Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental Stewardship
• Social Responsibility
• Governance

Environmental Achievements

• Saved 513 kilo tonnes CO2 Emissions (Management estimate)
• Reduced SO2 emissions by up to 98% through FGD plants
• Generated ~175 MW of clean electricity and steam through waste heat recovery

Social Achievements

• Launched Quest for Zero initiative to become an incident-free organization, achieving a TRIR of 0.29 (the safest year in company history)
• CSR and related expenditure of ₹197 million
• Supported scientific endeavors through the RÜTGERS Foundation in Europe and improved lives in underprivileged communities through the Pragnya Priya Foundation in India

Governance Achievements

• Implemented rigorous cost-optimization and management programs
• Established a robust risk management infrastructure focusing on strategic, legal, financial, operational, and environmental risks
• Gold CSR rating for Rain Carbon bvba (Zelzate) and Silver ratings for RÜTGERS Germany GmbH (Castrop-Rauxel, Duisburg)

Climate Goals & Targets

Environmental Challenges

• Continued softness in the Chinese economy
• Reduced automotive sales impacting demand for raw materials
• Disruption to calcination business due to India’s restrictions on petroleum coke imports
• Coronavirus (COVID-19) pandemic causing significant economic and social disruption
• Oil price volatility
• Sluggish automotive industry worldwide
• Falling demand for steel impacting graphite and refractory markets
• Weakness in pricing of larger-volume products due to a tepid liquid-fuels market
• Low capacity utilization, weak prices, and increasing input costs in the Indian cement industry
• Lack of available sand and uncertainty regarding capital in Andhra Pradesh impacting cement demand

Mitigation Strategies

• Worked through high-cost inventory of green petroleum coke (GPC)
• Developed anhydrous carbon pellets (ACP) as an alternative raw material for calcination
• Implemented state-of-the-art liquid ammonia FGD system to virtually eliminate SO2 emissions from new vertical-shaft calciner
• Designated as ‘essential businesses’ in Europe and North America, allowing continued plant operation during lockdowns
• Actively managing fluctuating global supply and demand for raw materials and finished products
• Leveraging strategic logistical infrastructure advantages
• Implementing rigorous cost-optimisation and management programmes
• Transitioning profitable products from the closed Uithoorn facility to the Duisburg facility
• Implementing additional improvements to safety management systems
• Introducing new services (Garuda and FDDS) to improve cement accessibility

Supply Chain Management

Responsible Procurement

• Criteria for selection of suppliers/vendors include resource efficiency, product quality, life cycle, environment impact, etc.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Growing demand for lithium-ion batteries

Sustainable Products & Innovation

• Anhydrous carbon pellets (ACP)
• NOVARES® pure resins
• CARBORES® binder
• PETRORES® specialty coatings
• ULTRASEAL sealer

Awards & Recognition

• Louisiana Chemical Association’s Safety Award
• President’s Award for employee giving (United Way)
• Spirit of Southwest Louisiana Award (United Way)
• EcoVadis Gold CSR Rating (Zelzate)
• EcoVadis Silver CSR Ratings (Castrop-Rauxel, Duisburg)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced GHG emissions by ~476,000 tonnes of CO2 equivalent through waste-heat recovery
• Planted ~60,000 trees
• Commissioned WHR power plant in Suryapet, Telangana, providing ~4.1 MW gross power generation per hour
• Commissioned 1 MW solar plant at each of its two cement plants
• Improved SO2 scrubbing efficiency by ~14% at Chalmette, Lake Charles and Norco calciners by switching to high-performance lime
• New vertical-shaft calciner in India equipped with state-of-the-art ammonia scrubbing system

Social Achievements

• Pragnya Priya Foundation supported ~2,100 students and 68,000 patients in 2020
• US$ 1.7 million donated to local charities in North America
• RÜTGERS Foundation supported more than 400 projects and reached more than 13,000 young people in Europe
• Production of disinfecting agents to safeguard local communities during the pandemic
• ~25% of non-operational employees worked from home during the pandemic

Governance Achievements

• Completed the safest year in company history with a TRIR of <0.14
• Implemented a sustainability organizational structure
• Undertook lifecycle assessments (LCA) based on standardized industry data following globally accepted assessment procedures (ISO 14067)

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting demand for products
• Hurricane Laura causing damage to Lake Charles facility
• Reduced demand for products due to global economic slowdown
• Crash in petroleum prices requiring inventory write-downs
• Supply chain disruptions due to the pandemic
• Reduced availability of high-quality anode-grade GPC

Mitigation Strategies

• Plants designated as ‘essential businesses’ during the pandemic
• Implemented aggressive hygiene and risk-reduction protocols
• Developed alternative sourcing strategies for raw materials
• Cost optimization initiatives and efficiency improvements
• Complex restoration of Lake Charles facility
• Construction of ACP production facilities in India and the US
• Shifting production of profitable resins to Duisburg plant

Supply Chain Management

Responsible Procurement

• Long-term agreements with suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Hurricanes

Transition Risks

• Reduced demand for gasoline due to electric vehicle transition
• Regulations impacting GPC availability

Opportunities

• Development of energy-efficient products
• Increased demand for CPC and CTP due to aluminium production growth

Sustainable Products & Innovation

• NOVARES® Pure advanced resins
• LIONCOAT product (extends the life of lithium-ion batteries)
• Anhydrous carbon pellets (ACP)

