VST Industries Limited
Climate Impact & Sustainability Data (2021-04 to 2022-03, 2023-04 to 2024-03)
Reporting Period: 2021-04 to 2022-03
Environmental Metrics
Total Carbon Emissions:4321 tCO2eq/year
Scope 1 Emissions:762 tCO2e/year
Scope 2 Emissions:3559 tCO2e/year
Renewable Energy Share:10% of total energy use
Total Energy Consumption:29 TJ/year
Water Consumption:4 KL/mnc.
Waste Generated:40.45 tons/year
Carbon Intensity:0.65 tCO2e/mnc.
ESG Focus Areas
- Environment
- Social
- Governance
Environmental Achievements
- Transitioned from single-use BOPP films to biodegradable films
- Both manufacturing units are Zero Liquid Discharge
- Reduced energy intensity by 8% and carbon footprint by 24%
- Installed 1 MW of rooftop solar panels, avoiding 275 tCO2 emissions
- Replaced HSD fuel with PNG in boiler operations, avoiding 378 tCO2e emissions
Social Achievements
- Constructed 1,685 household/school restrooms and 400 solar street lights
- Extended Covid help to communities
- Provided infrastructural support for ten schools
- Constructed over 7,675 household toilets, resulting in four villages being declared ‘open defecation free’
- Implemented Agricultural Labour Practices (ALP) Code to prevent human rights violations
Governance Achievements
- Extended the scope of the CSR committee to oversee ESG progress
- Institutionalised a robust risk management framework considering ESG challenges
- Established a three-layered ESG governance structure
Climate Goals & Targets
Long-term Goals:
- Carbon neutral operations by 2030
Medium-term Goals:
- 50% renewable energy by 2030
- 100% of fleet to be electric vehicles by 2030
- 100% carbon offset for Scope 1+2 emissions by 2030
- 100% of packaging to be reusable, recyclable, or biodegradable by 2030
- 100% offsetting of plastic packaging by 2030
- 30% of contracted farmers to use drip irrigation by 2030
- 30% of crop protection agents to be biofertilizer/biochemicals based by 2030
- 20% improvement in soil organic matter by 2030
Environmental Challenges
- Stringent regulatory regime (COTPA) impacting revenue growth and communication with adult smokers
- Taxation changes impacting short-term revenue
- Regional disruptions impacting short-term revenue and reputation
- Counterparty risk impacting capital and profitability
- Data risks related to sensitive information
Mitigation Strategies
- Continuous social dialogue with stakeholders and regulatory community
- Engagement with tax authorities, brand portfolio diversification, investment in distribution infrastructure
- Developing secure multiple sourcing/delivery strategies, insurance cover, business continuity planning
- Investment based on principle of Safety; Liquidity & Returns (SLR), strong-rated institutions
- Information technology policies and procedures, data backup mechanisms, disaster recovery center
Supply Chain Management
Responsible Procurement
- Sustainable Tobacco Programme (STP)
- Agricultural Labour Practices (ALP) Code
- Good Agriculture Practice (GAP)
Climate-Related Risks & Opportunities
Physical Risks
- Intense heat waves, high and variable rainfall, flooding, reduction in crop yields
Transition Risks
- Regulatory changes, market shifts
Opportunities
- Development of energy-efficient products
Reporting Standards
Frameworks Used: GRI Standards: Core option
Certifications: ISO 14001:2015, ISO 45001:2018
Third-party Assurance: Ernst & Young Associates LLP
UN Sustainable Development Goals
- SDG 7 (Affordable and Clean Energy)
- SDG 8 (Decent Work and Economic Growth)
- SDG 9 (Industry, Innovation, and Infrastructure)
- SDG 12 (Responsible Consumption and Production)
- SDG 13 (Climate Action)
- SDG 6 (Clean Water and Sanitation)
Initiatives contributing to these goals are detailed in the report
Sustainable Products & Innovation
- Biodegradable films replacing BOPP films
Reporting Period: 2023-04 to 2024-03
Environmental Metrics
Total Carbon Emissions:4007 tCO2e/year
Scope 1 Emissions:910 tCO2e/year
Scope 2 Emissions:3097 tCO2e/year
Scope 3 Emissions:3393 tCO2e/year
Renewable Energy Share:15%
Total Energy Consumption:35 TJ/year
