US Agency for International Development (USAID) / India

INITIAL ENVIRONMENTAL EXAMINATION (IEE)

Market Integration and Transformation Program for Energy Efficiency (MAITREE)

Program/Project/Activity Data:

Activity/Project Title: Market Integration and Transformation Program for Energy Efficiency (MAITREE)

Solicitation #: N.A.

Contract /Award Number (if known): N.AGeographic Location : India; 386, Originating Bureau/Office: USAID/India, Clean Energy and Environment (CLEEO)Supplemental IEE: ☐ Yes ☒ NoAmendment: ☐ Yes ☒ NoProgrammatic IEE: ☐ Yes ☒ No

DCN and date of Original document: N.ADCN and ECD link (s) of Amendment (s): N.AAmendment No: N.A

Funding Amount: $1 Million Life of Project Amount: $3.5 Million

Implementation Start/End: FY 2017/ FY 2021Prepared By: Apurva Chaturvedi Date Prepared: March 6, 2017Expiration Date (if any): Reporting due dates (if any): N.AEnvironmental Media and /or Human Health Potentially Impacted (check all that apply)None ☒ Air ☐ Water ☐ Land ☐ Biodiversity ☐ Human Health ☐ Other ☐Recommended Threshold Determination: ☒☐Negative Determination ☒With Conditions☒Categorical Exclusion☐Positive Determination

☐Deferral☐Exemption☐USG Domestic NEPA action

Climate Change☐ GCC/Adaptation ☐ GCC/Mitigation ☐ Climate Change Vulnerability Analysis (included)

Adaptation/Mitigation Measures: Not Applicable

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SUMMARY OF FINDINGS

Pursuant to 22 CFR 216.2(a), environmental analysis/evaluation is required for new projects, programs or activities authorized by USAID. This Initial Environmental Examination (IEE) evaluates the Market Integration and Transformation Program for Energy Efficiency (MAITREE) activity under the USAID/India Partnerships APS over a period of four years.

RECOMMENDED ACTION:

(i) Categorical Exclusion. Pursuant to 22 CFR 216.2(c)(3), the originator of the activities (USAID/India Clean Energy and Environment Office (CLEEO)) has determined that “core” program activities, including technical assistance, training and capacity building, are environmentally neutral actions (See Table I) that do not have an effect on the natural or physical environment, in accordance with the stipulation in 22 CFR 216.2(c)(1)(i), and consist of types of interventions entirely within the categories listed in 216.2(c) (2). Therefore the originator recommends they be categorically excluded, falling under the following classes of actions: Education, technical assistance, or training programs except to the extent such programs

include activities directly affecting the environment (such as construction of facilities, etc.) {22 CFR 216.2(c)(2)(i)}; and

Document and information transfers {22 CFR 216.2(c)(2)(v)}.

(ii) Negative Determination with Conditions (NDC): A Negative Determination with Conditions is recommended for certain interventions, namely deployment of super-efficient air conditioners and energy efficient buildings. To ensure compliance, the Implementing Partner will develop an Environmental Mitigation and Monitoring Plan (EMMP) at the overall Activity level which will be reviewed and approved by the Mission Environmental Officer (MEO). The implementing partner will also establish baseline energy consumption in buildings due to air conditioners and other technologies as well as existing efficiency levels of air conditioners. This information will be used to monitor the energy savings due to the interventions under the activity. The AOR will also carry out random site visits to ensure compliance with the mitigation measures listed in the EMMP. The Implementing Partner will also undertake training and educational efforts to improve the awareness of its partners and sub grantees on energy efficiency, environmental regulations. The implementing partner will develop an environmental policy.

(iii) Climate Risk Screening: The initial screening of the project against the climate change effects indicate that the activities do not pose social or environmental risks that need to be further analyzed through additional steps of the identification process. Based on the information none of the proposed project activities will effect climate change and eco-systems and cause GHG emissions. In fact the activity is focused on enhancing energy efficiency in buildings and air conditioners resulting in reduced GHG emissions. The project interventions are not at risk to climate hazards like cyclones, droughts, floods and storm surges. There are no demographic and socio-economic aspects of the project that increase the vulnerability of the project to climate change. The components under this activity will result in energy savings from buildings as well as air conditioning systems which will lead to lower GHG emissions from business-as-usual scenario. As a part of the Monitoring, Evaluation & Learning (MEL) Plan, the program partners will establish baseline energy consumption in buildings due to air conditioners and other

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technologies as well as existing efficiency levels of air conditioners. Improvement in efficiency and energy consumtion patterns will be mapped through the duration of the program to measure impact as a part of the MEL plan.

1. BACKGROUND AND ACTIVITY DESCRIPTION

1.1 Purpose and Scope of the IEEThe purpose of this IEE is to reflect on potential environmental impact under the India Partnership APS environment activity – the ‘Market Integration and Transformation Program for Energy Efficiency (MAITREE)’ to be implemented over four years.

1.2 BackgroundThe U.S. Agency for International Development (USAID) is committed to increasing dramatically the sustainable impact of our development assistance programs in India through partnerships between the public and private sectors. Given that the flow of private resources far surpasses the flow of official development assistance, this Annual Program Statement (APS) recognizes and seeks to capitalize on this opportunity. Public-private Partnerships enable the Agency to leverage private sector innovation, markets, expertise, interests, and assets, along with public resources from a variety of contributors, in a manner that solves critical development problems and promotes effective, sustainable development, either through market-led solutions or public pathways. This India Partnership APS is designed to catalyze, facilitate, and support such collaboration.

