EMBEDDING HARMONIOUS GROWTH · mindset. At Shree Cement Ltd., we are progressively committed in embedding a sustainable approach leading to harmonious growth in all our end-to-end

Balancing economic development with sustainability

HARMONIOUSGROWTH

E M B E D D I N G

14th CORPORATE SUSTAINABILITY REPORT 2017-18

Management Say 4About the Report 12The Shree Philosophy 14Organizational Profile 16Our Journey So Far 20Shree Cement in Numbers 22Awards and Accolades 24Our Strategic Approach to Climate Change and Sustainability 26Responsible Governance 31Governance Structure 33Sustainability Governance 37Risk Management 39Board Management 43Strengthening Stakeholder Network 46What Matters to SCL 50Economic Performance 55Building A Stronger Business 56Environmental Stewardship 61Minimizing Our Climate and Environmental Impact 62Sustainable Consumption and Optimization of Resources 63Managing Energy Consumption 66Conserving our Water Resources 75In Harmony with Ecology 79Minimizing Our Emissions 82Sustainable Management of Hazardous Waste 87Environmental and Social Compliance 89Our Responsibility Towards Society 95Empowering a Vibrant Workforce 96Creating A Safe Workplace 104Fostering Sustainable Suppliers 114Strengthening Communities 118Annexures 141GRI Content Index 142UNGC Principles 152NVG Principles 152IFC Performance Indicators 153CSI Performance Indicators 154Assurance Statement 156Company’s Plants and Marketing Offices 160Feedback 161

Contents

Reporting as per GRI Standards: Comprehensive Option

We perceive sustainability and growth as symphonic musical sounds which should always be in harmony with

each other for the benefit of present as well as future generations. Thus, striking a balance between unbounded

economic growth and sustainability requires a new mindset. At Shree Cement Ltd., we are progressively

committed in embedding a sustainable approach leading to harmonious growth in all our end-to-end activities

and operations. Ever since our inception, we have been constantly striving in the arena of sustainability, and proved to be a pace-setter with broad strategic planning. One of the reasons of our excellent performance is indeed due

to the incorporation of ingenious sustainable thinking and attitude in all our operations. This report highlights our

efforts towards ‘Embedding Harmonious Growth’ across our spread and is in alignment with the GRI Standards

released on 19th October 2016.

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E M B E D D I N G H A R M O N I O U S G R O W T HMANAGEMENT SAY

14th CORPORATE SUSTAINABILITY REPORT 2017-18 | 5

I am delighted to present you with our 14th consecutive Sustainability Report for FY 2017-18. Being at the forefront of sustainability has always been an intrinsic habit of our business value. We were the first Indian cement company to publish a Sustainability Report in 2004 and to join Cement Sustainability Initiative (CSI). Since then, we have incorporated a multi-dimensional approach to achieve a harmonious and responsible business growth.

At Shree, our vision is to be the leading cement company in India, creating value & delivering best in class return for all stakeholders through sustainable, consistent and responsible practices. To achieve this vision, we have defined a sound business model supported by a sustainability framework that underpins our commitment to ensure equitable economic, environmental and social development through strong governance.

Throughout our journey, we strive to channelize every idea in a way that unleashes innovative and sustainable solutions, enabling us to achieve unthinkable feats. There is regular flow of energy, ideas and action. Shree Cement is a firm believer of the global Sustainable Development Goals (SDGs) and completely support them by aligning our business strategies with the significance of SDGs.

As we continue to grow and mature, we stay attached to our core values and vision and remain committed to our efforts to be a productive yet responsible industry leader. I hope to continue working with our internal and external stakeholders and would like to thank them for their consistent engagement and commitment towards sustainable development.

TRANSLATING CREATIVE ENERGY TO UNLEASH SOLUTIONS

B.G. BangurChairman

EXPANDING OUR GLOBAL REACH

Shree Cement’s continued progress is underlined by strict adherence to environment preservation, social upliftment and financial prudence. The foundation of our business model is built on responsible management and is supported by sustainable business practices. It is this exemplary approach that has allowed us to innovate and expand capacity over 19-fold, from 1.8 million tons in 2000 to 34.9 million tons (as on 31st March 2018). We are currently on track to reach our target of increasing the production capacity to 50 million tons by 2020.

Considering the challenging times in the Indian cement industry over the past few years, we have performed admirably well. We have established 2 Cement Grinding Units in Suratgarh and Aurangabad, and are now set

to expand our footprint outside India through the acquisition of major equity stake in Union Cement Company, UAE. As we expand, we ensure that we adopt an inclusive growth to create sustained success. This commitment on all fronts enables us to continuously enhance our performance and make a meaningful impact on people and the planet.

I would like to take this opportunity to thank everyone at SCL for their contributions in FY 2017-18. We look forward to progress further and integrate SCL culture in the new companies that we acquire from 2018 and beyond.

H.M. BangurManaging Director

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SOCIETY IS A KEY TO OUR SUCCESS

Being one of the leaders in the Indian cement industry, SCL has always had an unwavering focus on sustainability. We have endorsed the United Nations SDGs which are a guiding force for the industries globally and aligned our targets to their objectives through business engagement and value creation.

As a sustainable organisation, we recognize the importance of social and economic development of the communities we operate in and acknowledge the fact that the happiness inside the plant is directly proportionate to the happiness of our surroundings. As a result of which, for the FY 2017-18, we have contributed INR 278.1 million towards CSR activities.

We actively support local communities through financial and non-financial aid and support. Our employees are also encouraged to avidly support the communities through volunteering. SCL endorses human and labour rights practices and supports the

universal declaration of Human Rights and the International Labour Organization’s (ILO) core labour principles.

Our initiatives for the betterment of the society has led to women empowerment, improved livelihoods, provided quality education, easy access to health and has generated significant intangible value. However, we feel that there is still a long way to go. For the coming years, we plan to focus more on areas such as education and water which have been some of the longstanding issues in the regions where we operate.

As SCL looks ahead, we are beginning to approach CSR with a well-structured business plan backed up by impact studies. We feel optimistic and geared up to meet our targets and drive business growth in a responsible manner.

As we continuously embark on a progressive journey of increasing our production capacities to become one of the leading cement manufactures, we envisage that growth goes hand-in-hand with sustainable development. Having established ourselves in a resource-intensive industry, we personify operational excellence as a driver for our growth.

At SCL, we approach manufacturing excellence by setting targets and goals which in the long-run enable us to set industry benchmarks. As we stay committed to sustainability and community development, we received the 5-star rating for the second year in a row, for the ‘Sustainable Mining Operations’ at Ras and Beawar. A key driver for achieving the level of excellence is the alignment of our team of well-trained employees with our vision. This has led to the many innovative ideas originating from

grassroots level transforming into actionable projects which has led to operational improvements across all our plants.

It is embedded in SCL’s value chain to continuously pursue sustainable development, optimal resource utilization and carbon footprint reductions. Some of the actions in these areas include in-house utilization of waste, reuse of waste from other industries and energy efficiency measures across processes. Such measures have resulted in SCL winning awards including the prestigious ‘Sustainability Performance Award’ from the Indian Chamber of Commerce.

With our leaders eyeing expansion across India as well as globally, we foresee to continue this exemplary performance and always stay committed to meet our internal and external stakeholder expectations.

Prashant Bangur P.N. ChhanganiJoint Managing Director

Whole Time Director

E M B E D D I N G H A R M O N I O U S G R O W T H

ACHIEVING MANUFACTURING EXCELLENCE

MANAGEMENT SAY



CREATING A SUSTAINABLE PRODUCT

EXTENDING OUR RESPONSIBILITY ACROSS THE VALUE CHAIN

Driven by the vision to create wealth and happiness for all our stakeholders, we envision a future where all our products we bring to the market is sustainable for our customers. SCL being one of the top cement producers in India, we have a product basket with different brands, each competing with one another. Our products are tailored to meet the requirements of diversified customer segments.

Our approach to reap success from all our locations is through our unique ‘Hub and Spoke’ model in the cement industry. All our grinding units have been set up near the key cement consuming markets with an aim to serve the customers better and faster. This has resulted in a win-win situation for both the customers as well as SCL. The customers benefitted through faster turn-around time, minimal inventory and smaller order size. We benefitted by faster acceptance of its products and

ability to tap larger market share. Having established our footprint across the Northern and Eastern parts of India, we are now expanding our base in Southern India through the Kodla project. The key to our success in newer markets is by building distribution networks and winning customer trust. Through our innovative ‘Movable Dedicated Silos’ for cement storage, SCL has earned the confidence of Engineering, Procurement and Construction (EPC) contractors.

As we are traversing towards a growth and sustainable development agenda, we foresee ourselves to give importance to the pulse of the market. It is therefore quintessential for us to constantly revise our strategies and customize the product portfolio in order to create a lasting impact on our customers’ mind.

