Industries most effected by Green Regulations

[Former Member]

Hi,

Please provide your views on "What are all the industries most effected by Green Regulations".

Regards,

Sudhir

Edited by: Sudhir Gorantla on Apr 28, 2009 2:02 PM

[Former Member]

Hi Sudhir,

If Manufacturing is considered to be a vertical. Then its the most affected.

Hi-Tech and Lifesciences are the domains that are significantly affected by the Green Regulations.

Regards,

Srinivasan Subbiah

[Former Member · Accepted solution]

Green Regulations u2013 They affect industries?

Or are they cause of an effect?

I am posting this view very hesitantly, because it is deviant, not direct; and lengthy too.

A. Understanding the question

1.0 The word u2018affectu2019, is a verb, meaning u2018to have an influence on someone or something, or to cause them to changeu2019.

The word u2018effectu2019 is both a noun and verb. As noun, it means u2018the result of a particular influenceu2019. As a verb, it means u2018to achieve something and cause it to happenu2019.

(As per the Cambridge Advanced Learneru2019s Dictionary)

If it appears that I am so fastidious, it is with some reason of trying to be clear myself.

2.0 u2018Affectedu2019 would be generally used to mean to get affected adversely.

I assume it is meant so in the question.

u2018Affectedu2019 may be taken to mean, not able to move forward, or incur heavy expense, image loss, hassle of frequent liaison with regulatory authorities, lot of monitoring, measurement and reporting, facing frequent inspections and so on. It may even include in some case closures and in some cases no license issued to commence operation.

3.0 By u2018Green regulationsu2019 we may take it to mean Environmental regulations and by u2018Environmentu2019 - air, water, land, flora, fauna, resources, global issues.

The regulations hence would be related to each of these items.

Looking from the process approach, the regulations also would be seen related to inputs, process steps and/or output and outcome, that is, their handling, storage, transportation, transformation procedure, usage and disposal.

B. My view

1.0 There are many industries:

(I am listing from memory; we can improve upon it and make it exact and exhaustive.)

Mining, Steel, Manufacturing- Mechanical, Manufacturing- Electrical, Manufacturing- Electronic, Construction, Shipping, Transportation, Chemical, Software, Apparel, Tourism, Cement, Plastics, Hotel, Fisheries, Forest, Pharmaceutical, Leather, Food and beverages, Motor vehicles, Textiles, and many others.

2.0 What are the Green Regulations, by the way?

a) For instance in Karnataka, India:

The Air (Prevention & Control of Pollution) Act, 1981 is an enactment to provide for prevention, control and abatement of air pollution.

Apart from the above said Acts, the Karnataka State Pollution Control Board is also enforcing the following Acts & Rules:

1. The Water (Prevention & Control of Pollution) Cess Act, 1977, and as amended in 1991.

2. The Water (Prevention & Control of Pollution) Cess Rules, 1978.

3. The following Rules and Notifications framed under Environment (Protection) Act, 1986 :

- Hazardous Waste (Management, Handling and Trans-boundary Movement) Rules, 2008.

- Manufacture, Storage and Import of Hazardous Chemical Rules, 1989.

- Environmental Impact Assessment Notification, 2006.

- Bio-Medical Waste (Management & Handling) Rules, 1998, and Amendment Rules 2000.

- Plastics Manufacture, Sale & Usage Rules, 1999.

- The Noise Pollution (Regulation & Control) Rules, 2000.

- Municipal Solid Wastes (Management & Handling) Rules, 2000.

- Ozone Depleting Substances (Regulation & Control) Rules, 2000.

- Batteries (Management and Handling) Rules, 2001

4. The Public Liability Insurance Act, 1991.

b) Those promulgated by Ministry of Environment and Forest, Government of India, are related to:

Legislations on Environment, Forests, and Wildlife

A Water Pollution

B Air Pollution

C Environment Protection

- Coastal Regulation Zone

- Eco-marks Scheme

- Eco-sensitive Zone

- Environmental Clearance - General

- Environmental Labs

- Environmental Standards

- Hazardous Substances Management

- Loss Of Ecology

- Noise Pollution

- Ozone Layer Depletion

- Water Pollution

- 2-T Oil

D Public Liability Insurance

E National Environment Appellate Authority

F National Environment Tribunal

G Animal Welfare

H Wildlife

I Forest Conservation

J Biodiversity

The regulations would be more or less similar the world over. The number may vary.

3.0 We may expect, that for the company whose impact on the environment- that is on air, water, land, flora, fauna, resources, global issues - is more, more Green Regulations would be applicable.

Or it may even be the company who critically impact the life cycle on earth.

