Use technology to go green,corporate affairs min tells India Inc

The corporate affairs ministry is planning to promote use of green technologies by India Inc to save cost and reduce damage to environment.

The corporate affairs ministry is planning to promote use of green technologies by India Inc to save cost and reduce damage to environment. Going green,the ministry wants the corporates to conduct Annual General Meetings (AGMs) through video conferencing and send financial statements to their shareholders through e-mails,sources told The Indian Express.

This,the ministry argues,will help in more transparency and reduce costs of the companies substantially.

We are thinking of allowing corporates to conduct AGMs through video conferencing that will allow further transparency and save a lot of cost. Also,we want them to give balance sheets through e-mails. For educated shareholders it will be very useful. When you have to give thousands of balance sheets in hard copy,it puts a lot of pressure on the system both in terms of cash flow and environment cost, the sources added.

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Initially,it will be optional for listed companies,but going forward it would be made mandatory as paperless functioning is what the government is aiming at,the sources said. In fact,we also want to provide the facility of electronic voting as well, the sources said. Corporates on their part have already started practicing eco-friendly policies in an attempt to win reputed global clients.

In fact,IT companies after the recession started using recyclable,energy efficient and eco-friendly products to improve the reputation of the company,for complying with the corporate social responsibility and cutting costs. Several companies have started using machines with power-saving mode,using natural light in offices during day time,avoiding use of polythene,reducing consumption of stationery among others.

Going forward,paperless functioning is going to be the thing for corporates to follow. All transactions will have to become paperless because of social,economical and environmental cost involved. Even communication between members should also be done in electronic mode. We will mandate it for listed companies later, the sources added. The ministrys efforts aim to further consolidate the practice.

Cost saving

* Ministry wants corporates to send financial statements to their shareholders through e-mails

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* Initially,it will be optional for listed companies to follow the corporate affairs ministry suggestions,but going forward it would be made mandatory

* Corporates on their part have already started practicing eco-friendly policies in an attempt to win reputed global clients

* Several firms have started using machines with power-saving mode,using natural light in offices during day time,avoiding use of polythene among others

* The ministry says that,if followed,the steps will help in more transparency and reduce costs of the firms

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