|
Environment
Contribute to Competitive Advantage
By A K Mukherjee
Today's one of the
important topic is "Does good Environment performance contribute to competitive
advantage". There is a growing realisation that to meet rising customer's
expectations amidst international competitions while complying with regulatory
needs and societal obligations, keeping pace of development, in harmony
with environment, is probably the solution. This is possible through adopting
the path of sustainable development.
Sustainable Development
It is a process
of change in which the exploitation of resources, the direction of investments,
the orientation of technological developments and institutional changes
are all in synergy leading to enhancement of both current and future potential
to meet human needs and aspirations. To translate this intention to action
we need to integrate business operation with environmental aspects and
the impacts. In simple terms we have It to be conscious about the following
Resource
-
Kind of resource we use. Reserve capacity,
consumption / depletion rate, scarce / plenty.
-
If it is a mineral, iron ore, dolomite,
limestone, bauxite etc., methods used for its extraction.
-
Ore overburden ratio and its dumping,
handling of fines, land use pattern, consumption of water, energy, amount
of degradation of eco-system viz. land, water bodies, different species
in forest land etc.
Preservation
of forest land and regeneration of forest coverage which act as "sink"
for absorbing green house gases like CO1 and supplies oxygen, protects
soil erosion, provides food, fodder, fuel besides adding value to the medicinal
plants. Proper resource accounting will enable the society to adopt the
right option between alternatives such as exploitation vis-a-vis preservation
of the sensitive eco-system, or concurrent exploitation and regeneration
of eco-system to the extent possible.
It is very essential
that before starting a project, Environment Impact! Assessment (EIA) and
Environment Management Plan (EMP) must be made. This study will indicate
the following:
-
Location
-
General Topography
-
Population
-
Linkages, road, rail, water, etc.
-
Climate
-
Resources used
-
Process adopted
-
Emissions
-
Energy
-
Water
-
Soil
-
Waste generated, hazardous/ non hazardous
and their management through reduction, reuse, recycle etc.
-
Mitigation measures suggested with alternative
methods, land use pattern probable degradation of environment and their
restoration regeneration.
-
Risk Management and disaster management
plans
Reports with
proper documents should have approval of regulatory agencies, before starting
the project.
Process
During operation
of the process, continuous improvement of environmental parameters with
pre determined values and its conformance with regulatory needs must be
assessed by conducting environmental auditing. This is a management tool
comprising a systematic, documented, periodic and objective evaluation
of how well environmental organisation, management systems and equipment
are performing with the aim of:
· facilitating management
control of environmental practices and
· compliance with company
policies, including meeting the regulatory requirements.
It may be noted
that the process of auditing may be an internal auditing at periodic interval
and should be taken as one of the agenda in the industrial management,
irrespective of the size of the company.
Environmental Audit
Environmental Auditing must be conducted
in three distinct phases:
· Planning or pre-audit
activities
· Action or site activities
· Post audit activities or
follow up
In planning or pre-audit activities
· set objectives
and scopes
· select audit team
· prepare audit plan
· schedule site activities
In action or site activities
· opening meeting
· site inspection
· data gathering
· verification
· evaluation
· close out meeting
Follow up or post audit activities
· report
· corrective action plan
· develop corporate environmental
strategy
· decide on timing and next
audit
Audit report must highlight achievement
of a company along with shortfall and non-performances.
Advantages or an Environmental Audit
-
Assesses company's environmental performance
-
Provides baseline for monitoring future
performance
-
Highlights areas of concern
-
Highlights areas of environmental success
-
Identifies potential cost savings
-
Reduces risk of criminal and civil liability
-
Keeps company ahead of legislation
-
Improves dialogue with regulatory authorities
-
Increases employee awareness
-
Evaluates work force training effectiveness
-
Improves public relation
-
Improves environment
Life Cycle Assessment
Another important management tool
used for appraising and quantifying the total environmental impact of products
or activities over their life from planning to disposal i.e. from cradle
to grave, is known as Life Cycle Assessment (LCA). It has four complimentary
components:
· Goal identification
and scooping
· Inventory analysis
· Impact analysis
· Improvement analysis
Goal should be specified in terms
of:
· reasons for carrying
out the LCA
· the intended use of the
results
· the intended audience
In the scope of product life
cycle from planning through production, distribution and packaging, utilisation
to disposal items to be carried at each stage of life cycle are:
· Natural resource
consumption rate of depletion, reserve capacity etc.
· Energy consumption
· Water contamination
· Land use pattern and degradation
· Air emissions
· Water contamination
· Noise
· Waste generation and overall
impact on eco-restoration.
