Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced freshwater consumption intensity by 30.7% from FY 2018-19
• Reduced energy consumption intensity by 33.9% from FY 2018-19
• Reduced GHG emissions intensity (Scope1+Scope2) per unit of production by 27.3% compared to FY 2018-19
• Increased overall renewable energy consumption to 48.0% of overall energy consumption
• Reduced overall intensity of waste disposed by 36.1% from FY 2018-19
• Reduced virgin plastics use by 77 MT through design optimization and 100 MT by using post-consumer recycled plastic.
• Reduced multi-layered plastic packaging by 40 MT.

Social Achievements

• Launched various CSR initiatives focusing on sanitation, education, women empowerment, skill development, agriculture, water management, and development of green cover.
• Formed 68 new Self-Help Groups (SHGs) with over 580 additional women members.
• Supported the formation of 35 new Farmer Clubs, covering an additional 1,400 farmers.
• Provided on-call animal husbandry advisory service to 821 project farmers.
• Conducted 13 specialty medical camps under the Doctor Connect program.
• Provided free treatment to 3,405 beneficiaries through various Arogya schemes.
• Provided help to 6,146 patients through the Arogya Fund Scheme, amounting to ₹39.20 lakh.

Governance Achievements

• Established a Board diversity policy.
• Implemented a robust Enterprise Risk Management (ERM) framework.
• Established a Code of Conduct for directors, senior management, and employees.
• Implemented a Whistle Blower Policy.
• Implemented a compliance software called Legatrix to monitor and ensure compliance with relevant laws.

Climate Goals & Targets

Environmental Challenges

• Global challenges and market uncertainties
• Pandemic and persistent inflation leading to increased input costs
• Increased hazardous waste generation due to increased production volume and commissioning of a wastewater recycling unit.

Mitigation Strategies

• Strategic initiatives to mitigate challenges and increase market reach
• Consistent and effective brand building initiatives
• Leveraging innovative capabilities and a resilient supply chain
• Implementing sludge dewatering machines and dryers to reduce hazardous waste
• Developing processes for quality check and reprocessing of retained samples to reduce hazardous waste
• Using alternate cleaning chemicals that are recycled back into the process.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct outlining adherence to regulatory compliance, employee safety and welfare, business integrity and intellectual property

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN SDGs

Certifications: ISO 14001, ISO 45001

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 15
• Goal 16
• Goal 17

Annexure 2 details how initiatives contribute to these goals.

Sustainable Products & Innovation

• Water-based VOC-free adhesives

Awards & Recognition

• Five awards at EFFIE awards
• Six awards at Kyoorius awards
• Two Blue Elephant awards and one Baby Elephant award for Fevikwik Stars
• One Blue Elephant award and one Baby Elephant award for Fevicol Social Distancing Campaign
• Gold at Campaign Digital Crest Awards for Fevicol

Environmental Metrics

ESG Focus Areas

• Combating Climate Change
• Servicing People and Communities
• Responsible Value Creation

Environmental Achievements

• Reduced water use intensity by 19% compared to the previous year (1.33 KL/MT in FY 2022-23 vs 2.38 KL/MT in FY2018-19)
• Reduced energy consumption intensity by 21% compared to the previous year (1.00 GJ/MT in FY 2022-23 vs 1.92 GJ/MT in FY 2018-19)
• Achieved 49% renewable energy consumption
• Reduced GHG emissions intensity by 17% compared to the previous year (0.07 tCO2/MT of production)
• Reduced waste disposal intensity by 16% compared to the previous year (10.88 Kg/MT in FY 2022-23 vs 20.35 Kg/MT in FY 2018-19)
• Reduced plastic usage by 113 MT through design optimization of product packaging
• Used 145 MT of PCR plastics in packaging
• Collected and recycled 100% of plastic packaging

Social Achievements

• Launched Pidilite Life Saving Rules (PLSRs) to encourage employees to voluntarily exhibit safe behaviour and contribute to safety performance
• Continued various social and community service initiatives aimed at improving the quality of life and well-being of the local communities (agriculture, animal husbandry, health, education, women's empowerment, water conservation)
• Formed 110 new Self-Help Groups (SHGs) with over 1,100 additional women members
• Conducted over 190 trainings in over 400 SHGs (over 3,900 women)

Governance Achievements

• Established a Board diversity policy
• Implemented Legatrix software for tracking, managing, and reporting legal, regulatory, and internal compliances
• Formulated Sustainable Procurement Policy and Supplier Diversity Policy

Climate Goals & Targets

Environmental Challenges

• Steep increases in input costs and other inflationary pressures
• Domestic demand impacted by price increases
• Climate change related physical risks (heavy rainfall, cyclone, water scarcity, sea level rise, heatwave)
• Transition risks (policy/regulatory risks, market risk, reputational risk)