In today’s globalized economy, an organization’s responsibility is not restricted to within its boundary. As a front runner in the cement industry, we understand that SCL has a critical role to play throughout the lifecycle of our products. Managing supply chain sustainability holds key to maintaining the integrity of the brand, ensuring business continuity and managing operational costs. It is also one of the important aspects which aligns our philosophy with the UN Global Compact Principles.

At SCL, we ensure to create, protect and grow long-term environmental, social, and economic value for all stakeholders involved in our value chain. Over the years, we have established a robust vendor and audit assessment protocol to identify and assess critical suppliers. The process has helped us identify around 123 critical suppliers, who were assessed and given insights on improving their sustainability performance.

This agenda has enabled SCL protect itself from potential interruptions or delays associated with human rights, labour, environmental and social regulations by ensuring suppliers have effective compliance programmes and systems. We are proud to state that for another year running, we have faced no cases of human rights and labour management violations.

As we are expanding across India as well as outside the country, we envisage that collaboration with suppliers on sustainability issues can foster product innovation in the near future. Such innovations which have lesser negative environmental impact can also be a differentiating factor which can eventually lead to increased sales for SCL.

Diwakar Payal Sanjay MehtaPresident (Marketing) President (Commercial)


MANAGEMENT SAY




Ras Units



DATA MANAGEMENT APPROACHWe adopt effective internal mechanisms for collecting, managing and analyzing data for preparation of sustainability reports and constantly strive to devise mechanisms to strengthen and improve the scope and quality of data.

EXTERNAL ASSURANCEThis sustainability report 2017-18, has been externally assured by Thinkthrough Consulting Pvt. Ltd. (TTC); the assurance is in accordance with ‘Type 2 Moderate’ assurance as per the AccountAbility’s AA1000AS (2008) Standard.

International Finance Corporation (IFC) Performance Indicators and Monitoring

World Business Council for Sustainable Development (WBCSD) – Cement Sustainability Initiative (CSI) Key Performance Indicators

United Nations Global Compact (UNGC) Principles on Environment, Human Rights, Labor Practices and Anti-Corruption

National Voluntary Guidelines (NVG) on Social, Environmental and Economic responsibilities of business released by the Ministry of Corporate Affairs, Government of India

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REPORTING BOUNDARY AND CHANGESFor FY 2017-18, there has been no significant changes to the reporting boundary from the previous year. The scope of the reporting boundary includes three cement plants, mines, captive power plants and thermal power plant at Ras, Beawar in Rajasthan and Raipur in Chattisgarh.

It also includes seven grinding units at Panipat in Haryana, Suratgarh,

Jobner, Khushkhera in Rajasthan, Kodla in Karnataka, Roorkee in Uttarakhand, Bulandshahr in Uttar Pradesh, Aurangabad in Bihar and Kodla in Karnataka (expansion plan).

Going forward, for the FY 2018-19, the reporting boundary will additionally include new units at Raipur (Clinkerisation Unit II), Suratgarh (Grinding unit) and Aurangabad (Grinding Unit).Besides these units, there are no significant changes from previous

reporting period in the scope, aspect boundaries and organization structure.

ALIGNMENT WITH OTHER SUSTAINABILITY REPORTING PRINCIPLESSCL also aligns its sustainability performance with other internationally accepted methodologies and guidelines as follows:

ABOUT THE REPORT

Sustainability disclosure has been an integral part of SCL’s ideology. We were the first organization among the cement companies in India to publish sustainability report in 2004. The journey to demonstrate our performance to our stakeholders through the sustainability report began in 2004 and has continued since then on an annual basis. This report has been prepared in accordance with the GRI Standards: Comprehensive Option. The report conforms to the GRI principles of materiality, stakeholder inclusiveness, sustainability

context, completeness, balance, comparability, accuracy, timeliness, clarity, and reliability.

This year’s sustainability report (for the reporting period: 1st April 2017 to 31st March 2018) is the 14th report and discloses Shree Cement Limited’s (SCL) impact and vulnerability posed to the environment and its stakeholders from a value chain perspective (cradle-to-grave) as well the mitigation actions undertaken to achieve harmonious growth. SCL is progressively advancing its stand on climate change disclosures in

order to reap the opportunities and increase its resilience from the transitional and physical climate risks posed on its value chain.

Over and above the sustainability report, SCL additionally discloses its energy and emissions performance to various globally recognised external organizations including CDP, World Business Council for Sustainable Development’s (WBCSD) - Cement Sustainability Initiative (CSI), and Dow Jones Sustainability Index (DJSI) by RobecoSAM.

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ABOUT THE REPORT

Aah No Bhadra: Kratavo Yantu VishwatahLet noble thoughts come to us from all over the world

– Rigveda –

We call it The Shree Philosophy, which makes us

an organization that is

• Quality and Energy Conscious

• Customer Responsive

• Socially Responsive

• Investor Rewarding

• Enployee and Environment Friendly

• Sustainable Organization

Passion for Efficiency• Ensuring optimum outcome in

everything we do at work • Achieve our targets consistently with

minimal costs

Care• Being

compassionate towards our communities and our environment

• Working together as one family

• Connect personally with each other

• Demonstrating humane touch in the way we work

Dynamism• Prioritizing

opportunities and challenges to enable swift decision making

• Being flexible in our approach to find effective business solutions

Creativity & Innovation• Experimenting with

new ideas to improve continuously

• Striving to take risk for adding value to the business

Trust & Support• Believing in each

other with mutual respect

• Promoting honest and open communication

• Building an environment of freedom with responsibility

Simplify• Extracting the essence and

keeping communication simple

Our Values, Our

Operating Strengths

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THE SHREEPHILOSOPHY

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E M B E D D I N G H A R M O N I O U S G R O W T HTHE SHREE PHILOSOPHY



ORGANIZATIONAL PROFILE

Established about four decades ago, SCL has emerged as one of the top cement producers and counts amongst the most responsible corporates in the country. The products are designed to not only meet the growing infrastructure needs but also resonate with the consumer needs.

Headquartered in Kolkata, SCL is one of the top 3 cement producers (with cement capacity of 34.9 MTPA) in India, with its operations spreading across six Indian states. The company also produces power and has grown to become one of the top 100 companies in India as per market capitalization. The cement industry of India accounts for over 7% of the global production and plays a critical role to the country’s infrastructure modernization and development initiatives. To align ourselves to the Government’s vision of building

a new resilient India, we adopt collective thinking: a bottom-up approach to problem solving which has led to unlocking innovative opportunities and outcomes. SCL’s products- Shree Jung Rodhak Cement, Rockstrong Cement and Bangur Cement are epitomes of the strategic plans implemented over the years.

Given the rising demand for cement, industry’s production levels are expected to surge along with emissions associated with the production process. To counter this issue, SCL established its first Captive Power Plant (CPP) at Beawar in 2003. We have since significantly increased our power generation capacity which now stands at 639.7 MW (as on 31st March 2018), thereby contributing to the energy efficiency needs of the sector. While efficiency measures elicit short-term financial gains, in the long-term it helps SCL pursue sustainable growth and

create benchmarks for the cement sector.

As the company continues to expand its footprint with its new operations in Raipur, Chhattisgarh, and Kodla (Karnataka) we pledge to do so in a sustainable manner. SCL is one of the biggest corporates in the country with net worth of INR 88,968 million (as on 31st March 2018). It it is our responsibility to create a positive impact for the benefit of many including our people, communities, governments, our shareholders, joint venture partners, customers and suppliers etc.

Responsible production and operations being integral part of the Company’s philosophy, each of our decision is guided by an extensive and robust risk management framework monitored by the Board of Directors. We do not look at sustainability and business risks differently; our

risk management plan identifies sustainability and business risks together to develop an action plan for identified issues throughout the business.

With a spirit of creating a positive impact across all facets of our

operations, we continue to influence our supply chain partners to embed sustainable practices in their operations. We assessed 18 new suppliers for whom we have a vendor code of conduct in place and ensure compliance with SA8000. We have an employee

strength of 5,837 and educating our people on sustainability aspects plays a vital role in incorporating sustainability into the company’s DNA.

Among The Top 3 Cement

Groups in India (In terms of installed

production capacity )

First Company in India to Utilize 100%

Petcoke in All Its Operations - Cement

and Power

Highest 5 - Star Rating - First Time to

Any Cement Company in The World by

Whitehopleman, Uk

Commissioned Unit VIII Kiln at Ras in a

World Record Time of 330 days

5 Star Rating for Beawar and Ras

Limestone Mines for Sustainable Development

Formulated by Indian Bureau of Mines, Ministry

of Mines, Govt.

