IACC

WHITEPAPER ON CLIMATE CHANGE ADAPTATION BY MSMEs IN INDIA AND BEST PRACTICES

Knowledge Partner

Table of Contents

Introduction	4
Climate Change	4
Impact of Climate Change on Industries	5
International Initiatives to Deal with Climate Change	5
India’s Commitment Towards Climate Action	5
Importance of ESG for Industries	7
Reversal of Climate Change – An Action Plan	8
Synopsis of the Deliberations on Climate Change	8
Learnings and Proposed Action Points to Address the
Impact of Climate Change	9
Recommendations and Way Forward	12
Establishing a Steering/Nodal Committee	12
Creating a single ‘Knowledge Sharing and Best Practices’ platform	12
Providing ‘Green financing’ Options to MSMEs and
Other Smaller Organisations	13
Additional steps that may be undertaken with respect to
climate change and its impact	14
Hosting Investment and/or Industrial Summits from time to time	15

Introduction

One of the most imminent challenges that lies ahead for countries heading into the post-covid world is the erratic climate change occurring across many parts of the globe. The rising temperature and global climate change may severely affect the fundamental nature in which nations interact with each other for carrying out commercial operations.

In the given scenario, as the world picks up speed in its race against climate change and moves forward, the Indo-American Chamber of Commerce (“IACC”), West India Council and the U.S. Consulate General Mumbai in association with its knowledge partner, Shardul Amarchand Mangaldas & Co. have come together to organise round table deliberations across multiple locations in India i.e. Goa, Nashik, Mumbai, Indore and Ahmedabad and invite representatives from the government, relevant industries, environmentalists and other service providers from respective locations to participate in the deliberations and share the impact of climate change, other related issues faced by them and the steps that can be taken to work together to minimise harm and the overall risk faced by the ecosystem, biodiversity, inhabitants and industries. Before commencing the round table deliberations in th

aforesaid five locations, IACC - Western India Council in partnership with U.S. Consulate General Mumbai had an initial round table deliberation in the city of Pune, with respect to addressing the impact of climate change with special emphasis on the automotive industry.

Each round table deliberation aims at addressing the concerns regarding climate change by prioritising the most vulnerable sectors within each location such as tourism in Goa, manufacturing in Nashik and Indore, green financing and real estate in Mumbai and chemical and pharmaceutical in Ahmedabad and develop mitigation strategies, considering the sensitivity and adaptive capacity of each such sector.

Climate Change

As per the United Nations, “Climate change refers

to long-term shifts in temperatures and weather patterns. These shifts may be natural, such as through variations in the solar cycle. Since the 1800s, human activities have been the main driver of climate change, primarily due to burning fossil fuels like coal, oil and gas. Burning fossil fuels generates greenhouse gas emissions that act like a blanket wrapped around the Earth, trapping the sun’s heat and raising temperatures. Examples of greenhouse gas emissions that are causing climate change include carbon dioxide and methane… Energy, industry, transport, buildings, agriculture and land use are among the main emitters.”

Impact of Climate Change on Industries

As per the World Economic Forum’s Global Risks Report 2022, industry leaders consider climate action failure, extreme weather, biodiversity loss, human environmental damage and natural resource crisis as some of the biggest risks for the global economy. A study by CitiGroup estimates that rampant global warming could reduce up to USD 72 trillion off the global GDP.

Climate is a key resource for any business due to its impact on temperature, humidity, precipitation, local ecology, disease risk, rainfall pattern, chances of weather extremes, etc. Abrupt, rapid and unpredictable changes in these factors will cause disruptions in availability of raw materials and fuel, workforce wellbeing, access to market, finance and technology, customer preferences, regulatory landscape, etc.

Climate change is expected to create a wide range of risks for businesses. Some of these direct and indirect risks include (i) disruption in operations due to extreme weather events, (ii) workforce disruption,

(iii)   supply chain disruption, (iv) unavailability of resources like food, energy, etc., (v) rising insurance costs, (vi) labour challenges, (vii) transition risks which arise from society’s response to climate change such as changes in technologies, markets and regulation that can increase business costs, undermine the viability of existing products or services, or affect asset values, (viii) uncertain regulatory and political environment, (ix) reputational damage; and (x)

potential liability for businesses for contributing to climate change.