Water Consumption:27301 KL/year
Waste Generated:28.9 tons/year
Carbon Intensity:0.63 tCO2e/MNC
ESG Focus Areas
- Energy
- Emissions
- Climate Resilience
- Water
- Waste Management
- Sustainable Material
- Biodiversity
- Farmer Livelihood
- Circular Economy
- Human Rights
- Health & Safety
- Employment
- Consumer Welfare
- Littering Prevention
- Labour-Management Relations
- Training and Education
- Diverse and Inclusive Work Environment
- Community Initiatives
- Regulatory Compliance
- Business Ethics
- Illicit Tobacco Trade Prevention
- Policy Advocacy
- Innovation
- Responsible Sourcing
Environmental Achievements
- Achieved 25.6% renewable energy in overall electricity consumption by expanding onsite solar capacity (exceeding 2025 target of 25%)
- Achieved 12.52% reduction in water consumption levels compared to baseline values (exceeding 2025 target of 5% reduction)
- Toopran unit awarded the “Alliance for Water Stewardship Certification Gold Rating”
- Both manufacturing units achieved Zero Liquid Discharge (ZLD) status
- 3% reduction in total absolute energy consumption
- 100% of packaging is reusable, recyclable, or biodegradable
- 100% offsetting of plastic packaging through post-consumer plastic waste collection and processing
Social Achievements
- Healthcare services provided to over 4,800 people
- Educational infrastructure benefitting 2,500+ children
- Improved lives of 5,000 students with a mid-day meal program
- Constructed household toilets for 575 families, benefiting over 2,800 people
- Decrease in employee turnover from 21% to 20% and worker turnover from 9% to 3%
- Introduced new modules for frontline sales, a campus-connect program and a new sales incentive policy
Governance Achievements
- Government of Telangana awarded ‘Best Management Award’
- Established a robust risk management framework addressing ESG-related challenges
- Developed a comprehensive supplier assessment framework
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- 50% renewable energy in overall energy mix by 2030
- 100% of fleet on electric vehicles by 2030
- Carbon neutrality/offsetting: 100% carbon offset for VST’s own operations by 2030
- Rainwater Harvesting Potential equivalent to over 3 times the Net Water Consumption by 2030
- 100% of packaging to be reusable, recyclable, or biodegradable by 2030
- 100% offsetting of plastic packaging by 2030
- 30% of contracted farmers to use drip irrigation by 2030
- 30% of crop protection agents to be biofertilizer/biochemicals based by 2030
- 20% improvement in soil organic matter by 2030
Short-term Goals:
- Not disclosed
Environmental Challenges
- Regulatory restrictions posing a threat to long-term revenue growth
- Taxation changes impacting short-term revenue growth
- Regional disruptions affecting revenue and reputation
- Counterparty risk affecting capital and profitability
- Data risks threatening sensitive information
Mitigation Strategies
- Ongoing dialogue with stakeholders and regulatory bodies
- Developing strategies to launch competitive brands within evolving regulations
- Engaging with tax authorities, diversifying brand portfolio, investing in distribution infrastructure
- Developing secure supply chain strategies, insurance coverage, business continuity planning
- Investing in institutions with strong ratings and adhering to SLR principles
- Enforcing IT policies, regularly reviewing controls, implementing data backup and disaster recovery
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Agreements with suppliers mandating adherence to minimum sustainability and ethical criteria
- Developing a comprehensive Supplier Assessment Framework
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Not disclosed
Reporting Standards
Frameworks Used: GRI
Certifications: ISO 14001:2015, ISO 45001:2018
Third-party Assurance: TÜV SÜD South Asia
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Tri Sensate products; Demi Slim format products; biodegradable packaging.
Awards & Recognition
- ‘Best Management Award’ from Government of Telangana; AWS “Gold certification” for Toopran unit.