Climate Change Data

Grasim Industries Limited

Climate Impact & Sustainability Data (2018-19, 2019-04 to 2020-03, 2020-04 to 2021-03, 2021-04 to 2022-03, 2022-23, 2023-04 to 2024-03)

Reporting Period: 2018-19

Environmental Metrics

ESG Focus Areas

  • Sustainability
  • Water Conservation
  • Employee Well-being
  • Community Development

Environmental Achievements

  • Reduced water consumption by 37% since FY16 per ton of fiber
  • Reduced sulfur emission by 26% since FY16 per ton of fiber
  • Reduced wastewater discharge by 13% since FY16 per ton of fiber
  • Achieved lowest water consumption per tonne of VSF globally
  • Launched Livaeco, an eco-enhanced variant of LIVA with end-to-end traceability
  • Progress towards zero-liquid discharge at Rehla and Ganjam plants

Social Achievements

  • Launched Livaeco and LivaHome brands
  • Expanded Liva brand into home textiles
  • Engaged with Self Help Groups (SHGs) to empower households
  • Provided scholarships and technical education to children
  • Familiarised farmers with innovative cropping techniques
  • Provided quality healthcare facilities
  • Undertook projects to enable physical connectivity to towns

Governance Achievements

  • Acquired Chlor-Alkali Business of KPR Industries
  • Acquired 100% equity of Soktas India Private Limited
  • Implemented a robust Vigil Mechanism for reporting concerns
  • Adopted a Policy on Prevention, Prohibition and Redressal of Sexual Harassment at workplace

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Lower malnutrition rate to 1% to 2% in the next 2-3 years

Environmental Challenges

  • Commodity price volatility
  • Availability of natural resources
  • Scarcity of coal
  • Non-availability of limestone
  • Scarcity of water
  • Low availability of wood
  • Global capacity additions in the VSF business
  • Attrition and non-availability of talent
  • Competition
  • Information Technology risks
  • Environmental risks
  • Industrial safety risks
Mitigation Strategies
  • Securing supplies of key raw materials
  • Minimizing reliance on grid/energy exchange
  • Increasing share of value-added products
  • Focused cost management
  • Entering into long-term contracts
  • Preservation and elongation of limestone reserves
  • Strategic sourcing
  • Continuous reduction in freshwater consumption
  • Water recycling and zero-liquid discharge
  • Import of pulp
  • Representation to government authorities
  • Increasing focus on domestic sales
  • New product applications
  • Continuous benchmarking of HR practices
  • Regular review and monitoring of employee development plans
  • Continuous focus on R&D
  • Proactive action to strengthen technical bench strength
  • Enhanced marketing activities
  • Back-up procedures and data storage at different locations
  • System upgrades
  • Adherence to environmental norms
  • Technology/equipment upgradation
  • Continuous monitoring of regulatory changes
  • Implementation of sustainability initiatives
  • Association with DuPont Safety Resources
  • Development and implementation of critical safety standards
  • Continuous focus on building a safety culture
  • Adequate insurance coverage

Supply Chain Management

Responsible Procurement
  • Preference given to local vendors
  • Training and technical support provided to improve vendor capability

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, OHSAS 18001, ISO 9001, SA 8000, FSC

UN Sustainable Development Goals

  • SDG 1
  • SDG 2
  • SDG 3
  • SDG 6
  • SDG 7
  • SDG 8
  • SDG 9

Company's CSR initiatives align with these SDGs through education, healthcare, sustainable livelihood, infrastructure development, and social reform programs.

Sustainable Products & Innovation

  • Livaeco
  • LivaHome

Awards & Recognition

  • Dun & Bradstreet Corporate Award 2019
  • Golden Peacock Award for Sustainability-2018
  • Excellence in Operations in Manufacturing and Logistics at the IDC Insights Awards 2018
  • Next Gen Technologies award at the ETCIO Annual Conclave 2019
  • 3 Export Awards by SRTEPC
  • Certificate of Appreciation for Sustainable and Impactful CSR projects in Gujarat
  • Gold in the Abby Awards, Goa Fest 2019

Reporting Period: 2019-04 to 2020-03

Environmental Metrics

Total Carbon Emissions:5,910,000 tCO2e
Scope 1 Emissions:51,946,265 tCO2e
Scope 2 Emissions:3,238,228 tCO2e
Total Energy Consumption:80,942,294 MWh
Water Consumption:48,280,000 m3
Waste Generated:2,114,310 tons

ESG Focus Areas

  • Environmental Performance
  • Social Performance
  • Governance (implied through assurance statement)

Environmental Achievements

  • Reduced Scope 2 GHG emissions from 1.91 Million MT in FY 2018-19 to 1.92 Million MT in FY 2019-20 (Note: This is a minimal reduction and may not be considered a significant achievement).

