Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance
• Economic Performance
• Occupational Health & Safety
• Water
• Energy
• Employment
• Local Communities
• Training & Education
• Customer Health and Safety
• Supply Chain Sustainability

Environmental Achievements

• Achieved ZLD status for Amine and Acid divisions (8 divisions total)
• Implemented energy saving initiatives resulting in 9,454 GJ of energy savings
• Installed waste heat recovery system

Social Achievements

• Conducted 689 training sessions, achieving 26.4 average man-hours of training per employee
• Implemented BBS-ASOP program to enhance safety
• CSR expenditure of INR 97.30 million benefiting over 26,000 people

Governance Achievements

• Established a Compliance Management System (CMS)
• Developed Aarti Management System (AMS) integrating sustainability into business strategy
• Complied with mandatory corporate governance requirements under Regulation 34(3) of the Listing Regulations

Climate Goals & Targets

Environmental Challenges

• Managing energy consumption and emissions in a chemical manufacturing industry
• Water conservation in medium to high water stress zones
• Sustainable waste management of hazardous waste
• Incorporating sustainability principles into the supply chain

Mitigation Strategies

• Investment in renewable energy and energy efficiency technologies
• Installation of ZLD facilities
• Waste heat recovery systems
• Sustainable procurement policy development
• ESG assessment of tier-1 suppliers planned

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable procurement policy development (in progress)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards, 2016: Core Option

Certifications: ISO 14001:2015 (10 facilities), ISO 45001 (9 facilities), EcoVadis Gold Rating

Third-party Assurance: Thinkthrough Consulting Pvt. Ltd. (TTC), New Delhi - Type 2 Moderate assurance as per the AA1000 Assurance Standard (2008)

UN Sustainable Development Goals

• Not disclosed

The report mentions alignment with UN SDGs but doesn't specify which goals.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• EcoVadis Gold Medal

Environmental Metrics

ESG Focus Areas

• Innovation
• Sustainability
• Environment
• People
• Health and Safety
• Communities

Environmental Achievements

• 14 of 17 manufacturing sites achieved Zero Liquid Discharge (ZLD) status
• 50 KLD sewage recycling plant in Kutch, Gujarat using Soil Biotechnology (SBT) for wastewater treatment
• Reduced GHG emissions through co-generation power plants and solar power units
• First company in India to adopt technology to extract and recycle concentrated spent sulfuric acid

Social Achievements

• Launched company-wide safety initiative called ‘BE SAFE’
• Launched employee wellness programs: Nirvana and Anahata
• Provided scholarships to students pursuing higher education
• Provided counselling to ~6,20,000 mothers on breastfeeding practices
• Donated mobile dental vans and oxygen cylinders

Governance Achievements

• Established a comprehensive Safety, Health and Environment (SHE) Policy
• Implemented a company-wide safety initiative ('BE SAFE')
• Adopted a web-based performance management system
• Established a Vigil Mechanism and Whistle Blower Policy

Climate Goals & Targets

Environmental Challenges

• Global economic weakness in some end-user segments
• Slow demand in some large usage verticals
• Sharp volatility in raw material and currency prices
• COVID-19 pandemic
• Shortage of nitric acid
• Supply chain disruptions due to COVID-19 and port issues
• Lockdown-related restrictions on manpower movement and equipment delivery

Mitigation Strategies

• Investment in technology and innovation
• Focus on value-added and high-margin products
• Expanding business volumes across markets
• Securing additional credit lines to safeguard liquidity
• Providing additional monetary assistance and food rations to temporary workers
• Prioritizing certain activities to manage project timelines
• Exploring alternative export routes from other ports

Supply Chain Management

Responsible Procurement

• Responsible Sourcing Policy with focus on environmental and social aspects
• Code of Conduct for Vendors and Service Providers

Climate-Related Risks & Opportunities

Awards & Recognition

• I.C.C. D. M. Trivedi Lifetime Achievement Award (Chandrakant V. Gogri)
• Indian Institute of Chemical Engineers Lala Shriram National Award (Rajendra V. Gogri)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced GHG emission intensity (scope-1 and scope-2) by 9.4% year-on-year from 0.99 CO2e/MT to 0.90 tCO2e/MT of production
• Avoided GHG emissions of approximately 63,750 tCO2e
• 10 out of 14 speciality chemical facilities achieved Zero Liquid Discharge (ZLD) status

