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Environmental rating - Shanmugam IAS academy in coimbatore
Environmental rating


What’s in news?

Environment minister Prakash Javadekar releases rating report in New Delhi. This is the 7th industrial sector to be rated by GRP.

Key data’s:

  • As the Indian fertilizer industry is one of the most important industrial sectors of the country, Centre for Science and Environment (CSE) and its Green Rating Project (GRP) doing the unique rating and study involves a comprehensive and extremely detailed analysis of a key industrial sector and its environmental performance in the country.
  • The report titled as “Grain by Grain”, which gives the complete assessment of the environmental performance of the fertilizer industry in India.
  • In this study, it is found that, Indian fertilizer sector to be among the best in the world in energy use and GHG emissions. But its record on water use, water pollution and plant safety are a cause for concern. 
  • This is the 7th rating project undertaken by GRP, which has been hailed as one of the most credible and transparent instruments in India for assessing the environmental performance of Indian companies.
  • In an extensive 18-month long process, the fertilizer sector was rated on more than 50 parameters.
  • The rating covered all the 28operational plants in the country.
    • Fifty-seven per cent of the plants voluntarily participated in the rating by disclosing information and by allowing GRP team to verify them on the site.
    • The remaining plants were rated on the basis of information available in the public domain and stakeholder surveys. For instance, NFL and IFFCO, the biggest public sector companies, refused to voluntarily participate in the rating. 
  • The overall score achieved by the sector was a respectable 42 per cent, and we have awarded it the Three Leaves prize.
  • The top-rated plant is Grasim Industries Ltd’s Indo Gulf Fertilisers unit at Jagdishpur, Uttar Pradesh. This plant was given superior performance in energy use and GHG emissions, its good EHS (environment, health and safety) measures, and social responsibility, and above all, its transparency in sharing information. 

GRP rating tells us the following;

  • India’s fertilizer industry has performed well in curtailing its energy use and GHG emissions. In fact, some of our companies match the global best levels.
  • The rating finds that this sector has slipped on its water consumption and water pollution parameters.
  • These plants are also getting affected simply because of lack of water. Their water sources are getting depleted and disappearing very fast.
  • Incentives determine performance.
  • No incentives are offered for innovation.
  • The industry contributes to two major environmental challenges– imbalance in the nitrogen cycle and climate change. 

Green Rating Project (GRP):

  • GRP is a unique programme started in the year 1997, that rates Indian industry for its environmental performance. It is regarded as India’s only independent, rigorous and credible programme of its kind. 
  • GRP has, earlier, rated the pulp and paper, automobile, chlor-alkali, cement, iron and steel and thermal power sectors
  • The Green Rating Project (GRP) act as an independent watch-dog on the environment performance of Indian companies.
  • It is one of the very few public-disclosure projects in the world in which a non-governmental organisation rates the environmental performance of industries and makes the results public.
  • The ratings recognize the good performers and push the bad ones to improve.
  • The rating process is robust and transparent and the outcomes of our ratings have been used by companies as well as policymakers to improve policies and practices.


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