By Rachna Kango
India ranks third in global electronic waste generation, producing 1.71 million metric tonnes of e-waste annually. Apart from discarded electronic products, the country generates massive amounts of waste across food, agriculture, mobility, rare earth metals, construction, and fashion. However, the aim to achieve net-zero carbon emissions by 2070 will come to reality only if India can successfully mitigate its waste production and increase recycling to cut down pollution. As a result, the country has geared up to transform its traditional take-make-waste consumption model into an environment-friendly circular economy to encourage sustainable development.
How does a circular economy benefit waste management?
A circular economy focuses on minimising waste and maximising product longevity through reusing, repairing, recycling, and refurbishing. It aims to optimise product utilisation and promises savings of over $624bn by 2050. Though the concept is still in its infancy in India, it can reduce greenhouse gas emissions by 44% by 2050 and retain more value from resources, products, and materials. It will consume fewer natural resources, produce less trash, boost the local economy, drive employment through a competitive industrial model, and reduce reliance on imported raw materials for manufacturing goods.
However, lack of awareness, poor recycling infrastructure, supply chain limitations, lack of investment incentives, and rigid consumer behaviour can act as roadblocks to India's transformation to a circular economy- this is where ESG comes into play. Environment, Social, and Governance (ESG) initiatives are defined standards that corporate bodies integrate into their business strategies to showcase their social and environmental responsibilities and increase credibility, sustainability, financial stability, and compliance. Let's understand how ESG can empower companies to adopt a circular economy and how it may lead to a zero-waste society.
Role of ESG in promoting a circular economy
The ESG framework manifests a company's social and environmental commitment, simultaneously encouraging investment in sustainable business practices. India can likely attract $1 trillion towards top ESG priorities by 2030, capitalising measures against the risks of depleted resources, supply chain disruptions, unskilled workforce, and reputational damage.
Since 46% of investors want to etch a positive environmental impact, ESG investing can incentivise companies to achieve a zero-waste society through a circular economy. Instead of generating unwanted trash, companies will strive to minimise waste and use materials at the end of the product lifecycle as valuable resources. The practice of refurbishing, in turn, will vacate landfills, boost the local economy, promote small-scale industries, and protect the environment from hazardous waste.
Furthermore, ESG investing will catalyse the envisioned net-zero carbon emissions by incorporating circular principles into business strategies, government initiatives, and at individual levels. ESG will ensure a sustainable, transparent, and scalable business model that will move the burden of waste management from consumers, employees, investors, and other stakeholders to the hands of the primary waste creators.
However, a circular economy is not the responsibility of corporate players alone. Since its inception, companies have been combatting challenges such as lack of awareness, reluctance to change, and inadequate infrastructure to transform their production cycle. In this scenario, public-private partnerships can take the following measures to convey the benefits of a closed production loop and implement the recycling culture in their business processes.
How will India embrace the culture of a circular economy?
The Government of India has realised the importance of a circular economy in facilitating the country's sustainable growth. Hence, it has been actively formulating policies and initiatives to drive waste management and overcome the challenges regarding utilising waste as a resource.
Regulatory policies like the Battery Waste Management Rules, Plastic Waste Management (Amendment) Rules, and e-Waste Management Rules 2022 have set the target waste production and disposal standards for manufacturers, producers, importers, and consumers. It has also made Extended Producer Responsibility (EPR) certificates mandatory for companies to pursue transactions between stakeholders.
The Indian government also formulated plans across electronics, lithium-ion batteries, end-of-life vehicles, and scrap metals to promote secondary material recycling. Moreover, it announced the Gowardhan Scheme in the Union Budget 2023, investing Rs.10,000 crore in building infrastructure to support the country's circular economy.
As more companies adopt circular practices, the demand for skilled labour will spike up who can design, manage, and repair easily recyclable products. Accordingly, companies should invest more in training employees and spreading awareness about product development best practices. Furthermore, the need for efficient product designers, specialists, and labourers will also catalyse the growth of startups and small local businesses. They will create job opportunities for manufacturing, supply chain and logistics, research and development, repair and maintenance, and education and training to assist industry players in streamlining their circular workflows.
Way forward
India strives to pursue an inclusive and sustainable growth trajectory to become a $5 trillion economy by 2025. Accordingly, the government adopted multiple large-scale national initiatives like the 'Waste to Wealth Mission' to promote effective waste and pollution management. A circular economy is the need of the hour to encourage recycling, refurbishing, and reuse of end-of-life products and minimise discards. Aligning with their ESG principles, companies should integrate waste management practices, infrastructure development, and employee training programs into their corporate culture to attract investments and witness steadfast growth. Such initiatives will mitigate risks, build consumer trust, and showcase their commitment towards better social and environmental health in the near future.
Authored by
(Rachna Kango, Director: Strategic Marketing, Delta Electronics India)
No comments:
Post a Comment