Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change
• Resource optimisation
• Corporate citizenship

Environmental Achievements

• 49% Reduction in GHG emissions intensity (Scope 1 & 2) against baseline of FY 2012-13
• 77% Reduction in use of Fossil fuel
• 32% Reduction in thermal energy intensity
• 84% Reduction in energy intensity (fuel and electricity)
• 28% Usage of renewable fuel for overall fuel requirement
• LEED Gold certification for Mumbai corporate office

Social Achievements

• More than 63,000 farmers benefited due to Farmer First initiative during last 4 years
• #IAmCapable campaign by Nihar Naturals reached more than 50,000 women
• Saffolalife initiative conducted over 46,000 Heart Fitness Tests

Governance Achievements

• Board of Directors comprises nine Directors, out of which eight are Non-Executive, and six are Independent
• Robust compliance tracking mechanism

Climate Goals & Targets

Environmental Challenges

• Climate change
• Resource scarcity
• Maintaining sustainable supply chains

Mitigation Strategies

• Improving process efficiency
• GHG emissions control
• Water conservation
• Sustainable procurement practices
• Collaboration with suppliers on bio-alternative materials and sustainable packaging

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable supply assurance
• Collaboration with suppliers on bio-alternative materials and sustainable packaging
• Farmer First program

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4 core guidelines (CORE OPTION)

Certifications: ISO 50001 (Baddi plant), ISO 14001 (majority of manufacturing locations), OHSAS 18001 (most manufacturing units), ISO 22000 (food processing units), ISO 22716 (cosmetics manufacturing)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• National Energy Conservation Award (2008, 2011)
• CII Water Conservation Award (2008)
• Environmental excellence by Greentech foundation (2009)
• CII Excellence in energy Management (2009)
• Kerala State Energy Conservation Commendation Award (2010)
• Greentech Foundation Environment Excellence Award (2010)
• Greentech Environment Silver Award (2011)

Environmental Metrics

ESG Focus Areas

• reducing environmental footprint
• increasing positive social impact
• increasing the number of sustainable initiatives
• reducing GHG emission intensity
• achieving water stewardship
• responsible sourcing

Environmental Achievements

• 79% of total energy requirement in operations were met through renewable sources
• Reduced furnace oil usage by 69% at Baddi unit
• Implemented 450kW solar roof-top project at Jalgaon unit
• 520 million litres increase in dam storage capacity through desilting

Social Achievements

• Imparted quality education to underprivileged children
• Trained Government school teachers in teaching pedagogy
• Equipped 20 government schools to run live digital classes
• Enabled anytime, anywhere learning through virtual schools
• Supported 786 farmer families through farm pond creation

Governance Achievements

• Appointed Mr. Sanjay Dube and Mr. Kanwar Bir Singh Anand as Additional Directors (Independent)
• Amended the Code of Conduct
• Improved dividend pay-out ratio over the last 5 years

Climate Goals & Targets

Environmental Challenges

• Muted volume growth of 1% in India business due to economic slowdown and COVID-19 lockdowns
• Uncertainty in commodity prices and supply impacting business margins

Mitigation Strategies

• Initiatives to improve energy efficiency across manufacturing locations
• Utilizing alternate sources of energy (renewable energy)
• De-risking of commodities and developing ‘designed to cost’ products

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, IIRC

Environmental Metrics

ESG Focus Areas

• Ethics, Transparency and Accountability
• Product Safety and Sustainability
• Employee Well-being
• Stakeholder Engagement
• Human Rights
• Environmental Protection
• Public Policy Influence
• Inclusive Growth
• Customer Engagement

Environmental Achievements

• Perundurai coconut oil manufacturing facility achieved carbon neutrality and GreenCo Platinum rating
• Reduced energy intensity by 58% and GHG intensity by 38% since baseline year
• Reduced water intensity by 51% since baseline year
• Introduced PCR-based shrink films in Parachute Coconut Oil products
• Collected and safely disposed of 1630 metric tonnes of multi-layered packaging waste

Social Achievements

• Supported 1 Lakh+ teachers in Madhya Pradesh ensuring continuous English education for millions of students
• Initiated skill development and economic empowerment program in association with UNDP
• Created 71.15 Crores litres of water storage potential through farm ponds
• Provided COVID-19 support including distribution of masks, PPE kits, and ventilators

