Climate Change Data

Environmental Metrics

ESG Focus Areas

• CSR

Environmental Achievements

• Replaced 427 metal halide lamp fittings with LED fittings
• Reduced lighting energy consumption with a 60KVA energy saver
• Added 15 VFDs to existing equipment
• Replaced 40W tube lights with 20W LED tube lights
• Converted existing equipment from C9 fuel to LPG
• Reduced CO2 emissions by 3,50,400 tons per year through solar power

Social Achievements

• Village school adoption (teacher salaries, books, uniforms, water, food, furniture)
• Municipality civic maintenance and management support
• Drinking water provided to villagers
• Infrastructural support to various institutions
• Zero man-days lost due to labor unrest
• Safety and skill up-gradation training for employees

Governance Achievements

• Established a Whistle Blower Policy
• Adopted a Code of Conduct for Directors and senior management
• Complied with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Climate Goals & Targets

Environmental Challenges

• Lower GDP growth and slowdown in consumption
• Weakening consumer sentiment and lower demand
• COVID-19 pandemic and national lockdown
• Slowdown in core sectors (automotive, construction, mining, iron and steel)
• Muted market growth, credit stress, and deferred discretionary spends
• Supply-side and demand-side impacts from COVID-19
• Production shutdown due to lockdown

Mitigation Strategies

• Focused on building resilience for long-term growth
• Strategic capacity expansions and new process capabilities
• Expanding global footprint
• Strategic deepening of end-user engagement
• Expanding distribution channels
• Improving margins with cost management initiatives
• Better working capital management
• Measures to safeguard employee health and safety
• Optimising costs and expanding addressable markets
• Minimising risks throughout the supply chain
• Reducing impact on production and sales

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Effluent Treatment and Recycling Plants
• Zero Liquid Discharge Plants
• Sewage Treatment Plants
• Desalination Plants
• Hand Sanitizer & Disinfectant Chemicals
• Pre-fabricated Bio Toilets
• Crystalline silicon terrestrial photovoltaic (PV) modules

Environmental Metrics

ESG Focus Areas

• Employee well-being
• CSR initiatives
• Environmental protection

Environmental Achievements

• Reduced CO2 emissions to an extent of 350400 Tons per year (by way of generating electricity from a Solar power plant vs. a coal power plant)
• Zero discharge systems and upgraded STPs

Social Achievements

• Employee welfare initiatives to manage the covid pandemic at our workplace were quite effective, due to which the infection rate was kept at less than 3% of the employee base.
• Vaccination drives for employees and immediate family members
• Village school adoption initiative
• Provided infrastructural support to various institutions

Governance Achievements

• Established a Whistle Blower Policy
• Adopted a Code of Conduct for Directors and senior management
• Maintained cordial and harmonious relations at all levels at the offices and plants of the Company and its subsidiaries

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and resultant lockdowns impacted economic activity
• Adverse impact on both supply-side and demand-side for the automobile industry
• Second wave of COVID-19 infections coupled with reimpositions of lockdown

Mitigation Strategies

• Implemented well-crafted SOPs in line with the COVID precaution guidelines
• Tying up with specific hospitals for bed and oxygen availability; organising vaccination camps at our plant and offices; establishing health camps to monitor the general health of employees; and following and enforcing all precautions at the workplace.
• Initiatives to provide our employees to have a safe environment to work from; issued on-demand supply of PPEs to our workers and staff; established strong safety protocols in all our operations; organised vaccination drives for our employees and immediate family members; established strong protocols and digital infrastructure for helping employees to work from home wherever possible; and serve our community that were in the immediate vicinity of our operations.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change Action
• Water Risk
• Waste Management
• Product Stewardship
• Human Rights
• Employee Well-being
• Stakeholder Engagement
• Supplier Sustainability
• Data Privacy
• Cybersecurity

Environmental Achievements

• Expanded renewable energy footprint with additional installations
• Treats wastewater and reuses it in manufacturing processes
• Adheres to a zero-defect standard in manufactured products to minimise waste generation and maximise reuse and recycling post-manufacturing
• All lightings changed to LED

Social Achievements

• Stringent policy for the prevention of sexual harassment, adhering to the stipulations of the Sexual Harassment of Women at the Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH Act)
• Various meetings including Communication Meetings, Daily Shift Assembly Meetings, POSH Meetings, Monthly Communication Meetings, and Union Meetings
• Ensures that any grievances are addressed promptly through the respective manager or HR
• Comprehensive Environment, Occupational Health, and Safety Management System (EOHS) in place

Governance Achievements

• Governance policies are firmly rooted in the principles of ethics, transparency, and timely disclosure
• Code of Conduct, applicable to Directors and Senior Management personnel

Climate Goals & Targets

Environmental Challenges

• Climate change poses a substantial risk to the Company, with impacts evident in the short, medium, and long term. The physical threats to the industry are significant, including extreme weather events and water scarcity.
• Water Risk: The Company recognises the scarcity of fresh water and holds a responsibility to ensure its availability and conservation for the benefit of social and ecological systems.
• Waste management poses both risks and opportunities for companies. The primary risks include potential environmental damage, regulatory non-compliance, and reputational harm if waste is not managed properly.

Mitigation Strategies

• The Company is dedicated to combating climate change through effective measures. To reduce its carbon footprint, The Company invests in innovative technologies, utilises renewable energy sources, and enhances manufacturing processes.
• The Company treats wastewater and reuses it in manufacturing processes. Additionally, it is considering introducing methods to minimise water usage and reduce overall water consumption.
• The Company’s approach to waste management at Pennar Industries Ltd embodies the principles of a circular economy: Reduce, Reuse, and Recycle.

Supply Chain Management

Responsible Procurement

• Intends to establish a sustainable supply chain programme, which will formalise environmental and social assessments for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• extreme weather events and water scarcity

Transition Risks

• evolving consumer preferences, rising product costs, and new government policies and regulations