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    Environmental Mapping and Strategy for IOCL

    1 ABHISHEK MOZA

    S

    TO PREPARE A ROUTE

    MAP ON

    ENVIRONMENTAL

    MAPPING AND

    SUBMITTE

    D TO IOCL

    SUBMITTED BY

    ABHISHEK MOZA

    Project Guide: - Mr. S. Kaul.

    DGM (SH&E)

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    2010

    Indian Oil corporationLtd.

    ABHISHEK MOZA

    []

    THIS ASSIGNMENT THIS WILL ADDRESS THE ISSUE OF SUSTAINABLE DEVELOPMENT AND WILL MANAGEMENT A ROUTE MAP TO IDENTIFY, MEASURE AND MONITOR THE ENVIRONMENT INDICAEASILY AND WILL CONCENTRATE ON ENVIRONMENTAL MAPPING THAT INTEGRATES ENVIRONMEIMPROVEMENT INTO OVERALL BUSINESS PLANS AND STRATEGIES. THIS WILL HELP TO IDENTIFYENVIRONMENTAL DRIVERS, SET TARGETS IN KEY FOCUS AREAS AND IDENTIFY PROJECTS AND ACTTO ACHIEVE THESE TARGETS

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    ACKNOWLEDGEMENT

    At the very outset, I would like to take the opportunity to thankthe people without whose support the project would have been

    impossible.

    I express my deep sense of gratitude to Mr. Surrendra Kaul

    (DGM SHE, IOCL), who let me prove myself.

    I emphatically express my profound thank and heartfelt gratitude

    to my mentor Mr. Sanjay Dam for their valuable guidance,

    timely suggestions and constant encouragement during the entire

    course of my training.

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    TABLE OF CONTENTS

    PART A: - INTODUCTION

    CHAPTER I: -INTRODUCTION AND

    CONTENT OF THE DOCUMENT ..................... 8

    SECTION 1.1: - BACKGROUND ........................................................................................ 8

    SECTION 1.2: - SUSTAINABILITY ................................................................................... 10

    SECTION 2.5: - Sustainability requires ........................................................................ 10

    section 1.3: - Purpose and objective ............................................................................... 10

    section 1.4: - scope ............................................................................................................... 12

    Section 1.5: - Study approach ........................................................................................... 13

    PART B: - UNDERSTANDING

    FOOTPRINTINGchapter 3 : - Water footprinting ......................... 14

    SECTION 3.1: -Origins ....................................................................................................... 14

    SECTION 3.2: - Scope and structure ............................................................................ 15

    SECTION 3.3: - Approaches to Accounting for Industrial Effluent and Water

    Quality ...................................................................................................................................... 17

    CAPTER.4: - Carbon Accounting ...................... 19SECTION 4.1: - Greenhouse gases ................................................................................. 19

    Section 4.2 Sources of CO2 emissions in oil and gas industry ......................... 20

    section 4.3Refining Sector -GHG emissions ............................................................... 21

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    chapter 5 Ecological footprinting ...................... 21

    chapter 6 Understanding biodiversity ............. 22

    chapter 7 ENVIRONMENTAL ISSUES IN THE

    AGENDA ............................................................. 23

    PART C: - ORGANIZATION PROFILE

    Chapter 2: - About IOCl ..................................... 25

    Section 2.1: - History and Origin....................................................................................25

    Section 2.2: - Present Profile .......................................................................................... 26

    Section 2.3: - Awards and Distinctions ...................................................................... 29

    Section 2.4: - Sustainability an important element for iocl ................................ 30

    section 2.5 Some major areas where sustainability plays an important role

    for iocl ..................................................................................................................................... 32

    PART D: - MANAGEMENT

    Chapter 4: - Route map for IOCL ...................... 35

    Section 4.1: -Environmental business planning a step by step approach ....... 35

    CHAPTER 5: - Understanding regulatory

    framework and legal setting .............................. 37

    SECTION 5.1: - India's National Action Plan on Climate Change ......................37

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    SECTION 5.2: - Global Climate Change: THREE Policy Perspectives ............. 40

    SECTION 5.3: - Bali Action Plan .................................................................................... 41

    SECTION 5.4: -Political outcomes from previous sessions of the COP .......... 41

    SECTION 5.5: - Copenhagen Accord .......................................................................... 42

    Chapter 6:- Operation and Procedure .............. 43

    Section 6.1: - Measure and evaluate organization environment performance

    .................................................................................................................................................. 43

    PART E: - STRATEGY FRAMEWORK

    Chapter 7: - strategy and recomdations ........... 65

    Section 7.1: - GAP analysis .............................................................................................. 65

    Section 7.2: - framework for strategy development .................................... 66

    Section 7.3: - recommendation and suggestions ..................................................... 67

    Section 7.4 Suggested Strategies to improve

    environmental management .............................. 68

    Section 7.5 Business development: - New

    business areas in environment management .. 68

    APPENDIX 1 REFERENCES ............................. 70Appendix 2 footprinting .................................... 74

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    Appendix 3: - environmental programmes and

    opportunities ..................................................... 760

    PART A: - OVERVIEW

    CHAPTER I: -INTRODUCTION AND CONTENT OF THE DOCUMENT

    SECTION 1.1: - BACKGROUND

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    Awareness of the importance of environmental issues has become more and more central to the

    thinking of the oil and gas industry. Oil and gas operations have the potential for the variety of impacts

    on the environment. These impacts depend upon the stage of the process, the size and complexity of the

    project, the nature and sensitivity of the surrounding environment and the effectiveness of the planning,

    pollution control and prevention, mitigation and adaptative strategies and techniques and the technologyadvancement. The primary sources of atmospheric emissions from oil and gas operations arise from:

    flaring, venting and purging gases;

    combustion processes such as diesel engines and gas turbines;

    fugitive gases from loading operations and tankage and losses from process equipment;

    Airborne particulates from soil disturbance during construction and from vehicle traffic; and

    Particulates from other burning sources, such as well testing.

    The principal aqueous waste streams resulting from exploration and production operations are:

    produced water;

    drilling fluids, cuttings and well treatment chemicals;

    process, wash and drainage water;

    sewerage, sanitary and domestic wastes;

    spills and leakage; and

    Cooling water.

    Terrestrial impacts

    Potential impacts to soil arise from three basic sources:

    physical disturbance as a result of construction;

    contamination resulting from spillage and leakage or solid waste disposal; and Indirect impact arising from opening access and social change.

    Ecosystem impacts

    Plant and animal communities may also be directly affected by changes in their environment throughvariations in water, air and soil/sediment quality and through disturbance by noise, extraneous light andchanges in vegetation cover. Such changes may directly affect the ecology: for example, habitat, food andnutrient supplies, breeding areas, migration routes, vulnerability to predators or changes in herbivoregrazing patterns, which may then have a secondary effect on predators. Soil disturbance and removal ofvegetation and secondary effects such as erosion and siltation may have an impact on ecologicalintegrity, and may lead to indirect effects by upsetting nutrient balances and microbial activity in thesoil. If not properly controlled, a potential long-term effect is loss of habitat which affects both fauna

    and flora, and may induce changes in species composition and primary production cycles.

    Measures of progress need to consider implications for social justice and the environment, as well aspromoting responsible economic progress. Sustainable development offers a new model which fulfilsthese requirements. Weak sustainability, which asserts that it is possible to improve both material well-being and environmental quality through appropriate development strategies, In the form of ecologicalmodernisation, this reflects a belief that, instead of a zero-sum trade-off between the environment andthe economy, continued economic prosperity and improvements in living standards are dependent onthe promotion of higher environment standards. On this basis, adoption of sustainable development as a

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    goal, and the use of indicators of sustainable development to measure progress towards this goal, shouldenhance current performance measures and generate better development pathways

    SECTION 1.2: - SUSTAINABILITY

    Development that meets the needs and aspirations of present generations without compromising theability to meet those of future generations is called sustainability.

    Increasing durability of biological resources. Integration of environmental policy in all sectors. No trade off-but both economic & environmental development. The exact model of development depends on particular conditions of each company.

    It is an area in which ecological integrity and basic human needs are concurrently maintained

    over generations.

    Ecological integrity means maintaining near natural conditions in 4 broad areas-soil, water,biodiversity & productivity.

    The condition of soil can be measured by the amount of soil erosion.

    Quantity of water depends on average local rainfall and area and fish diversity is a good

    indicator for water quality.

    Natural biodiversity is the number of native species in each group; for example, trees, shrubs,

    birds, mammals etc.

