Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• Employee Wellbeing
• Sustainable Growth
• Governance

Environmental Achievements

• Installed rooftop solar panels and used green energy drive in Railways Business
• Implemented gas-based heating system for oven in Distribution Transformer Plant at Gwalior
• Energy conservation of 2.50 Lakhs KWh with cost saving of `23.75 Lakhs in Nashik Switchgear Plant
• Achieved energy conservation of 12.49 Lakhs units and cost saving of `60.52 Lakhs through Solar Power Plants
• LT Motors Unit 1 bags “Most Sustainable Partner Award”

Social Achievements

• CG’s Industrial Division contributed 65 beds to “Covid Setu”, a COVID Quarantine and Treatment Centre
• Switchgear Division, Nashik organized a donation drive for the flood victims of Konkan, Maharashtra
• CG’s policy under Murugappa Group of not replacing all separated employees in FY21 led to benefits during FY22
• 100% vaccination for all employees
• Comprehensive learning and development programmes for employee upskilling

Governance Achievements

• Successfully turned around CG Power and Industrial Solutions in the first full year of operations
• Resolved many legacy issues impacting the Company
• Recasting of accounts for FY 2014-15 to FY 2018-19 completed
• Settled guarantee obligations aggregating to `1,406 crore
• Sale of property at Kanjurmarg completed, realizing proceeds of `402 crore
• Improved financial ratings to AA-/ Stable (Long term) and A1+/ Stable for short-term credit

Climate Goals & Targets

Environmental Challenges

• Skyrocketing commodity prices impacting business profitability
• Supply chain disruptions
• Margin pressures due to increased raw material prices
• Consequences of the Russia-Ukraine war (supply chain disruption, high inflation, margin pressure)

Mitigation Strategies

• Partially passed on the cost burden of increased raw material prices to customers
• Improved inventory and vendor management
• Explored synergies with Tube Investments in development of technologically advanced products
• Improved sourcing base and strengthened supply chain network
• Inventory rationalisation and improvement of margins

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Supplier Qualification Programme (SQP) Audits
• Safety Audits
• EHS drives for vendors

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Ester oil filled transformers
• Instrument Transformers and Surge Arresters with Polymeric insulators
• Controlled Switching Device for MV and HV Switchgear

Awards & Recognition

• Most Sustainable Partner Award

Environmental Metrics

ESG Focus Areas

• Climate Action
• Product Stewardship
• Responsible Supply Chain Management
• Human Capital Development
• Corporate Governance
• Human Rights
• Community Relations
• Responsible Investment Practices
• Customer Relationship Management

Environmental Achievements

• 13% reduction in GHG emissions intensity with respect to FY2021-22
• 15% reduction in energy intensity with respect to FY2021-22
• 10.5% renewable energy consumption
• 4,507 kW of installed solar energy capacity
• 100% elimination of packaging plastic for the domestic market across manufacturing facilities

Social Achievements

• 7.87% women workforce hired in FY2022-23
• 16,703 total training hours
• 100% employee engagement
• Zero fatalities
• Construction of 12-foot high flood water management mitigation mechanism

Governance Achievements

• No instances of corruption, anti-competitive behavior, or anti-trust and monopoly practices in the reporting period
• No materially significant related party transactions during the year
• No incidents of sexual harassment reported during this year

Climate Goals & Targets

Environmental Challenges

• Flood inundation in the area in vicinity of river at Mandideep, Bhopal

Mitigation Strategies

• Construction of a 12-foot high flood water management mitigation mechanism to divert, delay and protect the nearby community from flood inundation

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct and Supply Chain Sustainability Policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 45001:2018

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Rights
• Corporate Governance
• Supply Chain Sustainability
• Community Relations

