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

Sagar Steel Ltd earlier consumed 50,000 GJ to make 10,000 tonnes of steel. This year it consumed 54,000 GJ to make 12,000 tonnes. How should the company Secretary describe the change in energy intensity per tonne?

Energy intensity fell from 5.0 to 4.5 GJ per tonne, which is an improvement. Dividing energy used by output gives 50,000/10,000 earlier and 54,000/12,000 now. Total energy rose, but each tonne needed less, so efficiency improved.

  1. AIt rose from 5.0 to 4.5 GJ per tonne
  2. BIt fell from 5.0 to 4.5 GJ per tonne, an improvementCorrect
  3. CIt stayed at 5.0 GJ per tonne because total energy rose
  4. DIt fell from 5.0 to 4.0 GJ per tonne

Explanation

Earlier intensity was 50,000/10,000 = 5.0 GJ per tonne. Now it is 54,000/12,000 = 4.5 GJ per tonne. Intensity improved even though total energy rose, so judging by total consumption alone is the mistake behind the unchanged option.

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