First Indian Cement Company to Issue

Corporate Sustainability Report Following the Highest Level

“A+” For Reporting Triple Bottom Line

Performance

Among The Top 100 Listed Companies in

India in Terms of Market Capitalization

Among Top 100 Best Places to Work and Top 5 in the Manufacturing and Production Sector

by ‘Great Place to Work Institute’ for the

year 2017

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GEOGRAPHICAL REACH AND BUSINESS MEMBERSHIP OF ASSOCIATIONS

Aurangabad

Raipur

Bulandshahr

Jobner

Roorkee

Panipat

Suratgarh

Ras

Nimbeti

Sheopura-Kesharpura, Shyamgarh

Khuhshkhera

Semaradih-Bharuwadih Integrated Cement Plant /

Thermal Power Plant

Grinding Units

Mining Sites

Beawar

OUR EXPANSION WITHIN INDIA OUR EXPANSION OUTSIDE INDIA

We completed the following projects during the reporting year • Clinkerisation Unit (Kiln-2) with a capacity of 2.60

MTPA in December, 2017 at Raipur in Chhattisgarh• Cement Grinding Unit with a capacity of 3.60

MTPA in February 2018, at Suratgarh in Rajasthan• Cement Grinding Unit with a capacity of 2.0 MTPA

in February, 2018 near Aurangabad in Bihar

In addition, work on the Integrated Cement Plant of 3.0 MTPA at Kodla in Karnataka is in progress and set for completion by next year.

SCL has recently acquired a major stake in ‘Union Cement Company (UCC)’, a UAE based company.

Established in 1972, UCC is one of the leading cement manufacturers in the UAE. It has its operations in the Emirate of Ras Al Khaimah with a clinker capacity of 3.30 MTPA and cement capacity of 4.0 MTPA producing three varieties of cement- Ordinary Portland Cement, Sulphate Resisting Cement and Oil-Well Cement.

As the Indian business landscape is continuously evolving, exposing us to face with new risks and challenges every day, it has now become even more important

for us to keep pace with the global development in the sector. Recognizing this need, SCL enthusiastically participates in various external sustainability

initiatives and collaborates with industry associations for propagating sustainability within the sector.

SCL is Chairman of the Environment committee and plays an important role in policy interventions related to environment and energy efficiency

SCL is a voluntary reporter with the GRI and discloses the company’s sustainability performance annually as per the GRI reporting framework

SCL participates in discussions around green product development, emission reductions and energy efficiency

SCL is a part of the Technical Expert Committee for cement sector developing roadmaps for improving energy efficiency through the PAT scheme

As a member of RSPCB’s Environment Excellence Committee, our agenda revolves around imparting environment skills to the environment professionals

SCL is an active member of the NCCBM Research Advisory Committee and imparts research activities for green products

SCL supports TERI by sharing sustainability leading practices on specific areas including emissions reduction and energy efficiency

Active member of WBSCD’s Cement Sustainability Initiative (CSI), where we participate and express opinions on formulation of carbon emission reduction guidelines

SCL engages with BIS to ensure consistent product quality and provides suggestions for developing appropriate standards for blended cement

SCL is member of the Climate Change Committee for cement sector developing roadmaps and supporting in policy interventions

Cement Manufacturer’s Association (CMA)

Global Reporting Initiative (GRI)

Bureau of Energy Efficiency (BEE)

The Energy and Resources Institute (TERI)

World business council for sustainable development (WBCSD)

Rajasthan State Pollution Control Board (RSPCB)

Bureau of Indian Standards (BIS)

SCL’s role

National Council for Cement and Building Material (NCCBM)

Confederation of Indian Industry (CII)

Federation of Indian Chambers of Commerce & Industry (FICCI)

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OUR JOURNEY SO FAR

1979Incorporation of company

1985First integrated cement plant of 0.6 MTPA capacity at Beawar, Rajasthan

2003First Captive Power Plant in Beawar

2006First Integrated Cement Plant at Ras, Rajasthan

2008First Waste Heat Recovery Power Plant at Beawar

1984Initial Public Offer & Listing on Bombay Stock Exchange

1997Second integrated unit of 1.24 MTPA capacity Cement Plant at Beawar

2005Published its first consolidated sustainability report

2007First Grinding Unit (GU) at Khushkhera, Rajasthan

2009First Indian Cement Company to produce Synthetic Gypsum

2010Cement Capacity reaches 10 MTPA

2018Cement Capacity reaches 34.9 MTPA

Wind Power Generation started in Karnataka

Commissioning of GU at Sri Ganganagar, Rajasthan & second GU in Bihar

Recognised as ‘New Sustainability Champion’ by

World Economic Forum

Grinding Unit set up at Jobner, Rajasthan

First sustainability report assured as

per AA1000AS assurance standard

2011 2010Grinding

Unit set up at Suratgarh,

Rajasthan


Entrepreneur of the Year Award by Forbes India to Shri H. M. Bangur, MD of the Company

Commissioning of Clinker Unit at Raipur, Chhattisgarh

Market Capitalisation touches USD 10

Billion Dollar

World record of commissioning Kiln in

330 days (Unit VIII Kiln)at Ras, Rajasthan

2012300 MW Power Plant started at

Beawar

2013Clinker Unit (U-IX) of 2.0 MTPA capacity at Ras

2014Clinker Unit (U-X) 2.0 MTPA capacity at Ras

2016Entrepreneur of the Year Award by Ernst Young India to Shri H.M. Bangur, MD of the Company

Grinding Unit Set up at Bulandshahr, U.P

2016-17Total

Revenue Crosses INR

10,000 Crore

First Grinding Unit in East India at Aurangabad, Bihar

Grinding Unit set up at Roorkee,

Uttarakhand


First Integrated Unit in East India at Raipur, Chhattisgarh

Highest 5 Star Rating by ‘Whitehopleman’(First time to any Cement Company in the world)

First Acquisition

(Panipat GU from JP Associates)

OUR JOURNEY SO FAR



SHREE CEMENT IN NUMBERS

Cement production

capacity

34.9million tons per

annum

Revenue from gross sales

INR 117,920

million

Economic value

reinvested

INR 20,995

million

Contribution to benefit schemes

INR 586.3

million

Energy produced from

renewable sources

39% from waste heat recovery systems

Specific electrical energy

consumption

68.67 kWh/ton of

cement

Emission reductions

from efficiency improvements

6,297 tons of CO2

Rainwater collection potential

8.6 million m3

Business volume spent on local

suppliers

INR 7,146

million

Procurement budget spent on indigenous

materials

92%

SHREE CEMENT IN NUMBERS

Alternate raw material

utilization

23.61% of the total

materials used

Expenditure on horticulture

INR 46.84

million

Reductions in specific GHG

emissions

41.5% reductions

compared to 1990 base year

Reductions in NOX emissions

22.5% compared to

last year

Internal training programs

1,033 programs provided

Funding for external

training

INR 1.41 million

OHSAS certification

100% of sites have systems in

compliance with OHSAS

Safety audits

>1,000 Safety audits conducted

Safety trainings

2,614 trainings

offered for contract workmen

Supplier environmental

and social assessments

18 number of suppliers assessed

CSR investment

INR 278.1

million

CSR budget spent on rural development

48%



AWARDS AND ACCOLADES

AWARDS AND ACCOLADES

Sustainability Performance Award by Indian Chamber of Commerce

Best Performer in terms of energy saving under Perform, Achieve and Trade Scheme by Bureau of Energy Efficiency for Beawar and Ras units

First prize in Cement Sector in “Rajasthan Energy Conservation Award 2017” instituted by Rajasthan Renewable Energy Corporation Limited

NCCBM Award for Best improvement in thermal energy performance (Ras, Rajasthan) for the year 2015-16

NCCBM Award for Best Quality Excellence for the year 2016-17NCCBM Award for Best Quality Excellence for the year 2015-16

Best Employer 2016 Award by the Employers Association of Rajasthan

Forbes India Magazine Entrepreneur of the year award to Mr. H.M. Bangur, MD

Global Sustainability Awards in Platinum Category by Energy & Environment Foundation, New Delhi

National award for Cost Management 2016 by Institute of Cost Accountants of India

India’s top 5 companies to work for in the Manufacturing and Production sector and ranked 65th among India’s top 100 companies to work for by Great Place to Work

State Level Bhamashaha Samman for Corporate Social Responsibility 2017 by Government of Rajasthan



OUR STRATEGIC APPROACH

TO CLIMATE CHANGE AND SUSTAINABILITY

As an energy and environmentally conscious organization, SCL has been a front runner in adopting sustainability into the company’s core agenda. A reflection of the fact is that SCL pursues a holistic agenda towards sustainable development with emphasis on the triple bottom line of corporate performance- economic, social and environment. Our operational strategy is built on a long commitment to experiment and implement new ideas for improving

efficiencies and minimizing the use of input resources. As a signatory to the Cement Sustainability Initiative (CSI), SCL is committed to reducing its energy footprint, by implementing leading practices in the industry as well as through knowledge transfer. Our strategic approach to climate change and sustainability is guided by our sustainability policy (refer to Environmental and Social Compliance)

Driven by the underlying principles of the triple bottom line approach, SCL conducts periodical assessment of the most material topics affecting the company. The key sustainability topics identified were supply chain, energy and climate change, water, resources, employee training and development, occupational health and safety, and biodiversity. As a reflection of our commitment, SCL has identified focus areas and targets for each of these aspects in order to address them responsibly.