Having made
an inventory analysis involving data collection for each element within
a system boundary, classification, and valuation is done in Life Cycle
Impact Analysis.
Classification
Grouping together
the inventory parameters into a number of impact categories such
as resource depletion, ecological and health pacts relationship may be
drawn for specific impact categories such as global warming, acid rains,
etc.
Characterisation
Acquisition and
interpretation of the relevant physical, chemical, biological and toxicological
environment characteristics is conducted to know the impacts associated
with and inventory parameter.
Valuation
It is a subjective process where
results of characterisation are compared.
To quantify environmental
aspects, technologies like process flow diagram, mass balance and identification
waste streams are used where in any unit operation, mass of the input is
balanced with mass of output.
We may take an example.
While trying to eradicate vehicular pollution through various alternative
ways application of LCA gives us following options:
· Lead free petrol
with catalytic converter, usage of methanol etc.
· Fuel cell/Solar battery
· LPG/Hydrogen etc. ,
· Reduction of weight of
the vehicle maintaining its strength, Properties, corrosion resistance,
durability, formability, weldibility etc.
Comparison between
steel, aluminium and plastic, steel has a better competitive edge because
of 100% recyclability, less energy consumption viz. 8.2 Gcal/Tonne of crude
steel against 80 Gcal/Tonne in aluminium and 24.3 Gcal/Tonne in case of
plastic. Though steel is preferred for above reasons, but its reduction
of weight gained prominence. This massage to the steel manufacturer to
development of ultra light steel auto body (ULSAB) which made it possible
to reduce the weight of a standard car from 320 Kg to 250 Kg, reduction
of 70 Kg. This provides customer satisfaction, eco friendliness and
economy.
Clean Technology
We will quickly
discuss about the technology which is environmentally benign and known
as clean technology which attacks the problem at the source and different
from clean up technology dealing with end of pipe treatment. It is defined
as continuous application of an integrated preventive environment strategy
to processes and products so as to reduce risks to human and environment.
For process
This means conserving
raw material and energy, eliminating toxic raw materials and reducing the
quantity and toxicity of all emissions and wastes before they leave a process.
For products
It means reduction
of impacts along the entire product life cycle from raw material extraction
to disposal known as cradle to grave concept which we have already discussed.
Clean UP Production/Cleaner Production
Clean up production
looks apparently cheaper but really does not solve the problem and cleaner
production has been found to be eco efficient and economic in the long
run. But its investment cost is higher and cost of capital being very high
in our country, its implementation is posing a problem.
Let us cite an example;
though steel is considered eco-friendly because of its 100% recyclability,
its requirement of raw material, energy, water, generation of waste and
emissions are quite high for scale operation and that is why steel industry
is considered as one of the polluting industries. Roughly to produce 1
T of steel it generates 1.1 T of waste.
In SAIL we have attempted partial
conversion from end of pipe to clean technology such as:
-
Ore beneficiation and eco-restoration
of degraded lands
-
Coke ovens from 4m tall battery to 7m
tall battery
-
Blending of coal with higher imported
% low ash, high V M coal
-
Bell less top, higher blast temperature
-
Coal dust injection
-
Open hearth BOF Continuous Casting
-
More thrust is required on effective
utilisation of waste heat, introduction of compact mill, etc. to produce
contemporary products at competitive prices to ensure sustained market
prominence. This issue is being considered.
In various pollution
control programmes undertaken during modernisation and special action plans
approx. Rs. 1100 Crores has been spent to meet by and large the regulatory
norms in air and water and gains obtained are as follows:
To consolidate the
gains of investment, continual improvement in technology is a must. If
the expenditure is not made on time, then cost of environmental degradation
becomes starting. As calculated by NEERI, between 1980-90 GDP growth shown
as 5.66% (Rs. 2,02,354 Crores) becomes negative when degradation cost is
considered and comes to 5.73% (Rs. 3,33,652 Crores).
Introduction of
clean technology with a well established Environment Management System
(EMS) and a proper attitude towards environment will protect our common
future.
EMS
This is the part
of overall management system which includes organisational structure, planning
activities, responsibilities, practices, procedures, processes and resources
for developing, implementing. achieving, reviewing and maintaining the
environmental policy. EMS in place with effective functioning will help
in accredit ion of ISO 14001. In SAIL, introduction of EMS is 3 of our
units is already in progress.
In conclusion, we
may quote Aristotle saying, "Excellence is an art won by training and habitation.
We are what we repeatedly do. Excellence is not an act but a habit". Let
us inculcate that habit of respecting nature in all human actions to protect
our common future.
|