Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Society
• Governance

Environmental Achievements

• Reduced CO2 emission by 85%, SOx by 90% and NOx by 20% when compared to sintering.
• Achieved 85% waste heat recovery from fuel gases and utilized them to produce steam and electrical energy.
• Planted 25688 trees in and around its manufacturing units.

Social Achievements

• Constructed a school for mentally handicapped children.
• Constructed a computer center in village Kachhe.
• Provided financial aid to ‘Udaan’ Yojna of Raipur District Collector, addressing tribal education.

Governance Achievements

• Strengthened its gearing from 1.4x to 1.1x.
• Protected its interest cover at around 3x.
• Repaid ₹138 Crores of long-term debt.

Climate Goals & Targets

Environmental Challenges

• Sluggish market conditions and fall in realisations.
• Impact of the Covid-19-led lockdown.
• Overall weak economic environment impacting demand for iron & steel products.

Mitigation Strategies

• Increased capacity utilisation to recover part of the decline through enhanced volumes.
• Diverted part of its pellet production to the global market, increasing export sales by 80.39%.
• Resumed operations in a phased manner after the lockdown.

Supply Chain Management

Responsible Procurement

• Procurement of goods and services from local vendors and small producers.

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Ethical Conduct
• Product Safety and Sustainability
• Employee Well-being
• Stakeholder Engagement
• Human Rights
• Environmental Protection
• Public Policy Influence
• Inclusive Growth
• Customer Engagement

Social Achievements

• Ensuring a safe, hygienic, and humane work environment
• Preventing sexual harassment
• Providing equal opportunities in recruitment and employment
• Ensuring timely wage payments
• Providing skill and competence upgrading opportunities

Governance Achievements

• Developing governance structures and procedures to ensure ethical conduct
• Communicating transparently and providing access to information
• Establishing a grievance redressal mechanism

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Embedding principles of labor practices, human rights, ethics, bribery & corruption, occupational health, safety and environment in procurement

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Highest annual iron ore mining in FY22 of 2.3 MillionT (YoY increase of 36 Per cent)
• Record annual iron ore pellets production of 2399 KT (up 6 Per cent YoY)
• Generating 42 MW captive energy from waste heat recovery and 28 MW from biomass power capacity
• Setting up three solar power projects (155 MW)
• Reduced in-plant vehicular movement and increased load ability that moderated emissions and fuel consumption
• 85% Reduction in CO2 emission from pelletization
• 90% Reduction in SOx emission from pelletization
• 20% Reduction in NOx from pelletization
• 30% Energy savings from pelletization

Social Achievements

• Your Company provided personal protective equipment to employees, enhancing workplace safety.
• It conducted a periodic medical examination for all employees.
• It invested in a closed user group mobile network for immediate emergency communication.
• It invested in an Occupational Health Centre comprising equipment like an advanced ambulance with CPR, cardiac monitor, X-Ray machine and spirometer.
• Your Company also provided a range of supports for employees: Mediclaim insurance for all, ESIC facilities for employees as per government norms, leave facilities as per norms, transportation and to and from the manufacturing facility and advance in case of medical emergencies.
• Your Company sustained its stable eco-system of vendors (those providing capital equipment, spares and resources) through repeat engagement, enhancing stability.
• Your Company engaged with the community around its mining and manufacturing locations, widening its circle of prosperity in line with the United Nations’ Sustainable Development Goals.

Governance Achievements

• Your Company exited non-core businesses by divesting its stake completely in GGEL (solar thermal power plant)
• Your Company consolidated its stake in subsidiaries; stakes increased in HFAL and GEL to 75.66 Per cent and 100 Per cent respectively
• Credit rating was upgraded to A+/ Stable by CRISIL & India Ratings and Research (Ind-Ra)
• Reduced promoters’ pledged shareholding from 32.51 Per cent in June FY 2021-22 to nil as on 25th April 2022

Climate Goals & Targets

Environmental Challenges

• Domestic challenges like inflation, liquidity crunch, slower industrial growth, depreciating rupee, political instability and increasing commodity prices might affect performance.
• The Company may be affected by impact on demand due to the competitive action within the steel sector, import from Asian countries and industry down turn.
• Technology obsolescence could warrant an increase in investments, affect cash flow and impact profitability.
• In the business of steel manufacture, a number of diverse inputs are required to be progressively taken into the next stage. The challenge lies in an ability to procure these intermediate raw materials at the right cost and in the right time.
• Delay in project completion could lead to cost overrun.
• Locational disadvantage could affect logistic and time schedules, affecting viability.

Mitigation Strategies

• GPIL correctly anticipated that the challenge of the future would revolve around the timely availability and affordability of resources and raw materials, which translated into timely backward integration initiatives.
• The Company has significantly reduced the risks arising from erratic demand through integration of operations and captive production of iron ore and pellets.
• The Company invested in the latest technologies, which enables it to manufacture quality products.
• The Company’s integrated business model which makes it possible for the end product of one business to be positioned as the raw material of another, creating a self-feeding ecosystem within minimal inventory, costing and logistic issues.
• Over the years, the Company invested in project management with the objective to strengthen overall competitiveness: as a result, the focus graduated from timely commissioning to pre-scheduled commissioning, translating into a probable cost-underrun, accelerated revenue inflow and quicker payback.
• The Company’s manufacturing facility is located at the heart of industrial Chhattisgarh at Raipur.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UNGC

Certifications: ISO 45001:2018, Great Place To Work

Sustainable Products & Innovation

• High-grade pellets

Awards & Recognition

• National Energy Management Award 2020
• Best CFO award
• First position in Waste Dump Management Category
• Third position in Publicity & Propaganda Category
• First position in Waste Dump Management (Group-A2)
• Second position in Sustainable Development (Group-A2)
• Third prize in Rolling Trophy (Group-A2)
• Third position in Mineral Conservation (Group-A2)
• Third position in Exhibition Stall
• Certificate of Achievement for Swachh Change
• SEEM Gold Award
• Awarded for HR Best Practices
• Awarded by Concor India Limited