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Philosophy of linking business needs with CSR objectives is getting popular

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Vishal Bhardwaj
Assistant Executive Director and Group Head CSR, Dalmia Bharat

Dalmia Bharat Cement, established in the pre-independence era 70 years ago, strongly believes in the principles of trusteeship and giving back to the society. It is one of the first few cement companies to become a part of the Cement Sustainability Initiative. The company has gone far beyond its fence to lend a helping hand to communities surrounding its plants. Spending around Rs 4-5 crore on such initiatives, much more than the 2 per cent required by the regulations, the company has achieved a fine balance between business sustainability and CSR. Vishal Bhardwaj, Assistant Executive Director and Group Head, CSR, at Dalmia Bharat, spoke with ICR about the contributions made by Dalmia Bharat Foundation and how the company has been realigning its focus to understand and meet the needs of the society. Excerpts from the interview.

In what way are corporates defining their social responsibilities?
Corporate Social Responsibility in a broader sense refers to the economic, environmental, social and overall governance practices of business. From the last decade, we all have witnessed that the approach towards addressing broader issues of CSR is gaining momentum. We believe that companies have to clearly link their corporate social responsibility initiatives with their business to ensure sustainability. At the same time, within the internal environment, it is also critical to address this paradigm shift of CSR for its wider acceptance. Role of top leadership is very crucial to see CSR as a mainstream business agenda.

CSR has a wider spectrum, and through its well planned interventions may not only contribute to overall socio-economic development of the community, but can also identify opportunities for cost savings through operational efficiencies and improve energy and resource utilisation efficiency. Business can relate to physical risks like climate change, water scarcity, lack of trained manpower, can build revenue sharing models for common resources, follow ethical material and supply chain practices, etc., the scope is endless. The recent mandate from the Ministry of Corporate Affairs through it?s notification of the New Companies Bill with specific reference to Section 135 (Schedule VII) may be seen as an attempt in this direction.

At Dalmia, we have already started designing our programs strategically and have identified critical issues relevant to communities and to our business such as water, energy and skill development.

To sum it up, the philosophy of linking of business needs with corporate social responsibility objectives is getting popular, but yes, there is a strong need to convert the thoughts into reality and develop such models in India.

Tell us about the involvement of your staff in the CSR initiatives.
Whenever we share our experience in conducting CSR activities internally with our colleagues through newsletters, case studies, etc., we receive tremendous feedback. This shows the willingness of our colleagues to go beyond their regular work and participate in our ongoing CSR activities. Their interest prompted us to develop some programs like ?Joy of Giving? week where in all employees contribute individually/collectively to address some of the basic needs of the underprivileged sections of the society.

The employees participate in blood donation camps, plantation activities, and also contribute their skills/knowledge in CSR programs like civil engineer(s) delivering lectures on construction under mason training programme for rural youths, etc. A very recent example is of our colleagues volunteering financially towards re-construction of three government schools damaged during the Uttrakhand flood disaster.

Now, in coordination with the HR team, we are all set to launch a very structured employee volunteer programme wherein we are committing two volunteer days per employee in a year. As a first step, we will move forward in this direction from our Head Office and gradually spread it across our plants.

Tell us more your CSR activities.
We implement CSR programs through ?Dalmia Bharat Group Foundation? (DBGF), which is a registered not for profit entity. The foundation began its journey in 2009 to carry forward the seven decade long legacy of our group based on the principle of Gandhian trusteeship. We have set up schools, established ITIs and contributed towards various social causes. Besides this, we have addressed issues of health and sanitation, education, rural infrastructure and women empowerment, all which were developed along the lines with UN Millennium Development Goals.

Presently, the foundation is working in 6 states, viz., Tamil Nadu, Andhra Pradesh, Karnataka, Assam, Meghalaya and Uttar Pradesh, in more than 100 villages. We had re-aligned our CSR approach in 2013-14 based on a baseline line and need assessment study done by an independent development agency ?Hand in Hand.? The study highlighted the issues pertaining to water scarcity, erratic power supply, unemployment amongst rural youths and basic rural infrastructure needs. We realised that these issues are equally relevant to our group?s businesses as much as to the communities around our facilities. So we started with an elaborate program in areas of soil and water conservation, energy conservation, climate change mitigation, skill development with efforts focused on creation of shared values for all stakeholders.