Awards & Recognition

• EcoVadis Gold sustainability rating – Zelzate facility
• EcoVadis Silver sustainability rating – Castrop-Rauxel and Duisburg facilities
• ICSOBA Carbon Best Paper Award – Sustainable CPC Production at the Vizag Calciner
• President’s Award and Spirit of Southwest Louisiana Award from United Way of Southwest Louisiana

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Efficiency
• Waste Minimization
• Health and Safety
• Community Engagement
• Product Sustainability
• Diversity and Equal Rights
• Sustainable Infrastructure Development
• Energy Efficiency
• Circular Economy

Environmental Achievements

• Continued growth of solar power generation capacity
• Implementation of energy-efficiency projects and waste-heat recovery systems
• Use of heat generated in industrial processes to generate energy
• Wide use of flue-gas desulphurisation and continuous emission monitoring systems
• Leak detection and repair project

Social Achievements

• Expanded service to local communities through charitable foundations and employee-driven activities (free schools, hospitals, scholarships, volunteer work, donations)
• Rollout of Life-Saving Rules initiative to improve employee safety
• Promotion of healthy and active lifestyle via multiple activities and regular health check-ups
• Family-friendly working time models (Mobile Working Policies)
• Support for Pragnya Priya Foundation in India focusing on education and health for underserved communities

Governance Achievements

• Creation of organizational structure to actively promote sustainability
• Regular Sustainability Steering Committee and core team meetings
• Conduct of materiality assessment for Carbon and Advanced Materials segments
• Identification of eight environment-, social-, and product-related material topics

Climate Goals & Targets

Environmental Challenges

• Significant energy consumption and CO2 emissions
• Significant air emissions related to operations
• Negative impacts of some products and processes on SDGs

Mitigation Strategies

• Investing in steam and electricity co-generation and waste-heat recovery plants
• Producing solar electricity
• Utilizing energy from own processes
• Implementing energy-efficiency projects
• Continuous efforts to minimize air emissions and negative SDG impacts

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

UN Sustainable Development Goals

• 3
• 6
• 7
• 8
• 9
• 11
• 12
• 13
• 4

Alignment based on WBCSD sector roadmaps for chemical and cement industries; focus on SDGs where the sector has the highest potential to minimize negative and maximize positive impacts.

Environmental Metrics

ESG Focus Areas

• Sustainability
• Safety
• Innovation
• Cost Optimization
• Capacity Utilization
• Supply Chain Security
• Renewable Energy
• Emissions Reduction
• Water Conservation
• Waste Management
• Employee Well-being
• Community Development
• Ethical Business Practices
• Corporate Governance

Environmental Achievements

• Avoided GHG emissions of 0.39 Mn metric tonnes of CO2 equivalent (based on electricity and steam generation from waste heat recovery systems)
• Generated 0.98 Mn MWh of power from waste heat recovery
• Generated 0.03 Mn MWh of solar power
• Utilized over 40% green power (solar and waste heat recovery) in Cement segment operations
• Reduced hazardous waste from truck unloading processes by 27.75 tonnes
• Implemented various emission reduction measures at multiple sites (e.g., low-NOx burners, dust-free bagging systems, de-NOx units)

Social Achievements

• Cumulative 50,058 hours of employee training
• Patients treated at Pragnya Priya Foundation hospital: 102,175
• Students educated at Pragnya Priya Foundation schools: 2,458
• Total Recordable Injury Rate (TRIR): 0.26 (Carbon & Advanced Materials segments)
• Trees planted: 87,308
• Implemented various initiatives for employee well-being and engagement
• Expanded dealer network for cement sales
• Introduced unpackaged cement to reduce plastic consumption

Governance Achievements

• Became a signatory of the UN Global Compact
• Implemented OSHA guidelines and GRI standards across Carbon & Advanced Materials segments (Cement segment in progress)
• Implemented robust risk management framework
• Refined the Code of Conduct and Ethics
• Strengthened whistle-blower policy
• Improved Board diversity

Climate Goals & Targets

Environmental Challenges

• Challenging economic conditions impacting demand for CPC and CTP
• Increased competition in CPC and CTP markets
• Fluctuations in exchange and interest rates
• Slowdown in customer confidence impacting Advanced Materials segment
• Increased competition from Asian products in Advanced Materials segment
• Restrictions on GPC imports into India impacting Carbon segment capacity utilization
• Geopolitical and climate-related supply chain disruptions

Mitigation Strategies

• Cost optimization initiatives (office consolidation, plant optimization, workforce streamlining)
• Focus on cost efficiency and operational excellence
• Expansion of raw material sources through R&D and logistical innovations
• Development and marketing of ISCC PLUS-certified products
• Strategic investments in renewable energy (solar power, waste heat recovery)
• Refining of processes to stay competitive
• Leveraging technical expertise to optimize customer product utilization
• Debt refinancing and reduction
• Prepayment of debt to reduce interest costs
• Anticipating price stabilization in the latter half of 2024

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct (USA)
• Annual performance assessment of selected suppliers (Germany)
• Implementation of environmental and energy management systems by suppliers

Climate-Related Risks & Opportunities

Transition Risks

• Decarbonization policies

Opportunities

• Development of energy-efficient products
• Renewable energy investments

Reporting Standards

Frameworks Used: GRI, UN Global Compact

Certifications: ISO 45001 (Cement and some European sites), ISCC PLUS (Duisburg site)

Sustainable Products & Innovation

• NOVARES® Eco product line
• Anhydrous Carbon Pellets (ACP)

Awards & Recognition

• EcoVadis gold medals (Belgium, Germany, Canada)
• EcoVadis silver medal (USA)
• President’s Award for Excellence in Safety (multiple facilities)
• Various Mines Safety and Sustainability awards (India)