Climate Change Data

Environmental Metrics

ESG Focus Areas

• Farmer welfare
• Environmental sustainability
• Value addition
• Financial prudence
• Modern management practices

Environmental Achievements

• Implemented zero liquid discharge in its distillery
• Reduced groundwater drawal through water treatment and reuse
• Reduced environmental load per tonne of cane crushed

Social Achievements

• Engaged with more than 249,004 farmers
• Improved farmer yields through cane development initiatives
• Manufactured sanitizers during COVID-19 pandemic

Governance Achievements

• Strengthened Total Productive Maintenance (TPM) and Kaizen culture
• Reduced long-term debt
• Improved credit rating from A(-) to A

Climate Goals & Targets

Environmental Challenges

• Blocked supply chain due to coronavirus
• Competitive pricing impacting realizations
• Increased reserved quota of molasses for country liquor makers
• Logistical issues related to ethanol supply
• Decline in co-generation tariff

Mitigation Strategies

• Reduced sugar inventory by diverting sugar to B-Heavy ethanol process and enhanced exports
• Reduced production costs
• Started producing country liquor
• Oil marketing companies revamped their supply chain
• Implemented efficiency-enhancing measures like TPM

Supply Chain Management

Responsible Procurement

• Sustainable sourcing of sugarcane

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Branded and packaged sugar
• Ethanol from B-Heavy route
• Specialty chemicals

Environmental Metrics

ESG Focus Areas

• Environment, Health, and Safety (HSE)
• Community Engagement
• Sustainable Practices

Environmental Achievements

• Reduced steam consumption by 10% and power consumption by 8% (Dhampur distillery)
• Achieved zero liquid discharge (ZLD) in Dhampur distillery
• Planted 54,000 trees in FY 2021-22
• Undertook water recycling in the Dhampur unit
• Stopped using water from bore wells in the Rajpura plant; used reprocessed and recycled water instead

Social Achievements

• Provided medical facilities, oxygen cylinders and medicines to farmers affected by the pandemic
• Engaged with 92,124 farmers in Dhampur command area
• Increased proportion of L grade sugar in the unit’s sugar mix from 18% to 23%
• Invested H5.97 Crores in CSR activities in FY 2021-22
• Remunerated farmers in less than 12 days, strengthening relationships

Governance Achievements

• Demerger of the erstwhile company into Dhampur Sugar Mills Limited
• Appointment of a Chief Executive Officer to lead the company into specialty chemicals
• Implemented Total Productive Maintenance (TPM) to enhance efficiency and deepen kaizen culture

Climate Goals & Targets

Environmental Challenges

• Cane yields were down in Uttar Pradesh due to extended rainfall and red rot disease
• Lack of preparedness to capitalize on increased ethanol offtake
• Low power rates per unit impacted revenues and margins

Mitigation Strategies

• Developed alternative sourcing strategies
• Engaged in enhancing capacity and increasing ethanol production
• Undertook long-term power purchase contracts

Supply Chain Management

Responsible Procurement

• Longstanding relationships with cane farmers
• Cane development activities (scientific knowledge, soil testing, seed selection, disease treatment)

Climate-Related Risks & Opportunities

Physical Risks

• Extended rainfall
• Red rot disease

Sustainable Products & Innovation

• Ethanol (green fuel)
• Power from bagasse (renewable energy)

Environmental Metrics

ESG Focus Areas

• GHG Emissions
• Water and waste Management
• Energy management
• Product quality
• Diversity, equity, and inclusion
• Health, safety and well being
• Human Rights
• CSR
• Ethics and integrity
• Governance and compliance
• Material sourcing and efficiency
• Stakeholder grievance redressal mechanism
• Risk management

Environmental Achievements

• Implemented Zero Liquid Discharge (ZLD) to better manage water resources
• Use of Renewable Energy (RE) generated from bagasse and other sources, resulting in self-sufficiency
• Savings achieved in terms of power consumption and withdrawal of freshwater, thus resulting in reduced costs of operations
• Increased sale of power to the grid resulting in additional revenue generation
• Several initiatives like rainwater harvesting structures in our plants, development of green belts are regularly taken in our plants

Social Achievements

• Several initiatives in place to ensure minimal turnover rates and promote employee well-being and growth
• Incorporating DE&I initiatives to hire more female employees and also employees from varied backgrounds
• Increased productivity from satisfied and happy employees leading to increased operational efficiency and growth
• Improved customer faith, specifically from institutional buyers, due to meticulous compliance of human rights issues for the organization leading to increased profits
• Partnership with NGOs and interactions with local communities to support and enhance their development
• Improved credibility and trust arising from community engagement can enhance our image in the areas around factories which holds potential for higher raw material availability

