Finolex Industries Limited

Climate Impact & Sustainability Data (2020-21, 2022-04 to 2023-03, 2023-04 to 2024-03)

Reporting Period: 2020-21

Environmental Metrics

ESG Focus Areas

Ethics, bribery and corruption
Human rights
Safety, Health and Environment
Corporate Social Responsibility
Sustainable sourcing
Employee wellbeing
Stakeholder engagement
Environmental issues (climate change, global warming)
Community development

Environmental Achievements

Successfully achieved zero discharge of treated effluent by recycling close to 50% back into the system and using the remaining for irrigation.
Pipes and fittings manufacturing plants do not generate any process effluents and are free from pollution.
Fly ash disposal is 100%.

Social Achievements

Various projects undertaken in areas such as eradicating hunger, poverty, and malnutrition; promoting preventive healthcare and sanitation; making safe drinking water available; promoting education, including vocational skills, especially among women; and promoting women's empowerment.
All 38 investor complaints received during the year were redressed satisfactorily.
100% of permanent and temporary employees received safety and skill upgradation training.

Governance Achievements

Board of Directors reviews BR annually.
Company has policies on Sexual Harassment, Whistleblower, CSR, Nomination and Remuneration, Related Party Transactions, Board Diversity, Material Subsidiaries, Materiality Disclosures, Document Preservation, Fair Disclosure and Conduct, Code of Conduct for Directors and Senior Management, Safety, Health and Environment, and Dividend Distribution.

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

Procuring goods and services from nearby suitable sources of supply, engaging local villagers and small businesses.

Climate-Related Risks & Opportunities

Reporting Period: 2022-04 to 2023-03

Environmental Metrics

Total Carbon Emissions:4,11,517 tCO2e

Scope 1 Emissions:3,57,962 tCO2e

Scope 2 Emissions:53,555 tCO2e

Scope 3 Emissions:3,97,746 tCO2e

Water Consumption:38,55,415 KL

Waste Generated:8,924.49 MT

Carbon Intensity:0.9246 tCO2e/tonne of production (Scope 1 & 2)

ESG Focus Areas

Environmental Stewardship
People Wellbeing
Corporate Governance & Ethics
Supply Chain Management
Community Development

Environmental Achievements

Reduced GHG emissions by 8500 tCO₂e through energy conservation initiatives.
Commissioned a 1 MW rooftop solar system at Masar plant.
Recycled 260,000+ m³ of effluent.
Initiated a biodiversity study for Ratnagiri plant.
Prepared a comprehensive afforestation plan for the next two years.

Social Achievements

100% employee training on health and safety measures.
~75% employees provided training on ESG topics.
100% return to work rate for employees who availed parental leave.
Zero cases of high consequence work-related injury or fatalities.
Awareness programs conducted for 69% of value chain partners.

Governance Achievements

Zero cases of breach of Code of Conduct.
Zero cases of data breach, cybersecurity, and information security-related incidents.
Implemented Responsible Care program at Ratnagiri plant (and initiated at Urse and Masar plants).
Achieved Great Place to Work Certification.

Climate Goals & Targets

Long-term Goals:

At least 15% of Power Consumed to come from Renewable Sources

Medium-term Goals:

100% electric powered forklifts by 2030 at all plants.
Implement Responsible Care program at all sites by 2025.
Conduct Biodiversity study in Ratnagiri plant by 2025.
Plant 100,000 trees by 2025.
Public commitment to no deforestation and publicly available biodiversity policy by 2025.
>95% compliance with the Employee CoC through written/digital acknowledgment and regular training of eligible employees by 2023.
>95% Compliance of the Third-party CoC through written/digital acknowledgment and regular training of eligible employees by 2025.
100% of employees to be trained on information security by 2023.

Short-term Goals:

Establish an ESG policy framework and monitoring mechanism by 2023.
Implement an organization-wide ESG Policy by 2023.
>95% coverage of ESG awareness/training sessions for eligible employees by 2023.
Maintain employee turnover rate consistently under 15%.

Environmental Challenges

Global geopolitical conflicts, supply chain disruptions, and inflation crisis impacting raw material pricing and financial performance.
Climate change risks (extreme weather events disrupting supply chain, damaging infrastructure, interrupting production).
Supply chain constraints (ethical sourcing concerns and availability of eco-friendly materials).

Mitigation Strategies

Investment in infrastructure resilience to withstand extreme weather events.
Comprehensive climate change mitigation strategies (reducing greenhouse gas emissions and developing adaptive measures).
Collaboration with suppliers, diversification of supplier base, promoting ethical sourcing practices, regular supplier audits and assessments.

Supply Chain Management

Supplier Audits: 1.85% of significant suppliers assessed in FY 2022-23; remaining assessed through internal self-assessment questionnaire.