Governance Achievements

• Established a Business Responsibility Report Committee to review performance annually
• Implemented a Code of Conduct and Marico Code of Business Ethics for employees and associates
• Established a Consumer Complaint Management system (ISO 10002 certified)

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: 38% of critical value chain vendors certified under SAMYUT program

Responsible Procurement

• SAMYUT responsible sourcing program, procurement from local communities

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, IIRC, CDP, UN-SDGs

Certifications: ISO 10002

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Parachute Coconut Oil with PCR shrink films

Awards & Recognition

• GreenCo Platinum rating, IGBC Platinum Certification

Environmental Metrics

ESG Focus Areas

• Net Zero emissions
• Water neutrality
• Circular economy
• Responsible sourcing
• Brands with purpose
• Inclusion and diversity
• Sustainable coconut
• Mandatory human rights certification across value chain

Environmental Achievements

• 80.5% Reduction in Marico's direct GHG Emission (Scope 1+2) intensity as compared to FY13 base year
• 70% Renewable energy share in operations
• 96% recyclable packaging portfolio as of FY22
• ~12% Reduction in Scope 3 emissions intensity compared to FY19 base year
• 263 Crore litres of cumulative water conservation potential created by the Jalashay program

Social Achievements

• 46% critical value chain partners completed Level 1 of Marico's responsible sourcing programme
• 94% Procurement spends were from local/indigenous suppliers in FY22
• 2.55 Lakh acres and 62,918 farmers cumulatively enrolled under the Parachute Kalpavriksha programme with y-o-y productivity improvement rate of 15%
• 3 Lakh+ lives Touched cumulatively by Marico’s community sustenance programme
• 96% Members recognise Marico’s talent practices to be above global benchmarks

Governance Achievements

• Maintaining best-in-class practices under the able guidance of the Board
• Marico’s MSCI ESG rating moved up to AA this year

Climate Goals & Targets

Environmental Challenges

• Sharp inflation in edible oils and crude-related raw & packaging materials exerted pressure on profitability
• Commodity risk
• Foreign currency exposure
• Geo-political instability in operating geographies
• Macro-economic factors
• Cyber and data security
• Climate change impacts
• Water shortages
• Natural resource depletion
• Supply chain disruptions
• Talent acquisition and retention
• Employee health safety and well being
• Social responsibility

Mitigation Strategies

• Calibrated pricing actions and tightly managed costs
• A comprehensive process manual drives commodity procurement
• Well-defined framework for capital gearing
• A comprehensive insurance programme to hedge all insurable risks
• Focus on value-added products available to masses at affordable prices by driving aggressive cost management
• Implementation of IT security practices in line with ISO 27001 standard
• Investment in low-carbon technologies and equipment
• Source water vulnerability assessment for all operations
• Installation of water efficient measures
• Adoption of responsible business practices across value chain
• Attracting and retaining diverse talent
• Promoting SHE and social accountability related policies

Supply Chain Management

Supplier Audits: 46% of critical value chain partners completed Level 1 of Samyut, 10% completed Level 2

Responsible Procurement

• Marico’s Responsible Sourcing Framework (Samyut)
• Code of Conduct
• Supplier sustainability requirements

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Flooding

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: International Integrated Reporting framework, Global Reporting Initiative (GRI) Standards: Core option, National Voluntary Guidelines (NVGs)

Certifications: ISO 14001, ISO 45001, USFDA, Halal, FSSC-22000 ver 4, HACCP

Third-party Assurance: DNV GL Business Assurance Pvt. Ltd., BSR & Co. LLP

UN Sustainable Development Goals

• Goal 7
• Goal 13

Initiatives contribute to these goals through renewable energy transition, emission reduction, water conservation, and community development programs

Sustainable Products & Innovation

• Saffola Immuniveda Chywanprash
• Jataa for Men
• Saffola Peanut Butter
• Saffola Mayonnaise
• Parachute Advansed Onion hair oil

Awards & Recognition

• CRISIL Sustainability Yearbook 2022 (Leadership category)
• BW Businessworld’s Top 3 India’s Most Sustainable Companies
• India Risk Management Awards 2022 (Masters of Risk in ESG category)
• Eat Right Patron Award

Environmental Metrics

ESG Focus Areas

• Ethics, Transparency and Accountability
• Sustainable Product Lifecycle
• Employee Well-being
• Stakeholder Engagement
• Human Rights
• Environmental Protection
• Responsible Policy Influence
• Inclusive Growth
• Responsible Customer Engagement