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OUR STRATEGIC APPROACH TO CLIMATE CHANGE AND SUSTAINABILITY

Distribution of ‘High yielding variety’, ‘Hybrid’ seeds and training of villagers and SHGs on new agriculture and horticulture techniques are few initiatives by SCL which helps farmers increase productivity.

OUR COMMITMENT TO SUSTAINABLE DEVELOPMENT GOALS (SDGS)

With the ratification of the SDGs in 2015, SCL foresees the way we do business has the potential to fundamentally shift. A rising demand for assessment and accountability is driving real change across the business network, including the cement sector, with a reality check against the value created for society. At SCL, we have understood the interlinkage of SDGs with our sustainability goals and targets. We have aligned each of our goals and targets with the corresponding SDGs, thereby giving more resilience to our business strategy.

SCL provides access to healthy nutrition, education and basic services through initiatives such as ‘Support for Below Poverty Line (BPL) families and women’ and ‘Mamta Project (Maternal & Child Health Care)’ to improve nutrition of pregnant women.

SCL’s ‘health and safety management system’ reduces the risk of exposure of employees and communities to illnesses from hazardous substances, air and water pollution as well as from other work-place hazards. Our ‘mobile health camps’ and ‘Mamta Project (Maternal & Child Health Care)’ provide primary healthcare support to prevent disease, reduce infant and maternal mortality rates in villages and providing quality health facilities at door step.

Our initiatives such as ‘Shree Ki Pathshala’, ‘Computer Literacy Centre’ are aimed at providing necessary infrastructure (toilets, drinking water), basic education for girls and school dropouts as well as to increase the standard of computer education by collaborating with institutions like NIIT Foundation.

SUPPORTING THE UN SDGS

Through our products and responsible operations we

contribute to maximise our socio-economic

contribution and towards the achievement of

the SDGs



SCL provides women with access to employment opportunities through the ‘Shree Shakti Yojna’ initiative by training them on tailoring and allied services, thereby helping them to earn monthly revenue. SCL has also established internal policies which provide equal opportunities and reduces their vulnerability to workplace related incidents.

SCL is committed to providing a work environment engulfed with ‘Creativity & Innovation’ thereby providing employees the opportunity to up-skill and develop an entrepreneurial mindset. We are committed to helping young people build digital skills through ‘Computer Literacy Centre’ thereby increasing their access to employment opportunities.

To keep pace with global development, SCL avidly collaborates with industry associations for building inclusive and sustainable industrialization of the cement sector. We also undertake infrastructure activities such as construction of roads around the communities to improve the socio-economic activity around the sites where we operate.

We progressively work towards increasing sustained economic growth for all our employees through ‘equal remuneration’ practice irrespective of age, sex, disability, race, ethnicity, religion or other status.

SCL has established interventions to improve ‘water-use efficiency’ across all operating sites as well as to rejuvenate groundwater level through rainwater collection systems.

For the community, SCL is involved in the infrastructure development of rainwater systems through the ‘Mukhyamantri Jal Swavlamban Abhiyan’ scheme, construction of toilets through ‘Shree Swachhata’ project and provision of water storage tanks for access to safe drinking water.

SCL promotes the use of ‘energy efficiency’ solutions and ‘renewable energy’ in our own operations. Our flagship ‘Waste Heat Recovery’ projects are entailed to reduce energy consumption and has projected SCL as one of the lowest energy consuming companies in the sector.


Through our products and responsible operations,

we contribute to maximise our socio-economic


the SDGs

SCL is committed to reduce the amount of greenhouse gas (GHG) emissions associated with our operations and gradually devise a low-carbon strategy to shift to a less carbon-intensive operation.

We give extreme importance to biodiversity management due to our extensive mining and quarrying activities. All our mining sites are rehabilitated and reclaimed through green cover and rainwater collection systems.

As our product is transported across India through wide range of transport networks, we ensure safe transportation of our goods by providing training to our truck drivers through the ‘Defensive Driving Program’.

We drive optimal resource utilization in our operations and manage our waste responsibly. We are comitted to increase the utilisation of alternate raw materials for our production processes to reduce the consumption of virgin limestone and gypsum.

We actively participate in helping address global policy issues on climate change and energy efficiency and instigate the responsible business operations through ethics and integrity. We provide insights and understanding of how we do business through our transparent and accountable policies.

As a leading advocate of sustainable development, SCL uses their footprint to influence their partners to adopt responsible practices. We participate in various external sustainability initiatives (CSI, BEE etc) to drive sustainability improvements within the sector. We also engage with our stakeholders and work in partnership with them to achieve all our targets.


Through our products and responsible operations,

we contribute to maximise our socio-economic


the SDGs




Material topic SDG linkage Main actions Goals 2018-19

Supply Chain Undertake supplier audits to ensure compliance with SCL’s vendor code of conduct and sustainability criteria

To cover 20% of critical suppliers under sustainability appraisals

Include sustainability components in all contracts (100%)

Energy Undertake periodical audits and implement energy efficiency measures

To reduce specific electrical energy by 2% from FY 2017-18

To reduce specific thermal energy by 2% from FY 2017-18

Consume 5% of alternate fuel usage for clinker production

Climate Change Implement a low-carbon strategy and implement operational improvement measures

Reduce specific GHG emissions by 45% from base year 1990

Reduce dust emissions by 2% from last year

Water Continue minimal water consumption for processes and increase the recharging potential at water stress locations

Reduce water withdrawal by 0.5% from last year

Use 100% waste water generated within premises

Materials and Resources

Utilize co-processing of waste to minimize consumption of virgin materials

Increase usage of alternate fuels by 1%

Employee Training and Development

Increase coverage of training to all employees

Achieve 16 man hours training per employee

Employee Retention Build a strong relationship with employees through various motivational activities

Maintain employee retention rate greater than 95%

Occupational Health and Safety

Collaborate with employees and contractors to minimize hazards and risks

Ensure zero fatality across all units

Biodiversity Extend the present in-situ conservation practices by plantation of native species

Plant 1,10,000 saplings across all plant locations

TARGETS FOR 2018-19

RESPONSIBLE GOVERNANCE

VISION

Lead in creating prosperity and happiness for all stakeholders through innovation and sustainable practices.

As an organisation, we spread happiness amongst everyone connected with our ecosystem and create wealth for investors, employees, business associates and communities where we operate by experimenting and implementing new ideas for improving efficiencies and maximising the ratio of output product to input resources.

102-16 102-17 102-33 102-34




GUIDING PRINCIPLES

01

02

03

04

05Enforce good

corporate governance

practices

Encourage integrity of conduct

Ensure clarity and unambiguity of communication

Remain accountable to all stakeholders

Encourage socially

responsible behavior

Effective governance supports our vision, commitments, defines expectations and responsibilities, and ensures that progress continues toward our goals. By acting with the highest ethical standards and integrity, SCL expects the Board

of Directors, senior management, employees and its business partners to act responsibly. SCL’s code of conduct outlines issues such as human rights, equal opportunity, corruption, fair competition thereby enabling itself to act on ethical

grounds. This also facilitates SCL conduct its day-to-day business operations and be accountable to both internal and external stakeholders.

ETHICS, TRANSPARENCY AND ACCOUNTABILITYKey coverage areas

ETHICS, TRANSPARENCY

AND ACCOUNTABILITY

Accuracy of records and disclosures

Human rights

Equal opportunities

Business integrity

Maintaining values

Contractual obligations

Compliance

Stakeholder engagement

Public policy advocacy and protection of our interests

Fair competition and anti-

corruption

“We conduct in all our sphere of activities and while dealing

with both internal and external stakeholders, in lieu with the areas

outlined”

01

02

03

04

0506

07

08

09

10

SCL’s governance structure formalizes the decision-making process and ensures accountability for all its activities. Through a strong internal governance structure coupled with a culture of accountability, SCL has integrated sustainability considerations into the decision-making process. The overall responsibility of guiding and steering SCL through the vision and principles lies with the Board, whereas the execution of the

objectives is streamlined through the board committees and senior management.

The governance structure delineates the roles and responsibilities for every Board member who work with a purpose to ensure that SCL fulfills its commitments to all stakeholders. The Board of Directors (“the Board”) is accountable for reinforcing the vision and guiding

principles by providing the necessary leadership and guidance to the management. SCL is governed by a Board of 10 directors and a Chairman. The Board of SCL has been established in line with the business requirements and compliance requirements of the Companies Act, 2013 and Securities and Exchanges Board of India (SEBI) listing regulations.

