As industries worldwide shift towards sustainable practices, leading companies are redefining their approach to energy consumption and environmental responsibility. Marico Limited stands at the forefront of this transformation, having achieved 67.4% of its energy requirements through renewable sources and significantly reduced its greenhouse gas emissions. With a commitment to achieving Net Zero operational emissions in India by 2030 and globally by 2040, the company is pioneering innovative solutions such as bio-based fuels, smart energy management, and sustainable packaging.
In this exclusive interview with TheCSRUniverse, Amit Bhasin, Chief Legal Officer, Group General Counsel, and Secretary of the CSR Committee at Marico Limited, shares insights into the company’s sustainability journey, key challenges, and strategic roadmap for a greener future.
Read below as he discusses Marico’s transition to renewable energy, carbon neutrality initiatives, and the role of governance in ensuring long-term environmental impact.
Q. Marico has achieved 67.4% of its energy requirements through renewable sources. What were the key challenges faced during this transition, and how were they addressed?
A. At Marico, we view our entire business operations through the lens of sustainability and have always strived to uphold the ideals of People, Planet and Profit. Our approach is based on conscious capitalism and is driven by a purpose focused on making a difference. We strive to leave a lasting impact in the lives of our stakeholders and the environment. As part of our commitment to creating a sustainable future, we have made net zero and energy conservation a critical component of our agenda. We recognize the importance of reducing our carbon footprint and are dedicated to implementing environmentally friendly practices throughout our operations. By prioritizing sustainability, we aim to not only minimize our impact on the planet but also contribute to a better world for generations to come.
Our transition to renewable energy sources has been a deliberate and strategic effort. One of the challenges was increased energy requirements due to capacity expansion of our Perundurai unit, which we addressed by entering into a Power Purchase Agreement (PPA) with a service provider through a solar group captive model. Our solar installations at Sanand unit have created 1MW renewable power used for our operations. These initiatives demonstrate our commitment to overcoming the challenges associated with transitioning to renewable energy sources, ultimately achieving a significant reduction in our carbon footprint.
Q. The shift to bio-based briquettes has been a significant milestone. Can you elaborate on the operational and environmental benefits this transition has brought to Marico's facilities?
A. Our transition to bio-based briquettes has been a remarkable achievement, resulting in us meeting more than 90% of our operational thermal energy needs from renewable sources. We started using bio-based fuels long back in FY 2001-02 in the Jalgaon unit in Maharashtra. This shift has brought significant operational and environmental benefits to our facilities. One of the notable benefits is the reduction in greenhouse gas (GHG) emission intensity, which has led to a steady decrease year-over-year, enabling us to over-achieve the set emission reduction targets, despite a growing manufacturing footprint. The use of bio-based briquettes as a clean fuel has been instrumental in achieving this reduction.
Our Perundurai facility, which has been externally certified as 'carbon neutral' for the fourth consecutive year, operates almost entirely on renewable energy sources, further emphasizing the environmental benefits of this transition. The facility's smart energy installations also enhance operational efficiency, demonstrating the operational benefits of this shift. Overall, the transition to bio-based briquettes has been a significant milestone for us, bringing both operational and environmental benefits that align with our commitment to sustainability.
Q. What are the primary steps Marico is taking to achieve its Net Zero operational emissions target by 2030 in India, and how do you plan to extend this framework to global operations by 2040?
A. Our commitment to achieving Net Zero operational emissions (owned manufacturing facilities) in India by 2030 and globally by 2040 is driven by a multi-faceted approach to reduce our carbon footprint. Firstly, we are investing in low-carbon technologies that enable us to improve energy efficiency and reduce emissions across our manufacturing units. Additionally, we plan to transition to renewable energy sources to power our operations, which will significantly reduce our dependence on fossil fuels and lower our greenhouse gas emissions. Residual energy needs will be met with purchase of open-source renewable energy. Furthermore, we engage in carbon forestry initiatives, which help offset any remaining emissions and promote sustainable land-use practices. Thus, we aim to completely phase out fossil fuel usage from our operations, replacing them with cleaner, more sustainable alternatives. By implementing these measures, we are confident that we can achieve our Net Zero operational emissions target in India by 2030 and extend this framework to our global operations by 2040, creating a sustainable and environmentally responsible business model that benefits not only our organization but also the communities we serve.
Q. The Perundurai facility has been certified as ‘carbon neutral’ for four consecutive years. What specific strategies and technologies have contributed to this achievement, and how do you plan to replicate this success across other facilities?
A. The Perundurai facility's achievement of being certified as 'carbon neutral' for four consecutive years is a testament to our commitment to environmental sustainability. Several specific strategies and technologies have contributed to this achievement.
