Climate Change Data

Environmental Metrics

ESG Focus Areas

• Business Ethics
• Product Responsibility
• Wellbeing of Employees
• Stakeholder Engagement
• Human Rights
• Environment
• Public Policy
• CSR
• Customer Relations

Environmental Achievements

• Reduced CO2 emissions equivalent to 83,332.81 MT in 2020-2021 through renewable energy (49.11% wind, 1.53% solar)
• Change in coating process to hazard-free coatings, substituting chrome VI with chrome III and replacing electroplating with zinc flake coating.
• Initiatives in energy efficiency: LPG fired furnace, OFF delay timer, LED lamp replacement, cooling water usage, VFD control, voltage optimization, energy efficient coolers, etc.

Social Achievements

• Total Quality Management (TQM) training extended to sub-contractors.
• CSR initiatives in education, healthcare, environmental sustainability, art and culture, and livelihood enhancement (details on page 22-29 of Annual Report).

Governance Achievements

• Quarterly assessment of BR performance by the Board of Directors, Committee of the Board or CEO.
• Code of Business Conduct and Ethics policy covers the Company and its subsidiaries.

Climate Goals & Targets

Environmental Challenges

• Limited applicability of some principles considering the nature of the company's business.

Mitigation Strategies

• Company complies with regulations and has taken initiatives to promote inclusive growth and environmental sustainability.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Indigenization/localization plans, strong subcontractor base, priority to domestic sources, TQM training for subcontractors

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001, IATF 16949:2016

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Sprocket (VVT), Variable Displacement Oil Pump (VDOP), Backing Plate for Automotive Transmission, Shift Fork, Electric Water Pump Engine Brake System, Integrated Front Cover, Exhaust Brake Valve

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced carbon footprint through increased renewable energy use (39.91% of total energy mix)
• Implemented zero liquid discharge (ZLD) facilities in most units
• Maintained 132 acres of green belt with 34,078 trees

Social Achievements

• Launched Sundram Matriculation Higher Secondary School, with 50% female enrollment
• Implemented various employee well-being programs including mental health assistance
• Provided financial assistance for employee children's education and community development initiatives

Governance Achievements

• Implemented robust monitoring system for compliance with regulations
• Established a culture centered on excellence, transparency, and ethical business practices
• Established various committees (Audit, Nomination & Remuneration, Stakeholders’ Relationship, Risk Management) to oversee operations and ensure sustainable growth

Climate Goals & Targets

Environmental Challenges

• Inflationary pressures and rising steel prices
• Supply chain disruptions and geopolitical tensions
• Intensely competitive market

Mitigation Strategies

• Cost efficiencies through operational improvements
• Long-term supply contracts with steel suppliers
• Diversification of customer and supplier base
• Investment in renewable energy to reduce electricity costs

Supply Chain Management

Supplier Audits: Annual audits

Responsible Procurement

• Supplier assessment based on environmental, legal, health & safety, training, business continuity, financial sustainability, and product quality criteria
• Supplier development programs (training, technical assistance, financial assistance)
• Supplier rating system

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001, ISO 14001, ISO 45001, IATF 16949

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 3: Good Health and Well-being
• Goal 6: Clean Water and Sanitation
• Goal 4: Quality Education
• Goal 9: Industry, Innovation and Infrastructure
• Goal 8: Decent Work and Economic Growth
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 7: Affordable and Clean Energy
• Goal 15: Life on Land
• Goal 16: Peace, Justice and Strong Institutions

SFL's ESG initiatives align with these SDGs through various programs and initiatives detailed in the report.

Awards & Recognition

• Deming Prize (2018)
• Quality Ratna Award (2019)
• CII Innovation Award (2020)
• Supplier of the Year (2022 - General Motors)
• Businesswoman of the Year (2022 - Arathi Krishna)

Environmental Metrics

ESG Focus Areas

• Energy and GHG Management
• Waste Management
• Water Management
• Product Stewardship
• Biodiversity
• Human Rights and Labor Practices
• Employee well-being
• Occupational Health and Safety
• Training and Development
• Diversity and Inclusion
• CSR and Impact Assessment
• Fair Business Practices
• Supply chain Management
• Economic Performance
• Customer Centricity
• Stakeholder Engagement
• Data Security

Environmental Achievements

• Lowered scope 1 emissions by reducing dependency on Diesel and LPG through battery-operated electric forklifts
• Reduced Scope 2 emission intensity through energy efficiency measures and procurement of renewable energy
• Increased onsite solar plant capacity by 5.78 MW in FY24
• Procures around 47.25% of power from offsite renewable sources
• Implemented Zero Liquid Discharge (ZLD) across most units

Social Achievements

• Various wellbeing initiatives for employees and workers including health insurance, accident insurance, maternity benefits, and paternity benefits.
• 100% of permanent employees and workers covered by PF, Gratuity, and ESI.
• Continuous training and development programs for employees and workers on health and safety, skill upgradation, and other relevant topics.
• CSR initiatives benefiting communities around operations, focusing on education and healthcare for vulnerable groups.

Governance Achievements

• Code of Conduct, Code of Fair Practices, and Whistleblower Policy promoting transparent business culture and safe working environment.
• Regular review of compensation practices to ensure fairness and equity.

Climate Goals & Targets

Environmental Challenges

• Water management in water-scarce areas
• Waste management and transitioning towards environmental preservation
• Data security

Mitigation Strategies

• Constant efforts to lower water consumption and promote recycling and reuse
• Partnerships with authorized agencies for recycling and reusing hazardous and non-hazardous waste
• Adoption of leading industry security standards and practices such as ISO 27001 and TISAX

Supply Chain Management

Supplier Audits: 100%

Responsible Procurement

• Supplier code of conduct (under development), prioritizing procurement from local suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UNGC

Certifications: IATF 16949, ISO 14001, ISO 45001, ISO/IEC 17025

Third-party Assurance: Not applicable for the year under review

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed