Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Emissions Reduction
• Water Conservation
• Circular Economy
• Community Development
• Employee Well-being
• Occupational Health and Safety
• Human Rights
• Governance
• Supply Chain Sustainability

Environmental Achievements

• Reduced specific CO2 emissions
• Increased renewable energy share to 45% of total energy consumption
• Reduced clinker to cement ratio
• Increased use of alternative fuels and raw materials (AFR) to 24.3% of total raw material consumption
• Installed largest WHR-based power capacity in the global cement industry (excluding China)
• First company in India to utilize 100% petcoke in cement manufacturing
• Achieved 5-star rating for Ras Limestone Mines and 4-star rating for Beawar Limestone Mines for Sustainable Development

Social Achievements

• Launched employee well-being programs including STEPS (online learning platform), Aarohan (internal job application process), and SP ARQ (employee app)
• Automated exit settlements, reducing response time by 30%
• Implemented 'Mission Zero Injury' to eliminate workplace injuries
• Spent INR 40.47 crore on various CSR initiatives focusing on healthcare, education, livelihood generation, rural infrastructure development, and women empowerment
• Imparted stitching skills to local women, manufacturing and distributing masks during COVID-19 pandemic

Governance Achievements

• Implemented a robust Enterprise Risk Management (ERM) framework
• Linked performance appraisal of Whole-Time Director to company’s performance on sustainability KPIs
• Adhered to the Companies Act, 2013 and SEBI Listing Regulations
• Established a formalized structure for decision-making, ensuring accountability

Climate Goals & Targets

Environmental Challenges

• Economic shocks due to COVID-19 pandemic
• Fuel cost volatility
• Overcapacity in the cement industry
• Climate change (physical and transition risks)
• Worker safety
• Limestone availability
• Water scarcity in Rajasthan plants

Mitigation Strategies

• Developed contingency plans for economic shocks
• Deployed multi-fuel usage strategy and invested in WHR power plants to reduce reliance on conventional fuel
• Invested in customer loyalty programs and capacity addition in favorable markets
• Integrated sustainability into operations and prepared to meet new regulations
• Implemented 'Mission Zero Injury' and monitored safety indicators
• Optimized limestone usage and undertook exploratory activities
• Installed Air Cooled Condensers (ACC) and Waste Heat Recovery Systems to reduce water consumption

Supply Chain Management

Supplier Audits: 864 new suppliers on-boarded through robust agreements with environmental and social safeguards

Responsible Procurement

• Prioritizing local suppliers
• Stringent environmental and social safeguards in vendor agreements

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Comprehensive option

Certifications: SA 8000

Third-party Assurance: Ernst & Young Associates LLP

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Premium PPC Cement (optimized clinker to cement ratio)

Awards & Recognition

• Corporate Governance and Sustainability Vision Awards 2020
• Global Sustainability Award 2019
• State CSR Excellence Award 2019
• India Risk Management Award in Sustainability Category
• Among India’s Top 5 Companies to Work for in the Manufacturing and Production Sector
• Among India’s 100 Best Companies to Work for

Environmental Metrics

ESG Focus Areas

• Energy and Climate
• People
• Natural Resource Management
• Circular Economy

Environmental Achievements

• ~6 million tonnes CO2 avoided from blended cement sales and energy conservation measures
• 48% share of renewable energy in total power consumption
• >26% material consumed is waste from other industries/low-grade material
• Around half of our total power consumed is from renewable and waste heat recovery

Social Achievements

• Great Place to Work Certified for three years in a row
• Average training hours 20.65
• 471 Joint safety audits conducted
• ₹45.73 cr CSR expenditure
• 5.7 Lac+ beneficiaries of community development programmes

Governance Achievements

• Robust governance framework
• 1,160 MSME vendors registered across all locations for procurement of goods and availing services.