Soil and water conservation
The unchecked withdrawal of water for agriculture, coupled with its poor management, was depleting this critical resource around most of our plants. There was an immediate need to address the challenge frontally and that?s exactly what we did. With a large number of farm-ponds, check-dams and other water harvesting structures created, we substantially increased the water harvesting capacity in our villages. Instead of resting on our laurels, we expanded our focus to include water management too. Promotion and extension of drip irrigation method was a concrete step in this direction.

Depending on the need, we have set up reverse osmosis plants in some villages to provide clean drinking water. We have joined hands with the National Bank for Agriculture and Rural Development (NABARD) for the implementation of a large watershed management project in Tamil Nadu and have started developing around 2500 hectares of land on watershed basis.

Energy conservation and climate change mitigation
We also took a note of the energy related challenges faced by the communities around us. There is shortage of fuel-wood for cooking. The electric power supply to the villages is erratic. Children are most affected as their studies are severely hampered. We offered energy solutions in the form of fuel efficient stoves, helped in development of dung based bio gas plants, promoted solar street lights, solar study lamps, solar lanterns and solar home lighting systems. We partnered with New and Renewable Energy Development Corporation of Andhra Pradesh Limited (NREDCAP), to implement family based bio gas plants in the Kadapa district.

Livelihood skill training
Our focus on skill building for enhanced livelihood opportunities has now started to yield results. We have set-up vocational training and skill building programmes to let the youth enhance their skills and bridge the employability gap. We have collaborated with National Academy of Construction (NAC) to upgrade the skills of unskilled/semi-skilled construction workers. They were trained in masonry, bar bending, painting and whitewashing, domestic electrical wiring, etc. We are also a certified training provider for construction related skills.

Development Council of NSDC
To improve the livelihoods of rural households and farmers, we are focusing on activities like dairy development, securing small business micro credit, helping farmers to get livestock insurance, training them in best animal husbandry practices, etc. To empower women, we have formed more than 200 self help groups (with a corpus of Rs 23,00,000) and have set up a training-cum-production centre, for weaving articles out of dried palm leaves. We are also supporting a garment business unit, for the trained women tailors.

Social Development
We are continuously supporting social development by addressing health and sanitation issues by promoting basic and primary health care services through health check-up cum awareness camps, pre- and post-natal care, by running immunisation program for children and by promoting low cost toilets. The company is also taking efforts to provide quality education in terms of remedial education centres, teachers? training sessions, distribution of learning materials for teachers, implementing the building as learning aid (BALA) concept which has resulted into zero dropout rate of children in our program.

What are your priorities while framing a CSR plan? On what basis do you select these activities?
Recently our programme focus was realigned based on our learnings about the critical areas where we could make a better and larger impact on the society. We, through an elaborate engagement with stakeholders, identified the issues that are closer to our group?s businesses as well as to the communities around our facilities. To be precise, we did a need base assessment of our program through an independent development agency. The inputs were used to pinpoint the needs of the community and to identify how our programmes could be modified to address them in an even better way. We believe in our group?s concept of shared values and in that direction our foundation has started expanding its network of partners. We have initiated partnership projects with NABARD, NREDACP and with various state government agencies. We will continue to evaluate the impact of our CSR programs and will carry forward the key learnings to make our efforts more meaningful and sustainable.

Apart from doing good to the society, CSR helps the contributing organisation too in several ways. Please list some of the benefits that you have realised.
I would like to give you few examples where a positive impact was made directly or indirectly on the organisation. The efforts on water conservation and management have resulted into availability of water for farmers and to a certain extent have reduced our water consumption footprint too. This has cemented our relationships with the communities. Energy conservation efforts have resulted in reduction of CO2 emissions beyond the fence and the efforts put into skill development shall provide skilled manpower not only to us, as and when required, but also to the other neighbouring industries.