Social Achievements

• Launched ‘Aarti CAANN’-Creating Awareness About New Normal to support employees during the COVID-19 pandemic
• Employee turnover rate reduced from 14% to 9%
• Spent 14.1 Cr INR in CSR initiatives impacting over 690,000 lives

Governance Achievements

• Achieved Gold Ratings on EcoVadis CSR assessment for 2020
• Acquired Responsible Care (RC) logo
• All manufacturing facilities are ISO 14001:2015 and ISO 45001:2018 certified

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting health systems and socio-economics
• Supply chain disruptions
• Climate change risks (physical and transitional)

Mitigation Strategies

• Developed a robust pandemic response plan
• Developed a business continuity plan
• Implemented a comprehensive risk management framework including climate change risks
• Integrated sustainability practices into the supply chain

Supply Chain Management

Supplier Audits: 51 new suppliers assessed; 127 existing suppliers assessed (30% of total spend)

Responsible Procurement

• Supplier Code of Conduct
• Responsible Procurement Policy
• POSH policy
• General Conditions of the Contract (GCC)
• General Conditions of Purchase (GCP)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards 2016 (2018 Updates): Core Option, AA1000AS v3, CDP, UNGC, GHG Protocol

Certifications: ISO 14001:2015, ISO 45001:2018, ISO 27001:2013 (ARTC)

Third-party Assurance: Thinkthrough Consulting Private Limited (TTC)

UN Sustainable Development Goals

• Not disclosed

CSR initiatives aligned with Sustainable Development Goals (SDGs)

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• EcoVadis Gold Rating (2020)
• Responsible Care (RC) logo

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced carbon intensity by 3% from baseline FY 2019-20
• Reduced specific energy consumption by 5% from FY 2020-21 to FY 2021-22
• Water recycled 44%
• 85%+ of hazardous waste recycled or reused

Social Achievements

• Launched ‘First Time Manager Development Programme’
• Onboarded 1,492 fresh talents, workforce expanded by 13%
• CSR initiatives impacted 12,53,633 lives
• LTIFR 0.13

Governance Achievements

• Established anti-corruption training for all employees
• Received RC LOGO
• Executive Compensation Linked To ESG: yes

Climate Goals & Targets

Environmental Challenges

• Floods causing disruption of operations
• Tropical cyclones causing disruption of operations
• Drought/water scarcity affecting operations
• Ban/restriction on agro-chemicals
• Increase in cost of fuel/carbon taxes/GHG emission norms

Mitigation Strategies

• Strengthening physical infrastructure, insurance, logistic route planning
• Water efficient operations, rainwater harvesting, water recycling/reuse
• Product development, adoption of green chemistry
• Energy efficiency, decarbonisation plan
• Adoption of energy efficient equipment/appliances, installation of Waste Heat/Steam Recovery systems, installation of renewable energy assets

Supply Chain Management

Supplier Audits: 79 existing business partners (38% of spent) assessed for ESG performance

Responsible Procurement

• General Conditions of the Contract (GCC)
• General Conditions of Purchase (GCP)
• Supplier Code of Conduct
• Responsible Procurement Policy
• POSH policy

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Tropical cyclones
• Drought/water scarcity

Transition Risks

• Ban/restriction on agro-chemicals
• Increase in cost of fuel/carbon taxes/GHG emission norms

Opportunities

• New energy-efficient technologies
• Adoption of renewable energy
• Use of high-yield variety seeds

Reporting Standards

Frameworks Used: GRI Standards: Core Option, UNGC, TCFD, BRSR

Certifications: ISO 14001:2015, ISO 45001:2018, ISO 9001:2015, ISO 27001:2013

Third-party Assurance: TÜV SÜD South Asia Pvt. Ltd.

