Climate Change Data

Lotte India Corporation Limited

Climate Impact & Sustainability Data (2013, 2014, 2018-04 to 2019-03, 2019-20)

Reporting Period: 2013

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:6,149,769 Units (Electricity Purchases)
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Conservation of Energy
  • Water Conservation
  • Corporate Social Responsibility

Environmental Achievements

  • Achieved significant cost reduction through energy and water conservation measures at manufacturing facilities.

Social Achievements

  • Not disclosed

Governance Achievements

  • Constituted a Corporate Social Responsibility committee in compliance with Section 135 of the Companies Act, 2013 and Companies (Corporate Social Responsibility) Rules, 2014.

Climate Goals & Targets

Long-term Goals:
  • Constructing a new factory at IMT, Rohtak, Haryana (operational in 2015)
Medium-term Goals:
  • Investing in brand building to drive growth
  • Strengthening distribution network in urban and rural areas
Short-term Goals:
  • Good growth in sales of products

Environmental Challenges

  • Single segment dependence
  • Price point sensitivity
  • Volatile raw material prices
  • Stiff competition from other organized players
Mitigation Strategies
  • Measures to broaden product portfolio and varied price point offerings
  • Steps to source raw materials in bulk at predetermined rates
  • Planning to import new products from Korea

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Not disclosed

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed

Reporting Period: 2014

Environmental Metrics

Total Energy Consumption:7,697,010 Units (Electricity Purchases)

Environmental Achievements

  • Through various measures for Conservation of Energy and Water at its manufacturing facilities at Nellikuppam and Nemam, the Company has achieved significant cost reduction.

Governance Achievements

  • The Company has in place Anti-Sexual harassment Policy in line with the requirements of the Sexual harassment of women at work place (Prevention, Prohibition and Redressal) Act., 2013 and all employees (Permanent, Contractual, Temporary, Trainees) are covered under this policy.
  • No instance of sexual harassment of women was reported to the Internal Complaints Committee constituted under the above Act.

Climate Goals & Targets

Short-term Goals:
  • The Company expects good growth in sale of its products in the short term.
  • investing in brand building in both short term and medium term to drive growth.
  • strengthening its distribution network both in urban and rural areas to drive growth.

Environmental Challenges

  • single segment dependence, price point sensitivity, volatile raw material prices and stiff competition from other organized players
Mitigation Strategies
  • measures to broad base its product portfolio varied price point offerings
  • various steps to source the raw materials in bulk at predetermined rates
  • planning to import new products from Korea

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Period: 2018-04 to 2019-03

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Not disclosed

Environmental Achievements

  • Utilised wind power partially at Nemam & Nellikuppam factories and Head office, saving around Rs.43 lakhs during the year 2018-19.
  • Generated 1,37,550 lakhs units of Solar power at Rohtak factory, resulting in cost saving of around Rs. 9.67 lakhs.
  • Optimized energy efficiency level of cooling tower, saving 57,600 units and resulting in cost saving of around Rs. 4.03 lakhs/annum.
  • Installed time intervals for the stirrer motor for Chocolate tank, saving 1,72,800 units and resulting in cost saving of Rs.8.16 lakhs.
  • Installed interlocking dust collector motors with flour blower operation, saving 18427 units and resulting in cost saving of Rs.1.29 lakhs.

Social Achievements

  • Entered into a MoU with Child Rights and You (CRY) for establishing Child Resource Centre in Salem District of Tamilnadu. The estimated project cost is about Rs. 6.05 lacs.

Governance Achievements

  • Not disclosed

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Launch of few products at Rs. 5, Rs. 10 price points in 2019-20.

Environmental Challenges

  • Increasing competition in the confectionery market with local and unorganized players.
  • Increased cost of raw materials (Wheat Flour, Vegetable fat, Desiccated coconut) despite marginal decrease in prices of Sugar and Chocomass.
  • Impact of interest on ECB loan obtained for investment at Rohtak and depreciation on this project.
Mitigation Strategies
  • Effective cost management and effective utilization of common resources.
  • Increase sales in Exports / focus markets.
  • Focus on increasing the sale of higher price point products and products with higher margin.
  • Increase in sale of new product variants in the existing brands.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Not disclosed

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: Ind AS

Certifications: Null

Third-party Assurance: Price Waterhouse Chartered Accountants LLP

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed

Reporting Period: 2019-20

Environmental Metrics

Environmental Achievements

  • Utilised wind power partially at Nemam & Nellikuppam factories and Head office, saving around Rs 59.17 lakhs during the year 2019-20.
  • Generated 1.36 lakhs units of Solar power at Rohtak factory, resulting in cost saving of around Rs. 8.6lakhs.
  • Optimized the energy efficiency level of cooling tower, saving 53440 units and resulting in cost saving of around Rs. 3.74 lakhs/annum.
  • Installed time intervals for the stirrer motor for Chocolate tank, saving 1,16,640 Units and resulting in cost saving of Rs. 8.2 lakhs.
  • Installed interlocking dust collector motors, saving 18,060 units and resulting in cost saving of Rs. 1.26 lakhs.

Social Achievements

  • Contributed about Rs.3.00 lakhs to Tiruvallur District Administration and Rohtak District Administration to procure masks, food items, beds, medicines to treat Covid-19.

Climate Goals & Targets

Short-term Goals:
  • Building business contributions in the Gifting space with new launches lined up in Oct-Dec 2020.
  • Launching high value confectionery @ Rs. 10 price point under Coffy Bite brand name in Aug 2020.
  • Launching a premium variant under Lotte Chocopie in Sep 2020.

Environmental Challenges

  • Prices of Skimmed Milk Powder, Glucose,Wheat Flour and other materials increased marginally.
  • Impact of interest on ECB loan obtained for investment at Rohtak.
  • Impact of depreciation cost associated with Rohtak factory, operating near break-even.
  • Increasing competition in the market.
  • Business affected during March 2020 due to nationwide lockdown.
Mitigation Strategies
  • Effective cost management and effective utilization of common resources.
  • Increase sales in Exports / focus markets.
  • Focus on increasing the sale of higher price point products and products with higher margin.
  • Increase in sale of new product variants in the existing brands.
  • ECB refinancing during the year.

Supply Chain Management

Climate-Related Risks & Opportunities