Sustainability has emerged as a transformative catalyst, revolutionizing the way businesses and industries operate, especially in the hydrocarbon to downstream sectors. It goes beyond simple efforts to improve manufacturing efficiency and reduce carbon emissions; instead, it presents a compelling chance to capitalize on novel business prospects.
Yet, achieving tangible outcomes requires a shift in company culture and structure, which necessitates a corresponding change in mindsets. This transformation can be accomplished when top-level management wholeheartedly embraces sustainability as an integral part of their core responsibilities.
To understand the scope and importance of sustainability and how it is driving technological and attitudinal changes in industry Chemical Industry Digest quizzed N B Godrej, Chairman and Managing Director of Godrej Industries Ltd. and Chairman of Godrej Agrovet Ltd., and Co-Chair of Godrej Good & Green Governing Council whose views are presented here.
- To what extent has your company taken up sustainability as a top management responsibility and how do you ensure that your workforce is sensitised on this? Sustainability is a new philosophy along with deep rooted technological and attitudinal changes required. What about the matching changes needed in the culture of the corporate organisation? Also from your interactions, how seriously do you feel the industry overall has taken it up?
- At Godrej Industries, we believe that sustainability is not just a trend but a long-term commitment that requires cultural transformation
- To ensure that our workforce is sensitised to sustainability, we have implemented various initiatives. We conduct regular training and awareness programs to educate employees about the importance of sustainability and its impact on the environment, society, and our business. These programmes cover topics such as resource efficiency, waste reduction, energy conservation, and responsible supply chain management. We also encourage employee participation in sustainability initiatives and provide platforms for them to contribute their ideas and suggestions
- Sustainability is an important challenge for businesses and communities, and addressing climate change challenges is critical. Corporates should focus on decreasing their carbon footprint, investing in renewable energy, and implementing sustainable practices in their operations and supply chains to handle climate-related problems. Corporates should also contribute to environmental protection by decreasing waste, conserving natural resources, and fostering biodiversity. They should also invest in nature-based climate change solutions such as reforestation, wetlands conservation, and sustainable agriculture. Businesses can not only safeguard the environment but also create long-term value for their stakeholders and contribute to the sustainable development of society by implementing sustainable practices.
- The scope and definition of sustainability varies from company to company. For some planting a ring of trees around their plants is a sustainable action. For some others changes in chemistries and changes in the range of products itself. For some only reduction in emissions.
What all constitutes and comprises the sustainability suite of actions? What is your definition of sustainability?
- For us, at Godrej, sustainability is building an environmentally conscious business, imbibing environmental management concepts into our growth strategy and manufacturing process. We continue to find and apply measures that can reduce and optimise our resource utilisation and reduce emissions. We have a relentless focus on improving productivity, energy efficiency and maximising sustainability at our manufacturing facilities through usage of state-of-the-art technologies and processes
- Godrej Industries defines sustainability as creating a more employable and environmentally friendly world, putting people and the planet ahead of profit.
Mr N B Godrej with his love for poetry has explained ‘Sustainability’ in all its bounteous lyrical detail.
Sustainability
All industries should play a role
In the carbon neutral goal.
GHG emissions should be reduced
More green energy should be produced.
And so without partiality
Our goal for all’s neutrality.
Whether water, carbon or solid waste
And very soon we will make haste
To make our net emissions zero.
Will that make the group a hero?
In 2010 the goal looked tall
But we took a reasoned call
Technology would save the day.
So far it has turned out that way.
To achieve these goals we will strive
To do it all by 2035.
As technology takes a leap
Green energy gets very cheap.
Keen observers quickly saw
That Solar also tracks Moore’s law.
Whether groundnut shell or bagasse
Our India’s full of biomass.
And bamboo now is on the way.
A major role it can play.
At first we thought we’d have to spend
But that’s not true, for in the end,
The more we thought and the more we slaved
We did invest but we also saved.
And solar is still getting cheaper
And as we start digging deeper
In India it will hit the goal
Of being cheaper than even coal
In just a handful of years.
Already we and our peers
Are sourcing solar electricity
At lower rates than from the utility.
For quite some time we’ve been extorted
As their finances aren’t still sorted.
A silver lining can be seen,
Since it incentivises green.
Offsets help elimination
And rural electrification
With distributed solar power
Is now the need of the hour.
Our cost of water is not so high
But yet we do attempt to try
To reduce our water consumption
But all the same it’s a safe assumption
Our water use won’t disappear
And so to be neutral I fear
We will have to mitigate.
Though fortunately I can state
That developing a watershed
Doesn’t cost much and instead
Our agribusiness can benefit.
The government will do its bit
But where it fails we’ll fill the breach
And hopefully we will reach
Many farmers on the cheap
But the benefits that we reap
Will compensate for the cost
And once again nothing’s lost.
There are many paths that we can see
For achieving Carbon neutrality.
But the cheapest way is certainly
Through energy efficiency.
Real interest rates are rather low
And high returns quickly flow
From any energy saving device.
For business this is very nice.
Not only are returns quite brisk,
There’s also very little risk.
In India mandated CSR
Can help us go very far.
