Climate Change Data

Environmental Metrics

ESG Focus Areas

• Energy Efficiency
• Emission Reduction
• Renewable Energy
• Education
• Social Initiatives
• Occupational Health and Safety

Environmental Achievements

• Successfully deployed Circulating Fluidised Bed Combustion (CFBC) technology in captive power projects, enabling combustion of low-grade coal and bio-wastes.
• Undertook a 250 kW solar thermal project in Shive village, Maharashtra, for rural electrification.
• Achieved resource conservation worth Rs. 109 lakh through various measures.

Social Achievements

• Thermax Social Initiative Foundation (TSIF) reached nearly 500 underprivileged children through two municipal schools.
• One of TSIF's schools declared the 'National Winner' among government schools.
• Employees raised funds for Akanksha Foundation through the Mumbai Marathon and payroll giving program.
• CYDA-TSIF Leadership Development Programme sponsored 10 interns from SC/ST backgrounds.

Governance Achievements

• Implemented best practices in corporate governance.
• Established a Whistle Blower Policy.
• Maintained cordial industrial relations.

Climate Goals & Targets

Environmental Challenges

• Lower order carry forward due to economic conditions.
• Significant decline in export income due to global financial crisis.
• Business dispute with Purolite International Ltd.
• Competition risk in global markets.
• Cyclical nature of capital goods business.
• Project management risks.
• Customer concentration risk.
• Risk of energy price fluctuation.
• Input price increase and supply chain management risk.
• Exchange fluctuations and interest rate risks.
• Risk related to human resources.
• Risk related to international operations.
• Risk related to safe operations.

Mitigation Strategies

• Contained costs through multiple initiatives.
• Aggressively pursued leads in the market, closing the year with a significant order book.
• Amicable settlement of business dispute with Purolite.
• Focus on quality, cost, and delivery to create sustainable competitive advantage.
• Development of product and service businesses and selective internationalisation.
• Established processes and systems for reviewing project progress and costs.
• Broad basing orders to mitigate customer concentration risk.
• Proven capability of handling a variety of fuels and harnessing waste heat.
• Factoring in input price escalations when quoting for projects.
• Conservative forex management processes and prudent investment practices.
• Initiatives to motivate and retain employees.
• Policies and procedures for international operations.
• HSE Policy with safety officers at major project sites.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• CFBC boilers
• Solar thermal systems
• Absorption heat pump
• Waste-to-energy boiler

Awards & Recognition

• CII HR Awards for Excellence commendation
• Enertia Award 2009
• Golden Peacock Award for Occupational Health and Safety
• Imai Award for Operational Excellence

Environmental Metrics

ESG Focus Areas

• Energy Efficiency
• Environmental Protection
• Renewable Energy
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Successfully completed its biggest ever air pollution control project for a cement plant in Egypt.
• Installed a solar based air conditioning project at MNRE's National Solar Research Centre.
• Reduced electricity consumption at Chinchwad and Savli manufacturing facilities by optimizing consumption using energy saving devices, resulting in an annual saving of Rs. 0.6 crore.
• Reduced electricity consumption by 9% per metric cube of resin produced at Paudh plant.
• Recycled and reused around 135000 m³ water at Paudh plant.

Social Achievements

• Increased allocation for CSR activities from 1% to 3% of the company's profit after tax.
• Adopted one more school, making it three schools in the city of Pune managed by the Thermax Social Initiative Foundation.
• Continued to recruit engineer trainees.
• Amicably signed wage settlement agreements with Thermax Kamagar Sangathan and Bhartiya Kamgar Karmachari Mahasangh.

Governance Achievements

• Followed and implemented best practices in corporate governance.
• Continued the process of building internal controls and automation of workflow.
• ICRA Ltd. reaffirmed its rating, LAA+ for long-term and A1+ for short-term banking facilities.

