Industrial giants pioneer ways to smarter energy

10 September 2018
  • Indian companies leading the charge ahead of the Global Climate Action Summit, San Francisco
  • Heavy-weights UltraTech Cement, Mahindra Vehicle Manufacturers Ltd, Mahindra Heavy Engines Ltd, and Godrej Industries Limited and Associate Companies (GILAC) in smart and efficient energy drive – join EP100, commit to doubling energy productivity
  • South African global integrated chemicals and energy company Sasol also joins EP100, commits to energy systems management
  • EP100 now brings together 20 companies from 12 countries, totaling over US$200bn in combined revenue – further joiners are expected this week

New Delhi: As the world looks to heavy industry to help drive emissions cuts, leading Indian companies UltraTech Cement, Mahindra Vehicle Manufacturers Ltd, Mahindra Heavy Engines Ltd, and Godrej Industries Limited and Associate Companies (GILAC) – and the South African chemical giant Sasol – have today pledged to put energy efficiency at the heart of their business growth strategies by joining EP100.

EP100 is a global collaborative initiative on energy productivity led by The Climate Group in partnership with the Alliance to Save Energy. Including the new joiners, EP100 now brings together 20 major businesses from 12 countries and seven sectors, with a combined revenue of over US$200bn, all making smarter use of energy – or ‘doing more with less’.

Today’s announcement demonstrates how Indian business is taking a leading role in stepping up corporate action on climate change around the world.

It comes just ahead of the Global Climate Action Summit in San Francisco (September 12-14), which will see scores of announcements on energy, transport, health and investment from businesses, states, regions and cities. The Summit, which aims to “Take Ambition to the Next Level”, is being co-chaired by Anand Mahindra, Chair of the Mahindra Group. The Climate Group is partnering on the Summit and leading work on Healthy Energy Systems.

Helen Clarkson, CEO, The Climate Group, who sits on the advisory group of the Summit, said: “We are excited to see such a significant group of large energy users step up their efforts on energy efficiency. Lowering energy use in sectors like auto-manufacturing, cement, and chemicals production is an ambitious task, but the figures speak for themselves – making smarter use of energy boosts the bottom line and drives down greenhouse gas emissions. These announcements will inspire many more to come on board, accelerating a clean economy.”

Reflecting on the rapid growth of EP100 in India, Jarnail Singh, India Director, The Climate Group, added: “These unprecedented announcements exemplify India’s corporate leadership on energy productivity – which fuels economic growth while driving down carbon emissions. As we optimize our energy use, the business case for renewables becomes even more evident. This paves the way for India’s long-term transition towards a cleaner and prosperous energy future.”

Business leadership in India and globally

UltraTech Cement has committed to doubling its energy productivity by 2035 (2010 baseline year). The largest manufacturer of grey cement, Ready Mix concrete (RMC) and white cement in India, and one of the leading cement producers globally, UltraTech sees the improvement of its energy performance as one of the critical levers for reducing the carbon intensity of its operations and making its business competitive. UltraTech has already invested in energy efficiency technologies across its manufacturing plants, such as cooler upgrades, calciner and burner modification, voltage variable frequency drive (VVFD), and waste heat recovery systems, lowering emissions and increasing energy security. Going forward, the company will make use of technologies including change in product mix, energy mix, digitization and carbon pricing.

K K Maheshwari, Managing Director, UltraTech Cement Limited, said: “UltraTech Cement has always been at the forefront in adopting sustainable processes in its business operations. The company has some of the best performing plants on energy metrics across the world. As a responsible organisation, we realise the need for further substantial improvements in energy productivity. Our membership of EP100 we believe will play a catalytic role in helping us accelerate towards doubling our energy productivity, which is a key strategic lever to achieve sustainable business growth.”

Mahindra Vehicle Manufacturers Ltd has today committed to doubling its energy productivity by 2040 (2015 baseline); Mahindra Heavy Engines Ltd by 2041 (2016 baseline).

Mahindra & Mahindra and Mahindra Holidays & Resorts India Ltd. are already members of EP100, having joined in 2016. Mahindra & Mahindra, a leader in the automotive and farming equipment sectors with operations spanning 21 industries in more than 100 countries, has to date invested 44.7 Rs Cr in 1,757 energy efficiency projects globally, saving 83 million KWh, 67,655 tons of carbon emissions, and 66.7 Rs Cr over the last four years.

Vijay Kalra, E.D & C.E.O., Mahindra Vehicle Manufacturers Ltd. and Chief of Manufacturing Operations, M&M, Auto Division, said: “Operating in a country like India which is energy deficient, energy security and energy cost is of vital importance for sustainable business performance. By joining the EP100 program, we demonstrate our commitment to our employees, society and nation at large. As we take aspirational targets to enhance energy productivity there will be innovation and development of new technologies that will change the way we live and work. It’s all about arriving a win-win situation for all. Be it business, employees and society at large.”