    Near natural productivity indicates a level that would prevail if the whole landscape had nativeeco-systems

    SECTION 2.5: - SUSTAINABILITY REQUIRES

    Harvesting rates within the regenerative capacity of the eco-system.

    Waste emission and disposal within the assimilative capacity of the eco-system.

    Rate of non-renewable resource exploitation to be equal to creation of renewable substitutes.

    It will also involve enhancing the quality of life supporting services

    SECTION 1.3: - PURPOSE AND OBJECTIVE

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    Various phases and steps are involved in the whole procedure which we will see in subsequent work.

    The Oil & Gas Sector has a variety of impacts on the environment. These impacts depends upon the

    stage of the process, the size and complexity of the project, the nature and sensitivity of the surrounding

    environment and the effectiveness of planning, pollution prevention, mitigation and control techniques.

    The purpose and objective of this assignment is to ensure activities that are likely to have impacts on

    the environment are properly assessed and managed.

    To provides a structure in which the organization addresses environmental issues for allocating

    resources properly

    To provide organization with the proper route map to measure environmental performance.

    Assigning responsibilities, and evaluating practices, procedures and processes for developing,

    implementing, achieving, Reviewing and maintaining the Environmental policy and legal setting

    of the company.

    Determine continued relevance of the scheme in the context of the National and international

    Environment Policy and legal setting. Improve the quality of implementation and enhance the efficiency and accountability of the

    delivery mechanism.

    To suggest rationalization of the existing activities and to provide a road map for furtherimprovement by redesigning/reorganizing of the existing divisional structure created for majoractivities of IOCL.

    Process involves - verifications of documents, reports, methodologies, project operationspractices, interviews with key personnel in the organization etc.

    Review of operations and existing management systems Identification of strengths and weaknesses To assess environmental performance To create environmental awareness and act as a watch dog

    To evaluate efficiency of organizational operations and practices To oversee optimal use of resource utilization particularly with reference to environmental and

    natural capital To identify areas of risk and provide recommendations to mitigate the same.

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    SECTION 1.4: - SCOPE

    The study will highlight the importance of strengthening institutions for environmentmanagement in sustaining and accelerating company's strong growth performance.

    Specifically, it analyzes and identifies opportunities in sustainable development and capacity

    building measures to strengthen monitoring and enforcement of environmental compliance and

    enhances environmental performance. It proposes a program of specific actions to significantly

    increase the capacity of external environment in which an organization functions and

    communities to match the growing demands of economic growth and public awareness.

    Importantly, the study will follow a highly consultative process, which will identify threats

    and opportunities ,environmentally sound technologies and practices by calculating company

    s Max rate of resource consumption and waste discharge and challenges in technology to

    balance sustainable economic growth

    It concentrates on Environmental Business Planning (EBP) that integrates environmental

    improvement into overall business plans and strategies. The businesses use EBP to identify key

    environmental drivers, set targets in key focus areas and identify projects and actions to

    achieve these targets. This will start with brief introduction of the company followed by the

    definition of sustainability and sustainability according to IOCL. The project will comprise of

    four phases namely:-

    Understanding Policy and Legal setting

    Measure and Evaluate Company's Environmental performance

    GAP Analysis and Areas to Work Develop Strategies

    This study covers impact on following:-

    Air Water Energy Land Waste

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    EMISIONS,EFFLULENTS AND

    WASTES

    MATERIAL

    WATER

    ENERGY

    Ecology

    Followed by this we will analyze and calculate the emissions from various practices by

    calculating company s Max rate of resource consumption and waste discharge, this will

    require data collection regarding Sourcing, resource Consumption, areas of consumption,

    pollutants generated, waste generated, waste treatment failures, effluent quantity and other

    details of the organization.

    This will help us for GAP analysis and will provide us vision to focus on challenges in

    technology to balance sustainable economic growth and to develop strategies for mitigation

    and adaption. This will address the issue of sustainable development and will give

    management a route map to identify, measure, monitor environmental performance.

    SECTION 1.5: - STUDY APPROACH

    BIODIVERSITY

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    PART B: -UNDERSTANDING

    FOOTPRINTING

    CHAPTER 3 : - WATER FOOTPRINTING

    SECTION 3.1: -ORIGINS

    Water footprinting a methodology introduced in 2002 and developed primarily by researchers at theUniversity of Twente measures the total annual volume of freshwater used to produce the goods andservices consumed by any well-defined group of consumers, including a family, village, city, province,state, nation, and more recently, a business or its products. Water footprints are intended to allow theseentities to better understand their relationship with watersheds, make informed management decisions,and spread awareness of water challenges worldwide. Throughout this decade, the water footprintingmethod has been further refined, beginning to incorporate ways to achieve more reliable and spatially-and temporally-explicit data and better account for water quality and impacts, among other things.

    The most widely used and accepted metrics for sustainability reporting are developed by the GlobalReporting Initiative (GRI). GRIs most recent reporting framework known as the G3 Guidelines contains indicators for the economic, environmental, and social performance of companies, including fivespecifically focusing on water-related issues:

    1. Total water withdrawal by source

    2. Water sources significantly affected by withdrawal of water3. Percentage and total volume of water recycled and reused4. Total water discharge by quality and destination5. Identity, size, protected status, and biodiversity value of water bodies and related habitats significantlyaffected by the organizations discharge of water and runoff.

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    SECTION 3.2: - SCOPE AND STRUCTURE

    The water footprint of a business is defined as the total volume of freshwater that is used directly orindirectly to run and support the business. The volumes of freshwater use are measured at the place

    where the actual production and water use takes place. When a business runs at different locations, it isthus preferred to schematize the overall business into business units in such a way that individualbusiness units operate at one location. Besides, operations of a business at one particular spot arepreferably schematized in different business units each producing its own product. The water footprintof the business as a whole consists of the sum of the water footprints of the different business units.The water footprint of a business unit is defined as the total volume of freshwater that is used, directlyand indirectly, to produce the products and services of that unit expressed in terms of the volume offreshwater use per year. The water footprint of a business unit consists of two parts: the operationalwater footprint and the supply-chain water footprint. The first refers to the amount of freshwater usedat a specific business unit, i.e. the direct freshwater use. The second refers to the amount of freshwaterused to produce all the goods and services that form the input of production at the specific businessunit, i.e. the indirect water use. Freshwater use consists of three different components: the green, blue

    and grey component.

    Key Term TypesWater footprinting: - The water footprint of abusiness unit is defined as the total volume offreshwater that is used, directly and indirectly, toproduce the products and services of that unitexpressed in terms of the volume of freshwater useper year.

    The green component of the water footprintrefers to the volume of rainwater that evaporatedduring the production process. This is mainlyrelevant for agricultural products (e.g. crops ortrees), where it refers to the total rainwaterevapotranspiration during crop growth (fromfields and plants).

    The blue component of the water footprint

    refers to the volume of surface and groundwaterevaporated as a result of the production of theproduct or service. For example, for cropproduction, the blue componentis defined as the sum of the evaporation ofirrigation water from the field and the evaporationof water from irrigation canals and artificialstorage reservoirs. For industrial production orservices, the blue component is defined as theamount of water withdrawn from ground- orsurface water that does not return to the systemfrom which it came.

    The grey component of the water footprint isthe volume of polluted water that associates withthe production of goods and services. It isquantified as the volume of water that is requiredto dilute pollutants to such an extent that thequality of the ambient water remains above agreedwater quality standards.

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    The green and blue components of a water footprint focus on consumptive water use (i.e. the volume ofwater removed from local water system by evaporation, inclusion in a product, water transfer, orotherwise). They do not include those uses of water that are eventually returned to the same systemfrom which they are withdrawn (i.e. non-consumptive uses). To the degree to which non-consumptive

    water use is addressed, it is done within the grey water component. Corporate water footprints measurethe total volume of water used directly and indirectly to run and support a business. They are typicallyscoped to focus at the product level (i.e., volume of water used throughout a products life cycle), butcan also focus on one or more components of a companys va lue chain (e.g. raw material production,manufacturing, distribution), on a business activity or division, or by a key facility or region ofoperation. Corporate water footprints are meant to be divided between their operational and supplychain components; however, comprehensive assessments of water use in a companys supply chainthrough water footprinting are not widely practiced to date due to the difficulty in obtaining data for

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    large supplier networks. The inclusion of spatially- and temporally-explicit data is deemed critical forallowing companies to better understand their relationship to the contexts in which they operate.

