Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Management
• Waste Management
• Supply Chain Sustainability
• Employee Wellbeing
• Community Development
• Governance

Environmental Achievements

• 49% Reduction in Fresh Water Intake
• 153+ Tons Waste Reused
• 54,708+ Trees Planted
• 100% Environmental Compliance
• Installation of 1,071 LED Lights resulting in projected power savings of approximately 3,61,544 kWh per year
• Replacement of 12 normal air conditioners with inverter air conditioners saving 63,570 kWh annually
• Installation of a 5 kW Off-Grid Rooftop Solar System saving 3,873.6 kWh annually
• Implementation of Utility Management System (UMS) and Energy Management System (EMS) for efficient data management and energy optimization

Social Achievements

• 1.5+ Lakh Beneficiaries of Health and Education programs
• 50% Critical Suppliers Assessed on ESG parameters
• 98% of permanent workers undertook skill upgradation training
• 0.11 Lost Time Injury Frequency Rate
• Implementation of various employee wellbeing programs including flexible working hours, childcare, and extended parental leave
• Implementation of employee engagement initiatives such as town halls, skip meetings, and various recognition programs
• Campus Hiring initiative to bring fresh talent and promote diversity
• Implementation of Welspun Digital Institute (WDI) and Reimagine You leadership programs

Governance Achievements

• Restructuring of the Board’s CSR Committee to the ESG & CSR Committee
• Deployment of ESG Compass, an integrated digital platform for ESG data governance and reporting
• Establishment of a whistle-blower platform
• Expanded role of the Stakeholder Relationship Committee to focus on wider stakeholder grievances and feedback
• Disclosure of climate-related financial risks aligned with TCFD framework

Climate Goals & Targets

Environmental Challenges

• Increased cost of steel and difficult operating climate
• Water stress in Anjar facility
• Climate change risks including tropical cyclones, water stress, drought, riverine floods, extreme rainfall, and heat waves
• Transition risks related to policy and legal changes, technology shifts, market changes, and reputational risks
• Challenges in timely response from pre-processing site for hazardous waste

Mitigation Strategies

• Diverse product portfolio and focus on key markets (India, US, Saudi Arabia)
• Recycled water usage at Anjar facility
• Implementation of various energy efficiency measures
• Rainwater harvesting at Mandya plant
• 3R approach (Reduce, Reuse, Recycle) for waste management
• Co-processing disposal practices for hazardous waste
• Pre-processing of hazardous waste for use as alternative fuel
• ESG Compass for monitoring and managing ESG risks
• Collaboration with BP India to jointly mitigate environmental impact
• Investment in renewable energy
• Improved logistics for efficient material transportation
• Identification of a pre-processing site for hazardous waste and obtaining necessary authorizations

Supply Chain Management

Supplier Audits: 50% of critical suppliers assessed in FY22

Responsible Procurement

• Supplier Code of Conduct
• Suppliers Manual
• Workshops on sustainable procurement practices
• New supplier on-boarding process with ESG assessment

Climate-Related Risks & Opportunities

Physical Risks

• Tropical cyclones
• Water stress
• Drought
• Riverine floods
• Extreme rainfall
• Heat waves
• Coastal floods due to sea level rise

Transition Risks

• Policy and legal changes (renewable energy targets, PAT mechanism)
• Technology changes
• Market shifts (customer preferences for sustainable products)
• Reputational risks

Opportunities

• Development of energy-efficient products
• Supply of Green Hydrogen

Reporting Standards

Frameworks Used: GRI Standards (core), UN Sustainable Development Goals (SDGs), TCFD

Certifications: ISO 45001, SA8000 (two plants)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 1
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 12
• Goal 13

See SDG Mapping section (page 81)

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Gold Award at the 7th Exceed Environment Award 2020
• Golden Peacock Occupational Health and Safety Award, 2020
• Excellence Award for Swaccha Welspun Abhiyaan
• Gold Award for Occupational, Health & Safety from Assam Governor
• Merit in International Safety Awards 2022 by British Safety Council, UK
• National Award for Manufacturing Competitiveness, 2021
• Award for Digitalization in Utility Management System
• Gold Award for Manufacturing Competitiveness 2021
• Award under ‘National Welding Seminar, 2021’

