Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Certified by Rainforest Alliance and UTZ in recognition of environmental protection
• Adoption of mechanical harvesting of green leaf at plantations
• Focusing on more automation in factories to ensure better quality production

Social Achievements

• Contributions to social causes such as education, healthcare, and orphanages
• Cordial industrial relations during the year
• Repaid entire public deposits during the year

Governance Achievements

• Appointed Mr. Krishna Srinivasan and Mr. K.V. Sriram as Independent Directors
• Implemented a vigil mechanism for whistle-blowing
• Framed a policy on Sexual Harassment

Climate Goals & Targets

Environmental Challenges

• Pending litigation with the Commercial Tax Department regarding Sales Tax on export sales
• Eviction proceedings relating to excess land holding stayed by the Supreme Court

Mitigation Strategies

• Legal counsel believes the company has a strong case in the Sales Tax litigation
• Supreme Court directed the Land Board to review the excess land holding case

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Great Taste Awards 2014 for Chamraj Winter Tea, Chamraj Delicate Green, and Korakundah Organic Green Tea

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Corporate Social Responsibility
• Industrial Relations
• Fair Trade Practices
• Employee Welfare

Environmental Achievements

• Company has been certified by Rain Forest Alliance and UTZ in the area of environmental protection.

Social Achievements

• CSR expenditure of Rs. 20.12 lacs on Children Home, Rural Development and Tribal Welfare Projects.
• Cordial industrial relations during the year.

Governance Achievements

• Detailed note on the composition of the Board and its committees and the meetings held during the financial year is provided in the Corporate Governance Report.
• All the Independent Directors have given declarations that they meet the criteria of independence as provided in Section 149(7) of the Companies Act, 2013.
• Effective Internal Financial Controls both at the Entity levels and process controls.

Climate Goals & Targets

Environmental Challenges

• Rising labour costs
• Weak demand for orthodox black tea in exports

Mitigation Strategies

• Improved price realization through a focus on speciality teas and quality enhancement.
• Continued focus on quality to keep abreast of changing customer preferences.
• Innovations in productivity to address rising labour costs.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Golden Leaf India Awards – Southern Tea Competition 2016 (Chamraj Orthodox Whole Leaf and Korakundah Organic- Orthodox Fannings, Organic – Orthodox Whole Leaf, Green Tea – Whole Leaf, Green Tea – Fannings)

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Social responsibility (employee welfare, community investment)
• Corporate governance

Environmental Achievements

• Chamraj and Korakundah Estates bagged four awards at the Golden Leaf India Awards for environmental protection.
• Company is certified by the Rain Forest Alliance and UTZ in the area of environmental protection.
• Converted three gardens into organic cultivation.

Social Achievements

• Cordial industrial relations.
• Various measures implemented for employee welfare beyond government stipulations.
• Corporate Social Responsibility (CSR) expenditure of Rs.25,85,000.

Governance Achievements

• Robust risk management system.
• Effective internal financial controls.
• Secretarial audit with no qualifications, reservations or adverse remarks.

Climate Goals & Targets

Environmental Challenges

• Climate changes impacting tea industry productivity and profitability (inadequate rainfall, drought, frost).
• Unpredictable monsoons.
• Increase in wages and input costs.

Mitigation Strategies

• Cost-effective measures to reduce production costs.
• Focus on organic and specialty teas with better margins.
• Commercial building ensures regular revenue streams.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Inadequate rainfall
• Drought
• Frost

Opportunities

• Demand for organic tea in export market

Sustainable Products & Innovation

• Organic tea
• Specialty teas

Awards & Recognition

• Golden Leaf India Awards

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Social responsibility (employee welfare, rural development)
• Governance

Environmental Achievements

• Replaced direct woodfire furnaces with fuel-efficient steam boilers, reducing firewood use by 15%
• Planting of trees around 100 acres every year

Social Achievements

• Supporting an orphanage and public medical scheme
• Association with United Nilgiri Conservative Society (UNCS) for community development

