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Transcript of Green Consumers
A MINOR PROJECT REPORT
ON
GREEN CONSUMERS
“Submitted in the Partial Fulfillment for the Requirement of
Bachelor’s of Business Administration”
BBA III (E)(B)
BATCH -2010-2013
Submitted to: Submitted by:
Dr. J.K.Batra Name: Arman Taneja
Project Guide Roll No.09924501710
Batch: - 2010-2013
Jagannath International Management School
Kalkaji, New Delhi
ACKNOWLEDGEMENT
I would like to take an opportunity to thank all the people who helped me in
collecting necessary information and making of the report. I am grateful to all
of them for their time, energy and wisdom.
Getting a project ready requires the work and effort of many people. I would
like all those who have contributed in completing this project. First of all, I
would like to send my sincere thanks to DR. J.K.BATRA for his helpful hand
in the completion of my project.
NAME:ARMAN TANEJA
DATE: 11/10/2011
ii
EXECUTIVE SUMMARY
Environmental Management is not, as the phrase suggests, the management
of the environment as such but rather the management of the humankind's
interaction with and impact upon the environment. The need for environmental
management can be viewed from a variety of perspectives. A more common
philosophy and impetus behind environmental management is the concept of
carrying capacity. Simply put, carrying capacity refers to the maximum
number of organisms a particular resource can sustain. The concept of
carrying capacity, whilst understood by many cultures over history, has its
roots in Malthusian theory. A common example of the consequences of
exceeding the carrying capacity of an area is the starvation and eventual
cannibalism of tribes on the Easter Islands after the depletion of the island's
resources. Environmental management is therefore not the conservation of
the environment solely for the environment's sake, but rather the conservation
of the environment for humankind's sake. This element of sustainable
exploitation, getting the most out of natural assets, is visible in the French
approach to water resources.
Environmental management involves the management of all components of
the bio-physical environment, both living (biotic) and non-living (abiotic). This
is due to the interconnected and network of relationships amongst all living
species and their habitats. The environment also involves the relationships of
the human environment, such as the social, cultural and economic
environment with the bio-physical environment.
As with all management functions, effective management tools, standards and
systems are required. An environmental management standard or system or
protocol attempts to reduce environmental impact as measured by some
objective criteria. The ISO 14001 standard is the most widely used standard
for environmental risk management and is closely aligned to the European
Eco Management & Audit Scheme (EMAS). As a common auditing standard,
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the ISO 19011 standard explains how to combine this with quality
management. The UK has developed a phased standard (BS8555) that can
help smaller companies move to ISO 14001 in six manageable steps.
Other environmental management systems tend to be based on this standard
and to extend it in various ways:
* The Natural Step focuses on basic sustainability criteria and helps focus
engineering on reducing use of materials or energy use that is unsustainable
in the long term
* Natural Capitalism advises using accounting reform and a general
biomimicry and industrial ecology approach to do the same thing
* US Environmental Protection Agency has many further terms and standards
that it defines as appropriate to large-scale EMS
* The UN and World Bank has encouraged adopting a "natural capital"
measurement and management framework.
* The European Union Eco-Management and Audit Scheme (EMAS)
Other strategies exist that rely on making simple distinctions rather than
building top-down management "systems" using performance audits and full
cost accounting. For instance, Ecological Intelligent Design divides products
into consumables, service products or durables and unsaleables - toxic
products that no one should buy, or in many cases, do not realize they are
buying. By eliminating the unsaleables from the comprehensive outcome of
any purchase, better environmental management is achieved without
"systems"
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TABLE OF CONTENTS
Description Page No.
Acknowledgement (i) (i)
Contents with page no.
Executive Summary
Certificate of completion
Introduction to topic 1
Objectives
Literature review
Research Methodology
Analysis & Interpretation
Findings & Inferences
LIMITATIONs
Recommendations and Conclusion
Bibliography
v
1
INTRODUCTION TO TOPIC
THINK GREEN
At Waste Management, green is more than just the color of their trucks and
containers. It is a daily reminder to their over 50,000 employees across North
America of the important role each of them play as stewards of the
environment. Waste Management has a deep commitment to making a
difference for the environment, for communities and for people.To them, to
Think Green® means embracing the tremendous responsibility they have, as
leaders in their industry, to use their strength, talents, resources and
technologies to better the communities they serve.
As the leading provider of comprehensive waste management, recycling and
environmental services in North America, Waste Management serves
municipal, commercial, industrial and residential customers throughout the
United States, Canada and Puerto Rico. Waste Management serves more
than 20 million residential and commercial customers though its network of
collection operations, transfer stations, landfill disposal sites, waste-to-energy
plants, recycling facilities, and other related services.
In one of their Think Green® TV commercials they ask the question, "Who
would ever think that the waste they generate could generate enough green
energy to power an entire community?" The answer is, "They would."
Waste Management is actively committed to the development of green energy
projects - whether it's collecting and processing the methane gas that is
naturally produced in landfills, using solid waste to generate clean power or
powering a fleet with clean-burning alternative fuel. In one of our Think
Green® TV commercials we ask the question, "Who would ever think that the
Converting waste to energy.
Another way that they are helping to conserve fossil fuels is by converting
municipal solid waste into energy. Waste Management’s subsidiary,
Wheelabrator Technologies Inc., uses trash as fuel to generate electrical
power through its 17 waste-to-energy plants, which has the capacity to
process up to 24,000 tons of waste per day. Converting trash to energy
substantially reduces the volume of the waste disposed of in landfills and
provides a viable and economical alternative to the use of fossil fuels.
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A leading waste-to-energy provider in the United States, Wheelabrator helped
pioneer the process of converting waste into energy more than 30 years ago.
Since then, the company has processed more than 118 million tons of
municipal solid waste into energy, saving more than 120 million barrels of oil
while generating 65 billion kilowatt hours of clean, renewable electricity.
In a letter to the industry, the EPA has stated that waste-to-energy plants, like
those operated by Wheelabrator, produce electricity “with less enviromental
impact than almost any other source of electricity.” And studies conducted in
conjunction with the EPA have demonstrated that waste-to-energy plants
prevent the release of millions of tons of greenhouse gases.
Together, Waste Management’s landfill gas projects and waste-to-energy
projects produce enough electricity to power more than 800,000 homes,
saving the equivalent of about 8.2 million barrels of oil per year.
The opportunity to lead the way. Reduce, reuse, recycle. Through their
subsidiary, WM Recycle America (WMRA), they provide recycling programs
that are cost-effective and environmentally sound for cities, businesses and
households. Waste Management is the largest provider of recycling services
in North America, processing 5.8 million tons of commodities in 2005.
As North America’s largest recycler, they processed 5.8 million tons of
commodities in 2005, saving more than 41 million trees and enough energy to
power about 848,000 households.
They continue their role as an industry leader, offering communities and
businesses more effective and affordable recycling options as well as
providing manufacturers and end users with the secure, consistent stream of
high-quality raw materials they need to maintain operational efficiency. As the
nation’s largest collector of recyclables from businesses and households, they
are taking the reduce-reuse-recycle concept into every venue. In residential
areas, they are creating sustainable recycling programs through working
partnerships with local communities and municipalities. As a leading marketer
of post-consumer and post-industrial commodities, they are providing fiber,
nonfiber, scrap metal, textiles, rubber, electronic scrap and plastics to end-
users of recycled materials worldwide.
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It’s one thing to say they support recycling. It’s quite another to step up to the
challenge of making it work. They are working to make it easier for people to
recycle. They are dedicated to making it more cost-efficient for businesses
and industries. And they creating a sustainable model for the future growth of
recycling programs.
BASICS OF ENVIRONMENT
The dictionary meaning of the term environment is ‘surroundings’ - the region
surrounding or circumstances in which anything exists, everything external to
the organisms. Environment therefore, refers to the sum of total conditions
that surround man at a given point in space and time.
The term environment was introduced in Ecology by biologist Jacob Van
Uerkul (1864-1944) to denote these aspects of the world surroundings, with
reference to organisms. The field of environment involves an understanding of
the scientific principles, economic influences and political actions attending
these aspects.
TYPES OF ENVIRONMENT
The environmental can be divided into physical biological and cultural
environment. On the basis of the structure the environment may be divided
into fundamental types –
The Abiotic or Physical environment consisting of air, water and
soil/sediment.
The Biotic or Biological environment consisting of flora, fauna and
micro-organism
l Environment is further subdivided into three broad categories:
A Lithosphere (sphere of rock /soil/sediment)
B Hydrosphere (sphere of water)
C Atmosphere (sphere of gas)
The biotic components of the environment consist of plant(flora),
animal(fauna), including man as an important component and micro-
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organism. Thus, the biological/biotic environment can be further subdivided
into:
A Flora / Plant Environment
B Fauna /Animal Environment
C Microbial Environment
ELEMENTS OF THE ENVIRONMENT
A. Biotic Components:
The Abiotic components comprise the inorganic substances (carbon, nitrogen,
hydrogen, sulphur, phosphorus, etc), and come mainly from the lithosphere,
atmosphere and hydrosphere.
Lithosphere :
The oceanic and the continental crust and the rigid upper portion of the
mantle of the earth constitute the lithosphere. The economically useful
elements (minerals ,metals, rock, fossil fuels), essential for man are basically
from the lithosphere. The lithosphere occupies 30% of the total Earth’s
surface. Land formations like the mountains plateau and plain supply habitat
for plants and animals. The type of the economy depends upon the
topography of the area. Plains are suitable for agriculture and industrial
activity.
Atmosphere :
The multi-layered gaseous envelope surrounding the planet earth is
atmosphere. The atmosphere is a significant component of the natural
environment. All the necessary gasses (oxygen, nitrogen, hydrogen, carbon-
dioxide, and water vapour), sources for the sustenance of all the life forms in
the biosphere are components of atmosphere. The atmosphere filters the
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incoming ultra-violet (UV) radiation and protects the earth’s surface from
abnormal features such as cancer / mutation in organisms.
Hydrosphere:
This is the sphere of water consisting of surface, ground and ocean water.
Seventy-one % of the Earth’s surface is in water. Glaciers and ice caps cover
additional areas. Water plays an immense role in the sustainable environment
balance of the earth. Water is essential for the industry, transportation, power
generation, food production and processing, and the manufacturing sectors of
the modern world. Morever, 70% of the body of the organism is constituted by
water. The balance of water is maintained through circulation of water in the
biosphere is maintained through circulation of water among the atmosphere,
lithosphere and hydrosphere by characteristic path ways. The circulation
along the characteristic pathways is known as the hydrological cycle.
Biotic Component
Biotic or living components of the environment consist of flora (plant),
fauna (animal), and micro-organisms. The biotic components are the
drivers of the energy flow and the material cycles in the biosphere. On the
basis of the relationship among nutrients, the biota can be divided into two
groups – Autotrophic or self-nourishing components (e.g. all green plants)
and heterotrophic components (e.g. all animals).
Autotrophic components:
Green plants, algae and photosynthetic bacteria constitute the biotic
Autotrophic component of the ecosystems are able to fix light energy and
manufacture food from simple inorganic substances like water and carbon
dioxide by photosynthesis. This group of organisms is also known as
producers.
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Heterotrophic Components:
Fungi, non-photosynthetic bacteria and other organisms and animals are
the components of heterotrophic. Consumers are organism like
herbivores, carnivores, and omnivores in the order of occurrence in the
food chain. Herbivores feed on plants, carnivores feed on animal and
omnivores feed on both plants and animals. Herbivores are also called as
primary consumers and carnivores and omnivores are known as
secondary and tertiary consumers, respectively. Decomposers are also
known as sapotrophs and consist mainly bacteria and fungi. They break
down complex compounds of the dead organisms, absorb some of the
decomposed or breakdown products and release inorganic nutrients into
the environment, thus making them available again to the autotrophs.
RELATIONSHIP AT DIFFERENT LEVELS
The biotic component is the functional kingdom of nature, because it is
based on the type of nutrition and is the energy source of all biota of the
biosphere. The biotic components are arranged following a systematic
pattern where all organisms are connected step-wise to each other in the
ecosystem according to their food habits. The ‘steps’ or ‘levels’ of the
ecosystem are known as trophic levels. All trophic levels are closely
interrelated with each other from the view point of food transfer and
supplements to the biosphere, which is further connected with the
economic environment of humans. Relationship among the different levels
can be better understood by analysis of the functional aspects (material
cycle and energy flow) of the ecosystem.
THE CARBON CYCLE
The carbon cycle is one of the important cycles at the global levels.
Carbon moves in the biosphere through various pathways. Human
activities are making a significant impact on the global carbon cycle. The
burning of fossil fuel, agro-industrial activity, deforestation etc. are
7
increasing in the concentration in the atmosphere steadily. Flows between
the atmosphere and the oceans were balanced until the onset of the
industrial age.
The atmospheric CO2 enters the plants at the time of photosynthesis. This
is a process by which plants prepare their own food in the presence of
sunlight. The carbon from CO2 is retained inside the plant and the oxygen
is released into the environment. Animals eat plants and so the stored
carbon enters their bodies. This carbon is then released back into the
atmosphere by respiration.
Sometimes trees, plants and animals get buried in the earths crust, and
then due to immense pressure and heat this organic matter after
thousands of years gets turned into fossil fuels. These fossil fuels are
taken out of the ground by man and are burned, again releasing carbon
back into the atmosphere.
THE NITROGEN CYCLE
Nitrogen is the most abundant element in the atmosphere. It is a vital
element for all the living systems. It is the primary nutrient for all green
plants, but it must be modified before it can be utilized by most living
systems.
Four processes participate in the cycling of nitrogen through biosphere
Nitrogen Fixation
Ammonification
Nitrification
Denitrification
NITROGEN FIXATION
First step in the N Cycle ---is the conversion of nitrogen gas (N2) into NH3
or organic nitrogen. Three processes are responsible for the most of the
nitrogen fixation in the biosphere:
Atmospheric fixation by lighting
Industrial fixation by humans
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Biological fixation by certain microbes, alone or in a symbiotic
relationship with plants.
AMMONIFICATION
This is the biochemical process whereby nitrogen is released from
nitrogen containing organic compounds. Soil bacteria decompose organic
nitrogen forms in soil to the ammonium form. This process is referred to as
ammonification.
NITRIFICATION
Nitrification is the conversion of NH4 to NO3. This aerobic reaction is
carried out by Autotrophic bacteria.
DENITRIFICATION
This involves conversion ofNO3 to N2 gas in the presence of low oxygen
levels.
THE HYDROLOGICAL CYCLE:
Water is essential to life. Without it the biosphere that exists on the surface
of the earth would not be possible. Nicknamed the “water” planet, earth is
covered by one of our most precious resources. However almost 93% is
locked in the ocean, toxic to humans and many plants and animals. The
hydrologic cycle takes place in the hydrosphere, the region containing all
the water in the atmosphere and on the surface of the earth. The cycle is
the movement of the water through this hydrosphere. The components of
the hydro cycle are:
Condensation
Infiltration
Run – off
Evaporation
Precipitation
* This cycle should be explained in detail
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CLASSIFICATION OF ECOSYSTEM
Ecosystems are classified as
1. Natural ecosystem
2. Artificial (man-engineered) ecosystem
NATURAL ECOSYSTEMS
It operates by themselves under natural condition without any major
interference by man. On the basis of habitat, natural ecosystem are further
divided as terrestrial, as forest grassland, desert, etc.and aquatic. Aquatic
ecosystem are further distinguished as Freshwater that may be lotic
(running water as a spring, stream, river) or lentic (standing water as a
lake, pond, pool, puddle, ditch, swamp etc.) and marine, such deep as
bodies as an ocean and shallow ones as a sea, estuary etc.
ARTIFICIAL (MAN-ENGINEERED) ECOSYSTEMS
This is maintained by man, by addition of energy and planned
manipulation. For example croplands like wheat, rice fields etc. where man
tries to control the biotic community as well as the physical-chemical
environment, are artificial ecosystem.
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Ecosystems
Natural Man – made
Terrestrial Aquatic
Marine Freshwater
Lotic
Lentic
THE CONCEPT OF ECOBALANCE
Ecological balance is the state of dynamic equilibrium within a community
of organism. The ecological balance of an area can be evaluated
assessing the consumptions of energy and raw material, generation of
emission, waste and the cost.
There are areas of eco-imbalance all over the world and this need to be
addressed in a manner that mitigates the imbalances.
REASONS FOR ECOLOGICAL IMBALANCE
1) Lack of cooperation, more competition
There is lack of co-operation among the major nation, to help in resolution
of current environmental problems. The problems are not addressed in a
realistic way. Some of these nations, moreover, are the most offenders.
Instead of co-operation, competition in the present practice. As a result,
eco balance has been deteriorated drastically.
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2) Uncontrolled exploitation and utilization of resources
Uncontrolled exploitation of non-renewable resources and over- utilization
of resources for economic growth without considering ecological viability is
another important reason for eco-imbalance.
3) Environmental pollution
Inefficient or backdated technologies are creating havoc with the pollutants
leading to pollution loads in the atmosphere, lithosphere, hydrosphere and
biosphere. therefore, normal functioning of the atmosphere is disrupted
significantly, and causing global environmental problems like the green
house effect, ozone holes, acid rains, global warming, climate change etc.
4) Inappropriate management of waste
Wastes generated from industrial as well as agricultural activities are not
managed properly. A huge amount of solid and hazardous waste are
discarded or disposed to the environment without considering the health of
the ecosystem. Major creeks have been used for dumping of the waste
therefore causing imbalance in the oceanic environment.
5) Population explosion
Population growth is the mother of all environment degradation. Over-
populated areas are generally have the problem of deforestation,
destruction of biodiversity, lack of resources, regeneration, etc.
consequently, changes in the landscape. Ecological states and
environmental pollution takes place and at any cost ethics for business
come into play. Therefore, the ecological balance is again disrupted.
NEED FOR ENVIRONMENTAL STUDIES
The urgent need to protect the environment ,in order to maintain the
quality of life, has now been identified globally. Environmental protection
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starts by creating awareness among people that it becomes a part of their
style . the important features of the subject are:
a) It is very important for each individual for self-fulfillment and social
development. It helps in the maintenance of life and health, in self-
preservation, and in the preservation of the human race.
b) It helps to understand different food chains and the ecological
balance in nature.
c) It helps to understand and appreciates how the environment is used
for making a living and for promoting a material culture
d) It helps in appreciating and enjoying nature and society.
e) It is concerned with the changing the environment in a systematic
manner for the immediate as well as future welfare of mankind.
f) It directs attention toward problems of population explosion,
exhaustion of natural resources and pollution of the environment,
and throws light on the methods of solution.
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OBJECTIVES
To understand why it is so important for companies to Go Green
To study the depleting rate of finite natural resources and various
sources of emission of green house gases
To study corporate awareness, interest, and participation in
establishing standards and procedures for environmentally responsible
practices
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LITERATURE REVIEW
Definition
Green Consumers, also alternatively known as environmental marketing
and sustainable marketing, refers to
An organization’s efforts at designing, promoting, pricing
and distributing products that will not harm the environment.
All activities designed to generate and facilitate any exchanges
intended to satisfy human needs or wants, such that the satisfaction
of these needs and wants occurs, with minimal detrimental impact
on the natural environment.
Green Consumers must satisfy two objectives:
Improved environmental quality
Customer satisfaction
Green Code
Generalise with care. Consumer behavior will not necessarily be
consistent across different product types, and particular market segments
may respond to certain issues on the green agenda but not others.
Remember, the validity of a piece of market research is not related to the
degree to which it supports your preferred option.