Climate Goals & Targets

Environmental Challenges

• Overcapacity in the industry
• Availability of limestone and other natural resources
• Fuel cost
• Economic slowdown
• Climate change
• Health and safety of employees
• Impact of regulatory changes
• Cyber security

Mitigation Strategies

• Investing in building customer loyalty
• Optimizing limestone usage
• Installing Air Cooled Condensers (ACC)
• Deploying a multi-fuel usage strategy
• Investing in expanding its renewable portfolio
• Preparing contingency plans
• Conservation of natural resources
• Enlarging renewable energy portfolio
• Institutionalising operational discipline
• Regularly evaluating the regulatory environment

Supply Chain Management

Supplier Audits: 22 suppliers have been assessed within the last three years

Responsible Procurement

• Priority to local suppliers
• Stringent environmental and social safeguards in vendor agreements

Climate-Related Risks & Opportunities

Physical Risks

• extreme weather or high temperatures

Transition Risks

• new legislative or regulatory controls

Opportunities

• reducing emissions of Greenhouse Gases (GHG)

Reporting Standards

Frameworks Used: GRI Standards: Comprehensive option, International Finance Corporation (IFC) Performance Indicators and Monitoring, Global Cement and Concrete Association (GCCA) Sustainability Charter and Guidelines, United Nations Sustainable Development Goals (UN SDGs), United Nations Global Compact (UNGC) Principles, National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of business (NVG-SEE)

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 50001

Third-party Assurance: Thinkthrough Consulting Pvt. Ltd.

Sustainable Products & Innovation

• blended cement

Awards & Recognition

• Great place to work in the category of India’s 30 Best Workplaces in Manufacturing – 2021
• Supply Chain and Logistics Excellence (SCALE) Award 2020
• Award of Honour to Shree Cement Ltd, Roorkee
• Winner of the “Challengers Award” at the 2020 Sustainability 4.0 Awards
• Certificate of Excellence in Health and Wellness Initiative
• Best WorkplacesTM in Cement and Building Materials Industry
• CII National HR Excellence Awards 2020–21
• Great place to work Certified
• Winner - Excellence in Health and Wellness Initiative
• Best Employers Award - 2019
• Appreciation award to SCL by District Administration, Aurangabad
• State Safety Award – 2021
• National Award for Manufacturing Competitiveness 2019-20
• India’s Best Companies to Work for 2020
• Indira Mahila Shakti samman
• CSR Excellence in Procurement - Company of the year

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Water
• Energy & Emissions Management
• Waste Management & Circular Economy
• Low carbon products
• Human rights & Non-Discrimination
• Occupational Health & Safety
• Training & Development
• Employee Relation
• Community Development
• Customer Satisfaction
• Governance Risk Management
• Governance & Ethics
• Cyber Security
• Business Performance
• Regulatory Compliance
• Supply chain, Raw material procurement & Procurement practice
• Indirect economic Impact
• Resettlement & Rehabilitation

Environmental Achievements

• Green electricity contributed to 55.9% of our total electricity consumption.
• Thermal Substitution Rate (TSR) is 2.37%.
• Water positivity >7 times.
• Increased agro waste consumption, use of biofuel and other initiatives have led to avoiding carbon emissions.
• Blended cement production during FY 2023-24 led to avoiding a total of 7.2 million tonnes of CO2 emissions.

Social Achievements

• Lives touched - 6.7 Lac
• Customer satisfaction score - 86%
• Employee engagement score - 81
• Average hours of training and skill development - 16 per employee

Governance Achievements

• CEO (MD) compensation is linked to various ESG performance indicators including achievement of targets on climate change, energy efficiency and reduction in emissions intensity.

Climate Goals & Targets

Environmental Challenges

• Climate Change
• Consolidation and Intense Competition
• Plant and Region Dependency
• Supply Chain – Water Availability
• Succession Planning
• IT Data Privacy and Cyber Security
• Fuel Procurement
• Shortage of critical natural resources and impact of extreme weather events
• Adverse effects of Artificial Intelligence (AI) or disruptive technologies
• Increased geopolitical conflicts

