Climate Change Data

Environmental Metrics

Social Achievements

• Undertaken Research & Development initiatives with an intention to improve the sugar recovery ratio and to educate the cane growers to cultivate improved variety of sugarcane and to otherwise improve the sucrose contents of their produce.

Governance Achievements

• Aligned existing Committees of the Board with the provisions of Companies Act, 2013.
• Renamed existing Remuneration Committee as Nomination and Remuneration Committee.
• Renamed existing Investors’ Grievance Committee as “Stakeholders’ Relationship Committee”.
• Widened the scope of Audit Committee to comply with Section 177 of the Companies Act, 2013.
• Constituted an Internal Complaints Committee in terms of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

Climate Goals & Targets

Environmental Challenges

• The sugar industry’s continuous downward trajectory
• Deadlock between the UP government and the millers
• Undistributed rainfall
• Lower sales realisation on free sugar coupled with higher cane prices
• Sugar production was lower as sugarcane crushing operations were delayed in Uttar Pradesh by a month due to a stalemate between the industry and the State Government on cane pricing.
• Relentless rise in cane prices has left mills bleeding, saddling them with high cane payment arrears.
• Continued losses, the cash flows of mills are expected to remain stressed in the coming season as well, consequently a further increase in cane arrears, translating into reduced cultivation.

Mitigation Strategies

• The Company is equipped with economies-of-scale to withstand industry downtrends and optimise its costs.
• Invested in processes to enhance its recoveries, enhance quality and market it efficiently.
• Working with a large number of farmers across its three manufacturing facilities to mitigate shortage of raw material supply.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainability
• Farmer Relations
• Fiscal Discipline
• Corporate Social Responsibility

Environmental Achievements

• Reduced greenhouse gas emissions through cogeneration using bagasse (waste product from sugarcane crushing).

Social Achievements

• Prioritized clearing arrears outstanding to farmers.
• Organized regular medical camps and provided free medicines and emergency medical equipment to the deprived.
• Provided education and free books to underprivileged children.
• Ran an inter-level college for students.

Governance Achievements

• Implemented robust and comprehensive HR processes.
• Implemented fair and transparent performance evaluation.
• Established a vigil mechanism and whistleblower policy.
• Constituted mandatory committees (Audit, Stakeholder Relations, Nomination & Remuneration, Risk Management) and a non-mandatory Finance & Corporate Affairs Committee.

Climate Goals & Targets

Environmental Challenges

• Volatility in sugar prices.
• Sugar recovery ratio fluctuations.
• Government-fixed State Advised Price (SAP) for sugarcane.
• Drought impacts reducing sugarcane yields and ethanol production.
• Concentrated industry with difficulty increasing production.
• Weather dependency of sugar production.

Mitigation Strategies

• Implemented a robust risk management framework to identify, monitor, and minimize risks.
• Increased organization-wide awareness of business risks.
• Undertook R&D initiatives to improve sugar recovery ratio and educate cane growers.
• Strengthened operations and worked towards building a robust balance sheet.
• Implemented better strategies to enhance the value proposition of the business and achieve better margins.
• Focused on co-generation and ethanol production to enhance profitability.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Installed water recharge borewells (Hargaon unit)
• Developed a pond at Seohara; maintained ponds at Hargaon
• Planted 5,000 trees in 2022-23
• Achieved zero liquid discharge across all distilleries
• Banned the use of polythene across all factories and colonies
• Sustained manufacturing units with green fuel
• Managed an effluent treatment plant across manufacturing locations

Social Achievements

• Timely investments (recruitment, retention and training)
• Enhanced operational safety through training, protocols, certifications, timely investments and awareness building
• Deepened relationships with vendors and primary customers
• Engaged with communities through CSR interventions
• Expended ₹256.71 Lakh in CSR initiatives in 2022-23

Governance Achievements

• High governance standards, enhancing sustainability
• Growing with a smaller Balance Sheet, enhancing profitability
• Professionalization of the Board
• Fair and transparent processes and reporting systems
• Going beyond the mandated Corporate Governance Code requirements of Securities and Exchange Board of India (SEBI)

Climate Goals & Targets

Environmental Challenges

• Yield decline and resistance to red rot disease in CO 0238 sugarcane variety
• Sluggishness in sugar realisations
• Decline in sugar recovery due to disease-affected sugarcane
• Unremunerative power realisation price

Mitigation Strategies

• Advocated the use of new advanced cane variety (CO118 and CO15023)
• Provided subsidised seed varieties and conducted village meetings
• Exported 1.28 Lakh Tonnes of sugar
• Replaced CO238 cane variety in vulnerable command areas
• Engaged in legal remedial action against the state government to get a higher power price

Supply Chain Management

Responsible Procurement

• Sustainable sourcing practices
• Supplier’s code of conduct

Climate-Related Risks & Opportunities

Physical Risks

• Heavy rainfall and flood damaging crops

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced resource consumption per unit of output
• Implemented water-saving technologies
• Improved energy efficiency
• Minimized emissions and pollutants discharged
• Implemented proper hazardous waste disposal
• Achieved zero downtime of turbines

Social Achievements

• Invested H278.96 Lakh in CSR initiatives
• Improved employee safety through training and protocols
• Strengthened relationships with vendors and customers
• Implemented robust and comprehensive HR processes
• Implemented initiatives aligned with UN Sustainable Development Goals

Governance Achievements

• Established a strong governance culture
• Aligned corporate strategies around stakeholder priorities and global standards
• Implemented a range of policies to ensure sustainability and resource efficiency
• Established a Risk Management Committee
• Complied with the Code of Conduct

Climate Goals & Targets

Environmental Challenges

• Declining cane yield and vulnerability to red rot disease
• Sluggish sugar realisations
• Decreased sugar recovery
• Increased cane costs
• Unprofitable power prices
• Resistance to change in legacy-based practices

Mitigation Strategies

• Promoted adoption of advanced cane varieties
• Replaced CO238 cane variety in vulnerable command areas
• Commissioning of new proximate sugar mills increased competition for cane
• Legal measures underway to secure a higher power price
• Investments in safety and environment responsibility cum sustainability
• Focus on cultural transformation

Supply Chain Management

Responsible Procurement

• Sourcing raw materials from nearby locations
• Supplier’s Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Altered rainfall patterns
• Temperature fluctuations
• Extreme weather events

Transition Risks

• Increasing greenhouse gas emissions

Opportunities

• Producing bioethanol, a renewable energy source

Reporting Standards

Frameworks Used: UNGC