GOVERNANCE STRUCTURE

102-18

102-25

102-32

102-23

102-27

102-22

102-26

102-24

102-28

RESPONSIBLE GOVERNANCE




In order to the carry forward SCL’s growth agenda, the Board comprises of appropriate mix of Executive, Non-Executive and Independent Directors as required under the Companies Act, 2013 and Listing Regulations to maintain the independence of the Board and also to maintain an optimal mix of professionalism, knowledge and experience to enable it to discharge its responsibilities. The members of the Board are from diverse background having expertise in the fields of law, banking, economics, sustainability, energy conservation, finance & taxation, etc.

As an effective governance practice, the selection of the Board Members are made on the recommendation of Nomination-cum-Remuneration Committee (NRC) of the Board as per the requirements of Companies

Act, 2013 and Listing Regulations. All the members of the NRC Committee are Independent Directors, who identify persons who are qualified to become Directors and who may be appointed in Senior Management and recommends to the Board their appointment and removal.

All the Directors of the Company are required to disclose their interests in other entities to the Board on annual basis as require under the Companies Act, 2013. If any director is interested in any contract/arrangement being discussed by the Board, he/she does not participate in the proceedings of the meeting.

Members of the Board

Mr. B.G. BangurChairman

(Non-Executive)

Mr. H.M. BangurManaging Director

Dr. Y.K. AlaghIndependent

Director

Mr. Nitin Desai Independent

Director

Mr. Sanjiv Krishanji Shelgikar

Independent Director

Mr. P.N. ChhanganiWhole Time

Director

Mr. Shreekant Somany


Mr. O.P. Setia Independent

Director

Mr. Prashant Bangur

Joint MD

Dr. Leena Srivastava


Mr. R.L. GaggarIndependent

Director

The Board delivers its duties with the assistance of the various sub-committees, which are headed by independent directors. The Chairman leads the top management by translating awareness to the senior management, thereby enabling

the Board to deliver its functions efficiently and amicably. Key responsibility of the Managing Director, along with the Joint Managing Director is to oversee the management of Company and more importantly devise and strengthen the long term business

strategy of SCL. Alongside this, SCL has constituted Committees of Directors, who are entitled with monitoring issues which fall within their purview. The roles and responsibilities of SCL’s committees are summarized below:

Committees of the Board

Audit and Risk Management Committee

• 6 independent & Non-Executive Directors

• 1 Non-Independent Director




• 1 Non-Independent & Executive Director

Nomination cum Remuneration

Committee

Stakeholder’s Relationship Committee

Corporate Social and Business Responsibility

Committee

Name of the Committee

In-Compliance with

Functions of the Committee Committee Members

Category

Audit and Risk Management Committee

Section 177 of the Companies Act, 2013

Review of annual and quarterly financial statementsReview of inter-corporate

loans and investmentsEvaluation of internal

financial controlsReview functioning of

whistle blower mechanismApproval of related party

transactionsOther functions as per

terms of reference

Mr. O. P. Setia – Chairman of Committee

Independent & Non-Executive Director

Mr. R.L Gaggar Independent & Non-Executive Director

Dr. Y.K Alagh Independent & Non-Executive Director

Mr. Nitin Desai Independent & Non-Executive Director



Mr. Sanjiv Krishnaji Shelgikar


Mr. Prashant Bangur

Non-Independent Director




Name of the Committee

In-Compliance with

Functions of the Committee Committee Members

Category

Nomination cum Remuneration Committee


Evaluation of every director’s performanceFormulate the criteria for

evaluation of Independent Directors of companyReview remuneration of

Managing Director and Whole Time Director based on their performance

Mr. R. L. Gaggar – Chairman of the Committee


Mr. O. P. Setia Independent & Non-Executive Director



Dr. Y. K. Alagh Independent & Non-Executive Director

Stakeholder Relationships’ Committee


Review, on a periodic basis, status of cases relating to transfer, transmission of shares, issue of duplicate shares, etc.,Monitor expeditious

redressal of investors' grievances; Review instances of non-

receipt of Annual Report and declared dividendConsider all other matters

related to all security holders of Company

Mr. R.L Gaggar – Chairman of the Committee


Dr. Y.K Alagh Independent & Non-Executive Director


Corporate Social and Business Responsibility Committee


Formulating of Corporate Social Responsibility (CSR) Policy to the Board.Recommend CSR

expenditureReview company

performance on environment, social and governance aspectsOversee reporting

responsibility of business performance

Mr. O.P Setia - Chairman of the Committee


Mr. Prashant Bangur

Non-Independent & Executive Director


Dr. Leena Srivastav Independent & Non-Executive Director

Mr. Sanjiv Krishnaji Shelgikar

Independent & Executive Director

On an annual basis, the Board’s performance is evaluated in accordance with the statutory guidelines of the Companies Act, 2013 and SEBI listing regulations. The Board evaluates its performance as well as that of the Committees of the Board and that

of the Individual Directors. For more efficacy, SCL appoints an External Facilitator for carrying out the performance evaluation process in a fair and transparent manner.

At SCL, the Environmental, Social and Governance (ESG) Committee appointed by the Board administer the

performance of the company’s ESG and climate change related activities. The committee functions under the guidance and

supervision of the Corporate Social and Business Responsibility Committee, which also includes the board who oversees the

activities undertaken the company.

To help meet SCL’s goals, the primary responsibility of the ESG committee translates to implementing environmental

friendly interventions across SCL’s operations, undertake activities to ensure commitment to the society and formulation of effective

governance mechanisms to conform compliance to applicable ESG regulations.

SUSTAINABILITY GOVERNANCE

CSBR Committee ESG Committee

ESG Committee reports to the CSBR committee and the board

102-19 102-21 102-31 102-20

At Shree Cement, sustainability governance is at the top priority and we have developed a sound structure

for effectively managing sustainability & climate change risks and opportunities.

R. BhargavaChief Climate and Sustainability Officer,

Shree Cement Limited




CLIMATE CHANGE GOVERNANCESCL’s Board has the overall responsibility of guiding and steering the climate change vision and principle in conduct and operation of the company and to ensure their adherence effectively. To accomplish this purpose, various committees have been constituted by the Board which plays a vital

role in executing the vision of the board. In addition, our Risk and Opportunity Management Framework (ROMF) also mandates the Board of Directors to be appraised of the risk inventory and the mitigation procedures.

Together with the Core Committee, SCL’s Corporate Social and Business Responsibility (CSBR)

committee oversee the monitoring and reviewing of compliance requirements specified under the Company’s Act 2013, Business Responsibility Reporting (BRR) guidelines and Ministry of Environment, Forests & Climate Change (MoEF&CC) regulations.

At SCL, risk management is considered as a strategic activity and our ability to manage risks generates opportunities as well. With the necessary endorsement from the top management and other executives, company-level identification and management of risk is systematically

achieved using an Enterprise Risk Management (ERM) strategy. The Board of Directors are responsible for overseeing the overall risk management framework of SCL. The Audit and Risk Management Committee of Board, oversees execution and efficiency of the risk

management plan of the company, and strengthen mitigating measures.

The ERM function of SCL plays a critical role in monitoring and managing risks and opportunities that arise out of internal and external forces such as:

RISK MANAGEMENT

Social Environmental Legal Political Technological Economic

102-11 102-29 102-30

SUSTAINABILITY GOVERNANCE

To combat the climate change risks, Shree Cement has developed a holistic plan for managing and

mitigating risks, thereby generating opportunities by systematically applying the Enterprise Risk Management strategy across our operations.

Shyam Sunder KhandelwalCompany Secretary and

Chief Risk and Compliance Officer, Shree Cement Limited

Shree Raipur Cement Plant



We have established a Risk Evaluation and Management framework which is an ongoing process within the organization. Through this enterprise framework, it is possible for timely identification and assessment of risks as well as timely implementation of

appropriate mitigation measures. The framework also allows regular review of the identified risks and their mitigation measures so as to ensure their relevance.

The company also takes into the consideration the quintessential

importance of updating the stakeholders on the significant risks and opportunities as well as the approach taken by SCL to mitigate them. The company has established a Risk Framework, which directly assists in mitigating the operational risks of SCL.

Enterprise Risk- Management

Process

Com

mun

icat

ion

Counter Assessm

ent

Setting Objectives

Identification

Objectives that are set by departments are aligned with the corporate

objectives of SCL

Disclosing the company strategy to mitigate risks to investors

Determining and implementing an appropriate response to identified risks

Evaluating, quantifying and prioritizing enterprise risks

Identifying emerging risks and opportunities as well as to maintain an understanding of existing risks

THE FOLLOWING ARE THE MOST SIGNIFICANT SUSTAINABILITY RISKS WHICH HAVE BEEN CONSIDERED DURING THE REPORTING YEAR:

Demand slowdown and supply overhang in the industry

Availability of water and other resources

Availability of limestone

Fuel cost Power prices

Description

The weak demand and excessive supply due to continued production create a risk of under-utilization of production capacities and fall in prices to non-compensatory levels.

