Climate Change Data

Environmental Metrics

ESG Focus Areas

• Growth and profitability through product innovation and value chain enhancements
• Reduction in energy and greenhouse gas footprint
• Improvement in occupational health and safety indicators
• Community development through Corporate Social Responsibility (CSR) initiatives

Environmental Achievements

• Conserved an estimated 2,949,129 kWh of energy in FY 2012-13 and 2,011,888 kWh in FY 2013-14 through various energy conservation initiatives.
• Decreased greenhouse gas emissions across all plants through energy conservation initiatives.
• All plants are ‘zero discharge’ plants, treated effluent reused for gardening.

Social Achievements

• Seven consecutive wage settlements signed before expiry of previous ones without losing a single man-day.
• Family Visit Program at Kagal plant to improve employee retention and reduce attrition.
• Various employee wellbeing initiatives including hospitalization, medical benefits, scholarships, and flexible work policies.

Governance Achievements

• Adoption of a Code of Conduct as per Clause 49 of the listing agreement for Board of Directors and Senior Management.
• Adoption of CII’s Business Excellence framework and Code for prevention of Insider Trading.
• Commitment towards Corporate Sustainability and adoption of the GRI guidelines on Triple Bottom Line reporting.

Climate Goals & Targets

Environmental Challenges

• Sub 5% GDP growth in two consecutive years impacting the Indian economy.
• High inflation, low industrial output, high interest rates, and rupee depreciation.
• Delayed and excessive monsoon affecting business performance.

Mitigation Strategies

• Significant progress in consolidating market presence.
• Focus on research and development leading to new product lines and energy-efficient products.
• New customer-facing and supply-side programs aimed at creating shared value and efficient processes.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Long-term strategic alliances with key suppliers
• Supplier training on quality systems and Six Sigma tools
• Supplier Quality Contest

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G3.1

Certifications: ISO 9001:2008, ISO 14001:2009, OHSAS 18001:2007

Third-party Assurance: Ernst & Young LLP (Limited Assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Gas and bio-diesel engines

Awards & Recognition

• CII National level ‘Energy Efficient Unit’ award (Kagal Plant)
• EEPC ‘Star Performer Award’ (five consecutive years)
• Various awards for quality circles

Environmental Metrics

ESG Focus Areas

• Innovation Management
• Strategy For New Markets
• Sustainable Supply Chain
• Climate Stewardship
• Operational Eco-efficiency
• Product Stewardship
• Human Capital Development
• Public Policy

Environmental Achievements

• Total GHG emissions lower by 19% in FY 16 compared to FY 14
• Water recycled & reused at Rajkot plant
• Decrease in Energy intensity at Kagal in FY16 as compared to FY15
• Kagal plant received GreenCo-Green Company Rating System Standards Certification
• Second winner of National Level Award in General Category received from Bureau of Energy Efficiency, New Delhi
• First Prize winner of State Level ENCON Competition by Maharashtra Energy Development Agency (MEDA), consistently for 3 years at state level
• “Green Co Gold” rating received from CII for the Kagal plant

Social Achievements

• Launched two sub-brands, KOEL Green and KOEL Chota Chilli (KCC), with a wide array of gensets
• Strengthened the distribution channel in Agri Crop Irrigation Business with more than 550 distributors and over 17,000 retailers
• HR agenda focused on building a robust talent pipeline, enhancing individual and organisational capabilities, driving employee engagement, and strengthening employee relations
• Revamped rewards and recognition (R&R) programme
• Introduced Special Leave Types like Paternity Leave, Bereavement Leave and Transfer Leaves
• Training hours increased in FY 16 over FY 15

Governance Achievements

• Adopted the code of conduct with the objective of enhancing the standard of ethical conduct and evolving as a good corporate citizen
• Efficient vigil mechanism/ whistle Blower policy in place
• Code of conduct signed by all Directors and senior management team members annually
• Uses a work flow based legal compliance software tool that monitors and ensures compliance of all applicable regulations

Climate Goals & Targets

Environmental Challenges

• Somber global economy and truant monsoon in India
• Intensified competition from multinational companies in export markets
• Severe price competition from Chinese and other domestic players in the agriculture export segment
• Abnormal increase in GHG intensity at Pune due to shifting of major production activities

