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The Indian business community, in common with the
rest of world, is increasingly aware of the power of environmental,
social and governance (ESG) issues to create or destroy shareholder
value in companies across a wide range of industries and markets.
This same understanding underpins the move by portfolio investors
worldwide to incorporate ESG-related risks and opportunities into
their investment decisions and ownership practices. Sustainable
investment now accounts for around US$3.7 trillion of global assets
under management. ESG investment practices are rapidly becoming
mainstream and this figure is therefore likely to continue to grow
significantly.
India’s remarkable economic success story goes
hand-in-hand with serious sustainable development challenges. Inadequate
infrastructure is now one of the main obstacles to continued growth.
Water scarcity is leading to hardship and conflict. Energy is in
short supply. India’s reliance on fossil fuels and rapid industrialisation
mean that its emissions of greenhouse gases are rising swiftly.
Climate change could cause major changes to monsoon conditions and
lead to other severe impacts. In rural India, poverty remains a
major problem. In the congested cities, skilled human capital is
in short supply in key growth industries.
Details
As part of the European Union funded Asia Urbs
programme, TERI-Europe was engaged in a project aimed at improving
urban environment through the introduction of sustainability measures
in building design. The project was jointly implemented by RENUE
(Renewable Energy for the Urban Environment) in the UK, ICAEN (Institut
Catalana d’ Energia) in Barcelona, Spain, TERI, Delhi, India,
and the Haryana Energy Development Agency, India. The project aimed
at exchanging advice and good practices between the EU (European
Union) and India to assist the local authority in Gurgaon to formulate
urban development strategies and develop sustainable building design
plans.
Project
website
TERI-Europe assisted the London Borough of Merton
in organizing a major seminar on energy efficiency and in incorporating
renewable energy technologies in building design. The seminar was
part of the activities of the Asia Urbs project on building design.
TERI-Europe has completed a study sponsored by
the Foreign and Commonwealth Office of the UK, which seeks to cast
commercially viable renewable energy projects as potential CDM (clean
development mechanism) projects. TERI-Europe worked with five proponents
of different types of renewable energy technologies to assist in
the calculation of baselines and transaction costs. As part of this
activity, a set of guidelines for developing CDM projects in the
renewable energy sector has been elaborated. Additional information
on potential partners in India and the UK, interested in developing
CDM projects in India, has also been provided.
TERI-Europe completed a comprehensive review of environmental and
social requirements faced by textile and clothing exporters, exporting
to the EU. This information has been compiled in a CD Rom, which
contains a database on environmental and social requirements for
the textile and clothing sector and provides exporters with a ready
tool to access information on technologies, retail sources, and
trade links.
As part of the same programme, sponsored jointly by the EU and the
Commonwealth Science Council, pilot demonstrations on management
of supply chains, as well as adherence to environmental, social,
and trade regulations were conducted in two factories each in Bangladesh,
India, and Sri Lanka.
The results of the above activities were used as a basis for elaborating
a strategy for sustainable trade in the textile and clothing sector.
TERI-Europe has completed a major exercise (sponsored by
DfiD) to document corporate responsibility practices in Bangladesh,
India, and Sri Lanka with a view to developing training modules
for companies and academic institutes on environmentally and socially
responsible business practices.
As part of this programme, a poll conducted by TERI-Europe has revealed
a compelling agenda for corporations in India to demonstrate their
social responsibilities. The poll of over 1200 individuals in Chennai,
Kolkata, Mumbai, New Delhi, and Tiruppur surveyed the perceptions
and expectations of workers, company executives, and the general
public towards business in India. This poll was the first of its
kind to include workers in a survey of corporate responsibility,
thereby giving a unique balance to the results.
Five major findings emerged from the survey.
The IT sector is regarded as the most responsible, and the alcohol
and the tobacco industries as the least responsible.
Public expectations
of corporations in social and environmental matters are high and
rising.
More trust
is placed in the media and NGOs than in business or trade unions,
and global companies operating in India are rated low in terms
of their trustworthiness.
Gender discrimination
is a real issue in the workplace.
Workers and
management have sharply diverging perceptions of labour conditions.
The results of the poll are presented in a report
Altered Images: understanding
and encouraging corporate responsibility in India.
Following on from previous year’s activities, TERI-Europe
published two additional reports on corporate responsibility practices
in Bangladesh and Sri Lanka (Altered Images—updates
2 and 3).
