Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment, Health and Safety

Environmental Achievements

• Achieved IGBC Green Factory Building Gold rating for sustainable manufacturing practices.
• Increased rainwater harvesting capacity to 130,000 Cum.
• Energy saving 34% higher than Green Building baseline.
• Implemented 5S for waste reduction and improved housekeeping.

Social Achievements

• Delivered healthcare services to 60,000 people in Andhra Pradesh.
• Launched a mobile medical van service.
• Supported child education initiatives.
• Developed natural resources.

Governance Achievements

• Credit rating upgrade by CARE Ratings and ICRA Limited.
• Strong internal control procedures commensurate with size and operations.
• Robust risk management framework.
• Transparent policies and practices.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on demand, operations, and trade network.
• Weak consumer sentiment.
• Excess MDF capacity in India.
• Low awareness of MDF utility.
• Managing cash flows and liabilities during lockdown.

Mitigation Strategies

• Enhanced hygiene and safety measures.
• Focus on quality revenues and low receivables.
• Built institutional customer relationships.
• Enhanced dealer network productivity.
• Focus on marketing value-added products.
• Created an e-catalogue.
• Cost management initiatives.
• Sales team review and restructuring.
• Efficiency management and improved asset utilization.
• Expanded footprint to smaller population clusters.
• Deepened focus on OEM customers.
• Aggressive debt repayment schedule.
• Leveraging low capital cost per ton of MDF.

Supply Chain Management

Responsible Procurement

• Encouraging farmers to grow plantation wood.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• MDF, which is an environment-friendly product.

Awards & Recognition

• IGBC Green Factory Building Gold rating

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced wax consumption by 30% by installing a wax emulsion system
• Increased MDF production capacity by 22% by installing a MAT pre-heating system
• Rainwater harvesting system at Andhra Pradesh plant
• IGBC Green Factory Buildings certification

Social Achievements

• Launched a mobile medical van project providing medical services to 65 villages
• Conducted periodic training programs for carpenters
• Constructed an educational space for a government primary school in Uttarakhand

Governance Achievements

• Established a Risk Management Committee
• Implemented a Vigil Mechanism Policy

Climate Goals & Targets

Environmental Challenges

• Demand slowdown from downstream sectors
• Changes in market scenario affecting demand
• Increased competition
• Customer attrition
• Resource availability risk (plantation wood)
• Financial risk (low cash flow)
• Technology risk (sub-optimal technology)
• Product commoditization

Mitigation Strategies

• Promoting MDF as preferred product
• Strategically located plants reducing market dependence
• Export presence safeguarding against domestic demand erosion
• High entry barriers in MDF restricting competition
• Brand differentiation making Greenpanel synonymous with MDF
• Better price-value proposition and product availability
• Partnership with farmers for plantation wood
• Well-defined capital allocation and efficient operations
• Investment in cutting-edge European technology
• Focus on high-value products

Supply Chain Management

Responsible Procurement

• Partnership with farmers for wood plantations
• Procurement from 150 MSMEs

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• High-density water-resistant MDF
• CARB MDF
• Moisture-resistant prelaminated MDF

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 15 million saplings planted during the year; aiming for 50 million by FY25
• 3.70 lakh KL reduction in freshwater consumption in FY23
• Reduction in energy consumption through various initiatives (Biomass based energy plant, monitoring energy consumption, timers on streetlights, Dynasteam system etc.)
• MDF production utilizes majority of plant waste
• IGBC Green Factory Building Certification (Andhra Pradesh plant)

Social Achievements

• Mobile medical van covering Chittoor district, touching 3,925 beneficiaries
• Renovation of 3 schools in Udham Singh Nagar and schools in Chittoor district
• Boosting farmer income through agroforestry initiatives (846 farmers, 339 villages, 13.71K acres)

Governance Achievements

• Credit rating upgrade by ICRA & CARE
• Achieved net debt-free status

Climate Goals & Targets

Environmental Challenges

• Arrival of low-cost imported MDF from Vietnam and Thailand impacting domestic players
• Rising input prices due to high crude oil prices leading to margin pressure
• Surplus supply scenario making it difficult to pass on price increases to consumers

Mitigation Strategies

• Exploring newer export markets (Middle East)
• Tapping new customers in central and northeastern states
• Making marketing and sales teams more granular (district-wise deployment)
• Strengthening product portfolio with premium products
• Driving brand visibility through marketing activities (Delhi Capitals sponsorship, TVC launch)

Supply Chain Management

Responsible Procurement

• Focus on local procurement

Climate-Related Risks & Opportunities

Physical Risks

• Changes in precipitation patterns affecting operations in water shortage regions

Transition Risks

• Implementation of emission tariffs and taxes
• Higher fuel/energy costs due to enhanced regulatory stringency
• Changes in regulations, laws and commitments of operating and exporting countries

Sustainable Products & Innovation

• Fire-retardant MDF

Awards & Recognition

• IGBC Green Factory Building Certification

Environmental Metrics

ESG Focus Areas

• Sustainability
• Community Outreach
• Governance
• Climate Change
• Biodiversity
• Supply Chain Sustainability
• Employee Well-being

Environmental Achievements

• Received GreenPro Certification from CII
• Sustainable sourcing of timber from agroforestry plantations (100%)
• Utilization of wood waste as fuel in the energy plant
• Implementation of water conservation measures (ZLD and rainwater harvesting)
• Recycling of process waste

Social Achievements

• Supported 2,963 farmers by distributing free/subsidized saplings
• Distributed 94 brush cutters and power weeders to small and marginal farmers
• Organized medical camps in 68 villages, providing treatment to 2,859 patients
• Partnered with Akshaya Patra Foundation to provide mid-day meals to over 2,000 school children
• Collaborated with Valley of Words Foundation Trust to promote literature
• Organized Udaipur Tales International Storytelling Festival
• Provided a high-resolution thermal drone to the Forest Department for wildlife protection

Governance Achievements

• Received A+ rating from CARE Ratings & ICRA Limited
• Redesigned working capital facilities from Consortium Banking to Multiple Banking
• Established a Gratuity Trust
• Implemented a Rewards and Recognition Scheme
• Implemented a Performance Management System

Climate Goals & Targets

Environmental Challenges

• Increased imports and rise in domestic competition
• Spike in raw material prices and muted availability of timber
• Delay in implementation of mandatory Bureau of Indian Standards (BIS) quality norms

Mitigation Strategies

• Price reduction and special schemes to boost sales
• Investments in capacity expansion (MDF Line 3 project)
• Diversified supplier base, bolstered inventory reserves, improved demand forecasting models
• Launched a cost-effective new product
• Participated in bidding process initiated by Andhra Pradesh Forest Development Corporation to procure wood

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable sourcing of timber
• Partnerships with farmers for wood plantations
• Local procurement

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water scarcity

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: BRSR

Certifications: GreenPro, ISO 14001:2015, ISO 45001:2018, ISO 9001:2015, FSC® Controlled Wood

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Greenpanel MDF (100% renewable agroforestry wood)
• Boilo (High Temperature Water-resistant) grade MDF boards

Awards & Recognition

• Harit Bharat Award for Awareness in the Manufacturing Category