Climate Change Data

Environmental Metrics

ESG Focus Areas

• Green Mobility
• Economic Performance
• Climate Change
• Social Responsibility

Environmental Achievements

• 27% reduction in GHG Emission (Scope-1&2) compared to the base year (2013-14)
• 21% of total power consumed in FY 2016-17 contributed by renewable energy sources
• 16% Savings in Energy Consumption per Tonne of Finished Good over Base Year (2013-14)
• Energy savings of 311453 GJ over Base Year (2013-14)
• Kankroli Plant achieved a specific Water Consumption of 1.7 Litre/Kg, one of the lowest among all Tyre Plants across the world.
• Achieved “REACH” Compliance & “SMARTWAY” certification for export to USA & Europe
• Process scrap/waste below 1%

Social Achievements

• Soles to Souls initiative partnered with Footwear Design & Development Institute (FDDI) to recycle old tyres into footwear & accessories
• Construction of over 1100 toilets in rural areas in FY17 as part of Swachh Bharat Mission
• Livelihood enhancement initiatives such as agriculture improvement and livestock development programs
• Training unemployed youths in various trades
• Water conservation activities such as field bunding, trenching, farm pond deepening/ de-silting
• Addressed reproductive and child healthcare issues in remote tribal areas of Rajasthan
• Actively engaged in prevention of HIV/AIDS, reaching more than 2.5 Lakhs people
• CII National HR Excellence Award for significant achievement in HR excellence

Governance Achievements

• Reaffirmed commitment to highest standards of Corporate Governance practices
• Compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
• Formal annual evaluation of Board performance and Committees
• Code of Corporate Ethics and Conduct in place
• Policy on Vigil Mechanism for reporting concerns or grievances
• Policy to ensure safety of women and prevention of sexual harassment

Climate Goals & Targets

Environmental Challenges

• Weakened global economic environment and geopolitical tensions impacting export revenues
• Threat of Chinese imports
• Raw material shortages
• Operational risks like equipment obsolescence, power and water shortages
• Market risks
• Technology risks
• Increased input costs due to surge in raw material prices

Mitigation Strategies

• Identifying relatively stable markets and enhancing sales
• Expanding product range
• Deploying new sales and service teams
• Developing products to compete with Chinese tyres
• Pursuing governmental agencies for anti-dumping duties
• Long-term tie-ups with major suppliers and exploring alternative sources
• Keeping additional raw material stocks
• Substituting materials in short supply
• Continuous equipment monitoring and upgrades
• Preventive maintenance
• Investment in equipment modernisation
• Installing power backups
• Arrangements with power generation companies
• Identifying alternative water sources
• Rainwater harvesting
• Measures to reduce water consumption
• Expanding network, forging tie-ups, launching new products
• Emphasis on demand creation, customer retention, and brand-building
• Real-time demand tracking
• E-commerce platform
• Leveraging innovation to enhance speed-to-market
• Evaluating energy usage and shopfloor productivity
• Benchmarking products
• Timely capacity expansions
• Upgrading facilities
• Improving employee skills
• Bolstering infrastructure
• Using knowledge from international experts/networks
• Improvement in operational efficiencies

Supply Chain Management

Responsible Procurement

• Centralised purchase at Head Office for all tyre manufacturing units
• Orders placed on quarterly/ half yearly/yearly basis
• Exclusive & dedicated outsourced manufacturing units for automotive tubes and flaps
• Assistance to outsourced units on system development and technology inputs

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Floods
• Droughts

Transition Risks

• Regulatory changes
• Market shifts

Reporting Standards

Frameworks Used: GRI Standards - Core Option

Certifications: ISO 9001:2008 / TS 16949: 2009, ISO 14001: 2004, OHSAS 18001:2007, ISO 50001:2011, SA 8000 : 2008, ISO 27001:2013

Third-party Assurance: BSI (British Standards Institution)

Sustainable Products & Innovation

• Eco-friendly ‘green’ tyre
• Full silica based tyre
• Ranger Series
• UX Royale
• Blaze

Awards & Recognition

• Industry Leadership Award by Indo-American Chamber of Commerce
• CII National HR Excellence Award, 2016
• FICCI Corporate Social Responsibility Award 2015-16
• Platinum Category Award, 2016 by Indian Green Building Council (IGBC)
• Excellent Energy Efficient Unit” Award from CII
• Lakshmipat Singhania - IIM, Lucknow National Leadership Award
• Superbrand 2016-17 by Super Brand Council of India
• Rajasthan Energy Conservation Award (RECA-2016)
• Copper Excellence Award for Energy Efficiency
• National Energy Conservation Award-2016

