Faculty Advisor :-Dr. Vineet Chauhan

Submitted By :-Chirag Kalal (12bc00002)

Environmental Accounting Practices In

India

Discussion

Environmental Accounting Overview What is environmental accounting Why do environmental accounting What is an environmental cost

System Strategies Reactive, Proactive, Leadership

Business Purpose and Application Example - Cost Allocation

Methodologies

Environmental Accounting Overview

What is environmental accounting?

A flexible tool to provide information not necessarily

provided in traditional managerial systems.

Goal

Goal of environmental accounting is to increase the amount of relevant data for those who need or can use it.

“Relevant data ” depends on the scale and scope of coverage

Scale and Scope

Applicable at different scales of use and scopes (types) of coverage.

Application at an individual process level (production line), a system, a product, a facility, or an entire company level.

Coverage (focus) may include specific costs, avoidable costs, future costs and/or social external costs

Scale and Scope

Decisions on scale and scope of application significantly impact ability to assess and measure environmental costs

Process vs Facility

Discreet costs vs Hidden vs Contingent vs Image Costs

Why do Environmental Accounting ?

Environmental cost can be significantly reduced or eliminated as a result of business decisions.

Environmental costs may provide no added value to a process, system or product (i.e. waste raw material )

Environmental costs may be obscured in general overhead accounts and overlooked during the decision making process.

Why do Environmental Accounting ?

Understanding environmental costs can lead to more accurate costing and pricing of products.

Competitive advantage with customers is possible where processes and products can be shown as environmentally preferable.

Environmental Costs

Major challenge in application of environmental accounting as a management tool is identifying relevant costs.

Cost definition determined by intended use of data (i.e. cost allocation, budgeting, product/process design or other management decision support).

Environmental Costs

Types of Environmental Costs Conventional: material, supplies, structure

and capital costs need to be examined for environmental impact on decisions.

Potentially Hidden: Regulatory (fees, licenses, reporting, training,

remediation) Upfront and back end (site prep, engineering,

installation, closure and disposal) Voluntary (training, audits, monitoring and

reporting) Contingent: penalties/fines, property

liability, legal) Image: Relationship with employees,

customers, suppliers, regulators and shareholders

TATA Steel

Tata Steel monitors its overall raw material consumption per tone of Iron and Steel produced with the objective of conserving resources and reducing its ecological footprint.

Water Consumption

Water for industrial and domestic usage at Jamshedpur is mainly drawn from surface water resources.

In 2010-11 as much as 35% of the water was recycled as opposed to 21% in 2009-10. No source of water is negatively affected by withdrawal.

Energy Consumption

Tata Steel has seen a steady decline in its specific energy consumption. In 2010-11 the specific energy consumption at the Steel Works declined to 6.006 Gcal/tcs against 6.125 Gcal/tcs in 2009-10.

Carbon Reporting

GHG% of Overall Emissions

CO2 99.59%

N2O 0.37%

CH4 0.02%

Others 0.02%

Energy Conservation measures taken 

Waste heat recovery from Pressure Reducing & De-Superheating (PRDS) at Power House#5 resulted in additional 3 MW power generations.

Use of regenerative burners for lean gas (i.e., Blast Furnace Gas) at 3rd reheating Furnace of Hot Strip Mill.

Modification in LD gas export system, which has resulted in higher LD Gas recovery.

Execution of interconnection of Praxair 1 & 2 Plants to reduce Oxygen delay at Steel Making stage.

Efficient use of by-product gases for Power Generation.

Higher availability of Top recovery turbine for Power Generation.

Impact of these measures Energy Conservation measures during 2010-2011 has

resulted in achieving:

Lowest ever Plant Specific Energy Consumption - 6.006 Gcal/tcs.

Lowest ever middling consumption - 14.16 kg/tcs.

Highest ever LD Gas Recovery - 50,697 Nm3/hr

Lowest ever Plant Power Rate - 356 kWh/tss

Highest ever combine boiler efficiency - 85.13%

Lowest ever Fuel rate at Hot Strip Mill - 0.292 Gcal/t.

Higher Power generation through Top Recovery Turbine - 16.01 MW.

Plantation & Conservation

Jamshedpur Township where the Steel Works is located has maintained a rich green cover.

Solid Waste Management

Various initiatives are underway to address Tata Steel’s current challenges improving the utilization of solid waste. Utilization of LD slag has been a major challenge and many initiatives such as use in cement manufacturing, construction metal, pavement block making, soil conditioner etc have been taken up by Tata Steel.

Steel Authority of India Limited

Control of Water Pollution

Water pollution is a major environmental concern today that adversely affects the surroundings, causing serious injury to the environment as well as human health.

Power Plant: DM plant wastewater is treated in the neutralization pit. After treatment, the water is reused for wet ash handling system.

Submerged Arc Furnace: Waste water is reused for slag cooling and dust suppression.

Sewage Treatment Plants (STP): Three sewage treatment plants (combined capacity 3050 KL/ day) have been installed. The treated water is 100% reused for horticulture and green cover.

Control of Air Pollution

In DRI Kilns, the dust Settling Chambers and ESPs (Electrostatic Precipitators) have been installed to control process emissions. Fugitive dust is controlled through multiple point suction hoods attached to bag filters. Dry fog dust suppression system is provided at required places.

In Sinter Plant, a centralized de-dusting system with an Electrostatic Precipitator is installed for dust control in the raw material handling area. Additionally high capacity ESP also exists to control process emissions.

In Blast Furnaces, the gases are cleaned through cyclone and two-stage venturi scrubber (Gas Cleaning Plant).  Pulse jet and invertible bag filters have been installed to control emission from the stock house and cast house.

Solid Waste ManagementPower is generated from coal rejects,

fines and middlings in AFBC boilers.Slag generated from blast furnace is

100% reused in cement manufacturing and brick making.

Tailor made Sinter plant to utilize 100% mill scale and flue dust generated in mills and blast furnace.

SMS slag is used for road making.