Under the new activity, USAID is partnering with the Environmental Design Solutions (EDS) and the Energy Efficiency Services Limited (EESL) which is the largest public energy service company in India responsible for implementing energy efficiency programs, on a comprehensive market transformation program for scaling up deployment of energy efficient buildings and air conditioners in India. The program addresses energy use concerns in buildings and air conditioning, which have not only tremendous energy savings and greenhouse gas mitigation potential, but also directly improve comfort, health, productivity, and ultimately the quality of life of the citizens. The key to the program proposal is supporting innovative business models to leverage resources for large-scale impact. The goal of the project is for energy efficiency to become a standard market driven profitable practice in the buildings and air conditioning marketplace for all concerned. This will be achieved by, developing appropriate business models, facilitating accelerated transition to cutting edge technologies, and finally promoting end-user behavior change for energy efficiency.

The MAITREE activity has a total investment of $242,110,055 of which EDS has leveraged $238,610,055 from multiple organizations. USAID is contributing $3,500,000 over four years for this activity.

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1.3 Description of Activities

Under the proposed activity, USAID is partnering with the Environmental Design Solutions (EDS) to support sustainable market transformation for energy efficiency in buildings and air conditioning sectors in India, through cutting edge technology, innovative business models, and end-user engagement.

The program will create an enabling environment for private investments in building sector. U.S. companies lead in the manufacturing of advanced building technologies and materials in India. They already have a footprint in India and any large scale market based transition of Indian building sector to energy efficient technologies will expand the market for their products. Some of these enterprises have also signed up for voluntary commitments like the Clean Energy Ministerial’s AC Challenge to reduce GHG emissions from their products and services by developing and launching innovative green technologies1. This program has the potential to offer a good dividend for their research and development efforts by opening Indian markets for energy efficient products.

This activity addresses the energy use concerns in buildings and air conditioning and directly improves comfort, health, productivity, and ultimately the quality of life of the citizens. The market transformation will accelerate deployment of higher efficiency technology while unlocking the tremendous business potential in buildings and air conditioning in India. The key to the activity is developing and supporting innovative business models and engaging private sector energy service companies like Energy Efficiency Services limited (EESL) for large-scale implementation. The activities are being undertaken in partnership with the Energy Efficiency Services Limited, EESL (India’s largest public energy service company), Indian Railways, and other private sector partners.

The activity has the following three components:

1. Sustainable air conditioning The sustainable air conditioning program will build up on the recommendations emerging out of a comprehensive market research done by EDS team as a part of the USAID PACE-D TA program. The key activities under this component will include; support for design and roll-out strategy for super-efficient air conditioning (SEAC) program with Energy Efficient Services Limited (EESL), capacity building of air conditioning professionals for efficient air conditioning design, and consumer engagement on sustainable cooling focused on energy savings and encouraging behavior modification. The key aspects of energy efficiency and performance parameters of the SEACs, strategies for cost optimization, and demand assessment and aggregation will be supported. The partnership will also help with identifying cost-effective financing options, and the overall program roll out strategy.

2. Energy efficiency in buildingsThe energy efficient buildings component will aim to enhance energy efficiency of public buildings and support other large-scale building energy efficiency efforts in partnership with Indian Railways (IR) and EESL. Indian railways has a mandate of redevelopment of its infrastructure for over 400 railway stations over the next five years in a highly energy efficient and environmentally sustainable manner, based on global benchmarks. Under this component, the partner will develop technical and design specifications, as well as the business models for doing this. This will be integrated into the standard bidding process

1 https://obamawhitehouse.archives.gov/the-press-office/2016/06/02/fact-sheet-us-hosts-worlds-energy-ministers-scale-clean-energy-and-drive

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and tender documents. Performance based requirements and a robust measurement and verification process will also be developed. The program will build technical and management capacity of IR staff and contractors to continue implementing these projects in the future.

3. Training, consumer engagement, and outreach This component will address integration of sustainable building technologies in design and operations of buildings through training for academia, professionals, technicians, building managers and owners. EDS and its partners like ISHRAE institute; cBalance will design the course content and awareness programs and roll them out. On-the- job internships will be facilitated for participants in ongoing building projects where proponents are integrating sustainable building systems. Training-of-trainer for faculty and short duration workshops for students will be conducted to impart knowledge about fundamentals of building energy codes, energy efficient building design and sustainable building cooling technologies. Training will also be tailored for real estate developers and corporates to encourage sustainable technology adoption and behavior change. Content will be focused on creating awareness about green building usage practices and supporting their management teams in establishing these in the premises.

In accordance with ADS 204.3.9(a), a due diligence was conducted on the proposed partner’s past record of environmental accountability. No adverse findings were reported. The due diligence report is attached as Annex 1.

Leverage: The MAITREE activity has a total investment of $242,110,055 of which EDS has leveraged $238,610,055 from multiple organizations. USAID is contributing $3,500,000 over four years for this activity. The leverage is 68:1. Geography and Beneficiaries: The program will be implemented at National level. Beneficiaries include Indian railways, central public works department (CPWD), air conditioning professionals, technicians, and consumers

2. RECOMMENDED THRESHOLD DECISIONS AND MITIGATION ACTIONS

Categorical Exclusion and Negative Determination with Conditions (Please refer to the Summary Section). The justification for recommending a determination of Categorical Exclusion for activities under the project is due to their nature, such as technical cooperation, training programs, capacity building, knowledge management and communication, and other similar types of environmentally neutral actions. For certain activities, a determination of NDC has been made.

The table below lists the major activities of the Program according to Reg. 216 requirements and recommends Threshold Decisions and environmental compliance actions.

Components and illustrative activities

Effect on Natural or Physical environment

Threshold decisions and Reg. 216 actions required

1 Sustainable air conditioning

Insignificant effect Negative Determination with Conditions:

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The Implementing Partner will develop an Environmental Mitigation and Monitoring Plan (EMMP) at the overall Activity level which will be reviewed and approved by the Mission Environmental Officer (MEO).

The implementing partner will establish baseline energy consumption in buildings due to air conditioners as well as existing efficiency levels of air conditioners. They will report the improvements as a part of their MEL plan.

