Climate Change Data

Environmental Metrics

ESG Focus Areas

• Creating Stakeholder Value
• Operational and Resource Efficiency
• People and Communities
• Compliance and Ethics

Environmental Achievements

• Installation of a 1.5 MW solar power plant at the Faridabad plant, leading to savings of 6,000 units of grid power per day at the group level.
• Use of sewage treatment plant (STP) water for gardening, leading to potable water savings of approximately 600 kl per month.
• Introduction of a hybrid tractor that can be operated using both diesel or electricity.

Social Achievements

• Launched "implement banks" for farmers to borrow from (pay-per-use business model).
• Extended pension policy to temporary workers.
• Investment in CSR expanding to Rs. 50 crores annually in the next 10 years.

Governance Achievements

• Released a new Code of Business Conduct in 2019.
• Scored 'Good' in the Indian Corporate Governance Scorecard, 2020.

Climate Goals & Targets

Environmental Challenges

• Impact of macro events on business continuity
• Impact of monsoon and other external factors on the tractor industry
• Inefficient cost structure resulting in reduced profitability
• Adverse labor relations
• Safeguarding confidential information and IT systems

Mitigation Strategies

• Detailed risk management policy at the Board level.
• Risk management committee led by the Chairman, CFO, and an independent director.
• Continuous monitoring and evaluation of risks by respective functions and business divisions.

Supply Chain Management

Responsible Procurement

• Focus on local sourcing (from India)
• Encouraging suppliers to adopt green supply chain practices

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, 2016: Core Option, UN Sustainable Development Goals (SDGs)

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001, IRIS ISO TS/22163 (Railway Equipment Division)

Sustainable Products & Innovation

• Hybrid tractor
• Electric tractor
• Fuel-efficient engine for Farmtrac tractors
• Smart implements

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Employee Well-being
• Community Engagement
• Gender Diversity
• Supply Chain Sustainability
• Corporate Governance

Environmental Achievements

• Installation of a 1.5 MW solar power plant at Faridabad plant, leading to 2,232,705 KWh of grid power saved per day at group level
• Use of sewage treatment plant (STP) water for gardening, saving approximately 600kl of potable water per month
• 28 tons of waste paper sent for recycling
• 305 KL of water cycled and reused
• Introduction of a hybrid tractor

Social Achievements

• Organised free COVID-19 vaccination camps for employees
• Implemented COVID-19 relief measures for customers and dealerships
• Launched various employee wellbeing initiatives including financial and medical aid, psychological support, and online learning programs
• Initiated plantation drive across plants and premises
• Multiple women empowerment and welfare initiatives adopted

Governance Achievements

• Revised CSR Policy in line with business strategy
• Established a steering committee to implement systems and processes to prevent the spread of COVID-19
• Implemented a robust five-step process for risk management
• Released a new Code of Business Conduct

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and supply chains
• Fluctuations in commodity prices
• Supply chain disruptions
• Talent management (succession planning and employee retention)
• Cybersecurity threats

Mitigation Strategies

• Implemented COVID-19 relief measures for employees, customers, and dealerships
• Commodity Risk Management, cost re-engineering, and value engineering activities
• Development of alternative sourcing strategies and enhanced focus on localization
• Developing talent pool through learning and career development programs
• Establishment of Security Operations Centre (SOC)

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Focus on local sourcing

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core Option

Certifications: ISO 45001, ISO 9001:2015, ISO 14001:2015, IRIS Certification

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Electric tractor
• Hybrid tractor

Awards & Recognition

• First tractor company in India to receive certification for electric tractor

Environmental Metrics

ESG Focus Areas

• Farm mechanisation
• Infrastructure development
• Rail safety and comfort
• Resource efficiency
• Community welfare
• Corporate governance

Environmental Achievements

• Reduced Scope 1 and 2 emission intensity to 6.9 tCO2e/₹ crore of revenue
• Reduced water consumption across business divisions (except KMC)
• Energy savings of 90,048 GJ through various energy efficiency initiatives

Social Achievements

• 127,310 employee training hours
• ~72,000 lives impacted through CSR initiatives
• ₹15.83 crore CSR spend
• Initiated Escorts Advanced Farm Institute (EAFI) in Haryana

Governance Achievements

• Established an exclusive governance structure for sustainability
• Released a new code of business conduct
• Implemented a robust risk management framework

Climate Goals & Targets

Environmental Challenges

• Pandemic-induced supply chain disruptions
• Unprecedented inflationary pressures
• Elevated raw material prices
• Subdued rural demand
• Labour shortages

Mitigation Strategies

• Improved material cost management
• Price increases to protect margins
• Cost optimization strategies
• Development of alternative sourcing strategies
• ESG audits for suppliers
• Capacity building programs for suppliers

Supply Chain Management

Supplier Audits: ESG audits to be initiated in 2022-23 for 90 critical suppliers

Responsible Procurement

• Focus on local procurement
• Development of an ESG-focused procurement policy
• Supplier ESG assessment framework

