Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Risk management framework
• Compliance
• Supplier assessment
• Community development
• Environmental care
• Value creation
• Talent management
• Technology and digital transformation
• Research and development

Environmental Achievements

• 22% Decrease in freshwater consumption since FY 2019-20
• <5% Waste going to landfill
• 5% Decrease in greenhouse gas (GHG) emissions from FY 2015-16
• 94% Recycled water consumed
• 5.60 MW Solar power generation capacity as of March 2021
• Gold-rated green building award (for Alwar Wire Plant and Ghiloth AC Manufacturing Plant)

Social Achievements

• India Top 50 – Best Companies to Work For 2020 Recognition by Great Place to Work
• 50% Reduction in lost time injury frequency rate (LTIFR) (from FY 2019-20)
• 32,000+ Hours of training imparted for skill development, health and safety, etc.
• 60,000+ Beneficiaries of CSR-Sanitary pads distribution initiative
• 3,00,000+ Meals distributed through local government’s food initiative for the underprivileged groups of the society

Governance Achievements

• 69 DJSI* score (industry average is 41)
• Ranked among the top 10 in DJSI rating
• 7th Global DJSI rank for FY 2020-21 in our sector
• Debuted in the S&P Global’s Yearbook

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting socio-economic developments globally
• Supply disruptions
• Uncertainty in material availability
• Unpredictable lead time
• High price volatility

Mitigation Strategies

• Agile, nimble and pragmatic approach to the pandemic
• Focus on employee, dealer, and stakeholder safety
• Online townhalls and communication
• Cash buffers through bank borrowings and cost reduction
• Cross-functional teams for efficiency improvement
• Robotic Process Automation (RPA) software implementation
• Digitalisation for productivity benefits
• Truncated non-critical capital expenditure
• Facilitated MSME suppliers with easy financing

Supply Chain Management

Supplier Audits: 130+ new suppliers assessed virtually

Responsible Procurement

• Supplier Code of Conduct
• Sustainability assessment
• Vendor due diligence
• Localisation drive to reduce import dependency
• Support for MSME suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards Comprehensive option

Certifications: ISO 14001, ISO 50001, OHSAS 18001/ISO 45001

Third-party Assurance: KPMG India

Sustainable Products & Innovation

• Refrigerator with Bactshield technology
• Energy-efficient water heaters
• IoT-integrated home appliances
• Smart lighting products
• Anti-bacterial switches
• Intelli-Logic Air Conditioners

Awards & Recognition

• Gold Certified Green Buildings by IGBC (Alwar Wire Plant and Ghiloth AC Manufacturing Plant)
• 10th CII Design Excellence Awards 2020
• India Design Mark award
• India’s Top 50 – Best Companies to Work For 2020
• Best Employer by Employers’ Association of Rajasthan

Environmental Metrics

ESG Focus Areas

• Climate Change
• Supply Chain Sustainability
• Talent Management
• Diversity & Inclusion
• Human Rights
• Responsible Technology Use

Environmental Achievements

• Mitigated 8134 tCO2 in FY2022 through decarbonization program
• Doubled solar capacity (MWp) from 3.35 to 5.69 between FY2018 and FY2022
• Increased green cover through tree plantation
• 47% of freshwater recycled
• >95% of non-hazardous waste reused & recycled
• <3% of waste to landfill

Social Achievements

• Great Place to Work certified for 3 consecutive years
• 8 roles filled through internal job posting in FY2022
• Employee satisfaction index of 4.29 out of 5 in 2021-22

Governance Achievements

• Board committees monitor and review sustainability strategy and climate action plan
• ESG KPIs included in performance-linked compensation for senior management
• Reconstituted CSR committee to address broader ESG agenda
• ISO 27001 certified Information Security Management System (ISMS)

