NTPC

TRIPLE BOTTOM LINE

ANALYSIS
Triple Bottom Line Analysis of NTPC, where we study the social, economic and environmental aspects
of the organization. Team Members

 Aakansha Sharma
 Amit Shrivastava
 Gaurav Sinha
 Ishwarya R
 Sahil Bansal
 Tushar Sharma
 Varun Gupta
TABLE OF CONTENTS

Table of Contents

NTPC PROFILE ..............................................................................................................................3

TRIPLE BOTTOM LINE ..................................................................................................................5
NTPC PROFIT PERSECTIVE ...................................................................................................8
NTPC PEOPLE PERSPECTIVE .................................................................................................9
NTPC PLANET PERSPECTIVE ............................................................................................... 14
BIBLIOGRAPHY…………………………………………………………………………………………………………………18
 NTPC PROFILE

NTPC: Company Profile

 India’s largest power company, NTPC was set up in 1975 to accelerate power
development in India. NTPC is emerging as a diversified power major with presence in
the entire value chain of the power generation business.
 Apart from power generation, which is the mainstay of the company, NTPC has
already ventured into consultancy, power trading, ash utilisation and coal mining.
 Ranked 337th in the ‘2012, Forbes Global 2000’ ranking of the World’s biggest
companies.
 Became a Maharatna company in May, 2010, 1 of the only 4 companies to be
awarded this status.
 Total installed capacity of the company is 39,174 MW (including JVs) with 16 coal
based and 7 gas based stations, located across the country.
 In addition under JVs, 7 stations are coal based & another station uses naptha/LNG as
fuel.
 The company has set a target to have an installed power generating capacity of
1,28,000 MW by the year 2032.
 The capacity will have a diversified fuel mix comprising 56% coal, 16% Gas, 11%
Nuclear and 17% Renewable Energy Sources(RES) including hydro.
 By 2032, non fossil fuel based generation capacity shall make up nearly 28% of NTPC’s
portfolio.
 NTPC has been operating its plants at high efficiency levels. Although the company
has 17.75% of the total national capacity, it contributes 27.40% of total power
generation due to its focus on high efficiency.
 In October 2004, NTPC launched its Initial Public Offering (IPO) consisting of 5.25% as
fresh issue and 5.25% as offer for sale by Government of India.

 NTPC thus became a listed company in November 2004 with the Government holding
89.5% of the equity share capital.
NTPC PROFILE

 In February 2010, the Shareholding of Government of India was reduced from 89.5%
to 84.5% through Further Public Offer. The rest is held by Institutional Investors and
the Public.
 NTPC contributes more than one-fourth of India’s power generation.
 The concept of Corporate Social Responsibility is deeply ingrained in NTPC's culture.
Through its expansive CSR initiatives, NTPC strives to develop mutual trust with the
communities that surround its power station
 TRIPLE BOTTOMLINE

IT CONSISTS of THREE P’s: PEOPLE, PLANET and PROFIT

The phrase “the triple bottom line” was first coined in 1994 by John Elkington, the
founder of a British consultancy called Sustainability. John Elkington strove to measure
sustainability during the mid-1990s by encompassing a new framework to measure
performance in corporate America. This accounting framework, called the triple bottom line
(TBL), went beyond the traditional measures of profits, return on investment, and
shareholder value to include environmental and social dimensions. It consists of 3P’s.

 One is the traditional measure of corporate profit—the “bottom line” of the profit and
loss account.
 The second is the bottom line of a company's “people account”—a measure in some
shape or form of how socially responsible an organization has been throughout its
operations.
 The third is the bottom line of the company's “planet” account—a measure of how
environmentally responsible it has been.

It aims to measure the financial, social and environmental performance of the corporation
over a period of time. In some senses the TBL is a particular manifestation of the balanced
scorecard. Behind it lies the same fundamental principle: what you measure is what you get,
because what you measure is what you are likely to pay attention to. Only when companies
measure their social and environmental impact will we have socially and environmentally
responsible organizations.