The Perundurai facility requires energy for thermal and electrical purposes. By converting our fuels to bio-based briquettes, we have avoided use of fossil fuel in thermal applications. We have installed solar roof top panels for electricity generation and we also purchase electricity from external wind power suppliers. Thus, almost 95% energy is met with renewable energy sources and remaining emissions are offset with buying equivalent carbon credits. To replicate this success across other facilities, we plan to leverage the experience and expertise gained from the Perundurai facility. This includes transitioning to renewable energy sources, implementing energy-efficient technologies, and exploring innovative afforestation initiatives. By adopting a similar approach, we aim to achieve 'carbon neutral' status across our other facilities, contributing to a more sustainable future.
Q. With Marico achieving a 79% reduction in direct GHG emissions compared to FY13, what initiatives have been most impactful in achieving this milestone, and how do you plan to offset the remaining 7% emissions?
A. Our India business commits to reduce Scope 1 and Scope 2 GHG emissions (in owned manufacturing facilities) by 93%, and offset remaining 7% emissions through sequestration, and carbon offset by 2030, from the baseline year FY13. We have categorised our manufacturing profile, based on our climate-action potential to ensure cross-functional capacity enhancement and successful completion of targets with no major business barriers caused in the process. To further drive our net zero agenda, a systematic GHG inventory is maintained to identify and quantify all direct and indirect emissions from our operations and value chain. With an aim to gradually imbibe each of our units into the transitional pathway of carbon neutrality, we strive to optimise its energy footprint and invest in low-carbon technology to minimise operational emissions. We are actively adopting renewable sources of energy to meet operational requirements and opt for local carbon sinks to enable carbon sequestration.
Q. How does the central energy management cell monitor and enhance energy efficiency across Marico's facilities, and what role does smart energy technology play in this process?
A. We have developed a central energy management cell to work on a defined energy reduction strategy, in conformance with our business goals and targets set for every year. Energy monitoring systems accurately capture the minutest opportunities for reducing our operational footprint. Through a set of strategically designed ideation sessions, energy management projects are executed throughout the year. Every change in process and equipment is checked against accepted standards for energy consumption to facilitate action and prudent decision making.
Q. As part of your Sustainability Vision 2030, how is Marico addressing sustainable packaging and waste reduction, particularly in the context of a circular economy?
A. Our Sustainability Vision 2030 encompasses a multi-faceted approach to address sustainable packaging and waste reduction, embedding circularity principles into our operations. We aim to achieve 100% recyclable packaging by 2030 and plan to phase out hazardous substances like PVCs. We also intend to incorporate at least 30% recycled post-consumer resin (r-PCR) into our packaging portfolio where applicable. In FY24, we have achieved 95.30% recyclable packaging by weight across product portfolios, with less than 1% PVC in packaging. Furthermore, we are also exploring ways to incorporate recycled plastics into our packaging to reduce our environmental footprint. Our Upcycle programme is designed to integrate circularity principles and key performance metrics within our overall packaging portfolio. To drive circularity, we have established a set of 9 opportunity levers to accomplish our 2030 goals.
To further amplify our circularity-based interventions, we have joined the India Plastics Pact, a collaborative platform created by CII. As a founding member, we are committed to transforming the linear plastics system into a circular plastics economy. The Pact has outlined a 2030 roadmap for achieving quantifiable and aspirational targets, including accelerating business innovations, driving circularity, and delivering significant GHG reductions. By adopting a holistic approach to sustainable packaging and waste reduction, we are committed to pushing the boundaries of innovation to develop sustainable solutions that go beyond regulatory compliance. Our participation in the India Plastics Pact reinforces our commitment to a circular economy and our vision for a world where plastic is valued and does not pollute the environment.
Q. How does Marico integrate environmental responsibility into its governance structure, and what measures ensure accountability across the value chain?
A. We integrate environmental responsibility into our governance structure through a robust framework centred on leadership-driven initiatives and cross-functional accountability. The company has established a Global ESG Council, led by MD and CEO Saugata Gupta, and comprises of senior leadership across functions, to spearhead its sustainability agenda. This council is responsible for aligning Marico's environmental, social, and governance (ESG) goals with its strategic vision, ensuring that sustainability remains a core component of decision-making and long-term planning. Our Board provides able guidance on implementing a robust sustainability governance structure and best-in-class practices. Under our ESG 2.0 framework, which serves as a launchpad to the next Decade of Action (2030), the company drives impactful interventions in key areas such as net-zero emissions, responsible sourcing, water stewardship, and inclusivity and diversity. This framework ensures accountability across the value chain, with a relentless focus on sustainable value creation and long-term win-win for all stakeholders.
Q. Do you believe Marico’s sustainability journey can serve as a model for other FMCG companies? What advice would you offer to peers in the industry to transition to cleaner energy sources and achieve carbon neutrality?
A. We firmly believe that integrating sustainability into the company’s culture and strategic decision-making is essential to build a robust sustainability governance structure. It is crucial to engage the Board, Senior leadership team and stakeholders throughout this process. Key steps towards achieving carbon neutrality include investing in renewable energy, optimizing energy efficiency, and promoting sustainable practices across the value chain. Additionally, adopting a circular economy model, implementing sustainable packaging solutions, and supporting biodiversity conservation can further accelerate the transition to a cleaner, and more sustainable future.
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