Explore the context from which market research data comes. Be clear on
the nature of the sample used, the questions asked, the way in which
responses were recorded and the time and place from which the
responses come.
Ensure that where market research is crossing international borderlines,
that the terminology and interpretation remains consistent. Terms like
‘environment’, green’ and ‘conservation’ do not always translate precisely
between languages.
Neutrality is important. Ensure that when you pose questions to
consumers, that they can make any response without being made to feel
15
guilty or uncomfortable, and ensure that your own preconceptions about
the green agenda (such as an assumption that green products will cost
extra) are not encoded within the questions.
Why is Green Consumers Important?
Every recycled ton of paper saves approximately 17 trees, which are
then available for other uses. Recycling paper also reduces the air and
water pollution due to paper manufacturing.
The question of why Green Consumers has increased in importance is
quite simple and relies on the basic definition of Economics:
“Economics is the study of how people use their limited resources
to try to satisfy unlimited wants. “
There is growing interest among the consumers all over the world
regarding protection of environment.
It emerged as growing market for sustainable and socially
responsible products and services.
Looks at how marketing activities utilize these limited resources,
while satisfying consumers wants, both of individuals and industry,
as well as achieving the selling organization's objectives
Why Go Green?
External reasons
Satisfying consumer demands
Competitive environment
Supplier requests
Governmental pressure
Internal Reasons
Cost / Profit Issues
Social Responsibilities
Benefits of Green Consumers-
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The marketing of successfully established green products showcases non-
green consumer value, and there are at least five desirable benefits
commonly associated with green products:
Efficiency and cost effectiveness;
Health and safety;
Performance;
Symbolism and status;
Convenience
Gaining retaining customers
Improved environmental quality
Problems-
Lack of consumer awareness
Limited scientific knowledge
Financial constraints
Deceptive marketing
Lack of stringent legal standards
Implementing Green Consumers Strategies and
Tactics
8 steps of going “green”
Targeting
Product design
Positioning
Pricing
Greening logistics
Marketing waste
Promotion
Green Alliances
4p’s Of Green Consumers
Product-Nike and Jordan Shoes
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Price- Big-Blue Bag –Ikea and Wallmart
Place-Carbon Emissions of Ship
Promotion-Toyota is trying to push gas/electric hybrid technology
into much of its product line. Largest R&D investment-Hydrogen car
What consumers really want?
Is it genuine
Is it of value
Is it relevant
Is it easy to adopt
Suggested solution-
Employees awareness program
Effective communication
Constantly refine the product
Back up from top level
Principles of Green Consumers-
Consumer Value Positioning
The marketing of successfully established green products showcases
nongreen consumer value, and there are at least five desirable benefits
commonly associated with green products:
Efficiency and cost effectiveness;
Bundling- To encourage demand, the CFC-free feature was bundled with
attributes desired by Chinese consumers, which included energy
efficiency, savings, brand/quality, and outstanding after-sales service.
Credibility of product claims
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Credibility is the foundation of effective Green Consumers. Green products
must meet or exceed consumer expectations by delivering their promised
consumer value and providing substantive environmental benefits.
Calibration of consumer knowledge
Many of the successful green products in the analysis described here
employ compelling, educational marketing messages and slogans that
connect green product attributes with desired consumer value. That is, the
marketing programs successfully calibrated consumer knowledge to
recognize the green product’s consumer benefits. In many instances, the
environmental benefit was positioned as secondary, if mentioned at all.
Third Party Endorsements and Eco-Certifications- Expert third parties with
respected standards for environmental testing (such as independent
laboratories, government products as consuming up to 30 percent less
energy than comparable alternatives.
The U.S. Department of Agriculture’s “USDA Organic” certifies the
production and handling of organic produce and dairy products.
Word-of-Mouth Evangelism and the Internet- Increasingly, consumers
have grown skeptical of commercial messages, and they’re turning to the
collective wisdom and experience of their friends and peers about
products.72 Word-of-mouth or “buzz” is perceived to be very credible,
especially as consumers consider and try to comprehend complex product
innovations.
The Internet, through e-mail and its vast, accessible repository of
information, Web sites, search engines, blogs, product ratings sites,
podcasts, and other digital platforms, has opened significant opportunities
for tapping consumers’ social and communication networks to diffuse
credible “word-of-mouse” (buzz facilitated by the Internet) about green
products. This is exemplified by one of the most spectacular product
introductions on the Web:
Health and safety;
Performance;
Symbolism and status; and
Convenience
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Green Consumers – Adoption by the Firms
Green Consumers has been widely adopted by the firms worldwide and
the
following are the possible reasons cited for this wide adoption:
OPPORTUNITIES-As demands change, many firms see these
changes as an opportunity to be exploited and have a competitive
advantage over firms marketing non-environmentally responsible
alternatives. Some example of firms who have strived to become more
environmentally responsible, in an attempt to better satisfy their
consumer needs are:
o McDonald's replaced its clam shell packaging with waxed paper
because of increased consumer concern relating to polystyrene
production and Ozone depletion.
o Tuna manufacturers modified their fishing techniques because
of the increased concern over driftnet fishing, and the resulting
death of dolphins.
20
o Xerox introduced a "high quality" recycled photocopier paper in
an attempt to satisfy the demands of firms for less
environmentally harmful products.
SOCIAL RESPONSIBILITY - Many firms are beginning to realize
that they are members of the wider community and therefore must
behave in an environmentally responsible fashion thus resulting in
environmental issues being integrated into the firm's corporate culture.
o An example of a firm that does not promote its environmental
initiatives is Coca-Cola which invested large sums of money in
various recycling activities, as well as having modified their
packaging to minimize its environmental impact. Another firm
who is very environmentally responsible but does not promote
this fact, at least outside the organization, is Walt Disney World
(WDW) with an extensive waste management program and
infrastructure.
GOVERNMENTAL PRESSURE - Governmental regulations relating
to environmental marketing are designed to protect consumers through
regulations designed to control the amount of hazardous wastes
produced by firms by issuing of various environmental licenses, thus
modifying organizational behavior. In some cases governments try to
"induce" final consumers to become more responsible by taxing
individuals who act in an irresponsible fashion.
o For example in Australia there is a higher gas tax associated
with leaded petrol.
COMPETITIVE PRESSURE -Another major force in the
environmental marketing area has been firms' desire to maintain their
competitive position. In many cases firms observe competitors
promoting their environmental behaviors and attempt to emulate this
behavior. In some instances this detrimental environmental behavior.
o For example, it could be argued that Xerox's "Revive 100%
Recycled paper" was introduced a few years ago in an attempt
to address the introduction of recycled photocopier paper by
21
other manufacturers. In another example when one tuna
manufacture stopped using driftnets the others followed suit.
COST OR PROFIT
ISSUES - Disposing of
environmentally harmful by-
products, such as
polychlorinated biphenyl (PCB)
contaminated oil are becoming increasingly costly and in some cases
difficult. In minimizing wastes firms often develop more effective
production processes that reduce the need for some raw materials thus
serving as a double cost savings. In other cases firms attempt to find
end-of-pipe solutions, instead of minimizing waste by trying to find
markets or uses for their waste materials, where one firm's waste
becomes another firm's input of production.
Examples-
GREEN PRODUCT
Tide Coldwater Laundry Detergent -“Did you know that between 80 and
85 percent of the energy used to wash clothes comes from heating the water?
Tide Coldwater—The Coolest Way to Clean.”
Yo bikes - these bikes do not use petrol or diesel instead run on electric
charging and hence cause less pollution.
22
Philips Light's CFL - Philips Lighting's first shot at marketing a standalone
compact fluorescent light (CFL) bulb was Earth Light, at $15 each versus 75
cents for incandescent bulbs. The
product had difficulty climbing out of its
deep green niche. The company re-
launched the product as "Marathon,"
underscoring its new "super long life"
positioning and promise of saving $26 in
energy costs over its five-year lifetime. Finally, with the U.S. EPA's Energy
Star label to add credibility as well as new sensitivity to rising utility costs and
electricity shortages, sales climbed 12 percent in an otherwise flat market.
In USA, Levis’ "Recycled Jeans" get on the green side of trendy eco-smart
consumers, seamlessly combining the desirable washed out look and feel of
its product with a self-evident ecological benefit.
Coca-Cola pumped syrup directly from tank instead of plastic which saved 68
million pound/year.
Volkswagons eco friendly car Can a car ever be eco-friendly?
Well, their latest BlueMotion Polo is green enough to be tax exempt - in fact,
it actually gives off less CO2 than any other car in its class.
Nokia wins Green Company of the Year award in India for its take back
campaign
23
Nokia initiatives includes
Anyone can drop their phone off at any Nokia flagship store as well as other
selected retailers or contact your local authority. There are also close to 5000
Nokia care points globally each taking back mobile devices and accessories.
All components of its handset are recycle able whether it be batteries,
components, covers , packaging.
Nokia phones are made up of only 45% plastic and rest of ceramic, metals,
non metals and copper. All the metals in the mobile can be recovered and
used to generate energy or make new product from musical instruments to
gold rings or even a park bench.
WIPRO Infotech, the India and Middle East IT arm of Wipro, on Thursday
launched its eco-friendly and toxin free desktops, manufactured with materials
free of deadly chemicals.
GREEN COMPANY
NHS Green Initiatives - There’s clearly lots of opportunities to save travel
costs and associated CO2 emissions in the NHS, for instance where multi-
disciplinary teams of experts need to consult on a diagnosis. The NHS
Sustainable Development Unit has reported that NHS staff, patients and
visitors travel 10.4 billion Km per year. If video conferencing was used for just
30 hours per week in each large trust it could deliver travel savings of £57m
(additionally this could also save up to 2.3m working hours) per year and
7,200 tonnes of CO2.
