Synopsis of End Term Project

On
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Submitted By:__________ Supervisor:____________________
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LAL BAHADUR SHASTRI INSTITUTE OF MANAGEMENT
NEW DELHI
TITLE_____________________________________
INTRODUCTION
OBJECTIVES OF THE STUDY
HYPOTHESIS
REVIEW OF THE EARLIER STUDIES
RESEARCH METHODOLOGY
DATABASE
SAMPLE SIZE AND SAMPLING METHOD
RESEARCH TOOLS
STUDY PERIOD
SIGNIFICANCE OF THE STUDY
CHAPTERISATION PLAN
BIBLIOGRAPHY
Si"nature of Supervisor Si"nature of Student
INTRODUCTION
T#e climatolo"ists$ "eolo"ists and researc#ers #ave been "ivin" us %arnin"s on climate
c#an"e for &uite some time! Accordin" to t#eir prediction$ t#e eart# %ill face a barra"e of
atmosp#eric disturbances li'e eart#&ua'es$ cyclones and epidemics as t#e climate s#ifts
from mild p#ase to a %arm p#ase( popularly 'no%n as )"lobal %armin"*! People from all
%al's of life %ill feel t#e reverberations! S#are#olders are no e+ceptions!
So$ investors #ave started to put pressure on companies to curb "reen#ouse "ases! ,yoto
Protocol of -../ by %#ic# all countries are re&uired to reduce t#eir "reen#ouse emissions
by 01! T#e idea %as to ma'e developed countries pay for t#eir %ild %ays of emissions!
2any companies in various countries are no% doin" a ne% form of business! T#e business
of t#ese companies is some%#at related to tradin" but it is a departure from t#e usual
commodity or stoc' tradin"! 3t is t#e trade of )pollutin" "ases*$ called as Carbon Tradin"!
4sually$ ban's come into t#e picture in t#is 'ind of tradin" as t#ey 'eep records of debit
and credit of pollutin" account! 2any companies are usin" carbon credits to boost t#e
bottom line of t#eir balance s#eet!
Carbon credit tradin" is a "reat opportunity for 3ndian companies as %ell as for ot#er CO5
savin" projects in 3ndia as developed countries #ave to spend nearly 6788(0889for every
tone reduction in CO5 a"ainst 6-8(50 to be spent by developin" countries li'e 3ndia!
OBJECTIVES OF THE STUDY
T#is study %ould focus upon t#e follo%in" main aspects:
Mechanics of carbon tradin!
Main iss"es and o##ort"nities in internationa$ carbon %ar&et!
O##ort"nities of carbon tradin in India
'cco"ntin and ta(ation iss"es in carbon tradin
St"d) of *o$ati$it) in carbon %ar&et
E+ect of carbon e,cienc) on co%#an)-s botto% $ine and $on.
ter% #ro/tabi$it)!
St"d) of Carbon Tradin #ractices in an Indian co%#an) 0DMRC1
Tata Stee$2
SUMM'RY OF 3ITER'TURE REVIE45
For decades, researchers have tried to answer the question Does it pay for companies to be
green? and the studies have provided conficting results. Some studies show strong environmental
performance leads to strong fnancial performance; other studies, however, suggest environmental
performance has no efect or sometimes even a negative efect on fnancial performance.
A recent research conducted by Timo Busch and Volker Hofman of Swiss university ETH Zurich
showed that frms with lower carbon emissions had higher Tobins q than their more carbon-
intensive peers. Tobins q is a ratio that captures the diference between a public companys market
and book values. In other words, lowering carbon emissions did not directly afect a companys
value on paper, but it did afect how much investors were willing to pay for the companys stock.
The researchers theorize that, as companies improve their operational efciency and satisfy
concerns about environmental impact, investor satisfaction increases. In the current business
climate, investors are anxious to see companies reduce the likelihood of environmental risks and
sanctions and increase their attractiveness to environmentally conscious consumers and investors.
When a frm satisfes these concerns its perceived value increases and demand for its stock goes
up.
More and %ore c"sto%ers are s6itchin to co%#etitors that are %a&in %o*es
to6ard a s"stainab$e %ode of o#eration! The 7899 I%ae :o6er ;reen Brands
S"r*e) of %ore than <=888 #eo#$e in eiht co"ntries 0cond"cted bet6een '#ri$
and Ma) 78992 re*ea$ed a n"%ber of &e) /ndins re$ated to s"stainabi$it) and
cons"%er interest!
The carbon footprint left by corporations has stepped out from the sidelines of social
responsibility policies and is now planted firmly on their bottom lines. Carbon reduction
will become essential to market competitiveness. Organizations from all sectors will
need to embed environmental awareness into their processes and decision-making in
order to create a culture that minimizes their impact on the environment.
REE!RC" #ET"O$O%O&'(
Secondar) research 6o"$d be cond"cted "sin the research #a#ers #"b$ished
on the concerned to#ics!
CH':TERI>'TION :3'N
92! Cha#ter 95 E(ec"ti*e S"%%ar)
72! Cha#ter 75 Rationa$e of the st"d)
?2! Cha#ter ?5 Research Methodo$o)
@2! Cha#ter @5 Introd"ction to Carbon Tradin
A2! Cha#ter A5 Financia$ B 'cco"ntin 's#ect
C2! Cha#ter C5 'cco"ntin and Ta(ation iss"es
D2! Cha#ter D5 O##ort"nities in Indian Mar&et
E2! Cha#ter E5 Case of an Indian Co%#an)
<2! Cha#ter <5 E+ect on Botto% 3ine