Mitigation Strategies

• Continued brand building exercise with the launch of new sub-brands
• Close monitoring in various markets and course corrections
• Service as a differentiator
• Purchases green power from the Power Exchanges under open access policy to reduce GHG emissions
• Plan to establish solar power generation facilities

Supply Chain Management

Supplier Audits: 52% of new suppliers screened using environmental criteria in FY16, 76% in FY15

Responsible Procurement

• Green Procurement Guidelines
• Project Unlock (ensuring material availability on time while reducing excess inventory)
• 3R methods for resource conservation
• Demand Driven Replenishment system

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Guidelines

Certifications: ISO 9001:2015, ISO 14001:2015, OHSAS 18001:2007

Third-party Assurance: Bureau Veritas

Sustainable Products & Innovation

• CPCB II compliant engines
• Petrol Gensets
• Bio-diesel based Power Generation
• Solar water Heating System

Awards & Recognition

• Star Performance Award (EEPC)
• Top 25 innovative organization in India (CII)
• Green Co Gold rating (CII)
• 16th National Award for Excellence in Energy Management (CII)
• Global Spotlight Award for Supply Chain Excellence (AMCF)
• Quality Excellence in Procurement Award
• Breakthrough Product Innovation in R&D (AIMA)

Environmental Metrics

ESG Focus Areas

• Innovation management
• Operational eco-efficiency
• Strategy for new markets
• Product stewardship
• Sustainable supply chain
• Human capital development
• Climate Stewardship
• Public policy

Environmental Achievements

• Achieved carbon neutrality for FY 18-19 at Kagal under PAS 2060:2014 guidelines
• Reduced GHG emissions intensity at Kagal
• Reduced water consumption at Kagal
• 37% of total electricity at Kagal plant from solar captive power plant, saving ₹ 5.35 Crores
• Kagal plant received “K-Group ENCON Award-17-18” for best managed energy-efficient plant

Social Achievements

• Conducted health check-up camps, educational support programs, sports training, and livelihood training programs for women
• 13th Kirloskar Vasundhara International Film Festival with theme ‘Save River, Save Life’
• Sanvedana HIV/AIDS awareness program, resulting in declining HIV infection rate in Kolhapur district
• WASH (Water, Sanitation & Hygiene) initiative in 32 schools
• ‘SAAKAV- LifeSkill Training Program’ for adolescent boys and girls

Governance Achievements

• Established Risk Management Committee of the Board in 2018-19
• 100% of governance body members and new joiners signed a code of conduct including anti-corruption
• No legal actions pending or completed regarding anti-competitive behavior

Climate Goals & Targets

Environmental Challenges

• Competition from multinational companies in power generation export segment
• Severe price competition from Chinese and domestic players in the agriculture export segment

Mitigation Strategies

• Intensified efforts to develop business in the Middle East and Africa
• Introduced 3,000 rpm FMUL engines for international markets
• Obtained EPA certification for diesel engines

Supply Chain Management

Supplier Audits: 100% critical suppliers audited

Responsible Procurement

• Supplier Integration measures
• Supplier development program “Samvardhan”
• KOEL Lean Cluster program
• Supplier Quality Improvement Contest

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, OHSAS 18001, ISO 9001

Third-party Assurance: Bureau Veritas (India) Pvt Ltd.

UN Sustainable Development Goals

• SDG 7: Affordable and clean energy
• SDG 13: Responsible consumption and production

Development of efficient DG sets and engines; state-of-the-art production plants and efficient products

Sustainable Products & Innovation

• Mega T12 LW power tiller
• Glacia-56 mini monoblock pump
• K-series pumps
• Compact Engine Family R550

Awards & Recognition

• Golden Peacock Innovative Product/ Service Award (Mega T)
• Champion of Rural Markets (Economic Times)
• Top 30 innovators in ‘corporate’ category (Clarivate India Innovation Awards 2018)
• Platinum Certification for Supplier Quality Excellence Process (SQEP) by Caterpillar Inc.
• CII National Award for Excellence in Energy Management (Kagal)
• State Level ENCON Award by MEDA (Kagal & Nasik)