Multiple benefits is what one sees
With water projects or growing trees.
Good livelihoods are created
Our carbon emissions are abated.
Trees planted at a river’s source
Maintain the flow throughout its course.
So many benefits we can see:
The preservation of biodiversity,
Different species can be tried.
Useful products can be supplied
Like biomass or edible fruits
And yet the trunk and the roots
Can sequester carbon, clean the air,
A win-win that is very fair.
So while we decarbonise
Why not also monetise.
So never fall for either or.
Our hearts and minds demand much more.
- There are multiple ways to be on the road to sustainability: circular manufacturing, revisiting existing chemistries to manufacture greener products, shifting to renewables/biomass, and so on. What are your suggestions? Practice all of it, some of it, or step by step? How should a manufacturing company go about this? And in what stages?
- Environmental sustainability is a key part of our manufacturing process. At Godrej, we have a vision beyond business, to build a more inclusive and greener world. We have aspired to create a more employable workforce, build a greener world, and innovate for ‘good’ and ‘green’ products.
- We have based our sustainability goals on shared value, addressing critical socio-economic and environmental needs of the society by leveraging our business expertise.
- Our objective for 2025 is to craft more prominent and bolder sustainability goals that align with our businesses. We are continuing on our journey to build a more reasonable and greener world by focusing on people, communities, and stakeholders. Emphasis areas are as follows:
- Empower communities with equipping skills
- Influence sustainable consumption
- Improve Health and Well-being
- Lead sustainability actions
We also make efforts to reduce our plastic use by producing concentrated products and ensuring that most of the plastic we use is recycled or repurposed.
- It has also been articulated by experts that moving on the road to sustainability will also throw up many new business opportunities. What is your experience? And what are the kinds of opportunities possible?
- India’s clean energy transition is rapidly underway, benefiting the entire world and the country is setting the bar for a novel approach to economic growth that might sidestep the carbon-intensive strategies many nations have previously adopted and serve as a model for other emerging markets
- The adoption of Green Open Access Rules will allow businesses and industries to produce and obtain energy for their own needs. In 2023, we can expect higher levels of technology development, deeper engagement between consumers and generators of renewable energy, and higher levels of investment in the nation provided that the government continues to provide support and that underlying long-term market drivers remain in place. Time of day pricing of electricity will effectively manage demand and reduce the need for storage of electricity.
- The most economical way of way of carbon sequestration is growing trees. If these trees produce food and biomass the net cost is zero or negative and yet the trunk and roots continue to sequester carbon. Godrej Agrovet is the largest producer of Palm Oil in India. We plan rapid expansion based on the Government’s enlightened policy. The farmers get a good income and a lot of carbon gets sequestered as the trees grow. Palm Oil and Palm Kernel Oil can be used for food. Palm kernel meal can be used for animal feed. The byproducts of palm oil refining Palm Fatty Acid Distillate (PFAD) and Palm Kernel Fatty Acid Distillate (PKFAD) are used to produce soap and oleo chemicals such as fatty acids, glycerin and fatty alcohols that are by their very nature green. In areas where oil palm is grown we have noticed the rainfall is steadier. It is well known that trees bring rain. The oil palm needs water to grow but thanks to drip irrigation the requirement is reduced. We are exploring bamboo as a source of biomass. We can replace fossil fuels and yet the roots continue to sequester carbon even though the biomass is harvested and used. Other trees that produce fruits or edible seeds can also be grown and we are studying these as well.
- This brings us to the very important role of R & D and innovation. To what extent is your R & D helping you in achieving your sustainability goals? Shouldn’t R & D be the focus of top management attention? Any notable R & D achievements (one or two) of your company in sustainability that could be mentioned?
- At Godrej, we look at products from both ‘good’ and ‘green’ lenses. A ‘good’ product/service being one that addresses a critical issue for marginalised sections of the society such as health, hygiene, water, sanitation, housing, education or livelihoods. A ‘green’ product as that which reduces energy, greenhouse gas emissions, water or material consumption, eliminates toxic materials or uses recyclable, renewable and/or natural material.
- We developed a phosphate-free formulation for our pH neutral liquid detergent, Ezee. Phosphates disturb the ecosystem balance by promoting large overgrowth of algae in lakes. Our formulation does not cause any adverse reaction in the ecosystem.
- Godrej Magic’ hand-wash is an innovative, sustainable new solution to cleaner hands. It is a first-of-its-kind powder to liquid hand-wash. It is also an environmentally sustainable as it uses half of the plastic and 1/4th less paper consumption in packaging, and 1/4th less fuel consumption for transporting.
- Our agricultural and chemical research also promotes sustainability. We use the principles of green chemistry to develop better synthetic routes with less wastage, lower energy and lower carbon footprint.. As a result several of our factories are zero discharge and we have greatly reduced our solid waste. We always try to turn waste into gold and all it needs is deep thought and research. These initiatives require investment but the returns are very high.
- Our Oleochemical R&D developed a powerful surfactant sophorolipid through a bio fermentation process. It has antibacterial and antiviral properties as well. The raw material is vegetable oil and hence the process is very green.
