Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Supplied more than 2,00,000 FRP doors thereby saving more than thousands of trees
• Supplied more than 2,500 Bio Toilets to households helping reduction to open defecation

Social Achievements

• Actively contributing to wastewater recycling through its solution in Sewage Treatment Plants (STP) and Effluent Treatment Plants (ETP)

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Loss of any one or more of our major clients would have a material effect on our business operations and profitability
• Dependence on third party transportation providers for the delivery of our products
• Cost of production is exposed to fluctuations in the prices of raw materials
• Dependence on third party service providers to whom we outsource manufacturing of bio-digester tanks
• Negative cash flows from its operating activity, investing activity and financing activity
• Reliance on our Promoter and Directors for the functioning of the company
• Immovable properties used by us are on lease and leave and license basis
• Failure to protect our intellectual property
• Repayment of certain loan facilities availed from our Director from the IPO Proceeds
• Availed unsecured loan from our Directors/Promoters which is repayable on demand
• Manufacturing activities are labour intensive and depend on availability of skilled and unskilled labourers
• Orders placed by customers may be delayed, modified, cancelled or not fully paid for
• Potential conflict of interests between our company and other venture or enterprises promoted by our promoter or directors
• Business is dependent on our operating facilities
• No alternate arrangements for meeting our regular working capital requirements
• Insurance coverage may prove inadequate to satisfy future claims
• Changes in technology may render our current technologies obsolete
• Competition from organized and unorganized players
• Failure to accurately forecast demand
• Related party transactions
• Outbreak of COVID-19
• Broad discretion in how we apply the Net Proceeds
• Future issuance of Equity Shares may dilute your shareholding

Mitigation Strategies

• Adding high value new clients through Aqua Division
• Tie up with reputed logistic partners for seamless operations in future
• Company will take precautions to minimize the risk of any significant operational problems at our facilities
• Proposed repayment of loans will improve our debt-equity ratio
• Company will continuously monitor the economic conditions and have outlined certain measures to combat the pandemic situation and to minimize the impact on our business
• Company will focus on strengthening its local presence in Goa and creating new distribution channels in non-penetrated geographies
• Company will leverage its business platform and tie up with Business Associates/Distributors throughout India
• Company will focus on increasing growth in the export markets
• Company will continue to train and empower its employees
• Company will increase its touch points and engagement with customers through various digital and technology initiatives
• Company will develop a strong supply chain for other products
• Company will have multiple suppliers for each item with close communication & collaboration

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: ISO 9001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• FRP doors
• Bio Digester toilets
• Sewage Treatment Plants (STP)
• Effluent Treatment Plants (ETP)

Awards & Recognition

• National Award for Outstanding Efforts in Entrepreneurship in MSEs (Manufacturing)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Earthood has been ranked as the “Best Verification Company” by Environmental Finance in the Voluntary Carbon Market Rankings 2023 and 2024

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Heavy dependence on carbon verification and validation business in the voluntary carbon market.
• Declining revenues from regulatory carbon market due to the transition from Clean Development Mechanism (CDM) to Article 6.4 mechanism under the Paris Agreement.
• Changes in global climate policies.
• High employee attrition rate.
• Concerns over carbon credit integrity and greenwashing.
• Volatility in carbon credit pricing.
• Lack of listed industry peers in India.
• Past instances of incorrect filings with the Registrar of Companies and other non-compliances under the Companies Act.
• Lack of a single, universally accepted standard for verification methodologies in the voluntary carbon market.
• Dependence on information technology systems.
• Potential termination, modification, or unfavorable interpretation of Double Taxation Avoidance Agreements (DTAA).
• Risks associated with expansion into new geographic regions.
• Dependence on few customers for a portion of revenue.
• FEMA related deficiencies in compliances.
• Risks associated with international operations (travel restrictions, visa issues, regulatory changes).
• Potential employee and customer misconduct.
• Safety and security risks for employees and third-party professionals in remote locations.
• Reliance on third-party professionals.
• Dependence on Promoters, Key Managerial Personnel, and Senior Managerial Personnel.
• Challenges in setting the cap level of emissions by carbon markets.
• Outstanding litigations.
• Related party transactions.
• Potential legal liability.
• Qualifications and emphasis of matter in Restated Consolidated Financial Statements.
• Lack of experience of Directors in listed companies.
• Potential conflicts of interest with subsidiaries and Group Company.
• Insufficient insurance coverage.
• Promoter's personal guarantee for debt facilities.
• Leasehold basis for Registered Office premises.
• Contingent liabilities.
• Inaccurate assessment of costs under new contracts.
• Inability to generate new service engagements or provide recurring services.
• Potential damage to reputation.
• Unregistered company logo.
• Requirement for licenses and registrations.
• Subsidiary's exposure to economic sanctions.
• Uncertainty in sales and marketing efforts.
• Potential inadequacy of internal controls and compliance systems.
• Long duration of projects and potential delay in revenue recognition.
• Failure to implement business strategy effectively.
• Conflicts of interest with other shareholders.
• Reliance on commissioned industry report.
• Uncertainty in dividend payments.
• Unappraised objects of the Fresh Issue.
• Non-GAAP financial measures.
• Potential for pre-emptive surveillance measures post-listing.
• Differences between Indian accounting standards and other accounting principles.
• Restrictions on third-party acquisition of control.
• Restrictions on exercising pre-emptive rights.
• Distribution and transfer restrictions on Equity Shares.

Mitigation Strategies

• Developing and deploying a novel technology infrastructure for digitizing the entire process of validating and verifying carbon projects using a Digital Monitoring Reporting & Verification (DMRV) system.
• Monitoring market trends, adapting to changing market conditions, regulatory frameworks and customer needs.
• Diversifying service offerings.
• Engaging with stakeholders to promote climate action and policy stability.
• Maintaining flexibility in operations.
• Implementing policies and procedures to ensure employee compliance.
• Conducting regular monitoring and maintaining robust internal controls.
• Purchasing travel insurance and providing training and emergency response plans.
• Implementing measures to mitigate risks associated with third-party professionals.
• Implementing measures to retain key personnel.
• Employing a data-driven and collaborative approach to establish a balanced cap level.
• Addressing outstanding litigations.
• Obtaining necessary approvals for related party transactions.
• Maintaining adequate insurance coverage.
• Implementing measures to accurately assess costs under new contracts.
• Implementing measures to generate new service engagements and maintain recurring services.
• Safeguarding service quality and reputation.
• Filing application for registration of logo.
• Obtaining and maintaining necessary licenses and registrations.
• Monitoring travel restrictions, visa policy changes and regulatory developments.
• Implementing measures to prevent employee and customer misconduct.
• Implementing measures to address challenges associated with international operations.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Accreditations from UNFCCC, GAB, and ANAB

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Earthlink (DMRV technology)

Awards & Recognition

• “Best Verification Company” by Environmental Finance