    The green-blue distinction is helpful because these two types of water use have substantially differentpotential risks and impacts on the surrounding environment. Blue water use directly depletes aquifers

    and surface waters thereby potentially contributing to water scarcity, destruction of ecosystems, and/orreduced access among human communities, among other things. There is often competition for bluewater among many users, sometimes leading to business risks when corporate water use hinders or isperceived to hinder - other uses.

    To mitigate blue water impacts and associated risks, companies might improve their water use efficiencyor engage with affected parties to improve their access to water services. In contrast, the impacts andmitigation strategies for green water use are typically related to land use change rather thaninfringement upon other water uses. These land use changes for instance the conversion of forests toarable lands - clearly affect ecosystem function (e.g., habitat and biodiversity) as well as communitiesaccess to resources (e.g., timber). As such, companies consider the distinction between green and bluewater useful in helping them understand the types of impacts their agricultural production might have

    on surrounding ecosystems and communities.

    The distinction between green and blue is also perceived as useful in its capacity to assess long-termrisks related to climate change. Climate change is predicted to have drastic impacts on the hydrologiccycle and the availability of water for human uses. Precipitation patterns will begin to change on aregional basis, often becoming less or more frequent and more concentrated depending on the location.This has many implications for blue water resources (e.g. infrastructures ability to cope with longerdroughts), but is particularly problematic for those who rely on green water. Less frequent rainfall willultimately mean less green water stored in the soil. Because of this, those who rely solely on green wateruse (namely agricultural growers in the Global South who do not have access to irrigation) will simplynot be able to sustain crop production through long droughts. This of course poses business risks forcompanies who rely on those growers as suppliers or utilize the majority of blue water in that same

    region to the extent that it is unavailable for those growers. For this reason, the green-blue waterdistinction in conjunction with climate change prediction models has helped companies better assesswhich of their water uses may be most susceptible to disruptions due to climate change.

    SECTION 3.3: - APPROACHES TO ACCOUNTING FOR INDUSTRIAL EFFLUENT

    AND WATER QUALITY

    Though water quantity has received much of the focus of water management practices and accounting,water quality is equally important to businesses and the ecosystems and communities near theirfacilities. Untreated water can lead to increased incidence of disease. Highly-contaminated water can leadto the destruction of habitat and decreased biodiversity. Cloudy water decreases light penetration andreduces the productivity of plant systems and ecosystems as a whole. Unclean water can make drinkingwater supplies unfit for drinking. For these reasons, companies have just as great a stake in accountingfor and improving their impacts on water quality as they do in accounting for water quantity. Asthe previous section demonstrated, accounting for water use/quantity is quite complex and requiresmeshing a number of different factors in order to be credible and meaningful. That said, accounting forindustrial effluent and its impacts on water resources is arguably even more complex and problematicfrom an accounting perspective. This complexity is due to the many different types of pollutants coming

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    from industrial plants and agriculture (e.g. phosphates, nitrates, mercury, lead, oils, sulfur,petrochemicals, undiluted corrosives, and hard metals, just to name a few), the variety of ways waterquality can be compromised (i.e., contaminant loads, temperature, odor, turbidity), and the variousapproaches to accounting for the resulting impacts to ecosystems and communities.Measurable water quality characteristics can be grouped into three broad categories:

    Physical characteristics(e.g. temperature, turbidity/light penetration, and flow velocity), Chemical characteristics (e.g. pH, salinity, dissolved oxygen, nitrate, phosphate, Biological oxygendemand [BOD], toxics, chemical oxygen demand [COD]), and Biological characteristics(e.g. abundance of coliform bacteria, zooplankton, and other organisms thatserve as an indicator of ecosystem health).Companies aiming to account for their water pollution and its effects on water quality must determine arange of factors including the volume of wastewater they discharge, the types and loads of pollutantswithin that wastewater, the effects of those pollutants on local waterways, and the impacts of thosechanges on ecosystem function and human health/access to safe water.

    Water footprints deal with industrial effluents and water quality exclusively within the grey watercomponent. The grey WF is calculated as the volume of water that is required to dilute pollutants tosuch an extent that the quality of the water remains above agreed water quality standards. Whether thiswater is discharged back to surface or ground water, it is considered used because it is unavailable foruse due to the fact that it is functioning in-stream as a dilution medium. For this reason, the grey WF isa theoretical volume, rather than a real volume as compared to the blue and green WF. Themethodology for determining the grey WF is perhaps the least developed of the three WF components.In fact, many corporate WF studies to this point do not include a grey water component. Those that doinclude grey water have done so in different ways. However, they all utilize some permutation of thesame basic equation:

    For total corporate grey water footprints:WFgrey of business m3 = Load

    Standards

    In the context of pollution, LCA methods are aimed at a number of different environmental impact categoriesindependent of whether the emissions occur to water or to some other medium. The most common impactsassociated with water quality in LCA are:

    Eutrophication (overgrowth of algae due to excess nutrient addition) Acidification due to emissions of acidifying substances, (mostly into the air) Ecotoxicity Human toxicityThese impact categories are measured in terms of equivalents of eutrophication potential (phosphorus or nitrogenunits), acidification potential (hydrogen ion or sulfur dioxide units), and ecotoxicity potential (cubic meter-years).Because these units are not the same, these impacts cannot be added up without a value judgment fornormalization and weighting of the impacts, for example as is done for eco-indicators or end-point indicators.

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    CAPTER.4: - CARBON ACCOUNTING

    A carbon footprint is a measure of the green house gas emissions attributed to a company, product orservice. When looked at in its widest sense, the totality of a footprint can be vast; encompassing directemissions from fuels used, indirect emissions from employee travel or even upstream emissions from

    suppliers or downstream from customer activities.

    Key Term Types

    Carbon Footprinting : -A carbon footprint is

    a measure of the greenhouse gas emissions

    associated with an activity, group of

    activities or a product.

    LEVEL 1 (SCOPE 1)

    DIRECT EMISSIONS FROM ACTIVITIES THE

    COMPANY CONTROLS

    Direct emissions normally result from burning

    fossil fuels, which emit CO2, such as the oil used

    to heat the premises or the gas used to provide

    hot water. Some companies directly release CO2

    in processes like fermentation while some emit

    other greenhouse gases such as methane (CH4)

    and nitrous oxide (N2O).

    LEVEL 2 (SCOPE 2)

    EMISSIONS FROM THE USE OF ELECTRICITY

    Electricity is essential for companies to power

    lighting and equipment.

    LEVEL 3 (SCOPE2)

    INDIRECT EMISSIONS FROM PRODUCTS

    AND SERVICES

    Emissions generated upstream each time a

    company buys a product or service and

    downstream when products it sells are used anddisposed of, can indirectly be attributed to them.

    While upstream and downstream emissions are

    part of a complete carbon footprint, calculating

    them can be extremely complex.

    SECTION 4.1: - GREENHOUSE GASES

    Greenhouse gases affect the ability of the earths atmosphere to retain heat. Higher greenhouse gasconcentrations in the earths atmosphere causes global warming through this greenhouse effect. The

    Kyoto protocol, which originated at the 3rd Conference of the Parties to the United Nations Conventionon Climate Change in 1997, has identified six greenhouse gases whose atmospheric concentrations arestrongly influenced by human activity. The most important of these is carbon dioxide (CO2). The globalwarming potential (GWP) of each greenhouse gas can be expressed in CO2 equivalents (see table). Forgases with a high global warming potential, a relatively small emission can have a considerable impact.

    Kyoto gas GWP* Example sources

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    Carbon dioxide (CO2) 1 Burning fossil fuelsMethane (CH4) 23 Cattle, landfill sites, leaks from

    disusedmines, burning fossil fuels.

    Nitrous oxide (N2O) 296 Emissions from fertilized soils,burning fossil fuels.

    Sulphur Hexafluoride (SF6) 22,200 Leaks from electrical and electronicsindustries.

    Perfluorocarbons (PFCs) 4,800 9,200 Electronics industries, fire

    extinguishersHydrofluorocarbons (HFCs) 12-12,000 Leaks from air conditioning and

    refrigeration systems. LPG storage.