Climate Goals & Targets

Environmental Challenges

• Tough year for the manufacturing sector and challenging for capital goods industry players.
• Decline in the country's economic growth from 8.6% in 2011 to below 6.7%.
• Missed opportunity to reap significant gains for the country.
• Slowdown in industry as reflected in a weakening IIP growth.
• Eurozone chaos and a crisis of confidence in the domestic economy.
• Order carry forward into the new year 25% lower than the previous year.
• Power sector languishing with a near freeze in order booking and slowdown in execution.
• Economic slowdown impacting job creation and talent migration.
• Increased competition in the market.

Mitigation Strategies

• Acquisition of Rifox to reinforce presence in clean energy space and extend reach of service arm.
• Focus on select international markets with services and solutions promoting efficient and eco-friendly energy.
• Innovation with unique energy saving applications for customers.
• Cost reduction initiatives and improvement in productivity in manufacturing units.
• Introduction of mobile service and training units to enhance service efficacy.
• Diversification of business portfolio to reduce dependence on cyclical project businesses.
• Focus on sectors insulated from economic slowdown (food, pharmaceuticals, chemicals).
• Value engineering and productivity enhancement initiatives to mitigate margin pressure.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• High efficiency, triple effect absorption chiller
• Compact hot water chiller
• Low capacity CFBC Boiler
• Solar air conditioning system

Awards & Recognition

• CNBC TV-18 India award for the 'most promising entrant to the big league'
• Safety Innovation Award 2011 from the Institution of Engineers, Delhi
• Health, Safety and Environment appreciation award 2011 from CII, Western region
• Best performing CFO award in the Capital Goods sector by CNBC TV-18

Environmental Metrics

ESG Focus Areas

• Energy Efficiency
• Environmental Sustainability
• Education
• Employee Well-being
• Affirmative Action

Environmental Achievements

• Improved boiler efficiency, resulting in fuel savings of Rs. 0.5 crore at Paudh plant.
• Reduced electricity consumption by 11% per cubic meter of resin produced at Paudh plant.
• Saved Rs. 1.35 lakh by minimizing potable water wastage at Chinchwad plant.
• Recycled and reused approximately 170,000 m3 of water at Paudh and Jhagadia plants.
• Commissioned a new industrial effluent plant at Chinchwad factory.
• Savli and Chinchwad factories won awards for HSE practices and environmental management systems.

Social Achievements

• Successfully completed 6th year of operation of Thermax Social Initiative Foundation (TSIF).
• Managed four municipal schools in Pune, with the first batch of students achieving 100% pass rate in 10th standard board exams.
• Started two more schools in Pimpri Chinchwad Municipal Corporation (PCMC).
• Launched a year-long in-service training program for teachers in PMC English Medium Schools.
• Sponsored Dalit Indian Chamber of Commerce and Industries exposition.
• Sponsored CII Symbiosis Finishing School and CII-Yi ITI Finishing School programs.
• Implemented Employee Experience Survey and created action plans based on results.
• Conducted annual Open forum for employee interaction with senior leaders.
• Maintained cordial industrial relations at all manufacturing locations.
• Conducted periodic medical checkups for employees and programs on preventing lifestyle diseases.

Governance Achievements

• Substantial adherence to key principles of corporate governance.
• Implemented comprehensive business review processes.
• Established internal control systems and automation of workflows.
• Strengthened risk management framework.
• Adopted a Code of Conduct for Board members and senior management.
• Adopted a Whistle Blower Policy.
• Complied with SEBI (Prohibition of Insider Trading) Regulations 1992.

Climate Goals & Targets

Environmental Challenges

• Slowdown in the national economy and capital goods sector.
• Difficulties in the power sector, resulting in fewer investments and order finalizations.
• High inflation, increased current account deficit, and controlling monetary response.
• Slow economic turnaround in global markets, especially Europe and the US.
• Increased competition in international markets.
• Slow reform process and delays in infrastructure projects.
• Slowdown in decision-making regarding environment clearances, fuel linkages, and land acquisition.
• Water scarcity in some areas.
• Low price of Certified Emission Reductions (CERs) in the global market.