Social Achievements

  • Improved Lost Time Injury Frequency Rate (LTIFR) for full-time employees from 1.23 to 0.45 per million hours worked.
  • Maintained high employee engagement (88% in both FY19 and FY20)

Governance Achievements

  • Independent assurance of sustainability data by Ernst & Young Associates LLP

Climate Goals & Targets

Environmental Challenges

  • Scope for improving internal data controls, documentation management, and methods of calculation for sustainability indicators.
Mitigation Strategies
  • Areas for improvement were brought to the attention of management (details in a separate management letter).

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Third-party Assurance: Ernst & Young Associates LLP

Reporting Period: 2020-04 to 2021-03

Environmental Metrics

Total Carbon Emissions:5.25 million MT CO2e
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:72.87 million GJ
Water Consumption:47.79 million m3
Waste Generated:0.63 million MT
Carbon Intensity:Reduced carbon intensity in DCA between FY17 and FY21

ESG Focus Areas

  • Sustainability
  • Climate Change
  • Water Conservation
  • Emission Reduction
  • Waste Management
  • Community Development
  • Employee Well-being
  • Responsible Sourcing
  • Circular Economy
  • Governance

Environmental Achievements

  • 14% Reduction in water intensity in domestic chlor alkali business
  • 47% Reduction in water intensity in VSF (compared to FY15 baseline)
  • 12% Reduction in air emissions and water intensity compared to the FY17 baseline
  • EU BAT technology for VSF manufacturing implemented in Vilayat plant
  • Commissioned ~182MW of new solar capacity in FY21, taking total capacity to 502 MW
  • Achieved FEM 3.0 score of 92% (amongst the highest in MMCF industry globally)

Social Achievements

  • Launched employee well-being program including COVID-19 relief measures
  • CSR reach across 7 states, impacting 3,100,000+ beneficiaries in 298 villages
  • Total CSR expenditure of ₹84.66 Crore
  • Initiatives for women empowerment, including SHGs and vocational training
  • Healthcare initiatives impacting 2,12,000 patients
  • Educational initiatives supporting 6,349 students

Governance Achievements

  • Ranked 11th in DJSI ESG ranking (2020)
  • 50% Independent Directors on Board
  • Implementation of Information Security Management System (ISMS) guided by ISO 27001:2013 standards
  • Established a robust Vigil Mechanism for reporting of concerns

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality in VSF business on both Scope-1 and Scope-2
Medium-term Goals:
  • Increase share of VAP in VSF and Chemicals business by 35-40% by FY25
  • Improve chlorine integration to 40% by FY25
  • Increase overall VSF capacity to 810 KTPA
  • Increase Chemicals capacity to 1457 KTPA
Short-term Goals:
  • Reduce sulphur-to-air release at all fibre sites by 70% by 2022
  • Implement EU BAT technology for VSF manufacturing at all Indian sites by 2022
  • Reduce water intensity in VSF manufacturing process by 50% by 2025
  • Reduce pollution load in effluent by 2022

Environmental Challenges

  • COVID-19 pandemic impacting global and Indian economies, causing business disruptions and supply chain issues
  • Price volatility of input materials and products
  • Energy intensive operations and power-related risks
  • Competition risk in global commodity markets
  • Delays in project execution
  • Information technology/cyber security risks
  • Environmental and regulatory risks
  • Industrial safety, employee health and safety risks
  • Activism risks
  • Pandemic-related risks
  • Investment impairment risks
  • Climate change risks
Mitigation Strategies
  • Robust planning and continuous communication with employees
  • Cost savings and working capital management
  • Focus on exports for VSF
  • Introduction of new products (e.g., Liva Antimicrobial)
  • Expansion projects on track
  • Implementation of Group level Information Security policy
  • Implementation of closed-loop technology and ZLD plants
  • Strengthening Safety Management System
  • Community engagement programs and grievance management procedures
  • Crisis Management teams and Business Continuity Plan
  • Regular review of investments and impairment testing
  • Evaluating climate change risks and opportunities as per TCFD recommendations

Supply Chain Management

Supplier Audits: 140 suppliers audited with 404 evaluations, 83 risk assessments conducted

Responsible Procurement
  • ABG Supplier Code of Conduct and Sustainability Policies
  • Formalized processes to identify potential sustainability risks
  • EHS certifications (periodic safety audits, ISO 14000 compliance, OHSAS 18001 compliance)

