Climate Change Data

Wheels India Limited

Climate Impact & Sustainability Data (2022-2023, 2023-2024)

Reporting Period: 2022-2023

Environmental Metrics

Total Carbon Emissions:24931 Metric tons of CO2 equivalent (Scope 1) and 64660 Metric tons of CO2 equivalent (Scope 2)
Scope 1 Emissions:24931 Metric tons of CO2 equivalent
Scope 2 Emissions:64660 Metric tons of CO2 equivalent
Renewable Energy Share:26.5%
Water Consumption:360721 kiloliters
Waste Generated:1877.063 metric tonnes
Carbon Intensity:20.68 Metric tons of CO2 equivalent/INR Cr (2022-23)

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Approximately 41% of the energy is met by wind energy in Tamil Nadu plants.
  • Extensive efforts to reduce water consumption across the plants.
  • Replaced LDO (Light Diesel Oil) with PNG (Piped Natural Gas) at one of its facilities to minimize GHG emissions.

Social Achievements

  • Initiatives for employee well-being including health insurance, accident insurance, maternity benefits, and day care facilities.
  • Focus on employee safety with various committees and programs.
  • CSR activities focused on education, health, hygiene, agriculture, and women's empowerment.

Governance Achievements

  • Implementation of IT based Governance, Risk and Compliance (GRC) software.
  • Constitution of various committees including Audit Committee, Nomination and Remuneration Committee, Stakeholders Relationship Committee, and Risk Management Committee.
  • Compliance with SEBI LODR and Companies Act, 2013.

Climate Goals & Targets

Short-term Goals:
  • Increase reliance on renewable energy sources to meet 70% of its electrical needs in the next 3-4 years.

Environmental Challenges

  • Underutilization of capacities in some export businesses and higher interest costs due to rates and revenue growth.
  • Geopolitical tensions, supply chain issues, and inflation.
  • Windmill component business impacted by customer requirements for pre-delivery inspection and rectification.
Mitigation Strategies
  • Working capital optimization to improve profitability.
  • Energy conservation activities, increased renewable energy use, and focus on resource efficiency.
  • Addressing supply chain issues and working on growing business in international markets.

Supply Chain Management

Responsible Procurement
  • Supplier Sustainability Policy

Climate-Related Risks & Opportunities

Opportunities
  • Energy conservation measures

Reporting Standards

Frameworks Used: BRSR (Business Responsibility and Sustainability Report)

Certifications: ISO 14001, IATF 16949, ISO 45001

Reporting Period: 2023-2024

Environmental Metrics

Scope 1 Emissions:25108 Metric tons of CO2 equivalent
Scope 2 Emissions:70785 Metric tons of CO2 equivalent
Renewable Energy Share:26.6%
Total Energy Consumption:31,475 MWh
Water Consumption:3,74,467 kiloliters
Waste Generated:4,688.024 metric tons
Carbon Intensity:20.81 Metric Tons of CO2 per crore rupees of turnover

ESG Focus Areas

  • Energy management
  • Waste management
  • Water management
  • Carbon footprint reduction
  • Customer ESG Ratings
  • Supply chain ESG
  • Resource efficiency
  • Health & Safety
  • Leadership
  • Data security

Environmental Achievements

  • Reduced energy intensity by 0.5% per crore rupees of turnover due to process innovations and energy efficiency/conservation measures.
  • Reduced water intensity by 2.40%.
  • Utilized off-site wind and solar energy, accounting for 26.6% of total power consumption (31,475 MWh).

Social Achievements

  • Provided flood relief to 500 underprivileged families.
  • Initiated a mental health program for adolescents.
  • Supported small and marginal farmers through village knowledge centers, village weather stations, and ecological farming techniques.

Governance Achievements

  • Obtained TISAX AL3 label from TUV SUD on information security.
  • Implemented a whistleblower policy.
  • Consistently achieved key performance indicators (KPIs) in accordance with international standards (ISO 9001, IATF 16949, ISO 14001, ISO 45001).

Climate Goals & Targets

Medium-term Goals:
  • Carbon neutral by 2033 (scope 1 & 2)
  • Zero waste to landfill by 2030
Short-term Goals:
  • RE75 - 75% electricity from renewable sources by 2026
  • Water neutral by 2027

Environmental Challenges

  • Subdued demand in the domestic wheel market.
  • Disruptions in production due to Chennai floods.
  • Decline in tractor output volumes due to erratic weather and higher interest costs.
  • Muted volumes in the cast aluminum business.
  • Declining demand in the mining sector.
  • Muted demand for windmill components.
  • Muted growth in exports.
  • Effective cost management challenges.
  • Difficult year for subsidiary WIL Car Wheels Ltd. due to reducing steel wheel fitment.
Mitigation Strategies
  • Focus on air suspension and the trailer market.
  • Standardization of manufacturing processes across wheel plants.
  • Inroads into export opportunities with global tractor manufacturers.
  • Starting supplies to a large Indian vehicle manufacturer in Q1 of the coming year.
  • Cost rationalization and other steps to improve profitability of WIL Car Wheels Ltd.
  • Incorporation of a subsidiary in the USA and plans to form a subsidiary in Europe to grow the export business.
  • Processes in place to better manage costs.

Supply Chain Management

Supplier Audits: 40%

Responsible Procurement
  • Supplier sustainability policy

Climate-Related Risks & Opportunities

Physical Risks
  • Floods
  • Cyclones
Transition Risks
  • EU policies like CBAM, ESRS, CSRD & CSDD
Opportunities
  • Increased dependency towards renewable energy
  • Decarbonization through new technologies

Reporting Standards

Frameworks Used: NGRBC

Certifications: ISO 14001, IATF 16949, ISO 45001, TISAX AL3

Third-party Assurance: NA