Climate-Related Risks & Opportunities

Physical Risks

• Inadequate monsoons
• Adverse weather conditions

Transition Risks

• Changes in emission norms
• Shift towards green fuels

Opportunities

• Development of energy-efficient products
• Expansion into renewable energy

Reporting Standards

Frameworks Used: Value Reporting Foundation's International framework, GRI Standards: Core Option, UN SDGs, The Companies Act, 2013, Indian Accounting Standards, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Certifications: ISO 9001:2015, ISO 14001:2015, IRIS ISO TS/22163

UN Sustainable Development Goals

• SDG 1: No Poverty
• SDG 5: Gender Equality
• SDG 4: Quality Education
• SDG 6: Clean Water and Sanitation
• SDG 7: Affordable and Clean Energy
• SDG 8: Decent Work and Economic Growth
• SDG 9: Industry, Innovation and Infrastructure
• SDG 10: Reduced Inequalities
• SDG 17: Partnerships for the Goals

See report for details on how initiatives contribute to each SDG

Sustainable Products & Innovation

• Electric tractors
• Hybrid NXT13DC CNG Crane

Awards & Recognition

• Budni Certification for electric tractors

Environmental Metrics

ESG Focus Areas

• Energy & Climate Change
• Resource Efficiency
• Operational EHS Impact
• Financial Performance
• Employment
• Customer Satisfaction
• Values, Ethics & Compliance
• Community Engagement & Local Employment
• Supply Chain Sustainability
• Product Responsibility & Association
• Diversity & Inclusion

Environmental Achievements

• 26.24% Reduction in water consumption YoY
• 4.12% reduction in Scope 1 + Scope 2 Emission Intensity
• 26,834 KL Water Recycled
• Waste sent to Landfill- Baseline year FY 2022-23: 304.14MT FY 2023-24: 257.04MT

Social Achievements

• Launched the Municipal Plastic Waste to School Benches initiative, recycling 210 metric tons of plastic into 6,000 benches for over 90 government primary schools in Faridabad
• Trained 1,600 ITI graduates on tractor operations and maintenance
• Provided tractor driving training to over 13,000 farmers, including 30% participation of women, across six states in India
• Improved facilities for over 2,500 students in Faridabad through our school upgradation project
• Restored and rejuvenated the Sadpura Pond, recharging approximately 85 Million liters of groundwater, benefiting 5,000 families upon project completion
• Conducted a project on menstrual health and hygiene, training 1,661 girls and distributing 16,000 sanitary napkins
• Upskilled 791 girls with essential 21st-century work skills
• The Escorts Kubota Advanced Farming Institute (EKAFI) at Kurukshetra and Bengaluru has trained over 7,900 farmers in scientific agricultural skills

Governance Achievements

• Regular policy reviews and updates by company’s senior management and the board.

Climate Goals & Targets

Environmental Challenges

• Erratic rainfall and low water reservoir levels impacted the Agri-Machinery segment’s revenue
• Supply chain disruptions might affect our Company’s day-to-day operations, affecting profitability and sustainability
• Our business operations might be impacted due to increased incidences of cyber threats
• Employees’ unrest or adverse labor relations could potentially disrupt our operations
• Internal conflicts between employees and management may arise within our Company, particularly regarding issues such as health and safety protocols and grievance redressal processes
• We may encounter challenges in creating and implementing succession plans for key positions and retaining high-performing employees
• We may encounter accidents involving moving machinery, on-site transport, forklifts, and blasts
• Our operations may face impacts due to legal and regulatory changes in the regions where we operate, potentially leading to increased operating costs, restrictions, and penalties
• Inability to innovate and introduce new products, business initiatives and technology to capitalize on market opportunities might affect our business sustainability
• The prices and demand for our products may experience volatility or uncertainty, influenced by economic conditions, natural disasters, weather events, pandemics, political instability, and other factors. Fluctuations in commodity prices and demand could have adverse effects on our earnings and cash flow

Mitigation Strategies

• Comprehensive crisis management and business continuity plans
• Cost optimization projects aimed at reducing fixed costs and optimizing variable costs
• Development of alternate suppliers and emphasis on localization efforts
• Robust process for conducting financial due diligence on all suppliers
• Periodic engagements with employees
• Regular training and development programs and welfare measures to support our employees’ growth and well-being
• Identifying critical positions, mapping successors, and assessing their readiness
• Investing in developing a talent pool through learning and career development programs
• Continually monitor regulatory developments
• Proactive environmental, safety, and CSR practices
• Appropriate financial allocation strategies to support the development of new products
• Mitigating the inflationary impact through our ‘Commodity Risk Management’ efforts, alongside cost re-engineering and value engineering activities

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct (SCoC)
• Emphasis on local sourcing
• Stringent criteria for evaluating suppliers based on ESG principles

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather conditions and natural disasters

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, NGRBC

Certifications: ISO 14001, ISO 45001, IRIS

UN Sustainable Development Goals

• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 13

EKL's initiatives contribute to these goals through various projects related to energy efficiency, job creation, infrastructure development, gender equality, and climate action.

Sustainable Products & Innovation

• Electric tractors

Awards & Recognition

• Gold Award for ‘Sustainability Reporting Leadership in Manufacturing Sector’ by 3rd ICAI Sustainability Reporting Awards 2022-23
• Silver in the Diversity, Equity & Inclusion Awards category for Project Udaan by the Brandon Hall HCM Excellence Award 2023