Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Superheated steam from basic chemical unit generates 3.3 MW of electricity, reducing carbon footprint
• Effluent recycling system optimizes chemical and solvent consumption at dye manufacturing facility
• By-products in Dye Intermediate units are reused internally, remainder sold to outside customers
• Dye Intermediates unit is Zero Liquid Discharge (ZLD), reducing fresh water requirement and increasing operational efficiency

Social Achievements

• Various CSR initiatives enhancing societal value (details in Annexure F)
• Employee stock option plan to motivate and reward employees

Governance Achievements

• Compliance with all mandatory Corporate Governance requirements as specified in SEBI Listing Regulations

Climate Goals & Targets

Environmental Challenges

• Surge in energy costs due to coal and gas price spikes
• Increase in raw material costs
• Irrational jump in raw cotton prices impacting textile sector demand
• Geo-political issues causing global supply chain disruptions and input cost spikes

Mitigation Strategies

• Cost optimization measures
• Efforts to regain pre-COVID gross margins and EBITDA upon raw material price stabilization
• Focus on attaining optimum product mix

Supply Chain Management

Responsible Procurement

• Responsible Supply Chain Mechanism
• Standard operating procedures for approving vendors
• Long-standing business relations with regular vendors
• Application of Business Integrity, Human Rights (labor standards), Health and Safety, and Sustainable environmental standards to all suppliers and sub-tier suppliers

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental sustainability
• Community Development
• Health and Safety
• Diversity, Equity and Inclusion (DEI)
• Employee Practices & Benefits
• Responsible Supply Chain

Environmental Achievements

• Operation of its Dye Intermediate facility with Zero Liquid Discharge (ZLD)
• Significant investments to exceed pollution control standards and regulations
• Converting spent acids into commercially viable products
• Implemented total Zero Liquid Discharge (ZLD) at its dyes intermediates facilities and implemented Zero Liquid Discharge for few products of dyes manufacturing facility
• Optimized reuse, recycle of treated waste water in the plant operations to reduce overall fresh water consumption
• Increased reaction concentration in process to reduce waste water generation
• Extensive plantation activities during Monsoon, 2023, resulting to reduction of greenhouse gas emissions

Social Achievements

• Fostering positive employee relations
• Prioritising training and skill development opportunities
• Community development activities
• CSR projects focus on Education, Health & Wellness, and Women Empowerment

Governance Achievements

• Robust internal control systems
• Effective risk management framework
• Established a dedicated Risk Management Committee

Climate Goals & Targets

Environmental Challenges

• Slow demand for dyes and chemicals
• Fluctuating raw material prices
• High energy costs
• High legal cost for Singapore Case
• High inflations, especially in the USA and EU countries
• Disturbed supply chain along with an ongoing logistic issues which affected the export sales
• Increases in raw material prices without corresponding increase in the sales prices
• Sluggish demand in overseas market due to ongoing war between Russia-Ukraine and latest Israel-Gaza which affected entire European market
• Significant litigation costs incurred to protect the economic interest in the investment in the overseas associate namely DyStar Global Holdings (Singapore) Pte. Ltd.

Mitigation Strategies

• Extensive experience in mitigating challenges
• Cost control and overall increase in operational efficiency
• Diversification into copper and fertilizer business
• Robust internal controls
• Closely monitoring external factors that could impact business operations
• Established a dedicated Risk Management Committee

Supply Chain Management

Responsible Procurement

• Sustainable sourcing procedures
• Approved vendor list
• Long standing business relations with regular vendors
• Business Integrity, Human Rights (labour standards), Health and Safety and Sustainable environmental standards

Climate-Related Risks & Opportunities