Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety, Health, Environment and Quality
• Corporate Social Responsibility (CSR)
• Human Resources

Environmental Achievements

• Upgraded Environment Management System to meet revised standards of ISO 14001:2015
• Installed solar power systems at its head office
• Recycles > 95% packing material at all plants
• 100% food waste is composted at the plant and used in landscape fertilization
• 100% sewage water is treated and reused for landscaping at the plant

Social Achievements

• Chembond Children’s Centre provides education to economically underserved sections, especially girls
• Harmonious employee relations in all plants
• Tied up with educational institutes for campus recruitment
• Learning & Development initiatives focused on enhancing key competencies
• Employee engagement programs (Diwali functions, sports, events, etc.)

Governance Achievements

• Implemented Internal Financial Control (IFC) framework
• Periodic review by Management and Audit Committee
• Independent Internal Audit by Chartered Accountants
• Directors voluntarily took a 25% deduction in remuneration

Climate Goals & Targets

Environmental Challenges

• Weakening macroeconomic conditions
• Slowing market growth
• COVID-19 outbreak
• Increased competition from global companies
• Environmental regulations and public perception of the chemical industry
• Threats from low-cost manufacturers and automated processes
• Cost of compliance
• Recession in Biotech Animal Health and Nutrition business due to adverse effects on rural economy, disruptive weather, and high feed cost
• Negative growth in Sealants and Industrial Coatings businesses due to decreased passenger vehicle sales

Mitigation Strategies

• Cautious expansion strategy
• Tight credit controls
• Selective customer choices
• Consolidating poultry business and expanding in the dairy segment
• Adjustments to strategy to soften the impact from construction activity disruptions
• In-house R&D for new product development, backward integration, quality improvement, and cost reduction
• EHS audits to ensure framework protocol and regulatory compliances
• Considers regulatory requirements as a source of competitive advantage
• Diversified revenue generating sources into various sectors with strong domestic demand

Supply Chain Management

Responsible Procurement

• Safety and environment awareness training for some raw material suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Ind AS

Certifications: ISO 9001:2015, IATF 16949:2016, OHSAS 18001:2007, ISO 14001:2015

Third-party Assurance: Bathiya & Associates LLP

Sustainable Products & Innovation

• Concrete admixtures and curing compounds
• Cooling water treatment chemicals
• Material treatment chemicals

Environmental Metrics

ESG Focus Areas

• Environmental, Health and Safety (EHS)
• Corporate Social Responsibility (CSR)
• Human Resources
• Research & Development

Environmental Achievements

• Implemented Environment Management System to meet ISO 14001 standards
• Installed solar power systems at its head office
• Recycles >95% packing material at all plants
• 100% food waste composted and used in landscape fertilization
• 100% sewage water treated and reused for landscaping

Social Achievements

• Chembond Children’s Centre provides education to economically underserved sections, especially girls
• Maintained harmonious employee relations
• Introduced customized digital automated HR software
• Focused on online Learning & Development initiatives
• Provided masks and dry ration kits to needy families during the pandemic

Governance Achievements

• Implemented Internal Financial Control (IFC) framework
• Conducted EHS audits periodically
• Adheres to and strives to exceed changing regulatory compliance requirements
• Established a Whistle Blower Policy
• Complied with applicable Secretarial Standards

Climate Goals & Targets

Environmental Challenges

• Global companies investing in India increases competition
• Chemical companies are affected by environmental regulations and public perception of the industry
• Supply chain disruptions due to the pandemic
• Threats from low-cost manufacturers and introduction of automated processes
• Cost of compliance makes operations uneconomical and inviable
• Covid-19 pandemic impacted business operations and revenue

Mitigation Strategies

• Tailoring solutions and products to Indian conditions
• In-house research centre and technical expertise helps develop solutions for customers
• Seeking alternate sources for chemicals
• Improving operational efficiencies
• Expanding and driving growth in products for the dairy industry
• Working with OEMs for price increases
• Focussing energies on broad basing presence and expanding solution offerings

Supply Chain Management

Responsible Procurement

• Safety and environment awareness training imparted to some raw material suppliers

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Environmentally friendly products for surface treatment
• Sealants and specialty coatings for automotive
• New probiotics

Awards & Recognition

• Frost & Sullivan Best Practices Award - The 2020 Indian Water Treatment Chemicals Company of the Year

Environmental Metrics

ESG Focus Areas

• Environmental, Health, and Safety (EHS)
• Corporate Social Responsibility (CSR)
• Human Resources
• Risk Management
• Supply Chain

Environmental Achievements

• Installed solar power systems at its head office
• Reduced energy consumption at its plants and offices by improving energy-intensive manufacturing processes
• Recycles >95% packing material at all plants
• 100% food waste composted and used in landscape fertilization
• 100% sewage water treated and reused for landscaping

Social Achievements

• Maintained harmonious industrial/employee relations throughout the year, with no man-days lost due to industrial/employee actions
• Focused on training and development to enhance employee capabilities
• Chembond Children’s Centre provides education to economically underserved sections, especially girls
• Company sources food for its personnel at some of its locations from communities surrounding the location

Governance Achievements

• Implemented Internal Financial Control (IFC) framework
• Periodic review of internal control systems by an independent firm of Chartered Accountants and periodic review by Management
• Adopted a Dividend Distribution Policy
• Established a whistleblower policy

Climate Goals & Targets

Environmental Challenges

• Strained supply chain and unprecedented margin pressure due to the Covid-19 pandemic
• Unprecedented increase in input prices, logistics costs, and forex volatility
• Decrease in fair valuation of investment
• Raw material unavailability and material cost increases in the Construction Chemicals business
• Muted demand for Construction Chemicals for part of the year
• More than 30% increase in animal feed cost in the Animal Health business
• Lower exports in the Paint Booth products business

Mitigation Strategies

• Fulfilled all customer contracts and commitments despite supply chain challenges
• Maintained tight control on product margin and reduced overheads and some direct costs in Construction Chemicals
• Successful growth driver strategies in Animal Health
• Efforts to improve profitability in Coatings and Automotive Sealants
• Efforts to increase export business and domestic presence in Paint Booth products

Supply Chain Management

Responsible Procurement

• Sustainable sourcing initiatives (work-in-progress)
• Safety and environment awareness training for some raw material suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Climate change resulting in commodity price volatility

Transition Risks

• Stricter environmental regulations

Opportunities

• Development of energy-efficient products
• Government incentives for setting up sourcing/manufacturing companies within the country

Sustainable Products & Innovation

• Environmentally friendly products for surface treatment
• Sealants and specialty coatings for automotive
• New probiotics and improved fermentation and downstream processes in Biotech