This was part of a major exercise (sponsored by DfiD, UK) to document
corporate responsibility practices in Bangladesh, India, and Sri
Lanka with a view to developing training modules for companies and
academic institutes on environmentally and socially responsible
business practices.
Partnership with Unilever on developing a corporate management programme
on HIV/AIDS in India.
Training for
MNCs and Indian companies on sustainability reporting.
TERI-Europe
is a faculty member of SustainAbility, UK, advising on corporate
responsibility issues relevant to India.
The aims of this programme are listed below
Provide Indian
exporters/producers with detailed information on sustainability
requirements (regulatory and voluntary) in the EU countries and
analyse the impacts of these for Indian producers.
Sensitize European
buyers about the capabilities of Indian suppliers. Provide technical
support to meet environmental requirements.
The programme
is being developed in partnership with the recently established
Sustainable Trade and Innovation Centre located in Geneva and the
European Partners for the Environment, Brussels.
As part of its efforts to make international trade more sustainable,
TERI-Europe has been engaged in a major international effort on
the promotion of sustainable trade and innovation. While continuing
its work with the textile and garment sector to elaborate a sustainable
trade strategy, TERI-Europe, together with the Centre for Sustainable
Design in the UK, has launched a new initiative to assist the electronics
industry, including component suppliers from Asia, to meet the forthcoming
EU legislations relating to environmental requirements in the electronics
industry. The specific objectives of the project are as follows.
To provide the right type of information to Asian suppliers with
respect to the implications of the EU directives relating to the
electronics and electronic components sectors ( e.g. WEEE, RoHS,
EuP, IPP), and other directives due to come into force after 2005.
This will be done through a series of working conferences in China,
India, Thailand, and Europe.
To undertake
a gap and needs analysis for the electronics industry in China,
India, and Thailand and elaborate a capacity-building plan for
these countries, keeping in mind the forthcoming EU legislation
and other environmental requirements to be met by the sector.
The gap and needs analysis will pay special attention to the needs
of smaller suppliers who risk being marginalized due to rationalization
of supply chains, and, therefore, being deprived of a livelihood.
To develop
a set of training tools elaborated on the basis of the capacity-building
plans, needs assessments, and the outcome of the working conferences
in Asia and the UK. The training tools will be designed to include
elements that will require close technological cooperation between
the Asian and European partners in future.
To facilitate
interaction and dialogue between the Asian and European stakeholders
(who will include the standard setters as well as major electronic
buyers and MNCs) in the electronics industry.
To create
a system for managing and disseminating information to Asian suppliers,
which can be sustained after the project ends.
The project, funded under the Asia Pro Eco programme
of the EU, has been selected by the EU as ‘model’ project
rated highly by the EU’s Directorate General of Environment.
TERI-Europe hosted an event on INSTEP (Integrating
New and Sustainable Technologies for Elimination of Poverty) in
March 2005, in collaboration with the India Environment Trust, London.
Dr R K Pachauri, Director-General, TERI and Dr Leena Srivastava,
Executive Director, TERI presented TERI's INSTEP programme to an
audience of NRIs and British persons with an interest in development
and poverty reduction.
Instep
fund website
A study investigating the exposure and potential
of the Indian insurance industry to cover risks related to climate
change is presently being undertaken in collaboration with the Insurance
Regulation and Development Agency, India, and the Association of
British Insurers. The project is funded by the DEFRA (Department
for Environment, Food and Rural Affairs), UK. Links have been established
with the German re-insurers Munich Re, and TERI-Europe has joined
a major international initiative, the MCII (Munich Climate and Insurance
Initiative), to encourage the insurance sector to play a more active
role in adaptation measures.
New Economics Foundation, London, UK
RENUE, London,
UK
Merton Council,
Environment Division, London, UK
The Centre,
Brussels, Belgium
Instituto Catalán
de la Energía (ICAEN), Barcelona, Spain
Oxford Brookes
University, UK
Centre for Clean
Air Policy, Washington DC, USA
Centre for Sustainable
Design, Farnham, Surrey, UK
New Academy
for Business, Bath, UK
Centre for Policy
Dialogue - BANGLADESH
Sage Training
- Sri Lanka
SustainAbility,
London, UK
International
Institute for Environment and Development, London, UK
World Business
Council for Sustainable Development, Geneva, Switzerland
European Partners
for the Environment, Brussels, Belgium
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