Responsible Procurement

Sourcing from suppliers who offer environment-friendly options.
Promoting recycling and responsible waste disposal practices.
Supplier Code of Conduct (SCoC) covering environment, health, safety, and human rights aspects.

Climate-Related Risks & Opportunities

Physical Risks

Extreme weather events

Transition Risks

Regulatory changes

Opportunities

Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards 2021, National Guidelines on Responsible Business Conduct (NGRBC), Sustainability Accounting Standards Board (SASB), UN Sustainable Development Goals (SDGs), UN Global Compact (UNGC) principles, World Economic Forum (WEF) ESG Metrics, GCCA Sustainability Charter

Certifications: ISO 9001:2015, ISO 14001, ISO 45001, ISO 27001:2013

UN Sustainable Development Goals

Goal 7 (Affordable and Clean Energy)
Goal 6 (Clean Water and Sanitation)
Goal 13 (Climate Action)
Goal 8 (Decent Work and Economic Growth)
Goal 9 (Industry, Innovation, and Infrastructure)
Goal 12 (Responsible Consumption and Production)
Goal 17 (Partnerships for the Goals)

Initiatives contribute to these goals through various environmental, social, and governance programs.

Sustainable Products & Innovation

Lead-free products (target 100% by 2026)
Suspension PVC grade FS-6701 products certified by NSF/ANSI 14

Awards & Recognition

Great Place to Work Certification
Responsible Care® logo (Ratnagiri plant)
Various CSR awards (detailed in the report)

Reporting Period: 2023-04 to 2024-03

Environmental Metrics

Total Carbon Emissions:455,207 tCO2e/year

Scope 1 Emissions:381,866 tCO2e/year

Scope 2 Emissions:52,282 tCO2e/year

Scope 3 Emissions:21,059 tCO2e/year

Renewable Energy Share:>3.2%

Waste Generated:11,166 tons/year

Carbon Intensity:0.7993 tCO2e/ton of production

ESG Focus Areas

Environmental Stewardship
Social Responsibility
Governance

Environmental Achievements

>3.2% share of renewable energy (as % of total electrical energy produced/purchased)
Avoided more than 20,000 tonnes CO2e emissions
Harvested more than 300,000 kiloliters (KL) rainwater
Recycled 260,000 KL effluent back to process
70% of forklifts are electric powered
Reduction in Scope 1 emissions by 7%
Reduction in Scope 2 emissions by 4%
Reduction in Scope 3 emissions by 5%

Social Achievements

90% of one shift at Badhalwadi Fittings plant staffed by women
Launched Finolex Pipes Academy to foster continuous learning
Launched "Dial HR - Happy to Listen" initiative
Zero fatalities
Expanded female participation in production roles
₹ 25.64 crores contributed in CSR activities

Governance Achievements

Received Great Place to Work® certification for the second consecutive year
Zero cases of breach of Code of Conduct
Zero cases of corruption and anti-competitive practices
100% of Directors, KMPs and Employees trained on the Code of Conduct

Climate Goals & Targets

Long-term Goals:

Offer exclusively lead-free products by 2026

Medium-term Goals:

100% electric powered forklifts by 2030
At least 15% of power consumed to come from renewable sources over the next two years

Short-term Goals:

Implement Responsible Care® program at all plants by 2025
Conduct a biodiversity study at the Ratnagir plant by 2025
Plant 100,000 trees by 2025

Environmental Challenges

Supply chain disruptions due to climate events and geopolitical risks
Regulatory changes and compliance costs
Business continuity risks

Mitigation Strategies

Developed a diversified supplier base
Implemented robust inventory management systems
Established alternative logistics strategies
Investing in supply chain visibility tools
Actively engaging with policymakers and industry associations
Established a dedicated compliance team
Integrating compliance considerations into business planning and strategy
Regular testing of business continuity and contingency plans

Supply Chain Management

Supplier Audits: 58% of value chain partners assessed; 33.8% of significant suppliers through detailed evaluations.

Responsible Procurement

Supplier Code of Conduct
Sustainable sourcing (90% of raw materials from sustainable sources)

Climate-Related Risks & Opportunities

Physical Risks

Extreme weather events

Transition Risks

Regulatory changes

Reporting Standards

Frameworks Used: GRI Standards 2021, National Guidelines on Responsible Business Conduct (NGRBC), Sustainability Accounting Standards Board (SASB), UN Sustainable Development Goals (SDGs), UN Global Compact (UNGC), World Economic Forum (WEF) ESG Metrics, GCCA (Global Cement and Concrete Association) Sustainability Charter

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, Responsible Care®

UN Sustainable Development Goals

CSR activities align with UNSDGs, including poverty eradication, hunger reduction, clean water and sanitation, gender equality, and climate action.

Awards & Recognition

Great Place to Work® certification
National award for marketing excellence