Calculating the TBL

The 3Ps do not have a common unit of measure. Profits are measured in dollars.
Finding a common unit of measurement is one challenge. Some advocate monetizing all the
dimensions of the TBL, including social welfare or environmental damage. While that would
have the benefit of having a common unit – dollars many object to putting a dollar value on
wetlands or endangered species on strictly philosophical grounds. Others question the
method of finding the right price for lost wetlands or endangered species. Another solution
would be to calculate the TBL in terms of an index. One problem with the triple bottom line is
that the three separate accounts cannot easily be added up. It is difficult to measure the
planet and people accounts in the same terms as profits in terms of cash. The full cost of an
TRIPLE BOTTOMLINE

oil-tanker spillage, for example, is probably immeasurable in monetary terms, as is the cost of
displacing whole communities to clear forests, or the cost of depriving children of their
freedom to learn in order to make them work at a young age In this way, one eliminates the
incompatible units issue and, as long as there is a universally accepted accounting method,
allows for comparisons between entities, e.g., comparing performance between companies,
cities, development projects or some other benchmark. An example of an index that
compares a county versus the nation's performance for a variety of components is the
Indiana Business Research Centre’s Innovation Index.

There is no universal standard method for calculating the TBL. Neither is there
universally accepted standard for the measures that comprise each of the three TBL
categories. This can be viewed as a strength because it allows a user to adapt the general
framework to the needs of different entities (businesses or nonprofits), different projects or
policies (infrastructure investment or educational programs), or different geographic
boundaries (a city, region or country). Both a business and local government agency may
gauge environmental sustainability in the same terms, say reducing the amount of solid waste
that goes into landfills, but a local mass transit might measure success in terms of passenger
miles, while a for-profit bus company would measure success in terms of earnings per share.
The TBL can accommodate these differences. Additionally, the TBL is able to be case (or
project) specific or allow a broad scope—measuring impacts across large geographic
boundaries—or a narrow geographic scope like a small town. A case (or project) specific TBL
would measure the effects of a particular project in a specific location, such as a community
building a park. The TBL can also apply to infrastructure projects at the state level or energy
policy at the national level.

The TBL and its core value of sustainability have become compelling in the business
world due to accumulating anecdotal evidence of greater long-term profitability. For example,
reducing waste from packaging can also reduce costs. Among the firms that have been
exemplars of these approaches are General Electric, Unilever, Proctor and Gamble, 3M
Although these companies do not have an index-based TBL, one can see how they measure
sustainability using the TBL concept.
TRIPLE BOTTOMLINE

HOW BUSINESSES MEASURE TBL

 Economic
 Amount of taxes paid
 Social
 Average hours of training/employee
 From welfare to career retention
 Charitable contributions
 Environmental/Safety
 Safety incident rate
 Lost/restricted workday rate
 Sales dollars per kilowatt hours
 Greenhouse gas emissions
 Use of post-consumer and industrial recycled material
 Water consumption
 Amount of waste to landfill
PROFIT ANALYSIS

"Profit" is the economic value created by the organization after deducting the cost of all
inputs, including the cost of the capital tied up. It therefore differs from traditional accounting
definitions of profit. In the original concept, within a sustainability framework, the "profit"
aspect needs to be seen as the real economic benefit enjoyed by the host society. It is the
real economic impact the organization has on its economic environment. This is often
confused to be limited to the internal profit made by a company or organization (which
nevertheless remains an essential starting point for the computation). Therefore, an original
TBL approach cannot be interpreted as simply traditional corporate accounting profit plus
social and environmental impacts unless the "profits" of other entities are included as a social
benefit

Profit Analysis
Worksheet.xlsx.xlsx
NTPC: PEOPLE PERSEPECTIVE

The key stakeholders associated with the “people” dimension of the triple bottom line
include

 Local communities impacted by the operations of NTPC-Corporate Social

Responsibility(CSR)
 Employees of NTPC.
 NTPC-Empowering People

EDUCATION

NTPC has marked 15 - 20 % of its CSR-Corporate Development budget for education to

individual stations. Among the various activities on education are:

 Facilitating primary education through adopting schools and introducing programmes

to boost its universalization.
 Promotion of rural culture and sports; Adult Education Centers; Programmes of
education for girls
 Provision of education aids and equipments, scholarships and sponsorship.
 In neighboring areas, 48 schools being currently run in NTPC power projects
benefiting about 40,000 students
 Schools are managed by premier as academic societies like the D P S Society, the D A V
Society, the Chinmaya Mission Trusts. Joseph's society among others apart from
providing infrastructural and financial support wherever required, N T P C also
provides requisite support to ensure availability of qualified teachers and quality
annual educational plans for each and every institution.
 Provides a 50 % subsidy for organizing coaching classes in power project towns hips ,
for students who wish to pursue higher studies in engineering and medicine
 NTPC conducts regular training programmes for teachers in order to upgrade their
teaching and technical skills. Workshops are also organized for principals through
Indian Institute of Management, Ahmedabad - India's premier business school.
 Overall excellence in these schools is ensured through improved educational
standards, innovative extra-curricular activities, value education and implementing
professional management systems.
NTPC: PEOPLE PERSEPECTIVE

 A pilot project on Inclusive Education has been taken up at Dadri. Children with special
needs were identified from neighboring villages and they have been integrated in its
schools from the academic session 2005-2006. This model will also be adopted by
NTPC schools.

LIVELIHOOD

NTPC focuses on enhancing quality, skill and sustainability of the poor, thus widening the
scope of livelihood opportunities for them. Some of the related activities are:-

 Organizing training for vocational trades.

 Facilitating government sponsored schemes.
 Schemes for specific target groups like women, disabled, elderly and other
marginalized groups.
 Marketing tie-ups.
 Creating small-scale economic opportunities other than farming.
 NTPC volunteers run E-VOICE (Employees Voluntary Organization for Initiatives in
Community Empowerment) at its stations with numerous programmes on education,
livelihood, health, advocacy, etc.
 NTPC employees are contributing actively to 25 E-VOICE across the country.

COMMUNITY DEVELOPMENT

The concept of Corporate Social Responsibility is deeply ingrained in NTPC's culture.

Through its expansive CSR initiatives NTPC strives to develop mutual trust with the
communities that surround its Power Station. Objectives are:

 To contribute to sustainable power development by discharging corporate social

responsibilities.
 Lead the sector in the areas of resettlement and rehabilitation and environment
protection including effective ash-utilization, peripheral development and energy
conservation practices.
NTPC: PEOPLE PERSEPECTIVE

RESETTLEMENT AND REHABILITATION

 NTPC has been a committed and socially responsible organization since its
inception and has formulated specific guidelines for the welfare of Project
Affected Persons (PAP's). It is one of the firsts in the corporate sector to formulate
comprehensive resettlement and rehabilitation policy for addressing the issue of
PAPs. In line with its social objectives, the company has focused on effective
resettlement and rehabilitation (R&R) of PAPs and also community development
works in and around the projects.
 In many areas such as Bihar,Assam,Rihand-UP,Simhadri-AP,Dulanga-Orissa,Kol
Dam-HP etc
 Land has been acquired and resettlement and rehabilitation process is going on.

EMPOWERING EMPLOYEES-PEOPLE BEFORE PLANT LOAD FACTOR

People before PLF (Plant Load Factor)' is the guiding philosophy behind the entire
gamut of HR policies at NTPC. NTPC is strongly committed to the development and
growth of all our employees as individuals and not just as employees. It currently employs
approximately 26,000 people.

Competence building, Commitment building, Culture building and Systems building

are the four building blocks on which our HR systems are based.

NTPC’s Performance Management System (PACE) is based on joint goal setting

principle. The performance targets are well discussed and jointly arrived at by the
employee and his reporting officer. The process comprises

i) Joint target setting by the senior and his subordinate at the beginning of PACE
cycle,

ii) Midyear review of targets by the senior and subordinate

iii) Performance feedback by the senior at the end of evaluation cycle and

iv) Training needs identification by the Senior and his subordinate based on
competency gaps
NTPC: PEOPLE PERSEPECTIVE

– There is also an "Appeal" mechanism under which an employee can voice his grievance,
if he is dissatisfied by his performance rating. Under the system, he can take up the case
with committee constituted for the purpose, which is one level higher than the
Performance Management Committee responsible for his performance rating

– For senior management positions in NTPC, a system of 360º feedback by peers,

subordinate, seniors and customers is prescribed. It is part of the leadership assessment
system of NTPC wherein an employee can give feedback in full confidence and complete
secrecy through an online feedback questionnaire. This feedback is used for bridging
competency gaps in senior management through formulation of Individual

