Climate change presents risks, opportunities for Indian companies

By Staff
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Mumbai, May 4 (UNI) Climate change presents various risks and opportunities for Indian companies. They have to act now to demonstrate leadership AND open doors to opportunities like Clean Development Mechanism (CDM) Paul Simpson, Chief Operating Officer of Carbon Disclosure Project (CDP) state today. CDP was launched in India here today at event organised by the Confederation of Indian Industry's Centre of Excellence for Sustainable Development in association with the World Wildlife Fund (WWF)-India.

''Climate change is expected to reduce GDP by at least 5 per cent each year. In some cases this could be greater than 20 per cent.

It will be cheaper to act now rather than to wait,'' Mr Simpson said.

''Climate change presents risks and opportunities for Indian companies in terms of regulatory risks and opportunities, physical risks and opportunities, consumer sentiment risks and opportunities and total composite global growth,'' he said.

Revealing that approximately 25 per cent of global emissions are reported through CDP, Mr Simpson explained that there are several benefits of measuring and disclosing greenhouse gas (GHG) emissions.

''Investors are increasingly requesting this information. There is a greater pressure down the supply chain. Moreover, measurement facilitates management - what you can't measure you can't manage - translating into efficiency improvements, cost reduction and ultimately bottom line growth,'' he said.

''Acting now is also an opportunity to demonstrate leadership and obviously leaders will have a greater ability to influence government policy. This also opens doors to opportunities like Clean Development Mechanism (CDM),'' he reiterated.

Mr Simpson pointed out that growth and development are integral to climate change and developing countries will be the worst hit.

''We are still seeing a gap between awareness and action, even in the developed countries. If companies don't act voluntarily, the government will. Not measuring and disclosing GHG emissions will only create pressure to regulate,'' he warned.

CII Western Region deputy chairman and Wartsila India Ltd managing director Banmali Agrawala observed that industry in India has an even more important role to play as India has the dubious distinction of being the fourth largest emitter of the GHG emissions.

''The crucial challenge for developing countries like India would be whether one can afford the cost of controlling GHG emissions, while there are millions living in abject poverty. And this is where corporate India would have to take responsibility. While the Indian economy is on an upswing, with the GDP having crossed the trillion dollar mark, there is certainly room for Indian companies to act in a responsible manner and demonstrate their commitments to the future,'' he said.

''We at CII have often talked about the ''triple P'' bottom-line approach, namely measuring the performance of a company through its profits, people and its care for the planet. The CDP project is in complete resonance with this approach,'' Mr Agrawala added.

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