Internally, employees feel a sense of pride when they relate themselves to our CSR programs.

Water management
Managing with a meagre 500 mm rainfall is a big challenge for Nagaraj Suresh, a farmer of Hastinapur village at Kadappa in Andhra Pradesh. While farmers elsewhere cultivate two to three crops a year, he struggles to get full yield even from a single crop that he grows. With scanty water and soaring temperature, the soil loses the moisture quickly, thereby adversely affecting the crops. Deciding not to take the nature?s challenge lying down, Suresh sought DBGFs? assistance in digging a small pond in his farm for water harvesting. He successfully laboured to dig a pond of 1.2 lakh litres capacity with the funding assistance from DBGF as well as his own share. It was nature?s way of blessing him with rain soon after the completion of his work, which filled the pond with water. With water now available for irrigation and also for retaining the soil?s moisture, Suresh and his family look forward to a bumper harvest of cotton that he has cultivated on his farm.

Energy conservation
Aishwarya, a 15-year old girl, stays in a mud house with no electricity at the Kallakud village in Tamil Nadu. Her parents are daily wage earners, who struggle each day to win the bread for the family and find it difficult to support her. Since childhood, she had been trying hard to sustain her studies through scholarships. Each day, it was difficult for her to study in dim light, using a kerosene wick lamp. She used to struggle hard to read in murky yellow light. The black soot produced by kerosene wick lamp used to strain her eyes.

Our CSR team came to know about Aishwarya while identifying those students, who do not have access to electricity at their homes and are dependent on kerosene lamps or streetlights for their studies. While observing ?Joy of Giving? week in Oct 2013, DBGF supported her with a solar study lamp. This helped her study better and longer while she was preparing for class 10th exams. Solar study lamp also helped the family save significant amount of money, which they now use for other important needs. She scored good marks and was promoted to class 11th in May 2014. She is very passionate about studying and aspires to become a police officer and support her parents.

Fuel-efficient cooking stove
Energy and money had always been a challenge for Pullamma, a 58-year old agricultural labourer of Peddakomerla village in Andhra Pradesh. When it came to cooking food, her meagre earnings were barely enough to purchase fuel-wood for her kitchen. Neither would she have enough time and energy left after the day?s hard work to go out and collect it from the adjoining forest. She was distressed and that had started to affect her work and therefore on her earnings too. The situation continued until she learnt of the fuel-efficient stoves distributed by the team of DBGF. Now with the fuel-efficient stove she not only saves about half the wood she used to burn each day, her cooking time too has been cut to about half, giving her a breather from the grind that she used to go through each day.

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Economy & Market

Impactful Branding

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Advertising or branding is never about driving sales. It’s about creating brand awareness and recall. It’s about conveying the core values of your brand to your consumers. In this context, why is branding important for cement companies? As far as the customers are concerned cement is simply cement. It is precisely for this reason that branding, marketing and advertising of cement becomes crucial. Since the customer is unable to differentiate between the shades of grey, the onus of creating this awareness is carried by the brands. That explains the heavy marketing budgets, celebrity-centric commercials, emotion-invoking taglines and campaigns enunciating the many benefits of their offerings.
Marketing strategies of cement companies have undergone gradual transformation owing to the change in consumer behaviour. While TV commercials are high on humour and emotions to establish a fast connect with the customer, social media campaigns are focussed more on capturing the consumer’s attention in an over-crowded virtual world. Branding for cement companies has become a holistic growth strategy with quantifiable results. This has made brands opt for a mix package of traditional and new-age tools, such as social media. However, the hero of every marketing communication is the message, which encapsulates the unique selling points of the product. That after all is crux of the matter here.
While cement companies are effectively using marketing tools to reach out to the consumers, they need to strengthen the four Cs of the branding process – Consumer, Cost, Communication and Convenience. Putting up the right message, at the right time and at the right place for the right kind of customer demographic is of utmost importance in the long run. It is precisely for this reason that regional players are likely to have an upper hand as they rely on local language and cultural references to drive home the point. But modern marketing and branding domain is exponentially growing and it would be an interesting exercise to tabulate and analyse its impact on branding for cement.

