in practice
SUSTAINABLE GROWTH
“If the CFO and CEO are not engaged...the process will break down” Lauralee Martin, Global COO and CFO, Jones Lang LaSalle, speaks about how carbon measurement in India Inc is still a work-in-progress and the role CFOs can play in ensuring reduced emissions in their organisations Dhiman Chattopadhyay
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oth at a corporate and at an individual level we need to reduce carbon footprints. But what are the biggest hurdles to this in a country like India? Is it lack of willingness on the part of companies, a feeling that as a ‘first mover’ they may lose out unless others follow the same green norms? Or, is it lack of proper regulations? Awareness of carbon footprint measurement and reporting varies widely in India. At one end of the spectrum, some corporate occupiers and building owners aggressively monitor, measure and report their carbon emissions, while on the other end are owners and occupiers who are not sensitive to such issues. The Government of India has formulated acts and policies revolving around sustainability issues such as the Energy Conservation Building Code (ECBC) and the National Action plan for climate change (NAPCC), and has drawn up 34
CFO india
January 2012
— Lauralee Martin COO & CFO, Jones Lang LaSalle
plans to make energy audits mandatory, to encourage renewable energy, and other measures to reduce carbon from buildings. We expect it will take a while for state and local governments to enact and enforce these laws, and that’s when we will see more consistent compliance. Around the world, we see the best results on energy and sustainability when city governments and local private stake-
holders are engaged. Often, countries are so geographically and demographically diverse that different regions have much different priorities, and it becomes difficult to create a single strategy that works for everyone. Carbon reduction is a global issue — if one country reduces carbon emissions and another country increases them, then we have made no progress. Carbon emissions come mainly from consumption of oil, coal and other nonrenewable fuels, and cities need fuel to maintain and grow their economies. Luckily, energy efficiency not only reduces carbon but also reduces costs, improves local air quality, enhances energy security and helps preserve land and water habitats — all of which help local economies and drive corporate performance. CFOs have an important role in making this work. The process of monitoring, gathering and reporting data on energy, water, carbon and waste requires participation from every part of a company. If the CFO and CEO are not engaged, department leaders won’t be either, and