Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health
• Education
• Community Development
• Environment Preservation

Environmental Achievements

• All automotive coatings for passenger cars and decorative product formulations are lead-free.
• Safe disposal of hazardous solid waste and reduction of waste every year.
• Measures for preventive & precautionary control of environmental pollution are taken to minimize pollution load.
• Voluntarily publishes Annual reports on CSR & Environment (ER) for the last six years.

Social Achievements

• Organized 18 health camps covering 1865 persons.
• Provided wheelchairs for the physically handicapped.
• Supported institutions/hospitals caring for patients.
• Supported various educational institutions and imparted education to children.
• Provided infrastructure support to schools, learning equipment, uniforms, books, and copies to poor deserving students.
• Supported various community development initiatives including welfare of families of ex-servicemen, drinking water facilities to villages, senior citizens’ outreach programs, and support for deserving institutions.

Governance Achievements

• Improved Karmayog rating to 4/5, placing them among the top 10 out of 1000 assessed companies.
• Commitment to good governance, ethical conduct, and socially responsible operations.
• Transparency in CSR activities through annual reporting.

Climate Goals & Targets

Environmental Challenges

• Creating general awareness about health issues and improving public health, especially in rural regions.
• Meeting sustainable development objectives which demands new choices and innovative thinking.

Mitigation Strategies

• Continuous endeavor to center activities to address various health issues faced by people in areas where manufacturing units are located.
• Working on eliminating Lead and Mercury from paint formulations. All Architectural paints & passenger vehicle coatings have been made lead & mercury free.
• Staff volunteering to build a positive image and develop a sense of loyalty towards the organization.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Lead-free paints

Environmental Metrics

ESG Focus Areas

• Environment
• Health
• Education
• Community Development

Environmental Achievements

• All automotive coatings meant for passenger cars and decorative product formulations are free of lead.
• Factory locations work for safe disposal of hazardous solid waste & reduce the same every year.
• Measures for preventive & precautionary control of environment pollution are taken to minimize the pollution load.
• Waste reduction is strictly followed & demonstrated.

Social Achievements

• Organized free medical health check-up camps, eye camps, and AIDS awareness programs.
• Provided financial assistance to various institutions for healthcare, education, and community development.
• Distributed school bags and blankets to underprivileged children and communities.
• Installed hand pumps in villages to address water scarcity.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

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

• Lead free paints

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Health
• Education
• Community Development
• Environment Preservation

Environmental Achievements

• Green Belt Development Program completed around Hosur Factory in association with SIPCOT.
• Financial support to Bombay Natural History Society for a coffee table book.

Social Achievements

• Organized medical camps across 17 cities benefiting 1200 people.
• Provided financial assistance to various organizations supporting the mentally challenged, those with multiple sclerosis, hemophilia, and cochlear implant surgeries.
• Distributed blankets to needy citizens.
• Installed a water borewell in Jalalpur village.
• Participated in Joy of Giving Week.
• Participated in Mumbai Marathon 2012.
• Visited Balgram, a home for orphan children.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

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

• Karmayogi rating level 4 out of 5

Environmental Metrics

ESG Focus Areas

• Environmental consciousness
• Safety
• Reduction in carbon emissions
• Water conservation
• Waste management
• Renewable energy
• Livelihood and skill enhancement

Environmental Achievements

• Achieved zero liquid discharge at all its manufacturing plants
• Reduction in hazardous waste
• Reduction in carbon footprint
• 23% of electricity consumption through renewable sources in FY2019-20 (19% in FY2018-19)
• Total emissions reduced by 7.4% from 51516 to 47698 Mt of CO2e
• Specific Water Consumption reduced by 11% from 1.6 to 1.4 KL/KL of FG

Social Achievements

• CSR spend increased by 25.2% from ₹13.5 Crores to ₹16.9 Crores
• Launched employee well-being program
• Launched Nerolac Pragati Express, a mobile training academy for painters
• All plants are ISO 45001 certified

Governance Achievements

• Strong Internal Audit focus with a focus on the Control Efficiency Index and Robust Control Index
• Company tracks various compliance through the Legatrix online compliance monitoring system
• Company has been using the online Enterprise Risk Management Framework to monitor various risk elements and prepare contingency plans

Climate Goals & Targets

Environmental Challenges

• Prolonged monsoons and floods impacted Decorative Paints demand
• Slowdown in Automotive and credit crisis impacted demand for Automotive Paints
• Slowdown extended to other OEM industries
• COVID-19 pandemic brought businesses to a standstill
• Volatility in the exchange rate created a challenge

Mitigation Strategies

• Aggressive cost control
• Dynamic formulation management
• Product mix changes
• Overhead control measures
• Commissioning of new state-of-the-art digital factory in Goindwal, Punjab
• Approvals for supply to major automobile OEMs from Sayakha, Gujarat plant

Supply Chain Management

Supplier Audits: 37 suppliers audited

Responsible Procurement

• Code of Conduct agreement
• Green Procurement Guidelines
• Avoidance of Restricted Substances, Substances of Very High Concern and Substances related to End of Life of Vehicle (ELV)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Floods

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option, International Integrated Reporting Council (IIRC)

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG#4 – Quality Education
• SDG#6 – Clean Water and Sanitation
• SDG#12 – Responsible Consumption
• SDG#13 – Climate Action

Not disclosed

Sustainable Products & Innovation

• Lead-free paints
• Low VOC paints
• Healthy Home Paints
• Energy-efficient products

Awards & Recognition

• Best Managed Company by Business Today
• Silver trophy for ‘Nerolac Pragati Express’ campaign
• Nerolac Excel Topguard adjudged as ‘Product Launch of the Year’
• Mr. Laxman Nikam was honoured as ‘Fellow of The Color Society’
• Best performance award from Isuzu motors India
• Best supplier award from Honda Motorcycle and Scooter India Ltd.