To address these disruptions, industries will have to adopt clean energy options, energy efficiency measures, water conservation, waste management, etc. Access to affordable finance will be a key issue as huge costs are involved to replace and upgrade existing infrastructure. Further, measures like technical training, awareness, technology, regulatory support and business incentives also need to be taken to build climate resilience and ensure transition to low-carbon pathway.

International Initiatives to Deal with Climate Change The global action against climate change primarily focusses on mitigation (reducing greenhouse gas (GHG) emissions), adaptation to climate impact and financing of such measures. Some of the global commitments are: (i) UN Sustainable Development Goals (SDGs) which besides other aspects focus on climate action, conservation of ocean and marine life, ecosystem protection and resilient infrastructure to provide a road-map to reduce emissions and build climate resilience; (ii) UN Framework Convention on Climate Change (UNFCCC) which calls upon member countries to address climate change through mitigation and adaptation; (iii) Paris Agreement, 2015 which targets to limit global temperature rise to well below 2°C (and strive for 1.5 °C) as compared to pre-industrial levels through low carbon pathways; and (iv) Glasgow Climate Pact which was signed by countries at the 26th Conference of Parties (COP26) in Glasgow, Scotland to build resilience to climate change.

India’s Commitment Towards Climate Action

India is currently the third largest carbon emitter in the world, after China and the United States of America. The current levels of India’s emissions are very high due to its rapid growth trajectory since 1990s. Its historic and per capita emissions, however, are very low indicating its minimal contribution in the human-induced global warming. As a major global initiative to address climate change, India announced its Nationally Determined Contributions (NDCs) after ratifying Paris Agreement in 2016

6  | INTRODUCTION

 These NDCs were recently updated at COP26, where Hon’ble Prime Minister of India hailed the concept of LIFE (Lifestyle for Environment) and announced following ‘Panchamrits’ to decarbonise India’s growth trajectory:

•      Installation of 500 GW renewable energy capacity by 2030;

•      Sourcing 50% of India’s energy requirements from renewable energy by 2030;

•      Reduction in projected GHG emissions by one billion tonnes by 2030;

•      Reduction of at least 45% in carbon intensity of

India’s GDP by 2030; and

•      Ensuring net zero emissions by the year 2070.

Moreover, India is also spearheading international groups like International Solar Alliance, Coalition for Disaster Resilient Infrastructure, Infrastructure for Resilient Island States and Leadership Group for Industry Transition to promote mitigation and adaptation to address climate change. Under the International Solar Alliance, India initiated the ‘Green Grids Initiative – One Sun, One World, One Grid (GGI-OSOWOG)’ at COP26, to promote global investments in solar power technology and to build inter-connected global grid for cross-border transfer of solar energy.

India also signed various declarations at COP26 such as Accelerating the Transition to 100% Zero Emission Cars and Vans Declaration, Global Breakthrough Agenda and New Innovation Missions to catalyse investments in climate resilient technologies.

In light of its international commitments, India has also announced various domestic policies to address climate change. Some of these policies are mentioned below.

•      National Action Plan on Climate Change (including eight National Missions) focusses on mitigation and adaptation to combat climate change. State Governments and Union Territories have also released State Action Plan on Climate Change to integrate climate change into their planning process.

 

•      Government is promoting transition to electric vehicles through schemes like FAME (Faster

Adoption and Manufacturing of Hybrid/Electric Vehicles), which provides incentives for EV manufacturing, adoption and development of associated infrastructure.

•      Central and State Governments offer financial assistance for development of solar and wind energy projects like solar parks, grid connected solar rooftop in residential buildings, installation of off-grid solar devices and solar-based LED lights.

•      In the Construction and Building sector, policies like National Building Code, 2016, Energy Conservation Building Code, 2017, Buildings Energy

Efficiency Programme, green energy rating system,

Star rating programme, etc. seek to promote sustainability in buildings through measures like energy efficiency, water conservation, waste management, recycling, etc.

•      Budget for FY 2022-23 also announced initiatives for financing mitigation and adaptation strategies for climate change like sovereign green bonds, blended finance, etc. The proceeds from Sovereign

Green Bonds will be deployed in public sector projects which will in turn help in reducing the carbon intensity of the economy.

