Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Community Development
• Employee Well-being
• Economic Performance
• Supply Chain Sustainability
• Product Safety
• Waste Management
• Water Management
• Emission Management
• Stakeholder Engagement

Environmental Achievements

• 100% use of R32 in room air conditioners in FY 20
• 100% e-waste recycling target achieved in FY 20
• Installed a 700 KW rooftop solar system at Waghodia
• Avoided 109 tCO2e of emissions in FY 20 through energy efficient initiatives
• Reduced usage of wooden packaging and started using cardboard
• Transition to green and eco-friendly refrigerants

Social Achievements

• 4.03 score on Employee Engagement Survey in FY 20
• 19% reduction in high-consequence work-related injuries in FY 20
• 37,232 direct beneficiaries of CSR projects in FY 19 and FY 20
• 20.25 crores spent on CSR in FY 19 and FY 20
• Increased deployment of female personnel on the shop floor at Waghodia plant
• Successfully trained 5,222 youth from marginalized sections of the community with an average placement ratio of 87%

Governance Achievements

• Adoption of Tata Business Excellence Model
• Established Whistle Blower Policy
• Established Prevention of Sexual Harassment (POSH) policy
• No instances of corruption, anti-competitive behavior, or anti-trust and monopoly practices in the reporting period

Climate Goals & Targets

Environmental Challenges

• Increasing competitive intensity and aggressive pricing
• Climate change causing shorter summers
• Political developments impinging on trade
• COVID-19 pandemic (economic slowdown, loss of business, supply chain disruption, changes in buying trends, lower infrastructure spends)
• Increased volatility in currency
• Risks around health and safety of employees
• Exposure of sensitive data and operations due to cyber attacks

Mitigation Strategies

• Investments in joint ventures to increase product portfolio
• Development of energy efficient products and spaces
• Robust strategy for profitable sustainable growth
• Periodic review of major risks and formulation of action plans
• Measures to ensure business continuity during COVID-19, including remote work and health and safety protocols

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier code of conduct under TCOC
• Regular visits and audits to local vendors’ premises
• Technical support to vendors for sustainable packaging
• Evaluation and training of vendors for continuous quality improvement

Climate-Related Risks & Opportunities

Physical Risks

• Climate change causing shorter summers, affecting sales of cooling products

Transition Risks

• Regulatory changes related to refrigerants

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Sustainable Development Goals (SDGs), UN Global Compact (UNGC)

Certifications: LEED Platinum (Paryavaran Bhawan)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 2: Zero Hunger
• Goal 4: Quality Education
• Goal 6: Clean Water and Sanitation
• Goal 8: Decent Work and Economic Growth
• Goal 10: Reduced Inequalities
• Goal 12: Responsible Consumption and Production
• Goal 17: Partnerships for the Goals

CSR initiatives aligned with SDGs; skill development programs, community development projects, and disaster mitigation efforts.

Sustainable Products & Innovation

• Energy-efficient ACs, refrigerators, washing machines
• Products using R-32 refrigerant
• Adjustable inverter ACs

Awards & Recognition

• Tata Business Excellence Awards, 2019
• Dun & Bradstreet Best Corporate Award, 2018
• Mint-EY Emerging Technology Award, 2018
• Green Building Category Award for Paryavaran Bhawan
• Smart Cities India Awards 2018

Environmental Metrics

ESG Focus Areas

• Environmental Value Creation
• Social Value Creation
• Governance Value Creation

Environmental Achievements

• Shifted towards 100% Zero ODP for new RAC products
• Saved 832,000 liters of water per year through process optimization
• Installed 265 Iron Removal Plants for safe drinking water in Bihar
• Managed 9,504 MT of E-waste (more than 100% of FY 2020-21 target)
• Completed 300 MW Solar Energy Projects for Clients
• Planted 1,865 saplings

Social Achievements

• Launched ‘Mission Gaurav’ providing support to 4 lakh households of COVID-19 migrant communities in Uttar Pradesh
• 70% reduction in Lost Time Injury Frequency Rate since FY 2019-20
• Conducted 1146 training modules through Skillsoft, Percipio and classroom trainings resulting in over 307,842 employee learning hours
• Established worker accommodation camp at Jebel Ali with modern amenities

Governance Achievements

• Implemented Tata Business Excellence Model (TBEM) for tracking progress on long-term strategic goals
• Adopted Tata Code of Conduct (TCOC) for ethical standards
• Established a Whistle Blower Policy
• No violations of statutory Corporate Governance requirements

Climate Goals & Targets

Environmental Challenges

• Commodity price increase
• Currency volatility
• Information security risks
• Coronavirus pandemic
• Supply chain disruptions
• Climate change
• Import tariffs
• Health & safety risks

Mitigation Strategies

• Robust risk management policy and framework
• Periodic review of major risks and concerns
• Mitigation plans formulated by business units and corporate level
• Corporate risk matrix reviewed by Risk Management Committee

Supply Chain Management

Responsible Procurement

• Sourcing from local suppliers
• Sustainable packaging
• Encouraging vendors to eliminate plastics
• Tata Code of Conduct (TCOC)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option (GRI Standards 2018 for GRI 303 & 403; GRI Standards 2020 for GRI 306; GRI Standards 2016 for others), UNGC, UN SDGs

Certifications: ISO 45001

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 6 (Clean Water and Sanitation)
• Goal 8 (Decent Work and Economic Growth)
• Goal 13 (Climate Action)

Various initiatives contributing to these goals are detailed throughout the report.

