Going ‘Green’ May 13, 2010 Earth Facts - 2070 • Water will be a rare resource which will be available in half glasses only for drinking daily • Clothing will be disposable for lack of water to wash • Average life expectancy is 35 years • A charge would be levied for the air we breathe for each adult everyday 2 * Source: Article published in the magazine "Crónicas de los Tiempos“, in April 2002. Author: Dr. A. P. J. Kalam Economy & the Environment – current trends 3 Economic growth rate of 8% expects energy consumption to grow by 4.3% (2007) India in 2007 imported 70% of it’s oil requirements. By 2031, this would be 90% By 2031 India would need to add over 40,000 MW of electric generating capacity every year to address growing infrastructure needs It is expected that 70% of the infrastructure that will exist in 2030 is yet to be built Source: Need for a Paradigm Shift – Opportunities for Indo-Canadian Dialog in Energy, April 2008 Banking & it’s unique position in the economy 4 Highest opportunity to see with 400 million Indians transacting at an average 4-6 times a month Occupies space of primary lender & custodian to individuals at large Banker and consultant to large, medium and small industries Invests in large scale projects for infrastructural and other long term growth projects Circulates funds to generate money in various markets The Global Opportunity for Green $ 500 billion $ 100 billion $ 100 billion Value of Low Carbon Energy Market by 2050 Demand for projects generating GHG emission credits by 2030 Worldwide investment in clean energy in 2009 $ 18.6 – 23.1 billion Estimated solar industry revenues by 2010 $ 15 billion Global fuel cell and distributed hydrogen market by 2015 $ 84 billion Cumulative net savings from energy efficient products in US by 2012 Size of Opportunity 5 Source: Corporate Governance and Climate Change: The Banking Sector A Ceres Report, January 2008 Captialising on the Opportunity 6 Promotion and launch of energy efficient products and services Assist corporate, SMEs, suppliers to early adoption of environment friendly practices through: Risk modeling to include environmental risk Incentivise customers – corporate & individual for green practices Green fund investment, trading and distribution – similar to commodities like bonds Renewable energy certificate exchange Going Green at ICICI Bank 7 Benchmarking bank’s carbon footprint and efforts towards carbon neutral activities Environment friendly employee activities & engagement Building awareness & providing green options to customers Investment in green projects Driving the Movement Employees Participation ICICI Bank Go Green Green Partners Partnership 8 Customers Products Employee Participation 9 • E-Greetings • POWER GO GREEN Contest550 entries • Paperless COD/ COE meetings meetings • Go Green in product & process notes (PAC) • Credit Cards e-statement • Use of CFL Lamps • Go Green in internal newsletters • Auto Power Off for all PCs Employee Participation 10 • Green section in I-Voice, ICICI Bank employee forum • Use of e-Memos for internal approvals • Regulated AC temperature • Celebrating Green EventsWorld Environment Day, Earth Hour • Green message on Visiting Cards (recycled paper) Customer Engagement • Incentivising Green lifestyle- Green Vehicles & Housing • Driving B2 & InstaBankingPaper-less/ Travel-free banking • Rationalisation of physical customer communication • E-Statement Drive • Green messaging across touch-points/ • Green Events- World Environment Day, Earth Hour www.icicibank.com/gogreen 11 Customer Engagement 12 • Eco friendly gifting to all customers/ relationships • Launch of paperless, low energy e-branches • Green themed activities at branches • E-Lok Adalat in Delhi Employee Participation – Way Forward 13 • Contest –Green Team for paper & energy consumption • Reduced eWastage by upgrading existing PCs • Monthly green hour at branches • Use of paper with higher recycled percentage • Car pooling across offices and branches • Monitoring use of printers • Education of the Green Way of life through partnerships with NGOs Customer Engagement – Way Forward 14 • Green communication over IVR and hold tunes • Shift to bio-degradable credit/debit/ prepaid card plastic • ATM chargeslips to carry green messaging • Green Caller tunes for call center, landlines & corporate mobile connections • Continued promotion of online banking Footprint Mapping @ ICICI Bank 15 Carbon, Water, Paper & Waste Footprints Mapping at bank facilities Carbon Footprint Benchmarking In-house Emission Reduction (GHG) Carbon Footprint Offset Land Energy Carbon Footprint Road Map Carbon Waste Water Clean Technology Project Finance 16 Assistance to Green Projects Promoting eco-friendly technologies Clean coal technologies Initiatives to reduce emissions ISO 14000 - Environment Management Systems Energy Service Companies (ESCO) municipalities Demand Side Management (DSM) with utilities Waste heat recovery Energy Efficient air-conditioning 17 with Assistance to Green Projects 18 Zero Emission Initiative Green