•      Policies like Smart Cities and Atal Mission for

Rejuvenation and Urban Transformation aim to promote sustainable development of Indian cities through clean mobility, waste management, water conservation, ecosystem restoration, green open spaces, energy efficiency, etc.

State or regional policies

•      Gujarat has formed an independent climate change department to focus on climate change.

Various other states like Odisha and Tamil Nadu have formed climate change cell within their environment department to focus on climate change.

•      Kerala has announced dedicated funds to invest in climate change mitigation and adaptation activities. Kerala also issued green bonds to invest in climate resilience activities.

•      NITI Aayog released SDG Index 2021 ranking states based on their SDG performance. Goa scored 44 points (aspirant’s category) due to lowe

performance in disaster preparedness and share of renewable energy in total energy mix.

•      Maharashtra Government has released the Mumbai Climate Action Plan to address climate change and achieve net zero emissions in Mumbai by 2050.

Importance of ESG for Industries

The increasing scientific evidence related to climate change and breach of planetary ecological boundaries on account of human activities has put more focus of the society, regulators, investors, customers, and other stakeholders on the business activities. An industry is considered accountable for the impact of its activities on environment and society and it is also expected to prepare itself for the unprecedented changes in Earth’s atmosphere. Due to the rising global awareness about the risks posed by climate change, investors and financial institutions are increasingly focussing on environmental, social and governance (“ESG”) aspects of their assets.

ESG considerations are greatly influencing the flow of investments across the world, with institutional investors, lenders, private equity funds, venture capital funds assessing business’s ESG policies, performance, risks and opportunities before investing.

A rapid and continuous rise in global ESG assets also points towards this trend. According to Bloomberg Intelligence, global ESG assets are expected to exceed USD 50 trillion by 2025, which will represent more than a third of the projected USD 140.5 trillion in total global assets under management.

The Indian corporate sector is increasingly focussing on ESG. Around 64 Indian companies have announced their net zero GHG emissions targets. Leading Indian companies including Tata, Reliance, Mahindra, ITC, Adani Transmission, Arcelor Mittal Nippon Steel, and Dalmia Cement have voluntarily pledged to move towards carbon neutrality through GHG emissions reduction and energy efficiency. Certain Indian banks like Axis Bank, HDFC Bank and IDFC First Bank have also incorporated ESG into their lending policies.

Securities and Exchange Board of India has mandated top 1,000 listed entities in India to report on ESG in the Business Responsibility and Sustainability Report (BRSR) reporting framework from FY 2022-23. SEBI has also recently released a consultation paper proposing regulatory framework for ESG rating providers. It has also constituted an advisory committee on ESG matters to advise on improvements in BRSR, ESG ratings and ESG investing mechanism.

8  | REVERSAL OF CLIMATE CHANGE – AN ACTION PLAN

Reversal of Climate Change – An Action Plan

The rise in the global temperature and sea-levels, warming oceans, shrinking ice sheets, glacial retreats, decreased snow-covers, oceanic acidification and other extreme events have resulted in an unprecedented rate of climate change

Synopsis of the Deliberations on Climate Change The evidence for climate change is over-whelming: The rise in the global temperature and sea-levels, warming oceans, shrinking ice sheets, glacial retreats, decreased snow-covers, oceanic acidification and other extreme events have resulted in an unprecedented rate of climate change, with the 7 most recent years being the warmest. The years 2016, 2019 and 2020 hold the top 3 positions for being the warmest years on record, with 2021 also forming a part of the 7 warmest years.

The need to strike a balance between all 3 pillars of sustainable development i.e., economic development, social development and environmental sustainability, remains extremely important as ultimately, the cost of climate inaction will in the long run be larger than the cost of any other crisis that may be existing around the globe today

A five-part High-level Round Table Deliberation series on ‘Climate Change’ was held by the IACC - Western India Council in partnership with U.S. Consulate General Mumbai with its knowledge partner, Shardul Amarchand Mangaldas & Co., in Goa, Nashik, Mumbai, Indore and Ahmedabad. The series aimed at discussing the impact of climate change, with special emphasis to MSMEs across various industries, businesses and other organisations in such locations, with a view to achieving a common goal i.e., taking immediate steps today, by making available environment-friendly technologies and other cost-effective affordable solutions, that shall enable MSMEs and other organisations to adopt sustainable best practices, in alignment with India’s commitment to meet ‘Net Zero’ emissions by 2070. Before commencing the round table deliberations in the aforesaid five locations, IACC - Western India Council in partnership with U.S. Consulate General Mumbai had an initial round table deliberation in the city of Pune, with respect to

REVERSAL OF CLIMATE CHANGE – AN ACTION PLAN | 9

addressing the impact of climate change with special emphasis on the automotive industry.