Environmental Achievements

• Energy savings of over 15,000 KwH/annum through various optimization techniques at Perundurai facility
• Control valve automation at Jalgaon facility resulting in energy savings
• Introduction of Intelligent Flow Controller (IFC) system at North-East Region (NER-I) reducing energy losses
• HVAC power consumption reduction of 8,263 KwH/annum at Sanand facility
• 70% of total energy requirement met through renewable sources; 99% renewable electricity in Perundurai; 100% bio-based fuel for thermal energy in three manufacturing units
• 16,129 trees planted, creating carbon sequestration potential of 20,000+ tco2e
• Completed collection and safe disposal of 6,299 MT of post-consumer waste

Social Achievements

• Nihar Shanti Paathshala Funwala impacting 4.17 Lakh students and 2.89 Lakh teachers
• Nihar Skills Academy enrolling 7,976 young women aspirants with 5,883 placements
• Jalashay creating 47.7 Crore Litre of water storage potential through 246 farm ponds
• Mission Health providing health packages to 550 police personnel
• Community sustenance initiatives touching over 50,000 lives
• COVID-19 support distributing 7,06,604 materials to over 55 Lakh beneficiaries
• Kalpavriksha program improving farm productivity by 15% for farms completing more than a year

Governance Achievements

• Robust internal financial controls framework, annually tested and audited by statutory auditors
• Implementation of audit analytics in sales, procurement, manufacturing, supply chain, and employee spends
• Deployment of audit analytics in other functions of Marico’s India operations and key international geographies
• Independent internal audit carried out by Deloitte Touche Tohmatsu India, LLP
• Marico Code of Conduct and Marico Code of Business Ethics implemented and communicated to all stakeholders

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Independent third-party audit of 10% of critical suppliers

Responsible Procurement

• SAMYUT responsible sourcing program; Level 1 certification for over 46% of critical value chain vendors

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, IIRC, UN SDGs, UNGC, CDP, ISO 10002

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Parachute Coconut Oil, Saffola Total Oil, Saffola Oats

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Stewardship
• Circular Economy
• Responsible Sourcing
• Brands with Purpose
• Inclusion and Diversity
• Sustainable Agriculture
• Corporate Governance

Environmental Achievements

• Reduction in GHG emissions intensity: 77% (Against FY13 baseline)
• Renewable energy share: 66%
• Recyclable packaging material share: 94%
• Recycled plastic (PCR): 2 Successful projects with 10% - 20% PCR
• EPR compliance: 100%
• Operational water footprint offset through rain-water potential creation: 100%
• Rain-water conservation potential created: 292 Cr Litre
• Energy intensity per rupee of turnover has reduced from 25 GJ/Crore in FY22 to 24.4 GJ/Crore in FY23

Social Achievements

• Parachute brand is committed for driving sustainable agriculture and helping coconut farmers with scientific farming practices to improve productivity
• Nihar is committed for helping under privileged children in education and has benefitted 11 Lac children and 2.74 Lac teachers
• Diversity: 26.8%
• Inclusion index: 82.5
• No. of farmers enrolled: 81000
• Code of conduct certification (employees): 100%
• Critical vendors awareness creation about “Code of business ethics”: 100% (Material procurement)

Governance Achievements

• Quarterly affirmation is obtained from Directors on compliance with the code of conduct
• The Audit Committee jointly with the Nomination and Remuneration Committee, reviews matters pertaining to the Code of Conduct on a quarterly basis
• Directors provide annual/periodic disclosures of the entities in which they are interested and nature of their relationship

Climate Goals & Targets

Environmental Challenges

• Climate change related events such as draught, flooding, change in weather patterns can have adverse impact on agricultural productivity and thus, affect raw material availability
• Marico’s manufacturing facilities and associated value chains could be vulnerable to disruptions from climate change-related extreme weather events
• Agriculture is a major source of raw materials for Marico’s products, including food, personal care, and household products. Therefore, any disruption in the agricultural sector can potentially lead to supply chain disruptions, higher costs, and ultimately affect the profitability of the company
• Plastic waste management has become a critical issue in recent years due to its adverse impact on the environment
• Water shortages can lead to supply chain disruptions, crop failures, and increased production costs for the company, which can ultimately impact the availability and price of goods for consumers
• Products that are not safe for consumption or use can pose significant health risks to consumers. This can result in product recalls, regulatory penalties, and reputational damage
• Employees can face workplace hazards leading to Injuries and illnesses can result in increased medical costs, lost productivity, and legal liabilities. Additionally, poor employee health and well-being can result in increased absenteeism and turnover rates
• Marico relies on a complex network of suppliers, manufacturers, and distributors to produce and deliver their products to customers. Disruptions to any part of the supply chain can result in production delays and inventory shortages

