Climate Change Data

Environmental Metrics

ESG Focus Areas

• Education
• Healthcare
• Women empowerment
• Environment protection

Environmental Achievements

• Replaced relevant street and shed lights with energy-efficient LED fixtures.
• Replaced imported energy-consuming components with Indian alternatives.
• Utilized STP plant treated water for gardening to reduce water consumption.
• Improved preventive maintenance of machines to reduce energy loss.

Social Achievements

• Provided free medical care and services through multi-speciality hospitals.
• Organised mobile hospital facilities and improved healthcare facilities in rural areas.
• Contributed towards disaster relief programs for flood-affected areas in Kerala.
• Provided sewage treatment plants in the vicinity of manufacturing units.
• Extended assistance for the ‘Namami Gange’ initiative.
• Provided Police Vans to the ‘Maharashtra Police’.

Governance Achievements

• Full compliance with Corporate Governance guidelines as set out in SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
• All Directors and Senior Management employees confirmed adherence to the Company’s Code of Conduct.
• Established a robust risk management framework.

Climate Goals & Targets

Environmental Challenges

• Muted demand for electrical and communication cables due to subdued growth in end-user sectors (real estate and telecommunications).
• Floods in Kerala impacted business operations.
• Volatile commodity pricing and unwinding of tax holiday benefits impacted margins.
• Competition from unorganized players.
• Volatility in commodity prices.
• Currency fluctuation risk due to imports and exports.
• Supply crunch of raw materials for optical fiber production.

Mitigation Strategies

• Distinct brand recognition enabled resilient financial performance.
• Rs. 200 crore capex planned for enhancing manufacturing capabilities.
• Increased backward integration for better quality control and value addition.
• Aggressive addition of new distributors and dealers to gain market share.
• Launched Finolex House exclusive retail stores.
• Increased spends on advertising and marketing, particularly digital marketing.
• Appropriate foreign exchange hedging policies.
• Negotiation of price variation contracts with vendors.
• Passing on price increases to customers.

Supply Chain Management

Responsible Procurement

• Backward integration for critical cable components.
• Collaborations with leading global players.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Solar cables manufactured using Electron Beam Technology.
• New variants of LAN cables and CCTV cables.
• Electrical switches, lights, fans, and water heaters.

Awards & Recognition

• ‘Expert’s Choice Award in the category of Electrical Wires and Cables’ for 2018.

Environmental Metrics

ESG Focus Areas

• Education
• Healthcare
• Women empowerment
• Environment protection

Environmental Achievements

• Replaced 70W/250W/400W sodium vapour lighting fixtures with 50W/120W 150W/200W LED fixtures
• Installed VFDs on cooling tower pumps to save power
• Replaced imported process control instruments with Indian brands
• Improved preventive maintenance of machines to reduce energy loss

Social Achievements

• Organised mobile hospital facilities and improved healthcare facilities in rural areas
• Provided medical support to underprivileged women
• Provided medical facilities for knee replacement, cataract and dialysis
• Distributed provisions to needy people during the lockdown
• Contributed to medical research institutes for cancer research
• Improved school infrastructure in Maharashtra, Uttarakhand and Jammu
• Provided assistance for ‘Namami Gange’ initiative
• Provided sewage treatment plants near manufacturing units
• Provided police vans to the ‘Nirbhaya Fleet’ of Satara Police
• Provided COVID-19 help through Deendayal Prabodhini, Yavatmal

Governance Achievements

• Full compliance with SEBI Corporate Governance guidelines
• All Directors and Senior Management employees confirmed adherence to the Company’s Code of Conduct

Climate Goals & Targets

Environmental Challenges

• Challenging macroeconomic factors
• Struggling real-estate market
• Liquidity issues
• Halting projects with telecom PSUs
• Dim consumer sentiment
• COVID-19 pandemic
• Sluggish growth in certain end-user sectors (telecommunications and real estate)
• Lockdown and reverse migration of labourers
• Competition from unorganised players
• Raw material price fluctuations
• Currency fluctuation risks
• Geopolitical tensions
• Commodity price volatility
• Monetary risks

