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Essar not only recognizes its responsibility in mitigating the adverse impact of climate change, it views climate change as an opportunity to strengthen the organization in the process of instituting constructive measures in adapting to the change


January 18, 2013 Bookmark and Share  
Every Essar company undertakes studies to estimate how it can contribute to the company's efforts to reduce emissions of greenhouse gases and reduce its carbon footprint. This is a key factor in the company strategy to meet the challenges of climate change. Conducted with periodic regularity, such analyses help decide strategies to institute measures to contain emissions and mitigate climate change results.

The four-pronged strategy rests on:

  • Estimating greenhouse gas emissions and analysing the gaps in aligning existing emissions with sector-specific benchmarks and best practices.
  • Preparation of business-specific and time-bound carbon management action plan to reduce CO2 emissions.
  • Sensitizing employees on the effects of global warming and climate change.
  • Reporting the carbon performance of each Essar company as per the requirements of internationally accepted protocols and frameworks.

Within this context, each Essar company prioritises energy-efficiency and energy conservation in its efforts to mitigate and adapt to climate change.

Thus, while Essar Steel follows the World Steel Association methodology for reducing greenhouse gas emissions, Essar Oil maintains the IPIECA guidelines as well as the American Petroleum Institute: Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry.

Essar Oil is the leader in carbon management best practices in the energy sector in India. Simultaneously, the Essar Steel India plants at Hazira, Visakhapatnam and Kirandul have been recognized by the reputed Delhi-based Centre for Science and Environment (CSE) as being among the most energy efficient steel manufacturers in India. As part of its Green Rating Project (GRP), a project sponsored by the Ministry of Environment & Forest and the United Nations Development Program (UNDP), CSE analyzed 21 of the top steel makers in India to establish ‘how clean and green' their operations are. Essar Steel was ranked second; the Essar Steel Hazira plant was found to be the lowest greenhouse gas emitter.

Essar Logistics Limited (ELL) undertook a complete carbon mapping for all its significant assets — including trucks, dumpers, trailers etc. ELL also consciously and actively undertook a modal shift from road transport to the more energy-efficient railway and sea transport, allying with Essar Shipping in certain activities. Meanwhile, road transport vehicles were monitored for emission levels and overhaul measures undertaken, where necessary, to bring emission levels within standard levels.

Other Essar companies also follow globally benchmarked norms for reducing greenhouse gas emissions — Essar Power and Bander Power observe the WRI-WBCSD GHG Protocol and Essar Shipping the IPCC Guidelines for National Greenhouse Gas Inventories. The energy efficiency measures taken by the Bhander power plant at Hazira have become industry benchmarks.

In implementing the guidelines, Essar companies have taken several steps to reduce their carbon footprint. Essar Steel, for example, emits 1.67 tons of CO2 for every ton of steel produced, while the world average is 1.8 tons. Its efficiency in reusing materials is 100 per cent, while the world average is 97.7 per cent. Its water use efficiency — largely through recycling initiatives — is in line with the global average of 2.06 cubic meters of water per ton of steel produced.

Essar Shipping has implemented the Ship Energy Efficiency Management Plan (SEEMP) ahead of any mandatory regulatory requirement. It has also instituted measures to monitor emissions and introduced initiatives to reduce emissions, such as measures to improve efficiency in voyage management and weather routing. Investing in a younger fleet, it is also committed to running a fleet that meets the highest standards for safety and environment-friendly parameters.

Essar Energy follows accounting and disclosure norms for emissions that could exacerbate greenhouse gases. And Essar Projects has introduced energy-efficient measures in laying pipelines in Gujarat.

All these climate-change mitigation measures rest, emphatically, on the foundation of the research-oriented Essar's strategy involving analyses, strategic planning, employee involvement and periodic monitoring.

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