The AOR will carry out random site visits to ensure that the mitigation measures listed in the EMMP are implemented.

The Implementing Partner will also undertake training and educational efforts to improve the awareness of its partners and sub grantees on energy efficiency, environmental regulations. The partner will also develop an environmental policy and get it reviewed by the AOR and MEO.

2 Energy efficiency in buildings

Insignificant effect Negative Determination with Conditions:

The Implementing Partner will develop an Environmental Mitigation and Monitoring Plan (EMMP) at the overall Activity level which will be reviewed and approved by the Mission Environmental Officer (MEO).

The implementing partner will will establish baseline energy consumption in buildings due to air conditioners as well as existing efficiency levels of air conditioners. They will report the improvements as a part of their MEL plan.

The AOR will carry out random site visits to ensure that the mitigation measures listed in the EMMP are implemented.

The Implementing Partner will also undertake training and educational

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efforts to improve the awareness of its partners and sub grantees on energy efficiency, environmental regulations.

The partner will also develop an environmental policy and get it reviewed by the AOR and MEO.

3 Training, Consumer Engagement, and Outreach:

No effect Categorical Exclusion: No action required.

3. MITIGATION, MONITORING & EVALUATION

3.1 Specific Responsibilities

The AOR and the MEO will review and approve environmental compliance documentation, conduct spot checks to ensure that conditions in the IEE are met, mitigating measures identified are implemented, and adequate measurement protocols are in place to ensure their implementation, and provide guidance when required to the Implementing Partner.

3.2 Reporting Requirements

The Implementing Partner will regularly report to USAID on and have a section on environmental compliance in its Annual Work Plans. The partner will also include results of monitoring against benchmarks including for climate adaptation and mitigation in compliance with the GOI commitments. The Final Report will also have a section that will summarize activities related to environmental compliance and will describe results, including information on any positive or negative environmental effects of Activity interventions. 4. LIMITATIONS OF THE IEE

This IEE does not cover activities involving: Assistance for the procurement, use or recommendation for use of pesticides Assistance, procurement or use of genetically modified organisms (GMOs) Development Credit Authority (DCA) Procurement or use of Asbestos, Lead, Mercury Containing Materials (ALMCM)

5. REVISIONSPursuant to 22 CFR 216.3(a) (9), if new information becomes available which indicates that activities to be funded by the project might be “major” and their effects “significant,” this determination will be reviewed and revised by USAID/India and submitted to the Bureau Environmental Officer (BEO) for approval, and, if appropriate, an environmental assessment will be prepared in accordance with the procedures stipulated in 22 CFR 216. It is the responsibilities of the AOR to timely inform the Mission Environment Officer and BEO of any changes in the scope and nature of the approved activities, which may require the revision of the approved Threshold Decision.

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APPROVAL OF ENVIRONMENT ACTION RECOMMENDED Clearances:

Activity Manager: Date:

Mission Environmental Officer

Apurva Chaturvedi

Date:

Regional Environmental Advisor for Central and South Asia and OAPA

____________________________Monali Zeya Hazra

Date:

Regional Legal Advisor:

Andrei Barannik

Date:

Deputy Mission Director:

Diana Weed

Date:

Approval:

Mission Director:

Idris Diaz

Date:Mark A.White

Concurrence:

Bureau Environmental Officer: Date:William Gibson

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Attachment 1 Due Diligence on the Environmental Design Solutions (EDS), and Energy Efficient Services Limited (EESL) for the ‘Market Integration and Transformation Program for Energy Efficiency (MAITREE)’ activity

As per the Global Development Alliance (GDA) requirements, a due diligence was conducted in accordance with ADS 204 on the partners (Environmental Design Solutions, EDS as the implementing partner and Energy Efficient Services Limited (EESL) as a resource partner) under the ‘Market Integration and Transformation Program for Energy Efficiency (MAITREE)’ activity to evaluate the risks and benefits.

Per ADS 204.3.9(a), as part of the due diligence investigation of a potential alliance partner, it is essential to investigate what is often called the “triple bottom line”, whether the prospective partner is socially responsible, environmentally accountable and financially sound. Information was gathered from resources such as Factiva, and Dun & Bradstreet through USAID’s Knowledge Service Centre. Desk research was also undertaken by the technical office covering the various aspects of the due diligence. The due diligence covered five areas including corporate image, social responsibility, environmental accountability, financial soundness, and policy compatibility. The details of the assessment are provided below for each partner respectively:

1. Environmental Design Solutions (EDS) : Brief summary of the due diligence is produced below:

Corporate Image/Reputation: EDS is a building sustainability consultancy firm well recognized for its expertise and excellent standard of services within the building industry.2EDS is a Bureau of Energy Efficiency accredited firm (certificate copy attached in Attachment 4). It is an Education Partner3 of United States Green Building Council (USGBC).4 USGBC has also recognized EDS as a LEED Proven Provider.5 67This certification is awarded to companies that have demonstrated excellence consistently in managing green building projects. The partner has submitted its various certification and it is available with the technical office.

EDS is the primary green building advisor to the large business houses and real estate developers in India like ITC, Citibank, Deutsche Bank, Infosys, Vodafone, Wipro, Jindal Group of Industries, HCL, DLF, Jaypee Hotels, TCS, IFFCO etc. It has provided technical assistance to Government of India agencies like Bureau of Energy Efficiency (BEE),

2 http://www.edsglobal.com3 USGBC selects sustainability firms to lead its activities in developing and delivering education about green buildings. http://in.usgbc.org/help/what-does-it-mean-be-education-partner4 http://www.usgbc.org/organizations/all/education-partner5 http://www.usgbc.org/organizations/members/proven-provider/all/interior-design-%2B-construction6 http://www.usgbc.org/articles/leed-proven-provider-new-designation-streamline-leed-review-process7 LEED Proven Provider by USBGC is a designation provided by USGBC to organizations that have shown exemplary performance in managing LEED certification of buildings. USGBC expedites the building certification review process for projects designed by such designated firms. Projects owners thus get the double benefit of assured quality from a well-recognized organization and swifter certification of their projects.