The NHS has a carbon footprint of 18 million tonnes CO2 per year, up 40%
since 1990, so it has a significant challenge ahead to comply with government
carbon reduction targets and legislation (which includes the CRC). Green IT
is clearly a way of doing that and the N3 web site points out that the network
can help the NHS reduce its footprint in other ways, including:
Reducing the N3 core Points of Presence from 57 to 10 and refreshing
routers.
24
If 25% of the staff that could access the network from home did so one day a
week it would save 138,812 days of staff commuting travel per year, saving
5.4m Km of staff travel and 773 tonnes of CO2.
Replacing all paper prescriptions with Electronic Transmission Prescriptions
could save 4,197 tones of paper (equivalent to around 100,000 trees) and
14,100 tones of CO2 per year.
Badarpur Thermal Power station of NTPC in Delhi is devising ways to
utilize coal-ash that has been a major source of air and water pollution.
Barauni refinery of IOC is taken steps for restricting air and water pollutants.
Electronics sector - The consumer electronics sector provides room for
using Green Consumers to attract new customers.
One example of this is HP's promise to cut its global energy use 20 percent by
the year 2010. To accomplish this reduction below 2005 levels, The Hewlett-
Packard Company announced plans to deliver energy-efficient products and
services and institute energy-efficient operating practices in its facilities
worldwide.
Introduction of CNG in Delhi- New Delhi, capital of India, was being polluted
at a very fast pace until Supreme Court of India forced a change to alternative
fuels. In 2002, a directive was issued to completely adopt CNG in all public
transport systems to curb pollution.
Maruti- Greening of Supply Chain- The company has remained ahead of
regulatory requirements in pursuit of environment protection and energy
conservation at its manufacturing facilities, and in development of products
that use fewer natural resources and are environment friendly.
The company credited the 'Just-in-Time' philosophy adopted and internalized
by the employees as the prime reason that helped to excel in this direction.
McDonald's restaurant's napkins, bags are made of recycled paper.
25
Greenest companies in India-
A survey conducted by BT- AC Nielsen ORG-MARG, ranked Oil and
Natural Gas Company (ONGC) the greenest company followed by
Reliance Industries. Overall, the oil and petroleum sector was considered
the greenest sector in India. BPCL, Castrol India and HPCL are other
companies in this sector that were rated green companies in the survey.
The private sector companies were in a majority (13 out of 20) in the list of
Top 20 greenest companies in India.
India’s software companies are also considered green companies. IT
companies are allowed to set up their offices within the city limits. This is
because they do not harm the environment. Johnson and Johnson Ltd.,
Chillibreeze, IBM, LG Electronics, PNB, Tata Motors and Hero Honda
Motors are some of the other green companies in India.
26
Dell is implementing a plan to simplify and revolutionize computer packaging
that will result in estimated savings of more than $8 million and the elimination
of approximately 20 million pounds of packaging material over the next four
years. Today’s announcement is the latest milestone in Dell’s commitment to
become the greenest technology company on the planet.
ITC has been 'Carbon Positive' three years in a row (sequestering/storing
twice the amount of CO2 than the Company emits). 'Water Positive' six years
in a row (creating three times more Rainwater Harvesting potential than ITC's
net consumption). Close to 100% solid waste recycling.
ITC's Social and Farm Forestry initiative has greened over 80,000 hectares
creating an estimated 35 million person days of employment among the
disadvantaged. ITC's Watershed Development Initiative brings precious water
to nearly 35,000 hectares of drylands and moisture-stressed areas.
McDonald’s is using networking equipment from Echelon Corporation to
manage and reduce the energy consumption of its kitchens.
A McDonald’s restaurant in Pensacola, Florida is digging 55 holes, 350 feet
deep to heat and cool the new restaurant with geothermal energy.
GREEN PACKAGING- Mc Donald’s wraps all its food in paper bags. It
promotes the use of paper bags instead of plastic bags.
Mac donalds is also known for usage of least amount of plastic and the
practices it follows also are such that minimum resources are utilized. Like the
packaging of its food is done in paper bag and even wrapped in paper thus
reducing the usage of plastics.
27
GREEN ADS - these are th paper ads given by an organization called
green peace which works for social and environmental issues.
Going green with Carbon Credits.
With the amount of CO2 and other greenhouse gases in the air reaching
alarming levels, there has been rising international concern about the
immense damage they cause to the environment. Concepts like carbon
credits and carbon offset were introduced in order to improve the scenario
by encouraging firms which are more eco friendly in the manner in which
they conduct their operations.
The use of carbon credits is a new phenomenon. One carbon credit gives
the permission for emission of one tonne of carbon dioxide or a similar
amount of any other greenhouse gas into the atmosphere. Through the
buying and selling of carbon credits in the carbon trading system, the total
level of global emissions can be controlled.
Every firm is provided with a permit of
carbon credits, which regulates the extent to which it can release carbon
dioxide and other greenhouse gases. Businesses opt for carbon trading if
their emissions do not fall within their share of carbon credits in order to
28
buy credits due to a legal obligation. They buy them from organizations
with lesser emissions having extra carbon credits.
Hence, total carbon emissions stay lower than the fixed levels, and
organizations are encouraged to use greener ways of doing their work that
lower the amount of gases discharged by them and save them from extra
expenditure to be made on carbon credits. This system is beneficial for
companies using ecologically sustainable methods to keep trying in this
respect as they can make more earnings from carbon credits business.
Carbon credits can be purchased like any other commodity because they
are sold in an open market and there are several agencies that trade in
them. In fact, even if you are not trading on behalf of a firm, you can opt to
buy carbon credits in order to reduce your carbon footprint. The amount
raised through your investment is channelized for financing ecological
projects running in various parts of the globe that contribute towards
counterbalancing your emissions.
It is estimated that 60-70% of Green House Gases (like hydro
fluorocarbons, methane and nitrous oxide) emission is through fuel
combustion in industries like cement, steel, textiles and fertilizers. They
are released as by-products of certain industrial process, which adversely
affect the ozone layer, leading to global warming. Carbon credits seek to
reduce these emissions by giving them a monetary value. One credit gives
the owner the right to emit one ton of carbon dioxide. Such a credit can be
sold in the international market at the prevailing market price. This means
that carbon becomes a cost of business and is seen like other inputs such
as raw materials or labor.
International treaties have set quotas on the amount of GHG countries can
produce, which in turn set quotas for businesses. Businesses that are over
their quotas must buy carbon credits for excess emissions, while those
below can sell their remaining credits. The ones who are selling are
companies that use clean technology and those buying are the world’s
polluters. These credits can be exchanged between businesses or bought
29
and sold in international markets at prevailing market price at two
exchanges, namely the Chicago Climate Exchange and the European
Climate Exchange. The Multi-Commodity Exchange of India (MCX) may
soon become the third exchange in the world to trade in carbon credits.
As emission levels increase globally, the number of companies
wanting/needing to buy more credits will increase, pushing up the market
price and encouraging businesses to undertake eco-friendly activities that
create for them carbon credits to sell. Developed countries have to spend
nearly $300-500 for every ton reduction in CO2, against $10-$25 by
developing countries. India’s GHG emission is below the target and so, it
is entitled to sell surplus credits to developed countries. India is considered
to claim about 31% of the total world carbon trade, which can give $25bn
by 2010.
This is what makes trading in carbon credits such a great business
opportunity. Foreign companies which cannot fulfill the norms can buy the
surplus credit from companies in other countries. Many Indian companies
have been re-rated on the stock markets on the basis of the bonanza that
will accrue to them when carbon trading kicks off. SRF Ltd and Shell
Trading International have entered into sale and purchase Credit Emission
Reduction. Suzlon Energy and Shriram EPC have business in wind energy
which is eligible for carbon credit benefits. Shree Renuka Sugars is also
expected to benefit from carbon credits. Gujarat Flourochemicals was
among the early companies to register for Clean Development Mechanism
(CDM) project.
India has emerged as the dark horse in this race as more than 200 Indian
entities have applied for registering their CDM Project for availing carbon
credits. Currently, one carbon credit is worth 13 euros. Indian companies
can have higher incomes more from carbon credits than their core
business. The carbon credit market was worht $25 billion last year and is
growing at tremendous space, and there is a demand to reduce 1 billion
30
ton of carbon emissions in the world, so
that threats like global warming could be
dealt with.
Indian companies are fast realizing
there’s money to be made by becoming
eco-friendly. With new core sector
projects like power and steel coming up in
India, the carbon credit market will rise
once again. The 800 million farming
community in India has also a unique
opportunity where they can sell Carbon
Credits to developed nations.
Challenges Ahead
Green products require renewable and recyclable material, which is
costly
Requires a technology, which requires huge investment in R & D
Water treatment technology, which is too costly
Majority of the people are not aware of green products and their uses
Majority of the consumers are not willing to pay a premium for green
products
Ask us how to go green?
Less use of polythene
Less use of mobile phone
Crush plastic bottle after use
31
Use disposable items
Love nature
Save water
Save fuel
Avoid smoking
32
RESEARCH METHODOLOGY
Sample and Sampling Method
Sampling is the process of collecting information only from a small
representative part of the population. Stratified Random Sampling is one
amongst the most elementary random sampling techniques. A stratified
random sampling is a method that allows each possible sample to have an
equal probability of being picked and each item or individual in the entire
population have an equal chance of being included in the sample. For this
project work, without replacement sampling method is used. It means that a
person or item once selected is not returned to the frame and therefore
cannot be selected again. This selection process continues until the desired
sample size ‘n’ is obtained.
i. Sampling chosen with the Random method
ii. Sampling Area would be Delhi & NCR and near area only
iii. Sample Size: 100
Research in common parlance refers to a search for knowledge. One can also
define research as a scientific and systematic search for pertinent information
on a specific topic. According to Clifford Woody research comprises defining
and redefining problems, formulating hypothesis or suggested solutions;
collecting, organizing and evaluating data; making deductions and reaching
conclusions; and at last carefully testing the conclusions to determine whether
they fit the formulating hypothesis.
