Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced specific electricity consumption by 36% compared to FY 2013-14
• Renewable electricity accounts for 62.2% of total electricity consumption in FY 2022-23
• Replenished 382% of total water used in manufacturing sites in FY 2022-23
• Reduced overall water footprint by 53% since 2013-14 to 0.45 Kl/Kl at decorative paint manufacturing plants
• Avoided 20,390 tCO2e in FY 2022-23 through formulation and process innovations
• Used 5,200 tonnes of recycled content in plastic packaging in FY 2022-23
• Reduced more than 3,000 tCO2e in FY 2022-23 through multi-modal outbound logistics

Social Achievements

• Various well-being measures for employees and workers including health insurance, accident insurance, maternity benefits, and paternity benefits.
• 100% of permanent employees and workers covered under PF, Gratuity, and ESI.
• Three decorative paint manufacturing plants received five-star rating by British Safety Council and three plants received Sword of Honour from the British Safety Council.
• Various training programs for employees and workers on health and safety, skill upgradation, and Code of Conduct.
• Initiatives under CSR for health & hygiene and skill development benefiting 865,000+ people.

Governance Achievements

• Established a Stakeholders Relationship Committee (SRC) to oversee ESG implementation.
• Published position statement on anti-corruption and anti-bribery.
• Code of Conduct for Employees, Business Partners, Board and Senior Management Personnel in place.

Climate Goals & Targets

Environmental Challenges

• Reducing Scope 3 emissions
• Managing waste generation
• Ensuring sustainable sourcing

Mitigation Strategies

• Implementing sustainable supply chain framework
• Increasing use of recycled plastic in packaging
• Investing in renewable energy and energy efficiency
• Implementing Zero Liquid Discharge in all manufacturing plants
• Developing low-VOC paints

Supply Chain Management

Supplier Audits: 100% of new suppliers screened using environmental criteria

Responsible Procurement

• Code of Conduct for Business Partners
• Sustainable Supply Chain Framework

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards, TCFD Framework, BRSR (SEBI)

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

Third-party Assurance: Price Waterhouse Chartered Accountants LLP (Reasonable/Limited Assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Low-VOC paints
• Green Seal and Green Assure products

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Product Stewardship
• Community
• Health & Safety

Environmental Achievements

• 74% reduction in Scope 1 and Scope 2 emission intensity over 2013-14
• 382% water replenishment
• 62.2% renewable energy share
• 21% reduction in specific hazardous waste over previous FY
• Collection and safe disposal of over 54,000 MT of plastic waste

Social Achievements

• Colour Academy training for over 5.1 lakh participants
• Health and Hygiene initiatives touching more than 3.65 lakh lives
• Water Management creating water harvesting potential of 195%
• Disaster relief support to communities

Governance Achievements

• Adoption of ESG strategy incorporating sustainable operations, social responsibility, and governance
• Rollout of sustainable supply chain framework

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to geopolitical tensions, COVID-19, and inflation
• Climate change risks (physical and transition)
• Water scarcity concerns

Mitigation Strategies

• Climate risk assessment following TCFD recommendations
• Sustainable supply chain framework
• Water conservation and replenishment initiatives
• Resilience measures for physical risks
• Engagement with suppliers to reduce emissions

Supply Chain Management

Supplier Audits: 100% of new suppliers screened using Environmental and Social criteria

Responsible Procurement

• Code of Conduct for Business Partners
• Sustainable Supply Chain Framework
• Responsible Procurement Policy

Climate-Related Risks & Opportunities

Physical Risks

• Heatwaves
• Droughts
• Cyclones
• Floods

Transition Risks

• Policy & legal changes
• Technology changes
• Market changes
• Carbon market obligations
• Increased cost of raw materials
• Changing customer behavior
• Increased stakeholder concern

Opportunities

• Resource efficiency
• Shift in consumer preferences
• Use of lower-emission energy sources

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: Price Waterhouse Chartered Accountants LLP

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 6 (Clean Water and Sanitation)
• Goal 13 (Climate Action)
• Goal 3 (Good Health and Well-being)
• Goal 8 (Decent Work and Economic Growth)

Sustainable Products & Innovation

• Nilaya Naturals paint
• Green Seal and APL’s Green Assure certified products
• GreenPro certified products

Awards & Recognition

• CDP Climate Change Score 'B'
• MSCI ESG Ratings 'AA (Leadership)'
• Greentech International EHS Award
• British Safety Council ‘Sword of Honour’
• ICC National Occupational Health and Safety Gold Award
• Global Safety Award 2023
• Platinum award by QCFI
• National Safety Award
• Golden Peacock Occupational Health & Safety Award