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced carbon emissions (specific quantification not provided in the report)
• Joined the Hydrogen Pipe Joint Industry Project to contribute to hydrogen transportation guidelines

Social Achievements

• Not disclosed

Governance Achievements

• Published maiden sustainability report

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, UN SDGs, SASB

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

The Company has aligned its sustainability efforts and outcomes with the UN Sustainable Development Goals (SDGs)

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 21,93,438 KWh energy saved
• Investment in Special Purpose Vehicle (SPV) for supply of 42 MW Renewable energy by FY 2026
• 67,623 trees & shrubs planted
• Achieved Zero Waste to Landfill in FY23
• Achieved water intensity of 56.5 KL/Cr in FY23

Social Achievements

• INR 67.5 million spent on CSR initiatives
• 19,460 hours of training imparted
• 100,000 students benefited from WelShiksha initiative
• Over 2,000 women and adolescent girls educated on preventive care activities through Wel Swasthya
• 41,000 women beneficiaries impacted through Wel-Netrutva

Governance Achievements

• Restructuring of the Board’s CSR Committee into the ESG & CSR Committee
• ESG Policy aligned with internal processes and measurable targets
• Welspun Corp (line pipe business) achieved a score of 57 in FY23 in its ESG rating by Dow Jones Sustainability Indices (DJSI), registering an improvement of 41% over the previous year

Climate Goals & Targets

Environmental Challenges

• Climate change risks (physical and transition risks)
• Water stress
• Drought
• Riverine floods
• Extreme rainfall
• Heat waves
• Cybersecurity and data breaches related to AI integration

Mitigation Strategies

• Implementation of energy-efficient measures, renewable energy sources, and carbon offset programs
• Strategies to enhance the efficiency of material transportation
• Rainwater harvesting, water reuse, and optimizing manufacturing processes to minimize hazardous waste
• Robust cybersecurity frameworks to mitigate cyberattacks and data breaches
• Supplier Code of Conduct and ESG scoring methodology for supply chain sustainability

Supply Chain Management

Supplier Audits: 94% of critical suppliers assessed on ESG parameters in FY23

Responsible Procurement

• Sustainable Supply Chain Policy
• Responsible Procurement Policy
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Tropical cyclones
• Water stress
• Drought
• Riverine floods
• Extreme rainfall
• Heat waves
• Coastal floods due to sea level rise

Transition Risks

• Policy and legal changes (renewable energy targets, PAT mechanism)
• Technological advancements
• Market shifts in customer preferences
• Reputational risks

Opportunities

• Development of energy-efficient products
• Supply of Green Hydrogen

Reporting Standards

Frameworks Used: GRI Standards (core), UN Sustainable Development Goals (SDGs), TCFD

Certifications: ISO 45001:2018 (OHSMS)

Third-party Assurance: Price Waterhouse Chartered Accountants LLP (PWCALLP)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 6 (Clean water and sanitation)
• Goal 13 (Climate action)
• Goal 8 (Decent work and economic growth)
• Goal 4 (Quality education)
• Goal 3 (Good health and well-being)

Initiatives aligned with SDGs as detailed in the report.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 21st Greentech Environment Award 2023
• Golden Peacock National Quality Award – 2023
• 12th Exceed Environment Sustainability Award 2022
• 11th Exceed Occupational, Health and Safety Award 2022
• Green Leaf Award 2022
• 22nd Greentech Environment Award 2022
• 14th EXCEED Green Future Award 2023
• 14th QCL-D.L. Shah Award 2021

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Achieved Zero Waste to Landfill Certification for the Anjar facility
• Invested in Special Purpose Vehicle (SPV) for the supply of 42 MW Renewable energy by FY 2025-26
• Planted 45,000+ trees and shrubs
• Energy intensity, water intensity, and hazardous waste intensity are improving