Or it may be that company whose environmental aspects are significantly impacting on a currently critical environmental issue. For example if an industry uses Ozone Depleting Substance (ODS), it is a significant aspect and phasing out of ODS usage might be pressurized by regulations.

It would be separate exercise to find out which are such companies/industries.

C. My considered view on the question!

1.0 My considered view is that it is rather time now to know how environment is getting benefited by the various initiatives of industries and not, what are all the industries most affected by Green regulations!

Or at least, u2018What are all the industries to which most of the Green regulations are applicableu201D may be the question.

2.0 Soon the adverse impact of industrial activities on environment may be a thing of the past, with education increasing, with public awareness increasing, with technological solutions increasing, with voluntary adoption of principles increasing, with enforcement of regulations increasing and most importantly with IT enabled management.

The days of working under a regulation, trying only to comply appears to be on the way out.

The days of self regulation and voluntary adoption of appropriate principles, so that the adverse impact of an industry is minimized, is the trend emerging.

Such a state is said to emerge after companies go through five stages of development as follows:

Stage I Resistance :

Total resistance to environmental values and rules. Organization would be absolutely unresponsive and reactive to environmental initiatives.

Stage II Observe and comply:

The organization observes environmental laws but actions reflect an unwilling attitude or lack of ability to comply. Actions are being enforced through legislation or court decisions.

Stage III Accommodate:

Organization begins to adapt to change. Early indications of proactive and responsive behaviours. Actions are no longer based entirely on complying with environmental legislation; the organization begins to exhibit voluntary behaviour.

Stage IV Seize and preempt:

The organization voluntarily seizes and preempts its actions with environmental concerns. It proactively engages in setting the agenda. It is responsive to the many external stakeholders. The latter phases would display the attributes of sustainable development.

Stage V Transcend:

The organizationu2019s environmental values, attitudes, beliefs and culture exhibit a total support for the environment. The organization would proactively support and be responsive to all living things. It would act in a way which is fully consistent with sustainable development.

- From u2018Corporate Environmental Managementu2019 by Richard Welford, Universities Press, 1996

For example mining has ICMM Ten Principles as their guide to address Green issues;

chemical industry adopts u2018Responsible Careu2019; shipping industry follows Exxon Valdez Principles; Marine Stewardship Council for Certification and Eco-labelling Initiative for sustainable fishery practices. Equator Principles for Finance industry, a Financial industry benchmark for determining, assessing and managing social and environmental risk in project financing.

There are many more ways of going beyond compliance by the industries! They are worth knowing and incorporating them in solutions.

D. My line of thinking is as follows.

1.0 Regulations, in the first instance are promulgated because of the ground reality of certain damages caused by industries. It is in order to prevent such things happening in future and to drive corrective actions for the damages already caused and lastly to uphold the rule of law that certain stringent actions are taken against certain industries to serve as lesson for other companies.

2.0 Regulations come into existence as part of the policies, principles and values a nation wants to uphold and promote. If we try to understand why a regulation in the first instance is made, the experience of attempting to comply with it may not be seen as getting u2018affectedu2019.

For example with respect to payment of cess, it is likely to be seen as an expense. But it is actually to provide an impetus to the industry to initiate conservation measures. The Government agencies may not be rightly seen as run by earning cess.

3.0 Hence, with respect to regulations it is only a question of complying or not complying; not a question of getting affected. It is not a question of complaining. Even if they feel affected there are mechanisms for appeal for redress.

A company whose impact is on many items of environment is likely to attract many regulations.

They may only be affected by their ignorance, indifference, and inefficiency towards regulations.

So what a company may do is, evaluate the cost of non-compliance and evolve measures to be outside the net and gradually go above the net!

E. A tentatively final word

I am honestly hesitant to put the Green Regualtions in the dock by saying they affect some industries and I foresee that if IT is not included in the list as one of the industries affected, the next question may be u2018Then why Green IT?u2019

Hence I have not answered the question directly.

Lastly on a second thought, if u2018Effectedu2019 is the term and by this if it is really meant as to the change Green Regulations have brought on industries, benefiting the industry as well as the environment then it is a different question. Here again whichever industryu2019s environmental impact is more, their mitigation effort and effect also would be more because of efforts for compliance to the applicable regulations.

I regret if I have overstretched the expression of my view and still left the question unanswered.

Sam Anbazhagan

Edited by: Anbazhagan Sam Venkatesan on Jun 3, 2009 7:36 PM

Edited by: Anbazhagan Sam Venkatesan on Jun 3, 2009 7:43 PM

[Former Member]

I am sorry I was not able to format it properly.

Sam anbazhagan