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather, flooding, drought
Transition Risks
  • Regulatory changes, market shifts
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option, IIRC Integrated Reporting Framework, UNGC, UN SDGs, CDP, NVGs, Companies Act, 2013, Indian Accounting Standards, SEBI Regulations

Certifications: ISO 14001:2015 (all pulp and fibre manufacturing sites), OHSAS 18001, ISO 27001:2013 (Textile, Fertilisers and two Chlor-Alkali units), STANDARD 100 by OEKO-TEX®, USDA Bio Based Certification, OK Certification, RCS (Recycled Claim Standard)

Third-party Assurance: Ernst & Young Associates LLP (limited assurance)

UN Sustainable Development Goals

  • Goal 2
  • Goal 3
  • Goal 4
  • Goal 5
  • Goal 6
  • Goal 7
  • Goal 8
  • Goal 10
  • Goal 11
  • Goal 12
  • Goal 13
  • Goal 14
  • Goal 15
  • Goal 16
  • Goal 17

Initiatives contributing to various SDGs

Sustainable Products & Innovation

  • LivaEco
  • Liva Reviva
  • NonWoven products
  • Liva Antimicrobial
  • Purocel EcoFlush

Awards & Recognition

  • Golden Peacock Global Award for Sustainability (2020)
  • Ranked 11th in S&P DJSI sectoral indices (2020)
  • Investor Relations Award 2020-ESG Disclosures
  • World CSR Leadership Award-2020
  • Energy Efficient Unit Award
  • CSR INDIA 2020 Award
  • Special Award for Resiliency
  • Par Excellence Award
  • Gold Award in India Green Manufacturing Challenge
  • Commendation for Significant Achievement in Environment Management

Reporting Period: 2021-04 to 2022-03

Environmental Metrics

Total Carbon Emissions:6,60,23,953 tCO2e/year (Scope 1) + 24,39,149 tCO2e/year (Scope 2) + 48,10,000 tCO2e/year (Scope 3)
Scope 1 Emissions:6,60,23,953 tCO2e/year
Scope 2 Emissions:24,39,149 tCO2e/year
Scope 3 Emissions:48,10,000 tCO2e/year
Renewable Energy Share:17,65,098.6 / (9,09,66,497.9 + 17,65,098.6) * 100% ≈ 1.9%
Total Energy Consumption:9,09,66,497.9 MWh/year (non-renewable) + 17,65,098.6 MWh/year (renewable)
Water Consumption:33.14 Million m3/year
Waste Generated:17,41,679.2 tons/year (recycled/reused) + 1,06,308.5 tons/year (disposed)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • 56% reduction in specific water consumption by VSF business in the last 7 years in FY22
  • Nagda VSF plant will be the first to achieve zero liquid discharge in the viscose industry globally (expected completion by Q2 FY22)
  • Developed and implemented environment-friendly Lyocell technology inhouse which has near Zero environmental impact

Social Achievements

  • 81% to 97% of actively engaged employees from FY19 to FY22
  • INR 42,47,00,000 cash contributions in FY22

Governance Achievements

  • Regular self-assessment of board performance
  • Formal Evaluation Framework for evaluation of the Board’s performance

Climate Goals & Targets

Long-term Goals:
  • Net Zero by FY50 (ABG)
Medium-term Goals:
  • 30% reduction in GHG emissions of the main product by FY30 (CFI)
  • Net Zero carbon emissions across all operations by 2040 (VSF)
  • Reduce greenhouse gas (GHG) emissions intensity to half by 2030 (VSF)
Short-term Goals:
  • Below 80% reduction in LTIFR by 2025 (CFI)
  • 30% reduction in specific freshwater consumption of the main product by FY25 (CFI)
  • All units to be ZLD in water-stressed areas by FY25 and water positive by FY30 (CFI)
  • Increase three times woman employees in Management Cadre by FY25 (CFI)
  • 100% of employees to receive Code of Ethics training; Minimum 1 training day per employee per year (CFI)
  • 100% of our facilities to participate in community engagement (CFI)
  • Reduction in LTIFR by 90% (VSF)
  • Reduction in water intensity in VSF manufacturing process by 50% (VSF)
  • Reduction in COD to meet EU BAT compliance by FY22 (VSF)
  • EU BAT Implementation at all Indian Sites by FY25 (VSF)