Mitigation Strategies

• Strategies to capture revenue spend of customers, grow standard products, selectively internationalize, and develop new businesses and product portfolios.
• Focus on internal discipline and efficiency improvement programs.
• Cost reduction exercises.
• Thrust on Africa, South East Asia, and the Middle East markets.
• Investments in product development (11 new product lines commercialized in three years).
• Operational excellence program with improvements in supply chain, process debottlenecking, and value engineering.
• Focus on captive power generation.
• Strategic spread of product businesses catering to SMEs and other process industries.
• Expansion into solar photovoltaic space.

Supply Chain Management

Responsible Procurement

• Supplier diversity initiatives (e.g., sponsoring Dalit Indian Chamber of Commerce and Industries exposition).

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Dry Coolers
• Hybrid Chillers
• Aquaerotherm (solid fuel fired hot air generator)

Awards & Recognition

• Asia Innovator Award for Thermax MD & CEO
• CII and Greentech Foundation awards for Savli and Chinchwad factories

Environmental Metrics

ESG Focus Areas

• Energy Efficiency
• Environmental Protection
• Sustainable Solutions
• Talent Management
• Corporate Social Responsibility

Environmental Achievements

• Commissioned an electrostatic precipitator (ESP) at Baanrai Sugar Industries, Thailand, removing fine particles from boiler emissions.
• Introduced ComBloc, a packaged boiler offering fuel flexibility and high thermal efficiency, reducing reliance on specific fuel types.
• Construction of Environment House using fly ash bricks and incorporating skylights for natural light.

Social Achievements

• Won the India Talent Management Award for excellence in leadership.
• Thermax Social Initiative Foundation (TSIF) expanded educational initiatives to more schools and launched a teacher training program.
• Thermax Industrial Relations team received the Best Human Response Award for harmonious industrial relations and employee-friendly policies.

Governance Achievements

• Constituted a CSR Committee as per the Companies Act, 2013.
• Revised sexual harassment policy to comply with the Sexual Harassment of Women at Workplace Act, 2013.
• Implemented a Whistle Blower Policy.

Climate Goals & Targets

Environmental Challenges

• Subdued industrial environment and challenging market conditions.
• Slowdown in the manufacturing sector and core sectors (power, steel, cement, infrastructure).
• Slow pace of project execution due to lack of urgency within the user industry.
• Fierce competition reducing margins.
• Losses incurred by Thermax (Zhejiang) and joint venture subsidiaries.

Mitigation Strategies

• Focus on improving internal efficiencies and operational excellence.
• Increased share of revenue from services and international business.
• Introduction of new products (ComBloc boiler, triple effect absorption chiller).
• Strict cost controls and tighter monitoring.
• Selective internationalisation program for improved revenue and profits.
• Consolidation of business presence in South East Asia and Africa.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• ComBloc boiler
• Triple effect absorption chiller
• Solar products for process heating and cooling
• Indoor air quality technology

Awards & Recognition

• India Talent Management Award
• Best Human Response Award
• National Intellectual Property Award
• Best Innovator Award
• Safety Innovation Award

Environmental Metrics

ESG Focus Areas

• Education
• Skill Development
• Employability
• Environmental Conservation
• Safety
• Health

Environmental Achievements

• Reduced electricity consumption by 2% per cubic meter of resin produced at Paudh facility.
• Reduced fuel consumption per cubic meter of resin produced by 2% at Paudh facility.
• Recycled around 74000 m3 water at Paudh and Jhagadia facilities.
• Annual saving of Rs. 126 lakh in electricity cost at Chinchwad and Savli facilities.
• Saving of Rs. 40 lakh in fuel cost by using biomass as fuel at Chinchwad factory.

Social Achievements

• Successfully completed eight years of operation of Thermax Social Initiative Foundation (TSIF).
• Partnership with two Municipal Corporations (PMC & PCMC) covering six schools, catering to over 2,100 students in Pune.
• Teacher training program ‘Leadership Institute for Teachers’ (LIFT) impacted nearly 5,200 children.
• Supported ‘Teach for India’ activities in Pune.
• Set up a vocational Skill Development Centre in Pune.