UN Sustainable Development Goals

• 3.9
• 3.6
• 4.1
• 5.5
• 6.3
• 8.2
• 8.5
• 8.8
• 9.4
• 12.2
• 12.4
• 12.5
• 13.2
• 16.5

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• FICCI 'Company of the Era' Award 2021
• Golden Peacock Environment Management Award 2021
• GARV Award 2022
• ESG Leader of the Year (ESG Summit & Awards 2021)
• FICCI Chemicals and Petrochemicals Awards 2021
• Excellence in Procurement Awards 2022
• Economic Times Future Ready Organisation 2022
• Envirocare Green Awards 2022

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water and Effluent Management
• Waste Management
• Material Management
• Environmental Compliance
• Supply Chain Management
• Community Development
• Corporate Governance
• ESG Governance
• Empowered Workforce
• Employee Engagement
• Human Rights and Labour Practices
• Occupational Health and Safety
• Stakeholder Engagement
• Economic Performance
• Tax Governance
• Cybersecurity, Digitisation and Data Privacy
• Product Stewardship
• Biodiversity
• Customer Health & Safety and engagement

Environmental Achievements

• Reduced specific energy consumption by 10%
• Reduced specific GHG emissions by 5% from the baseline
• Avoided 1,00,154 tCO2e emissions through energy recovery
• Maintained water recycling ratio to 44% despite an 11% increase in water consumption
• Recycled 44% of water withdrawn
• 11 out of 16 manufacturing units are Zero Liquid Discharge (ZLD)
• Recycled and reused 92% of hazardous waste
• Diverted 7,366 MT of waste to co-processing and 4,233 MT of mixed waste to cement industry
• Reduced energy consumption by 60% in a distillation process through process intensification

Social Achievements

• Increased female employees by 11%
• Enhanced employee engagement score from 3.97 to 4.14
• Spent approximately ₹15 Crore on various CSR initiatives, impacting over 0.35 million individuals
• Achieved 100% employee participation in safety perception and employee engagement surveys
• Implemented affirmative action and offered guidance and counselling to enhance gender diversity

Governance Achievements

• Received a Gold Rating in the EcoVadis CSR assessment for 2023
• Attained a B rating for the CDP climate change questionnaire
• Improved Supplier Engagement Rating (SER) from ‘B-’ to ‘A-’
• Implemented a robust Anti-bribery policy
• No cases of disciplinary action were taken against Directors, KMPs and employees for corruption and conflicts of interest
• Secured a sustainability-linked loan of USD 130 million from the International Finance Corporation (IFC)

Climate Goals & Targets

Environmental Challenges

• Global destocking across all end usages
• Inflationary costs
• Higher interest rates
• Fluctuation in oil prices
• Impacts of recession/slowdown in various downstream sectors
• Climate change impacts
• Data security
• Human rights
• Supply chain management
• Sustainable sourcing
• Water scarcity
• Transition to a low-carbon economy

Mitigation Strategies

• Integrated ESG principles into decision-making
• Identified diverse ESG-related risks and opportunities
• Incorporated ESG aspects into new product development
• Strengthened existing partnerships
• Explored opportunities in sustainable sectors
• Implemented robust mechanisms to measure and report performance
• Developed alternative sourcing strategies
• Implemented robust cybersecurity measures and data protection initiatives
• Developed a detailed profile of risks and opportunities arising from climate change
• Committed to setting science-based targets under SBTi
• Developed a robust action plan encompassing reducing greenhouse gas emissions
• Embraced circularity by reusing and recycling waste
• Enhanced water efficiency through water reuse and recycling
• Strengthened transportation safety by establishing the “Aarti Logistic Centre”
• Adopted the COSO framework for risk management
• Implemented a comprehensive Data Privacy Policy

Supply Chain Management

Supplier Audits: 389 suppliers assessed (83% of strategic BPs)

Responsible Procurement

• Responsible Procurement Policy
• Supplier Code of Conduct
• ESG assessment of new suppliers
• Incorporation of ESG performance metrics in supplier evaluation
• Continuous engagement with high-risk suppliers
• Training and capacity building for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Heavy rainfall
• Heat stress
• Water scarcity
• Cyclone
• Sea-level rise

Transition Risks

• Emission reduction regulations
• Carbon taxation
• Water management restrictions
• Waste management regulations
• Negative impacts on community and biodiversity

Opportunities

• Circular economy
• Green investment
• Developing green products

Reporting Standards

Frameworks Used: GRI Standards 2021, Sustainability Accounting Standards Board (SASB), United Nations Sustainable Development Goals (SDGs), United Nations Global Compact (UNGC)