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Ministry of Environment and Forests and international agencies like DFID, Swiss Development Agency (SDC), World Bank, IFC, KfW and UNDP (please see project completion certificates in Attachment 4).

EDS projects have received recognition for excellence at both the national and global stage.89 Experts in the firm are regularly invited to advice in the development of important building energy efficiency policies in India by central and state government ministries and agencies. They have also advised the development of green building rating systems like Green Rating for Integrated Habitat Assessment (GRIHA)10 11, Indian Green Building Council (IGBC)12 and National Building Code of India 2015. National laboratories in the US have approached EDS to review studies to assess the progress of energy efficiency policies in India.

The partner’s credibility can also be endorsed by USAID as it has assisted USAID in its building energy efficiency programs in India. It is the lead partner for implementing the building energy efficiency technical assistance in the current USAID led bilateral program “Partnership to Advance Clean Energy-Deployment (PACE-D) Technical Assistance”. Prior to that, its founding members were the key experts providing technical assistance in the USAID’s earlier bilateral program focused on building efficiency (ECO-II and Eco Housing programs).

EDS is not seeking this partnership for any PR opportunities. USAID and EDS objectives are closely aligned and this partnership can improve the possibility of transforming HVAC and other building technologies markets. Moreover, EDS already has a well-established network within the community of builders, manufacturers, and with other development aid agencies engaged in building energy efficiency.

EDS is not expecting an exclusive partnership with USAID and understands that the program must follow USAID branding and marketing practices. EDS complied with press and media coverage rules laid out by USAID in the PACE-D TA program also.

No negative information was found about the company in print or electronic media. EDS is in not involved in any litigation. There is no evidence of tensions between EDS and the community of green building design practitioners or developers. In fact, EDS is well recognized for its leadership role in the green building sector.

Social Responsibility:

8 https://www.lafargeholcim-foundation.org/Projects/chaupal-eco-house9 http://sites.ndtv.com/daawards/awards-2015-meet-the-jury/10 GRIHA was established by The Energy Resources Institute with support from Ministry of New and Renewable Energy, Government of India. 11 http://www.grihaindia.org/?t=griha_council&#&griha_council12 IGBC was established by Confederation of Indian Industry in 2001 to encourage sustainable buildings in India. IGBC works closely with state and central government in India and as a member driven body, a multitude of stakeholders form Indian building industry play an active role in it. https://igbc.in/igbc/redirectHtml.htm?redVal=showAboutusnosign&id=about-content

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As part of its CSR initiatives, EDS focuses on capacity building of stakeholders and raising awareness about green buildings. It is a sustainability knowledge partner for awareness raising events organized by construction industry associations, non-profit organizations and organizations.13 EDS trains corporate executives, professionals, students and government officials to build up their knowledge about design and construction processes and management of green buildings.

The company provides health insurance to all regular employees. Leave allocation is as per industry standards. Training sessions and others forms of written communication are used to inform employees about workplace related health and safety issues.

EDS has a comprehensive Code of Professional Practice and Conduct to promote lawful and ethical behavior by all EDS employees. Issues covered within the code include professional practice ethics, workplace safety, conflicts of interest, use of company assets, non-discrimination policies, employee harassment and protection of employee information. The company’s hiring, promotion, job assignment and compensation policies are merit based. It does not discriminate because of race, color, religion, sex, national origin, age or disability. Recruitment of people with disabilities and women is encouraged in the company. About 40% of EDS employees are women.14

EDS encourages its employees to acquire and update their professional credentials. Majority of its employees hold multiple professional credentials that are sponsored by the company. The company does not employee children. EDS does not have a union. It is not involved in the manufacture or sale or handling of firearms or narcotics.

Environmental accountability: EDS has extensive experience of working for donor-funded projects in India (for USAID, UNDP, GiZ, KFW, etc.) and has first-hand experience in managing the environmental regulations related to building energy efficiency and capacity building projects, such as the one proposed.

The core business of the firm is to advise building designers and developers in construction and management of environmentally sustainable buildings. Till date, EDS has provided its expertise in more than 350 green building projects globally. As a part of its commitment, EDS does estimate the environmental impact of products or materials before recommending them to clients.

Although EDS does not have a specific environment policy, it strongly encourages environmental sustainability through its operations. EDS headquarter building in New Delhi is a USGBC LEED Platinum certified building (certificate copy in Attachment 4). This is the highest certification for green buildings awarded by United States Green Building Council under its LEED green building certification system. USAID delegations have visited EDS headquarters to observe green building technologies and practices in India. Recycled materials, energy efficient building equipment and, materials manufactured or extracted from

13 https://ebuild.in/ndtv-design-and-architecture-awards-november-2016-category-and-jury14 From EDS Code of Conduct

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renewable sources have been used in this building. Innovative water recycling strategies employed also enable water conservation. EDS monitors energy consumption and indoor air quality in its offices continuously. The company follows sustainable workplace practices like waste segregation and waste paper recycling. As part of this activity, EDS intends to develop an environmental policy for its organization. They will also incorporate a section on environmental awareness on their website as a part of this activity.

The company is ISO 9001:2008 certified (certificate copy in Attachment 4). EDS has not been involved in any lawsuits.

Financial Soundness: EDS was founded in 2002 and registered as a private limited company in 2009 under the Companies Act of India 1956. It is not a publicly traded company. EDS publishes an annual report that covers the company’s earnings and expenditure, tax returns, and an independent auditor’s report. The company’s financial transactions and revenues are audited annually by certified chartered accountants and no discrepancy has ever been reported.