– Training Policy envisages a minimum of 7 man days of training per employee per year

AWARDS AND RECOGNITION

 Bestowed with Golden Peacock Award for Corporate Social Responsibility (CSR)
2012 constituted by Institute of Directors (IOD), New Delhi. Shri Neeraj Kapoor
DGM (Resettlement & Rehabilitation). The award was presented among an
international audience is a recognition of its efforts in the field of CSR and has
further enhanced its social image in the global community.
 Awarded SCOPE Meritorious Award 2010-11 for Corporate Social Responsibility &
Responsiveness by The President of India Smt. Pratibha Devisingh Patil.
 Awarded in the category of 'Social and Community Impact' of 2nd India Power
Awards 2009 for pioneering in Corporate Social Responsibility strides.
NTPC: PEOPLE PERSEPECTIVE

 NTPC – CSR has been conferred with CII-ITC Sustainability Award for the
Commendation for Significant Achievement among Large Business Organizations
for the year 2009.
 NTPC’s results for FY10 showed a profit after tax of Rs. 8,728 crores, earning it the
‘PSU Excellence Award 2010’ for best financial performance.
 Bagged 3rd rank in India’ Best Companies to Work For- 2012 by The Great Place to
Work and The Economic Times
NTPC: PLANET PERSPECTIVE

While leading the nation’s power generation league, NTPC has remained committed to the
planet. It continues to take various pro-active measures for protection of the planet and
ecology around its projects.
NTPC was the first among power utilities in India to start Environment Impact Assessment
(EIA) studies and reinforced it with Periodic Environmental Audits and Reviews.

CENPEEP - CENTRE FOR POWER EFFICIENCY & ENVIRONMENTAL PROTECTION

Towards the reduction of Greenhouse Gas (GHG) emission from Indian thermal power plants,
NTPC has been promoting and deploying efficient power generation technologies and
practices from design stage to operation stage and building local institutional capacities for
continuously striving for eco-friendly technologies.

NTPC established Centre for Power Efficiency & Environmental Protection (CenPEEP) in
collaboration with USAID with a mandate to reduce GHG emissions per unit of electricity
generated by improving the overall performance of coal-fired power plants. The centre
functions as a resource centre for acquisition, demonstration and dissemination of state-of-
the-art technologies and practices for performance improvement of coal fired power plants
for the entire power sector of India.

NTPC has adopted a win-win strategy at CenPEEP by achieving synergy between

environmental concerns and utility needs. It initiated the Comprehensive Performance
Optimisation Programme thereby successfully balancing the dual objectives of reducing
carbon-dioxide emissions that contribute to climate change and facilitating higher efficiency
of power generation.

Under NTPC’s effort for betterment of Indian Power Sector, CenPEEP is also assisting various
state electricity utilities in India by demonstration and dissemination of improved
technologies and practices. To increase outreach to SEBs, 2 regional centres of CenPEEP have
also been established in the Northern Region (Lucknow) and Eastern Region (Patna).This
approach has brought significant benefits to the power plants and helped in the reduction of
emissions.

CenPEEP has demonstrated performance assessment techniques at several NTPC and 14

State Utilities stations. The tests have demonstrated heat rate improvement potential even in
NTPC: PLANET PERSPECTIVE

the best run power stations. Many demonstrated techniques and practices have been
adopted by the stations. In NTPC alone, over 29 million tones of cumulative CO2 has been
avoided since inception of CenPEEP activities. Some of the state utilities have acknowledged
CenPEEP’s support in reducing their emissions by over 5.8 million tones in a year. Some
utilities have acknowledged CenPEEP contribution to their efficiency improvement in
submissions before regulators. In effect, it is the largest GHG emission reduction effort in
power utilities in India. CenPEP has developed ‘Heat Rate Improvement Guidelines’ jointly
with TVA and circulated it to all the coal fired power stations in India.

ASH UTILISATION

Sustainable ash utilization is one of the key concerns at NTPC. The Ash Utilization Division
(AUD), set up in 1991, strives to derive maximum usage from the vast quantities of ash
produced at its coal based power stations. The AUD proactively formulates policies, plans and
programmes for ash utilization. It further monitors the progress in these activities and works
for developing new segments of ash utilization. Ash Utilization Cell at each station, handles
ash utilization activities.

