Climate change has come to the fore as a key sustainable development issue. This had led companies across the world to develop effective strategies to mitigate its impact. The first step for most companies is to have a detailed understanding of its GHG emissions, which helps them identify reduction opportunities and thereby improve operational efficiency, prepare for future climate policies and communicate their commitment to key stakeholders, such as customers and investors.
CMD Precision Products Private Limited, a manufacturing company in Tamil Nadu, decided to put together a baseline for the financial year 2019-20. The company is a manufacturer of metal parts and components for automobile, engineering and other companies. The report covers emissions from its factory premise at Papparambakkam Village, Thiruvallur District in Tamil Nadu.
The study is put together using the guidelines of the globally-recognised GHG Protocol: Corporate Accounting and Reporting Standard and covers all three scopes. The sources of emissions covered in in the scopes are from fuel consumption, fugitive emissions during the use of air conditioners, grid-related emissions, and emissions from the purchase of the company’s primary raw materials.
In addition to the quantification of emissions, the report provides the next steps that the company can explore. This includes expansion of emission categories, setting an emissions intensity target and implementation of green initiatives. The green initiatives are a means through which emissions can be reduced, for example an energy efficiency audit, rooftop solar, renewable energy sourcing and carbon offsetting.
Furthermore, such an exercise carried out across the sister concerns of its parental Classic Group will help the entire group march towards carbon neutrality in the foreseeable future.