Environmental Metrics

ESG Focus Areas

• Economic performance
• Climate change
• Social responsibility

Environmental Achievements

• Moderated carbon footprint from 1.172 CO2 equivalent per tonnes of output in 2017-18 to 1.073 CO2 equivalent in 2018-19
• Achieved five-year target (base year 2013-14) to reduce greenhouse gases by 44% in 2018-19
• Moderated energy consumption from 10.2 GJ per tonne of the end product to 9.8 GJ per tonne
• Reduced raw water consumption from 2.42 kl per tonne of the end product to 2.18 kl
• Increased renewable power in its power mix from 3.5% in 2015-16 to 39% in 2018-19
• Maintained process waste below 1%
• Kankroli plant achieved possibly the lowest water use per kg of tyre manufactured globally (1.25 litres/kg)

Social Achievements

• Partnered with the Indian Government’s Swachh Bharat Mission, helping in the construction of more than 700 toilets in rural India in FY19
• Implemented rural livelihood enhancement initiatives such as agriculture improvement and livestock development programs
• Trained unemployed youth in need-based trades
• Addressed reproductive and child healthcare issues in remote tribal areas of Rajasthan
• Engaged actively in the prevention of HIV/AIDS, reaching out to more than 2.5 lakh people

Governance Achievements

• Strengthened risk management system
• Concluded three wage agreements without a single day’s production loss
• Certified as “Great Place to Work” by Great Place of Work Institute for the year 2019

Climate Goals & Targets

Environmental Challenges

• Market sluggishness
• Rising competition
• Increased cost of raw materials (natural rubber, crude oil derivatives)
• Economic slowdown
• NBFC crisis affecting credit flows
• Higher vehicle insurance costs
• Regulatory changes
• Water scarcity
• Talent retention

Mitigation Strategies

• Widened geographic footprint
• Product and channel development
• Sourced local natural rubber
• Improved manufacturing efficiencies
• Invested in renewable energy
• Implemented water conservation initiatives
• Employee engagement programs
• Robust risk management structure
• Continuous skill upgradation

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Robust material evaluation and supplier performance evaluation system
• Emphasis on local suppliers
• Encouragement of state-of-the-art technologies and superior environment and safety management practices

Climate-Related Risks & Opportunities

Physical Risks

• Floods impacting natural rubber production

Transition Risks

• Stricter regulations on rolling resistance

Opportunities

• Development of low rolling resistance tyres

Reporting Standards

Frameworks Used: GRI Standards - Core Option, AA1000AS (2008 with 2018 Addendum)

Certifications: ISO 14001, ISO 50001

Third-party Assurance: BSI (British Standards Institution)

UN Sustainable Development Goals

• SDG 1
• SDG 2
• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 8
• SDG 10
• SDG 11
• SDG 13
• SDG 15
• SDG 17

CSR initiatives aligned with various UN SDGs

Sustainable Products & Innovation

• Low rolling resistance tyres
• Green tyres

Awards & Recognition

• Golden Peacock Environment Award
• National Water Awards for Excellence in Water Management
• Fame Environment Excellence Award
• Gold Medal in the National Awards for Manufacturing Competitiveness
• Energy Efficient Unit in CII 19th National Energy Management Award
• Super Brand 2019
• Best Energy Efficient Case Study at 2nd CII National Energy Efficiency Circle Competition
• 7th ACEF Asian Award for Excellence in CSR

Environmental Metrics

ESG Focus Areas

• Planet
• People
• Product
• Process
• Profit

Environmental Achievements

• Reduced greenhouse gas emissions by 55% (base year FY 2013-14)
• Achieved total energy consumption of 8.92 GJ/tonne of production (among top 3 in the sector worldwide)
• 55% of power requirement met from renewable sources
• Achieved 'Zero Waste to Landfill' and 'Single Use Plastic Free' certifications for all 5 plants
• Global benchmark for lowest raw water use per kg of tyre manufactured

Social Achievements

• Recognised as a Great Place to Work in 2020-21
• Received Sword of Honour from British Safety Council for all Indian plants
• Total reportable accidents declined by 33% since FY 2019-20
• Implemented various CSR programs benefiting 100,000+ individuals, focusing on health, sanitation, education, and livelihoods

Governance Achievements

• 58.33% Independent Directors on the Board
• 16.67% Women Directors on the Board
• Implemented a new digital claim management process, resolving 80% of claims within minutes

Climate Goals & Targets

Environmental Challenges

• Economic slowdown impacting tyre demand
• Global pandemic affecting international business and supply chains
• Raw material supply disruptions
• Technology changes requiring new product development