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Concrete

Indian cement industry is well known for its energy and natural resource efficiency

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Dr Hitesh Sukhwal, Deputy General Manager – Environment, Udaipur Cement Works Limited (UCWL) takes us through the multifaceted efforts that the company has undertaken to keep emissions in check with the use of alternative sources of energy and carbon capture technology.

Tell us about the policies of your organisation for the betterment of the environment.
Caring for people is one of the core values of our JK Lakshmi Cement Limited. We strongly believe that we all together can make a difference. In all our units, we have taken measures to reduce carbon footprint, emissions and minimise the use of natural resources. Climate change and sustainable development are major global concerns. As a responsible corporate, we are committed with and doing consistent effort small or big to preserve and enrich the environment in and around our area of operations.
As far as environmental policies are concerned, we are committed to comply with all applicable laws, standards and regulations of regulatory bodies pertaining to the environment. We are consistently making efforts to integrate the environmental concerns into the mainstream of the operations. We are giving thrust upon natural resource conservation like limestone, gypsum, water and energy. We are utilising different kinds of alternative fuels and raw materials. Awareness among the employees and local people on environmental concerns is an integral part of our company. We are adopting best environmental practices aligned with sustainable development goals.
Udaipur Cement Works Limited is a subsidiary of the JK Lakshmi Cement Limited. Since its inception, the company is committed towards boosting sustainability through adopting the latest art of technology designs, resource efficient equipment and various in-house innovations. We are giving thrust upon renewable and clean energy sources for our cement manufacturing. Solar Power and Waste Heat Recovery based power are our key ingredients for total power mix.

What impact does cement production have on the environment? Elaborate the major areas affected.
The major environmental concern areas during cement production are air emissions through point and nonpoint sources due to plant operation and emissions from mining operation, from material transport, carbon emissions through process, transit, noise pollution, vibration during mining, natural resource depletion, loss of biodiversity and change in landscape.
India is the second largest cement producer in the world. The Indian cement industry is well known for its energy and natural resource efficiency worldwide. The Indian cement industry is a frontrunner for implementing significant technology measures to ensure a greener future.
The cement industry is an energy intensive and significant contributor to climate change. Cement production contributes greenhouse gases directly and indirectly into the atmosphere through calcination and use of fossil fuels in an energy form. The industry believes in a circular economy by utilising alternative fuels for making cement. Cement companies are focusing on major areas of energy efficiency by adoption of technology measures, clinker substitution by alternative raw material for cement making, alternative fuels and green and clean energy resources. These all efforts are being done towards environment protection and sustainable future.
Nowadays, almost all cement units have a dry manufacturing process for cement production, only a few exceptions where wet manufacturing processes are in operation. In the dry manufacturing process, water is used only for the purpose of machinery cooling, which is recirculated in a closed loop, thus, no polluted water is generated during the dry manufacturing process.
We should also accept the fact that modern life is impossible without cement. However, through state-of-the-art technology and innovations, it is possible to mitigate all kinds of pollution without harm to the environment and human beings.