Mitigation Strategies

• Climate change mitigation measures include Waste Heat Recovery Plants, renewable energy plants, Air Cooled Condensers in thermal power plants, energy conservation and efficiency measures, enhanced use of biomass and alternative fuels, etc.
• Identifying strategic locations for further capacity expansion. Aligning of marketing strategy and strengthening brand equity to maintain current market share and to enter new markets. Timely project completion to maintain a competitive edge over peers.
• Expansion in Western, Southern as well as in Eastern Region as a part of diversification strategy. Adoption of flexible supply model for both road and rail in the plants, to manage over- dependency on any single mode of logistics.
• Conducting water risk assessment study as a part of our organisational readiness to plan for upcoming water challenges. Deployment of efficient and state-of-the-art technologies to reduce water requirement in operations. Construction of rain water harvesting structures for storage and recharge of rain water. Adoption of best industry practices such as zero liquid discharge, sewage treatment plants, recycled water usage, etc., to reduce ground water requirements.
• Inculcating and promoting culture of accountability across all levels. Cross functional collaboration to develop and enhance business acumen of the employees. Identification of critical positions, possible successors, their development plans and gap analysis.
• Periodic review of ERP and key software to meet current and future needs. Strengthening the established practices and procedures for IT security and governance across the organisation. Regular monitoring and tracking of licensed products, unauthorized software usage, tracking of data leakage, etc. across the organisation through best-in-class technology and process. Assessment of IT infrastructure (e.g. Vulnerability Assessment and Penetration Testing - VAPT) followed by cyber security awareness sessions for employees.
• Designed plants and processes to enable their operations based on multi-fuels and give flexibility to choose fuel basis the availability and at competitive cost. Enhancing share of alternative fuels to replace the usage of coal and petcoke. Procuring coal from domestic sources (linkage and captive coal block) to reduce dependency on imported coal.
• Reducing dependency on conventional fuel (coal and pet coke) and transitioning to alternative fuel sources by continuously increasing its usage. Strategic expansion of operations in new geographies where availability of critical raw materials is not a challenge.
• We have been incorporating digitalisation in our operations and processes to improve our competitiveness. We are continuously integrating technology in production domain wherever feasible.
• We have been focusing on indigenous procurement and usage of alternate fuel in our operations. We continually focus on diversifying our supply chain to mitigate the risk of dependence on single supplier for critical supplies.

Supply Chain Management

Supplier Audits: 276/2922 (9.45%)

Responsible Procurement

• Sustainable Procurement Policy and Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Government may bring in regulations impacting operational continuity due to current level of carbon emissions. Enhanced scrutiny by investor community including shareholders over climate change may impact market capitalisation.

Opportunities

• Circular Economy
• Adoption of Artificial Intelligence and Industrial Internet of Things
• Green Growth Initiative

Reporting Standards

Frameworks Used: International Integrated Reporting Framework (January 2021), GRI 2021 Standards, UNGC principles, SASB, UN SDGs, BRSR

Certifications: ISO 14001, ISO 45001, Green Pro ecolabel

Third-party Assurance: SGS India Pvt. Ltd.

UN Sustainable Development Goals

• Not disclosed

All our CSR programmes are aligned with the Schedule VII of Companies Act, 2013 and the UN Sustainable Development Goals.

Sustainable Products & Innovation

• Blended cement (PPC, PSC, CC)
• Green Pro ecolabel certified Shree Heat Shield AAC blocks
• Bangur Magna

Awards & Recognition

• India's Most Trusted Leaders by Great Place To Work®, India
• Ranked among India’s Most Sustainable Companies by BW Businessworld
• Appreciation letter for zero failure to Cuttack and Saraikela Grinding Units
• Certificate of excellence to Kodla Unit
• Award for consistent quality to Ras Unit
• Bhamshah Samman-2023 by Education Department, Govt. of Rajasthan
• Exemplary Award 2023 by Employer Association of Rajasthan
• Police Pride Award by Dainik Bhaskar
• Special Recognition - Customer Experience Management by SAP ACE Award 2023
• Supply Chain and Logistics Excellence (SCALE) Award - 2023 by Confederation of Indian Industry
• Asia Pacific Climate Leader by Financial Times and Statista
• Best Performing Mines by Directorate General Of Mines Safety
• Zero failure award to Aurangabad Grinding Unit by Bureau of Indian Standards
• Top Honors for Cement Quality to Bulandshahr Grinding Unit by Bureau of Indian Standards (BIS)
• Karhi Chandi Mines awarded under Prestigious category by Directorate General of Mines Safety
• Sports Promotion Award to Saraikela Grinding Unit by District Sports Association