    *Note: the global warming potential of a gas is its relative potential contribution to climate change over a 100 year period, whereCO2= 1 Source: IPCC (2001)

    SECTION 4.2 SOURCES OF CO2 EMISSIONS I N OIL AND GAS INDUSTRY

    By FuelFuel Gas

    Residual oilFCC cokeNatural Gas

    As a fuelAs a feedstock to hydrogen unit

    Re-gassed LPG

    International Energy

    Agency (IEA) estimates

    that on an average about

    10% of petroleum related

    GHG emissions are from

    oil Industry operations

    (Exploration, production,refining and

    distribution)

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    By ApplicationProcess heaters

    To heat feeds to process unitsBoilers

    Generate steam for process heat, distillation and electricity generation via steam turbinesGas turbines

    To drive compressors and electric generatorsCo-generation

    SECTION 4.3REFINING SECTOR -GHG EMISSIONS

    Direct GHG emissions are the Stationary Combustion sources comprised of direct-fired heaters, boilers,flares and other sources,

    Vented sources such as process vents, storage tank losses, equipment venting frommaintenance/turnaround events

    Fugitive sources such as equipment component losses, wastewater treatment, and cooling towers.

    Indirect GHG emissions are Indirect emissions from energy imports, or include electricity consumptionfrom power imported from the grid or a third party supplier.

    Other Indirect GHG emissions are Crude loading, ballasting, feedstock and product transport, Off-sitecatalyst regeneration, Off-site waste disposal/landfill operations.

    CHAPTER 5 ECOLOGICAL FOOTPRINTINGIt measures the impact of human activity upon nature. The footprint expresses the land area that isrequired to feed, provide resources, produce energy, assimilate waste, and to re-absorb its CO2 outputfrom fossil fuels through photosynthesis.

    Based on this relationship between humanity and the biosphere, an ecological footprint is ameasurement of the land area required to sustain a population of any size. Under prevailing technology,it measures the amount of arable land and aquatic resources that must be used to continuously sustaina population, based on its consumption levels at a given point in time. To the fullest extent possible, thismeasurement incorporates water and energy use, uses of land for infrastructure and different forms ofagriculture, forests, and all other forms of energy and material "inputs".

    To obtain a disturbance-based ecological footprint, each area of land is multiplied by its land conditionfactor. For example take 100-hectare area that includes a road (5 ha), a quarry (5 ha), cleared land (75a), and some less intensively cleared (thinned) land (15 ha). In the original ecological footprintcalculation, these areas would all be treated as equivalent, and simply be added. In a disturbance-basedapproach, however, each area would be weighted with a land condition factor (see Fig. 3), yielding 5 ha1.0 = 5 ha disturbance on built land, 5 ha 0.8 = 4 ha on mined land, 75 ha 0.6 = 45 ha on clearedland and 15 ha 0.4 = 6 ha on thinned land.

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    Key Term TypesEcological Footprinting:- is defined as the land areathat would be needed to meet the consumption of apopulation and to absorb all their waste

    For the purposes of the ecological footprint calculation,land and sea area is divided into four basic types:1) Bioproductive land,2) Bioproductive sea,

    3) Energy land (forested land and sea area requiredfor the absorption of carbonemissions) and4) Built land (buildings, roads, etc).

    Further classification

    1.0

    0.8

    0.6

    0.4

    CHAPTER 6 UNDERSTANDING BIODIVERSITY

    Species to the diversity of ecosystems and landscapes: understanding biodiversity means first of allidentifying, listing and classifying the biological entities that make it u. In addition it also meansanalyzing genetic structure of their population, recreating the history of evolutionary lineages andunderstanding the effects and scope of phenotypic plasticity. Biodiversity provides us with a host of rawmaterials, foods and medicines and is the basis for the life support system of our planet by, for example,

    underpinning the continued availability of clean air and fresh water. Interwoven with these functionalaspects are spiritual, cultural and recreational elements.

    Biodiversity:In simple terms biological diversity, orbiodiversity, is the variability among livingorganisms from all sources including terrestrial,marine and other aquatic ecosystems and theecological complexes of which they are part; this

    1) Genetic diversity, which can refer to thediversity of genes within a single species aswell as between species.

    2) Taxonomic diversity, based of course onthe different taxa contained within an

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    includes diversity within species, between species,and of ecosystems.

    The actions required to the successful conservationof biodiversity typically entail preservation, species

    and habitat management, sustainable utilization,restoration and/or enhancement. The developmentand enforcement of legislation and regulation, andeducation and capacity building are also elementsof the conservation process.

    ecosystem.3) Functional diversity, which recognizes the

    variety of roles that different organisms including the separate life stages ofindividual species play in the ecosystem.

    Biological and chemical processes offunctions such as energy flow and mattercycling needed for the survival of speciesand biological communities

    Genetic diversity is the raw material that permits species to adjust to a changing worldwhether these changes are due to natural factors or are caused by human factors. It refers tothe variation at the level of individual genes and provides a mechanism for populations to adaptto their ever-changing environment.

    Genetic diversity becomes especially important in the context of climate change and other localor global environmental shifts, since it plays a critical role in determining how communities will

    adapt to stress. If the components of an ecological community have sufficient genetic breadth to

    adapt, then the community structure will be relatively robust and will probably survive with

    little change. However, if the community is stressed then it is likely that genetic breadth will be

    reduced and only those individuals optimally suited to current conditions will be present, and

    these are the ones that will be most affected by environmental changes.

    Taxonomic diversity is probably the most widely recognized form of biodiversity, but it may also

    be the least meaningful. It can be defined in many ways, but basically it involves identifying the

    number of different taxa (usually at the species level) and possibly weighting them by theabundance of individuals. Calculations of taxonomic biodiversity tend to be limited by the

    taxonomic expertise available, especially at lower tropic levels whales are easy to classify, but

    nematode taxonomists are in short supply. There is a tendency to lump some of the more

    confusing taxa together at the genus or higher level, which introduces a degree of arbitrariness

    to the calculations.

    Functional diversity refers to the diversity of ecological processes that maintain and aredependent upon the other components of diversity. Functional diversity includes the manyecological interactions among species e.g. competition, predation, parasitism, mutualism, etc. aswell as ecological processes such as nutrient retention and recycling. It also includes the varying

    tempos and intensities of natural disturbances that many species and communities require ifthey are to persist.

    CHAPTER 7 ENVIRONMENTAL ISSUES IN THE AGENDA

    The global community will rely heavily on oil and gas supplies for the foreseeable future. World primary

    energy consumption in 1994 stood at nearly 8000 million tonnes of oil equivalents (BP Statistical Review

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    of World Energy, June 1995); oil and gas represented 63 per cent of world energy supply, with coal

    providing 27 per cent, nuclear energy 7 per cent and hydro-electric 3 per cent. The challenge is to meet

    world energy demands, whilst minimizing adverse impact on the environment by conforming to current

    good practice

    The various disparate environmental problems that had for many years been addressed individually were

    put into a general global context during UNCED, and Agenda 21 is also remarkable for its explicit

    mention of key actors and roles. The role of the business sector is out-lined, as is partnership building

    between the private sector and governments

    Protecting the atmosphere

    Managing land sustainably

    Combating deforestation

    Combating desertification and drought

    Sustainable mountain development

    Sustainable agriculture and rural development

    Conservation of biological diversity

    Management of biotechnology

    Protecting and managing the oceans

    Protecting and managing fresh water

    Safer use of toxic chemicals

    Managing hazardous wastes

    Managing solid wastes and sewage

    Managing radioactive wastes

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    PART C: - ORGANIZATION PROFILE

    AND VIEWS

    CHAPTER 2: - ABOUT IOCL

    SECTION 2.1: - HISTORY AND ORIGIN

    Indian Oil Corporation Ltd. (IndianOil) was formed in 1964 through the merger of Indian Oil CompanyLtd and Indian Refineries Ltd. Indian Refineries Ltd was formed in 1958, with Feroze Gandhi asChairman and Indian Oil Company Ltd. was established on 30th June 1959 with Mr S. Nijalingappa asthe first Chairman. In 1964, Indian Oil commissioned Barauni Refinery and the first petroleum productpipeline from Guwahati. In 1965, Gujarat Refinery was inaugurated. In 1967, Haldia Baraurii Pipeline(HBPL) was commissioned. In 1972, Indian Oil launched SERVO, the first indigenous lubricant. In 1974,Indian Oil Blending Ltd. (IOBL) became the wholly owned subsidiary of Indian Oil. In 1975, HaldiaRefinery was commissioned. In 1981, Digboi Refinery and Assam Oil Company's (AOC) marketingoperations came under the control of Indian Oil. In 1982, Mathura Refinery and Mathura-JalandharPipeline (MJPL) were commissioned. In 1994, India's First Hydrocracker Unit was commissioned atGujarat Refinery. In 1995, 1,443 km. long Kandla-Bhatinda Pipeline (KBPL) was commissioned atSanganer. In 1998, Panipat Refinery was commissioned. In the same year, Haldia, Barauni Crude OilPipeline (HBCPL) was completed. In 2000, Indian Oil crossed the turnover of Rs l ,00,000 crore andbecame the first Corporate in India to do so. In the same year Indian Oil entered into Exploration &Production (E&P) with the award of two exploration blocks to Indian Oil and ONGC consortium underNELP-I. In 2003, Lanka IOC Pvt. Ltd. (LIOC) was launched in Sri Lanka. In 2005, Indian Oil's MathuraRefinery became the first refinery in India to attain the capability of producing entire quantity of Euro-III compliant diesel.

