Sustainability is crucial in India's logistics domain as businesses increasingly embrace sustainable practices to reduce their carbon footprint, optimise supply chains, and contribute to a greener future. This not only aligns with global environmental goals but also enhances brand reputation, attracts environmentally conscious customers, and ensures long-term business viability.
It is within this context, TVS ILP, a leading corporate developer in the logistics parks segment, has made significant progress in implementing sustainability initiatives and establishing new industry standards.
In a special interview with TheCSRUniverse, Mr. Manikandan Ramachandran, COO, TVS ILP, discusses the company's commitment to sustainability and its pioneering efforts in the logistics parks segment. He highlights the growing importance of sustainability in the Indian logistics industry and the company's achievements, including the EDGE certification and goals for carbon footprint reduction, renewable energy utilisation, and "Net Zero" water status. He also emphasises the significance of collaborating with communities, prioritising education and skill development, and leveraging automation and data analytics to optimise logistics operations.
To gain further understanding of the significance of sustainability and the latest trends in the warehousing and logistics industry, read the full interview below.
From your perspective, what role does sustainability play in shaping the future of the logistics industry in India, and how is TVS ILP positioning itself to stay ahead of the curve in terms of sustainability practices and innovation? What is your long-term sustainability goal?
Sustainability is increasingly becoming an important factor in shaping the future of the warehousing and logistics industry in India. With the growing focus on environmental and social responsibility, businesses in the logistics industry are expected to incorporate sustainable practices into their operations to reduce their carbon footprint and improve resource efficiency.
TVS ILP has already achieved the EDGE certification, which is a testament to the company's commitment to responsible growth and reducing its carbon footprint. The company aims to continue developing and managing green warehouses that incorporate sustainability concepts and achieve further international certifications such as EDGE Advanced and EDGE Champion from the IFC. This commitment to sustainability is deeply embedded in the company's DNA and reflected in its ongoing sustainability strategy and initiatives.
We want to further reduce our carbon footprint by exploring renewable energy utilization, achieving "Net Zero" water status, and adopting ESG reporting standards such as GRI and CDP. By setting such goals and implementing sustainable practices, TVS ILP aims to be a leader in the logistics industry in India, demonstrating that sustainable practices can be an integral part of the industry's growth and success.
How does the company prioritise sustainability across its business operations, and what are some of the key CSR initiatives that align with the company's broader CSR philosophy? Can you also share the impact of these initiatives?
TVS ILP prioritizes sustainability across its business operations by incorporating sustainable practices in its day-to-day operations, implementing green initiatives, and adopting sustainability as a part of its business strategy.
One of the key CSR initiatives of TVS ILP is its commitment to education and skill development, which aligns with the company's broader CSR philosophy of creating a positive impact on society. We also have our focus on environmental sustainability. The company has implemented several green initiatives, such as the installation of sewage treatment plants, water-saving technologies, rainwater harvesting structures, and waste management systems. These initiatives have resulted in significant energy and water savings and a reduction in embodied energy when compared to conventional structures.
The impact of these initiatives is significant, as they contribute to the development of local communities and the creation of a more sustainable logistics industry in India.
What challenges has TVS ILP faced in implementing these CSR initiatives, and how have you overcome them?
Implementing CSR initiatives is not always an easy task, and TVS ILP has faced a few challenges in this regard. One of the major challenges we have faced is changing the mindset of stakeholders and employees towards sustainability. It can be challenging to convince people to adopt sustainable practices and to make sustainability a part of their daily routine.
To overcome these challenges, we have implemented a number of strategies. One strategy has been to invest in employee training and awareness programs to ensure that our employees are well-informed about sustainability and understand its importance.
Additionally, we have adopted a phased approach to implementing our sustainability initiatives. This has allowed us to make progress in a structured and gradual manner, while also ensuring that we are able to balance our sustainability goals with our business goals.
What sets TVS ILP apart from other logistics companies in terms of its sustainability efforts, and how has the company's focus on sustainability impacted its business?
TVS ILP's commitment to sustainability is a core aspect of its business strategy and operations. The company's continued efforts to incorporate sustainability practices have resulted in significant benefits such as reduced carbon footprint, increased efficiency, and cost savings. As a result, sustainability has become a fundamental part of TVS ILP's DNA, and the company strives to maintain and expand its efforts towards sustainability through various initiatives and programs.
The company has also implemented several green initiatives, including water-saving technologies, rainwater harvesting structures, and waste management tie-ups, resulting in 50% fresh-water savings, 45% energy savings, and a 67% reduction in embodied energy compared to conventional structures.
Our focus on sustainability has also helped it to attract and retain customers who are increasingly interested in partnering with companies that prioritize sustainability. Furthermore, TVS ILP's sustainability efforts have helped it to mitigate risks associated with climate change, such as water scarcity and extreme weather events, and position itself as a responsible and forward-thinking company in the eyes of stakeholders.
What metrics is the company using to measure and report on its sustainability performance, and how is the company tracking its progress?
To stay ahead of the curve, TVS ILP is using both internal and external metrics to measure and report on its sustainability performance. The key metrics used include energy performance, water performance, waste recycling rate, indoor environment quality, and stakeholder feedback from clients/tenants, employees, community, and investors.
