AIA Engineering Limited
Climate Impact & Sustainability Data (2022-23)
Reporting Period: 2022-23
Environmental Metrics
Total Carbon Emissions:313329 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:28474.83 tCO2e/year
Scope 2 Emissions:287624.15 tCO2e/year
Scope 3 Emissions:187457.31 tCO2e/year
Renewable Energy Share:17%
Water Consumption:270064 m3/year
Waste Generated:136512.77 tons/year
Carbon Intensity:0.7815 MTCO2e/rupee of turnover (Scope 1 & 2), 0.4635 MTCO2e/rupee of turnover (Scope 3)
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- Increased usage of renewable energy from 17% to 20% of total power requirement (target by 2027)
- Increased usage of sand from glass manufacturing companies from 7.1% to 15% of total sand requirement (target by 2027)
- Zero single-use plastic in packaging and drinking water bottles (ongoing)
- Production of bricks and paver blocks from discard sand, dust, and plastic (target: 100,000 by 2030)
- Conversion of 2 motors to 4 motors (more energy-efficient) (ongoing)
- Change of employee transportation buses from diesel to electric/hybrid (by 2030)
- Planted approximately 100,000 trees
Social Achievements
- Launched employee well-being programs (ongoing)
- Employee Satisfaction Survey (target: at least 80% satisfaction by 2027)
- Zero theft with respect to truck drivers (target by March 2027)
- Ensuring no child labor/forced labor in top 50 MSME vendors (target by 2027)
- Enhance customer satisfaction index from 97% to 98.5% (target by 2027)
- Reduce vendor complaints from 26/year to 10/year (target by 2027)
- Reduce employee grievances from 14/year to 4/year (target by 2027)
- Support start-ups and entrepreneurs to manufacture recyclable material (by 2030)
- Support selective MSME vendors to adopt sustainable initiatives (by 2030)
Governance Achievements
- Established a robust ESG governance framework with specific policies and systems
- Started Climate Reporting as per CDP
Climate Goals & Targets
Long-term Goals:
- Net zero emissions (target year not specified)
Medium-term Goals:
- Achieve 100% recyclable products by 2027
- Produce 100,000 bricks/blocks from waste by 2030
- Convert employee transportation buses to electric/hybrid by 2030
- Increase engagement with associations and influence public policy by 2030
- Support start-ups and MSMEs to adopt sustainable initiatives by 2030
Short-term Goals:
- Reduce water consumption (ongoing)
- Increase renewable energy usage to 20% by 2027
- Increase sand usage from glass manufacturers to 15% by 2027
- Zero theft w.r.t. truck drivers by March 2027
- Enhance customer satisfaction index to 98.5% by 2027
- Reduce vendor complaints to 10/year by 2027
- Reduce employee grievances to 4/year by 2027
- Ensure no child labor/forced labor in top 50 MSME vendors by 2027
Environmental Challenges
- Drop in employee productivity due to increased temperatures during summer months
- Supply chain disruptions
- Net-zero ambition of customers requiring a climate strategy with GHG emission reduction targets
Mitigation Strategies
- Improved working conditions and initiatives to enhance air circulation at plants
- Normalisation of global shipping disruptions and scrap import
- Developed a Climate Strategy including GHG emission reduction
Supply Chain Management
Responsible Procurement
- Sourcing 10% silica sand from sustainable sources
- Sourcing 71% recyclable material
Climate-Related Risks & Opportunities
Physical Risks
- Increased temperatures impacting employee productivity
Transition Risks
- Net-zero ambition of customers
Opportunities
- Reducing energy consumption of products
- Meeting customer climate-related disclosure mandates
Reporting Standards
Frameworks Used: CDP
Certifications: ISO 9001:2015, ISO 45001:2018, ISO 14001:2015
Third-party Assurance: Bureau Veritas, India (BVQI), Lloyd’s Register, Confederation of Indian Industries (CII)
Sustainable Products & Innovation
- Eco-friendly bricks and paver blocks from waste materials