Sustainable Products & Innovation

• Adjustable Air-conditioning Technology
• UVC Sterilisation Technology
• Anti-Microbial Coating
• Air Cooled and Water-Cooled Screw Chillers
• Vapour Absorption Chillers
• Foot operated water dispenser and IR operated water cooler

Awards & Recognition

• National Energy Conservation Award 2020
• Tata Business Excellence Group Award
• Tata Son’s ‘Making Customer Smile Award’
• Best Safety Auditing Practice 2020 Award
• 5 Major Honors at the Construction Week Oman Awards 2021
• Annual Safety, Health & Management (SHE) Award 2020
• National Winners in Four Categories by Middle East Economic Digest Award 2020
• Workplace Safety and Health (WSH) Awards 2020

Environmental Metrics

ESG Focus Areas

• Energy Efficiency
• Resource Efficiency
• Supply Chain Management
• Local Manufacturing
• Rural Electrification
• Water Security
• Fair Labor Practices
• Health and Safety
• Community Engagement
• Stakeholder Engagement
• Product Lifecycle
• Emission Management
• E-Waste Management
• Environmental Compliance
• Economic Performance and Market Share
• Governance and Ethics

Environmental Achievements

• Reduced carbon footprint by 472.017 MT through solar rooftops
• Saved 14,138 KL of water and 2.69 MT of carbon footprint through water saving initiatives
• Reduced diesel consumption and 6.48 MT of CO2 carbon footprint by using battery operated material handling equipment
• 100% zero ODP for new RAC products
• 7,800+ KL quantum of water recycled
• 11,500+ MT e-waste recycled
• 300 MW solar energy projects commissioned
• 265 water treatment plants installed in Bihar

Social Achievements

• Trained over 20,000 contractual and flexi-staff through Handy Train app
• Achieved almost 100% Covid-19 vaccination of its workforce
• Provided support to Covid-19 affected families
• CSR spend of ₹12.94 crores
• 10,000+ villagers benefited through CSR interventions
• 88% customer satisfaction index (consumer)
• Successfully trained many youth from marginalized sections of the community

Governance Achievements

• Robust risk management policy and framework in place
• Adequate mitigation plans for material risks
• Robust Internal Financial Control (IFC) framework
• Independent Internal audit function
• Compliance with Corporate Governance requirements specified in Listing Regulations

Climate Goals & Targets

Environmental Challenges

• Increase in commodity prices and higher ocean freight impacting margins
• Shorter summers affecting sales of cooling products
• Higher import tariffs impacting profitability
• Short-term impact on business due to the Covid-19 pandemic
• Potential currency volatility and inflation diluting earnings
• Risks pertaining to employee health and safety
• Exposure of sensitive data due to cyber attacks
• Supply chain disruptions, raw material shortages, and rising commodity prices

Mitigation Strategies

• Value engineering initiatives to drive better margins
• Planned procurement to mitigate escalating raw material and logistics costs
• Focus on timely collections in all businesses
• Selecting orders of high quality and better margins
• Enhancing productivity and cost rationalisation
• Cost austerity measures
• Investing in better rated and secured investments
• Maintaining at least 25% of forex exposure hedged
• Reserving earnings in foreign currency in EEFC and taking forward contracts
• Developing localized ecosystem to reduce dependency on imports
• Participating in the Government’s Production Linked Incentive (PLI) Scheme

Supply Chain Management

Supplier Audits: Quarterly onsite audits

Responsible Procurement

• Tata Code of Conduct
• ISO certifications
• Labor practices
• Safety, quality, delivery and service ratings

Climate-Related Risks & Opportunities

Physical Risks

• Shorter summers

Reporting Standards

Frameworks Used: International Integrated Reporting Council (IIRC)

Certifications: ISO 45001, ISO 14001, ISO 9001

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)

Initiatives contribute to universal access to affordable and clean energy and climate action

Sustainable Products & Innovation

• Maha Adjustable Inverter AC
• PureAir Inverter AC with HEPA filter
• UVC Disinfection
• Air conditioners with protective coating to cooling coil
• Chest freezers and Chest Coolers with R290 refrigerant

Awards & Recognition

• National Energy Conservation Award (5 times)
• Top Contributor Award – Tata Best Practices Programme
• HSE Excellence Gold Award 2021