Chairpersons, managers, businessmen, business owners, industrialists, executive officers from major industries including tourism, hospitality, manufacturing, financial institutions, textile, chemical industry and authorised representatives from the local municipal corporations and other regulatory authorities attended the conference, shared their experiences and deliberate

on key issues with respect to climate change and its impact on MSMEs and other organisations across Goa, Nashik, Mumbai, Indore and Ahmedabad.

Learnings and Proposed Action Points to Address the Impact of Climate Change

Following are some of the most important learnings and action points proposed at the roundtable deliberations to address the impact of climate change:

Major Points	Important Discussions and Learnings
Increasing ‘Green Cover’	•  The Central and State Governments must work in concurrence with local authorities to outline a
	formal framework and establish a road-map in ‘city planning’ to ensure large-scale afforestation
	measures with a view to increasing ‘green-cover’.
	•  The authorities must also provide tailor-made incentives to organisations adopting sustainable
	best practices, to ensure timely maintenance and growth of private forests, if any, established
	within their premises.
	•  The local authorities must also encourage ‘Miyawaki’ technique that promotes use of biomass in
	soil preparation and planting of diverse, native and indigenous trees, thereby bringing in more
	local biodiversity. Planning and designing Miyawaki forests using local tree species will aid in
	lowering temperatures around concrete heat locations, create carbon funnels, reduce pollution
	levels and attract local birds and insects.
Energy transition by	•  It is highly encouraged that organisations develop innovative ideas using renewable energy/
replacing fossil fuels	power, which not only brings down total costs of the industrial operations without compromising
with renewable sources	with quality, but also contributes towards the promise of a clean energy future.
of energy, electric	•  Adopting the FAME Scheme - ‘Faster Adoption and Manufacturing of Hybrid/Electric Vehicles’ and
vehicles and converting	setting-up of electric charging stations is highly recommended to reduce the use of petrol and
waste to energy	diesel powered vehicles in the country.
	•  The intention is to provide the most eco-friendly, sustainable and favourable outcomes, converting
	waste into energy, while striking the right balance between available resources of water, air, soil,
	energy and their optimum usage.
Sustainable ‘Circular	•  It is important for all organisations across India, regardless of its size, scale or reach, to establish
Ecosystem’	business partnerships with entities/suppliers who themselves demonstrate sustainable practices
	such as use of low-carbon materials, novel chemical catalysts which result in low GHG emissions
	and other energy efficient solutions.
	•  Banks/lending institutions must sanction and disburse loans having lower interest rates and
	higher repayment periods to organisations engaged in ‘green’ projects/activities such as use of
	renewable energy, green technologies or other best ecological and sustainable practices in their
	operations.
	•  Organisations with a ‘healthy ESG scorecard’ must be subject to faster approvals and lucrative
	debt, equity and other financing opportunities.
	•  A sustainable circular economic system promoting exchange of renewable resources and
	production of cost-efficient solutions must be implemented at all stages of a product life cycle.
	In the process, all operations may also largely become aligned with the industries’ own ecological
	footprint.

