Climate Change Data

KOTHARI PETROCHEMICALS LIMITED

Climate Impact & Sustainability Data (2022-04 to 2023-03, 2023-04 to 2024-03)

Reporting Period: 2022-04 to 2023-03

Environmental Metrics

ESG Focus Areas

  • Energy Conservation
  • Environmental Management
  • Occupational Health and Safety
  • Community Investment

Environmental Achievements

  • Reduced Specific Energy Consumption (SEC) per Ton of PIB produced despite increased plant productivity.
  • Significantly reduced effluent discharge.
  • Exploring Zero Liquid Discharge (ZLD) possibility using ozonation.
  • Continued ISO 14001:2015 certification for Environmental Management System.

Social Achievements

  • Achieved 12035 days of accident-free operation.
  • Continuous employee training program.
  • Record production of 32,630 MT.
  • Received First Prize for National Energy Conservation from the President of India and Excellence In Energy Management Award from the Indian Chemical Council.
  • Received CII awards for Excellent Energy Efficient unit and Silver Category Award for EHS Excellence.

Governance Achievements

  • Regular Board and Audit Committee meetings.
  • Compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
  • Vigil mechanism/Whistle Blower Policy in place.
  • Annual Performance Evaluation of the Board, its committees, and individual Directors.

Climate Goals & Targets

Long-term Goals:
  • Develop unique application-based products for various PIB derivatives.
Medium-term Goals:
  • Capitalize on the growing demand for higher molecular weight PIB.
  • Increase customer base abroad significantly.
  • Explore the feasibility of stock points in selected regions.
Short-term Goals:
  • Further studies to make the first phase of Reactor operation in Auto mode functional.

Environmental Challenges

  • Short supply of paddy husk (main fuel for Captive Power Plant) due to increased demand.
  • Occasional below-normal quality of raw material supply from the refinery.
  • Extended payment terms from overseas customers (foreign exchange risk).
  • Tough competition in China and Asian markets.
  • Uncertainties in availability of particular grade of refinery base oil.
  • Logistics issues (vessel unavailability, ocean freight rate fluctuations).
  • Increased import duty on supplies from India to Europe.
  • Global economic instability and volatile oil market due to Russia-Ukraine tension.
Mitigation Strategies
  • Developed additional sources for uninterrupted paddy husk supply.
  • Continuous usage of high-pure material and focus on domestic sales for greater operating efficiency.
  • Cost savings on other inputs and packing materials.
  • Revamped and semi-automated product loading bay.
  • Worked closely with key customers to address supply chain bottlenecks and provide robust business continuity plans.
  • Hedged exports to mitigate currency fluctuation risk.

Supply Chain Management

Responsible Procurement
  • Long-term supply contracts with existing sources.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Ind AS

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

Third-party Assurance: P. Chandrasekar LLP

Awards & Recognition

  • First Prize for National Energy Conservation
  • Excellence In Energy Management Award
  • CII awards for Excellent Energy Efficient unit
  • Silver Category Award for EHS Excellence

Reporting Period: 2023-04 to 2024-03

Environmental Metrics

ESG Focus Areas

  • Safety
  • Environmental Compliance
  • Energy Conservation
  • Research and Development
  • Corporate Social Responsibility

Environmental Achievements

  • Reduced fuel consumption by 4-5% by installing a fuel-saving device in the Thermic Fluid Heater.
  • Reduced caustic consumption by 10%.

Social Achievements

  • Achieved 12,401 calendar days of “Accident-Free” operation since inception.
  • Crossed 10 million Safe Manhours in Aug’23.
  • Received the “Sustainability Champion -Merit Category from CII-TCM Award”, “The Best Energy (Efficient Plant - Industry) Award” from CII.
  • Continuous imparting training to all its employees.

Governance Achievements

  • Complied with all applicable secretarial standards issued by the Institute of Company Secretaries of India.
  • Adhered to all statutory requirements regarding the Petroleum and Explosives Safety Organization (PESO), and the Directorate of Industrial Safety and Health (DISH).
  • Established a vigil mechanism named “Whistle Blower Policy”.

Climate Goals & Targets

Medium-term Goals:
  • Higher spend on R&D in the coming years to improve Value Addition for Co-products and for new applications.

Environmental Challenges

  • Short supply of paddy husk (main fuel for Captive Power Plant) due to restricted paddy allocation by the State Govt. and many coal consuming Industries switching to husk fuel.
  • Shutdown at other Raw Material supplier restricting supplies during Oct & Nov’23.
  • Global geopolitical issues impacting raw material supply and pricing.
  • Stiff competition from manufacturers in Korea, Japan, and China.
  • Logistics challenges such as vessel availability and delays.
  • Europe’s decision to raise import duties by 3% for supplies from India.
Mitigation Strategies
  • Met additional power requirements by the State Electricity Board Grid.
  • Developed alternative sourcing strategies.
  • Aggressively targeted foreign markets.
  • Implemented robust business continuity plans.
  • Close collaboration with key customers to navigate supply chain bottlenecks.
  • Hedging strategies to minimize negative impact of fluctuation in INR exchange rates.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Ind AS

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001, OHSAS 18001

Third-party Assurance: P. Chandrasekar LLP

Awards & Recognition

  • Sustainability Champion - Merit Category from CII-TCM Award
  • The Best Energy (Efficient Plant - Industry) Award from CII