The quality of fly ash produced at NTPC’s power stations is extremely good with respect to
fineness, low unburnt carbon and has high pozzolanic activity and conforms to the
requirements of IS 3812 - 2003-Pulverized Fuel Ash for use as Pozzolana in Cement, Cement
Mortar and Concrete. The fly ash generated at NTPC stations is ideal for use in manufacture
of Cement, Concrete, Concrete products, Cellular concrete products, Bricks/blocks/ tiles etc.
To facilitate availability of dry fly ash to end – users, dry fly ash evacuation and storage system
have been set up at coal based stations. Further, at NTPC-Rihand facility for loading fly ash
into rail wagons has been provided so that fly ash can be transported in bulk quantity through
railway network. Such facility is also being provided at all new up coming coal based power
stations.

Over the years, the Ash Utilization level has reached from meagre 0.3 million tonne in 1991 -
1992 to 26.03 million tonne in 2010-11.

The various segments of ash utilization currently include Cement, Asbestos – Cement
products & Concrete manufacturing industries, Land development, Road embankment
NTPC: PLANET PERSPECTIVE

construction, Ash Dyke Raising, Building Products such as Bricks/ blocks/tiles, Reclamation of
coal mine and as a soil amender and source of micro and macro-nutrients in agriculture.

AFFORESTATION

Maintenance of ecological balance and a perfect environment has been of utmost

importance at NTPC. Environment planning and preservation is an integral part of its project
activities. NTPC undertakes afforestation programmes covering vast tracts of land in and
around its projects in a concerted bid to counter the growing ecological threat.

It has been possible to achieve a satisfactory combination of environmental quality and

techno-economics through determined efforts at NTPC. Continuous vigilance is maintained to
minimise pollution. This is over and above the other environment management programmes
that start simultaneously with start of construction activities.

The appropriate afforestation programme for plant, township, green-belt and other sites are
designed according to the geographical features. Species are selected on the basis of their
adaptability and grouped with local representatives. The growth characteristics, flowering
pattern and canopy (spreading nature) are evaluated in their distribution over these sites of
afforestation. These considerations not only contribute to the aesthetics but also go a long
way in serving as ‘Sinks’ for the pollutant emission of the power plant. At times, they even
combat pollution from other industries in the surrounding area.

NTPC has developed independent Horticulture Department at its projects headed by

experienced horticulture officers / supervisors.Saving existing trees, planting right at the
beginning of construction phase, preservation of trees and advice from State Forest
Departments and agricultural universities are a few general guidelines followed by NTPC.

ENVIRONMENT POLICY & MANAGEMENT

For NTPC, the journey extends much beyond generating power. Right from its inception, the
company had a well defined environment policy. More than just generating power, it is
committed to sustainable growth of power.

In November 1995, NTPC brought out a comprehensive document entitled ‘NTPC

Environment Policy and Environment Management System. Amongst the guiding principles
adopted in the document are the company's pro-active approach to environment, optimum
NTPC: PLANET PERSPECTIVE

utilisation of equipment, adoption of latest technologies and continual environment

improvement. The policy also envisages efficient utilisation of resources, thereby minimising
waste, maximising ash utilisation and ensuring a green belt all around the plant for
maintaining ecological balance.

NTPC has actively gone for adoption of the best international practices on environment,
occupational health and safety areas. The organisation has pursued the Environmental
Management System (EMS) ISO 14001 and the Occupational Health and Safety Assessment
System OHSAS 18001 at its different establishments. As a result of pursuing these practices,
all NTPC power stations have been certified for ISO 14001 & OHSAS 18001 by reputed
national and international certifying agencies.

While deciding the appropriate technology for its projects, NTPC integrates many
environmental provisions into the plant design. In order to ensure that NTPC complies with all
the stipulated environment norms, state-of-the-art pollution control systems / devices (such
as Electrostatic Precipitators, Liquid Waste Treatment Plants & Management Systems, Sewage
Treatment Plants & Facilities) have been installed to control air and water pollution.
BIBLIOGRAPHY

We have used the following sources for this project.

 www.ntpc.co.in
 www.investopedia.com
 www.moneycontrol.com
 www.economictimes.indiatimes.com
 www.businessonline.com