Mitigation Strategies

• Investment in technologies
• Increase in share of renewable and clean energy
• Carbon sequestration through afforestation
• Mapping of physical climate risks across agriculture-value chain
• Promotion of sustainable agricultural practices for farmers to adapt to environmental risks
• Diversification portfolio of supplier
• Enhanced direct engagement with critical suppliers
• Establishing traceability of agrobased raw materials directly from the source of origin
• Dematerialisation in packaging
• Use of recycled as well as recyclable plastic materials in packaging
• 100% compliance to Extended Producer Responsibility (EPR) framework to ensure collection, proper recycling/ co-processing, and environmentally safe disposal of pre- and postconsumer plastic waste
• Source water vulnerability assessment for all operations (using scientific tools and methods) to identify water stress quotients near Marico’s manufacturing footprint
• Replenishment of equivalent volumes of water as consumed in operations, through various capacity creation measures that benefit local community and agriculture
• Installation of water efficient measures, rainwater storage units and technological upgrades across commercial and operational premises
• Integrating zero discharge principles
• Conducting Product Sustainability Assessments for top product SKUs (by revenue) to measure product quality, ingredient safety, and product environmental footprint across lifecycle, and certify products on internal standards
• Adoption of responsible business practices across value chain
• Promotion of local, indigenous produce that has a significantly lower environmental footprint
• Focus on reducing risk exposure and enhancement of mitigation practices across facilities though training, monitoring, and implementation of safe practices
• Driving employee engagement and wellbeing programmes for better mental health and stressfree life
• Promoting local procurement
• Implementation of responsible sourcing framework ‘Samyut’ for critical suppliers - raw material, packaging material suppliers, depots and warehouses, third party manufacturing units
• Advocating business ethics and human rights principles through trainings and business communications for all suppliers to help them imbibe human rights principles in their operations

Supply Chain Management

Supplier Audits: 80.6%

Responsible Procurement

• Responsible Sourcing Policy
• Samyut Framework

Climate-Related Risks & Opportunities

Physical Risks

• draught, flooding, change in weather patterns

Transition Risks

• Not disclosed

Opportunities

• innovations for climate resilient agriculture and innovations for low carbon solutions

Reporting Standards

Frameworks Used: GRI, IIRC, CDP, ILO, UNSDG

Certifications: ISO 14001, ISO 45001, ISO 10002:2018, FSSC 22000/ISO 22000/HACCP

Third-party Assurance: DNV

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Water Stewardship
• Energy and Raw Materials
• Waste management & Circular Economy
• Forests and Biodiversity
• Product life cycle management
• Climate and Air

Climate Goals & Targets

Environmental Challenges

• Water security challenges
• Dependency on fossil fuels
• Hazardous waste disposal
• Biodiversity and forest loss
• Climate related physical risks
• Climate related business risks
• Air pollution from manufacturing

Mitigation Strategies

• Reduce freshwater withdrawal, reuse and recycle wastewater, rainwater harvesting, watershed development, forestation
• Invest in low carbon clean energy, reduce energy intensity, promote dematerialization and resource efficiency
• Safe handling and disposal of hazardous waste, zero waste to landfill targets, promote reuse and recycling
• Preventive actions to minimize biodiversity and forest loss, ecological restoration projects, sustainable agricultural practices
• Assess climate related physical risks and develop mitigation and adaptation plans
• Identify and mitigate climate related business risks, disclose climate related risks and efforts
• Identify sources of air pollution and invest in cleaner technologies

Supply Chain Management

Responsible Procurement

• Influence and mandate suppliers to comply with environmental regulations

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: National Guidelines for Responsible Business Conduct, Science based Targets for Climate and Nature, Commitments for Responsible Sourcing

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Stewardship
• Circular Economy
• Responsible Sourcing
• Brands with Purpose
• Inclusion and Diversity
• Sustainable Agriculture
• Corporate Governance