Godrej Industries Limited and Associate Companies (GILAC) has committed three of its four companies to doubling their energy productivity by 2030 (2011-12 baseline year). These are Godrej Industries Limited. (GIL) (chemicals), Godrej Consumer Products Limited (GCPL) (home care, personal care, hair care in Asia, Africa, South America) and Godrej Agrovet (animal feed, crop protection, oil palm, dairy and poultry, and processed foods (India). 

Godrej Group puts sustainability at the heart of its manufacturing process and value chain, and as such has made year on year energy savings. The conglomerate has already reduced its energy consumption by 41.8% (FY2011 baseline year), surpassing its 30% by 2020 target. To achieve this, it has invested in clean technologies such as heat pumps, micro turbines, turbo blowers and heat pipes, as well as process innovation. It has also been engaging employees to raise awareness of energy efficiency. Demonstrating the strong business case for action on energy and climate change, since FY2011, Godrej Group has invested INR 2.5 billion in environmental sustainability initiatives and saved INR 3.5 billion.

GILAC aims to extend its EP100 commitment for all its group companies in the future.

N.B. Godrej, Managing Director Godrej Industries and Chairman and Non-Executive Director of Godrej Agrovet Limited (GAVL), said: “At Godrej, sustainability is an integral part of who we are as a company and how we do business. We are actively investing in energy efficiency and our Green initiatives have huge shared value and help to make us competitive. Sustainability is ever evolving and we realize that businesses now have a larger role to play in the communities that they operate in. Low cost energy will enable us to enter new fields. We have come a long way since we started and have set evermore ambitious plans going forward.”

South Africa’s Sasol has committed to installing a smart energy management system (EnMS) within 10 years, targeting a 30% energy productivity improvement. A carbon-intensive integrated chemicals and energy company with operations in 33 countries, Sasol recognizes it has a responsibility to lower its emissions, and an opportunity to help develop viable technological solutions that address climate change while improving energy security in South Africa. The chemicals and energy giant has already invested in energy efficiency projects amounting to more than 10 million tons of carbon emissions saved annually since 2004. Examples include steam trap maintenance and waste heat recovery. Going forward, Sasol will continue developing an energy improvement roadmap for all of its operational sites, also engaging staff on operational optimization.

Bernard Klingenberg, Executive Vice President: Operations, Sasol Limited, said: “Sasol has a solid track record in promoting energy efficiency as a key business driver. We strive to continuously improve the energy efficiency of operations globally to support asset integrity. Our commitment to the global EP100 initiative is testament to our commitment.”

By setting ambitious targets and integrating energy efficiency into business strategy, EP100 members are driving clean tech innovation while delivering on emissions reduction goals.

The Climate Group estimates that if 100 companies double their energy productivity by 2030 – generating twice as much economic output for every unit of energy consumed – over 170 million metric tons of emissions could be avoided cumulatively, equivalent to taking 37 million cars off the road for a year.

ENDS

About EP100

The Climate Group’s global EP100 initiative brings together a growing group of energy-smart companies committed to doing more with less. By integrating energy efficiency into business strategy, these leading companies are driving tech innovation and improving competitiveness while delivering on emissions reduction goals – inspiring others to follow their lead. Saving energy makes business sense; our members are generating green growth and driving substantial cost savings by owning and operating energy-smart buildings, cutting out waste, and doubling their energy productivity – generating twice as much economic output for every unit of energy consumed. EP100 is led by The Climate Group in partnership with the Alliance to Save Energy as part of the We Mean Business coalition, and is delivered in association with the World Green Building Council’s Net Zero Carbon Buildings Commitment. Visit theclimategroup.org/EP100 or follow #EP100 on Twitter.

TheClimateGroup.org/EP100 | #EP100

About The Climate Group

The Climate Group’s mission is to accelerate climate action to achieve a world of under 2°C of global warming. We do this by bringing together powerful networks of business and governments that shift global markets and policies. We focus on the greatest global opportunities for change, take innovation and solutions to scale, and build ambition and pace. We are an international non-profit organization, founded in 2004, with offices in London, New Delhi and New York.Our business campaigns are brought to you as part of the We Mean Business coalition.

TheClimateGroup.org | @ClimateGroup

About the Alliance to Save Energy

Founded in 1977, the Alliance to Save Energy is a nonprofit, bipartisan alliance of business, government, environmental and consumer leaders working to expand the economy while using less energy. Our mission is to promote energy productivity worldwide – including through energy efficiency – to achieve a stronger economy, a cleaner environment and greater energy security, affordability and reliability.

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