Impact of Energy and Environmental Management Practices on Business Performance of Manufacturing Companies in Gujarat

Abstract

Energy and Environment is contributing a crucial role in the development of a nation. In fact, growth in energy generation and equally carbon emission level has, however, been extremely capital intensive and technologically difficult for the Third World countries. Even in the case of India, while electrification has taken place on a large scale, growth in demand for energy has far outstripped the growth in installed capacities. Also increase in energy intensive economic activities play a crucial role. newline.Every day becomes challenging for Industrial sector to comply international requirements in particular for reduction in environmental hazards requirements from International clients and competitive production cost. newlineDue to increasing cost of energy; production cost of manufacturing sector increases at a large scale day by day and has become a burning issue in present business. Also increasing impacts in environment has become a vital factor for manufacturing industry in international business. Due to higher carbon emission level, it has become extremely difficult for manufacturing sector to comply requirements and compete globally. newlineLack of awareness in fighting with increased energy cost and environmental impacts, becomes bottle neck. At this point, outcome obtained on Environmental performance and Business performance becomes extremely useful to eliminate these burning issues. newline Achievement becomes a paradigm shift for manufacturing sector because it greatly helps for compliance to requirements at global level including statutory, regulatory and international standards such as ISO14001, ISO 50001 and reduce production cost and hence growth in business performance, in terms of environmental, marketing and financial performance. newlineTo promote sustainable development, energy management system should be environmentally, economically and socially sustainable. The indicators of sustainable energy practices need to be identified in a more effective manner. Some of the crucial indicators are application of the end-use ener