Rating Parameter

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Raw material sourcing phase
To rate the companies on the raw material sourcing phase, grp used the following indicators: the quality of input salt, transportation of salt, self-sourcing of water (water harvesting) and the use of renewable and clean fuels.

The Indian caustic-chlorine industry has performed poorly in this parameter, not because the sector is very polluting but because it could have been far cleaner than what it is today. Compared to industries like pulp and paper and automobile (earlier rated by grp) the impact of caustic-chlorine industry is insignificant. Still, there is vast scope for improvement. For instance, Indian companies can meet their water needs by undertaking water harvesting within the plant. But only three of the 22 companies do so. Others still rely on groundwater, though many of them are located in water-scarce areas. Similarly, despite the potential of meeting about 30 per cent of the energy requirement from hydrogen (which is produced as a by-product and is one of the cleanest fuels), none of the Indian companies use it as a fuel. In fact, companies prefer to vent hydrogen (about one-third of the total hydrogen produced is vented).

The quality of salt sourced is also very poor. This leads to high pollution at the production plant, including substantial increase in toxic mercury pollution. Though the possibilities to use better quality salt exist, companies are only happy to buy cheap and impure salt from the unorganised sector. This in turn increases toxic pollutants inside the production plant. Worse still, the sector transports this salt from as far as 500 km (average transportation of the sector) releasing as much as 90 kg carbon dioxide to produce one tonne of caustic soda.

Companies discount salt conservation, as the cost of the salt is very low. Though this has little economic implication, it has high environmental cost as salt released from the plant -- mainly through rainwater during rainy seasons -- has great potential to contaminate both soil and groundwater.

These are the reasons why the Indian caustic-chlorine sector has scored just 20.9 per cent marks. Even the best company, Shriram Alkalis & Chemicals Ltd, achieved only 41.4 per cent marks. The scope for improvement is enormous but the aspirations of companies seem very low. This will have to change if companies want to survive in a competitive world.

Product use and disposal phase

When released into the environment, caustic-chlorine products like chlorine, hydrogen and caustic soda can cause serious damage to the environment and human health. However, chlorine and chlorinated compounds, that drive the caustic-chlorine sector worldwide, are far more dangerous. They have been linked to diseases like cancer, and could be leading to fertility-related problems.

To counter this threat, companies worldwide are working towards chlorine product stewardship, whereby a company ensures that there is almost negligible pollution from the cradle to grave of a product. Sadly, Indian companies have no clue about product stewardship. Similarly, even as companies worldwide, under pressure from environmental groups, are moving away from investing in pvc, Indian companies' dream is to invest in pvc. No wonder the Indian caustic-chlorine sector has performed poorly in product use and disposal phase obtaining just 21 per cent marks. Even the best company, Indian Petrochemicals Corporation Ltd, has just scored 36 per cent marks.

The sector has done reasonably well in in-plant product use and disposal management, but has fared poorly in 'extended responsibility and product stewardship'. For instance, most companies sell contaminated sulphuric acid, a by-product, at throwaway prices to informal sectors, which uses it very inefficiently creating huge pollution.

Another issue that warrants immediate attention is the transportation of a toxic chemical like chlorine. Currently, chlorine is transported by road. In a country with a high population density, even a single incident of chlorine release can kill hundreds of people.

Production and conversion phase

The production process of the caustic-chlorine industry is simple: salt and water is mixed to make brine solution after which energy is passed through the solution. The result is a chemical separation and association of the molecules, which results in products like caustic soda, chlorine and hydrogen. However, the simplicity of the process masks a highly complex industry that has a huge impact on health and environment.

Though companies were rated for more than 100 parameters in this phase, the key environmental issues on which the rating was undertaken were energy consumption, mercury pollution and chlorine leakage/pollution.

With 33.8 per cent marks, the performance of the Indian caustic-chlorine sector in production and conversion phase is average; the top company being Chemfab Alkalis Ltd. On the one hand, the sector's performance in areas such as energy and salt are at par with the global best and on the other, its performance in mercury pollution, water consumption, pollution prevention initiatives and recycle and reuse practices is as bad as it can get. It's a mixed bag in the end. The key findings:

l The average eco-efficiency (ratio of output to input) of the sector is about 52.5 per cent. This is a good eco-efficiency rate if compared with other industrial sectors, but poor because the caustic-chlorine industry can achieve as much as 90 per cent.

l The resource consumption efficiency of Indian companies is at par with the best companies in salt and energy world wide, but very poor in water and mercury. Water consumption is thrice as high as the global companies and mercury consumption is at least 50 times higher than the best companies in the world.

l The sector is slowly moving towards cleaner technology -- all new capacity addition has been in the form of membrane cells and the use of mercury cells have decreased substantially.

l Though caustic soda production from mercury cell based companies has decreased, mercury pollution remains very high. Currently, 70 tonnes of mercury is released into the environment every year by the existing mercury cell plants and this trend is increasing.

l Very few companies are recycling and reusing the waste generated (mainly wastewater and brine sludge).

l Membrane cell technology is far superior to mercury cell technology. Membrane cell companies have scored twice as much as mercury cell companies. Interestingly, companies partly shifting their mercury cell capacity to membrane cell are doing more environment damage.

Corporate environment management

It's more hype than substance. Most companies flash iso 14001 and iso 18000 certifications to cover up their poor environmental track record. grp found that though 45 per cent companies possessed iso 14001 certifications, the sector barely scored 36 per cent marks in corporate environment management. The reason is simple: the annual environment audits of the companies is as bad as the annual environment statement that they submit to the pcbs. Precious little has been done to spread awareness among employees about pollution. grp researchers have often seen workers collecting mercury using bare hands in mercury cell companies and companies disposing their hypo sludge in the open without treatment.

For most Indian caustic-chlorine companies r&d means just testing biological oxygen demand (bod) and chemical oxygen demand (cod) in wastewater and testing the purity of salt in obscure labs. Companies are content with just displaying their environment policy at the factory gates, but have failed to map an off-site disaster management plan. Most companies prefer to ignore community outreach programmes by shifting the onus on to the local administration.