Climate Change Data

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Climate Change Adaptation
• Occupational Health and Safety
• Water Resilience
• Waste Management
• Biodiversity Management
• Supply Chain Management
• Talent Management
• Human Rights (Diversity and Inclusion)
• Corporate Governance
• Customer Experience
• Empowering Communities
• Strategic Stakeholder Engagement

Environmental Achievements

• Reduced specific water consumption in CPP and Birla Century by 4.2% and 1.9% respectively from FY 20-21 to FY 21-22
• 21,400 tCO2e GHG emissions avoided (scope 1 and 2)
• 6.9% reduction in specific GHG emissions by CPP from base year FY 19-20
• 39.2% of total water withdrawal recycled/reused
• 29,290 GJ Electrical energy savings
• 41% Energy from renewable sources
• 5.8 Mn m3 Water recycled/reused
• 68% Waste recycled/reused
• Birla Niyaara received LEED v4.1 Residential USGBC Platinum certification

Social Achievements

• Community expenditure: ₹6.65 Cr
• CPP distributed 1.6 million seeds to farmers for tree plantation
• Impact of community initiatives – 63,750 beneficiaries
• Zero fatalities for Permanent Employees
• New Employees hired: 514
• 35,856 Hours of training provided
• Launched ‘Hill and Glade’ brand of home textile in the domestic market

Governance Achievements

• Implemented a framework at Birla Century to formulate a 5-year roadmap, which has been integrated into our overall ESG goals and commitments
• Scored 90.2% in the Higg Facility Environmental Module-2021 (Higg FEM)

Climate Goals & Targets

Environmental Challenges

• Volatile, Uncertain, Complex and Ambiguous External Environment
• Supply chain disruptions due to COVID-19 and geopolitical conflicts
• High cost of production
• Delay in project completion due to government approvals
• Non-compliance with General Data Protection Regulation (GDPR)
• Low profitability due to insufficient plant capacity and narrow product range in home textile segment
• Increased raw material prices
• Availability of raw material (wood, imported pulp, bagasse, wastepaper)

Mitigation Strategies

• Upgradation of software and implementation of firewall
• Periodic SAP disaster recovery drill and formalised BCP plan
• Installation of firewall to block access to social media websites and USB/external drive
• Evaluation and review of data loss protection (DLP) system
• Expand product portfolio by launching new and innovative value-added products
• Installation of new BCTMP plant to reduce dependency on imports
• Adherence to the timeline related to compliances and permission
• Appointment of consultation for liaison and awareness about local regulation
• Strong framework and periodic review of data privacy policy to ensure security of data
• Capacity expansion for processing fabric, printed fabric and wider width (2.5x) to meet the increasing demand
• Engaging with online sheeting suppliers
• Launching new products
• Exploring new global markets
• Launching home textile in domestic markets
• Initiatives to become fiber sustainable by FY 2024-25
• Establishing long-term relationships with global pulp suppliers
• Working in close co-ordination with sugar mills to ensure assured and sustained supply of bagasse
• Continuously monitoring and analysing events to prepare for unforeseen circumstances

Supply Chain Management

Responsible Procurement

• Supply Chain Code of Conduct
• Periodic assessment of suppliers on Code of Conduct
• Preference to local suppliers
• ESG screening of key suppliers (future plan)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Integrated Reporting Framework (IIRC), Global Reporting Initiative (GRI) Standards: Core option

Certifications: ISO 9001, ISO 14001, ISO 45001, Forest Stewardship Council TM, BIS, Eco Mark, LEED v4 GOLD, STeP, OEKO-TEX, Made in Green, Higg Index, ZDHC, SA8000, SMETA, Better Cotton Initiative, GRS and RCS, GOTS, Fair Trade & FT - USA

UN Sustainable Development Goals

• 3
• 4
• 5
• 6
• 7
• 8
• 9
• 10
• 12
• 13
• 15
• 17

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• Antifungal ARSR paper
• Prima MR Board
• Natura Board
• Green Pulp
• High BF Kraft paper
• PE Free Antifungal ARSR
• Century Ultra Soft Facial Tissue
• Ultra-toilet tissue
• Cotton-Hemp blends
• Recycled Products
• Recycled Viscose
• Organic Cotton & Organic Linen
• Products with Birla Excel & Modal
• Recycled natural and synthetic fibers
• Century Green Pulp
• High wet-strength tissue paper
• Carry Paper
• Century Cup Wall Stock Paper
• Century Cup Bottom Base