The continuous rise in the demand of water and depletion of traditional resources of water

Limestone is the primary input for cement production

Sourcing fuel from open market exposes to the risk of fluctuating market prices

As the company sells its surplus power after captive consumption, the lack of long term power sale arrangements creates a risk of price volatility

Mitigation strategy

• Adoption of measures such as multi-brand strategy, expanding market base, faster delivery to consumers and consistent quality to contain this risk

• Identifying new markets where demand-supply conditions are considered to be relatively favourable

• Installation of Air Cooled Condensers (ACC) in all power plants which has reduced water consumption significantly

• Installation of Waste Heat Recovery Systems in cement plants which uses waste hot gases as their input. This subsequently eliminates the need of cooling for such gases which results in saving of water

• Company has adequate reserves in deposits to meet its demand. Additionally, it undertakes exploratory activities at existing deposits to find more reserves.

• Mixing of high grade limestone with low grade limestone

• Deployment of multi-fuel usage strategy as well as best technology which allows it to use different fuels and use the most economic fuel

• Investment in Waste Heat Recovery Systems, which have reduced the fuel requirement

• Participated in e-auction of coal linkage and secured linkages of 0.21 MTPA for plant at Raipur, Chhattisgarh

• Increasing its captive consumption

• Ensuring advance sale contracts for part of the capacity

• Keeping balance between the market volatility and running of plants

RISK MANAGEMENT

201-2



CLIMATE CHANGE RISKEfforts to address climate change by reducing emissions of greenhouse gases (GHG) through national, state and regional laws and regulations, as well as international agreements creates uncertainties for our business. This is because the cement manufacturing process requires the combustion of large amounts of fuel and creates carbon dioxide (CO2) as a byproduct of the calcination process. Such risks could include costs to purchase allowances or

credits to meet GHG emission caps, costs required to procure advanced equipment to reduce emissions to comply with GHG limits or required technological standards, or decreasing profit or loss arising from reduced demand for goods, or higher production costs resulting directly, or indirectly from the imposition of legislative, or regulatory controls.

In addition to the aforesaid risks arising from actual or potential statutory and regulatory controls,

extreme weather, high temperatures and other effects that may be attributed to climate change may impact any manufacturing sector in terms of direct costs (e.g., property damage and disruption to operations) and indirect costs (e.g., disruption to customers and suppliers, higher insurance premiums). We are truly aware of the fact that such impacts on our operations would not differ significantly from those arising to other sectors and public at large.

MANAGING CLIMATE RISKS AND OPPORTUNITIESSCL considers that every climate change risk brings hidden opportunities which can be unmasked with appropriate attention. As part of the ROMF, the Board members are apprised of the risk assessment and mitigation

procedures. A specific Board level “Audit & Risk Management Committee” which was constituted in 2015-16 deals with the timely identification and mitigation of the transitional and physical climate change risks that are presently affecting or which may affect the Company in the near future. Further

to leverage the benefits from the risks, prioritization is undertaken based on impact assessments, and their probabilities of occurrences are “processed” to derive a most-to-least-critical rank-order of identified risks.

The objectives of SCL’s remuneration program are to align executives’ compensation with our strategic objectives and operational performance. SCL’s remuneration policy is framed to provide fair

compensation to attract, retain and motivate the Directors, Executives, Senior Management and other employees who play a critical role in achieving SCL’s vision and strategy. The primary objectives

of SCL’s remuneration policy, structure of remuneration and ratio of remuneration for the Board are outlined below:

BOARD MANAGEMENT

Remuneration Policy

To enable the Nomination cum Remuneration Committee to attract highly qualified executives to join Board of Directors and top management

To enable top management to attract, recruit and retain people at senior level positions in the organization

To enable the top management working along with senior personnel and Human Resource group of the organization to attract, recruit, motivate and retain the best talent available to join its teams

To create value for all stakeholders in an efficient and responsible manner

To ensure that the Directors, Executives and prescribed officers are remunerated fairly and responsibly with the long term interest of the Company in mind

102-35

102-37

102-36

102-38

RISK MANAGEMENT

Beawar Units



CATEGORY REMUNERATION CRITERIA REMUNERATION STRUCTURE

Executive Director • Industry Trend• Remuneration Package in peer

group• Job roles and responsibilities• Company Performance

• Salary• Contribution to Provident and

Superannuation Fund• Perquisites and Allowances as per

company’s policy• Retirement benefits as per

company’s policy

Non-Executive Director • Contribution at the Board• Time spent on operational matters

• Sitting Fees

KEY MANAGERIAL PERSONNEL

Sl. No.

Name of Director / KMP and Designation Ratio of remuneration of each Director to median remuneration of employees

% increase in remuneration for the FY 2017-18

1 Mr. B. G. Bangur - Chairman (Non-Executive) 6.2 9.1

2 Mr. H. M. Bangur - Managing Director / KMP 728.0 11.3

3 Mr. Prashant Bangur - Joint Managing Director / KMP

333.7 27.3

4 Mr. Ramakant Sharma - Non-Executive Director*

6.3 8.9

5 Mr. R. L. Gaggar - Independent & Non-Executive

6.4 -3.8

6 Mr. Shreekant Somany - Independent & Non-Executive

6.7 6.1

7 Mr. O. P. Setia - Independent & Non-Executive 6.8 1.9

8 Dr. Y. K. Alagh - Independent & Non-Executive 7.1 5.8

9 Mr. Nitin Desai - Independent & Non-Executive 7.1 7.8

10 Dr. Leena Srivastava - Independent & Non-Executive

6.4 8.7

11 Mr. Sanjiv Krishnaji Shelgikar - Independent & Non-Executive

6.9 12.5

102-39 Sl. No.

Particulars of Remuneration H. M. Bangur (Managing Director)

Prashant Bangur (Jt. Managing Director)

Total

1 Gross salary (` Lac)

(a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961

1,993.80 942.06 2,935.86

(b) Value of perquisites u/s 17(2) Income-tax Act, 1961

14.71 3.97 18.68

(c) Profit in lieu of salary under section 17(3) Income-tax Act, 1961

- -

2 Stock Option - -

3 Sweat Equity - -

4 Commission

- as % of profit - -

- Others, please specify 2,100.00 900.00 3,000.00

5 Others, please specify

Retiral Benefits (Contribution to PF and Superannuation Fund) & Others

147.10 104.75 251.85

Total 4,255.61 1,950.78 6,206.39

Ceiling of remuneration payment as per the Companies Act, 2013

21,871.50

BOARD MANAGEMENT

Annual General Meeting

*Cease to be Non-Executive Director w.e.f. 4th August 2018



STRENGTHENING STAKEHOLDER

NETWORKWe regularly bring together and engage with our diverse group of stakeholders to understand their views on the

issues and matters that are important for them. It not only gives us a fresh perspective on these issues but also helps

us to manage our stakeholders’ expectations.

102-40 102-43102-42 102-44 OUR APPROACH FOR STAKEHOLDER MANAGEMENTConsistent dialogue with stakeholders is a rudimentary step for our business success. It helps us to effectively recognize opportunities and mitigate future risks such as financial loss, operational in-efficiency, perturbations in supply chain and non-compliance. In 2018, we engaged with our stakeholders including customers, media, etc., to analyze their feedback on SCL’s impact on external environment.

PROCESS OF ENGAGEMENTSCL employs a comprehensive stakeholder engagement process by utilizing formal and informal platforms such as periodic meetings, web-based communication modes, customer and employee feedback surveys, customer grievance mechanisms, audits, training programs, workshops and engaging through CSR activities with the local community and others.

For identifying our key stakeholders for this year, we conducted workshops and discussions at our integrated cement plants and grinding units. Our internal stakeholders such as departmental heads, unit heads and various other staff from cross functional departments participated in the workshop to identify the stakeholders, mode of engagement, frequency of engagement and issues to be discussed during the engagement.

DEPARTMENTS REPRESENTATION FOR STAKEHOLDER IDENTIFICATIONEnvironment Safety, Security & Fire

Human resources Corporate social responsibility

Logistics Quality control

Mechanical Electrical

Purchase Instrumentation

Mines Secretarial

• Establishing the scope and objectives of engagement

• Allocation of time and resources

• Setting up the means of engagement workshop and questionnaires

• Identification of internal and external stakeholders

• Inviting key functional heads of the organization.