Environmental Metrics

ESG Focus Areas

• Energy conservation
• Water neutrality
• Product stewardship
• Nature positive
• Community ownership, Customer celebrations
• Water stewardship
• Energising, equitable & inclusive workplace
• Safe workplace
• World-class governance
• Ethics, transparency, quality and accountability
• Sustainable supply chain management

Environmental Achievements

• 45% Reduction of absolute Scope 1 and 2 GHG emissions compared with baseline (FY 2013-14)
• 65.8% Share of renewable electricity in total electricity consumed across paint manufacturing factories
• 36% Reduction in specific electricity consumption compared with baseline
• 387% Water replenishment
• 75% reduction in specific Scope 1 and Scope 2 emissions from the baseline year of 2013-14
• 77% reduction in specific hazardous waste disposal from FY 2013-14
• 54% reduction in specific non-process water consumption from FY 2013-14
• 80% reduction in specific effluent generation from FY 2013-14

Social Achievements

• 680,000+ Participants trained at Asian Paints Colour Academy
• 79% Employee engagement score
• 73 Net Promoter Score (NPS)
• 353,000+ Lives touched through healthcare initiatives

Governance Achievements

• 5 out of 6 Committees chaired by Independent Director
• AA ESG Rating by MSCI
• 100% of new suppliers screened based on Environmental and Social criteria

Climate Goals & Targets

Environmental Challenges

• Lingering impact of retail inflation, particularly in rural markets leading to single-digit revenue growth.
• Macroeconomic challenges, inflation, and forex unavailability in key geographies impacting International Business.
• High competition in the home décor market.
• Challenges in the Bath industry with price reductions and commoditization.
• Supply chain disruptions due to geopolitical instability.
• US Dollar shortages in Egypt and Ethiopia.
• Liquidity crunch in Nepal impacting business.
• Counterfeit products posing a risk to revenue and brand reputation.

Mitigation Strategies

• Internal cost optimisation initiatives.
• Sourcing and formulation efficiencies.
• Expanding the organised market and strengthening foray into the bottom of the pyramid segment.
• Price moderation strategies.
• Strengthening the décor foray with new collections, network, and store expansions.
• Price increases to protect margins in Egypt and Ethiopia.
• Working capital management and cash preservation initiatives.
• Launching new products and enhancing offerings across markets.
• Multi-modal transport options to reduce costs and carbon footprint.
• Joint value creation program with suppliers.
• Anti-counterfeit measures in packaging.
• Active monitoring of feedback and addressing concerns.

Supply Chain Management

Supplier Audits: 77% of RM/PM suppliers assessed for ESG maturity and impact.

Responsible Procurement

• Code of Conduct for Business Partners
• Responsible Procurement Policy
• ESG criteria in new supplier screening
• Supplier onboarding process
• ESG Disclosure

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, drought, cyclones, floods

Transition Risks

• Policy and legal changes, market shifts, technology changes

Opportunities

• Development of energy-efficient products
• Increased use of renewable energy

Reporting Standards

Frameworks Used: Integrated Reporting Framework, GRI Standards 2021, UN SDGs, TCFD

Certifications: ISO 45001, Green Seal, APL’s Green Assure, CII-IGBC’s GreenPro

Third-party Assurance: Price Waterhouse Chartered Accountants LLP

Sustainable Products & Innovation

• Nilaya Naturals
• Royale Glitz
• Neo Bharat Latex Paint
• Apex Ultima Protek Duralife Basecoat
• SmartCare Damp Proof Play
• WoodTech Flash
• WoodTech Emporio PU
• Apcolite Insectshield Enamel
• SmartCare Damp Proof Xtreme
• SmartCare Damp Sheath Interior Waterproofing Primer

Awards & Recognition

• Best Governed Company
• Golden Peacock Award for Excellence in Corporate Governance
• FICCI Chemicals & Petrochemicals Awards
• Top 15 Most Sustainable Companies in India
• Silver Award by ICAI for Sustainability Reporting
• Sword of Honour by British Safety Council
• Asian Paints Beautiful Homes Stores awards
• CII National Energy Efficiency Circle Competition awards
• Global Safety Awards
• Golden Peacock Occupational Health & Safety Award
• CII IQ National Excellence Practice Competition awards
• IIA Excellence Award – Audit Team Productivity