Sustainability: A win-win strategy for Indian manufacturing

  • Articles
  • Mar 01,19
Emissions of Carbon Dioxide and other greenhouse gases caused by activities performed by human beings are responsible for increased climate change and global warming.
Sustainability: A win-win strategy for Indian manufacturing

Emissions of Carbon Dioxide and other greenhouse gases caused by activities performed by human beings are responsible for increased climate change and global warming. These emissions are also increasing due to our lifestyle and our economic systems. And yet, the global ‘climate budget’ is limited, explains Bappa Bandyopadhyay.
 
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Bappa Bandyopadhyay is the Business Director of Operations and Projects at Henkel Adhesives. joined Henkel in 2013 in his current role and in addition to being responsible for the 9 adhesives manufacturing sites across India, has led the development of the green field adhesives manufacturing site from scratch. He is currently in the Board of Directors of Henkel Adhesive Technologies India Private Limited and Henkel Anand India Private Limited. Bappa holds a Bachelor’s degree in electrical engineering and an MBA from universities in India.
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The UN’s global Paris agreement on climate change represents a commitment by the community of nations to limit global warming to significantly less than 2oC. To achieve this, carbon dioxide emissions must be reduced by 80 to 90 per cent between now and 2050.
India is committed to the two-degree target. Three main levers are available to stop global emissions from increasing further, and to ensure emissions are reduced by the required amount, namely increasing efficiency by saving energy and raw materials, decarbonising by replacing carbon dioxide in energy and raw materials, and using CO2 as a resource by converting it into raw materials. Considering the need to reduce emissions and decarbonise the economy, companies need to become climate positive in their operations and drive significant progress in other relevant areas of our value chain.
 
We are clearly living beyond our means. A recent study released by the Cambridge University reveals that the biocapacity consumed by humanity has gone from 74 per cent in 1961 to over 170 per cent in 2018 – this huge increase in our footprint in a little over 50 years! Ever since the 1980s, environmentalists across the world have raised a rallying cry for sustainability. It started with Reduce, Reduce, Reduce. The 1990s was all about Recycle and Reuse, and the 2000s have seen the addition of 3 more ‘R’s – Recover, Redesign and Remanufacture. This approach is critical, as technology is evolving at a breakneck speed and devices that were relevant just a decade ago are today no more relevant. For example, the slim and compact camera, which was in demand just a few years ago has been replaced by a multifunctional mobile phone. Now just imagine all those unwanted cameras ending up as scrap/waste. This makes one wonder, if there is a better way to handle redundancies, while keeping pace with technological advancements.
 
Sustainability as a business sense is critical, as it creates process efficiencies that utilise raw materials more efficiently to save cost as well as reduce the impact on the environment. Sustainability covers a whole host of activities right from sourcing raw materials to energy and climate, sustainable workforce with quality education, safety, health and environmental protection (SHE) to product safety, transport and logistics.
 
Conversion to green power
While converting to green power, it is important to consider the country’s legislation and infrastructure. Considering this, a combination of the following three models could be adopted to convert to green power. On-site production of green power, for example through solar panels installed on roofs, can be undertaken by plants themselves or in collaboration with external partners through long-term Power Purchase Agreements (PPAs). Direct purchase model involves purchasing green power either straight from the grid of a local energy utility company or within the framework of a long-term PPA. If the two options mentioned above cannot be implemented at the manufacturing site, meaning that one cannot purchase the electricity directly, the green power requirements can be procured virtually. This can be done by entering into long-term PPAs that feed green power from specific plants into the supply grid – in an amount that is equal to the amount we consume. If this is not possible, one could purchase the appropriate green power certificates.
 
Companies which generate their own energy could aim to replace fossil fuels with climate-neutral alternatives, such as biomass and in doing so, companies can endeavour to be 100 per cent carbon neutral in their operations.
 
Carbon dioxide emissions during product use
The product use phase, generally, has the greatest impact on carbon footprint. For this reason, companies should offer its expertise to help our customers and consumers save CO2. For products whose applications are directly linked to the use of energy, companies can contribute toward reducing energy usage and the associated carbon footprint through innovations that enable the efficient use of energy. At the same time, they can develop specific communication campaigns to encourage responsible behaviour during product usage.
 
Companies should offer products that make a relevant contribution towards avoiding energy consumption and CO2 emissions. For example, building lighter vehicles or offering products in smaller pack sizes. Such ‘use as per need’ pack size enables ease of use and reduces waste. 
 
Carbon dioxide emissions from raw materials
The raw materials that an organisation purchases have a decisive impact on the carbon footprint along its value chain, which is why it should ensure that its suppliers and contract partners set efficiency targets that are as ambitious as its own. Organisations should work with its partners to develop innovative raw materials/solutions.  It should discuss ambitious targets for reducing the carbon footprint of its raw materials portfolio with its suppliers. In order to reduce emissions, it could study its raw materials portfolio to see where it can replace carbon-intensive raw materials with low carbon alternatives.
 
Organisations could also partner with government bodies or other organisations in some form or the other to develop technologies that enable the use of carbon dioxide for positive outcomes. A case in point is the power in power-to-X, which is green power that is generated through water electrolysis and stored as hydrogen. ‘X’ represents the numerous valuable raw materials into which this hydrogen can be converted in conjunction with CO2 – for example, gas fuels, synthetic fuels or chemical raw materials, such as surfactants or plastics. These raw materials are climate-neutral if made from carbon dioxide taken from industrial processes. They are climate-positive if carbon dioxide from the atmosphere is used as the resource. Some entities are working towards using power from renewable energy sources, this technology makes it possible to blend CO2 with other chemical elements and convert the energy it contains. If used on a wider scale, the technology can help to significantly cut CO2 emissions in the atmosphere, reducing the carbon footprint of our value chain in the future. Over the long term, it could even make it possible to extract more CO2 from the atmosphere than is emitted into it, making a positive overall impact on the climate.
 
Product innovations
An organisation’s products should help to decouple quality of life from resource use by offering customers and consumers more value and better performance at a smaller environmental footprint. They should focus on innovations that help its customers and consumers reduce their energy usage and thus their carbon footprint, and developing new products that use fewer resources. It should also help in improving the overall sustainability profile of products and examining whether it can spotlight certain product features – compatibility, packaging solution or environmental – for each product category and market.
 
Today, researchers and inventors are being encouraged to think of a product lifecycle as one not from cradle to grave but from cradle to cradle. There is a need to make products eternally reusable. It may not be possible in the case of every product currently. However, we should keep looking for solutions to address this issue. Sustainability needs a conscious endeavour to innovate and develop alternatives. The criticality and importance to a country like India cannot be overstated. India is today competing for a piece of the global manufacturing pie. Initiatives like Make in India bring with it a whole host of business opportunities to service the 7.6 billion strong global population. However, we need to take care that these are manufactured using environmentally responsible business practices.

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