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Interview with Dr. J. J. Irani

We have launched the climate change initiative because we believe it is the right thing to do. As the leading industrial house in the country, we need to take the leadership in making business sensitive to environmental concerns. Group Chairman Ratan Tata has called for a concerted drive to inculcate awareness of climate change and initiate measures for containing environmental damage in all Group companies.

In an interview, Dr. Jamshed J Irani, Chairman of Tata Quality Management Services, explains what it involves...

How grave is the situation caused by the changing climate? How much of the panic do you think is politically provoked?
Everyone who has seen the film by Al Gore, An Inconvenient Truth, will realise the danger is very real and certainly not politically motivated. I think most people would agree with me on this account. Recently I had a very interesting conversation with Tony Blair where he raised the same points. Climate change issues may not win elections but there is no doubt that it is a reality. Politicians may not accept it because it is inconvenient!

What is your perception of India’s role in this situation?
India has an important role to play. We are a big country and we can make a difference to climate change but we have to leapfrog the stages of development that other countries have been through. Today the situation is such that India and China are trying to catch up with the west on development and growth. We want to be on the same train as the rest of the developed world but we cannot do it unless those countries offer us a helping hand. By helping hand, I mean the existing clean technologies should be easily accessible to countries like India and China so that we don’t have to grow at the cost of climate.

Do you see any major differences in the Indian position on climate change and that of the rest of the world?
No, I don’t. India has the same concerns as everyone else. However the Chinese have an interesting way of putting this: they say that a clean environment is important but development is more important. I think the solution is to make cleaner technologies, such as nuclear power, more accessible and affordable.

Do you think carbon credits serve a purpose?
Carbon credits are a temporary solution. It does encourage the less developed countries to come up with clean technologies but it also discourages the polluting nations from changing their ways. The developed countries are throwing out their rubbish and paying the rest of the world to pick it up. The fact that the rubbish is being generated at all is in itself repugnant. All one can say about carbon credits is that something is better than nothing.

What is your perspective on the climate change initiative you are mentoring in the Tata Group?
We have moved a long way in social change, in corporate social responsibility, in looking after different communities, in employee benefits, and in sharing our wealth with all our stakeholders but, not as much in climate change. Others, like the Godrej group, are doing a lot more. So far only one of our companies, Tata Consultancy Services (TCS), has said that it will follow the green buildings standard in all its offices. From now on, the rest of the Group will do the same.

What should be the Group’s role in the worldwide movement for mitigating the impact of climate change?
We should be a part of it. We should join those who are already working on it. We have launched the climate change initiative because we believe it is the right thing to do. As the leading industrial house in the country, we need to take the leadership in making business sensitive to environmental concerns.

How do you think the Group should treat this initiative?
We have to treat it like the quality movement was treated within the Tata Group. We did it because we believed that we could not stand back and let someone else look after quality issues. We are mandating all our companies, through the Tata Code of Conduct, to be conscious of the impact of their actions on climate.

How do you see the movement shaping up within the Group?
We have to aspire to be leaders in climate change. As our Chairman has said, everyone has to be concerned. We have already set up a steering committee and a working group to guide us. The best way would be to follow the model that has been used for quality and business excellence. It has taken Tata Quality Management Services almost 10-15 years to spread awareness about business excellence, but today it has become ingrained within all Group companies. What has taken us 15 years to achieve in business excellence, we have to do for climate change in two years. If we do that, then we can proudly say that the Tatas are at the forefront of climate change.

What will be the role of the senior management in all of this?
The senior management at Tata Group will have to lead from the front. They have to volunteer to be a part of the climate change initiatives and guide people in the different ways in which the crisis can be tackled.

What are the changes the Group companies would have to undergo as part of this initiative?
The first step is that we have to know our carbon footprint. For this, we have engaged two consultants: Ernst & Young, and McKinsey. There are two phases to this journey. We start by measuring our carbon footprint and Ernst & Young is doing that. This exercise will point us to the starting line. In another three to four months, we will know where we are, at least in the case of our major companies. Once we do that, we can study global best practices in these areas and set benchmarks. In the second phase, we will engage with McKinsey, which will chart out a roadmap for reducing our carbon footprint. We could have done this on our own through trial and error but it would take us a long time. I feel we should seek to learn from the experience of others.

Which are the companies that have been identified for the first phase?
We have decided to start with five major companies that contribute to 80 per cent of the Group’s carbon emissions— Tata Chemicals, Tata Motors, Tata Steel, Tata Power and Tata Consultancy Services. Just as these companies have led the way in the quality movement, so will they provide leadership to other companies on the climate change initiative. The big boys must take the lead and then they can help the rest.

Do you consider the costs incurred on such activities as an expense or an investment?
Obviously it is an investment. In this case, we are not just protecting the environment, we are helping make all our lives better. All efforts towards climate change mitigation must become a way of life for us. The disadvantage is, as Tony Blair says, what you do does not show an immediate positive impact. But we can’t say that because we can’t see the results right away, we won’t do it at all.

In lay person’s terms, how will this initiative benefit us all?
The first thing we must realise is that what we do today may not lead to instant results. We are working for a better future for our children. The consequences of doing nothing at all — or doing the wrong things — are there for everyone to see. If you visit some of the world’s most polluted cities, such as, say, Sao Paolo or Beijing, you will see people walking around with gas masks. The question we need to ask is, do we want our children to wear gas masks just to breathe better?





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