Tell us about the impact blended cement creates on the environment and emission rate.
Our country started cement production in 1914. However, it was introduced in the year 1904 at a small scale, earlier. Initially, the manufacturing of cement was only for Ordinary Portland Cement (OPC). In the 1980s, the production of blended cement was introduced by replacing fly ash and blast furnace slag. The production of blended cement increased in the growth period and crossed the 50 per cent in the year 2004.
The manufacturing of blended cement results in substantial savings in the thermal and electrical energy consumption as well as saving of natural resources. The overall consumption of raw materials, fossil fuel such as coal, efficient burning and state-of-the-art technology in cement plants have resulted in the gradual reduction of emission of carbon dioxide (CO2). Later, the production of blended cement was increased in manifolds.
If we think about the growth of blended cement in the past few decades, we can understand how much quantity of , (fly ash and slag) consumed and saved natural resources like limestone and fossil fuel, which were anyhow disposed of and harmed the environment. This is the reason it is called green cement. Reduction in the clinker to cement ratio has the second highest emission reduction potential i.e., 37 per cent. The low carbon roadmap for cement industries can be achieved from blended cement. Portland Pozzolana Cement (PPC), Portland Slag Cement (PSC) and Composite Cement are already approved by the National Agency BIS.
As far as kilogram CO2 per ton of cement emission concerns, Portland Slag Cement (PSC) has a larger potential, other than PPC, Composite Cement etc. for carbon emission reduction. BIS approved 60 per cent slag and 35 per cent clinker in composition of PSC. Thus, clinker per centage is quite less in PSC composition compared to other blended cement. The manufacturing of blended cement directly reduces thermal and process emissions, which contribute high in overall emissions from the cement industry, and this cannot be addressed through adoption of energy efficiency measures.
In the coming times, the cement industry must relook for other blended cement options to achieve a low carbon emissions road map. In near future, availability of fly ash and slag in terms of quality and quantity will be reduced due to various government schemes for low carbon initiatives viz. enhance renewable energy sources, waste to energy plants etc.
Further, it is required to increase awareness among consumers, like individual home builders or large infrastructure projects, to adopt greener alternatives viz. PPC and PSC for more sustainable
resource utilisation.

What are the decarbonising efforts taken by your organisation?
India is the world’s second largest cement producer. Rapid growth of big infrastructure, low-cost housing (Pradhan Mantri Awas Yojna), smart cities project and urbanisation will create cement demand in future. Being an energy intensive industry, we are also focusing upon alternative and renewable energy sources for long-term sustainable business growth for cement production.
Presently, our focus is to improve efficiency of zero carbon electricity generation technology such as waste heat recovery power through process optimisation and by adopting technological innovations in WHR power systems. We are also increasing our capacity for WHR based power and solar power in the near future. Right now, we are sourcing about 50 per cent of our power requirement from clean and renewable energy sources i.e., zero carbon electricity generation technology. Usage of alternative fuel during co-processing in the cement manufacturing process is a viable and sustainable option. In our unit, we are utilising alternative raw material and fuel for reducing carbon emissions. We are also looking forward to green logistics for our product transport in nearby areas.
By reducing clinker – cement ratio, increasing production of PPC and PSC cement, utilisation of alternative raw materials like synthetic gypsum/chemical gypsum, Jarosite generated from other process industries, we can reduce carbon emissions from cement manufacturing process. Further, we are looking forward to generating onsite fossil free electricity generation facilities by increasing the capacity of WHR based power and ground mounted solar energy plants.
We can say energy is the prime requirement of the cement industry and renewable energy is one of the major sources, which provides an opportunity to make a clean, safe and infinite source of power which is affordable for the cement industry.