Awards & Recognition

• National Awards for Manufacturing Competitiveness 2021 (Gold)
• National Energy Management Award 2021 (Gold)
• FAME Excellence Award for Occupational Health & Safety 2021 (Platinum)
• Times Real Estate Conclave Awards 2021 (‘Iconic Real Estate Brand of the Year’)
• Economic Times Best Brands Awards 2021 (‘Best Brands 2021’)
• National Safety Council – Maharashtra Chapter Awards
• Greentech Effective Safety Culture Award 2021
• CIDC Vishwakarma 2022 Awards
• Golden Peacock Award for Energy Efficiency-2021
• 110th All India Farmer’s Fair Agro & Industrial Exhibition 2021 (first prize)

Environmental Metrics

ESG Focus Areas

• Financial Inclusivity
• Environmental Sustainability
• Corporate Governance
• Social Responsibility
• Climate Change Mitigation

Environmental Achievements

• Reduced carbon footprint through solar panel installations and energy-efficient practices.
• Recycled 53,903 kg of dry waste, offsetting 177.05 MTCO2 emissions.
• Recycled 32,159 sanitary pads, conserving 1,70,443 kg of carbon equivalent and saving 16,079 litres of landfill space.
• 50% reduction in water consumption

Social Achievements

• Served 38 million active customers.
• Impacted 5,48,218 lives through CSR initiatives.
• 93% employee engagement survey score.
• 29% women employees.
• Implemented various D&I initiatives like Celebrate Motherhood, Career Restart, Di-Flix, and MenAllyship.

Governance Achievements

• Established a robust corporate governance framework with an independent Board.
• Implemented a comprehensive Code of Conduct with a zero-tolerance policy against corruption.
• Established a whistle-blower policy.

Climate Goals & Targets

Environmental Challenges

• Cybersecurity risks.
• Climate change and environmental risks.
• Fintech and disruption risks.
• Demographic and social changes.
• Data privacy and regulatory risks.
• Geopolitical and geoeconomic risks.

Mitigation Strategies

• Implemented a comprehensive cybersecurity framework.
• Integrated ESG considerations into risk management.
• Proactively managing data privacy risks.
• Adapting to market risks and regulations.
• Strengthening governance practices.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, UN SDGs

Awards & Recognition

• Golden Peacock Award for ESG for the year 2023
• National CSR Awards from the Government of India

Environmental Metrics

ESG Focus Areas

• Environmental Responsibilities
• Sustainability Responsibilities
• Stakeholder Engagement
• Economic Responsibilities
• Social Responsibilities
• Product Quality
• Financial Performance
• Safe Working Environment
• Attractive Workplace

Environmental Achievements

• World's only chlorine-free, closed-loop bleaching plant
• Improved noise levels from the mill
• Installation of new SO2 and ammonia unloading stations
• Reduced emissions of nutrients (phosphorus and nitrogen) in water effluents

Social Achievements

• Two gold medals at the Magnet Award for people culture and employer brand
• Implementation of employee and leadership principles
• Investment in a new recruitment, onboarding and training system
• Various wellness activities for employees (skiing, biking, gym access, wellness contribution)

Governance Achievements

• Compliance with Aditya Birla Group's sustainability framework
• Implementation of ISO 9001, ISO 50001, ISO 14001, ISO 17025, FSC®, and PEFC certifications
• Implementation of ISCC certification for bioethanol production
• GMP+ certification for lignosulphonate

Climate Goals & Targets

Environmental Challenges

• Market condition changes due to competitor closure
• Slower growth in the lignin market
• Cellulose production breakdowns impacting production
• Challenging wood supply with strong competition and price increases
• Exceeding permit limits for NOx emissions and noise in 2023

Mitigation Strategies

• Continued work to develop specialty sales
• Focus on specialty segments for lignin
• Recovery of cellulose production by year-end
• Measures to fulfill environmental permit, including new unloading stations
• Ongoing investigations and improvements during a probationary period
• Projects to address noise and odour issues

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Aditya Birla Group's supply chain and procurement policy stressing alternative materials, renewable energy, water stewardship, safety, health, human rights, and elimination of child labour and forced labour.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 9001, ISO 50001, ISO 14001, ISO 17025, FSC® (FSC-C124657), PEFC (PEFC/05-33-253), GMP+, ISCC

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Speciality cellulose, lignosulphonate, bioethanol

Awards & Recognition

• Two gold medals at the Magnet Award
• Birla Cellulose secured top position in Canopy's Hot Button Report for 2023