Assessment is based on life-cycle analysis
Sector-specific approach to environmental performance rating
Forces the image-conscious and stock market-sensitive companies to become trendsetters because they have the wherewithal to improve
Focuses on a company's future environmental commitments rather than dwell on its past
Develops data after its voluntary disclosure by companies
Involves the public in this exercise as green inspectors who survey the plants on grp's behalf
Ensures transparency through an institutional mechanism consisting of independent expert panels
Evaluates primary data given by companies and secondary data provided by green inspectors and other independent agencies
Assesses non-participating companies on the basis of secondary data
Takes into account the companies' feedback before making the findings public
Recognises outstanding performers and exposes errant companies
Involves public dissemination of rating results
Weightages are assigned to various stages in the product's life cycle depending upon their impact on the environment. Consequently, even as the broader criteria remain constant for all sectors, weightages may vary substantially. While maximum importance was given to the raw material procurement and production phase in the pulp and paper industry, product-use stage got top priority when the automobile sector was rated.
The scoring scale is based on grp's principle of pushing companies to perform much better than what the prevalent regulations stipulate. Whenever a regulatory standard exists, it is, therefore, fixed as the lowest benchmark. In the absence of this, the Indian average performance is the yardstick to measure minimum eligibility.
To arrive at a comparative scale, the average of all companies is calculated and given 2 marks. The best performer gets 8 and those below average are given 0. A linear scale is used between 2 and 8. The most eco-friendly companies are awarded 8 marks out of 10 because even in their case there is room for improvement.
grp has laid down the path for coherent corporate environmental governance. Even as investors associate a company's poor green record with financial risks and liabilities, a high rating increases its goodwill brightening business prospects. Public interest litigation (pil) has also helped heighten public consciousness in this regard.
The age-old concept of there being an inverse relationship between environment and economy has become obsolete. In the previous rating, it was seen that a mill with a sound environmental management programme had a 60 per cent chance of earning profits and vice-versa.
The project includes an environmental awareness programme with special emphasis on management graduates, environmental managers and government officials. Training workshops covering media, regulatory authorities, industry and financial institutions are a part of this programme.
It also plans to push for the introduction of fiscal and environmental policies to support sustainable development.