Environmental Metrics

ESG Focus Areas

• Environment
• Society
• Governance

Environmental Achievements

• Zero Liquid Discharge across all plants
• Hazardous Waste Reduction through Ultrafiltration (UF), Reverse Osmosis (RO) & Multi-effect Evaporator (MEE) treatment systems
• Shifted from HSD to environment friendly and low-cost Solid Fuels and Bio-diesel in boilers and for process heat generation.
• Focus on Reduction at Source, co-processing, recycle and reuse schemes, etc.
• Bio-Composting
• Focused approach towards energy management leading to efficient energy usage and reduced scope 1 & 2 GHG emissions.

Social Achievements

• Livelihood Enhancement Project training around 2000 people in basic painting skills
• Community Development at Rural-level
• Preventive Health Care & Sanitation
• Promoting Education

Governance Achievements

• Abiding by the Code of Governance
• Transparency in business dealings
• Disclosure of all relevant information
• Fairness to all stakeholders
• Company’s activities managed by a professionally competent and independent Board of Directors
• Internal Audit with Focus on Control Efficiency Index (CEI)
• Robust Control Index (RCI)
• Online Compliance Tracking through Legatrix Software
• System enabled Enterprise Risk Management

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Decarbonisation
• Resource use
• Quality of life
• Diversity
• Governance

Environmental Achievements

• Became the first Indian paint company to receive approval on Near-Term Emission Reduction Targets from SBTi in line with 1.5°C trajectory
• Achieved water positive status in FY 2023-24
• Reduced Scope 1 & 2 emissions by 13% from baseline FY 2018-19
• Reduced Scope 3 intensity by 3% from baseline
• Recycled 12,068 MT of plastic waste as part of EPR
• Included 10% of recycled content in plastic PM in select products

Social Achievements

• Touched 46,000+ lives through CSR
• Observed 28% employee participation in CSR initiatives
• Achieved zero incident/accident across manufacturing plants
• Certified as Great Place to Work

Governance Achievements

• Awarded Bronze Medal in the EcoVadis Assessment 2024
• Ranked in the Top 10% in chemicals category in the S&P Global Corporate Sustainability Assessment (CSA) 2023
• Ranked in the Top Quartile of the FTSE4Good December 2023 Review

Climate Goals & Targets

Environmental Challenges

• Geopolitical events posed new challenges for the overall economy with increased volatility in crude oil prices, depreciation of the rupee and constraints in global supply chains
• Economic conditions in international subsidiaries were under stress mainly due to liquidity and foreign exchange crises and restrictions on imports
• Climate Change: Global warming, unpredictability of the monsoon in India and change in rainfall pattern, water scarcity, Cybersecurity: Data loss/thefts, Domain-based threats, Website Non-Availability, New Competition: New competitors entering the market, Geopolitical: Geopolitical situations leading to disruptions, Financial: Volatility in exchange rates

Mitigation Strategies

• KNPL was well positioned to respond positively to these inflationary trends and deliver during the reporting year
• Implemented a series of measures aimed at enhancing profitability. These included judicious cost control efforts, collaborative initiatives with value chain partners and a sustained focus on increasing the saliency of premium products
• Business Continuity policy and framework
• Developing sustainable products
• Receiving green product certification
• Financial risk mitigation as per the TCFD framework
• Implementing a dashboard to track upcoming regulations
• Utilising an IT-enabled system to track compliance
• Reducing specific water consumption
• Using recycled water
• Increasing water regeneration through rainwater harvesting
• Conducting regular water audits and assessments

Supply Chain Management

Supplier Audits: 15+ suppliers/year

Responsible Procurement

• Supplier Code of Conduct
• Green procurement guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, flash flooding, incremental sea level rise, storm surges and high precipitations

Transition Risks

• Market reputation and technology risk
• Transitioning to low-carbon technology

Opportunities

• Development of sustainable products
• Renewable energy investments and energy efficiency improvements

Reporting Standards

Frameworks Used: GRI Standards: Core Option, International Integrated Reporting Framework (IIRC)

Third-party Assurance: Aneja Assurance Pvt Ltd

Sustainable Products & Innovation

• Paint+ range
• Low-VOC products
• Heavy metal-free products
• Bio Coatings
• Nerolac Perma Crystal Seal
• Crystalline products range
• HDPE membranes
• RTU Acrylic Lacquer
• Tin-free CED
• High-performance acid etch clear
• Common low-bake monocoat metallic
• Heavy metal-free primer
• High-bonding base coat
• Low-bake 2K PU 3C1B system
• High-performance anticorrosive primer
• Exotica Clear powder
• Nerocoil High Build coating
• RETAN WB EV

Awards & Recognition

• Bronze Medal from EcoVadis
• Top Quartile in FTSE4Good Assessment 2023
• Top 10% globally in S&P Global Corporate Sustainability Assessment 2023
• SBTi approval for near-term reduction targets
• Best Vendor Award from Honda Car India Limited
• Best Supplier Award from Toyota Kirloskar Motors
• Appreciation Award from TVS
• Best Supplier Award 2022-2023 from TKML
• Appreciation Award from OJUS
• Gold Award in CII National Level Kaizen Competition
• Gold Award in QCFI - Delhi Chapter - Jainpur Subchapter
• Platinum Award for ‘Safety Excellence’ from FAME
• Award in CII National Six Sigma Competition
• Gold Award at Maddies Awards 2023
• Gold Award for Mobile Advertising Excellence from Mobexx
• Silver award from MMA Smarties
• Ranked 41st best brand in Interbrand’s list of Best Brands