• Capacity building of internal stakeholders on stakeholder engagement process and materiality

• Ensuring the stakeholder engagement process is material to environmental, economic and social issues

• Ensuring documentation of the process

• Exercising transparency in collation of responses

• Assessing learning points collected from stakeholders

• Reporting back to stakeholders

STRENGTHENING STAKEHOLDER NETWORK

Planning Identification

EngagementReview and Improve



KEY STAKEHOLDERS IDENTIFIED

EMPLOYEES CUSTOMERS MEDIA GOVERNMENT

Engagement Objective

Employees are one of the most important stakeholders for us as their well-being and higher productivity can have a sound impact on our business performance

Customer loyalty, retention and their satisfaction is important for expansion of business and long term success

Addressing concerns of our media stakeholders is important for brand reputation, visibility and venturing into unexplored markets

Periodic engagement with Government bodies and regulatory authorities helps us to meet regulatory compliance and adhere to new regulations

Key Concerns

• Career development paths

• Learning and development programs

• Performance feedback• Fair compensation• Effective grievance

redressal mechanisms

• Quality of product and services

• Pricing of product and services

• Resolution of customer complaints

• Brain storming on product development

• Corporate announcements

• Disclosing business strategies

• Compliance with relevant regulations

• Management of environmental impact

Mode of Engagement and Frequency

Safety and Environment meetings (Monthly), Employee feedback surveys (Annual), Employee grievance mechanism (Continuous), Training and workshops (Continuous)

Customer satisfaction survey (Annual), Meetings with customer representatives (Continuous), Online communication (Continuous)

Meetings with media representatives (as and when required)

Regulatory filings (as and when required), Facility inspections (as and when required)

SHAREHOLDERS LOCAL COMMUNITIES SUPPLIER TRADE ASSOCIATIONS

Engagement Objective

Our shareholders are important stakeholders to attain enhanced financial growth, business performance, strategy, governance and CSR practices

Strengthening relationships with the local communities helps us to derive out intangible benefits and fosters a sustainable environment

Engaging with suppliers builds long term association, and brings in collaboration opportunities, knowledge and infrastructure support

Trade unions are vital stakeholders to set strong policies and practices forremuneration health, and build an overall employee friendly environment

Key Concerns

• Financial performance• Increasing market

share• Strengthening

revenue streams• Effective corporate

governance

• Minimum environmental impact on the communities

• Hiring of workers from the nearby communities

• Supporting the local economy

• Fair and accountable business.

• Issues related to human rights

• Organizing industry events

Mode of Engagement and Frequency

Meetings (Annual)Corporate website (Continuous),Investor relations (Continuous)

Meetings with thecommunity representatives (Periodic)Executing CSRinterventions incollaboration with NGOs (Continuous)

Supplier inspection audits (Periodic)

Meetings withtrade associationrepresentatives (as and when required)

STRENGTHENING STAKEHOLDER NETWORK



WHAT MATTERS TO SHREE CEMENT

We review the sustainability topics that are most important for our business and stakeholders. This helps us to identify issues

that require our attention. The progress on each of these is disclosed in our sustainability report that aligns with Global

Reporting Initiative’s (GRI) Sustainability Reporting Standards

At SCL, we have developed an internal scoring scheme based on which we have identified material topics. Material topics are plotted against two dimensions “importance to Company” and “importance to our stakeholders”. Our assessment

also includes the boundary of influence for each of the topics identified.

SCL frequently conducts materiality assessment and applies the principle of materiality to define and report

on GRI-defined sustainability dimensions of economic, social and environmental impacts that are important for us and our stakeholders.

IdentifyIdentify the scope, boundary of material topics and the relevant stakeholders

IntegrateIntegrate the findings and outcomes into our future business strategy

PrioritizePrioritize the topics important for our business and our key stakeholders, along with their economic, environmental and social impacts

ValidateValidate the material topics with current sustainability efforts and gaps

102-46 102-47 For the current reporting period, we re-assessed the material topics in consultation with internal stakeholders such as department heads from Beawar, Ras, Raipur and grinding units in Panipat, Roorkee, Bulandshahr, Suratgarh, Jaipur, Aurangabad and Khushkhera. With the changing socio-economic and regulatory landscape, we feel that

there is a scope for changes in relevance of each material topics for us. We feel that it is important to review material topics initiatives taken by the company regularly. Hence, to revisit the material topics, a detailed questionnaire including the material topics in line with the GRI Standards was developed. The questionnaire was circulated among

the internal stakeholders to take their views on previously identified material topics and to identify new topics, if any. Based on the feedback of the stakeholders, material topics were prioritized and defined.

Material Topics With Stakeholder

Mapping

Customer Satisfaction

Employee Relations

Occupational Health & Safety

Training & Development

Energy

Regulatory Compliance

Business Performance

Governance & Ethics

Supply Chain

Raw Material

Emissions Biodiversity

Community Development

Waste

Water

Customers

Employees

Government

Shareholders

Trade Association

Supplier

Local Communities

Media

Legend

Economic impact

Impact within the organization

Environmental impact

Impact within and outside the organization

Social impact

Impact outside the organization




We ensure taking measured actions towards issues important for our stakeholders

IMPACT BOUNDARY

IMPACT BOUNDARY

CUSTOMER SATISFACTION

TRAINING AND DEVELOPMENT

OCCUPATIONAL HEALTH AND SAFETY

Our customers are our ambassadors and our business performance largely depends on the satisfaction levels of our customers. Therefore, we ensure timely, responsibly and reliable supply of products to our customers

We continuously invest in our employees through imparting them with updated skills and knowledge that enhances their work and also has an impact on their confidence levels

Safety is our number one priority and a core value.Its importance is fundamental and non-negotiable to us, and a vital aspect in our partner-to-operate. Stakeholders are increasingly interested in our performance

EMPLOYEE RELATION

ENERGY REGULATORY COMPLIANCE

People are our top priority. Maintaining an engaged, diverse and inclusive workforce is essential to maximize the value of our contributions to stakeholders. It is important that we retain the best talent for deriving maximum business value

The way we manage our energy use and the impacts of climate change, and the disclosure of our response are important as we move towards a low-carbon future. We aim to manufacture products that provide a solution for increasing menace

It is important for us to keep in compliance with regulatory mandates in all our operations as this reflects on our commitment towards responsible performance and also develops faith of the communities in us

Economic; outside the organization

Economic; within and outside the organization

Social; within the organization

Economic & social; within the organization

Environmental; within and outside the organization

Environmental, economic and social; within the organization

IMPACT BOUNDARY

BUSINESS PERFORMANCE

GOVERNANCE AND RISK

SUPPLY CHAIN

As natural resources form a significant source of value for our business. It is important that the direct and indirect economic value generated and distributed from our activities brings opportunity and stability, and supports our partnerships with all our stakeholders

Adhering to the highest level of honesty, integrity and transparency in communicating our processes and performance is vital in maintaining the trust and confidence of stakeholders

Our business performance is dependent upon our supply chain management. We endeavor to make use of available resources in a responsible and innovative ways with our prime focus on responsible consumption and exceptional supplier experience



Economic, environmental and social; within and outside the organization


IMPACT BOUNDARY

RAW MATERIAL PROCUREMENT

EMISSIONS MANAGEMENT

WASTE MANAGEMENT

With the growing environmental risks and changing resource scenarios, we are prepared for challenges that we will face in future. Therefore, at each sphere of our operations we pledge to consume less of virgin material and replace it with renewable/ alternate raw materials

We have set targets to reduce our emissions considerably through reduction of specific GHG emissions, specific energy consumption and increasing the use of alternate fuels

We constantly endeavour to reduce our consumption through efficient and ever evolving processes and recycle our waste from other processes. We have increased the proportion of alternate materials in our raw material consumption




IMPACT BOUNDARY

WATER BIODIVERSITY COMMUNITY DEVELOPMENT

Water is a valuable global resource and is crucial to our operations. In recognition of this, we have taken various initiatives to conserve this resource. We successfully manage to treat and reuse 100% of our waste water each year

We believe that improved aesthetics through green cover boosts the productivity of our business and enhances the micro-climatic conditions around our plants. Hence, we constantly endeavor to create carbon sinks and green spaces by planting various saplings

We strive to be a leader in responsible business and thereby harmoniously work with our stakeholders to strengthen the communities where we operate. We aim to create mutual benefits by augmenting our efforts on rural development, education, healthcare, women empowerment and environmental protection


Environmental, within and outside the organization

Social, outside the organization



ECONOMIC PERFORMANCE



BUILDING ASTRONGER BUSINESS

Economic performance is crucial for the long-term sustenance of SCL. The structural reforms (Goods and Services Tax)

undertaken by the Government has projected the GDP growth to be around 6.6%. We attribute sustainable economic growth to increasing wealth, income, standard of living and improved

healthcare facilities.

Although growth is paramount, we foresee that this state of achievement comes at a price of social and environmental degradation. Our triple bottom line approach provides a

strategic comprehensive approach to address these issues, while at the same time foster sustainable development.