10 | REVERSAL OF CLIMATE CHANGE – AN ACTION PLAN

Major Points	Important Discussions and Learnings
Financial and non-	•	The  existing  regulatory  compliance  standards  for  investments  in  green  and  ecologically
financial incentives to		sustainable technologies are prohibitively expensive.
MSMEs	•  It is highly recommended that the Central and State Governments in concurrence with other
		legislators, deliberate on establishing a regulatory framework which facilitates easier availability
		of financial and non-financial aid to MSMEs and other smaller organisations to enable use of
		green technology, low-carbon materials, energy efficient solutions and other sustainable best
		practices in their operations.
	•  The MSME sector plays a vital role in providing opportunities and employment in the areas of
		engineering, textile, chemical products, ceramic, pharmaceuticals, hospitality, service and retail
		industries etc. and enables economic and social development while acting as an incubator for
		entrepreneurship and innovation.
Common marketplace	•	It is highly recommended that organisations develop innovative solutions that come from
to facilitate exchange		renewable energy, natural resources or processes that are constantly replenished.
of green technology,	•  Keeping in mind the long-term benefits of green technologies, the Central and State Governments
listing and trading		in concurrence with other legislators, must consider establishing a common and ecologically
of carbon credits		niche marketplace that shall allow sharing/pooling of available resources and permit exchange
and other green		of such resources or green technology and allow listing and trading of carbon credits amongst
instruments		various organisations.
Promoting innovative	•	The  State  Governments  and  local  authorities  must  encourage  development  of  common
ideas, common		infrastructure and make available sustainable technologies for organisational clusters.
infrastructure	•  It is highly encouraged for all organisations to come up with innovative cost-effective green
and affordable		solutions using eco-friendly technology in view of the global concerns and rapid developments
sustainability solutions		in relation to climate change and a growing scarcity of natural resources.
	•  The government must also ensure that the above information, including valuable research/
		findings are made available and shared with everyone, by hosting the same on various central
		government and state environmental portals from time to time.
Accessible	•  It is recommended to practice recycling of solid and other biological waste and wastewater for
waste collection,		reuse, using effective and efficient processes which will ensure compliance with established
management, recycling		quality standards for the intended end use.
and upcycling	•	The  local  authorities  should  set-up  Common  Effluent  Treatment  Plants  (CETPs)  with  an
infrastructure		environment-friendly and sustainable infrastructure which reduce overall effluent treatment
		cost, provide better collective treatment, and reduce land cost for small-scale industrial facilities
		that cannot afford to set-up individual treatment plants.
	•	Upcycling  outdated  and  obsolete  machinery  and  technology  into  functional  and  useable
		machinery and technology, which is not only cost-effective but also meets sustainability criteria
		must be practiced by all organisations irrespective of its size, scale or reach.
	•  ‘One person’s waste is another person’s reward.’ Industries must deliberate on establishing a
		‘Waterfall model’ which enables larger companies to provide financial and non-financial aid to
		MSMEs and other smaller organisations using environment friendly, sustainable and other energy
		efficient solutions in their operations.

REVERSAL OF CLIMATE CHANGE – AN ACTION PLAN | 11

Major Points	Important Discussions and Learnings
Ground-up fostering	•  In view of the important learnings and action points proposed, it is extremely important to
of knowledge and	sensitise citizens, organisations and constituents about the effects of climate change and create
skill enhancement	awareness about climate change issues, remedial measures, adaptation and significance of
on climate change	sustainability.
issues, remedial	•   In addition to the above, substantial modifications, amendments or revisions to the extant
measures, adaptation	regulatory framework must also be shared from time to time through regular awareness/training
and significance of	programs and other in-house practices.
sustainability	•  Drafting in-house policies, SOPs and ‘way forward’, should be based on circumstances that
	support mitigation by providing frameworks and help in realising overall synergies in policy-
	making decisions.
	•  Climate governance shall be most effective when organisations align their individual domestic
	goals with global needs.
Setting-up of focussed	•  Climate change has a direct corelation to the use and consumption of fossil fuels which generate
‘Research and	GHG emissions leading to a Greenhouse effect.
Development’ centres	•  In this regard, comprehensive data with respect to industry-wise emissions and consumption of
to develop sustainable	such fossil fuels must be identified, monitored and analysed to obtain an estimate of the overall
solutions for specific	carbon footprint attributable to industries.
issues	•  A multi-pronged approach, with ‘research and development’ centres and ‘capacity-building’
	playing a crucial role is required to be adopted to develop sustainable solutions for specific
	issues.
	•  With a continued focus on efficiency, industries must also pursue breakthrough technologies
	and promote utilization of renewable energy. The development and growth in low emission
	green technologies can be achieved only if necessary infrastructure exists and pioneering work
	is incentivized.

12 | RECOMMENDATIONS AND WAY FORWARD

Recommendations and Way Forward

Establishing a Steering/Nodal Committee (“Steering Committee”)

As a next step, an institutional framework is required to be established, which shall adopt a functional model and provide incentives to environment-friendly and sustainable industries. Appropriate implementation shall have to be ensured by the relevant authorities.

•     A Steering Committee formed on the principles of ‘responsible and sustainable practices’ must be set up which shall prepare short-term, mid-term and long-term visions and implementation strategies for the creation of “Eco-Friendly and Sustainable Hubs” across India. Further, after considering various propositions and to be able to effectively execute its plans, the Steering Committee may also create a panel of government/regulatory agencies.

It is of paramount importance that the Steering Committee comprises of the following experts:

 

−    Representatives from tourism, manufacturing, textile, chemical, petrochemical and other major industries;

−    Ecologists and environmentalists;

−    Administrators for planning and co-ordination within the tourism, manufacturing, textile, chemical, petrochemical and other major industries;

−    Economic and Financial experts who can advise on ‘green financing’;

−    Advisors for law and policy issues; and

−    Educational institutions, represented by members of its teaching, student and research and development community.

•     A clear vision needs to be set out by the Steering Committee that will be tailored as per strengths, geographical location and key indicators of the potential to adopt and adapt climate change adaptation and mitigation measures. This will be instrumental in identifying, creating and implementing short-term, mid-term and long-term goals of the Steering Committee.

•     The Steering Committee shall work together with the Central and State Governments, local authorities and other regulatory agencies to address concerns of the most vulnerable sectors within the concerned location(s) on priority and help in developing mitigation and adaptation strategies considering the climate change sensitivity and adaptation capacity of each sector.

Creating a single ‘Knowledge Sharing and Best Practices’ platform

The Central and State Governments must work in concurrence with local authorities to set-up and create a functioning online e-governance portal incorporating the following Climate change measures:

•     A single window ‘Knowledge Sharing’ platform which will work as a central repository for all laws, guidelines, best practices, green financing mechanics and other SOPs available as on date which must be updated, revised or modified from time to time;

RECOMMENDATIONS AND WAY FORWARD | 13

•      A ‘Best Practices’ section on such platform where sustainable best practices can be shared by various stakeholders by way of creating awareness, providing necessary information and encouraging others to adopt such best practices;

 

•      An ‘E-forum’ may be created to enable individual businesses to interact with the government and regulatory machinery, in respect to any issues and/ or difficulties faced by them and/or to propose initiatives and recommendations to improve the existing infrastructure and facilities. Based on these issues/queries and recommendations, a ‘Knowledge Bank’ can be created to widely share such information, queries, responses and news on relevant topics; and

 

•      A ‘Resource Sharing’ platform wherein local industrialists, business-owners and other stakeholders can offer their in-house resources, eco-friendly and sustainable technology and other green equipment for a specific period of time, subject to such terms and conditions as may be mutually agreed upon and based on availability

In addition to the above, the Central and State Governments must also establish a regulatory framework with a view to:

•      Offering customised ‘rewards and recognition’, including ESG Credits with a view to enhancing the overall ESG score for communities and industries who adopt and undertake environmentally sustainable practices and projects;

 

•      Imposing ‘penalties and fines’ on polluters for damaging the environment to ensure timely remediation of pollution and preventing long-term damage to human health and environment;

•      Initiating issuance of ‘Green Points’ to organisations as a reward for adopting ‘green solutions’ and environment-friendly sustainable practices. Such ‘green solutions’ include using biodegradable resources, segregating wet and dry waste and using pooled modes of transport, if any; and

•      Creating a ‘special fund’ earmarked to stimulating innovations, developing environment-friendly industries and financing organisations wishing to achieve real climate change, taking into account protection of the environment.

The round table deliberations have shown that our actions in respect to our environment, have a direct correlation with its quality. A dialogue amongst relevant stakeholders engaging in understanding the ‘what’, ‘why’ and ‘how’ of climate change and that of sustainable development, is the absolute need of the hour.

14 | RECOMMENDATIONS AND WAY FORWARD

Such discussions are necessary in evolving a regulatory framework which not only governs but also enables responsible action. It is our collective responsibility to conserve, protect and nurture our ecosystem for all generations to come.

