Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Growing commitment to environmental management systems, environmental due diligence and disaster planning & response systems across construction sites
• Commitment to reduce energy intensity, reduce greenhouse gas emission intensity and graduate to cleaner processes and fuels

Social Achievements

• Investment in a culture directed at the predictable delivery of projects
• Prudent investments (recruitment, retention and training) to enhance effectiveness across business functions
• Investments in practices that enhanced safety – training, protocols, certifications, investment in supports and awareness-building
• Deepened relationships with vendors and customers
• Engaged with the community around construction sites to widen the circle of prosperity through relevant interventions in line with the United Nations’ Sustainable Development Goals

Governance Achievements

• Deepened investment in processes, especially information technology
• Strengthened an audit-driven and compliance-driven approach, enhancing the predictability of processes
• Controlled monitored growth estimated at 15% CAGR
• Objective to balance a desired EBIDTA hurdle rate of 15% or net profit margin of 8% on the P&L account coupled with a gearing (debt-equity ratio) not exceeding 0.25
• Deepened organizational culture around ‘best over biggest’ , ensuring complete alignment in strategic direction
• Commitment to not just to do the right things but to do them in the right way
• Highest priority in reporting credible financials
• Generated approvals of two ratings for bankers to implement; completed three forensics successfully

Climate Goals & Targets

Environmental Challenges

• Severe stress on financials on account of several factors like Covid 19 pandemic, delay in execution of projects, delay in execution of BOT Projects, cost over runs on delayed projects, high interest cost vis- a-vis volume of the Company’s operation, stressed working capital finance and similar factors peculiar to the infrastructure sector
• Delays in bid evaluations, board approvals, etc., towards the end of the FY, and further aggravated due to the impact of COVID-19
• Delays affected the anticipated order inflow
• Credit availability constraints due to commercial banks being constrained by sectoral exposure limits and leveraging for large Indian infrastructure companies
• Unfavorable working capital management
• Difficulty in obtaining required NFB limits
• Time and cost overruns in project execution
• Lengthy regulatory approvals (land acquisition, environment clearances etc.)
• High contingent liabilities and commitments
• Increase in worker costs following the Covid-19 pandemic
• Revised standard operating procedures incorporating social distancing, personal protective equipment and hygiene to increase project costs
• Land acquisition delays impacting progress of work and idling of resources
• Tougher commercial terms resulting in working capital pressures
• Delays in various approvals
• Extreme environmental events (unprecedented rainfall), National Green Tribunal bans and construction bans due to pollution
• Market competition due to Government promoting EPC contracts
• Slow dispute resolution and claims settlement

Mitigation Strategies

• Debt restructuring
• Reducing dependency on human resources by leveraging advanced construction technology
• Implementing techniques like Zero Based Budgeting for cutting down unnecessary expenses and optimizing resource utilization
• Cautious approach in the Middle East and exploring opportunities to enter new geographies like Bangladesh and Africa
• Customer-centric approach, construction expertise and technology leadership
• Securing the safety and livelihood of staff and subcontracted labour working at project sites
• Curtailing and reducing overheads at all operating levels
• Enhancing liquidity on Balance Sheet through increased market borrowings
• Controlling working capital requirements through judicious cash flow planning and measured project execution
• Venturing into the EPC sector and setting a target to bid for large & complex EPC projects
• Looking to develop an in-house enterprise as a construction contractor in a mid-size segment
• Looking out for BOT Toll and Annuity projects bid out by the Government
• Focusing on profitable orders backed by multi-lateral lending agencies or the government or municipal corporation in specific business segments that can be delivered on schedule
• Maximising the utilisation of owned assets through high operational uptime, improved effectiveness and efficiency
• Investing in exploring improvements in methods and processes in construction and operational monitoring
• Growing business through accruals, minimizing the role of long-term or working capital debt
• Investing in customized and digitalized information dashboards that strengthen real-time control on business
• Managing only a specific number of projects sized with the company’s Balance Sheet and managerial bandwidth
• Assuming unplanned and unforeseen deviations from time and cash budgets, prompting adequate systemic buffers and redundancies
• Bidding for projects backed by sound multi-lateral funding agencies or credible partners with liquid Balance Sheets
• Concentrating on projects and business segments that are not affected by the withholding of retention money

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UNGC principles

Awards & Recognition

• Fastest Growing Construction Company (mid-size category to first rank) at the 10th Construction World Annual Awards 2012.
• Industry Honour for Outstanding Contribution in Specialized Construction (EPC category) at the 3rd EPC World Awards 2012.
• Fastest Growing Construction Company (small size category to 2nd rank) at the 9th Construction World Annual Awards 2011.
• Fastest Growing Construction Company (small size category to 2nd rank) at the 8th Construction World Annual Awards 2010.
• Young Entrepreneur of the year 2010 to Mr. Vikram Sharma, Managing Director by EPC World Awards, 2010.
• Certificate of Recognition from Essar Steel’s Infrastructure Excellence Awards 2010.
• Most Admired Corporate in Infrastructure Development in 2010 from Infrastructure Excellence Awards 2010.
• Udyog Ratna Award to Mr. Bhawanishankar Sharma, Executive Chairman, by Institute of Economic Studies.