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    SECTION 2.2: - PRESENT PROFILE

    IndianOil in every heart, in every part perfectly

    encapsulates the expanse, reach and depth of

    IndianOil today. In the fifty one years of itsexistence, IndiaOil has grown to be role model for

    other corporates, displaying high standards of

    professionalism while at the same time meeting its

    social economic and environmental objectives

    effectively. It is the vision and dynamism of the top

    leadership and the passion, zeal and hard work of the

    employees down the line that made it possible for

    IndianOil to emerge as a shining star of the Indian

    Public Sector.

    From a fledgling company with a net worth of just

    Rs. 45.18 crore and sales of 1.38 million tones valued

    at Rs.78 crore in the year 1965, IndianOil has since

    grown over 3000 times with sales turnover of Rs.

    285,337 crores, the highest ever for an Indian

    company , and a net profit of Rs. 2,950 crore for 2008-

    09.

    IndianOil controls 10 of Indias 20 refineries. The

    group refineries capcity is 60.2 MMTPA the largest

    share among refining companies in india.

    In petrocmicals IndianOil is investing Rs. 30,000

    crores (US$ 7.4 billion) by the year 2011 12. Through

    the worlds largest single train Linear Alkly

    Benzene (LAB) plant with an annual capacity of 1,

    20,000 tonnes set up at its Gujarat Refinery. A world

    class scale paraxylene/purified Terephthalic Acid

    plat (annual capacity : PX- 3,63,000 tonnes, PTA -

    5,53,000 tonnes ) for polyester intermediated is

    already in operation at Panipat , while a NaphthaCracker with a capacity of 800,000 of ethylene per

    annum , equipped with downstream polymer units

    I

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    3

    In E&P, IndianOil has bagged eight oil & gas and

    two Coal Bed Methane blocks under NELP rounds

    in India, in consortium with other companies.

    In natural gas business IndianOil targeted sales of 2

    million tonnes in 2008-09. A technology innovation

    has been initiated to reach LNG directly to the door

    step of bulk consumers in cryogenic containers for

    industrial as well as captive power application.

    IndianOil acquired IBP in the year 2002 and

    seamlessly merged it with the parent company in

    2007, leading to the formation of a larger and more

    midable marketing network.

    Against the backdrop of a rapidly changing business

    environment, IndianOil is focusing on certain key

    issues for sustained growth in the deregulated

    market. These are prudent finance and project

    management, optimum capacity utilization of

    refineries and pipelines network, competitive

    business strategies, customer- focused innovations

    in product and service offerings streamlining of

    business processes, and achieving greater synergy

    with group companies for enhanced efficiency and

    effectiveness in the market place.

    To straddle the complete bio-fuel value chain,

    IndianOil formed a joint venture with the

    Chhattisgarh Renewable Development Authority

    (CREDA) with an equity holding of 74% and 26%

    respectively.

    Indian Oil has forayed into wind energy with the

    commissioning of a 130 crore, 21 MW wind powerproject in the Kutch district of Gujarat. The

    cummulative power generation from 14 wind

    turbine generated has crossed 159 lakh KW since

    commissioned in January 2009.

    Kissan seva kendra outlets for rural customers.

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    IndianOil operates the largest and the widest network of

    petrol & diesel stations in the country, numbering over

    18,278. It reaches Indane cooking gas to the doorsteps of

    over 53 million households in nearly 2,700 markets through

    a network of about 5,000 Indane distributors.

    IndianOil's ISO-9002 certified Aviation Service commands

    over 63% market share in aviation fuel business, meeting

    the fuel needs of domestic and international flag carriers,

    private airlines and the Indian Defence Services. The

    Corporation also enjoys a dominant share of the bulk

    consumer business, including that of railways, state

    transport undertakings, and industrial, agricultural and

    marine sectors

    For over two decades now, IndianOil has been providing

    technical and manpower secondment services to overseas

    companies. Such services have been extended to Emirates

    National Oil Company (ENOC), Kenya Pipeline Company

    and Aden Refinery, Yemen . For the first time, SAP

    implementation / IT consultancy was provided in Sri Lanka .

    Consultancy on pipelines was provided to Greater Nile

    Petroleum Operating Company (GNPOC), Sudan .

    IndianOil has set up subsidiaries in Sri Lanka, Mauritius and

    the United Arab Emirates (UAE), and is simultaneously

    scouting for new business opportunities in the energy

    markets of Asia and Africa.

    Lanka IOC Ltd. operates about 150 petrol & diesel stations in

    Sri Lanka, and has a very efficient lube marketing network.

    Its major facilities include an oil terminal at Trincomalee, SriLanka's largest petroleum storage facility and an 18,000

    tonnes per annum capacity lubricants blending plant and

    state-of-the-art fuels and lubricants testing laboratory at

    Trincomalee. Presently, it holds a market share of about

    40%. In a highly competitive bunker market, catering to all

    types of bunker fuels and lubricants at all ports of Sri Lanka,

    viz., Colombo, Trincomalee and Galle. It is the major

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    supplier of lubricants and greases to the three arms of the

    Defence services of Sri Lanka. LIOC's market share in petrol

    increased stands at 24.8% in 2008 with an overall market

    share of 16.9%.

    IndianOil (Mauritius) Ltd. has an overall market share of

    nearly 22% and commands a 35% market share in aviation

    fuelling business, apart from its bunkering business. It

    operates a modern petroleum bulk storage terminal at Mer

    Rouge port, besides 17 filling stations. In addition to the

    ongoing expansion of retail network, IOML has to its credit

    the first ISO-9001 product-testing laboratory in Mauritius.

    The Corporation's UAE subsidiary, IOC Middle East FZE,which oversees business expansion in the Middle East, is

    mainly into blending and marketing of SERVO lubricants

    and marketing of petroleum products in the Middle East,

    Africa and CIS countries.

    SECTION 2.3: - AWARDS AND DISTINCTIONS

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    AWARDS DATE

    DIRECTOR (FINANCE) WINS INDIAS BEST CFO AWARD 14.04.2010

    OCEANTEX 2010 AWARD TO DIRECTOR (REFINERIES) FOR OUTSTANDINGACHIEVEMENT

    04.03.2010

    INDIANOIL RECEIVES THE MOU EXCELLENCE AWARD 2007-08 15.10.2009

    INDIANOIL WINS OIL & GAS SUPPLY CHAIN EXCELLENCE AWARD 21.09.2009

    INDIANOIL BAGS SAFETY INNOVATION AWARD 2009 21.09.2009

    BONGAIGAON REFINERY BESTOWED INDIRA GANDHI PARYAVARAN PURASKAR 05.06.2009

    INDIANOIL WINS READER'S DIGEST AWARD FOR MOST TRUSTED PETROLSTATION BRAND

    01.06.2009

    INDIANOIL SWEEPS FIVE PETROFED OIL & GAS INDUSTRY AWARDS (FOR THEYEAR 2008)

    16.04.2009

    INDIANOIL WINS SCOPE MERITORIOUS AWARDS FOR ENVIRONMENTALEXCELLENCE & SUSTAINABLE DEVELOPMENT AND GOOD CORPORATEGOVERNANCE

    24.11.2008

    INDIANOIL CONFERRED SAP ACE AWARD 2008 FOR B2B PROCESS INTEGRATION 24.09.2008

    'OIL & GAS SUPPLY CHAIN EXCELLENCE' AWARD FOR INDIANOIL

    22.09.2008INDIANOIL BAGS 'MOST ADMIRED RETAILER RURAL' AWARD 2007 22.09.2008

    SAFETY INNOVATION AWARD FOR INDIANOIL FOR FOURTH CONSECUTIVEYEAR

    11.09.2008

    National Energy Conservation award - 2008 from Ministry of Power 2008-2009

    Oil Industry Safety Directorate Award 2007-08 for Safety Performance (Refinery Category) byOISD