The company's sustainability initiatives have resulted in significant resource savings, including 11.6 million units of energy saved per year, 722.65 millionlitres of water saved per year, and 7,800 tons of carbon saved per year.
To track its progress, the company regularly measures and evaluates its performance against these metrics and sets targets for improvement. The company also engages with stakeholders to gather feedback and ensure continuous improvement in its sustainability efforts. By tracking its performance and using feedback to guide its initiatives, TVS ILP is able to stay on track and continuously improve its sustainability practices.
What are your thoughts on the emerging trends that could affect sustainability in the logistics industry in India, and how has TVS ILP positioned itself to leverage these trends while maintaining its focus on sustainability? Based on your experience, what advice would you give to other logistics companies looking to enhance their sustainability performance?
The trends in the logistics industry in India, such as the National Logistics Policy, the rise of cross-border e-commerce, and the increasing focus on green logistics, are all critical factors that could affect sustainability in the industry. TVS ILP has positioned itself well to leverage these trends while maintaining its focus on sustainability.
We have taken several steps to reduce its carbon footprint and increase sustainability. For instance, the company has adopted renewable energy solutions and installed solar panels at its warehouses to generate clean energy. The company has also taken steps to expand its operations in key regions to take advantage of the National Logistics Policy's benefits. TVS ILP's focus on green logistics aligns well with the growing demand for sustainable delivery options in the e-commerce sector.
Sustainability is no more an option and logistics players need to focus all their energies to ensure that the industry becomes increasingly conscious of this. It is a critical factor for not juts companies themselves but also customers, the government and investors. Companies can start by assessing their carbon footprint and identifying areas for improvement. Adopting renewable energy solutions, using electric vehicles, and implementing waste reduction initiatives can help reduce the environmental impact of logistics operations. Additionally, logistics companies can collaborate with customers and suppliers to implement sustainable practices across the entire supply chain.
What impact do you expect emerging technologies like automation and data analytics to have on the sustainability of logistics operations, and how is TVS ILP leveraging these technologies?
By reducing the reliance on manual labor, automation can help reduce the carbon footprint of logistics operations. Similarly, data analytics can help optimize supply chain networks, reducing waste and emissions.
At TVS ILP, we are leveraging these technologies to improve our sustainability performance. As our ‘Built-to-suit’ model, we customize our warehouses as per the needs of our customers. For instance, in one of our warehousesin Hosur, we made an automation-enabled Building Management System which leads to reduced wastage of electricity and water.We have also invested in data analytics tools to improve the efficiency of our supply chain operations, reducing the distance traveled by our vehicles and thereby controlling emissions.
What role do you see collaboration and partnerships playing in promoting sustainability in the logistics sector, and how are you working with other companies and organizations to achieve this goal?
We have recognized that we cannot achieve our sustainability goals alone, and that working with other organizations, bodies and the government is crucial for creating lasting change.
We collaborate with our clients and suppliers to promote sustainability across the supply chain. We encourage our clients to adopt sustainable practices and work with our suppliers to ensure that they share our commitment to sustainability.We look forward to collaborating with other peers in the space to promote sustainability as an industry norm and share best practices. Our continuous collaboration with authorities and the government can help us navigate through challenges, leverage each other's strengths, and create lasting change that benefits the environment and society.
How can logistics companies effectively balance sustainability with cost and efficiency considerations, and what strategies is TVS ILP using to achieve this balance?
It is very important to create a balance between cost and efficiency when it comes to sustainability. We believe that sustainability and cost-efficiency are not mutually exclusive, but instead are two sides of the same coin.
We adopt a circular approach that emphasizes reducing waste, reusing and recycling materials wherever possible. We also look for opportunities to recover and repurpose energy, water, and other resources, which not only reduces waste but also leads to cost savings.
Additionally, we work closely with ourcustomers to understand their sustainability goals and tailor logistics solutions accordingly, collaborating with them to find ways to reduce environmental impact while maintaining cost-effectiveness. By taking a proactive approach to sustainability and integrating it into all aspects of its operations, TVS ILP has been able to achieve a balance between sustainability, cost, and efficiency, and believes that other logistics companies can do the same by prioritizing sustainability and implementing innovative solutions.
What are TVS ILP's future plans for expanding its CSR initiatives and further reducing its environmental impact?
Ans: TVS ILP has a strong commitment to its CSR initiatives, and we plan to continue expanding our initiatives in the future. In line with our mission of becoming a carbon-neutral company, we plan to explore on-site and off-site renewable energy utilization to further reduce the carbon footprint of our warehouses. We also aim to achieve a "Net Zero" water status by enhancing our rainwater harvesting and recycling initiatives. Additionally, we plan to assess and report our ESG performance using ESG standards such as GRI and CDP.
In terms of CSR initiatives, we plan to continue our efforts to support the communities in which we operate, including expanding our education and healthcare initiatives. We will also continue to work towards our goal of 100% employee safety and well-being. Overall, our goal is to continue to innovate and develop sustainable solutions for the logistics industry while minimizing our environmental impact and contributing positively to society.
