHU ZKLFK LV DOVR QRWHG in the End User Agreement. The information from the End User Agreement is also recorded in the monitoring database designed for monitoring of the project activity. This is maintained by the implementing NGO, SUVIDHA throughout the crediting period. (c) Continuous monitoring is being done to check for operation of the ELRJDV XQLWV E\ YLOODJH OHYHO YROXQWHHUV DQG ÀHOG ZRUNHUV $V VRRQ as a biogas unit is under repair and not used, it will be reported and entered in to the monitoring solution. (d) In case of any issues with functionality, the reporting is primarily done by the End Users/ Village Volunteers. A toll-free number is also maintained where the end users can directly connect. The same LV HQWHUHG LQ WKH PRQLWRULQJ VROXWLRQ DQG D ÀHOG ZRUNHU LV DVVLJQHG to assess and resolve the issue. The biogas units are repaired or replaced as needed. (e) The days lost in repair or replacement are recorded in the monitoring solution for each and every household.
Monitoring parameters 1. Biogas Units Constructed 2. Number of biogas plants operating 3. Non-usage of biogas plants 4. Time taken in resolution of issues of biogas &RQÀUPDWLRQ WKDW QRQ UHQHZDEOH ELRPDVV KDV EHHQ VXEVWLWXWHG Besides, daily field visits by field workers and village level volunteers, monthly meeting of end users and annual survey and data analysis are conducted.
HEADING TOWARDS AN ENVIRONMENTALLY SUSTAINABLE WORLD
13
Source of Data & Responsibility
The database entries are made by the village volunteers. These entries are supervised by the project Coordinator.
The database records and copies of the End User Agreement are maintained by the implementing agency
The project Coordinator checks on the End User Agreements. In case of inconsistencies, appropriate corrective actions are undertaken.
Further, the project is being substantiated with an ongoing assessment for carbon IRRWSULQW UHGXFWLRQ IRU WKH H[LVWLQJ VXFK LQIUDVWUXFWXUH LQ WKH VWDWH EXW GLIIHUHQW geographies within those States that complements the initiative as well.
3. KEY CHALLENGES ADDRESSED The Project has the potential to address various issues to upgrade the quality of life in rural areas in Uttarakhand, Odisha and Assam while offsetting carbon emissions. In rural India, over 77% of households relies heavily on traditional biomass-based fuel (Fuel wood, crop residues and animal dung) for meeting the energy needs, while 20% household in urban areas still use firewood. The smoke from burning such fuels cause alarming household pollution and adversely affects the health of women & children causing several respiratory diseases/disorders. More than 100000 people die prematurely in India from diseases caused by inhaling smoke from fuel wood and other biomass used for cooking. The unsustainable harvest of fuel wood is major driver of forest degradation, adversely impacting more than 30 million hectares of forests. The project introduces various measures to reduce carbon emission through specific intervention and improves the quality of life through drudgery reductions, smoke free and healthy environment at house hold level in rural India.
4. IMPACT CREATED Currently, the project is in its implementation stage of promoting biomass and biogas digester units and impact is projected largely below:
Environmental Impact: The project endeavours to improve the local environment by reducing uncontrolled deforestation in the project area. It avoids
14
HEADING TOWARDS AN ENVIRONMENTALLY SUSTAINABLE WORLD
local environmental pollution while also providing high quality manure to the end-users as the by-product or residue of biogas units installed. It promotes carbon offsetting by switching from non-renewable biomass to renewable energy, leading to reduction of GHG emissions. Social benefits of Project: As the project is with the rural community, it will reduce the drudgery of women who spend long hours and travel long distances to collect fuel wood and water. It will also reduce indoor air pollution, thus eliminating the health hazards like cough and eye diseases for women and children while ensuring clean energy supply. Economic benefits: +LJKHU SURGXFWLYLW\ RI IDPLO\ PHPEHUV LV H[SHFWHG DV they have adequate cooking fuel supply. The project will provide employment to local communities through construction and maintenance of biogas units. The project also helps reduce cooking time, thus providing women to take up income generating activities. The impact and outcomes of this project will be substantial as it will be generating substantial carbon credits as the project is registered with Gold Standard for verified carbon emission reductions.
5. WAY FORWARD The sustainability of this programme is inherent in the monetory benefits that the community would gain through carbon crediting as being registered with Gold Standard VER. Farmers involved will be motivated to upkeep the interventions made under the project for longer run when they are provided with the monetory gains of the interventions made while it will also promote such sources of energy in the community. This will inculcate a behavioural change among the rural community towards the use of clean and renewable energy viz. solar powered drinking water, solar streetlights, solar domestic lights, biogas plants and smokeless stoves. 7KH SURMHFW LV EHLQJ FRPSOHPHQWHG ZLWK DVVHVVPHQWV RI H[LVWLQJ DFWLYLWLHV LQ WKH states promoted in different locations from other projects to substantiate the outcomes and impact of such activities. The project can be scaled up to multiple VWDWHV JHRJUDSKLHV ZLWKRXW DQ\ DGGLWLRQDO H[SHQVHV RQFH UHJLVWHUHG ZLWK *ROG Standard. In this project we have registered one national level PoA (Programme of Activity). Under this national level PoA, 3 VPAs (Voluntary Programme of Activity) have been registered each in Odisha, Assam, and Uttarakhand. PoA registration is a one-time activity and there would be no additional fee charges for registering additional VPAs across the country under this PoA. Hence, the project can be scaled up to different states/geographies without any additional fee charges once registered with Gold Standard.
Benchmarking ESG & CSR: A Compendium of Best Practices in ESG & CSR in India AUTHOR PUBLISHER DATE OF PUBLICATION EDITION ISBN NO NO. OF PAGES BINDING TYPE
: : : : : : :
Garima Dadhich, Ravi Raj Atrey TAXMANN June 2022 2022 9789356222618 330 PAPERBACK
Rs. : 695 | USD : 40
Description This book is a compilation of case studies on best practices of Environmental, Social and Governance (ESG) & Corporate Social Responsibility (CSR) initiatives taken by Companies in India. It provides an opportunity for the readers to learn from the ESG & CSR practices of companies of different sizes, nature, and sectors. Its two-dimensional nature caters to the concepts of Sustainability and CSR together while distinguishing their essence as per Indian requirements. This book will be helpful for Sustainability/ESG/CSR/other allied sector professionals, researchers, students, company boards, etc.
ORDER NOW