Providing ‘Green financing’ Options to MSMEs and Other Smaller Organisations

Investments in green and ecologically sustainable technologies such as photovoltaic/solar panels, carbon-capture and sequestration or wastewater treatment plants are very expensive. Larger companies along with assistance from Central and State Governments and local authorities, must lay the foundation, create awareness and accelerate the availability of such green technology to MSMEs and other smaller organisations by:

•      Incentivising growth of smaller companies by providing financial and non-financial aid in the form of subsidies, grants, tax exemptions and other benefits;

•      Establishing a regulatory framework facilitating issuance of a ‘healthy ESG scorecard’ to organisations which demonstrate ‘responsible and sustainable practices’ in their operations, thus creating important benchmarks for organisations seeking easier approvals and lucrative debt, equity and other financing opportunities;

•      Setting up a mechanism for purchase of renewable energy from an electric utility through a green pricing or green marketing program, where th

buyers have to pay just a small premium/mark-up in exchange for environmentally friendly resources; and

•      Issuing tailor-made financial instruments such as Green Bonds, Zero Coupon Zero Principal

Bonds and ESG Mutual Funds that accelerates the availability of environment friendly and renewable equipment such as solar panels, rainwater harvesting fields and other green technologies to the MSMEs and other smaller organisations.

In addition to the above, considering the landscape and ecosystem of the concerned sector, the following action points may also be undertaken with respect to climate change and its impact:

•      Landmark environmental innovations/solutions, services and learnings must be documented properly, shared and made available to everyone by hosting them on various government and environmental portals.

•      Industries must promote environment-friendly ways of working such as telecommuting or video conferencing to avoid use of company cars for meetings with clients, encouraging use of public transport or pooled modes of transport for commuting to and from offices, etc.

•      Introduce and encourage environmental studies, awareness trainings, mandatory environment drives and internship programs as a part of the curriculum in educational institutions such as schools, colleges and universities to create awareness, develop and shape an ‘eco-sensitive’ approach, right from the early childhood years. The State Government and local authorities must also organise ‘trade fairs’ with a view to promoting environmentally sustainable technologies and other best practices.

•      Prioritise the four pillars of success as envisioned by the Mumbai Climate Action Plan 2022, to foster ecological and sustainable growth of MSMEs and other smaller organisations:

RECOMMENDATIONS AND WAY FORWARD | 1

−    Economy: To facilitate economic projects/ activities that serve as a ‘common good’ by generating local employment opportunities in organisations set-up on environmentally sustainable models;

 

−    Engagement: To encourage engagement and participation of local people, financial and non-financial organisations in climate action planning and ensure continuous implementation of such climate action plans;

−    Environment: To protect and build natural assets and maintain resources for future generations; and

−     Equity: To ensure equitable distribution of benefits by addressing the needs of vulnerable communities and other impacted groups.

•     To lead by example:

−     Implement Corporate Social Responsibility (CSR) and ESG initiatives after understanding and outlining eligible and important ‘eco-friendly and sustainable’ projects, for which CSR contributions could be made by industries, businesses and other organisations.

−    The State Government may enter into public-private partnerships with local industries to work towards development of ecological infrastructure and other eco-friendly utilities.

•     All the above steps are a product of continuous and effective governance by local regulatory authorities along with a ‘sense of belonging’ ingrained in the local native inhabitants. The timely steps, implementation of best practices, as well as financial and other incentives provided by authorities will not only help the local businesses

to thrive but will also promote the growth of MSMEs and protection of the environment.

Hosting Investment and/or Industrial Summits from time to time

Lastly, it is necessary to host an ‘Investment and/or Industrial Summit’ by inviting key stakeholders, with international and domestic reach, from the following sectors:

•     A rich mix of large/mega, medium, small and micro industries;

•     Financing institutions;

•     Lending and micro-financing institutions;

•     Sector-wise export promotion boards; and

•     Advisors and consultants for law, direct and indirect taxation, accounting, science and technology, agriculture, IT and software, ecology, architecture, design, etc.

As part of this Investment and/or Industrial Summit, a mutual commitment must be forged amongst all stakeholders to create thriving, environmentally responsible and sustainable business models.

The learnings of the round table deliberations during the entire series can be best summed up in the words of Mahatma Gandhi, “What we are doing to the forests of the world is but a mirror reflection of what we are doing to ourselves and to one another.”

~Mahatma Gandhi