Certifications: ISO 9001:2018, ISO 14001:2018, ISO 45001:2018, ISO 27001

Third-party Assurance: TÜV Nord

UN Sustainable Development Goals

• 1, 3, 4, 5, 6, 7, 8, 9, 10, 12, 13, 14, 15, 16

Initiatives contributing to various SDGs as detailed in the report.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 12th Exceed Environment Award
• FICCI Award for Circular Economy
• HR Innovation Award
• International Sudomo Quality Medal 2022
• CII Most Innovative Environmental Project Award
• Best Environment Friendly Company of the Year at FICCI Chemicals and Petrochemicals Award 2022

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Security
• Waste Management
• Energy Management
• Human Rights
• Workforce Diversity & Inclusion
• Supply Chain Sustainability
• Community Development
• Corporate Governance

Environmental Achievements

• 5.5% reduction in Scope 1 & Scope 2 emissions (YoY)
• 10.1% reduction in Scope 3 emissions (YoY)
• 97,718 MTCO2e of emissions avoided in FY 2023-24
• 44% of water recycled
• 11 zero liquid discharge units
• 92% hazardous waste recovered
• Zero cases of environmental non-compliance
• Two units ZWL certified

Social Achievements

• 0.15 Million lives impacting through CSR initiatives
• ₹17.46 Crores spent towards CSR
• 4% year-on-year increase in female employees
• Zero reported instances of non-compliances or breaches with regards to human rights
• Zero cases of POSH
• Zero cases of fatalities and occupational disease in FY 23-24
• 0.04 LTIFR (employees and workers)
• 4.42 employee engagement score

Governance Achievements

• 51.5% of suppliers assessed for ESG parameters on spent basis
• Zero cases of corruption and anti-competitive practices
• 14.3% of board comprised of female board members
• Executive Compensation Linked To ESG: Yes (implicitly mentioned)

Climate Goals & Targets

Environmental Challenges

• Workforce injury risk
• Hazardous waste management
• Impact of GHG emissions on climate change
• Water scarcity
• Reputational risk due to non-compliance
• Human rights regulations
• Carbon tax regulatory risk
• Customer safety risk
• Theft of sensitive information
• Climate change impact leading to manufacturing loss
• Raw material dependency
• Cybersecurity risk

Mitigation Strategies

• Robust OHS Management System, BE SAFE+, risk assessments, training
• Waste reduction, 4Rs, ZLD approach, compliance with EPR
• Monitoring, emission reduction targets, renewable energy, decarbonisation strategy
• Monitoring, ZLD facilities, rainwater harvesting, alternative water sources
• Policies, compliance management framework, strong governance
• Human rights strategy, assessments, responsible recruitment, supplier assessment
• Alignment with targets, decarbonisation strategy
• Safety protocols, risk assessments
• Robust IT security infrastructure, ISO 27001 certification
• Regular monitoring, adaptation measures
• Long-term contracts, diversification
• Data Privacy Policy, UNNATI program, SOC

Supply Chain Management

Supplier Audits: 75% of targeted BPs audited in FY23-24, 51% of spend assessed for ESG risk

Responsible Procurement

• Responsible Procurement Policy
• Supplier Code of Conduct
• ESG criteria in supplier selection
• Local sourcing
• Conflict minerals avoidance

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water scarcity
• Heat stress
• Sea level rise
• Flooding
• Cyclone

Transition Risks

• Policy and regulatory changes
• Market shifts
• Technological advancements
• Carbon taxation
• Changes in consumer perceptions

Opportunities

• Renewable energy
• Energy efficiency improvements
• Circular economy
• Green products and services

Reporting Standards

Frameworks Used: GRI 2021, UN SDGs, UNGC, SASB, TCFD, India’s NGRBC

Certifications: ISO 14001:2015, ISO 45001:2018, ISO 27001

Third-party Assurance: TÜV Nord

UN Sustainable Development Goals

• Goal 1
• Goal 4
• Goal 5
• Goal 6
• Goal 8
• Goal 10
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 16

Alignment of KPIs with prioritised SDGs, integration into strategic planning

Sustainable Products & Innovation

• Products designed for use-phase resource efficiency
• HCl purification technology

Awards & Recognition

• EcoVadis Gold Rating
• CDP B rating for climate change and water security
• Quality Circle Forum of India Awards
• Green Gujarat Award
• Paryavarana Award
• Exceed OHS & Security Award