Governance Achievements

• Automated a number of controls and upgraded Oracle ERP to the latest R-12 platform to strengthen internal control system.
• Constituted a Risk Management Committee and prepared a Risk Management Policy.
• Formulated a policy on ‘Familiarisation programme for independent directors’.

Climate Goals & Targets

Environmental Challenges

• Subdued industrial environment and stagnant demand in core sectors (power, cement, steel, oil & gas).
• Lower crude oil prices posing challenges to renewable energy sector.
• Aggressive competition from European and Japanese companies.
• Continued losses in Omnical Kessel (German subsidiary).
• Negative bottom line in Water and Waste Solutions business.

Mitigation Strategies

• Cost containment, waste reduction through value-engineering, and diligent management of manufacturing, supply-chain, project management, and construction.
• Prudent investment in renewable energy sector.
• New product introductions and enhanced market coverage in B-to-C segments.
• Small and medium-sized captive power plant orders in Africa and South East Asia.
• Focus on standard products and industrial projects in Water and Waste Solutions business, exiting Omnical.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Thermeon
• Heat transformer
• BioCask
• Solar boiler

Awards & Recognition

• Best Concentrated Solar Thermal manufacturer award from Ministry of New and Renewable Energy
• Safety Innovation Award 2014
• Safety Award 2014
• ‘L&D Team of the Year’ award
• BML Munjal Awards 2015

Environmental Metrics

ESG Focus Areas

• Energy management
• Design upgradation & improvements
• Waste management
• Climate change-related risks
• Water management
• Emission management
• Local employment
• Occupational health & safety
• Talent acquisition and retention
• Responsible supply chain management
• Labour management relations
• Diversity & equal opportunity
• Ethics & integrity

Environmental Achievements

• 30.61% target achieved in FY 23-24 at Group level and 16% reduction achieved at Thermax Limited on a standalone basis in absolute carbon emissions compared to the base year of 2019.
• Successful procurement of renewable electricity for major manufacturing plants
• Installation of solar rooftop systems at critical locations like Solapur and Bhosari plants
• Strategic switch from natural gas to biomass fuel in the boiler at the Dahej plant
• Solapur plant achieves water positive certification with a water positive index of 6.59

Social Achievements

• Various measures to attract and retain talent through initiatives such as job rotation, up-skilling, reskilling, training, fast-track promotion, leadership development programmes, etc.
• Initiatives to improve the well-being of employees
• Emphasis on local hiring

Governance Achievements

• Implementation of a Code of Conduct for all employees with zero-tolerance towards bribery and corruption.
• Periodic review and Board approval of Thermax Code of Conduct, CSR, terms of reference of Stakeholder Relationship Committee and Whistleblower policy

Climate Goals & Targets

Environmental Challenges

• Complexity of transitioning existing industries into cleaner and more sustainable alternatives
• Cost implications for implementing technological innovations
• Assessing and managing the sustainability practices of suppliers and mitigating environmental or associated social risks
• Data collection and reporting on ESG performance metrics across the organisation

Mitigation Strategies

• Ongoing innovation
• Strategic partnerships
• Stakeholder engagement
• Continuous improvement of ESG practices

Supply Chain Management

Supplier Audits: 50% of value chain partners assessed

Responsible Procurement

• Vendor code of conduct

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and environment-friendly solutions

Reporting Standards

Frameworks Used: BRSR Core

Certifications: ISO 9001, ISO 14001, ISO 45001

Third-party Assurance: Price Waterhouse Chartered Accountants LLP

Sustainable Products & Innovation

• Fuel cell development
• Mobile air conditioning system (HVAC)
• Green hydrogen
• Bio hydrogen
• Industrial wastewater treatment systems

Awards & Recognition

• SUP-free certification from CII