Policy Compatibility: Company is not listed in any United Nations sanction lists or United States Government restricted lists. It maintains a transparent account of its operations, revenue streams and human resource management. Its policies are in conformance with Indian laws for private sector enterprises.

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2. Energy Efficiency Services Limited

EESL is a government owned company established to develop the market for energy efficiency in India. It is the resource partner for the proposed partnership.

Corporate Image/Reputation:EESL was formed in 2009 and has created a niche for itself in the energy efficiency market in India since then. In this short span, EESL has strengthened the market for advanced energy efficient technologies and services.15 The company is entrusted with implementing Indian government’s flagship energy efficiency programs.16 17EESL network with other players in the energy sector are very strong. EESL is a strong brand in India and there is no evident need for it to enter a partnership with USAID to enhance its public relations in India or US.

EESL has a strong reputation in the international community. US Department of Energy, and its national laboratories, have partnered and exchanged information with EESL to devise strategies for enhancing energy efficiency in buildings and appliances. It has long term agreements with government and municipal agencies in India to assist them in implementation of large scale energy efficiency programs. International development agencies like KfW, GIZ and ADB have partnered with EESL to magnify the impact of their activities in India.1819

EESL programs and milestones are often covered in the mainstream media. The coverage is mostly positive. There is no evidence of any tensions between EESL and other stakeholders in the community. EESL is not involved in any lawsuits. EESL and USAID are already collaborating under the PACE-D TA program. EESL has been diligent in acknowledging USAID contributions to its initiatives on all public platforms. As a government owned entity, it cannot seek any kind of endorsement from USAID for any its activities. There is no evidence that suggests that EESL has used, the technical assistance it has received from USAID under PACE-D TA program or might receive if the proposed partnership is approved, for soliciting additional support for its activities. EESL is a resource partner who has committed a significant portion of its own resources (provided by Indian government) to the proposed partnership and is not relying solely on USAID resources for implementing the program. There is no indication from the management that it is anticipating an endorsement from USAID or an exclusive relationship with USAID.

15 http://timesofindia.indiatimes.com/business/india-business/World-Bank-pegs-Indias-energy-efficiency-market-at-Rs-1-6-lakh-crore/articleshow/55212793.cms16 http://www.deccanchronicle.com/nation/current-affairs/051116/world-bank-declares-andhra-pradesh-no-1-in-energy-efficiency.html17 http://www.eeslindia.org/User_Panel/UserView.aspx?TypeID=1025&p=About%20Us18 https://www.adb.org/projects/48224-002/main19 https://www.adb.org/news/adb-india-sign-200-million-loan-finance-energy-efficient-lights-streets-homes

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Social Responsibility:

EESL’s Corporate Social Responsibility policy follows Section 135 of Companies Act 2013. This contains rules on CSR responsibilities. Energy Efficiency Services Limited, is first super ESCO in South Asia. It has been formed with an objective to carry out and promote the business of Energy Efficiency and climate change & to implement energy efficiency projects in Demand Side Measure. The Main focus is to undertake that CSR activities that help to save & conserve energy to create impact on the environment and ecologyi.

As per the EESL’s CSR policy, activities must focus on women empowerment, health, sanitation, drinking, water, education, and activities contributing towards environment sustainability. EESL has a three member CSR committee consisting of company directors and a CSR cell headed by the Company Secretary. As per the company’s annual reports, EESL has considered applications from different sources to support various activities that fall within the purview of its CSR policy.20 The copy of the policy has been submitted to the technical office for record. The company has started reporting its CSR initiative as a part of its Annual Report.21

The company is not involved in the manufacture or sale of firearms or narcotics. EESL’s code of conduct places the responsibility of ensuring a workplace free of discrimination & harassment based on race, colour, religion, caste, age, gender, nationality, origin, disability, veteran status, or any other biases on its directors and senior management personnel. 22 No evidence was found of harassment faced by EESL employees on these issues. EESL has also established anti-fraud and whistleblower policy (copy provided to the technical team).

EESL does not support child or forced labor. There are no unions at EESL.

Environmental Accountability:EESL is the first of its kind - it is a public-sector company created for expanding the energy efficiency market by using innovative strategies to circumvent financial, regulatory and institutional barriers.

EESL is not engaged in any manufacturing activities. It does procure energy efficient products from third parties. In such cases, the company stipulates stringent standards for energy and environmental performance of equipment purchased for its programs. Environmental sustainability standards to be adhered to are specified in its tender documents. Compliance with these standards is nonnegotiable.

EESL maintains and continuously updates publicly accessible dashboards that record the energy savings and GHG emissions averted due to its projects.23 The company continuously expands its portfolio of services and programs.

20 EESL CSR Policy. http://www.eeslindia.org/User_Panel/UserView.aspx?TypeID=114721 http://www.eeslindia.org/writereaddata/EESL%20Annual%20Report%202015-16.pdf22 EESL Code of Conduct23 http://www.ujala.gov.in/

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Contingency plans for preventing, mitigating, and controlling serious environmental and health damage from their operations, including accidents and emergencies; and mechanisms for immediate reporting to the competent authorities are contained in the contracts drawn between EESL and its clients. EESL assess, and address in decision-making, the foreseeable environmental, health, and safety-related impacts associated of the products installed by it over their full life cycle.

EESL has already applied for ISO 9000 certification and is expected to earn the ISO 9000 certification by last quarter FY 17-18.

Financial Soundness: EESL is not a publicly traded company. It is a joint venture of public sector units of Government of India. Annual and half yearly reports published by EESL are available on the company’s website. Comptroller and Auditors General’s office appoints statutory auditors on a yearly basis for audit of the company’s financial transactions. Revenues and expenditure are also audited by internal and independent secretarial auditors. EESL was formed in 2009 and registered under the Companies Act 1956.