Governance Achievements

• Robust internal control systems, risk management frameworks, and compliance procedures established to uphold commitment to ethics and mitigate potential risks
• Board of directors is diverse and independent, fostering a culture of responsible decision-making and long-term value creation for stakeholders
• Structured periodic reporting of compliance status along with exceptions (if any) to Senior Management
• Implemented compliance monitoring IT based tool which is reviewed by senior management on a monthly basis

Climate Goals & Targets

Environmental Challenges

• Greenhouse gases generated from burning of bagasse as well as processing of molasses can pose a risk of environmental harm
• Majority of male employees currently in the workforce
• Gaps in safety arrangements can result in severe harm to employees and workers
• Changing regulations around human rights can result in non-adherence and affect business operations
• New updates to the regulatory framework make it challenging to adhere to all new updates and there is always a risk of non-compliance due to the changing scenario
• Business continuity risks that can arise in case the procurement is in an inefficient manner
• Failure in timely redressal of reported grievance can result in lack of faith of stakeholders

Mitigation Strategies

• Suitable environmental control measures deployed to minimize emissions
• Incorporating DE&I initiatives to hire more female employees and also employees from varied backgrounds
• Periodic risk identification done through safety observation report to note the safety incidents and corrective actions taken thereon including implementation of governance mechanism for the noted risk
• Defining human rights policy and assessment procedures to avoid any non-compliances
• Periodic and regular liaison with concerned departments along with regular supervision in place to avoid any instances of non-compliance
• Cane department to ensure proper supply chain coupled with cordial relations are maintained with farmers, who are our major suppliers, to ensure regular availability of raw material
• Stringent grievance redressal mechanism established to review, address, and resolve all reported grievances
• Enterprise Risk Management (ERM) council nominated by the risk management committee of the Board in place and evolving commensurate with dynamic business environment to identify all potential risks and mitigation actions for the most critical risks

Supply Chain Management

Responsible Procurement

• Procurement process defined for sustainable sourcing and a defined policy which highlights Company’s criteria for procuring materials sustainably

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: NGRBC

Certifications: ISO:9001 2015, FSSC:22000 V5.1

UN Sustainable Development Goals

• SDG 5 (Gender Equality)
• SDG 7 (Affordable and Clean Energy)
• SDG 4 (Quality Education)
• SDG 3 (Good Health and Well-being)
• SDG 6 (Clean Water and Sanitation)
• SDG 12 (Responsible Consumption and Production)

Environmental Metrics

ESG Focus Areas

• Cane development
• Ethanol production
• Renewable energy
• Community development
• Employee well-being
• Environmental protection

Environmental Achievements

• Implemented Zero Liquid Discharge (ZLD) system
• Planted 27,750 trees
• Reduced dust pollution with canopy installations
• Installed dust collector vans
• Harnessing energy from bagasse and spent wash

Social Achievements

• Collaborated with PHDRDF for mobile health services
• Supported Pushp Niketan school
• Supported Shakuntala Shishu Lok initiative
• Invested ₹5.10 Crores in CSR activities
• Improved employee well-being programs

Governance Achievements

• Upgraded long-term credit rating to AA- from A+
• Established a robust internal audit system
• Implemented a Vigil Mechanism/Whistle Blower Policy
• Implemented an Anti-Sexual Harassment Policy

Climate Goals & Targets

Environmental Challenges

• Decline in cane output due to red rot disease and unseasonal rains
• Interruption in Biofuel Policy
• Emergence of a new manufacturing facility impacting cane access
• High cost of raw material inventory for ethyl acetate
• Unexpected shutdown in ethyl acetate production
• Increased competition in ethyl acetate market
• Oversupply in ethyl acetate market
• Volatile Uttar Pradesh excise policy for potable spirits

Mitigation Strategies

• Five-year cane development roadmap
• Cautious management of cash reserves
• Investment in a 100 KLPD grain-based distillery expansion
• Back-to-back sale and purchase strategy for ethyl acetate
• Plant restoration efforts for ethyl acetate
• Process optimization for ethyl acetate
• Leveraging feedstock access for ethyl acetate
• Increased market share for potable spirits

Supply Chain Management

Responsible Procurement

• Sustainable procurement policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, flooding

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: BRSR

Certifications: ISO 9001:2015, FSSC 22000 V5.1 (Rajpura Unit)

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 10
• SDG 12
• SDG 13

Sustainable Products & Innovation

• Ethanol
• Renewable energy from bagasse