Climate Change: Role of Manufacturing Goods and What can CSR do about It?

As discussed in the last article, Power Generation happens to the largest contributor to greenhouse effect. This is closely followed by manufacturing industry which is also one of the largest contributors to greenhouse gas emissions worldwide. 

Recapping Greenhouse Effect in a different manner, the surface of the Earth absorbs just under half of the sun’s energy, while the atmosphere absorbs 23 per cent, and the rest is reflected into space. Natural processes ensure that the amount of incoming and outgoing energy is equal, keeping the planet’s temperature stable but due to increase in emission greenhouse gases (GHGs), this heat is trapped in the atmosphere and is not able to escape the planet. This energy returns to the surface, where it is reabsorbed. This results in more energy entering the earth than exiting the planet, resulting in increase in surface temperatures. 

Greenhouse gases emitted during manufacturing processes include carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O) as compared to CO2 produced by generation of electricity by coal. How is this important? Measured over 20 years Methane is 80 times more potent than CO2 in causing global warming, while Nitrous Oxide is 280 times more potent. CO2 stays in the atmosphere for up to 1,000 years, methane for around a decade, and nitrous oxide for approximately 120 years. 

How are these gases produced? The production of goods (manufacturing) involves processes like use of electricity, raw material extraction and processing, industrial processes which produce carbon di oxide (example: cement), transportation and distribution. Each one of these contributing to the overall emissions associated with a product. 

To assess the greenhouse gas emissions from manufacturing, it’s essential to consider the entire life cycle of a product, known as a life cycle assessment (LCA). LCAs provide a comprehensive view of the environmental impact of a product, including emissions associated with raw material extraction, production, transportation, use, and end-of-life disposal. 

What is the situation in India? 

In terms of contribution in terms of percentage:  The energy sector is the largest emitter, accounting for 37% of India’s GHG emissions, followed by the agricultural sector at 21%, manufacturing at 17%. and the transportation sector at 9%. 

This will actually make you wonder as to why there is so much emphasis on Electric Vehicles whereas larger contributions of GHGs are coming from elsewhere? 

We also need to remember the indirect contribution of Manufacturing to Greenhouse emissions as 40% of India’s total energy consumption is utilized by manufacturing which is indirectly contributing toe CO2 production by generation of electricity. 

But there is hope. 

We have the industry-led, voluntary program to measure and report GHG Emissions which has been launched by WRI India, TERI and CII called the India Greenhouse Gas Program (India GHG Program), a voluntary initiative to standardize the measurement and management of GHG emissions in India. 

Founding member companies of this initiative include Godrej & Boyce, HCC Limited, Ford Motor Company (India), Mahindra Sanyo Steel, Jet Airways, Tata Teleservices, Bayer Group, Infosys Technologies, Tata Chemicals, NTPC, ITC, Yes Bank, Cummins India, Forbes Marshall, JK Tyres, Shree Cements, United Technologies, Ambuja Cement and GAIL. This program has been made possible with the support from Shakti Sustainable Energy Foundation, Pirojsha Godrej Foundation and Federal Ministry of Environment, Nature Conservation & Nuclear Safety, Germany. 

What can manufacturers do reduce greenhouse gas emissions? 

As you are now aware 40% of total energy produced is used by manufacturing. Manufacturing units can be made energy efficient by conducting energy audits to recognize areas of improvement. Investing in energy efficient technologies and equipment and optimizing the manufacturing processes can reduce energy consumption.  Apart from the same, supply chain optimization, adoption of green technologies for transportation, and sustainable manufacturing practices can also help in reducing GHGs. Seeking and achieving certifications such as ISO 14001 will also demonstrate commitment to environmental responsibility.

How can CSR help manufacturing units to achieve Net Zero Target? 

By sponsoring renewable energy sources like Solar, Wind for communities surrounding the plants. 

Encouraging units which recycle materials to reduce environmental impact of raw material extraction and use this extracted material in production processes. 

Implement circular economy in areas around the plant to reduce waste produced by manufacturing processes. 

Explore partnerships with organizations specializing in carbon offset programs. 

Educate and engage employees and communities in sustainable practices to create a culture of environmental responsibility. 

Invest in research and development by investing in university programs to discover and implement innovative technologies that can further reduce emissions. 

Create industry collaboratives through CSR to share best practices in sustainability and for reducing carbon emissions. 

By adopting a combination of these strategies, the manufacturing industry can significantly contribute to reducing greenhouse gas emissions and move towards a more sustainable and environmentally friendly future.