33
Research methodology is a systematic way to solve the research problem.
The research process consists of series of closely related activities and to
solve a research problem both primary and secondary analysis method is
used for data collection purpose.
Primary Data:
Primary data can be termed as first hand information; it refers to the
information or data which is collected directly from the origin of information
person who know the information or data either by asking the question /
interview. The primary data is mainly assimilated from surveys, interviews,
focus groups and questionnaires for the purpose of reaching a consensus
about the case.
Secondary Data:
It refers to data collected through second hand information. The secondary
data is gathered from the, magazines, Internet sites, articles and journals on
Going Green. Any new information that was a source of good learning was
given prime importance.
Above study has been conducted by collecting secondary data; no primary
data is used. With the help of all data collected, a conclusion will be
performed that will provide solution for the project framed.
34
ANALYSIS & INTERPRETATION
ITC GOING GREEN INITIATIVE
The need to turn environment-friendly is not just fashionable, it makes
business sense too. And India Inc is cashing in on the trend and going green
in a very big way, finds Gaurav Sharma quite likes the electronic bike that he
bought three months ago. Not only does it save him a Rs 1,000 a month on
commuting, he also feels proud to be doing his bit for the environment. The
24-year old employee of a leading IT company in Bangalore was initially
reluctant to replace his petrol powered 150-cc bike but is happy that he made
the shift to cleaner transport. “It’s the need of the hour. We all ought to chip in
with our bit for the planet,” he explains.
Perhaps this is the larger sentiment in Corporate India also. Noticing a
compelling need to go green, one that is more pronounced than ever before,
some of the biggest corporations across different sectors of economic activity
are switching to provide greener solutions to a rapidly increasing set of
consumers who wish to lower their carbon footprint.
Going Green has become fashionable and a business mantra, these days.
There are newer business models coming out of it. From green clothes, which
mind you, are expensive to green offices, which consume lesser electricity,
turn off their lights automatically and have their own water and waste recycling
plants, even generating their own power, green is the way to go.
Thus Hyderabad Airport, ITC-Welcomgroup, Infosys, TCS, Agilent, HP, IBM,
all claim to be going green. It adds to the feel good factor too, and marketers
make buyers feel good about the fact they will contribute something to the
environment by buying this product.
35
So, Pepsi and Coke are working on recyclable plastic, while Sun
Microsystems and Cisco, offer green data centres, even as Google produces
its own solar power. Now even the Indian army is going green, as many Army
cantonments run on their own green power, produced from wind sources.
With carbon trading becoming lucrative on many exchanges, it becomes an
attractive business model too. Companies like Uniglobe offer green travel.
Thus Rs 100 is deducted from your ticket, as you travel from Delhi to Mumbai.
Further, Rs 70 is given to a green initiative, like a renewable energy project
and consumers earn carbon credits for this. The carbon credits, in turn, can
be monetised. Large travel companies like American Express Travel also offer
services to corporates whereby they can monetize their green travel on stock
exchanges and become carbon neutral. In times to come, only carbon neutral
companies will be allowed to bid for certain large projects, the EU has already
moved a bill suggesting as much. Clearly, green is the way to be. Cars are
going green and so is your electricity. In the upcoming Commonwealth
Games, the Delhi government plans major environment-friendly initiatives
such as producing power from garbage. So, your cell phone might soon run
on green power. Banking is also going green, and so is the food you eat.
SOME companies - such as FMCG major ITC - have gone a step ahead and
included their green initiatives as a part of their performance evaluation
system. The cigarettes to hotels conglomerate claims to be carbon positive for
the past four years, isolating twice the amount of carbon dioxide it emits. It
also claims to be water positive for the past seven years, generating two times
more rainwater harvesting potential than what it consumes.
“We have a corporate culture of staying green. For over ten years, we have
been evaluating our performance on based on our financial, social and
environmental initiatives during the year,” says Nazeeb Arif, official
spokesperson of ITC. Similar is the case of Pepsico India, which is aiming to
rely on renewable sources for 25% of its energy requirement within the next
36
two years by using wind energy, solar energy and biomass. The company
claims to have set up India’s first remote wind turbine in Tamil Nadu last year
which contributes a carbon emission reduction of more than 3,500 tons
annually and helps meet more than 75% of the electricity requirements of its
Mamandur plant. Pepsico also claims the conversion of all its own bottling
plants from furnace oil to biomass- powered boilers. The switchover will help
offset a much larger amount of carbon emission. Five of the company’s plants
use solar power for lights (tubular daylight devices). Solar water heating will
save enough energy & electricity in the plants. Fast moving consumer goods
major ITC Wednesday signed a MoU with Orissa government run Orissa
Rural Development and Marketing Society (ORMAS) for marketing raw
incense sticks in the state - a move that officials say will provide additional
income to more than 3,000 rural women.
The agreement was signed by the chief executive of ORMAS B.N. Das, and
ITC Agarbatti division chief executive officer V M Rajasekharan in the
presence of Chief Minister Naveen Patnaik and other top state government
officials. As per the MoU, ITC will facilitate marketing of raw agarbattis
(incense sticks) produced by rural women to vendors supplying Mandaldeep
brands to the FMCG giant. The project is expected to provide employment
opportunities to over 3,212 people, including 2487 women self-help groups.
“ITC’s partnership with ORMAS will not only help establish a supply chain
model for raw battis but also contribute to value addition through the
establishment of a perfuming and packaging centre for Mangaldeep brand
agarbattis in Orissa in the near future,” Mr Rajasekharan on Wednesday told
“The ET”. ITC has also assured the state government to set up a scented and
packaging unit in Bhubaneswar soon. A large number of women are involved
in rolling agarbattis which are used by ITC - one of the leading marketers of
incense sticks manufactured by the small scale sector in India. ITC’s
“Mangaldeep” is one of the leading agarbatti brands in India and has a market
share of 6% and second largest agarbatti producers in the country. A
beaming chief minister complimented ITC for the innovative initiative saying
that the move would empower rural women with additional source of
livelihood.
37
A large number of women in Orissa are involved in rolling agarbattis. The
state also is rich in bamboos and other raw materials required for making raw
agarbattis. “We decided to take help of ORMAS which can mobilize the
women self help groups to making the agarbattis. This will also go a long way
to ensure livelihood to thousands of rural women contributing to ITC’s triple
bottom line philosophy of simultaneously augmenting economic,
environmental and social capital”, Mr Rajasekharan remarked.
ITC has lined up with 13 SSI units, of which seven has got ISO certification,
across the country for the final agarbatti products packaged keeping its quality
in mind. ITC has already procured 10 tons of raw agarbattis from ORMAS and
the supply is expected to go up to 50 tons in the next four months.
ITC, which recorded a turnover of Rs 40 crore in agarabatti business in 2008-
09 achieving a 40% growth in comparison to the previous year, expects 50%
growth in this fiscal. “The response to our Mangaldeep brand has been good
since it is a lifestyle and ambience-creating product. We are quite optimistic
our trade volume will increase this fiscal,” CEO Mr Rajasekharan said. The
income generation of the rural producers will be more if the State Government
withdraws 4% value added tax (VAT) on the sale of agarbatti manufactured by
women SHGs on the lines of other states like West Bengal, Assam, Uttar
Pradesh, Punjab, Haryana, Delhi, Madhya Pradesh and Jharkhand, Mr
Rajasekharan said. The CEO also met the state finance secretary, Mr J K
Mohapatra in this regard.. As international buyers insist on the Forest
Stewardship Council (FSC) certification as a necessary prerequisite to place
orders, more and more domestic companies are going in for the qualification
to help increase their exports.
Forest certification is a mechanism for forest monitoring, tracing and labelling
timber, wood and pulp products, besides non-timber forest products where the
quality of management is judged against a series of agreed standards. Quality
of management includes environmental, social and economic perspectives.
The certificate is issued by an independent party, which verifies that an area
of forest is managed to a defined standard.
38
“From the export market, there is a demand for certified suppliers.
Companies overseas like Marks and Spencers, which source from India, look
for suppliers which have been certified as per FSC’s 10 principles,” said Dr
T.R. Manoharan, Senior Coordinator, Worldwide Fund for Nature (WWF)-
India. He added that the 10 principles underline that all Government laws
regarding forests need to be stringently followed, while the company has to
refrain from using genetically modified plants. Also, the companies concerned
need to follow rules regarding payment of its workers, such as maintaining
parity between the wages of men and women and not allowing child labour.
According to Dr Manoharan, at present 25 Indian companies in the paper and
timber business have secured such certificates, while 10-15 more are in the
pipeline. This includes ITC, which availed a certificate last month for a unit of
its paper business based out of Coimbatore, Tamil Nadu. “The unit in
Coimbatore is where they collect used paper and waste material and recycle
it. ITC has also applied for certification for its other units,” he said. Other major
companies include Ballarpur Industries Ltd (BILT), Relaxo Footwear, Khanna
Paper Mills and Century Plyboards. Mr S.N. Venkataraman, General Manager
(Paperboards and Speciality Papers Division), ITC, said that the company,
since 2008, has planted eight trees for every tree it cut and it is now a carbon
positive company. He added that ITC, which is now focussing more on its
other businesses besides tobacco, sources most of its fibre for its paper
plants from four plantations in India.
“Less that 50 per cent of the net revenue from the 2008-09 fiscal came from
the tobacco business. This shows how fast our other businesses are growing.
Over the next five years, we’ve committed up to half of our sales from FSC
certified products,” he said. Among the 10-15 companies awaiting
certification is Tamil Nadu Newsprint and Paper Ltd (TNPL). However, names
of the other companies could not be availed.
Elaborating on the system of audit, Dr Manoharan said that there is an
annual check on the company’s premises, by the auditor assigned by the
FSC. Moreover, if FSC senses any discrepancy, it can conduct its own
surprise check. He added that FSC has assigned several certifying bodies
39
such as Smartword/Rainforest Alliance, which keep a check on the standards
followed by companies.