What are the current programmes run by your organisation for re-building the environment and reducing pollution?
We are working in different ways for environmental aspects. As I said, we strongly believe that we all together can make a difference. We focus on every environmental aspect directly / indirectly related to our operation and surroundings.
If we talk about air pollution in operation, every section of the operational unit is well equipped with state-of-the-art technology-based air pollution control equipment (BagHouse and ESP) to mitigate the dust pollution beyond the compliance standard. We use high class standard PTFE glass fibre filter bags in our bag houses. UCWL has installed the DeNOx system (SNCR) for abatement of NOx pollution within norms. The company has installed a 6 MW capacity Waste Heat Recovery based power plant that utilises waste heat of kiln i.e., green and clean energy source. Also, installed a 14.6 MW capacity solar power system in the form of a renewable energy source.
All material transfer points are equipped with a dust extraction system. Material is stored under a covered shed to avoid secondary fugitive dust emission sources. Finished product is stored in silos. Water spraying system are mounted with material handling point. Road vacuum sweeping machine deployed for housekeeping of paved area.
In mining, have deployed wet drill machine for drilling bore holes. Controlled blasting is carried out with optimum charge using Air Decking Technique with wooden spacers and non-electric detonator (NONEL) for control of noise, fly rock, vibration, and dust emission. No secondary blasting is being done. The boulders are broken by hydraulic rock breaker. Moreover, instead of road transport, we installed Overland Belt Conveying system for crushed limestone transport from mine lease area to cement plant. Thus omit an insignificant amount of greenhouse gas emissions due to material transport, which is otherwise emitted from combustion of fossil fuel in the transport system. All point emission sources (stacks) are well equipped with online continuous emission monitoring system (OCEMS) for measuring parameters like PM, SO2 and NOx for 24×7. OCEMS data are interfaced with SPCB and CPCB servers.
The company has done considerable work upon water conservation and certified at 2.76 times water positive. We installed a digital water flow metre for each abstraction point and digital ground water level recorder for measuring ground water level 24×7. All digital metres and level recorders are monitored by an in-house designed IoT based dashboard. Through this live dashboard, we can assess the impact of rainwater harvesting (RWH) and ground water monitoring.
All points of domestic sewage are well connected with Sewage Treatment Plant (STP) and treated water is being utilised in industrial cooling purposes, green belt development and in dust suppression. Effluent Treatment Plant (ETP) installed for mine’s workshop. Treated water is reused in washing activity. The unit maintains Zero Liquid Discharge (ZLD).
Our unit has done extensive plantations of native and pollution tolerant species in industrial premises and mine lease areas. Moreover, we are not confined to our industrial boundary for plantation. We organised seedling distribution camps in our surrounding areas. We involve our stakeholders, too, for our plantation drive. UCWL has also extended its services under Corporate Social Responsibility for betterment of the environment in its surrounding. We conduct awareness programs for employees and stakeholders. We have banned Single Use Plastic (SUP) in our premises. In our industrial township, we have implemented a solid waste management system for our all households, guest house and bachelor hostel. A complete process of segregated waste (dry and wet) door to door collection systems is well established.

Tell us about the efforts taken by your organisation to better the environment in and around the manufacturing unit.
UCWL has invested capital in various environmental management and protection projects like installed DeNOx (SNCR) system, strengthening green belt development in and out of industrial premises, installed high class pollution control equipment, ground-mounted solar power plant etc.
The company has taken up various energy conservation projects like, installed VFD to reduce power consumption, improve efficiency of WHR power generation by installing additional economiser tubes and AI-based process optimisation systems. Further, we are going to increase WHR power generation capacity under our upcoming expansion project. UCWL promotes rainwater harvesting for augmentation of the ground water resource. Various scientifically based WHR structures are installed in plant premises and mine lease areas. About 80 per cent of present water requirement is being fulfilled by harvested rainwater sourced from Mine’s Pit. We are also looking forward towards green transport (CNG/LNG based), which will drastically reduce carbon footprint.
We are proud to say that JK Lakshmi Cement Limited has a strong leadership and vision for developing an eco-conscious and sustainable role model of our cement business. The company was a pioneer among cement industries of India, which had installed the DeNOx (SNCR) system in its cement plant.

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Concrete

NTPC selects Carbon Clean and Green Power for carbon capture facility

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Carbon Clean and Green Power International Pvt. Ltd has been chosen by NTPC Energy Technology Research Alliance (NETRA) to establish the carbon capture facility at NTPC Vindhyachal. This facility, which will use a modified tertiary amine to absorb CO2 from the power plant’s flue gas, is intended to capture 20 tonnes of CO2) per day. A catalytic hydrogenation method will eventually be used to mix the CO2 with hydrogen to create 10 tonnes of methanol each day. For NTPC, capturing CO2 from coal-fired power plant flue gas and turning it into methanol is a key area that has the potential to open up new business prospects and revenue streams.

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