Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Planted over 10 million saplings covering over 12,000 acres across plant locations.
• Introduced Okoume – a sustainable substitute for forest timber.
• Received FSC® certification for environment-friendly veneers.
• Transitioned to using firewood chips (waste byproduct) to power operations, moving away from coal.

Social Achievements

• Received “Great Place to Work” certification for the third consecutive year.
• Implemented various employee engagement events and benefits.
• Supported girl child education through the Udayan Shalini Fellowship Programme.
• Provided healthcare services through Mobile Medical Vans (MMVs).
• Supported education of tribal and rural children.

Governance Achievements

• Established a Code of Business Ethics.
• Formed various committees (Audit, Stakeholders Relationship, Nomination & Remuneration, CSR, Risk Management, Operational) for governance and oversight.
• Implemented a Vigil Mechanism Policy with zero incidences of corruption in FY 2021-22.
• Implemented a Corporate Social Responsibility Policy.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions in the decorative segment due to reliance on diverse, geographically specific wood species.
• Water consumption in water-stressed areas.
• Managing hazardous waste from formaldehyde-based resins.

Mitigation Strategies

• Robust inventory management mechanism.
• Rationalizing water use through campaigns, trainings, and awareness sessions.
• Recycling water from RO system for sprinklers and other purposes.
• Using wood chips for energy generation.
• Disposing of hazardous waste through registered waste management services.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sourcing timber from agro-forestry.
• Regular supplier meets and awareness programs.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards

Certifications: FSC® – FM certification, CARB Certification

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• E-0 plywood (India’s first-of-its-kind)

Awards & Recognition

• Best Green Manufacturing Company (ET Now, 2022)
• Most Trusted Brands of India (Commerzify, 2022)
• Pride of India Brand (e4m, 2022)
• Great Place to Work (2020, 2021, 2022)
• Dream Company to Work (Asian HR Leadership Awards, 2021)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Planted around 25 million saplings covering nearly 31,471 acres by March 31st, 2023; plans to plant 50 million by 2025.
• Launched zero-emission products (CARB & EPA compliant).
• Wastewater management across manufacturing facilities.
• Targeting to be a zero-waste company.
• Reduced natural fuel consumption by 269,130 kgs by replacing steam coal with in-house waste.
• Significant reduction in overall energy consumption by deploying electric vehicles and EV forklifts.

Social Achievements

• Promoting agro-forestry to improve farmers' and local communities' lives.
• Created 200 man-days of employment per acre in plantation areas.
• Launched #PlasticFreeTiranga campaign to discourage single-use plastic.
• Pledged to stop using and disposing of single-use plastic organizationally.
• FSC®-FM certification for sustainable plantation unit in Tizit, Nagaland.

Governance Achievements

• First organization in the Indian wood panel industry to be awarded the FSC®-FM certification.

Climate Goals & Targets

Environmental Challenges

• Adverse effects of climate change disrupting global supply chains.
• Water scarcity in operational areas increasing water procurement costs.

Mitigation Strategies

• Sustainable forest management and plantation activities to mitigate climate change.
• Wastewater management across manufacturing facilities to prevent groundwater contamination.
• Responsible sourcing of raw materials, including sustainable forest management and community engagement.

Supply Chain Management

Responsible Procurement

• Responsible timber sourcing from plantation timber and agro-forestry.
• Quality checks on raw materials at manufacturing plants.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: FSC®-FM

Certifications: FSC®-FM

Sustainable Products & Innovation

• Zero Emission (E-0) products

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Set up of subsidiary in Gabon (West Africa) for production of face veneers – capacity expanded to 96000 CBM for peeling of logs annually.
• Plantation of fast growing and improved species to improve quality of wood availability and plywood manufactured; actively involved in distribution of saplings to promote plantation in the vicinity of our manufacturing units.

Social Achievements

• Free eye check up camp and cataract operation for communities
• Blood donation camp
• Mobile Medical Van (MMV) to provide basic diagnostic, medicine, curative, referral and counselling services to the rural population
• Contribution towards Education: Promoting education, including special education and employment enhancing vocational skills especially among children, women, elderly and the differently abled and livelihood enhancement projects

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Sustained slowdown in metros and Tier I cities have led to steep growth deceleration over the last two years
• The low-end plywood market is either not growing or declining over the last five years due to increasing shift happening from cheap plywood to MDF and other product due to better durability and declining price differential between the two, increase in face veneer prices post the Myanmar ban, higher working capital requirements, and implementation of GST & E-way bill

Mitigation Strategies

• Gaining market share from Tier II brands as well as unorganized sector
• Creating markets for niche value add categories through constant innovation
• Gaining market share from Tier II brands and unorganised sector is expected to be a huge opportunity for Tier I brands
• Tapping huge outsourcing opportunity in the category; which would be RoCE accretive
• To increase proportion of outsourcing to more than 60% over next 3 years in value terms
• Quality Team on vendor’s site to monitor quality of inputs and ensure consistent quality of finished product

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: FSC COC certified

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Green Club 5 Hundred

Awards & Recognition

• Sardar Kid won the gold at Abby Awards 2006