40
Table 1
To save energy, I drive my car as little as possible
Frequency Percent
Valid COMPLETLY DISAGREE
15 7.1
SOMEWHAT DISAGREE
32 15.2
NEITHER AGREE NOR DISAGREE
22 10.4
SOMEWHAT AGREE 75 35.5
COMPLETLY AGREE
67 31.8
Total 211 100.0
Interpretation:
The above table indicates that 35.5% of rspondence are somewhat agree
and 31.8% completely agree to drive little to save energy.
41
Table 2
I normally make a conscious effort to limit my use of products that are
made of or use scarce resources
Frequenc
y Percent
Valid COMPLETELY
DISAGREE11 5.2
SOMEWHAT
DISAGREE68 32.2
NEITHER AGREE
NOR DISAGREE57 27.0
SOMEWHAT AGREE 49 23.2
COMPLETELY
AGREE26 12.3
Total 211 100.0
The above tables indicates that 32.2% of respondents somewhat disagree
and 27% of respondents either agree nor disagree with the concept to make
conscious effort to limit use of products that are made of or use scarce
resources.
42
43
Table 3
I will not buy products which have excessive packaging.
Frequenc
y Percent
Valid COMPLETELY
DISAGREE51 24.2
SOMEWHAT
DISAGREE79 37.4
NEITHER AGREE
NOR DISAGREE36 17.1
SOMEWHAT AGREE 26 12.3
COMPLETELY
AGREE19 9.0
Total 211 100.0
The above table indicates that 37.4% of respondents are disagree and 24.2%
of them completely disagree to buy low priced products without caring its
impact on social.
44
45
Table 4
When there is a choice, I always choose that product which contributes
to the
Least amount of pollution
Frequenc
y Percent
Valid COMPLETELY
DISAGREE2 .9
SOMEWHAT
DISAGREE5 2.4
NEITHER AGREE
NOR DISAGREE29 13.7
SOMEWHAT AGREE 60 28.4
COMPLETELY
AGREE115 54.5
Total 211 100.0
The above table indicates that when there is a choice, 54.5% consumers give
importance to the products which causes less pollution and 28.4% of them
give preference to that.
46
47
Table 5
I have tried very hard to reduce the amount of electricity I use.
Frequenc
y Percent
Valid COMPLETELY
DISAGREE10 4.7
SOMEWHAT
DISAGREE13 6.2
NEITHER AGREE
NOR DISAGREE31 14.7
SOMEWHAT AGREE 95 45.0
COMPLETELY
AGREE62 29.4
Total 211 100.0
The above table indicates that 45% of consumers tried to reduce electricity
they use and 29.4% of them try hard to reduce.
48
49
Table 6
If I understand the potential damage to the environment that some
products can cause,
I do not purchase these products.
Frequenc
y Percent
Valid COMPLETELY
DISAGREE9 4.3
SOMEWHAT
DISAGREE8 3.8
NEITHER AGREE
NOR DISAGREE51 24.2
SOMEWHAT AGREE 101 47.9
COMPLETELY
AGREE42 19.9
Total 211 100.0
The above table shows that 47.9% of consumers are taking care on not to
buy the products which potentially damage the environment and 24.2% of
consumers neither agree nor disagree to the concept.
50
51
Table 7
I have switched products for ecological reasons.
Frequenc
y Percent
Valid COMPLETELY
DISAGREE7 3.3
SOMEWHAT
DISAGREE16 7.6
NEITHER AGREE
NOR DISAGREE37 17.5
SOMEWHAT AGREE 115 54.5
COMPLETELY
AGREE36 17.1
Total 211 100.0
The above table indicates that 54.5% of consumers make thinking about
ecological reaction of product and 17.5% of them neither agree nor disagree
and 17.1% completely agree to the concept.
52
53
Table 8
I make every effort to buy paper products made from recycled paper.
Frequenc
y Percent
Valid COMPLETELY
DISAGREE8 3.8
SOMEWHAT
DISAGREE42 19.9
NEITHER AGREE
NOR DISAGREE95 45.0
SOMEWHAT AGREE 44 20.9
COMPLETELY
AGREE22 10.4
Total 211 100.0
The above table shows that 45% of consumers neither agree nor disagree
and 20.9% of them somewhat agree to take effort to buy paper products
made from recyle paper.
54
55
Table 9
I have purchased a household appliance because it uses less electricity
than other brands.
Frequenc
y Percent
Valid COMPLETELY
DISAGREE15 7.1
SOMEWHAT
DISAGREE36 17.1
NEITHER AGREE
NOR DISAGREE33 15.6
SOMEWHAT AGREE 95 45.0
COMPLETELY
AGREE32 15.2
Total 211 100.0
The above table indicates that 45% of consumers somewhat agree and
17.1% of consumers somewhat disagree to purchase household appliance
which uses less electricity than other brands.
56
57
Table 10
I use a low-phosphate detergent (or soap) for my laundry.
Frequenc
y Percent
Valid COMPLETELY
DISAGREE12 5.7
SOMEWHAT
DISAGREE22 10.4
NEITHER AGREE
NOR DISAGREE92 43.6
SOMEWHAT AGREE 45 21.3
COMPLETELY
AGREE16 7.6
Total 187 88.6
Missing NO AWARNESS 24 11.4
Total 211 100.0
The above table shows that 43.6% of consumers neither agree nor disagree
and 21.3% of them somewhat agree to use low-phosphate detergent or soap.
58
59
Table 11
I have convinced members of my family or friends not to buy some
products
which are harmful to the environment.
Frequenc
y Percent
Valid COMPLETELY
DISAGREE7 3.3
SOMEWHAT
DISAGREE17 8.1
NEITHER AGREE
NOR DISAGREE31 14.7
SOMEWHAT AGREE 116 55.0
COMPLETELY
AGREE40 19.0
Total 211 100.0
The above table denotes that 55% of consumers somewhat agree and 19% of
them completely agree to convince members of my family or friends not to
buy some products which are harmful to the environment.
60
61
FINDINGS & INFERENCES
Alarm over deforestation has grown as world population figures
continue their inexorable rise. Our data reveals the extent of forest
decline over the last 20 years country by country
B. Forest extent: Total forest area
(Units: Thousand hectares)
Country 1990 2000 2005
Afghanistan 1,309 1,015 867
Albania 789 769 794
Algeria 1,790 2,144 2,277
Bahamas, The 515 515 515
Bahrain 0 0 0
Bangladesh 882 884 871
Cambodia 12,946 11,541 10,447
Cameroon 24,545 22,345 21,245
Canada 310,134 310,134 310,134
Denmark 445 486 500
Djibouti 6 6 6
Dominica 50 47 46
Ecuador 13,817 11,841 10,853
Egypt 44 59 67
El Salvador 375 324 298
Faeroe Islands 0 0 0
62
B. Forest extent: Total forest area
(Units: Thousand hectares)
Country 1990 2000 2005
Falkland Islands 0 0 0
Fiji 979 1,000 1,000
Gabon 21,927 21,826 21,775
Gambia 442 461 471
Georgia 2,760 2,760 2,760
Germany 10,741 11,076 11,076
Haiti 116 109 105
Honduras 7,385 5,430 4,648
Hungary 1,801 1,907 1,976
Iceland 25 38 46
India 63,939 67,554 67,701
Indonesia 116,567 97,852 88,495
Iran 11,075 11,075 11,075
Jamaica 345 341 339
Japan 24,950 24,876 24,868
Jordan 83 83 83
Kazakhstan 3,422 3,365 3,337
Kenya 3,708 3,582 3,522
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B. Forest extent: Total forest area
(Units: Thousand hectares)
Country 1990 2000 2005
Kiribati 2 2 2
Lao People's Dem Rep 17,314 16,532 16,142
Latvia 2,775 2,885 2,941
Lebanon 121 131 136
Macedonia, FYR 906 906 906
Madagascar 13,692 13,023 12,838
Malawi 3,896 3,567 3,402
Malaysia 22,376 21,591 20,890
Namibia 8,762 8,033 7,661
Nauru 0 0 0
Nepal 4,817 3,900 3,636
Netherlands 345 360 365
Pakistan 2,527 2,116 1,902
Palau 38 40 40
Palestinian Territories 9 9 9
Panama 4,376 4,307 4,294
Puerto Rico 404 407 408
Qatar 0 0 0
Reunion 87 87 84
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B. Forest extent: Total forest area
(Units: Thousand hectares)
Country 1990 2000 2005
Romania 6,371 6,366 6,370
Russia 808,950 809,268 808,790
Rwanda 318 344 480
Saint Helena 2 2 2
Saint Kitts and Nevis 5 5 5
Saint Pierre and Miquelon 3 3 3
Tajikistan 408 410 410
Tanzania 41,441 37,318 35,257
Thailand 15,965 14,814 14,520
Timor-Leste 966 854 798
Uganda 4,924 4,059 3,627
Ukraine 9,274 9,510 9,575
United Arab Emirates 245 310 312
United Kingdom 2,611 2,793 2,845
United States 298,648 302,294 303,089
Vanuatu 440 440 440
Venezuela 52,026 49,151 47,713
Vietnam 9,363 11,725 12,931
Virgin Islands 12 10 10
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B. Forest extent: Total forest area
(Units: Thousand hectares)
Country 1990 2000 2005
Western Sahara 1,011 1,011 1,011
Yemen 549 549 549
Zambia 49,124 44,676 42,452
Zimbabwe 22,234 19,105 17,540
Deforestation removes a vital line of defence against climate change.
