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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Environment

Rudra Cement Ltd. emits 90,000 tCO2e (Scope 1 and 2 combined) and has turnover of Rs. 600 crore. Next year emissions rise to 99,000 tCO2e while turnover rises to Rs. 750 crore. How does its emission intensity per Rs. crore of turnover change, and what does it show?

Intensity falls from 150 to 132 tCO2e per Rs. crore, while absolute emissions increased by 9,000 tCO2e. Turnover grew faster than emissions, so efficiency improved even though total emissions rose, which is why intensity and absolute figures should be disclosed together.

  1. AFalls from 150 to 132 tCO2e per crore, although absolute emissions roseCorrect
  2. BRises from 150 to 165 tCO2e per crore
  3. CFalls from 150 to 132 tCO2e per crore, so absolute emissions also fell
  4. DStays at 150 tCO2e per crore

Explanation

Year one intensity is 90,000/600 = 150. Year two is 99,000/750 = 132. Intensity improved by 12%, yet absolute emissions rose by 10%. The option claiming absolute emissions fell is wrong because 99,000 exceeds 90,000.

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