Governance Achievements

• Robust risk management system in place
• Vigil mechanism and Sexual Harassment of Women at Workplace policy implemented

Climate Goals & Targets

Environmental Challenges

• Extended dry period and very low rainfall impacting crop yield
• Unpredictable monsoon, increasing wages and input costs affecting profitability

Mitigation Strategies

• Increased organic tea cultivation to improve margins
• Focus on specialty teas with better prices
• Expansion at Korakundah factory to increase organic tea production capacity

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Inadequate rainfall, drought, frost

Opportunities

• Increased demand for organic tea in export market

Reporting Standards

Frameworks Used: Rain Forest Alliance, UTZ

Certifications: Rain Forest Alliance, UTZ

Sustainable Products & Innovation

• Organic tea

Awards & Recognition

• Four awards at the Golden Leaf India Awards

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Rural development and tribal welfare
• Employee welfare

Environmental Achievements

• Certified by the Rain Forest Alliance and UTZ in the area of environmental protection.
• Planted trees around 100 acres every year.

Social Achievements

• Supported an orphanage and a public medical scheme.
• Associated with United Nilgiri Conservative Society (UNCS) for community development works.

Governance Achievements

• Robust risk management system in place.
• Vigil mechanism and Sexual Harassment of Women at Workplace policy implemented.

Climate Goals & Targets

Environmental Challenges

• Lower crop production due to untimely and uneven rainfall.
• Scanty rainfall at the beginning of the year impacting crops in the current financial year.

Mitigation Strategies

• Expansion completed at Korakundah factory for certified organic leaf manufacturing.
• Focus on cost control through newer technologies in cultivation and mechanization.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Vagaries of monsoon

Opportunities

• Good demand for organic tea in the export market
• Focus on specialty teas

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Rural development and tribal welfare
• Employee welfare

Environmental Achievements

• Certified by the Rain Forest Alliance and UTZ in the area of environmental protection.
• Planting of trees around 100 acres every year.

Social Achievements

• Supporting an orphanage and a public medical scheme.
• Association with United Nilgiris Conservation Society (UNCS) for community development.

Governance Achievements

• Robust risk management policy and system.
• Internal Complaints Committee constituted as per the Sexual Harassment of Women at Workplace Act, 2013.

Climate Goals & Targets

Environmental Challenges

• Drought affecting tea production.
• Covid-19 pandemic impacting labor availability.
• Covid-19 disruptions affecting income from let-out property.

Mitigation Strategies

• Scaled up production of high-value teas to improve price realization.
• Exploring newer markets to increase organic tea exports.
• Implementing various measures for employee welfare beyond government stipulations.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Changes in climate affecting productivity

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Rural development and tribal welfare
• Community development
• Employee welfare

Environmental Achievements

• Planting of trees covering about 100 acres every year to ensure environmental protection and sustainable source of firewood to our factories.
• Rain Forest Alliance certification in the area of environmental protection.

Social Achievements

• Supporting the public medical scheme administered by the Company in the area of rural development and tribal welfare.
• Association with United Nilgiri Conservation Society (UNCS) for community development work.
• Cordial industrial relations.

Governance Achievements

• Robust risk management policy and system.
• Vigil mechanism in place.
• Internal Complaints Committee constituted to redress the grievances of women at workplace.

Climate Goals & Targets

Environmental Challenges

• Absence of summer showers leading to drought-like conditions in tea plantations.
• Increases in labour and other costs.
• Weather conditions impacting green leaf production.
• Market demand and competition.
• Government regulations impacting operations.

Mitigation Strategies

• Focus on enhancing production of high-quality teas.
• Strict cost control measures.
• Mechanization measures.
• Scaling up production of high-value teas (organic and conventional).
• Introduction of new buyers in export and domestic markets.
• Adequate internal control systems strengthened by an internal audit function.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Drought-like conditions due to absence of summer showers