Climate Change Data

Environmental Metrics

ESG Focus Areas

• Energy management and use of alternative fuel
• Natural resource management and Circular economy
• People and Communities

Environmental Achievements

• Reduced Specific Energy Consumption by 18.96% compared to FY 2019
• Reduced GHG Intensity by 7.05% compared to 2020
• 16.0% of Total Energy Requirement met from Green Energy (WHRS)
• 100% Water Requirement met by Rainwater
• Zero Liquid Discharge from Cement Plant
• 5.95 Lac MT Alternative Fuel & Raw Materials Consumed
• 9.65% Thermal Substitution Rate attained through waste fed
• 29.14% Recycled materials in total cement raw material
• 0.42 Million MT CO2 Saving During FY 2022

Social Achievements

• Zero Grievances Pending at the end of the year
• 11386 Training hours provided
• INR 157 Lac CSR spending
• 23548 Number of CSR beneficiaries

Governance Achievements

• 100% Compliance Management
• Robust systems to monitor all ESG and CSR aspects

Climate Goals & Targets

Environmental Challenges

• Regulatory changes impacting raw materials, fuel sources, land use, waste management
• Increased calls for fair hiring practices, workplace safety, compliance, and reporting
• Uninterrupted production cycle depending on timely availability of resources
• Changing customer preferences and competition
• Workplace accident risks
• Theft or pilferage risks at mines and plant
• Fossil fuel use impacting carbon footprint
• Cost and availability of fossil fuels
• Lack of corporate governance leading to waste, corruption, and negligence

Mitigation Strategies

• Robust ERM framework to monitor changing regulations and compliance
• ISO 9001, ISO 14001 & ISO 45001 certifications
• Captive limestone mines for raw material availability
• Local suppliers for other inputs
• R&D for new product variants
• Close collaboration between sales, distribution, and marketing teams
• Workplace safety policies, training, and awareness programs
• Use of alternative fuels and exploration of solar and wind energy
• Board of Directors and senior management oversight, detailed policies for all aspects of workplace

Supply Chain Management

Responsible Procurement

• Supplier's Code of Conduct and Business Ethics Policy
• Preference given to suppliers with ethical and responsible practices

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001, ISO 14001 & ISO 45001

UN Sustainable Development Goals

• SDG 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18

Business operations contribute to multiple SDGs through focus areas on energy, resource management, and community development.

Sustainable Products & Innovation

• Blended cement (PPC and PSC)

Awards & Recognition

• Various awards from Indian Bureau of Mines, Capexil, Greentech, IBCC, ABP News, DNA

Environmental Metrics

ESG Focus Areas

• Governance
• Environmental
• Social

Environmental Achievements

• Emission reduction intensity up to 25% by 2026
• GTG energy reduction up to 17% by 2026
• Double the capacity of waste heat recovery system by 2024
• Double the utilization of AFR by 2026
• Implemented Zero Liquid Discharge mechanism
• 400 KLD Sewage Treatment Plant (STP) to treat sewage

Social Achievements

• Various measures for employee well-being (health insurance, accident insurance, maternity benefits)
• Training programs on health and safety, skill upgradation for employees and workers

Governance Achievements

• Policy revision/upgradation
• Whistleblower policy deployment
• Code of Business Conduct and Ethics

Climate Goals & Targets

Environmental Challenges

• Increase in prices and shortage of availability of coal
• Occupational health & safety
• Human rights and labor conditions
• Availability of fuels for power generation

Mitigation Strategies

• Finding alternative fuels
• Training/awareness/technological upgradation/review at senior level and Board committee
• Ensuring compliance with applicable laws and supporting human rights protection
• Water used in the plant for industrial cooling is recycled through cooling towers to ensure effective reuse

Supply Chain Management

Supplier Audits: 100% coverage of EHS and sustainability parameters evaluation questionnaire before onboarding

Responsible Procurement

• Supplier/vendor Code of Conduct (COC) covers EHS and Human Rights parameters

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SEBI Circular dated 10th May, 2021

Certifications: ISO 9001, ISO 14001, ISO 45001

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Management
• Water Management
• Waste Management
• Biodiversity
• Circular Economy
• Employee Well-being
• Community Development
• Corporate Social Responsibility
• Human Rights
• Corporate Governance

Environmental Achievements

• Reduced specific thermal energy consumption to 835 kCal/kg of clinker produced in FY2023-24 from 860 in FY2022-23
• Achieved 2.40% Thermal Substitution Rate (TSR) during the year by using alternative fuels
• Zero Hazardous waste sent to landfill in FY 2023-24
• Recycled 0.04 MMT of total waste generated (0.05 MMT) in FY 2023-24
• Increased green cover by 1.1 Hac

Social Achievements

• 100% Employees and Workers covered under health and safety training
• Organized a meet and greet for all channel partners, formally inducting them into SIL’s Adani Cement ‘Parivaar’
• Voluntarily spent ₹3.39 lakhs towards CSR Expenses during FY 2023-24

Governance Achievements

• Full repayment of all secured debts, including Non-Convertible Debentures
• Implemented a robust risk management framework
• Aligned SIL’s Cybersecurity with the Group standards achieving 100% Compliance in key cybersecurity initiatives at Sanghipuram

Climate Goals & Targets

Environmental Challenges

• Ineffective utilization of capacities and capabilities leading to decline in performance
• Persistent working capital constraints
• Demand volatility
• Underutilization of existing capacities
• Cash flow challenges due to longer payment terms and low capacity utilization
• Regulatory changes related to climate and environmental concerns
• Fuel and raw material security challenges due to competition for mining leases
• Cybersecurity threats associated with digitalization
• Climate-related risks (physical and transition risks)

Mitigation Strategies

• Acquisition by Ambuja Cements, resulting in funding infusion and debt reduction
• Master Supply Agreement (MSA) with Ambuja and ACC to improve capacity utilization and EBITDA
• Implementation of various projects to control pollution and adhere to emission standards
• Optimization of fuel mix, enhanced plant efficiency, increased alternative fuel utilization, and securing raw materials at economical costs
• Implementation of operational technology network segmentation, adherence to IEC 62443 standards, and cybersecurity measures
• Well-established climate governance, including policies, committees, and emergency plans

Supply Chain Management

Supplier Audits: 100% coverage

Responsible Procurement

• Sustainable sourcing procedures; EHS and sustainability parameters evaluation questionnaire for supply chain partners

Climate-Related Risks & Opportunities

Physical Risks

• Flooding, droughts, cyclones, water stress, heat stress

Transition Risks

• Regulatory changes, technology shifts, market shifts, reputational risks

Opportunities

• Development of energy-efficient products and processes; renewable energy integration

Reporting Standards

Frameworks Used: BRSR

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, ISO/IEC 17025:2017

Third-party Assurance: Intertek India Private Limited

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Portland Pozzolana Cement (PPC); Portland Slag Cement (PSC)

Awards & Recognition

• Various awards for best mining operations and practices from the Indian Bureau of Mines and Directorate General of Mines Safety