Mitigation Strategies

• Developed micro-contingency planning and invested in digital technologies to address pandemic challenges
• Diversified raw material sourcing globally
• Invested in R&D to develop new products for changing market needs
• Implemented various measures to ensure business continuity during lockdowns

Supply Chain Management

Responsible Procurement

• Selection of responsible suppliers aligned with sustainability vision
• Training suppliers on sustainability aspects
• Regular supplier audits and feedback
• Collaboration with suppliers on technology adoption and best practices

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts towards electric vehicles

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 14001, ISO 45001, IATF 16969, ISO 50001, ISO 27001, SA 8000, Zero Waste to Landfill, Single Use Plastic Free, Zero Liquid Discharge (Chennai plant)

Third-party Assurance: BSI (British Standards Institution)

Sustainable Products & Innovation

• Smart tyres
• Green tyres with low Rolling Resistance Coefficient (RRC)

Awards & Recognition

• Frost & Sullivan Award
• TERI Sustainability 4.0 Award
• 3rd Innovative Practices Award for Sustainable Development Goals
• Great Place to Work award
• Sword of Honour Award from British Safety Council
• Superbrand 2021
• Iconic Brand of India 2020
• Gold award for Innovation in Digital Marketing
• Silver for Marketing Campaign of the Year
• Digital Campaign of the Year award
• Gold award at DIGIXX 2021 Awards
• Trusted Brand 2020
• Best Digitisation Kaizen Award

Environmental Metrics

ESG Focus Areas

• People
• Planet
• Process
• Product
• Prosperity

Environmental Achievements

• Reduced GHG emissions by 6% from the previous year.
• Reduced energy consumption by 1% from the previous year.
• Reduced water consumption by 8% from the previous year.
• Achieved Zero Waste to Landfill certification across all manufacturing locations.
• Eliminated single-use plastics at all plants.
• Increased renewable energy consumption to 23% from the previous year.
• Increased the share of harvested rainwater in overall annual water usage to 1.35% from the previous year.
• 57% reduction in GHG emissions since 2013-14.

Social Achievements

• Certified as a 'Great Place to Work' for the 3rd consecutive year.
• Total reportable accidents declined by 20% compared to the previous financial year.
• Over 10 lakh cumulative beneficiaries of CSR projects.
• Launched JK CARES program to support families of employees who lost their lives to COVID-19.
• Mission 100% Vaccination program achieved full vaccination for all employees, their families, and business partners.

Governance Achievements

• 58.33% Independent Directors on the Board, including 1 Independent Woman Director.
• 98% average attendance in Board meetings.
• All contracts or arrangements or transactions entered into by the Company with related parties were in the ordinary course of business and on an arm’s length basis.

Climate Goals & Targets

Environmental Challenges

• Uncertain global economic scenario due to high inflation, rising commodity prices, geopolitical uncertainty, and supply chain disruptions.
• Technology risk due to stringent OEM requirements, regulatory changes, and the rapid growth of electric vehicles.
• Supply chain risk due to lockdowns, geopolitical conflicts, trade wars, and realignment of sourcing strategies.
• Supply and capacity risk due to healthy demand in domestic and export markets.

Mitigation Strategies

• Diversified geographical presence in export markets and focused on channel expansion and increased penetration in the replacement market.
• Working towards catering to the newer specifications of EV vehicles and already supplying such tyres. Leveraging R&D capabilities.
• Increased approved sources and established newer mechanisms to ensure a smooth and fast transition to alternate sources. Managed logistics in high-risk high-volume areas. Executed long-term contracts with shipping lines/freight forwarders and explored multiple ports.
• Regularly assessed capacity and spent ₹200 crore to ensure capacity generation to meet growing demand.

Supply Chain Management

Responsible Procurement

• Sustainable Procurement Policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, Value Reporting Foundation (erstwhile IIRC)

Certifications: ISO 14001

Third-party Assurance: BSI

Sustainable Products & Innovation

• Smart Tyres
• Puncture Guard Tyres
• EV Tyres
• Fuel-efficient tyres with low Rolling Resistance Coefficient (RRC)

Awards & Recognition

• CII Active Customer Engagement Award
• Economic Times Iconic Brand Award 2021
• Brand of the Decade 2021
• 'Great Place to Work' Certification
• India’s 30 Best Workplaces in Manufacturing
• Globe of Honour Award (British Safety Council)
• CII National Energy Management Award 2021
• CII National Award for Excellence in Water Management 2021
• National Energy Conservation Award 2021

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Conservation
• Community Development
• Employee Well-being
• Responsible Supply Chain