Mitigation Strategies

• Cost rationalization/reduction methods
• Expanded total retail touchpoints
• Increased advertisement expenditure
• Implemented strict procedures and processes at plant sites, offices, depots and stores to maintain productivity while keeping workforce and communities safe
• Developed agility within production and distribution networks
• Built resilience in supply chain by collaborating with regular and alternate vendors
• Built up stocks of critical materials
• Greater automation at sites
• Identified new ways to make business leaner and more agile
• Conducted skill-enhancing training programmes
• Followed utmost precaution and highest safety standards
• Used IT solutions to ensure seamless business functioning
• Discouraged physical meetings in favour of virtual conferences
• Encouraged soft copy approvals
• Maintained optimal inventory level and took necessary price hikes or cuts to balance commodity price fluctuations
• Used derivative financial instruments to manage foreign exchange rate risks
• Undertook adequate hedging to minimise impact of adverse exchange rate fluctuations
• Used long-term agreements to protect against currency fluctuation risks
• Actively monitored cashflows and implemented various financing channels
• Undertook extensive analysis before taking decisions on investments and expanding to new geographies
• Implemented business continuity planning

Supply Chain Management

Responsible Procurement

• Sustainable sourcing practices

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• New CCTV Cables
• Tin platted copper conductor
• CCA light weight battery cable
• CIVUS Type Auto Cable
• OFC products (Tight buffer, FTTH, Simple/Duplex, Drop cable, etc.)

Awards & Recognition

• Consumer validated Superbrand India 2009-10
• Experts Choice Award- 2018

Environmental Metrics

ESG Focus Areas

• Education
• Healthcare
• Women empowerment
• Environment protection

Environmental Achievements

• UV filtration system installed in STP plant
• New FRP line with UV curing installed with higher output and energy efficiency
• Several grades of PVC compounds were reformulated to suit higher line speeds and also made environmentally friendly complying with ROHS requirements

Social Achievements

• Organized mobile hospital facilities and improved healthcare facilities in rural areas
• Provided ultrasound machine to medically support economically disadvantaged patients
• Extended medical care and facilities to children suffering from H1B diabetes
• Provided advanced cardiac ambulances for emergency medical needs of the underprivileged
• Supported betterment of school and classroom infrastructure across schools in various states
• Provided school buses for travel needs of school children from financially weaker backgrounds
• Conducted activities for betterment of education and training across various states
• Facilitated the construction of the Tehsil office (panchayat samiti) at Talegaon
• Extended free medical and COVID-19 care services through multi-specialty hospitals
• Held free artificial limbs distribution camps and provided medical support for physically challenged people to empower them
• Provided police van and computer systems to the Police Department for their invaluable contribution to the society
• Launched various initiatives and training programmes to facilitate virtual engagement of workforce with an intent to enhance their physical, mental and overall well-being

Governance Achievements

• Adherence to the highest standards of integrity and corporate governance

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and nationwide lockdown
• Shortage of labour
• International travel restrictions
• Slowdown in the domestic public and private telecom sector
• Slow growth in the real estate sector
• Increasing commodity/raw material prices
• Liquidity crunch in the domestic market
• Intense competition from both organized as well as unorganized players
• Changes in government regulations, legislations, and policies
• Fluctuations in prices of raw materials
• Foreign exchange rate fluctuation risk
• Rising international trade barriers and political disputes
• Pandemic outbreak

Mitigation Strategies

• Enhanced focus on cost, process efficiency, and new product development
• Judicious actions to help ensure continued competitiveness, financial resilience, and business continuity
• Increased digitization and automation across operations
• Utmost precaution and highest safety standards across all locations
• Robust two-tier distribution platform
• Investments in brand building and channel partner engagement
• Product innovation
• Capacity and network expansion
• Backward integration
• Diversification of product mix
• Linking product sales price to the raw material costs
• Long-standing relationships with key suppliers
• Agile procurement policy
• Hedging policy and forward contracts
• Extensive market analysis
• Lean operational and cost structure
• Comprehensive business continuity plan

Supply Chain Management

Responsible Procurement

• Sustainable practice

Climate-Related Risks & Opportunities

Awards & Recognition

• Consumer validated Superbrand India 2009-10
• Experts Choice Award- 2018

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced carbon emissions by implementing energy-efficient equipment and machinery, and maximizing the utilization of solar energy.
• Consumed 6.87 million KWH of electricity from renewable energy sources, resulting in a reduction of 1601.87 MTCO2e emissions.