Environmental Achievements

• Reduced GHG emissions intensity by 79.9% (Against FY13 baseline)
• Renewable energy share: 67.35%
• Recyclable packaging material share: 95.3%
• Recycled plastic (PCR): 2 Successful projects with 20-50% PCR
• EPR compliance: 100%
• Operational water footprint offset through rain-water potential creation: 100%
• Rain-water conservation potential created: 373 Cr Litre
• Rainwater collected and used in operations: 327.690 KL
• Recycling and usage of effluent in operations: 100%

Social Achievements

• Critical business associates certified for Level 1: 82%
• Critical business associates certified for Level 2: 26%
• No. of farmers enrolled: 1.01 Lac
• Diversity: 28.9%
• Inclusion index: 82
• Code of conduct certification (employees): 100%
• Critical vendors awareness creation about “Code of business ethics”: 100%

Governance Achievements

• All NGRBC related policies are reviewed by the Committee of the Board and the Director respectively

Climate Goals & Targets

Environmental Challenges

• Climate Change related events such as draught, flooding, change in weather patterns can have adverse impact on agricultural productivity and thus, affect raw material availability
• Marico’s manufacturing facilities and associated value chains could be vulnerable to disruptions from climate change-related extreme weather events
• Agriculture is a major source of raw materials for Marico’s products, any disruption in the agricultural sector can potentially lead to supply chain disruptions, higher costs, and ultimately affect the profitability of the company
• Plastic waste management has become a critical issue in recent years due to its adverse impact on the environment
• Marico relies on water-intensive raw materials and manufacturing processes which might be located in regions where water scarcity is a major concern
• Products that are not safe for consumption or use can pose significant health risks to consumers
• Employees can face workplace hazards leading to Injuries and illnesses
• Supply chain disruptions

Mitigation Strategies

• Investment in low- carbon technologies
• Increase in share of renewable and clean energy
• Carbon sequestration through afforestation
• Mapping of physical climate risks across agriculture-value chain
• Establishing traceability of agro-based raw materials directly from the source of origin
• Boosting productivity and livelihood generation for farmers by deploying sustainable agricultural techniques
• Promotion of sustainable agricultural practices for farmers to adapt to environmental risks
• Diversification of supplier portfolio
• Enhanced direct engagement with critical suppliers
• Creation of sustainable packaging portfolio based on circularity principles
• Minimisation of products’ emissions footprint
• Active participation in promoting circular economy principles within sectoral and market dynamics
• Dematerialisation in packaging
• Use of recycled as well as recyclable plastic materials in packaging
• 100% compliance to Extended Producer Responsibility (EPR) framework
• Rejuvenation of water balance in the ecosystem through replenishment of reserves in areas of water stress
• Reduced dependence on freshwater sources by switching to stored rainwater within facilities
• Source water vulnerability assessment for all operations
• Replenishment of equivalent volumes of water as consumed in operations
• Installation of water efficient measures, rainwater storage units and technological upgrades across commercial and operational premises
• Integrating zero liquid discharge principles
• Improvement in environmental and social footprint of products
• Establishment of traceability
• Ensuring 100% compliance with world-class quality and safety norms
• Conducting Product Sustainability Assessments
• Investing in ‘hiring right’, ‘talent development and engagement’ program
• Building a safe and sustainable working environment
• Focus on reducing risk exposure and enhancement of mitigation practices across facilities
• Driving employee engagement and wellbeing programmes
• Adoption of responsible business practices across value chain
• Promotion of local, indigenous produce
• Promoting local procurement
• Implementation of responsible sourcing framework ‘Samyut’

Supply Chain Management

Supplier Audits: 82% for Level 1 and 26% for Level 2 (2023-24)

Responsible Procurement

• Responsible sourcing framework ‘Samyut’

Climate-Related Risks & Opportunities

Physical Risks

• extreme weather events
• draught
• flooding

Opportunities

• Minimisation of environmental footprint from operations
• enhanced fuel, energy, and cost savings
• opportunities for innovations for climate resilient agriculture and innovations for low carbon solutions

Reporting Standards

Frameworks Used: GRI, UN Sustainable Development Goals (SDGs)

Certifications: ISO 14001, ISO 45001, FSSC 22000/ISO 22000/HACCP, ISO 27001:2013, ISO 10002:2018

Third-party Assurance: BDO India LLP