Climate Goals & Targets

Environmental Challenges

• High temperatures at plant locations impacting operations
• Water unavailability impacting manufacturing
• Potential for flooding and other climate-related events
• Transition risks associated with Net Zero targets (increased capital investment, carbon taxes)
• Risks associated with product reclaim due to unorganized value chain
• Regulatory non-compliance risk related to product reclaim
• Reputational risk related to product reclaim
• Adverse environmental impact due to lack of awareness on disposal methodology

Mitigation Strategies

• Installed high-efficiency fans for superior cooling
• Monitored water cycle and implemented water conservation initiatives
• Carried out dependency assessment on plant sites and explored alternate production plans
• Systematic transition to low-carbon technology
• Switching to renewable energy
• Increased R&D spend on energy efficiency, durability, and recyclability
• Increased green cover through CSR initiatives
• Including circularity principles in design phase
• Investment in R&D to enhance use of sustainable materials
• Working with reprocessing agents and firms
• Phasing out materials without recycling solutions

Supply Chain Management

Responsible Procurement

• ESG parameters screening for new suppliers
• ESG audit systems for existing and critical suppliers
• Focus on energy and emission management
• Localization drive to increase domestic spend

Climate-Related Risks & Opportunities

Physical Risks

• High temperatures
• Water unavailability
• Flooding

Transition Risks

• Increased capital investment
• Carbon taxes

Opportunities

• Growth in solar products and rooftop solar solutions
• Energy-efficient and water-efficient product portfolio

Sustainable Products & Innovation

• Solar products
• Energy-efficient and water-efficient products

Awards & Recognition

• FTSE4Good Index Member
• DJSI 7th Rank Globally
• Sustainability Yearbook Member 2022
• CRISIL Rating Strong
• MSC Top 20 Sustainable Companies
• ICSI CSR Awards Top ESG Company in Electrical Sector
• CII Innovation Awards
• National Energy Conservation Award (Fan & Water Heater)

Environmental Metrics

ESG Focus Areas

• Environmental Performance
• Governance Structure and Responsibilities
• Social Performance
• Sustainable Supply Chain Management
• Sustainable Product Stewardship
• Biodiversity Management
• Climate Risk Assessment and Mitigation

Environmental Achievements

• 2,139 MWh Energy Saving through 40+ energy saving initiatives
• Zero Non-Hazardous Waste to Landfill
• <1.3% Total Hazardous waste to Landfill
• 9470 MWh Total Renewable energy Generation
• 307 MWh Renewable Energy generated from food waste to biogas plant
• Achieved 100% target to Collect and recycle 5837 MT E-waste through EPR Program
• Achieved 100% target to Collect and recycle 3617 MT Plastic waste through EPR Program
• Total 1711 CO2e Mt Mitigation in FY 2022-23 Through energy saving
• Total 7331 CO2e Mt Mitigation through solar generated Energy in FY 2022-23
• Transition to PNG from HSD at the process level (furnace) which will offset ~550 MT of CO2 in FY 23-24

Social Achievements

• Inaugurated one of biggest brand stores pan India which is 100% managed and run by female staff at Bhubaneshwar
• At our newly commissioned plant in Sri City, we are targeting to run the entire operations by 100% female workers
• 10.4% roles were filled through Internal job posting
• Employee turnover rate stands at 15.9%
• 8.54 Man-hours of training per person per annum

Governance Achievements

• Reconstituted CSR committee to address the broader agenda of ESG along with its CSR responsibility
• ESG related KPIs have been identified for the process of inclusion of ESG metrics in performance-linked compensation measurement of senior management
• Organization’s governance around material ESG aspects including climate-related risks and opportunities is disbursed through two Board level committees

Climate Goals & Targets

Environmental Challenges

• Climate Change: Regulatory risk, supply chain disruption, rapid transition to low-carbon technology
• Product Reclaim: Regulatory non-compliance risk, reputational risk, adverse environmental impact

Mitigation Strategies

• Improve carbon footprint, switch to renewable energy, increased R&D spend, increase green cover, include principles of circularity in design, increased investment in R&D, work with reprocessing agents, phase out materials without recycling solutions

