M&M declares internal carbon prices to cut emissions

Aesha Datta New Delhi | Updated on January 16, 2018 Published on October 07, 2016

The company is likely to invest ₹25-30 cr towards cleaner technologies

Mahindra and Mahindra (M&M) on Friday joined a global list of companies to have declared an internal carbon pricing to reduce their carbon emissions.

The announcement was made by the conglomerate, which has business across sectors from automobiles to real estate and clean energy, at the World Sustainable Development summit.

The company has declared an internal carbon price of $10 per tonne, becoming the first major Indian company to take such a step, joining a global group of companies, including biggies such as Google and Microsoft, to have announced internal carbon prices.

The company currently emits about 300,000 tonnes of carbon annually. As a result, the company is expected to now invest ₹25-30 crore towards cleaner technologies.

The company intends to reduce its carbon footprint by a further 25 per cent with respect to their existing capacity.

“This is a commitment by us to invest in technologies and equipment that will help offset our carbon footprint,” Anirban Ghosh, Chief Sustainability Officer of the Mahindra Group, told BusinessLine.

Going green

Internal carbon pricing does not follow any established models, and is seen as an investment by the company into cleaner technologies to reduce dependence on energy, or to devise greener ways of operating.

While many countries, including India, do not have binding rules around carbon pricing, with the Paris deal on climate change coming close to being finalised, legislations around carbon pricing in the future is highly likely.

M&M has been one of the few Indian companies that have been reporting their carbon emissions for the last eight years. Since then the company has reportedly reduced carbon emissions by 47 per cent and its energy use by 32 per cent.

Tom Kerr, Director, Carbon Pricing Leadership Coalition, The World Bank Group, said, “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.”

Published on October 07, 2016
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