    2007-2008

    SECTION 2.4: - SUSTAINABILITY AN IM PORTANT ELEMENT FOR IOCL

    http://www.iocl.com/Aboutus/Awards48.aspxhttp://www.iocl.com/Aboutus/Awards48.aspxhttp://www.iocl.com/Aboutus/Awards48.aspxhttp://www.iocl.com/Aboutus/Awards45.aspxhttp://www.iocl.com/Aboutus/Awards45.aspxhttp://www.iocl.com/Aboutus/Awards43.aspxhttp://www.iocl.com/Aboutus/Awards39.aspxhttp://www.iocl.com/Aboutus/Awards39.aspxhttp://www.iocl.com/Aboutus/Awards40.aspxhttp://www.iocl.com/Aboutus/Awards40.aspxhttp://www.iocl.com/Aboutus/Awards35.aspxhttp://www.iocl.com/Aboutus/IndianOil_winsReader'sDigestAward%20.aspxhttp://www.iocl.com/Aboutus/IndianOil_winsReader'sDigestAward%20.aspxhttp://www.iocl.com/Aboutus/AwardsPetroFed33.aspxhttp://www.iocl.com/Aboutus/AwardsPetroFed33.aspxhttp://www.iocl.com/Aboutus/Awards24.aspxhttp://www.iocl.com/Aboutus/Awards24.aspxhttp://www.iocl.com/Aboutus/Awards24.aspxhttp://www.iocl.com/Aboutus/Awards24.aspxhttp://www.iocl.com/Aboutus/Awards18.aspxhttp://www.iocl.com/Aboutus/Awards18.aspxhttp://www.iocl.com/Aboutus/Awards22.aspxhttp://www.iocl.com/Aboutus/Awards22.aspxhttp://www.iocl.com/Aboutus/Awards21.aspxhttp://www.iocl.com/Aboutus/Awards21.aspxhttp://www.iocl.com/Aboutus/Awards21.aspxhttp://www.iocl.com/Aboutus/Awards21.aspxhttp://www.iocl.com/Aboutus/Awards20.aspxhttp://www.iocl.com/Aboutus/Awards20.aspxhttp://www.iocl.com/Aboutus/Awards20.aspxhttp://www.iocl.com/Aboutus/Awards20.aspxhttp://www.iocl.com/Aboutus/Awards20.aspxhttp://www.iocl.com/Aboutus/Awards21.aspxhttp://www.iocl.com/Aboutus/Awards22.aspxhttp://www.iocl.com/Aboutus/Awards18.aspxhttp://www.iocl.com/Aboutus/Awards24.aspxhttp://www.iocl.com/Aboutus/Awards24.aspxhttp://www.iocl.com/Aboutus/Awards24.aspxhttp://www.iocl.com/Aboutus/AwardsPetroFed33.aspxhttp://www.iocl.com/Aboutus/AwardsPetroFed33.aspxhttp://www.iocl.com/Aboutus/IndianOil_winsReader'sDigestAward%20.aspxhttp://www.iocl.com/Aboutus/IndianOil_winsReader'sDigestAward%20.aspxhttp://www.iocl.com/Aboutus/Awards35.aspxhttp://www.iocl.com/Aboutus/Awards40.aspxhttp://www.iocl.com/Aboutus/Awards39.aspxhttp://www.iocl.com/Aboutus/Awards43.aspxhttp://www.iocl.com/Aboutus/Awards45.aspxhttp://www.iocl.com/Aboutus/Awards45.aspxhttp://www.iocl.com/Aboutus/Awards48.aspx
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    We define sustainability as maximum yield from local

    resources in consonance with long-term

    environmental conditions to achieve a sensible and

    justifiably distributed level of economic well-being

    that can be bear on continually for many human

    generations so that per capita utility or wellbeing is

    increasing over time, it can done by integrating

    system where the overall productivity is dependent on

    maintaining soil, water, plant and animal resources

    WE TALK ABOUT SUSTAINABLE

    ECONOMIC GROWTH

    Economic growth means real GNP per capita

    is increasing over time. But observation of

    such a trend does not mean that growth is

    sustainable.

    Sustainable economic growth means that real

    GNP per capita is increasing over time and

    the increase is not threatened by feedback

    from either biophysical impacts (pollution,

    resource problems) or from social impacts

    (social disruption).

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    SECTION 2.5 SOME MAJOR AREAS

    WHERE SUSTAINABILITY PLAYS AN

    The Ecological Footprint is being used to help

    corporations improve their market foresight, set

    strategic direction, manage performance and

    communicate their strengths.

    By providing a common unit, the Footprint

    helps business to establish benchmarks, setquantitative targets and evaluate alternatives for

    future activities. The Footprint is compatible

    with all scales of company operations, and

    provides both aggregated and detailed results.

    The most important thing a

    corporation can do for society is to

    contribute to a prosperous economy.

    Only business can create wealth;

    other institutions in society areprincipally involved in redistributing

    wealth or investing it to meet

    human needs. A long-term synergy

    between economic social and

    environmental objectives

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    IMPORTANT ROLE FOR IOCL

    Climate Change Risks for Oil & Gas Sector

    It will help and contribute to national objectives on the environment to reduce its emission and

    become creditworthy.

    To make company a more attractive place to work and invest.

    It will improve its market image among its consumers and suppliers i.e. improved

    competitiveness and reputation

    It can gain and invest in carbon credits.

    It will increase efficiency and will increase profit

    It focuses on clean and green technology and which is demand of the era

    It will focus on energy conservation and will help nation to meet its present and future demands

    It can get incentives and benefits from the government

    It will make a shift to better technology which may result in high efficiency and profits.

    Can invest in voluntary markets like gold standards.

    To market their product efficiently.

    To attract environmentally conscious customers.

    Global warming poses threat of sea level rise, hurricanes/ other natural calamitiesfor especially those situated in the coastal regions.

    Coastal E&P facilities, Refineries can face huge damage due to cyclones and

    hurricanes Health effects on workforce

    Extreme weather conditions resulting in increased energy cost, higher contingency

    requirement resulting in erosion of profit margins

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    Whether supply chain is disturbed due to extreme weather and can affect intime of delivery ,sales and ultimately in profits

    Eco-friendly packing may result in high cost Resource availability may be the issue.

    Energy Security :- supply of oil and gas and fuel use Long-term impact of carbon price uncertainty on fundamental energy pricesWater availability Cost of adaptation Low GHG alternatives

    Effect on Gross Refining Margin. As energy costs increase, Oil industries usingconventional and carbon intensive energy sources will see a reduction in the GRM

    Green products launched by the competitor which is preferred by environment

    conscious customer ( Introduction of new climate friendly products)

    Environment friendly competitor can have better public image

    People may not pay more for environment.

    Carbon tax implementation on states by Central government can affect

    profitability of the Oil & Gas sector

    Legal binding on company to reduce emissions by government or international

    agency

    Legal commitment by the company to reduce emissions.

    Short-term market dislocations due to regulatory uncertainty

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    Pollution

    PART C: - MANAGEMENT

    CHAPTER 4: - ROUTE MAP FOR IOCL

    SECTION 4.1: -ENVIRONMENTAL BUSINESS PLANNING A STEP BY STEPAPPROACH

    ENVIRONMENT

    C

    O

    M

    P

    L

    I

    A

    N

    C

    E

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    PHASE 1: - UNDERSTANDING POLICY AND LEGAL SETTING

    The objective of Phase I is to identify main drivers linked to environmental issues (e.g., energy supply

    and demand, fuel technologies, public policies and regulations, energy prices, carbon prices),

    Study and identify national development and environmental policies

    Study and identify companies development and environmental policies

    Study and identify international development and environmental policies

    PHASE 2:- MEASURE AND EVALUATE COMPANYS ENVIRONMENTAL PERFORMANCE

    The objective of Phase 2 is to monitor measure and evaluate the main business activities and its impact

    on environment and can do GAP analysis that is done in next phase

    Identifying the main activities and environmental impacts of each business unit

    (Environmental impact assessment (EIA), andEnvironmental management plan (EMP) preparation, Energy Audit)

    Measure all positive and negative impact on the environment

    Comparing the impacts with the main concerns of each business units stakeholders, and

    Prioritizing the issues into high, medium and low levels of concern.

    Identifying main sources of uncertainty,

    PHASE1

    Understanding Policy andLegal setting

    PHASE 2 Measure and

    EvaluateCompany'sEnvironmentalperformance

    PHASE3

    GAPAnalysisand Areasto Work

    PHASE 4 Develop

    Strategis

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    PHASE 3: - GAP ANALYSIS AND AREAS TO WORK

    The objective of Phase 3 is to do see where company stands today ,what company has done related to

    environment ,what further it can done to improve environment management and to elaborate different

    scenarios that could help to develop long-term strategic responses. This work involve

    From above , calculate and do the Gap analysis

    Determine the core areas to be focus where improvement is needed

    Possibility of improvement and process of mitigation.