Policy Compatibility: EESL is not listed in any United Nations sanction lists or United States Government restricted lists. The company follows all environmental, health and safety laws laid down by Government of India. EESL’s code of conduct, human resource management policies, and financial auditing policies are as per the international best practices. In fact they already have a line of credit from KFW, ADB.

(Double Click)

http://www.eeslindia.org/User_Panel/UserView.aspx?TypeID=1151

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Attachment 2

Partner Due Diligence Questionnaire: Environmental Design Solutions (EDS)

A. Corporate Image 

1. What is the company’s public image? Have there been any tensions between the community and the company? 

Environmental Design Solutions (EDS) is a building sustainability consultancy firm. Expertise and excellent standard of services provided by EDS is well recognized within the industry. EDS is a Bureau of Energy Efficiency accredited firm. It is an education partner of United States Green Building Council (USGBC). USGBC has also recognized EDS as a LEED Proven provider. This certification is awarded to companies that have demonstrated excellence consistently in managing green building projects.

EDS is the primary green building advisor to the large business houses and real estate developers in India like ITC, Citibank, Deutsche Bank, Infosys, Vodafone, Wipro, Jindal Group of Industries, HCL, DLF, Jaypee Hotels, TCS, IFFCO etc. It has provided technical assistance to DFID, SDC, World Bank, IFC, KfW and United Nations.

EDS projects have received recognition for excellence at both the national and global stage. There is no evidence of tensions between EDS and the community of green building design practitioners or developers. Experts in the firm are regularly invited to advice in the development of important building energy efficiency policies in India by central and state government ministries and agencies.

They have also advised the development of green building rating systems like GRIHA and IGBC. National laboratories in the US have approached EDS to review studies to assess the progress of energy efficiency policies in India.

EDS and its experts have assisted USAID in its building energy efficiency and sustainability programs in India and Europe. It is the building energy efficiency advisor in the Partnership to Advance Clean Energy-Deployment (PACE-D) Technical Assistance program. Prior to that, its founding members participated in the ECO-II and Eco Housing programs.

2. Has there been anything in the media that would reflect negatively upon the company? If so, how has the company dealt with significant negative publicity?

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 No negative information was found about the company in print or electronic media.

3. Are there any pending lawsuits against the company? 

There is no evidence to suggest that EDS is or has ever been involved in any litigation.

4. Is the company looking solely for PR opportunities by aligning itself with USAID? 

EDS is not seeking this partnership for any PR opportunities. USAID and EDS objectives are closely aligned and this partnership can improve the possibility of transforming HVAC and other building technologies markets. Moreover, EDS already has a well-established network within the community of builders, manufacturers, and with other development aid agencies engaged in building energy efficiency.

5. Is the company only or primarily looking for procurement opportunities or money from USAID?

EDS is not seeking this partnership for money or procurement from USAID. Bulk of the program cost($242,110,055) is financed by EESL, the resource partners for this program. This partnership can facilitate expansion of markets for several energy efficient building technologies that have so far faced multiple barriers to entry in the Indian market. USAID, with its extensive experience in accelerating deployment of clean energy and energy efficient technologies in India, can use its financial and technical resources to strengthen this market transformation program.

6. Is the company willing to engage with USAID in a transparent manner without expecting an exclusive relationship (i.e., barring competitors)? 

EDS is not expecting an exclusive partnership with USAID.

7. Is the company willing to accept limitations on the publicity (i.e., press and media coverage) of the alliance so as to ensure that USAID is not perceived to be endorsing the company or its products and services? 

EDS understands that the program must follow USAID branding and marketing practices. The company complied with press and media coverage rules laid out by USAID in the PACE-D TA program also and is well versed with USAID branding practices.

B. Social Responsibility 

1. Is the company primarily involved in the manufacture or sale of firearms or narcotics, i.e., involvement in these activities constitutes a significant share of company’s total portfolio?

 It is not involved in the manufacture or sale or handling of firearms or narcotics.

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2. Does the company have a good reputation (no serious red flag issue areas), especially in areas of corporate social responsibility (CSR)? In the case of new companies or companies with past CSR troubles, are they committed to instituting/improving a sound CSR policy? 

As part of its CSR activities, EDS focuses on capacity building of stakeholders and raising awareness about green buildings. It is a sustainability knowledge partner for awareness raising events organized by construction industry associations, non-profit organizations and organizations. EDS trains corporate executives, professionals, students and government officials to build up their knowledge about design and construction processes and management of green buildings.

3. Does the company have policies barring harmful child labor or forced labor? 

The company does not employee children. EDS does not have a union.

4. Does the company have a non-discrimination policy governing the hiring and promotion of minorities, women? 

The company’s hiring, promotion, job assignment and compensation policies are merit based. It does not discriminate because of race, color, religion, sex, national origin, age or disability. Recruitment of people with disabilities and women is encouraged in the company. About 40% of EDS employees are women.

5. Is the company accepting of unions or attempts to organize a union? 

EDS does not have a union of employees.

6. Does the company have a health and safety action plan for workers, including the handling of hazardous materials and the prevention of environmental accidents? 

The company provides health insurance to all regular employees. Leave allocation is as per industry standards. Training sessions and others forms of written communication are used to inform employees about workplace related health and safety issues.

7. Does the company have a policy for codes of conduct, labor standards?

EDS has a comprehensive Code of Professional Practice and Conduct to promote lawful and ethical behavior by all EDS employees. Issues covered within the code include professional practice ethics, workplace safety, conflicts of interest, use of company assets, non-discrimination policies, employee harassment and protection of employee information.

EDS encourages its employees to acquire and update their professional credentials. Majority of its employees hold multiple professional credentials that are sponsored by the company.

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C. Environmental Accountability 

1. Does the company collect and evaluate adequate and timely information regarding the environmental, health, and safety impacts of their activities? 