Environmental Challenges

  • Transition risk due to water stress
  • Supply chain disruptions due to climate change factors
Mitigation Strategies
  • Continuous reduction in freshwater consumption by applying the 4R principles (reduce, reuse, recycle and regenerate)
  • Creating new reservoirs closer to plant locations
  • Research and Development on proven technologies across the World that rely on lesser water consumption
  • Promote local vendors and suppliers for critical raw material/key ingredient
  • Explore vendors from different geographies while giving priority to local vendors
  • Ensure skilled manpower employed at units are local and their access to plants is not hampered during extreme weather events
  • Disaster management plan at Corporate and Unit level
  • Evaluating climate change risks and opportunities as per the Task Force on Climate Related Financial Disclosures (TCFD) recommendations

Supply Chain Management

Supplier Audits: 29.57% of critical suppliers assessed annually, 25.30% assessed at least once every 3 years

Responsible Procurement
  • Source only from sustainably managed forests and adhere to FSC®, SFI® and PEFCTM standards for wood sourcing

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (storms, cyclones, floods) disrupting supply chain
  • Water stress impacting operations
Transition Risks
  • National Regulatory Scenario
  • Introduction of Emission Trading Scheme
  • Science-Based Target
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: IIRC framework, GRI Standards - Core Criteria

Certifications: Null

Third-party Assurance: Ernst & Young Associates LLP

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Environment-friendly Lyocell technology

Awards & Recognition

  • Not disclosed

Reporting Period: 2022-23

Environmental Metrics

Total Carbon Emissions:672,55110 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:6,72,55,110 tCO2e/year
Scope 2 Emissions:33,11,340 tCO2e/year
Scope 3 Emissions:97,72,535 tCO2e/year
Total Energy Consumption:965,121,74 MWh/year (non-renewable)
Water Consumption:40.93 million cubic meters/year (net fresh water)
Waste Generated:1,21,765 tons/year (disposed)

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • 100% of sites are ISO 14001:2015 certified
  • Reduced energy consumption
  • Increased renewable energy consumption
  • Significant waste recycled/reused

Social Achievements

  • Implemented various employee development programs (FOCUS 50, SAMARTHYA)
  • Improved employee engagement scores
  • Reduced LTIFR for both employees and contractors

Governance Achievements

  • Implemented a three-tier cybersecurity governance model
  • ISO 27001 certification obtained at company locations
  • Risk Management and Sustainability Committee (RMSC) established

Climate Goals & Targets

Environmental Challenges

  • Reducing greenhouse gas emissions
  • Improving water efficiency
  • Maintaining high employee engagement
Mitigation Strategies
  • Investing in renewable energy
  • Implementing energy reduction initiatives
  • Implementing water conservation measures
  • Conducting employee engagement surveys and implementing improvements based on feedback

Supply Chain Management

Supplier Audits: 40% of significant Tier-1 suppliers assessed in FY2023

Responsible Procurement
  • ESG criteria considered in supplier screening

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, BRSR

Certifications: ISO 14001:2015, ISO 27001

Sustainable Products & Innovation

  • Blended cements
  • Birla Spunshades

Reporting Period: 2023-04 to 2024-03

Environmental Metrics

Total Carbon Emissions:11.35 million tCO2e/year
Scope 1 Emissions:5.31 million tCO2e/year
Scope 2 Emissions:1.19 million tCO2e/year
Scope 3 Emissions:4.85 million tCO2e/year
Renewable Energy Share:11%
Total Energy Consumption:68.28 million GJ/year
Water Consumption:53.91 million m3/year
Waste Generated:10,27,928 tons/year
Carbon Intensity:251.35 tCO2e/crore of turnover

ESG Focus Areas

  • Climate Change
  • Diversity
  • Governance
  • Community Development
  • Responsible Supply Chain
  • Resource Efficiency
  • Occupational Health and Safety
  • Human Rights

Environmental Achievements

  • Achieved 13% renewable power share (up from 8% in FY2022-23)
  • Increased proportion of recycled water to 50% of total water consumption (up from 46% in FY2022-23)
  • Reduced GHG emission intensity by 17% in Cellulosic Staple Fibre
  • Achieved 94% waste recovery through reuse and recycling
  • 46% reduction in waste directed to landfill

Social Achievements

  • Launched employee well-being program (AB Multiply) enrolling 26,000 employees
  • Increased access to mental health counselling services (over 1,000 employees or family members sought help, a 25%+ increase)
  • Improved employee engagement scores (ABG Vibes 2023 survey)
  • Increased women representation in management cadre to 15.6%
  • Formed 129 women SHGs, supporting 450 SHGs in total
  • Provided skills training to 4,863 rural youth (60%+ women)

Governance Achievements

  • Implemented robust processes for ESG reporting and assurance
  • Developed a comprehensive net zero roadmap
  • Successfully completed a rights issue of ₹4,000 crore (oversubscribed by nearly two times)
  • Amalgamation of Aditya Birla Solar Limited with Aditya Birla Renewables Limited