Building Initiatives National Initiatives Green Governance Initiatives Funding clean technology projects Green Initiatives at ICICI Group Companies 19 ICICI Group Company Initiatives ICICI Securities Green Calendar to customers Quarterly statement moved online ICICI Lombard Provision of e-Policies/ policies with reduced pages Night Shift at Malad processing hub, A/c switched off for an hour/day 20 ICICI Group Company Initiatives ICICI Prudential Asset Management Company Headline 1: This tree manufactured five pounds of pure oxygen everyday. Till we hacked it down to make this newsletter. Headline 2: Trees have life too. Hard-hitting Green messages on communication 21 And that includes the one chopped down to make this paper. Benefits to ICICI Group 22 Establish ICICI Group as a responsible corporate citizen through its commitment to the environment Environmental savings of over 30,000 trees and water supply to 100,000 rural households for a month Cost savings of Rs 380 mn from 3.6 mn reams of paper saved Investment in carbon footprint evaluation and offsetting activities expected to be returned over 3 to 5 years through operational efficiencies Generation of revenue stream through Carbon Credits Thank You To know more, visit us at www.icicibank.com/gogreen 23 Clean coal technologies 24 Innovative concepts like deep beneficiation of coal (coal washeries) and coal bed methane have been introduced for the first time in the country Through a demonstration project we assisted the first coal washery in the country (ST-BSES) for providing a solution to Indian coal, which has high ash content and is highly polluting, via the process of deep beneficiation of coal We also assisted Essar Oil, the first company to successfully demonstrate the concept of coal bed methane in India The replication potential of these demonstration projects have been significant Sahastratronic Contols Pvt. Ltd. (SCPL) 25 An energy service company (ESCO) which worked with Nasik Municipal Corporation (NMC) on a shared savings based street lighting ESCO project Energy saving potential was assessed jointly with NMC Energy Services Agreement for implementation of the project entered into between SCPL and NMC Savings were shared for five years Earlier energy bill prior to project implementation - Rs 50.0 million per annum for area allotted to SCPL Avg achieved annual savings - Rs 17.0 million on a capital investment of Rs 16.6 million Project completed in Nov 2005 Payback period ~1.5 years SCPL Cont….. Installation of 486 street light controllers covering about 19000 street lights at various lighting stations to improve street lighting efficiency Improvement in the existing electrical distribution network for Reduction in cable losses Power factor optimization 26 SCPL 27 Cont….. Salient Features of Street Light Controller Microprocessor based unit with a real time clock Three modes of operation (Start , Run & Dim) Voltage correction in Start mode as per lamp manufacturer specifications to enhance life of bulb Microprocessor changes mode to Run mode where voltage is changed to acceptable lux level At programmed time DIM mode takes over automatically to reduce illumination at an agreed value On/Off and sunrise/sunset timings for 52 weeks can be programmed 28 acceptable lux level 40 35 30 25 20 15 m 6a m m m m m 5a 4a 3a 2a 1a pm pm pm 12 11 9p m 10 10 lux level 7p m 0p m The actual lux level varies due to variation in the voltage levels The red graph shows the approx lux level, whereas green graph shows the acceptable lux level Light level available during peak traffic hours is less than during low traffic hours. Large potential to save energy 12 pm to 6 am 8. Cont….. 6p m SCPL ESCO Business Models Model 1 Model 2 Lender Repays Loan Repays Loan Lends ESCO Lends Operates, Maintains Owns,Operates,Maintains User 29 User Noida Power Company Limited 30 Private distribution company for Greater Noida Commercial, industrial, residential and agricultural consumers Replacement of bare cables with insulated cables and LT lines with HT lines. Increase in HT/LT ratio from 0.85 to 2.46 Distribution network improvements after load research – annual savings of 1.7 mn units against estimated 0.6 mn units Metering of unmetered consumers DSM – replacement of old pumps by energy efficient pumps (55% energy savings) besides 22% reduction in water consumption Sterlite Industries Limited Waste heat recovery Major unit manufacturing copper at Tuticorin Copper smelting exothermic process Hot flue gases with high heat content being wasted Waste heat recovery system to be installed Power generation 10.4 MW Payback <1 year Reduction of CO2 emission: 47,500 tpa 31 Sterlite Industries Limited Cont… : annual Water Recycling/conservation savings Current Power requirement : Power saving with modifications Annual saving in power cost : Current water loss : Cost of water : Annual saving in water cost 32 794 KW : 420 KW Rs 14.2 Mn 1419 m3 Rs 17 / m3 : Rs 8.5 Mn Total savings in water recycling : Rs 22.7 Mn Sumaya HMX Systems Ltd Development of “Ambiator”, an eco-friendly alternative to an AC Works on the indirect evaporative cooling technology by incorporating a wet plate and a cross flow heat exchanger Provides 100% filtered cool fresh air and consumes about 35% power compared to an AC making it about 65% more energy efficient compared to an AC Does not use chloro fluoro carbons (CFC), as it does not run on compressor-based technology The product has also been endorsed by TERI (DCS 001) and the Energy Management Centre (EMC) under GoI The company has improved the heat exchanger efficiency of the Ambiator from 63% to about 80% The company is currently improving on bringing min offer temperature below 23ºC & reducing product size Zero Emission Initiative Reva Electric Car Company Limited New Generation Motors Electric drive system for two and three wheelers Twenty First Century Batteries 34 Manufacture of Electric Vehicle Lithium ion flexible polymer electrolyte rechargeable battery Green Building Initiatives 35 CII-GBC LEEDS – platinum rated Green Business Centre at Hyderabad Centre for excellence in energy/ environment First building outside USA and third in the world to achieve platinum rating Support for GBC set up and 2 years operations National Level Initiatives Energy Establishing Bureau of Energy Efficiency (BEE) Setting up of Green Business Centre (GBC) with CII Energy rating for electrical appliances - CERC Innovative structuring of ESCO projects Demand side management in utilities Greenhouse gas mitigation Demonstration of concept of coal washeries led to a Govt. policy on mandatory coal washing 36 National Level Initiatives Energy Capacity building of technology institutions Central Power Research Institute (CPRI) – Setting up of a laboratory for testing various transformer & power station characteristics at Bangalore Electrical Research & Development Association (ERDA) - Setting up of a short circuit laboratory & facilities for testing electrical appliances The Energy Research Institute (TERI) - Setting up of an instrument bank with calibration facility & creation of an energy efficiency advisory & training centre 37 Indian Army’s Green Governance Programme Implementing agency - Indian Army Environment Ecology Cell (IAEEC) Comprises of 25 sub-projects at select Indian Army locations in the following areas rainwater harvesting ground water rejuvenation construction of check dams treatment of water bodies waste management and wind energy harvesting at remote military outposts awareness initiative for school children on ecology at select sainik schools, military schools Indian Army’s Green Governance Programme Reduced water run-off and higher water percolation into sub-soil Increased water storage through artificially constructed lakes, check dams & bunds Increase in ground water table Assured water supply during peak summer Creation of environmental parks Reduced dependence on water tankers or municipal water supply for gardening or horticulture Better utilization of waste water with suitable treatment Improved awareness among school children on issues related to ecology & biodiversity Tata Power Environmental Sustainability Programme Support to Tata Power for its Environmental Sustainability Programme comprising Scaling up of existing energy-saving awareness initiative named “Tata Power Energy Club” A few renewable energy pilot projects Tata Power Energy Club is involved with sensitization of school children to spread the energy conservation awareness in their residential areas Tata Power has scaled up the initiative originally focussed on Mumbai to five other cities namely New Delhi, Pune, Ahmedabad, Bangalore & Kolkata besides launching campaigns on its website and in networking sites like Facebook Tata Power Environmental Sustainability Programme Renewable energy pilot projects in the area of Solar photovoltaic based LED lighting Solar-thermal based water heating and A hybrid solar-wind system Robin Age A weekly children’s newspaper exclusively written for children of 5-14 years of age and published by M/s Deep Prakash Encourages children back into the reading habit through content that is informative, interactive, engaging and fun Carries news & information current affairs, science, technology, sports, careers, culture Special focus on energy and environment activities, puzzles and projects Robin Age Grant assistance given to RobinAge envisages carrying an environment page in every alternate issue of RobinAge promote sensitivity and awareness about environmental issues amongst school children organise in-school workshops to introduce children to basic concepts of energy & environment publish a special issue on the occasion of ‘Environment Day’ (June 5) in 2009 organise child-to-child outreach programmes Finance to Green Projects 45 Projects in the area of Waste Management financed: Current assisted projects: Jindal Urban Infrastructure Limited sponsored integrated MSW processing plant at Timarpur and Okhla in Delhi 1,950 tonnes per day of MSW to be processed 20 MW of power production Bio-methanation unit