    PHASE 4:- DEVELOP STRATEGIES

    The objective of Phase 3 is to develop a number of long-term strategies for dealing with the future

    scenarios. These strategies will reflect different attitudes to both threats and opportunities linked to

    environmental concerns: - to work on climate change, Air/water/soil pollution

    Review previous phases

    Suggested strategies

    Sustainability parameters

    Suggest Mitigation and adaptation policies

    Develop strategies

    CHAPTER 5: - UNDERSTANDING REGULATORY FRAMEWORK AND LEGAL

    SETTING

    SECTION 5.1: - INDIA'S NATIONAL ACT ION PLAN ON CLIMATE CHANGE

    On June 30, 2008, Prime Minister Manmohan Singh released India s first National Action Plan on

    Climate Change (NAPCC) outlining existing and future policies and programs addressing climate

    mitigation and adaptation. The plan identifies eight core national missions running through 2017 and

    directs ministries to submit detailed implementation plans to the Prime Ministers Council on Climate

    Change by December 2008.

    National Solar Mission: The NAPCC aims to promote the development and use of solar energy for power

    generation and other uses with the ultimate objective of making solar competitive with fossil-based

    energy options. The plan includes:

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    Specific goals for increasing use of solar thermal technologies in urban areas, industry, and

    commercial establishments;

    A goal of increasing production of photovoltaics to 1000 MW/year; and

    A goal of deploying at least 1000 MW of solar thermal power generation.

    Other objectives include the establishment of a solar research center, increased international

    collaboration on technology development, strengthening of domestic manufacturing capacity,

    and increased government funding and international support.

    National Mission for Enhanced Energy Efficiency: Current initiatives are expected to yield savings of

    10,000 MW by 2012. Building on the Energy Conservation Act 2001, the plan recommends:

    Mandating specific energy consumption decreases in large energy-consuming industries, with a

    system for companies to trade energy-savings certificates;

    Energy incentives, including reduced taxes on energy-efficient appliances; and

    Financing for public-private partnerships to reduce energy consumption through demand-side

    management programs in the municipal, buildings and agricultural sectors.

    National Mission on Sustainable Habitat: To promote energy efficiency as a core component of urban

    planning, the plan calls for:

    Extending the existing Energy Conservation Building Code;

    A greater emphasis on urban waste management and recycling, including power production

    from waste;

    Strengthening the enforcement of automotive fuel economy standards and using pricing

    measures to encourage the purchase of efficient vehicles; and

    Incentives for the use of public transportation.

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    National Water Mission: With water scarcity projected to worsen as a result of climate change, the plan

    sets a goal of a 20% improvement in water use efficiency through pricing and other measures.

    National Mission for Sustaining the Himalayan Ecosystem: The plan aims to conserve biodiversity, forest

    cover, and other ecological values in the Himalayan region, where glaciers that are a major source of

    Indias water supply are projected to recede as a result of global warming.

    National Mission for a Green India: Goals include the afforestation of 6 million hectares of degraded

    forest lands and expanding forest cover from 23% to 33% of Indias territory.

    National Mission for Sustainable Agriculture: The plan aims to support climate adaptation in agriculture

    through the development of climate-resilient crops, expansion of weather insurance mechanisms, and

    agricultural practices.

    National Mission on Strategic Knowledge for Climate Change: To gain a better understanding of climate

    science, impacts and challenges, the plan envisions a new Climate Science Research Fund, improved

    climate modeling, and increased international collaboration. It also encourage private sector initiatives

    to develop adaptation and mitigation technologies through venture capital funds.

    The NAPCC also describes other ongoing initiatives, including:

    Power Generation: The government is mandating the retirement of inefficient coal-fired power

    plants and supporting the research and development of IGCC and supercritical technologies.

    Renewable Energy: Under the Electricity Act 2003 and the National Tariff Policy 2006, the

    central and the state electricity regulatory commissions must purchase a certain percentage of

    grid-based power from renewable sources.

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    Energy Efficiency: Under the Energy Conservation Act 2001, large energy-consuming industries

    are required to undertake energy audits and an energy labeling program for appliances has

    been introduced.

    Ministries with lead responsibility for each of the missions are directed to develop objectives,

    implementation strategies, timelines, and monitoring and evaluation criteria, to be submitted to the

    Prime Ministers Council on Climate Change. The Council will also be responsible for periodically

    reviewing and reporting on each missions progress. To be able to quantify progress, appropriate

    indicators and methodologies will be developed to assess both avoided emissions and adaptation benefits

    SECTION 5.2: - GLOBAL CLIMATE CHANGE: THREE POLICY PERSPECTIVES

    CONGRESSIONAL RESEARCH STRATEGY (CSR) REPORT PREPARED BY lARRY PARKER AND

    JOHN BLODGETT SPEACIALIST S IN ENERGY AND ENVIRONMENT POLICY RESOURCES, SCIENCE,

    AND INDUSTRY DIVISION

    The many personal proclivities and professional constructs that help shape anindividuals perspectives on environmental issues in general, and global climatechange in particular, can be grouped into three perspectives that affect proposed policies. These

    perspectives, which can intertwine and overlap, are:

    that environmental problems are the result of inappropriate or misused technologies, and thatthe solutions to the problems lie in improving or correcting technology;

    that environmental problems are the result of market failures, and that the solutions to theproblems lie in ensuring that market decisions take into account all costs, includingEnvironmental damages; and

    that environmental problems result from a combination of ignorance of, indifference to, andeven disregard for, the ecosystem on which human life ultimately depends, as well as for theother living creatures that share the planet; and that the solutions to environmental problems liein developing an understanding of and a respect for that ecosystem and in providingmechanisms for people to express the priority they place on the environment in their dailychoices.

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    SECTION 5.3: - BALI ACTION PLAN

    The Bali Action Plan is centred on four main building blocks mitigation, adaptation, technology and

    financing. The future discussion should address enhanced national/international action, including theconsideration of:

    Measurable, reportable and verifiable nationally appropriate mitigation commitments or actionsby all developed countries, and;

    Nationally appropriate mitigation actions by developing country Parties, supported and enabledby technology, financing and capacity-building, in a measurable, reportable and verifiablemanner.

    Reducing emissions from deforestation and forest degradation

    (REDD) also discussed

    SECTION 5.4: -POLITICAL OUTCOMES FROM PREVIOUS SESSIONS OF THE COP

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    SECTION 5.5: - COPENHAGEN ACCORD

    The Copenhagen Accord is a political (as opposed to legal) agreement of a novel form. Formal decisionsunder the U.N. climate process are typically taken by consensus. As some parties opposed the accord,

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    the decision entering it into the conferences proceedings is not technically an acceptance of itssubstantive content by the Conference of the Parties (or by the parallel Meeting of the Parties underKyoto). Rather, the decisions by the two bodies only take note of the attached accord. Individualcountries, in all likelihood a strong majority of the Conventions 192 parties, will affix their names to theaccord in the coming weeks. The accord declares itself operational immediately, although many of its

    provisions will require further elaboration (in some cases 0explicitly, and in other cases presumably, bythe UNFCCC Conference of the Parties). The timeline for doing so is not specified. In substance, theaccord speaks to all of the core elements of the Bali Action Plan: a long-term goal; mitigation;adaptation; finance; technology; forests; and measurement, reporting and verification.The UN Conference on Climate Change in Copenhagen presents a critical opportunity to strengthen the

    international response to global climate change. The aim in Copenhagen should be a comprehensive

    political agreement that puts countries on a clear path to concluding a legally binding agreement in

    2010. This interim agreement should deliver both immediate action and the broad architecture of a

    future treaty, including:

    Ambitious political commitments for mid-term action by all major economies: economy-wide emission reduction targets for developed countries, and quantified mitigation actions

    by major developing countries;

    A prompt start on adaptation, forestry, technology and capacity-building activities and

    support in developing countries;

    The core elements of a legally binding agreement to be finalized over the coming year,

    including: a framework for verifiable mitigation commitments by all major economies;

    new arrangements for sustained mitigation and adaptation support to developing

    countries; and a system to verify countries actions and support; and,

    A clear mandate to conclude negotiations on a legally binding agreement at COP 16 inDecember 2010.