EDS has to monitor the environmental impact of its projects and report the performance to agencies responsible for certification of green buildings. EDS also monitors energy consumption and indoor air quality in its offices continuously.

2. Does the company set targets for improved environmental performance, and regularly monitor progress toward environmental, health, and safety targets? 

The company does follow operational practices environment, health and safety but no targets are defined. Some parameters are measured and recorded.

3. Does the company assess, and address in decision-making, the foreseeable environmental, health, and safety-related impacts associated with the processes, goods and services of the enterprise over their full life cycle? Does the company provide the public and employees with adequate and timely information on the potential environment, health and safety impacts of the activities of the enterprise? 

EDS activities have a positive impact on the environment. It is not engaged in the manufacturing of any products. Core business of the firm is to advise building designers and developers in construction and management of environmentally sustainable buildings. Till date, EDS has provided its expertise in more than 350 green building projects globally. EDS does estimate the environmental impact of products or materials before recommending them to clients.

4. Does the company maintain contingency plans for preventing, mitigating, and controlling serious environmental and health damage from their operations, including accidents and emergencies; and mechanisms for immediate reporting to the competent authorities? 

The company follows international best practices while providing professional services to clients. These are inherently designed to mitigate any accidents and contain safety guidelines.

5. Does the company continually seek to improve corporate environmental performance, by encouraging, where appropriate, the adoption of technologies and operating procedures in all parts of the enterprise that reflect environmental best practices? Are its products or services designed to have no undue environmental impacts, be safe in their intended use, and be efficient in their consumption of energy and natural resources? Can they be reused, recycled, or disposed of safely? 

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EDS promotes environmental sustainability in its operations also. EDS headquarter building in New Delhi is a USGBC LEED Platinum certified building. This is the highest certification for green buildings awarded by United States Green Building Council under its LEED green building certification system. USAID delegations have visited EDS headquarters to observe green building technologies and practices in India. Recycled materials, energy efficient building equipment and, materials manufactured or extracted from renewable sources have been used in this building. Innovative water recycling strategies employed also enable water conservation. The company follows sustainable workplace practices like waste segregation and waste paper recycling.

EDS encourages its employees to acquire and update their professional credentials. Majority of its employees hold multiple professional credentials that are sponsored by the company.

6. Does the company have a green audit for environmental performance? 

EDS monitors energy consumption and indoor air quality in its offices continuously.

7. Is the company ISO certified? 

The company is ISO 9001:2008 certified.

8. Does the company have a natural habitats policy? A forestry issues policy? 

EDS does not have a natural habitats or forestry issues policy.

9. Is the company free from regulatory lawsuits? 

EDS has not been involved in any lawsuits.

D. Financial Soundness 

1. Is the company a publicly traded company? 

EDS was founded in 2002 and registered as a private limited company in 2009 under the Companies Act of India 1956. It is not a publicly traded company.

2. Does the company publish an annual report?

EDS publishes an annual report that covers the company’s earnings and expenditure, tax returns, and an independent auditor’s report.

3. Does the company have audited financial statements?

The company’s financial transactions and revenues are audited annually by certified chartered accountants and no discrepancy has ever been reported.

4. Has the company been in business for several years? 

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EDS was founded in 2002 and registered as a private limited company in 2009 under the Companies Act of India 1956.

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Attachment 3

Partner Due Diligence Questionnaire: Energy Efficiency Services Limited (EESL)

A. Corporate Image 1. What is the company’s public image? Have there been any tensions between the

community and the company? 

Energy Efficiency Services Limited (EESL) was formed in 2009 and has created a niche for itself in the energy efficiency market in India since then. In this short span, EESL has strengthened the market for advanced energy efficient technologies and services. The company implements Indian government’s important energy efficiency programs. It is “one of the main implementation arms of the National Mission on Enhanced Energy Efficiency (NMEEE) as a part of “National Action Plan on Climate Change”.”

EESL has a strong reputation in the international community. US Department of Energy, and its national laboratories, have partnered and exchanged information with EESL to devise strategies for enhancing energy efficiency in buildings and appliances. It has long term agreements with government and municipal agencies in India to assist them in implementation of large scale energy efficiency programs. International development agencies like KfW, GIZ and ADB have collaborated with EESL to magnify the impact of their activities in India.

There is no evidence of any tensions between EESL and other stakeholders in the community.

2. Has there been anything in the media that would reflect negatively upon the company? If so, how has the company dealt with significant negative publicity?

EESL programs and milestones are often covered in the mainstream media. The coverage is mostly positive.

3. Are there any pending lawsuits against the company? 

EESL is in not involved in any litigation.

4. Is the company looking solely for PR opportunities by aligning itself with USAID? 

EESL network with other players in the energy sector are very strong. EESL is a stronger brand in India than USAID. It does not need a partnership with USAID to enhance its public

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relations in India or US. There is no evidence that suggests that EESL has used the collaboration with USAID under PACE-D TA program for any such purpose.

5. Is the company only or primarily looking for procurement opportunities or money from USAID?

EESL has committed a significant portion of its own resources (provided by Indian government) to the proposed partnership and is not relying solely on USAID resources for implementing the program.

6. Is the company willing to engage with USAID in a transparent manner without expecting an exclusive relationship (i.e., barring competitors)? 

EESL is not expecting an exclusive partnership with USAID. EESL and USAID are already collaborating under the PACE-D TA program. EESL has been diligent in acknowledging USAID contributions to its initiatives on all public platforms for this program. It has seeking partnerships with international agencies like Asian Development Bank, The Energy Resources Institute for this program.

7. Is the company willing to accept limitations on the publicity (i.e., press and media coverage) of the alliance so as to ensure that USAID is not perceived to be endorsing the company or its products and services? 

As a government owned entity, it cannot seek any kind of endorsement from USAID for any its activities. There is no indication from the management also that it is anticipating an endorsement from USAID.