Pollution levels in metropolitan cities
Pollution levels in metropolitan cities are assessed and monitored by the Central Pollution
Control Board (CPCB) under the programmes namely National Air
Monitoring Programme (NAMP)
The data collected during 2006-2008 indicate that the concentrations of air pollutants
like Sulphur dioxide (SO2) and those of Oxides of Nitrogen (NOx) except for Kolkata during
2008 are within the prescribed National Ambient Air Quality Standards (NAAQS). The
concentrations of Respirable Suspended Particulate Matter (RSPM) have generally exceeded
the ambient air quality standards. Data pertaining to major pollutants in four mega cities is
provided in Annexure. The Ground Water Quality (GWQ) is monitored in 35 major cities. The
levels of total dissolved solids (TDS) and some heavy metals have exceeded the permissible
limit in few cities. CPCB is monitoring sewage generation and treatment capacity in 35 major
cities. As per CPCB report, the sewage generation in 35 major cities is 15,644
million litres per day (MLD), and whereas, the treatment capacity (in 23 major cities) is 8040
MLD.
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Sulphur dioxide SO2 [Normal Value <60 microgram per cubic meter, Annual Average for Residential Area]
S. No. Cities 2006 2007 2008(Jan to August)
1. Delhi 9 4 42. Kolkata 7 8 73. Mumbai 9 11 84. Chennai 7 9 7
Oxides of Nitrogen NOx [Normal Value <60 microgram per cubic meter, Annual Average for Residential Area]
S. No. Cities 2006 2007 2008(Jan to August)
1. Delhi 43 36 432. Kolkata 53 58 633. Mumbai 29 40 344. Chennai 10 9 10
The ambient air quality is monitored with respect to major air pollutants viz., SO2, NOx and
RSPM.
Bringing Green Revolution to Eastern Region
The Green Revolution in Eastern Region is waiting to happen. To realize the
potential of the region, last year's initiative will be continued in 2011-12 with a
further allocation of `400 crore. The program would target the improvement in
the rice based cropping system of Assam, West Bengal, Orissa, Bihar,
Jharkhand, Eastern Uttar Pradesh and Chhattisgarh
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CASE STUDY- THE ORCHID
THE ORCHID A ECOTEL HOTEL
Ecotel: the hallmark of environmentally sensitive hotels. The orchid hotel was
visited y me to fid out their waste products ad waste management. The
orchid- an ecotel hotel is Asia’s first certified eco-friendly five star hotel ad
world only ecotel to e certified as ISO 14001. Everything is designed so as to
e unobtrusive. All the materials ad systems used I constructing ad running the
orchid are esuriently.
.The exclusivity of the orchid is experienced as soon as one enters the atrium
that is serenaded by a 70foot indoor waterfall. The beautiful orchids growing
there give you a feel of the truly orchid experience. TM 14 international
awards and the recent ISO 14001 certification reiterate the efforts of the
orchid of being a pioneer amongst environment friendly hotels. The orchid
focuses on creating an experience where Deluxe need not disturb, comfort
need not compromise and enjoyment need not be insensitive.
Waste of “THE ORCHID”
It produces on an average approximately 370 kg of natural wet kitchen waste
everyday. This is in addition to the glass, paper, plastic, metal and other
synthetic dry waste, which is very meticulously separated within the hotel in
separate bins at the source itself. A recycler then takes it away.
Decomposition of the natural waste has to be done in a very limited space.
Thus they have constructed vermicompost units containing processed soil
and installed the shredder cum compactor. This helps fast action as the size
of the waste is first reduced in the shredder and also reduces acidy in the
waste. On any average day the kitchen waste generated can be classified in
to the following broad categories:
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Particulars Weight
1) Cooked Food 180 kg
2) Raw Meat And Bones 60 kg
3) Fruit waste 40 kg
4) Green & Other Vegetables 60 kg
5) Bakery Products 30kg
Total 370 kg
Particulars
1. Joked food
2. Raw meat et: bones
3. 3X fruit waste
4. Green B: other vegetables
5. Bakery products
Weight: 180kg 60 kg 40kg 60kg 30kg 370_J
Waste Reduction Recycling Programmer
Newspapers are delivered to guest on request after they have given
their consent at the time of checking. This programmer has indicated
that only 50% of our guest prefers a newspaper in their rooms.
A recycling bin is also placed in all guestrooms for r guests to
participate in the recycling program.
Fruits
At the orchid fruits are served on request so as to avoid wastage.
Carbon paper
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There is no use of carbon paper made At The Orchid Hotel, QS the
chemicals used in carbon paper. Ore toxic, which kills the microorganisms
that break down solid waste reducing the volume of waste in the landfill.
Zero garbage
The orchid in its endeavor to become Q “zero garbage” hotel has taken
various measures to reduce the waste being generated. To reinforce this we
have undertaken the project of sericulture on our hotel site. For this purpose
we have built 9 bins on site wherein all the kitchen garbage is diverted for the
process. This endeavor of ours has helped us to achieve our “zero garbage”
mission; the second benefit of this act is that we are not Adding to the waste
steam of our city. They are the first 5 star hotels in mumbai: to undertake semi
culture.
Water conservation
At the orchid they believe in the three “R” theory of reduce, reuse, and
recycle, water being one of the earth’s most precious resources and vital to
life we have tried to put this theory in practice by taking special care to
conserve this resource by employing carefully planned techniques enlisted
below, which reestablishes our belief in the above theory.
Sewage treatment plant
At the orchid they recycle the wastewater. With the latest technology,
wastewater is treated and then reused in areas like air conditioning ft
gardening.
ENVIRONMENTAL EFFORTS MADE BY THE ORCHID
Plastic bags menace
Plastic bags of 20 microns and less were creating a serious environmental
hazard in the city of mumbai. It was found that these plastics bags, which
were ubiquitous in mumbai, were choking the drains all over the city. This led
70
to serious flooding problems during the monsoons, and major parts of the city
would remain submerged for days on end due to this. The municipal
corporation of greater mumbai had from 15th august 2000 banned the use of
plastics bags less than 20 microns. The orchid supported the MCGM by:
Sponsoring the street plays arranged by them by creating
Environmental Awareness.
Sponsoring the cost of distribution/courier charges of 1000 nos. of
invitations for their Seminar On Thin Plastic Bags, Environment & Role
Of Educational Institutions.
Distributing 1000 cloth bags to the officials of the Municipal Corporation
Of Greater Mumbai on 23rd September 2000.
Plastic Bag- Collection Drive Cum Competition
The Orchid- An Ecotel, supporting the noble cause of the Municipal
Corporation’s ban on plastic bag had launched an inter- school competition
wherein the schools would collect the old plastic bags from their homes and
neighborhoods in return of which they would give them a cloth bag. The
school collecting the highest number of bags per child was to be invited to
The Orchid for felicitation followed by dinner.
The students took the campaign out to their homes and neighborhoods and
as a result the awareness about the, effects of plastic was spread by word of
mouth to 7.8 million citizens of Mumbai. As the campaign made news
headlines and was also actively carried by the television news channels the
effect of the reach cannot be imagined! Thus a small effort on their part
actually made big strides for the environment.
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The result
43 schools covering 80,000 students, collected 750 kgs of used plastic bags
(approximately 3000 plastic bags of 20 microns and below make 1 kg
Today, mumbai has 4.5 million square feet less of thin plastic to worry about!
Energy Saving Programmer
The orchid does not have switches made of plastic, which are harmful to the
Environment, in any of their rooms. Instead they have a Master Control Panel,
which is made of reprocessed plastic.
Within the room the guest can participate in the energy saving programmed
by pressing the ECO BUTTON on the Master Control Panel placed alongside
the bed. When the guest presses this button the air- conditioned temperature
increases by 2 degrees making the room a little warmer. The Building
Management System showing us the number of guest’s participating in this
programmer brings down this information.
At the Orchid energy efficient PL lamps are used which provides as much
light as ordinary bulbs, yet consume substantially less energy. To cite an
example: using a W PL lamp will give an equal amount of brightness as a
60W incandescent bulb whereas the foriner (PL lamp) will have a power
consumption of 25% the latter will have a power consumption of 100% what’s
more since your room lights come in only when your key card is inserted
there’s no chance that lights or the air conditioner remains on once you leave
the room.
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73
CASE STUDY-
RASTRIYA CHEMICAL AND FERTILISER LTD. (RCF).
Rashtriya chemicals & Fertilizers Ltd (RCF) is one of the largest fertilizer and
chemical company in Asia, with 20 operating plants at Trombay and 5 large
plants at its Thal Fertilizer unit. The Rashtriya chemicals and fertilizer limited
(RCF) was incorporated on 6th march 1978. RCF commenced operations in
1978, after the reorganization of the erstwhile Fertilizer Corporation of India.
Today, it is the largest producer of fertilizer and chemicals in the public as well
as the private sectors in India. With the setting up of the gas based mega
fertilizer unit at Thal in Raigad district, RCF became the first company to
import the latest generation fertilizer technology in to India. RCF as a
corporate body and government of India undertaking is responsible to the
people of India, the government as owner, as government, as consumers, as
employees, as the society at large. The company is simultaneously
accountable to all these agencies that have a stake in its successful
operation, growth and welfare.
Rashtriya chemical and fertilizer limited (RCF) commits to produce and
market fertilizer and industrial chemical of excellent quality by using modern
and eco friendly technology to meet of customer. RCF also endeavor to fulfill
this obligation to society at large by continuous improvement and growth.
\They says that they are very much concern about their employees. The
company believes that the employees are the most important assets and
offers them satisfying, challenging and growth –oriented careers rather then
mere employment. As a model employer, RCF provides a full range of
amenities to its employees. RCF provides them many facilities like housing,
health care, education, sports and personality development.
RCF has a full range product line in fertilizers series of vital industrial
chemicals. In chemicals fertilizer they have ujjwala (urea), complex fertilizers,
suphala (15:15:15), suphala (20:20:20). In bio-fertilizers line they have biola,
nimola, microla. They use ammonia, nitric acid, sulfuric acid, phosphoric acid
and ammonium nitrate as intermediates. Carbon dioxide, calcium carbonate,
gypsum, hydrofluorosilisic acid are bi-product of RCF. And industrial products
74
are methanol, methylamines, conc. nitric acid, ammonium bicarbonate,
sodium nitrate, and dimethyl formamide
WASTE MANAGEMENT POLICIES OF RCF
RCF manufactures 25 items. They manufacture in a bulk quantity i.e., 21
lakhs tonnes of fertilizers every year. As per the information given by Mr.
