The project is part of the Industry and Environment initiative started at the Centre to address an array of environmental issues facing all segments of Indian industry. This project aims at bringing the industrialists, environmentalists, policy makers and other eminent citizens of the civil society on a common platform to steer the process of industrialisation in India towards sustainability.

Q. What are the objectives of the Green Rating Project? What is the aim behind setting up this project?
A. The idea behind the project is to increase transparency in environmental performance of industries. As a normal practise, companies in developed countries prepare an environmental report wherein they disclose all information relating to their environmental performance. However, in India there is no such trend and it is extremely difficult to get any information on the company’s environmental performance. The project aims to increase transparency on industrial environmental performance by providing as a source of information through the project.

Further, the project also aims to provide a forum to the environment friendly companies to showcase their achievements. Many a time, civil society is not aware of the various initiatives taken by a company for environmental protection. The project aims to give reputational incentive to such companies. This would also push poor performers to improve.

For more details, please check the GRP objectives.

Q. How are the sectors selected for the rating?
A. The selection of the sector is done based on the recommendations of the Project Advisory panel. Moreover, the potential pollution problem from the sector is also kept in mind and thus emphasis is to rate more polluting sectors. Another factor, which is kept in mind, is the public image of the sector. The sector should have a few high profile players, because these companies are bound to be more sensitive to criticism, and are more likely to take such a rating seriously than a small industry.

Q. Why was pulp and paper, automobile and chlor alkali sector selected for the initial ratings?
A. The pulp and paper sector was selected as the pilot project under the project followed by the sectoral ratings of automobile and chlor-alkali.

Since the rating methodology adopted is life cycle assessment, the initial sectors were selected in order to develop a rating methodology, which could be replicated in all sectors. Thus, pulp and paper sector was selected because it presented two important phases of life cycle i.e. raw material sourcing and production phase. In addition, the sector is potentially polluting. The automobile sector was selected as it represents the next two phases of life cycle i.e. Product use and product disposal. Again this sector is major concern in terms of pollution generation. Lastly chlor alkali sector was selected as it represents each stages of life cycle to some extent.

Q. Has the project been accepted by the industry?
A. Being a civil society project, it has huge credibility. The project was very well accepted by the pulp and paper sector as well as the automobile sector. Even in chlor alkali sector, which is ready for release, the companies are very much aware of the project. Since the project is based on the principle of voluntary participation, it goes to show the project’s acceptability by the fact that the project had 100% participation in pulp and paper sector, 94% in automobile and more than 90% in case of chlor alkali.

In the follow-up rating for pulp and paper sector to assess the improvements made by the industry after the first release, the project has an active participation of the companies. The companies have also been involved in providing their feedback on the questionnaire and the rating methodology so as to remove any drawbacks and make it more effective.

Q. What has been the impact of the project?
A. The project has been able to create awareness on environmental issues among the industries. It has managed to make environmental issues a concern of the top management. In case of pulp and paper sector, 74% of the top management was directly involved in the project. The project has also led to more awareness on environmental management practices with the number of companies going for ISO 14001 has increased several fold. For more details on the impacts of the project, please see impacts of pulp and paper project.