Climate Change Data

Bajaj Hindusthan Sugar Limited

Climate Impact & Sustainability Data (2022-23, 2023-2024)

Reporting Period: 2022-23

Environmental Metrics

Scope 1 Emissions:2,506 tCO2e/year
Scope 2 Emissions:1,19,247 tCO2e/year
Total Energy Consumption:716.57 MWh/year
Water Consumption:23,03,628 m3/year
Waste Generated:4007.65 tons/year

ESG Focus Areas

  • Community Development
  • Water Resource Management
  • Sustainable Agriculture

Environmental Achievements

  • Implemented Zero Liquid Discharge system at Palia distillery.
  • Increased bagasse saving due to improved boiler efficiency.
  • Implemented various water conservation measures, including rainwater harvesting and reuse of treated water.

Social Achievements

  • Reached 1657 villages, benefitted 4,26,260 families and covered a population of 20,32,948 through CSR programs.
  • Women empowerment initiatives benefitted 82,186 women.
  • Skill and entrepreneurship development programs benefitted 5516 youths.

Governance Achievements

  • Complied with corporate governance requirements under the Companies Act, 2013 and SEBI (LODR) Regulations, 2015.
  • Established a Vigil Mechanism/Whistleblower Policy.
  • Conducted performance evaluation of the Board, Directors, and Committees.

Climate Goals & Targets

Environmental Challenges

  • High raw material (sugarcane) and other input costs.
  • Relatively lower realization of sugar.
  • High depreciation and finance expenses.
  • Sugar price risk due to market fluctuations.
  • Outstanding cane dues and funds for servicing debt obligations.
  • Losses at PAT level despite positive EBITDA.
Mitigation Strategies
  • Diverting sugarcane for ethanol production through B-heavy molasses.
  • Improving operational efficiency and operating parameters.
  • Increasing production of alcohol/ethanol using B-heavy molasses.
  • Improving revenue from by-products.
  • Increasing cogeneration export.
  • Reducing overheads, finance, and other costs.
  • Monetizing certain non-core assets.
  • Debt restructuring as per RBI’s S4A Scheme.
  • Discussing a debt resolution plan with lenders.
  • Exploring options for corporate restructuring.
  • Improving sugar quality by improving color (ICUMSA), increasing refined sugar capacity, entering branded sugar segment, and increasing sales to institutional buyers.

Supply Chain Management

Responsible Procurement
  • Sourcing sugarcane primarily from local farmers.

Climate-Related Risks & Opportunities

Physical Risks
  • Changes in rainfall patterns, temperatures, and extreme weather events affecting crop yields and quality.
Transition Risks
  • Increasing greenhouse gas emissions leading to regulatory and reputational risks.
Opportunities
  • Growing demand for renewable energy.

Reporting Period: 2023-2024

Environmental Metrics

Scope 1 Emissions:2127.25 Metric tonnes of CO2 equivalent
Scope 2 Emissions:9109.85 Metric tonnes of CO2 equivalent
Total Energy Consumption:722.99 Million Units (MUs)
Water Consumption:24,73,802.60 kilolitres
Waste Generated:4293.494 metric tonnes

ESG Focus Areas

  • Sustainability
  • Social Responsibility
  • Community Development
  • Environmental Conservation
  • Renewable Energy

Environmental Achievements

  • Successful resolution of NCLT issue.
  • Inked a deal for repurposing press mud to generate compressed biogas (CBG), contributing to greenhouse gas emission reduction.
  • Investments in co-generation plants utilizing bagasse to generate electricity, lowering dependence on fossil fuels.
  • Improved sugar recovery (10.89% vs 9.74% in the previous year).

Social Achievements

  • Continuous skill development programs for employees.
  • Strong relationships with sugarcane farmers, ensuring timely payments at government-fixed prices.
  • Collaboration with research institutions to develop high-yielding and disease-resistant sugarcane varieties.
  • Community development initiatives focused on education, healthcare, and rural development.

Governance Achievements

  • Successful resolution of NCLT issue.
  • Compliance with corporate governance requirements under the Companies Act, 2013 and SEBI (LODR) Regulations, 2015.

Climate Goals & Targets

Environmental Challenges

  • Evolving market dynamics and reduced sugar exports from India impacting export volumes.
  • Limitations on diverting sugar towards ethanol production.
  • Higher raw material (sugarcane) and other input costs.
  • Relatively lower realization of sugar.
  • Higher depreciation and finance expenses.
  • Losses at PAT level despite positive EBITDA.
Mitigation Strategies
  • Proactively shifted cane crushing operations to C Molasses instead of B Molasses or syrup.
  • Continuous striving to improve cane quality through investments in cane development initiatives.
  • Leveraging strategic geographic presence across Uttar Pradesh to cater to diverse regional markets.
  • Significantly increased ethanol production.
  • Advocating for price revision for syrup and B-heavy molasses-based ethanol and increase in MSP for sugar.

Supply Chain Management

Responsible Procurement
  • Sourcing from local farmers (90% of raw material)

Climate-Related Risks & Opportunities

Physical Risks
  • Variations in rainfall patterns, temperatures, and extreme weather events affecting crop yields.
Transition Risks
  • Rising greenhouse gas emissions posing regulatory and reputational risks.
Opportunities
  • Development of climate-resilient crop varieties, efficient irrigation techniques, alternative energy sources.

Sustainable Products & Innovation

  • Compressed biogas (CBG) from press mud.