Hemant Kulkarni if capacity utilization increases there is a loss to the
company. Therefore to reduce this loss the RCF has systems ISO 9001- 2001
and ISO 14000.It has also one system to reduce these loses i.e., OHSAS
18000 (Occupation Health & Safety Production This company runs on
international standard in terms of Quality, Environmental Management And
Occupational Health.
The objectives of these standards are:
To ensure production level is high
To ensure that there is safe production in the organization and to help
the health of the workers of the organization.
To reduce waste generation of the company.
THE waste that are generally managed by the company :
Solid waste
The company with the help of the international standards manages solid
waste because any loss is loss to the company. The waste that is generated
by the company is again converted or recycled or reused. Out of the 100%
material used for production process 80% is converted in to final output and
20% which is left as waste is again processed. And after the waste is
reprocessed again if some waste is left then the company sells it
Liquid waste
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For the management of liquid waste rcf company is having efficient treatment
plant. The company generates is put in to these plants. Then the solid that are
present in this liquid are separated with the help of this plant. Absolute wastes
are treated and send into deep area by using international and national
norms.
Air Waste:
There is no wastage through air.
Sewage Treatment
At RCF to manage the waste water the company also buys sewage treatment
plant from BMC. This sewage is treated and converted into quality water and
the company uses the same.
ICICI BANK GOING GREEN INITIATIVE
CICI Bank’s Green initiatives aimed at customers are driven by the objective
of collaborating with each of our customers and making ‘Green’ a part of all
our lives. These initiatives range from Green offerings/ incentives, Green
engagement to Green communication to our customers.
Green Products & Services
* ‘Instabanking’ - It is the platform that brings together all our alternate
channels under one umbrella and gives customers the convenience of
banking anytime anywhere through Internet banking, i-Mobile banking, IVR
Banking. This reduces the carbon footprint of the customers by ensuring they
do not have to resort to physical statements or travel to their branches.
* Vehicle Finance- As an initiative towards more environment friendly way
of life, Auto loans offers you 50% waiver on processing fee on car models
which uses alternate mode of energy. The models identified for the purpose
are, Maruti's LPG version of Maruti 800, Omni and Versa, Hyundai's Santro
Eco, Civic Hybrid of Honda, Reva electric cars, Tata Indica CNG and
Mahindra Logan CNG versions.
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Each car that hits the road impacts the environment...make an informed
choice for a better earth.
* Home Finance- ICICI Home Finance offers reduced processing fees to
customers who purchase homes in ‘Leadership in Energy and Environmental
Design’ (LEED) certified buildings.
Green Engagements
ICICI Bank has conducted Green themed events with our customers
during Diwali to build awareness about the environment amongst
employees and customers alike. During this event Money Plants were
presented to our customers as token of prosperity and also as a token
of our collective responsibility in building a greener society.
In line with the ‘Go Green’ commitment, ICICI Bank has partnered the
Green themed CNBC- Overdrive Auto Awards this year.
'Earth Hour' - In furtherance of its ‘Green’ commitment, ICICI Bank
pledged its support to the world’s largest global climate change event-
the 'Earth Hour'. On Saturday- March 28, 2009, ICICI Bank switched off
all lights in its premises, Branches and ATMs between 8.30 PM- 9.30
PM- the designated ‘Earth Hour’. We are sure, one hour of darkness
will help bring to light one of our generation's largest challenges
"Climate Change".
World Environment Day- June 5, 2009-ICICI Bank celebrated the
World Environment Day on June 5, 2009. To mark the occasion,
branches across the country undertook a number of activities.
Branches along with their customers took the green pledge through
signature campaigns, planted and distributed saplings, conducted
drawing and painting competition for children, conducted cycle rallies.
Employees at the ICICI Bank Towers, BKC, took the Green pledge by
wearing the Green ribbon and endorsing the Green cause. As a
gesture of its commitment towards the environment, ICICI Bank also
switched off lights in its offices, Branches and ATMs on Friday- June 5,
2009- 8.30 PM- 9.30 PM.
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ICICI Bank, Lucknow also celebrated the 'Environment Week' from
June 1- 8, 2009 wherein ICICI Bank further strengthened its
commitment to the environment by planting a tree for every new
account opened during this period.
78
Green Communication
ICICI Bank has extensively capitalized on the existing internal media-
statements, inserts, Credit Card Charge slips- to reach out to the customers
and seek their collaboration in the ‘Go Green’ movement. The communication
on Online Bill pay, Online Funds Transfer and Subscribing to e-statements
are aimed at migrating customers to ‘paperless’ and ‘commute-free’ mode of
conducting some of their banking transactions.
Green Partners
ICICI Bank is working on and looking forward to partnerships with national
and international ‘Green’ organisations and NGOs. In the past ICICI Bank has
been associated with BNHS in the past and has also partnered the Green
Governance Awards set up by BNHS to recognise and appreciate the
participant organisation's efforts beyond meeting the statutory compliance for
protection and conservation of the environment.
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LIMITATIONS
This is stick with the one organization report and may be due to
of very busy schedule of work employee many not take very
appropriate decision when time of filling the questionnaire
Also for future events disclosure company are not sharing
more internal information either on internet or ready to give.
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RECOMMENDATIONS AND CONCLUSION
CONCLUSION
As India is a very Fast Developing Country. There is a heavy development in
all Indian Industrial Sectors in all spheres. This development had put our India
in the place of 5th Biggest Energy Consumer in the World & is expected to
take the 3rd place in the world for the Biggest Energy Consumer by 2030,
which would be a very serious problem for India, so far as Energy
consumption is concerned. Environmental management is not the
conservation of the environment solely for the environment's sake, but rather
the conservation of the environment for humankind's sake.
BASF believes in the concept of Sustainable Development. Sustainable
development is a pattern of resource use that aims to meet human needs
while preserving the environment so that these needs can be met not only in
the present, but in the indefinite future. It is the development that meets the
needs of the present without compromising the ability of future generations to
meet their own needs. BASF has again been included in the prestigious
Climate Leadership Index of companies that address the challenges of
climate change and reducing greenhouse gases.
Lastly, Environment is a GIFT OF NATURE.........Let us preserve it.
81
RECOMMENDATION
Environmental response of business units refers to their compliance with
existing norms and involvement in voluntary schemes that go beyond existing
norms or implement environmental management programs. Other responses
could be investment decisions for pollution prevention strategies, and/or
adopting newer and cleaner technologies. Business units, depending on the
objective function that they are seeking to maximise, could decide to obstruct,
collaborate or collude with regulators and in so doing seek to influence both
the process of policy making and the policy itself.
This thesis looks at how Indian firms in the steel and paper industry have
sought to integrate environmental factors in economic decision making. It
attempts to explore how the environmental strategies of these firms emerged
over time and give feasible interpretations of why the strategies took the
shape they did. Four firms have been studied, two in the public sector and
two in the private sector, in each industry.
A framework for analyzing corporate environmental decisions is first
developed, after which information from in depth case studies is used to
understand the behaviour of different firms. Given that environmental
initiatives are an outcome of rational decision making processes coupled with
firm history and their institutional context, case studies are helpful in
understanding how environmental issues are dealt with in business
82
organizations. The aim of this thesis is to show how technology choices are
an outcome of an interaction between the institutional context within which a
firm operates, firm level capabilities and socio-economic, domestic, and
international policies. It is hoped that this would equip policymakers with an
improved understanding of how best to deal with issues related to
environmental compliance.
This thesis highlights the fact that when faced with changing environmental
scenarios, firms react in ways other than revising production targets. While
regulatory pressure evokes a reactive response, social pressure or
enlightened self interest elicits proactive or innovative responses from firms.
Judicial activism, competitive market conditions, global integration and
appropriate resource pricing encourage environment friendly firm behaviour.
Lower resource and pollution intensity are associated with firms with larger
operating scales and/or firms located in areas which have a more
environmentally aware and active community. Although environmental
activity and production activity are linked, the link is weak and production
activity is given priority over environmental activity. Nevertheless, all major
improvements in environmental performance are related to large investments
in new technologies, driven by profits. Moreover, for sustainable development
environment management departments have to evolve from engaging only in
compliance related activity to integrating environmental concerns into the
firm’s production activity.
Between the Indian Steel and Paper industry, our studies indicate that the
former is ahead with respect to benchmarking with the best global
environment management practices. For the steel industry the constraining
parameter for reducing pollution intensity is the vintage of the plant, rather
than its technology, which has undergone/ is undergoing some modernisation
over time. Obsolete technology is the problem plaguing the paper industry,
perhaps because of shallower pockets and smaller scales of operation. The
way an industry is organised within the institutional context can affect the rate
of diffusion of environmental management practices. While firms in the Indian
83
steel sector are more aware of each other’s practices, firms in the paper
industry have an insulated existence.
Regulators can encourage better environment management practices by
forming partnerships with industry, using graded penalties, enhancing existing
market based incentives like water cess, encouraging industrial ecology
practices and issuing specific standards for firms depending on the carrying
capacity of the area in which it operates. The government can promote
environment friendly behaviour by promoting industry associations and
research laboratories to develop sustainable technologies and solutions to
environmental problems, ensure capital availability for environmental projects,
guiding industrial philanthropic activity, and work towards creation of
environmental value.
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BIBLIOGRAPHY
RESEARCH PAPERS
Google Search Engine.
Yahoo Search Engine.
The official website of BASF – The Chemical Company i.e.
www.basf.com
Wikipedia ( The Internet Encyclopedia)
pib.nic.in
indiabudget.nic.in