Supply Chain Management

Supplier Audits: 266 Suppliers with 84% of Domestic BOM spend are covered under ESG Framework

Responsible Procurement

• ESG audit systems for existing and critical suppliers
• All new suppliers are screened on ESG parameters

Climate-Related Risks & Opportunities

Physical Risks

• High temperature at plant location
• Water unavailability
• Location of plants

Transition Risks

• Rapid transition to low carbon trajectory

Opportunities

• Solar Portfolio
• Energy efficient and water efficiency product portfolio

Sustainable Products & Innovation

• Alkaline water purifier with 50% wastewater recovery
• Energy efficient BLDC motor technology
• Efficiencia Neo (lowest energy consuming Fan)
• Stealth puro air I (fan with air purification)
• Amaya (energy efficient 5 Star rated fan)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced diesel consumption by 45.7% (from 2.23 million liters to 1.02 million liters)
• Achieved <0.99% waste going to landfill (Zero Waste to Landfill target)
• Completed 100% Scope 3 emissions inventorisation

Social Achievements

• Increased share of women in the workforce to 13.03%
• Increased share of women in management positions to 13%
• Increased share of women in STEM roles to 13%

Governance Achievements

• Established ESG KPIs for senior management performance-linked compensation
• Expanded CSR committee to address broader ESG and CSR responsibilities
• Implemented robust ESG risk assessment and mitigation plan

Climate Goals & Targets

Environmental Challenges

• High temperature at plant locations impacting operations and workforce well-being
• Water unavailability impacting manufacturing processes
• Potential risks of flooding and other force majeures due to climate change
• Transition risks due to India's Net Zero target, including increased capital investment and potential carbon taxes
• Risks related to product reclaim due to an unorganized value chain
• Sustainable sourcing and vendor management risks leading to supply chain disruptions and reputational damage
• Water stewardship risks including scarcity, quality issues, and regulatory compliance

Mitigation Strategies

• Installed high-efficiency fans for superior cooling
• Periodically monitor water cycle and implement water conservation initiatives
• Carried out dependency assessment on each plant site to reduce risk due to single location dependency
• Switching to renewable energy, working with government bodies to facilitate Net Zero transition
• Increased R&D spend on improving energy efficiency, durability and recyclability of products
• Increase Green cover of India through CSR initiatives
• Include principles of circularity in design phase
• Increased investment in R&D to enhance use of non-virgin, sustainable, non-hazardous materials
• Work with reprocessing agents and firms in value chain
• Phase out materials without recycling solutions
• Assessing vendor’s ESG performance and risk profile
• Implementing sustainable procurement practices
• Diversifying supplier base
• Monitoring material quality and availability
• Ensuring compliance with regulations
• Conducting water footprint assessment
• Implementing water-efficient practices
• Engaging with stakeholders on water conservation
• Monitoring water quality and pollution
• Ensuring compliance with water-related regulations

Supply Chain Management

Supplier Audits: 262 suppliers (84% of Domestic BOM spend) covered under ESG Framework

Responsible Procurement

• Vendor Code of Conduct and Green Supply Chain Policy
• ESG assessment for all new suppliers
• ESG audits for existing and critical suppliers

Climate-Related Risks & Opportunities

Physical Risks

• High temperature
• Water unavailability
• Flooding

Transition Risks

• Regulatory changes (carbon tax)
• Supply chain disruptions
• Rapid transition to low-carbon technology

Opportunities

• Solar portfolio growth
• Energy-efficient and water-efficient product portfolio

Sustainable Products & Innovation

• Solar products
• Energy-efficient products
• Water-efficient products
• Products with circularity principles

Awards & Recognition

• Great Place to Work
• Gold Award in QC Competition
• Kaizen Competition Awards
• Best Solution to Problem Award -CII QC Chandigarh
• Special Award Winner in CII Uttarakhand