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050
Medium-term Goals:
  • Reduce GHG emission of main product (Chlor-Alkali) by 30% by 2029-30
  • Reduce GHG emission intensity by 50% in CSF by 2029-30
  • Increase renewable power share to 70% in Textiles by 2029-30
  • Birla Pivot to reach $1 billion revenue in 3-4 years
Short-term Goals:
  • Reduce water consumption by 50% in CSF manufacturing by 2024-25
  • Increase renewable power share to 25% by 2024-25
  • Grow circular products to 100,000 tonnes per year by 2024-25
  • Birla Opus to reach ₹10,000 crore revenue by 2027-28

Environmental Challenges

  • Subdued demand and lower key input prices impacting Cellulosic Fibres prices
  • Volatility in global commodity prices impacting Caustic Soda realisations
  • Low priced exports from China posing challenges to Cellulosic Fashion Yarn demand
  • Subdued demand from selected end-user industries and oversupply of Chlorine derivatives impacting Chemicals profitability
  • Increased imports affecting demand and prices in Cellulosic Fibres and Chemicals
  • Increased competition impacting market share
  • Geopolitical shifts leading to supply chain disruptions
  • Emerging regulations and policies
  • Non-availability of water impacting Cellulosic Fibre and Chemical Businesses
  • Demand-supply mismatch of chlorine
  • High volatility in global prices of inputs and finished products
  • Industrial safety, employee health and safety risks
  • Information Technology/Cyber Security risks
  • Climate change leading to increased frequency and severity of natural disasters
  • Investments impairment risk
  • Foreign Exchange fluctuation risk
  • Liquidity Risk/Interest Rate Risk
Mitigation Strategies
  • Exploring new markets and improving penetration in existing markets for Cellulosic Fibres
  • Expanding specialty products portfolio for Cellulosic Fibres
  • Focusing on R&D for application and new product development for Cellulosic Fibres
  • Increasing customer base and retaining market share through a customer-centricity approach for Chemicals
  • Expanding capacity to meet growing demand for Cement
  • Diversifying supplier base and investing in more resilient supply chains
  • Implementing green technologies and developing sustainable products
  • Increasing the use of renewable sources of energy
  • Diversifying product portfolio to include more sustainable and environmentally friendly options
  • Continuous reduction in freshwater consumption
  • Implementing Zero Liquid Discharge plans across plants
  • Full capacity utilisation of chlorine derivatives
  • Continuous benchmarking of HR practices
  • Proactively strengthening technical and functional bench strength
  • Focusing on talent development
  • Exploring new sources and improving negotiation for Cellulosic Fibres
  • Focusing on cost reduction and higher efficiency for Cellulosic Fibres
  • Optimizing sourcing of key raw materials for Chemicals
  • Securing coal linkage and increasing the share of renewable power for Chemicals
  • Long-term contracts with bulk manufacturers for Speciality Chemicals
  • Procuring imported wool against confirmed customer orders for Textiles
  • Developing and implementing safety standards/SOPs
  • Implementing Group-level Information Security policy
  • Regularly upgrading systems with latest security standards
  • Vulnerability assessment and penetration testing
  • Identifying and implementing green technologies
  • Regular review of investments
  • Exhaustive Forex hedging guidelines
  • Maintaining a strong balance sheet
  • Maintaining sufficient unutilised credit limits

Supply Chain Management

Supplier Audits: Sustainability assessments for key suppliers covering about 66% of procurement spend

Responsible Procurement
  • Supplier Code of Conduct
  • Prioritising suppliers with better ESG performance
  • ESG training for suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather, flooding, droughts
Transition Risks
  • Regulatory changes, market shifts
Opportunities
  • Development of energy-efficient products
  • Increased adoption of renewable energy

Reporting Standards

Frameworks Used: IFRS, Integrated Reporting Framework, GRI Standards (2021), BRSR (SEBI), UNGC, UN SDGs, CDP, TCFD

Certifications: ISO 14001, ISO 45001, ISO 27001

Third-party Assurance: BDO India LLP

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 9 (Industry, Innovation and Infrastructure)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)

Initiatives contributing to these goals through renewable energy adoption, sustainable manufacturing practices, community development, and responsible resource management

Sustainable Products & Innovation

  • Birla Viscose Ecosoft
  • Birla SaFR
  • Birla Viscose Intellicolor
  • Liva Reviva

Awards & Recognition

  • CII-ITC Sustainability Awards
  • Golden Peacock CSR Award
  • CII IP Award
  • ICC Award
  • ICC Social Impact Award