Social Achievements

• 8,43,960 people benefitted through Community Initiatives
• 35,176 hours of training cumulatively, across manufacturing units
• Launched Sintex Pride program for plumber community, increasing retail network by 30% YoY

Governance Achievements

• 50% Independent Directors on the board with 25% female representation
• Ranked in the Top 1 percentile globally in the steel sector on Governance scores
• Achieved the highest ESG performance score of 59 by CRISIL

Climate Goals & Targets

Environmental Challenges

• Oil price drops and slow recovery
• Commodity price risk - cost of components increase/decrease
• Increased competition
• Damage to reputation/brand
• Cyber-attack - data breach
• Failure to innovate/keep pace with modern technology
• Business interruptions (geopolitical issues, trade sanctions, natural disasters)
• Compliance
• Project financing
• Trade policy changes

Mitigation Strategies

• Conduct rigorous stress tests and hypothetical scenarios
• Undertake operational savings initiatives with strong ROI
• Prioritize initiatives for high-value customer identification and retention
• Focus on water & structural business
• Reduce dependency on the O&G sector through business diversification
• Develop a dedicated strategy for volatile components
• Use financial and operational hedging
• Manage inventory e.g. stockpiling
• Manage multi-currency business through proper hedging
• Engage continuously with steel and coating materials suppliers
• De-risk potential value loss with back-to-back coverage of steel for oil & gas orders
• Horizontal diversification of business - DI Pipes and HDPE/CPVC pipes
• Venture into product diversification - Stainless steel pipes
• Explore new products with focus on the environment and green energy
• Conduct regular customer satisfaction surveys
• Continue operational savings initiatives
• Use data analysis for a competitive edge
• Gather intelligence and assess risk
• Use industry research and advisory firms for competitive risk
• Periodic monitoring of competitors
• Improve competitive analysis
• Leverage technology and innovation for customer experience
• Maintain the highest product quality
• Zero tolerance for non-compliance and unethical practices
• Address social concerns with a dedicated CSR team
• Implement essential security measures
• Conduct component-driven and system-driven risk assessments
• Regularly conduct security audits
• Establish a procedure for responding to suspected attacks
• Restrict access control to physical equipment
• Use Active Directory for logical access to shared data
• Focus on innovation through smaller, incremental changes
• Utilize data analytics to understand consumer needs
• Engage continuously with customers
• Implement offloading and stockpiling
• Adopt a shared service center model
• Train manpower continuously and upgrade technology
• Strengthen the Research & Development team
• Increase patenting of technology
• Identify areas of vulnerability
• Consider proactive steps
• Respond to sanctions through the legal process
• Obtain insurance coverage
• Ensure adherence to the Code of Conduct
• Maintain legal compliance
• Commit to enhancing renewable energy consumption
• Maintain strong engagement with customers
• Manage relationships with bankers
• Manage relationships with steel suppliers
• Engage strongly with logistics vendors
• Undertake policy advocacy
• Tie up with lenders for project financing
• Ensure effective internal controls

Supply Chain Management

Responsible Procurement

• Supplier sustainability requirements

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters

Transition Risks

• Global policy shift towards environment and green energy

Opportunities

• Development of energy-efficient products
• Opportunities in hydrogen and carbon capture pipelines

Reporting Standards

Frameworks Used: GRI, UN SDGs, SASB

Certifications: ISO 14001, ISO 9001:2015, ISO 45001:2018

UN Sustainable Development Goals

• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 13 (Climate Action)

Initiatives contribute to these goals through water infrastructure development, renewable energy adoption, sustainable manufacturing practices, and emissions reduction.

Sustainable Products & Innovation

• Development of pipelines for transportation of Pure Hydrogen/ blended with Natural Gas

Awards & Recognition

• Ranked in the Top 4 Percentile in Global Steel Industry in S&P Global’s DJSI Corporate Sustainability Assessment
• Ranked in the Top 1 percentile globally in the steel sector on Governance scores
• Achieved the highest ESG performance score of 59 by CRISIL
• ZERO Waste to Landfill Certified to Anjar Line Pipes Manufacturing Facility
• Other awards listed in the report