Environmental Metrics

ESG Focus Areas

• Innovation Management
• Operational Eco-Efficiency
• Strategy for New Markets
• Product Stewardship
• Sustainable Supply Chain
• Human Capital Development
• Talent Acquisition and Retention
• Corporate Social Responsibility
• Climate Stewardship
• Public Policy

Environmental Achievements

• Kagal Plant achieved Carbon Neutrality in 2018-19 by offsetting 17,661 tons of CO₂ emissions.
• Reduced specific energy consumption by 2.26 kWh/BHP in FY19-20.
• 30.50% renewable energy share in total electrical consumption at Kagal plant in FY19-20, offsetting 7484 tCO₂.
• 100% compliance with MPCB environmental laws.

Social Achievements

• Launched new product range of LWS 12HP Power Tiller, 8 HP Power Weeder and Ultra Light 5HP, especially for rural communities.
• Approximately 5% of talent was acquired and 5% retained.
• 53% of permanent employees and 88% of temporary/contractual employees trained on safety.
• KOEL Community Satisfaction Survey Index remained at 100 for FY17-18, FY18-19, and FY19-20.

Governance Achievements

• Strong governance policies earned investor, partner, customer, and community trust.
• Robust code of conduct and ethics based on National Voluntary Guidelines.
• No legal actions pending regarding anti-competitive behavior or violations of anti-trust legislation.
• No fines or penalties for flouting rules concerning emissions, health, and safety.

Climate Goals & Targets

Environmental Challenges

• Business continuity challenges due to the COVID-19 pandemic.
• Long-term challenges due to climate change.
• Intensified competition from multinational companies in Power Generation and Industrial segments.
• Severe price competition from Chinese and domestic players in the agriculture segment.

Mitigation Strategies

• Systems and infrastructure, employees, and partners cooperated to create a new normal.
• Reinforced experience and expertise to increase renewable energy share.
• Continued focus on energy efficiency, renewable energy, plantation, and watershed development.
• Continued efforts on market penetration in targeted markets, selling high horsepower range and FMUL engines.

Supply Chain Management

Supplier Audits: 100% of critical suppliers screened; Zero Defect Project conducted with six-monthly reviews, including EHS score and social criteria.

Responsible Procurement

• Procurement from local vendors, particularly those in plant vicinity.
• Samvardhan Program for MSME suppliers.
• Annual Supplier Quality Improvement Contest.
• Technology Days.
• Green Supply Chain Policy.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 9001, ISO 14001, OHSAS 18001, FMUL, BIS, CE

Third-party Assurance: Bureau Veritas (India) Pvt. Ltd.

UN Sustainable Development Goals

• No Poverty
• Zero Hunger
• Good Health and Well-being
• Quality Education
• Gender Equality
• Clean Water and Sanitation
• Affordable and Clean Energy
• Decent Work and Economic Growth
• Reduced Inequalities
• Responsible Consumption and Production
• Climate Action
• Peace, Justice and Strong Institutions

Sustainable Products & Innovation

• CPCB stage II emission norms compliant engines for power generation.
• BS III emission compliant engines for construction equipment.
• EPA certified Tier 3 diesel engines for US market.

Awards & Recognition

• Golden Peacock Award for Energy Efficiency (2019)
• GreenCo Platinum rating by CII
• Carbon Neutrality certification (PAS 2060:2014)
• Excellent Energy Efficient Unit Award (CII)
• National Energy Leader award
• Certificate of Merit (MEDA)

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Innovation
• New Markets Strategy
• Public Policy
• Stakeholder Engagement
• Sustainable Supply Chain
• Human Capital Development
• Corporate Social Responsibility
• Operational Eco-efficiency
• Product Stewardship

Environmental Achievements

• Kagal Plant achieved carbon neutrality
• Offset 4.18 tons of CO₂ emissions in FY 2021 through energy efficiency, renewable energy, plantation, and watershed development
• Zero liquid discharge plants at all locations

Social Achievements

• Zero work injuries among employees and contractors
• KOEL Community Satisfaction Survey Index achieved a perfect score of 100 for four consecutive years
• Various initiatives for employee well-being and work-life balance (hospitalization, medical claims, scholarships, etc.)
• No complaints relating to child labour, forced labour, involuntary labour, or sexual harassment

Governance Achievements

• Strong governance structure with a Board of Directors overseeing operations and compliance
• Adoption of a Code of Conduct for Board of Directors and Senior Management
• Implementation of CII’s Business Excellence framework and Code for Insider Trading Prevention
• No legal actions pending against the organization for anti-competitive behaviour or breaches of anti-trust and monopoly laws

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on business operations
• Heavy floods in Kolhapur
• Cyclicity of business
• Strong pricing competition from local and Chinese companies
• Slow power-generating industry
• Price pressures in almost all markets

Mitigation Strategies

• Business continuity plan ensured smooth functioning during uncertain times
• Cross-functional training allowed employees to take on roles across different domains
• Company covered Covid-19 expenses above group Mediclaim policy
• Demand Driven Production System helped meet market needs
• Digitally connected supply chain
• Offering power solutions and value engineering projects
• Projected product range expansion

Supply Chain Management

Supplier Audits: 100% of new suppliers screened using environmental and social criteria

Responsible Procurement

• Suppliers’ Code of Conduct
• Green Supply Chain Policy
• Emphasis on local sourcing (within 300km radius)

Climate-Related Risks & Opportunities

Physical Risks

• Heavy floods

Transition Risks

• Changes in government regulations (emission norms)

Opportunities

• Development of energy-efficient products
• Renewable energy technologies

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN SDGs

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, Kagal Plant: GreenCo, IGBC, Carbon Neutrality

Third-party Assurance: VK:e environmental LLP

UN Sustainable Development Goals

• No Poverty
• Zero Hunger
• Good Health and Well-being
• Quality Education
• Gender Equality
• Clean Water and Sanitation
• Affordable and Clean Energy
• Decent Work and Economic Growth
• Reduced Inequalities
• Responsible Consumption and Production
• Climate Action
• Peace, Justice and Strong Institutions

See UNSDGs mapping in the report.

Sustainable Products & Innovation

• KOEL Green Gensets
• Engines operating on alternative fuels

Awards & Recognition

• Golden Peacock Award for Energy Efficiency (Kagal Plant)
• First Rank in Envirocare Green Awards 2020
• Par Excellence Award and Silver Award at National, State, and Chapter levels on Quality Control Circles

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• 5.5 MWp Captive solar plant at KOEL Kagal plant (addl. 2.68 MWp under installation)
• 34% Renewable energy share at KOEL Kagal facility
• 445.18 MWh energy conserved at KPCL
• 3% Reduction in Carbon Footprint at KFIL
• Plastic waste to fuel plant within campus of 125 Kg/Day; 8246 lit poly fuel generated at KOEL Kagal
• 47.61 tons scrap reused; 28.89 KL oil recovered; 14814 kL water recycled at KPIL
• 210,059 kL rain / storm water collected & reused
• 61.47 Ton Carbon sequestrated in KOEL Kagal through tree plantation
• KOEL’s manufacturing plant at Kagal is Carbon Neutral Certified as CII ‘Greenco Platinum Plant’ for the year 2021, Recipient of Golden Peacock Award for Energy Efficiency for a third consecutive year

Social Achievements

• 1.12 Lost time injury rate (LTIR) at KFIL
• Zero Accidents reported across all plants for KOEL
• INR 14.5 Million CSR spends by KPCL with a 95.4 CSR satisfaction index
• 19,530 People benefited through CSR activities by KFIL; 4.53 Crore Spent on CSR; 42 Employees Volunteered
• 93% Customer satisfaction score at KFIL
• Preferential Procurement of materials from local and MSME suppliers

Governance Achievements

• Strong governance framework
• Balanced boards with a good mix of Independent and non-independent directors
• Group-wide code of conduct rolled out
• Third-party Ethics Helpline in place for whistleblower complaints
• KFIL, KOEL, and KPCL moving to integrated report format
• KIL, KFIL, KOEL, and KPCL publish Business Responsibility report
• KOEL publishes sustainability report

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Preferential Procurement of materials from local and MSME suppliers

Climate-Related Risks & Opportunities

Awards & Recognition

• Golden Peacock Award for Energy Efficiency (KOEL)