The Hindu Business Line : ‘Companies with green tilt have an edge in the global market’

Chennai, Aug. 20 Companies with a policy on environmental concerns are preferred business partners and suppliers globally, according to Mr Sudipta Das, Partner and National Leader, Environment and Sustainability Services, Ernst & Young Pvt Ltd.

Addressing a seminar on climate change and environmental risks organised by Ernst & Young and the Madras Chamber of Commerce and Industry, he said that with increasing concerns about the adverse impact of environment degradation and climate change, such issues are coming into the industry mainstream.

Globally, companies that have a policy on reducing greenhouse gas emissions are preferred suppliers and their products have a competitive advantage in the market place. Carbon is even influencing merger and acquisition decisions with valuations being “carbon adjusted”, he said.

Another major opportunity for industries is the Clean Development Mechanism that is enabling cash flows for projects through carbon trading from greenhouse gas emission reductions. There is increasing demand for cleaner technologies, he said.

Ms Naina Lal Kidwai, Group General Manager and Country Head, India, HSBC, said conservation of natural resources, emission reduction, climate change… are not just environmental issues but social and economic issues that affect livelihood as they impact economic development.

Aggressive economic growth comes with environmental impact and depletion of resources — “this is the ugly side of growth which needs to be managed,” she said.

Climate change would have an impact on emerging economies, with industries such as agriculture, transportation, tourism and infrastructure being affected. HSBC, a major player in emerging markets, looks at the risks and change driven by climate change.

The bank recognises climate change as a strategic imperative and is working with its clients to address environmental concerns. “What is good for the clients is good for the bank,” she added.

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