    CHAPTER 6:- OPERATION AND PROCEDURE

    SECTION 6.1: - MEASURE AND EVALUATE ORGANIZATION ENVIRONMENT

    PERFORMANCE

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    PHASE 1:- AUDIT PREPARATION

    /

    PHASE 2:- MATERIAL BALANCE

    Phase 1:-

    AuditPrepration

    Phase 2:-MaterialBalance

    Phase 3:-Synthesis

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    A. Process input

    B. Process output

    PROCESS INPUT

    PROCESS OUTPUT

    Find total waste water

    Find total gas emissions

    Gather I/P and O/P information

    Derive preliminary material balance

    Evaluate and define material balance

    PHASE 3: - SYNTHESIS

    A. Identifying waste reduction options

    B. Evaluate waste reduction optionC.Waste reduction action plan

    A.IDENTIFYINGWASTE RE DUCTIONOPTIONS

    B.EVALUATE WASTEREDUCTION OPTION C.WASTEREDUCTIONACTION PLAN

    i) Environmental and

    economic viability of theproject

    Study and identify wastemanagement plan

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    Refer and identify variousnational and internationalpolicies and legal settings

    Refer and apply thevarious guidelines.

    Make and design actionplan for the company

    SECTION 6.2 STARTING THE FLOWPROCESS

    STEP:-1 DESCRIBE AND DIVIDE VARIOUS DEPARTMENTS OF IOCL

    The objective of phase 1 is to identify the various departments of IOCL where waste is generated and

    has a impact on environment so that audit can be performed. Later we will divide the the unit operation

    of each department sothat we can identify and measure each activity individually and can reach to the

    main activity where waste is a problem.

    Various departments of IOCL are:-

    1) Refining

    2) Marketing and sales

    3) R&D

    4) Petrochemicals Gas

    5) E&P

    STEP:-2 DIVIDE PROCESSES IN UNIT OPERATIONS

    In this step we will divide each department in its unit operation so that we can have audit for each

    activity and operation

    Prepare team and assign duties to each team for each department.

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    STEP3:- CONSTRUCT PROCESS FLOW DIAGRAM

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    STEP4:-DETERMINE THE INPUT AND RECORD THE USAGE

    EN8 WATER

    Reporting the total volume of water withdrawn by source contributes to an understanding of the

    overall scale of potential impacts and risks associated with the reporting organizations water use. The

    total volume withdrawn provides an indication of the organizations relative size and importance as a

    user of water, and provides a baseline figure for other calculations relating to efficiency and use.

    Identify the total volume of water withdrawn from any water source that was either withdrawn directlyby the reporting organization or through intermediaries such as water utilities. This includes the abstractionof cooling water.

    Report the total volume of water withdrawn in cubic meters per year (m3/year) by the following sources:

    Surface water, including water from wetlands, rivers, lakes, and oceans; (Blue Water)

    Ground water; (Green Water)

    Rainwater collected directly and stored by the reporting organization; (Green Water)

    Waste water from another organization (Grey Water); and

    Municipal water supplies or other water utilities (Blue Water).

    EN1 MATERIAL: - MATERIALS USED BY WEIGHT OR VOLUME

    Identify total materials used, including materials purchased from external suppliers and those

    obtained from internal sources (captive production and extraction activities). This can include:

    Raw materials (i.e., natural resources used for conversion to products or services such as ores,minerals, wood, etc.);

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    Associated process materials (i.e., materials that are needed for the manufacturing process butare not part of the final product, such as lubricants for manufacturing machinery);

    Semi-manufactured goods or parts, including all forms of materials and components other than

    raw materials that are part of the final product; and

    Materials for packaging purposes.

    Identify non-renewable and direct materials used. Convert any measurements into estimated weight

    or volume, calculated as is rather than by dry substance/weight..

    Report the total weight or volume of :

    Non-renewable materials used; and

    Direct materials used.

    EN3 ENERGY: - DIRECT ENERGY CONSUMPTION BY PRIMARY ENERGY

    SOURCE.

    Identify primary energy sources purchased by the organization for its own consumption. This includes:

    Direct non-renewable energy sources including:

    Coal; Natural gas; and Fuel distilled from crude oil, including gasoline, diesel, and liquefied

    petroleum gas (LPG), compressed natural gas (CNG), liquefied natural gas (LNG), butane,propane, ethane, etc.

    Direct renewable energy sources including:

    Biofuels;

    Ethanol; and Hydrogen.

    * Note: Biomass is excluded from direct renewable energy sources for the purpose of

    reporting to the WRI/WBCSD GHG Protocol. For alignment with the WRI/WBCSD GHG

    Protocol, direct CO2 emissions from the combustion of biomass should be reported

    separately.

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    Identify the amount of primary energy the reporting organization acquires by producing, extracting,

    harvesting, collecting, or converting it from other forms of energy in joules or multiples. This can

    include the same energy sources listed as direct energy consumption.

    Identify the amount of primary energy exported outside the reporting

    boundary in joules or multiples.

    Calculate total energy consumption in joules or multiples such as gigajoules (one billion joules or

    109 joules) using the following equation:

    EN4 ENERGY: - INDIRECT ENERGY CONSUMPTION BY PRIMARY SOURCE.

    Identify the amount of intermediate energy purchased and consumed from sources external to thereporting organization in joules or multiples, such as gigajoules (one billion joules, or 109 joules). Thisincludes:

    Intermediate

    energy

    purchase

    dand

    consumed from non-renewable energy sources as listed under EN3, including: Electricity;

    Heating and Cooling;

    Steam;

    Nuclear energy; and

    Other forms of imported energy.

    Total direct energy consumption = direct primary energy

    purchased + direct primary energy produced- direct primary

    energy sold

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    Intermediate energy purchased and consumed from renewable energy sources including:

    Solar;

    Wind;

    Geothermal;

    Hydro energy;

    Biomass based intermediate energy; and

    Hydrogen based intermediate energy.

    Identify the amount of primary fuels consumed to produce intermediate energy based on the total

    amount of energy purchased from external suppliers above (EN3- Energy Purchased). To estimate

    the fuels consumed to produce purchased energy, use either:

    Fuel consumption data acquired from the electricity provider if these data are available;

    Default data for electricity and heat; or

    Estimations where default figures are not available.

    Using data from 2.1, report:

    The total amount of indirect energy used by indirect non-renewable sources and indirectrenewable sources in terms of intermediate energy; and

    The corresponding primary energy consumed in its production.

    *Note: The sum of primary energy sources (expressed in joules) used to generate

    intermediate energy will, depending on the primary source used, significantly exceed the

    amount of intermediate energy purchased (in joules) due to grid and efficiency losses when

    converting and transporting energy.

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    STEP 4:- MEASURE CURRENT LEVEL OF WASTE WHICH IS REUSED,

    RECYCLED

    EN10 WATER: - PERCENTAGE AND TOTAL VOLUME OF WATER

    RECYCLED AND REUSED.

    2.1 This Indicator measures both water that was treated prior to reuse and water that was not treated

    prior to reuse. Grey water (i.e., collected rainwater and wastewater generated by household processes

    such as washing dishes, laundry, and bathing) is included.

    Calculate the volume of recycled/reused water based on the volume of water demand satisfied

    by recycled/reused water rather than further withdrawals. For example, if the organization has a

    production cycle that requires 20 cubic meters of water per cycle, the organization withdraws20 cubic meters of water for one production process cycle and then reuses it for an additional

    three cycles. The total volume of water recycled/ reused for that process is 60 cubic meters.

    Report the total volume of water recycled/reused by the organization in cubic meters per year

    (m3/ year) and also as a percentage of the total water withdrawal reported under Indicator

    EN8

    EN2 MATERIAL: - PERCENTAGE OF MATERIALS USED THAT ARE RECYCLED

    INPUT MATERIALS.

    Identify the total weight or volume of materials used as reported under EN1. Identify the total weight or volume of recycled input materials. If estimation is required, state the

    estimation methods.

    Report the percentage of recycled input materials used by applying the following formula:

    EN2= Total recycled input materials used x 100

    Input materials used

    EN 5 ENERGY: - ENERGY SAVED DUE TO CONSERVATION AND

    EFFICIENCY IMPROVEMENTS.

    Identify total energy saved by efforts to reduce energy use and increase energy efficiency.

    Reduced energy consumption from reduced production capacity or outsourcing should not be

    included in this Indicator.

    Report the total amount of energy saved in joules or multiples, such as gigajoules (one billion

    joules or 109 joules). Take into consideration energy saved due to:

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