Climate Change Data

Environmental Metrics

ESG Focus Areas

• Gender equality
• Education
• Aiding pregnant women

Social Achievements

• CoVID-19 Vaccination Programme: Vaccinated more than 75% of its employees in collaboration with Holy Spirit Hospital.

Governance Achievements

• Established a Vigil Mechanism (Whistle Blower) Policy.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations, standstill in the first quarter.
• Scarcity of supply and skyrocketing freight rates impacting margins.
• Inadequate incentives from airlines due to low volumes.
• Second wave of COVID-19 starting in March 2021.
• Restriction on passenger movement reducing cargo movement.
• Limited availability of passenger flights putting pressure on margins.
• Stretched working capital due to diversification strategy.
• Delay in exporter refunds on account of GST.
• Diversification exposing the company to various internal and external risks.
• Political and currency risks with diversification into new geographies.
• Potential for bad debts causing cash-flow problems.

Mitigation Strategies

• Cost reduction measures (reducing wage costs, partial lay-offs, reducing operating and administrative costs).
• Backward integration by chartering freighters and providing additional capacity to clients (pending NOC from Ministry of Civil Aviation).
• Doing business with selected KYC compliant clients to avoid elongating the working capital cycle.
• Availing various term loans and credit facilities from banks to meet working capital requirements.
• Shifting focus from perishable to general cargo.
• Diversification into Sea Freight forwarding.
• Entering into factoring service for quick realization of funds against receivables.
• Multi-banking facility for borrowing from multiple banks (public, private, and foreign banks).
• Proper HR department to minimize attrition and provide adequate training to employees.

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Goal 5 (Gender equality)
• Goal 4 (Quality education)
• Goal 3 (Good health and well-being)

Initiatives contribute to gender equality, education, and aiding pregnant women.

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Employee Well-being
• Corporate Governance

Environmental Achievements

• E-BL Approvals by Various carriers

Social Achievements

• Launched 2 Rewards and recognition programs
• Reduced employee attrition by 8%
• Partnered with various colleges and institutions to educate the younger generation about the importance of the logistics industry
• Invested in culture building and employee engagement activities

Governance Achievements

• Renewed Directors and Officers insurance
• Successfully met regulatory compliance standards by adopting a zero-tolerance non-compliance culture

Climate Goals & Targets

Environmental Challenges

• Drastic drop in freight rates
• Increased manpower cost
• High employee attrition (before mitigation)
• Elongated working capital cycle

Mitigation Strategies

• Investments in talent hiring and technological advancements
• Cost discipline, focus on net working capital, strong capital structure, and asset-light business model
• Improved employee attrition by 8%
• Invoice Discounting
• Robust security measures, network security measures, employee cybersecurity awareness training, robust business continuity plan

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Companies Act, 2013, Indian Accounting Standards (Ind-AS), SEBI (LODR) Regulations, 2015

Awards & Recognition

• Annual Ball 2022 (Gold Sponsor)
• Certificate of Approval as Individual Member
• Innovation of the Year Award
• International Award for Excellence in Air Cargo
• Best Finance Team of the Year
• FE Financial Star Award
• Certificate of Recognition
• Certificate of Appreciation
• Top 20 Most Impactful CFO Leaders
• CFO of the Year
• Vistara Cargo Partner Excellence Silver Award 2022

Environmental Metrics

Governance Achievements

• Renewed Directors and Officers insurance from TATA AIG General Insurance Company Ltd.

Climate Goals & Targets

Environmental Challenges

• Drop in freight rates
• Foreign exchange fluctuation
• Fluctuating interest rates
• Government policies
• Competitive forces
• Changing technology
• Obsolescence
• Recurring supply chain disruptions

Mitigation Strategies

• Implementing robust security measures
• Employing network security measures
• Training employees on cybersecurity awareness
• Implementing a robust business continuity plan
• Invoice Discounting
• Exploring opportunities for an increase in the ocean freight business
• Prioritize cargo by expanding itself into an all-cargo airline
• Identify alternative routes and carriers
• Consider purchasing alternate insurance

Supply Chain Management

Climate-Related Risks & Opportunities