Mitigation Strategies

• Resilience measures included in design considerations for climate events
• Focus on water risk reduction through reduce, reuse, and recycle; achieving Zero Liquid Discharge (ZLD) where feasible; zero discharge of domestic effluent outside plant premises
• Strong internal mechanisms to continuously review and assess systems and processes to ensure compliance with regulatory requirements
• Consistent and effective brand building initiatives
• Leveraging innovative capabilities and agile supply chain

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable Procurement Policy
• Supplier Diversity Policy
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Heavy rainfall
• Cyclone
• Water scarcity
• Sea level rise
• Heatwave

Transition Risks

• Policy/regulatory risks pertaining to water, waste and emissions management
• Market risk driven by changing consumer perception and demand for sustainable products
• Reputational risk related to commitment to reduce carbon footprint and negative impact on biodiversity and community

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards, UN SDGs, TCFD

Certifications: ISO 45001:2018 (all manufacturing plants)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 15
• Goal 16
• Goal 17

Initiatives described throughout the report contribute to these goals.

Sustainable Products & Innovation

• Water-based adhesives
• Eco-friendly adhesives
• Roof seal coating meeting Green building standards

Awards & Recognition

• IGBC Greenpro certificate for Roff and HVAC product range
• GRIHA Council certification for HVAC products
• Awards for Best Safety Practices Adoption
• Award for Longest Accident-Free Period
• Gold for “Best CSR Campaign” at the ET Brand Equity Shark Awards 2022
• Gold for “Most Engaging Mobile Creative” at the MADDIES 2022
• Gold for “Best use of Memes & Moments” at the SAMMIES 2022

Environmental Metrics

ESG Focus Areas

• Combating Climate Change
• Servicing People & Communities
• Responsible Value Creation

Environmental Achievements

• Reduced freshwater consumption intensity by 51% compared to FY 2018-19
• Reduced energy consumption intensity by 56% compared to FY 2018-19
• Achieved 47% renewable energy consumption
• Reduced GHG emissions intensity per unit of production by 64% compared to FY 2018-19
• Reduced waste to landfill by 74% compared to FY 2018-19
• Reduced virgin plastic use in packaging by 80 MT
• Reduced weight of multilayer packaging by 50 MT
• Used 850 MT of recycled content in packaging

Social Achievements

• Injury rate of 0.008 per 100 workers in FY 2023-24 vs 0.05 per 100 workers in FY 2018-19
• Implemented Behaviour Based Safety (BBS) program
• Formed 304 new Self Help Groups (SHGs) with over 3,200 additional women members
• Increased average additional income earned by farmers through agriculture initiatives to ₹1.05 Lakh per farmer per annum
• Increased average milk yield by 27% per animal through animal husbandry initiatives
• Provided cashless treatment to 2,990 beneficiaries under Ayushman Bharat scheme

Governance Achievements

• Established a Sustainability Management Council (SMC)
• Implemented a comprehensive risk management procedure
• Established an Ethics Committee to oversee grievances
• Implemented a Whistleblower policy
• No instances of Code of Conduct violations or any incidents leading to fines, penalties, or actions by regulatory bodies

Climate Goals & Targets

Environmental Challenges

• Climate change risks including extreme weather events and water scarcity
• Transition to a low-carbon economy introducing regulatory and market risks
• Subdued business environment in some international markets due to geopolitical tensions, currency challenges and inflation

Mitigation Strategies

• Conducted a detailed climate change risk assessment
• Implemented initiatives to reduce GHG emissions, water consumption, and waste
• Established systems and processes to monitor emerging regulations
• Implemented resilience measures in building infrastructure design
• Focused on water risk reduction through reduce, reuse and recycle, aiming for Zero Liquid Discharge (ZLD)
• Taking various steps to increase sales and market share in international markets

Supply Chain Management

Supplier Audits: 37% of purchases (by value) from suppliers meeting social and environmental standards

Responsible Procurement

• Sustainable Procurement Policy
• Supplier Diversity Policy
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Alterations in rainfall patterns, droughts, severe weather conditions

Transition Risks

• Increased fuel and energy taxes, shift in customer preferences towards eco-friendly products

Opportunities

• Development of sustainable product ranges and eco-friendly solutions, increased demand for solutions addressing electric/low-carbon transportation, circular economy, green investments

Reporting Standards

Frameworks Used: GRI Standards - Core Option, UN SDGs

Certifications: ISO 45001:2018 (all manufacturing plants)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 15, 16, 17

Detailed in Annexure 2

Sustainable Products & Innovation

• Water-based barrier coatings, innovative tile adhesives, sustainable raw materials

Awards & Recognition

• Green Champion of Telangana (Secunderabad plant), Silver for ‘Cause-Based Marketing Campaign’ at the Trendies, 2023, E4M Neon, ‘Baby Elephant’ at Kyoorius Awards, 2023, ‘Packaging Design’ Award at CII Design Summit 2023, Safety Excellence award (Falna Job Worker unit)