B. Social Responsibility 

1. Is the company primarily involved in the manufacture or sale of firearms or narcotics, i.e., involvement in these activities constitutes a significant share of company’s total portfolio?

 It is not involved in the manufacture or sale or handling of firearms or narcotics.

2. Does the company have a good reputation (no serious red flag issue areas), especially in areas of corporate social responsibility (CSR)? In the case of new companies or companies with past CSR troubles, are they committed to instituting/improving a sound CSR policy? 

EESL’s Corporate Social Responsibility policy follows Section 135 of Companies Act 2013. This contains rules on CSR responsibilities. As per the policy, EESL’s CSR activities must focus on women empowerment, health, sanitation, drinking, water, education, and activities

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contributing towards environment sustainability. EESL has a three member CSR committee consisting of company directors and a CSR cell headed by the Company Secretary. EESL has considered applications from different sources to support various activities that fall within the purview of its CSR policy. This is documented in the annual reports of the company.

3. Does the company have policies barring harmful child labor or forced labor? 

There is no evidence of EESL supporting child or forced labor.

4. Does the company have a non-discrimination policy governing the hiring and promotion of minorities, women? 

EESL does not have a non-discrimination policy governing the hiring and promotion of minorities and women.

5. Is the company accepting of unions or attempts to organize a union? 

EESL does not have a union of employees.

6. Does the company have a health and safety action plan for workers, including the handling of hazardous materials and the prevention of environmental accidents? 

EESL does not have a health and safety plan for employees. It does provide employees retirement income security benefits.

7. Does the company have a policy for codes of conduct, labor standards?

EESL’s code of conduct places the responsibility of ensuring a workplace free of discrimination & harassment based on race, colour, religion, caste, age, gender, nationality, origin, disability, veteran status, or any other biases on its directors and senior management personnel. No evidence was found of harassment faced by EESL employees on these issues. EESL has also established anti-fraud and whistleblower policies. ii

C. Environmental Accountability 

1. Does the company collect and evaluate adequate and timely information regarding the environmental, health, and safety impacts of their activities? 

EESL maintains and continuously updates publicly accessible dashboards that record the energy savings and GHG emissions averted due to its projects.iii

2. Does the company set targets for improved environmental performance, and regularly monitor progress toward environmental, health, and safety targets? 

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EESL is a public-sector company created for expanding the energy efficiency market by using innovative strategies to circumvent financial, regulatory and institutional barriers. Its targets are frequently set by the government. These could be expansion of services in a new sector, introduction or promotion of a new energy efficient technology or supporting another agency in achieving its environmental sustainability targets. EESL monitors the energy savings resulting from its projects.

3. Does the company assess, and address in decision-making, the foreseeable environmental, health, and safety-related impacts associated with the processes, goods and services of the enterprise over their full life cycle? Does the company provide the public and employees with adequate and timely information on the potential environment, health and safety impacts of the activities of the enterprise? 

EESL assess the environmental impact associated with products and services that it offers to clients. It only offers products and services that are efficient in energy use. Environmental impact of its services and products is conveyed through public platforms.

4. Does the company maintain contingency plans for preventing, mitigating, and controlling serious environmental and health damage from their operations, including accidents and emergencies; and mechanisms for immediate reporting to the competent authorities? 

Contingency plans for preventing or controlling environmental, health or safety hazard from EESL operations are contained in the legal contract between the company and its clients. EESL is usually responsible for controlling or mitigating these three issues in projects where it is providing services for enhanced energy efficiency. In case of products, this responsibility is transferred to the manufacturer or vendor from which EESL purchases the products.

5. Does the company continually seek to improve corporate environmental performance, by encouraging, where appropriate, the adoption of technologies and operating procedures in all parts of the enterprise that reflect environmental best practices? Are its products or services designed to have no undue environmental impacts, be safe in their intended use, and be efficient in their consumption of energy and natural resources? Can they be reused, recycled, or disposed of safely? 

EESL does procure energy efficient products from third parties. In such cases, the company stipulates stringent standards for energy and environmental performance of equipment purchased for its programs. Environmental sustainability standards to be adhered to are specified in its tender documents. Compliance with these standards is nonnegotiable. These products or their parts are frequently recyclable. The company continuously expands its portfolio of services into new sectors and technologies.

6. Does the company have a green audit for environmental performance? 

EESL does not have a green audit for environmental performance. 7. Is the company ISO certified? 

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EESL is not an ISO certified company.

8. Does the company have a natural habitats policy? A forestry issues policy? 

EESL does not have a natural habitats or forestry issues policy.

9. Is the company free from regulatory lawsuits? 

EESL has not been involved in any lawsuits.

D. Financial Soundness 

1. Is the company a publicly traded company? 

EESL is a joint venture of public sector units under Ministry of Power, Government of India. It is not a publicly traded company. Shares are owned by these public-sector units.

5. Does the company publish an annual report?

Annual and half yearly reports published by EESL are available on the company’s websiteiv.

6. Does the company have audited financial statements?

Comptroller and Auditors General’s office appoints statutory auditors on a yearly basis for audit of the company’s financial transactions. Revenues and expenditure are also audited by internal and independent secretarial auditors.v

7. Has the company been in business for several years?

EESL was formed in 2009 and registered under the Companies Act 1956. 

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i http://www.eeslindia.org/User_Panel/UserView.aspx?TypeID=1147ii http://www.eeslindia.org/User_Panel/UserView.aspx?TypeID=1178iii http://www.eeslindia.org/User_Panel/UserView.aspx?TypeID=1145iv http://www.eeslindia.org/User_Panel/UserView.aspx?TypeID=1099&p=Annual%20Reportsv http://www.eeslindia.org/User_Panel/UserView.aspx?TypeID=1100&p=Half-Yearly%20Results%20%20Sept.%202013