New Delhi: Mahindra and Mahindra Ltd on Friday became the first Indian company to announce its internal carbon price of $10 per tonne of carbon emissions.
The move is in line with its business commitment to reduce its greenhouse gas (GHG) emissions by 25% over the next three years.
Carbon pricing is an internationally recognized business tool that enables companies to create resources which are invested in low-carbon technologies which help reduce future emissions and lower operating costs.
“Mahindra is a pioneer in sustainability and is deeply committed to the creation of low-carbon businesses. We have reduced our carbon emissions over the years and this new carbon price will help accelerate innovation and drive our investments in energy-efficient and renewable technologies," said Pawan Goenka, executive director, Mahindra and Mahindra.
He expressed the hope that the step would encourage other companies to take action at a time when India’s emissions are set to rise in a BAU (business as usual) scenario, in step with the country’s economic growth.
Interestingly, it is not the first time that Mahindra has taken steps to tackle carbon emissions. The company started reporting its emissions from 2008 and over the past eight years has reduced its carbon emissions by 47% and its energy use by 32%. It has also invested in developing India’ first and only electric car, the E2O.
Other climate-friendly initiatives of the company include use of magnetic induction, LED lighting technology and waste heat recovery systems at its plants.
In April 2016, the company also committed to doubling its energy productivity by 2030 and it is the first global signatory to EP100, a programme promoted by the international non-profit, The Climate Group. It is also the first Indian company that joined the World Bank’s ‘Carbon Pricing Leadership Consortium’ which was launched at the Paris climate summit last year.
Mahindra collaborated with the World Bank and IFC-led Carbon Pricing Leadership Coalition along with the World Resources Institute (WRI), India to enhance its understanding of the carbon price mechanism.
“Mahindra & Mahindra’s new internal carbon price is an excellent example for companies in India—and around the world—of how smart companies are taking advantage of low-carbon investment opportunities while managing carbon risk," said Tom Kerr, director, Carbon Pricing Leadership Coalition, The World Bank Group.
Some of the global companies that have announced carbon pricing are Unilever, Microsoft, Google and Novartis