Environmental Achievements

• Increased renewable energy consumption to 11.84% of total energy use (up from 10.5% in FY22-23)
• LT Motors Unit-1 in Ahmednagar received the ‘Silver Category’ certification from CII-Greenco
• LT Motors Unit-1 and FHP Motors received the ‘Single Use Plastic free’ certification from CII
• Switchgear Division received the ‘Life Cycle Assessment Carbon Footprint’ Certification from ICMQ, Italy
• Implemented Thermocol-free packaging and are working towards single-use plastic elimination
• Reduced import dependency for CF Gear by 70%
• Transitioned from Diesel Furnace to Electrical Furnace in LTM Die Cast Rotor (DCR) process

Social Achievements

• Launched various employee well-being programs (health awareness, walkathon, sports day)
• Organized learning and development programs (executive presence, teamwork, conflict resolution, leadership effectiveness)
• Conducted ESG awareness sessions for employees
• Implemented a Sales and Marketing Excellence Program
• Organized specialized training sessions in Smart Manufacturing and Poka Yoke methodologies
• 10% of fresh recruits are females
• Implemented digital solutions for HR processes (graduate trainee assessment)
• No sexual harassment incidents reported

Governance Achievements

• Successfully completed a comprehensive Cybersecurity Risk assessment
• Refreshed all IT assets older than five years
• Improved credit rating from ‘IND AA’ to ‘IND AA+’
• Implemented a robust internal control framework with a “Three Lines of Defense” model
• Implemented various digital initiatives to enhance operational efficiency and internal controls (Smart Dealer Management, Digitization at Shopfloor, centralized R&D applications, Spare Portal Development, centralized SAP Master Data Governance)
• Implemented real-time data backup and ransomware prevention measures
• Conducted Crisis Management and Business Continuity assessments
• Conducted Physical Security Assessment
• Implemented GRC & SOD (Segregation of Duties) Assessment reviews

Climate Goals & Targets

Environmental Challenges

• Delays in capacity expansion projects
• Maintaining sufficient health and safety standards
• Attracting and retaining talent
• Leveraging technology to meet customer expectations and address technological obsolescence
• Currency fluctuations, commodity price changes, and reliance on imports
• Cyberattacks and network breaches

Mitigation Strategies

• Established structured processes to enhance project planning and management
• Leveraged regulatory expertise for timely approvals
• Ensured timely supply of critical equipment
• Rigorously adhered to policies and guidelines to uphold safety standards
• Developed a comprehensive recruitment strategy with competitive compensation packages
• Implemented talent development programs
• Established a culture of recognition and rewards
• Implemented employee engagement initiatives
• Developed a robust succession planning process
• Pursuing opportunities through in-house development and technology collaborations
• Undertaking technology development and upgradation
• Employed market intelligence and commodity price trend analysis
• Implemented cost reduction projects
• Maintained a reserve stock of critical imported materials
• Developed alternative local vendors
• Outlined Information Security Management System policies
• Implemented multiple layers of cybersecurity measures
• Implemented encrypted data backup and restoration processes
• Organized organization-wide phishing mock drills
• Implemented a business continuity plan

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Supply Chain Sustainability Policy
• Focus on local sourcing
• Supplier Qualification Programme (SQP) Audits
• Safety Audits
• EHS drives for vendors

Climate-Related Risks & Opportunities

Transition Risks

• Supply chain disruptions
• Sourcing challenges
• Impacts on business strategy

Opportunities

• Renewable energy
• Energy efficiency
• Local procurement

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 45001, ISO 9001

Third-party Assurance: CNK & Associates LLP

Sustainable Products & Innovation

• IE5 Ultra-premium Efficiency Synchronous Reluctance Motors
• RIP bushings
• BLDC motors and fans

Awards & Recognition

• EY Entrepreneur of the Year Award 2023 (Vellayan Subbiah)
• Transformational Leader Award - Midcap Category 2022-23 (Natarajan Srinivasan)
• Dainik Bhaskar Industry Excellence Award
• Best Product Award (BHEL)
• Best Paper award at IEEMA