Climate Change Data

NACL Industries Limited

Climate Impact & Sustainability Data (2021-22, 2023-24)

Reporting Period: 2021-22

Environmental Metrics

ESG Focus Areas

  • Environment
  • Health & Safety
  • Social
  • Community Engagement

Environmental Achievements

  • Adopting new technologies to reduce energy consumption and carbon footprint
  • Increase in operational efficiencies through better systems and practices
  • Srikakulam plant received “Environment Clearance” to more than double its manufacturing capacity
  • All plants are IMS (Integrated Management Systems) accredited for QEHS
  • Plants at Srikakulam and Ethakota are ZLD (Zero Liquid Discharge) plants

Social Achievements

  • Strengthened outreach programs and collaborations to engage with the underserved
  • Ethakota unit awarded ‘Safety Award’ three years in a row
  • Srikakulam Plant received the CII Andhra Pradesh Industrial Safety Leadership Award
  • Zero accidents in plants this year
  • Regular medical check-ups for employees

Governance Achievements

  • Strong and time-tested ties with MNCs
  • Company is professionally run by an experienced leadership team, and managed by a strong board staffed with industry veterans
  • All manufacturing plants are certified in terms of quality, environment, health and safety

Climate Goals & Targets

Environmental Challenges

  • Raw material reliance and supply chain disruptions
  • Distribution concentration in major agricultural regions
  • Low R&D investment in the industry
  • Lack of testing infrastructure
  • Spurious products
  • Ineffective distribution systems
Mitigation Strategies
  • Capacity enhancement projects in Gujarat and Andhra Pradesh
  • Strengthening long-term relationships with retailers, corporate customers, and farmers
  • Intensifying R&D activities for widening its product portfolio
  • Sustainable manufacturing practices
  • Digital initiatives like the Krishi Kalyan App

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

  • Greentech Environment Silver Award
  • Suraksha Puraskar Award
  • SAFETY AWARD (Ethakota Unit)
  • CII Andhra Pradesh Industrial Safety Leadership Award
  • Andhra Pradesh Industry Champion Award 2021
  • Responsible Care® certification

Reporting Period: 2023-24

Environmental Metrics

Total Carbon Emissions:46,303.64 tCO2e/year (Scope 1) and 24,316.28 tCO2e/year (Scope 2)
Scope 1 Emissions:46,303.64 tCO2e/year
Scope 2 Emissions:24,316.28 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:0%
Total Energy Consumption:600,265.95 MWh/year
Water Consumption:2,02,607.00 m3/year
Waste Generated:6182.921 tons/year
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environment
  • Social
  • Governance
  • Sustainability

Environmental Achievements

  • Optimized Zero Liquid Discharge (ZLD) systems, reducing energy consumption by 15% and eliminating the need for additional chemicals.
  • Adoption of the 4R approach (Reduce, Recycle, Reuse, and Recover) to minimize waste and maximize resource efficiency.
  • Significant strides in adopting energy-efficient technologies, resulting in a 50% cost savings and reduced carbon emissions.
  • Implementation of water harvesting systems at all sites for reuse.

Social Achievements

  • Conducted comprehensive health check-ups before employment.
  • Established robust protocols to manage mass medical emergencies.
  • 428 training programs conducted, including skill development, behavioral training, leadership training, and emotional well-being sessions.
  • Various employee engagement initiatives, including cultural and recreational activities, long service awards, and children’s academic excellence awards.

Governance Achievements

  • Successfully implemented the Responsible Care 7 Codes of Management Practices across all sites.
  • Secured recertification of the RC Logo from the Indian Chemical Council (ICC) for another three years.
  • Adequate internal financial controls commensurate with the size and complexity of its operations.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Increase renewable energy utilization by 30% by 2030
  • Reduce GHG/CO2 emissions by 30% by 2030
Short-term Goals:
  • Reduce water consumption by 20% by 2030
  • Reduce specific energy consumption by 30% by 2030
  • Reduce waste to landfill & incineration by 50% by 2030

Environmental Challenges

  • Global economic uncertainties, geopolitical tensions, and industry-specific adversities.
  • Reduced demand from multinational corporations (MNCs) amid global economic challenges and droughts.
  • Reduced demand for fungicides due to favorable weather conditions.
  • High-priced inventory and continuous price declines in the agrochemical industry.
  • Increased production and oversupply from China exerting downward pressure on prices.
  • Adverse climatic conditions and uneven rainfall negatively impacting domestic demand.
  • Complexity and delays associated with the registration process for new molecules.
  • Fluctuating raw material prices and high production costs.
  • Absence of a reliable contract manufacturing framework.
  • Safety and health concerns due to improper handling of hazardous chemicals.
  • Environmental impact of agrochemical production and use.
  • Negative perceptions among consumers and farmers hindering the adoption of agrochemical products.
  • Competition from imported agrochemicals.
Mitigation Strategies
  • Strategic initiatives, including enhanced field marketing, new product launches, focused key account management, supportive trade policies, and a strengthened sales and marketing team.
  • Developing dual growth engines: continuing the Key Accounts business and building a portfolio of registrations with national importers.
  • Implementing initiatives aimed at energy conservation, effluent reduction, and cost savings.
  • Debottlenecking and enhancing productivity at the Ethakota formulation unit.
  • Investing in emission reduction processes and technologies.
  • Shifting from High Carbon Intensive Fuel to Low Carbon Intensive Fuels, adopting Renewable Energies.
  • Implementing stricter safety protocols, enhanced training programs for workers and farmers, and improved access to protective equipment.
  • Adopting air and water pollution control measures.
  • Educating stakeholders on proper usage techniques and promoting sustainable practices.
  • Strengthening local manufacturing capabilities and increasing import duties on agrochemicals.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Stringent quality standards and evaluation processes for raw materials.
  • Regular supplier evaluation and training.
  • Focus on Resource Conservation, efficient reaction engineering.

Climate-Related Risks & Opportunities

Physical Risks
  • Erratic weather patterns, including unpredictable rainfall and temperature fluctuations.
Transition Risks
  • Changing environmental regulations
Opportunities
  • Investing in emission reduction processes and technologies.

Reporting Standards

Frameworks Used: GRI, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, NABL

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Suraksha Puraskar Award
  • Greentech Environment Silver Award
  • SAFETY AWARD
  • Best Management Award
  • CII National Award in Water Management
  • Andhra Pradesh Industry Champion Award 2021
  • Agri-Business Summit Agri (ABSA) award 2022
  • Best Safety Performer Award -2023
  • 8th CII National Kaizen Circle Competition 2024 Award
  • Special Appreciation Award from ISTD for L&D
  • Gold Award at the QCFI Surat Chapter Safety Convention 2024