Understanding environmental impact assessment and sustainability goals

The article discusses the importance of environmental impact assessment and sustainability goals for businesses, with a focus on the Indian context. Environmental Impact Assessment is integral to the ecology of industrial operations. It enables businesses to determine their position regarding key areas such as water usage, emissions, energy consumption, and waste disposal. The environmental impact consists of:

• Energy usage: Many manufacturing businesses are energy-intensive, relying mainly on non-renewable fossil fuels.
• Waste management: Many businesses generate waste in the form of packaging materials, obsolete vehicle components or maintenance by-products.
• Water consumption: Many businesses have considerable water usage in warehousing, cooling systems, and vehicle maintenance.
• Emissions: Some businesses are considered responsible for the emission of gases like carbon dioxide (CO₂), particulate matter (PM) and nitrogen oxides (NO_X) which contribute to climate change and air pollution. Emissions are divided into three categories namely: Scope 1 (direct emissions), Scope 2 (indirect emissions from purchased energy), and Scope 3 (indirect emissions from the supply chain) which are subjected to reductions to mitigate climate change (Zanten & Tulder, 2020).

Braig et al. (2023) pointed out that water shortages can be solved by adopting water-saving technologies to minimize water footprints. Lauesen (2020) underscores the need to switch from non-renewable to renewable energy sources to minimize environmental degradation. Costa et al. (2020) believe that industries that engage in high waste generation can maintain themselves through recycling and waste reduction. These initiatives work hand in hand with the Sustainable Development Goal (SDG) 12, which is concerned with responsible consumption and production.

An overview of environmental impact by businesses in India

In India, CO₂ emission from combustible fuels has been 2516.967 metric tonnes in 2022 which is the third largest in the world (IEA, 2024). Even the status of India in waste generation is very poor. A report by The Energy and Resources Institute (TERI) shows that India produces 62 metric tonnes of different types of waste every year. Of this, only 12 metric tonnes of waste is treated while the remaining waste remains untreated (International Trade Administration, 2023).

A report by the Indian Central Pollution Control Board (CPCB) projected the waste generation from India to increase to 165 MT by 2030. This growing rate of waste generation also raises health and environmental concerns for the country (International Trade Administration, 2023). India also is lacking in its water management efficiency as the demand for water by the industrial sector is expected to grow from 12 billion cubic meters in 2010 to 63 billion cubic meters in 2050 (Statista, 2023).

As overall consumption is increasing and the supply chain is becoming more complex, the logistics sector has become an integral part of economic development. However, the rising transportation has resulted in significant environmental degradation too. Currently, the logistics sector is responsible for a quarter of CO₂ emissions, the generation of large amounts of solid waste, the discharge of more wastewater, and more consumption of energy from non-renewable sources (Applandeo, 2024). The sector-wise assessment in the case of India shows that for the transport sector, the CO₂ emissions have increased from 95 Mt in 2000 to 324 Mt in 2022 (IEA, 2024). Since the logistics sector is crucial for the country’s economic growth and its environmental impact is worsening, it is important to assess the current situation and suggest strategies to promote sustainability.

Significance of assessing environmental impact

Businesses are required to monitor and evaluate their environmental impact and sustainability efforts periodically to meet regulatory compliance (Environmental Compliance Management Systems), understand environmental damages and focus on building strategies to reduce them. Assessing environmental impact is also part of businesses’ CSR. It contributes to societal well-being by reducing pollution, conserving resources, and promoting eco-friendly initiatives. By assessing environmental impact, businesses can adopt sustainable practices, to reduce their carbon footprint, enhance resource-saving, decrease pollution, and adopt waste management, to help in achieving long-term sustainability goals like SDG 12 (Gutterman, 2020). Through their proactive measures, organizations can reconcile their activities with global sustainability standards and highlight their lasting dedication to environmental sustainability (Zanten & Van Tulder, 2020). This environmental impact and sustainability examination will significantly contribute to the Sustainable Development Goal (SDG) 12.

SDG 12 deals with responsible consumption and production and stresses the efficient use of resources, and reduction of waste by the implementation of sustainable practices (Gutterman, 2020). According to Gutterman (2020), adopting sustainable practices not only preserves resources for future generations but also enhances corporate reputation among stakeholders and consumers, who increasingly prioritize sustainability. The environmental performance of businesses is consistently monitored and improved which makes them not only responsible for their social obligations but also places themselves as front-runners in the worldwide switch to sustainable development.