Social Achievements

• Various healthcare initiatives including support to Maharaj Jagat Singh Medical Trust, Jehangir Hospital, Pawana Hospital, Mangeshkar Medical Foundation, Morya Hospital, and Inlakhs Hospital.
• Promotion of education through construction of school buildings, supplying projectors, water filters, benches, and library books to various schools.
• Community development initiatives including distribution of vehicles to Roorkee Police and Urse police station, and support to old age homes.

Governance Achievements

• Full compliance with Corporate Governance guidelines as set out in SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
• All Directors and Senior Management employees confirmed adherence to the Company’s Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• Escalating prices outpacing the growth of consumer incomes, resulting in weakened consumer sentiment and muted growth within the FMEG segment.
• Regulatory changes to energy efficiency norms impacting the volumes of new products within the FMEG segment.
• Volatility in cost of raw materials such as copper, aluminium and fiber optics impacting manufacturing cost.

Mitigation Strategies

• Strengthening dealer and distributor channels across various regions, bolstering product availability.
• Capacity expansion plan with a capex investment of nearly Rs. 500 crores.
• Backward integration to manufacture optical fiber preforms and expand fiber draw capacity.
• Raw material hedging and long-standing relationships with key suppliers.
• Linking product sales price to raw material costs.

Supply Chain Management

Responsible Procurement

• Sustainable sourcing practices
• Supplier Code of Conduct (SCoC)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions disrupting supply chain

Transition Risks

• Inability to create alternative operational capabilities

Opportunities

• Development of energy-efficient products and renewable energy solutions

Reporting Standards

Frameworks Used: Ind AS

Certifications: ISO 9001, ISO 14000, ISO 45001:2018, ISO 27001

Third-party Assurance: Deloitte Haskins & Sells LLP

Sustainable Products & Innovation

• BLDC fans
• Eco-friendly wires
• BEE 3-star rating LED Bulbs

Environmental Metrics

ESG Focus Areas

• Education
• Skill Development
• Healthcare Initiatives
• Environmental Sustainability
• Community Development
• Women Empowerment
• Livelihood Enhancement

Environmental Achievements

• Reduced CO2 emissions by 347 tons through energy-efficient practices and technological upgrades.
• Installed a 5 MW solar plant at Urse, addressing 20% of the plant's energy needs.

Social Achievements

• Implemented comprehensive Occupational Health and Safety (OHS) management system.
• Established a medical room and appointed a part-time medical officer.

Governance Achievements

• Enhanced business continuity and disaster recovery plans.
• Complied with stringent data security standards.

Climate Goals & Targets

Environmental Challenges

• Elevated commodity prices, especially copper.
• Delays in government-sponsored projects impacting communication cables.
• Price erosion in the FMEG lighting segment.
• Global economic slowdown impacting exports.

Mitigation Strategies

• Adjusting selling prices to pass-through increases in input costs.
• Engaging in hedging strategies and procuring raw materials at average prices.
• Maintaining adequate inventory levels.
• Expanding into the FMEG segment to reduce reliance on the cables and wires industry.
• Increasing exports to minimize exposure to the domestic market.
• Implementing a robust disaster management plan.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Fires
• Heavy rains

Transition Risks

• Changes in regulations
• Compulsory adoption of renewable energy sources

Opportunities

• Utilizes technology that combats climate change by promoting energy-efficient machinery and products.

Sustainable Products & Innovation

• Green Cables
• BLDC fans