Environmental Achievements

• Reduced Scope 1 & 2 carbon emission intensity by 9.50%
• Increased renewable energy consumption to 36% of total energy use
• Achieved 50% total water recycled
• Developed India’s greenest car tyre with 80% recycled material
• Achieved zero waste to landfill across all plants
• Achieved zero liquid discharge at three locations

Social Achievements

• Launched Youngage Konnect mentoring program for new management trainees
• Conducted 71 training sessions and awareness programs for employees on Code of Conduct
• Imparted 27.20 average training hours per employee
• Impacted 92,280 lives through CSR activities
• Spent ₹5.17 Crores on CSR initiatives

Governance Achievements

• Secured best-in-class ESG rating among peers
• Established a robust risk management framework
• Implemented a comprehensive Code of Conduct
• Maintained 96% average attendance in Board meetings
• 58.33% Independent Directors on the Board including one woman Independent Director

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to geopolitical conflicts, trade wars, and realignment of sourcing strategies
• Chip shortage impacting OEM sales
• Shortages of containers and shipping lines creating scarcity and rising costs
• High input costs in the tyre industry
• Volatile rubber prices

Mitigation Strategies

• Increased approved sources and established new mechanisms for a smooth transition to alternate sources
• Effectively managed logistics in high-risk areas
• Developed alternative sourcing strategies
• Established long-term contracts with shipping lines/freight forwarders and exploration of multiple ports
• Implemented prudent working capital optimization, counteractive measures, and premiumisation of product range

Supply Chain Management

Supplier Audits: More than 50% of suppliers covered by 26 awareness programmes

Responsible Procurement

• Sustainable procurement policy
• Preference for local suppliers
• Training sessions for suppliers on sustainability aspects

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards 2021, UN SDGs

Certifications: ISO 14064-1:2006

Third-party Assurance: BSI (AA1000 Standard and GRI Standard)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 3 (Good Health and Well-being)
• Goal 4 (Quality Education)
• Goal 1 (No Poverty)

JK Tyre's initiatives contribute to these goals through various environmental, social, and economic programs.

Sustainable Products & Innovation

• UX Green tyre (80% sustainable materials)
• Range of EV tyres
• Puncture Guard tyre
• Levitas Ultra high-performance tyre

Awards & Recognition

• CII National Award for Excellence in Water Management 2022
• National Energy Award for Excellence in Energy Management 2022 by CII
• RoSPA Bronze Award for Health and Safety 2022
• Global Sustainability Leadership Award 2022
• Most Iconic Manufacturing Industry 2022
• Social Impact Award
• UCCI Excellence CSR Award
• Superbrand for 9th consecutive time
• ET Iconic Brand of India
• JK Tyre’s Puncture Guard - Editor's Choice Innovative Auto Solution
• Motorsport Award of the Year

Environmental Metrics

ESG Focus Areas

• Productivity (Resource Conservation)
• People (Safety & Wellbeing)
• Poverty (Standard of living)
• Peace & Partnership
• Protect (Environment)

Environmental Achievements

• Reduction in GHG Emission every year
• World’s Lowest energy consumption per ton of finish product, amongst top 3 globally
• The Lowest Specific Raw Water Consumption Globally
• Reducing Power Consumption trend every year
• Reducing Steam Consumption trend every year

Social Achievements

• All plants in India awarded with “Sword of Honour” by British Safety of Council, UK for highest safety standards.
• More than 1 lac people benefitted through CSR projects (skill building, SHGs, agricultural & livestock development etc.)
• Adult literacy programs in remote villages (over 50,000 beneficiaries), Mysuru prisoners (over 6,000), Adoption of three ITI’s (over 5000 students benefitted), road safety awareness campaigns etc.
• Lakshmipat Singhania School in Jaykaygram, Rajasthan (more than 6,000 students in last one decade)
• HIV/ AIDS prevention programs, reproductive and child health care program “Parivartan”, health camps & eye Camps, toilets construction under Swachh Bharat Mission
• PSRI Hospital & Research Institute (Multi-speciality state-of-the-art hospital in New Delhi)
• Construction / De-siltation of water tanks (Benefited >1 Lac farmers) & farm ponds, field bunding and plantation
• Donated oxygen plant, oxygen concentrators, hospital beds, medicines, masks, PPE kits, sanitizers, food packets to hospitals, health centers, poor and needy people. More than 10 Lac people have been benefitted through our CSR Initiatives.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Usage of Bio sourced materials

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 50001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Green tyres

Awards & Recognition

• Energy Management Award for exemplary implementation of ISO 50001 Energy Management System Standard by Clean Energy Ministerial
• Asian Manufacturing Leadership Award for Best in class Green Manufacturing
• National Water Award for Excellence in Energy and Water Management by CII