Current practices in India to manage environmental damage

India has adopted a multifaceted approach to managing environmental damage, integrating legislation, compliance systems, and national missions aimed at sustainability. Here are some key current practices:

Adoption of Renewable Energy: Renewable Energy sources substitute the dependency on fossil fuel energy and other resources that are emitting greenhouse gases. Roohy Gohar and Indulska (2020) recommend that industries should resort to solar, wind, and water to at least partially fulfil their energy requirements. India has significantly expanded its use of renewable energy, with large-scale solar and wind farms. The government aims to achieve 500 GW of renewable energy capacity by 2030 (500GW Nonfossil Fuel Target | Government of India | Ministry of Power, n.d.).

Waste Reduction Strategies: This circular practice can minimize waste generation in companies. Lauesen (2020) suggests reusing, reducing, and recycling, to reduce dangers threatening the environment and save costs. The Extended Producer Responsibility (EPR) encourages businesses to take responsibility for the recycling and disposal of plastic waste and e-waste in India (Government Notifies Guidelines on Extended Producers Responsibility on Plastic Packaging Under Plastic Waste Management Rules, 2016, n.d.).

Jal Shakti Abhiyan: It is a national campaign to conserve water through rainwater harvesting, efficient water use, and the revival of water bodies (Jal Shakti Abhiyan, n.d.). Initiatives like harvesting rainwater and installing water recycling systems, help reduce water consumption and are the means to save water (Braig et al., 2023).

Emission Regulations: The National Clean Air Programme (NCAP) is aiming to reduce air pollution by 20-30% in major Indian cities by 2024, through stricter emissions controls, promoting electric vehicles (EVs), and enforcing pollution norms (National Clean Air Programme (NCAP) to Improve Air Quality in 131 Cities by Engaging All Stakeholders, n.d.). The Central Pollution Control Board (CPCB) oversees pollution control efforts by monitoring emissions from industrial sources and ensuring compliance with environmental standards

Key parameters to assess environmental impact and sustainability efforts

To systematically assess environmental impact and sustainability efforts, it is essential to define and measure key concepts, including:

Share of Renewable Energy Consumption denotes the calculated proportion of energy coming from renewable sources that have been utilized. Gutterman (2020) says that the bigger the share of this metric is, the more carbon emission reduction is done.

Water Usage Intensity is defined as the volume of water that is being appropriated during the production of a unit. According to Braig et al (2023), this design can be used to evaluate the water quality and resource management in the course of operations. Understanding the importance of sustainable use of water can help companies manage their water waste generation as well.

The Waste Generation Intensity parameter emphasizes the production of a specific amount of waste for each unit of output. Costa et al (2020) suggest that recycling and minimization of waste should be the main focus of companies in the fight against waste-generation intensity. The lower amounts of waste generated help companies use their resources in profit-making instead of waste management.

Scope 1 Emission Intensity metric measures the direct emissions from company-owned sources. Reducing Scope 1 emission intensity is crucial for lowering a company’s direct environmental impact (Zanten & Tulder, 2020).

Scope 2 Emission Intensity measures indirect emissions from the generation of purchased energy. Companies can lower Scope 2 emissions by purchasing energy from renewable sources (Roohy Gohar & Gohar, 2020).

Scope 3 Emission Intensity captures all other indirect emissions, including those from the supply chain. Reducing Scope 3 emissions requires collaboration with suppliers and other stakeholders to enhance sustainability across the value chain (Petrova, 2020).

Promoting a greener economy

The Indian logistics sector is of great importance to the economy as well as the cause of rising environmental degradation concerns. The sector is one of the major users of fossil fuels which results in air pollution and greenhouse gas emissions. To address these challenges and promote sustainable development, green logistics should be prioritized. This involves adopting eco-friendly solutions like electric and hybrid vehicles, optimizing route planning, and improving fuel efficiency to reduce emissions (Lähdeaho & Lähdeaho, 2020). In water-scarce areas of India, companies must implement water conservation measures, such as using recycled water for vehicle washing (Braig et al., 2023). Additionally, proper waste management, including segregation, recycling, and safe disposal, is crucial to prevent environmental harm (Fichter et al., 2020). By adopting these solutions, the logistics sector can transition from a significant polluter to a key player in creating a greener India.

Environmental Impact Assessment plays a crucial role in helping businesses understand and mitigate their environmental footprint while advancing sustainability goals, particularly SDG 12. By focusing on areas such as renewable energy use, water conservation, emissions control, and waste management, businesses can significantly reduce their environmental impact and improve resource efficiency. This aligns with the shift toward green logistics in India’s logistics sector, where the adoption of eco-friendly transportation, better route planning, and effective waste management are key strategies for combating environmental degradation (Lähdeaho & Lähdeaho, 2020; Braig et al., 2023; Fichter et al., 2020). These approaches allow industries to transition from being significant polluters to major contributors to sustainable development, fostering a greener and more responsible economy.

References

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