34.9 Million Tons per annumcement production capacity (as on 31st March 2018)

INR 13,841.8 MillionNet profit for FY 2017-18

INR 88,968.3 MillionNet worth as on 31st March 2018

INR 28,618.3 MillionOperating profit for FY 2017-18

Revenue (INR Million)

Economic value distributed and retained (INR Million)

With India being the second largest producer of cement globally, the cement production capacity of the country stood at around 455 million tonnes, as on 31st March 20181.The housing and real estate sector accounted for almost 65% of the total consumption within India. The demand conditions during the first half of FY 2017-18 remained slow owing to reasons such as sand shortage, Goods and Services Tax (GST) roll-out, implementation of Real Estate Regulatory Authority (RERA) Act. However, the second half witnessed sharp recovery supported by improved sand availability, overall pick-up in economic activities and government projects.

During the reporting year, the gross sales of the company was INR 1,17,920 million as compared to INR 1,09,424 million reported in FY 2016-17. On an annualized basis, this shows a growth of 7.8%. In addition, our cement and clinker sales was up by 9.46% rising to 22.5 million tons as compared to 20.5 million tons reported in FY 2016-17.

In terms of the economic value distributed, the operating costs increased by 18% against the previous year due to the significant increases in price of coal and ban on pet coke. On the other hand, the contribution towards employee wages and benefits increased by 9.4% during the report year. From an investor perspective, we provided our shareholders with a dividend of INR 50 per share against the INR 40 per share provided during the reporting year FY 2016-17.

1 India Brand Equity Foundation, Cement Industry Outlook 2018, https://www.ibef.org/industry/cement-india.aspx

KEY DRIVERS FOR BUSINESS DEMAND

• Rising demand from the housing sector (primarily affordable housing and rural housing)

• Government spending on infrastructure• Implementation of projects under Pradhan Mantri Awas Yojna

(PMAY)• Higher budget allocation on infrastructure development

201-1

BUILDING A STRONGER BUSINESS

102-7

35,218

3,699 2,070 148

17,482 17,777

52,263

5,372 5,312

193

30,213

19,329

62,280

5,881 2,857 278

29,560

20,995

Operating cost Employeewages and

benefits

Payments toproviders of

capital

CommunityInvestments

Payments toGovernment

Reinvested tomaintain and

develop

2015-16 (9 months) 2016-17 2017-18

investments

3,891

3,618

6,727

2017-18

2016-17

2015-16(9

months)

Financial instruments andother sources

117,920

109,424

69,666

2017-18

2016-17

2015-16(9

months)

Gross sales

(9 months) (9 months)



1,988 2,095 2,091

17 30 21

2015-16 (9 months) 2016-17 2017-18

Within India Outside India

1,988 2,095 2,091

17 30 21

2015-16 (9 months) 2016-17 2017-18


680.65

5,255.10

7,146.77

90.89 54.63 2.07

2015-16 (9 months) 2016-17 2017-18


Our confidence in achieving the growth agenda, comes from the energy and passion of our employees. Their creativity and drive for innovation will help us adapt quickly to the changing situations and maintain our leadership position within the industry. As a measure to retain employees, SCL provides wide range of benefits to all full-time employees. During the reporting year, our contribution towards the various schemes such as gratuity fund, national pension scheme, superannuation fund and provident fund remained the same.

Our contribution towards building a local supplier baseWith our footprint expanding across India, generating economic value for local shareholders is key to achieving growth as well as retaining the license to operate across all the regions. At SCL, we are equally focused on the broader indirect economic benefits we can create for the societies we are part of.

As of FY 2017-18, we have a portfolio of 2,091 suppliers who are based out of India and 21 suppliers who are based globally. Our spending on the local suppliers have also increased significantly over the years, with around 92% of our procurement budget spent of purchase of indigenous raw materials, spares and stores materials. SCL’s overall business volume spent on local suppliers within India is INR 7,147 million during FY 2017-18, which has increased by 34% as compared with the previous reporting year. Our business volume spent on suppliers outside India has decreased significantly.

In the context of the economic value generated for suppliers, we classify them as local since our operations are based out of India.

225.4

318.1356.9

45.672.3 72.1

7.9 12.3 14.9

86.7

183.6 197.8

2015-16 (9 months) 2016-17 2017-18

Contribution to Providend Fund Contribution to Superannuation Fund

Contribution to National Pension Scheme Contribution to Gratuity Fund

Contribution to Defined Benefits Schemes (INR Million)

Supplier profile by numbers

Business volume spent on local suppliers (INR Million)

92%Percentage of procurement budget spent on purchase of indigenous raw materials, spares and stores materials

204-1

201-3

164.6 98.4 117.5

1942.9

2756 2690.9

2015-16 (9 months) 2016-17 2017-18

Outside India Within India

4137.40

6077.90

7043.90

567.60 728.70 646.70

2015-16 (9 months) 2016-17 2017-18

Raw material consumption (INR Million)


4137.40

6077.90

7043.90

567.60 728.70 646.70

2015-16 (9 months) 2016-17 2017-18



R&D EXPENDITURER&D has continued to remain a core part of SCL’s capability when it comes to developing quality product with minimal resource consumption. The R&D centres of SCL housed at Beawar and Ras possess expertise in cement manufacturing and includes experts from different fields including chemistry, environment,

mechanical, energy management etc. The primary focus of the R&D centres is to identify alternate fuels, utilizing waste materials, adopting new technologies, improving product quality and resource optimization. For the reporting year, the total R&D expenditure stood at INR 435.3 million which is 0.44% of the net turnover.

Stores and spares consumption (INR Million)


PARTICULARS TOTAL (INR MILLION)Capital Expenditure 271.1

Recurring Expenditure 164.2

Total Expenditure 435.3Total R&D Expenditure as a % of the turnover (net of GST/Excise duty) 0.44

BUILDING A STRONGER BUSINESS

1942.9

64.6 98.4

2756 2690.9

17.5


ENVIRONMENTAL STEWARDSHIP





MINIMIZING OUR

CLIMATE ANDENVIRONMENTAL

IMPACTA healthy environment is essential for success, yet human activity and its impact on the environment is threatening the planet’s long-term ability to sustain the growing population. Depletion of natural resources and the effects of climate change are presenting ominous environmental challenges to our country as well as the cement sector.

SCL is committed to delivering industry leading environmental performance, as demonstrated by a long-standing commitment to CSI, and a strong commitment to achieve the company’s Sustainability Goals for 2018 that define the standard for sustainability in the cement industry. We set tangible reduction targets year-on-year for the most material impacts- emissions, energy, water and waste. Our goals and targets are focused on improvement in SCL’s corporate leadership and product stewardship, by actively pursuing methods to reduce our environmental impact.

To meet our public commitments on climate change and sustainability, as well as to comply with the laws and regulations pertaining to environmental protection which our operations are subjected to, SCL has established robust management systems and well-defined policies. Our environmental and energy management systems, which are based on ISO 14001 and ISO 50001 standards guides our operations to adopt improvement initiatives across all our units.

As we depend on non-renewable resources for our products and operations, SCL’s policy helps us adhere to efficient use of natural resources and energy that minimizes the impact of waste and emissions on the environment. We work to eliminate or minimize generation of waste and emissions at the source through process design, energy efficiency improvements and usage of recycled materials. We are also concerned about the effects of our quarrying activities, wherein we have implemented biodiversity solutions to reduce our impact.

SCL also believes that third party verification and public reporting are enablers for improving environmental performance and building stakeholder trust. All our manufacturing and grinding units have received third-party verification of our compliance with ISO standards. We are continuing our efforts to widen our impacts by engaging with our suppliers and partners.

As SCL is moving towards increasing the product capacity to 50 million tons per annum by 2020, we also ascertain the necessity for efficient resource use as a top priority for the entire company. We will continue our efforts to further improve performance

SUSTAINABLE CONSUMPTION AND

OPTIMIZATION OF RESOURCES

SCL acknowledges and validates the linkage of sustainable consumption and production patterns with increase in business

value. It is therefore imperative for us to use resources efficiently and sustainably while achieving economic growth. At SCL, we employ several process optimization measures to recycle our waste and constantly strive to encourage use of

alternate raw materials in our total raw material footprint. We also have a dedicated team in place to work on increasing the

utilization of alternate fuels and raw materials.

23.5%Use of alternative raw material

22% increase in the production of synthetic gypsum from captive sources from previous year

GOALS 2017-18

• Increase usage of alternate raw materials by 1%

PERFORMANCE

• Increase in the usage of raw materials from 23.3% to 23.5% from FY 2016-17

MINIMIZING OUR CLIMATE ANDENVIRONMENTAL IMPACT



As we operate in an integrated manufacturing environment, our basic raw materials are processed through many stages before producing the final product. For our products, limestone is the primary raw material required for production of cement and accounts for approximately 97.55% of the total conventional raw materials. We have captive limestone mining leases to extract long-lasting reserves of limestone deposits in three locations –Nimbeti and Sheopura-Kesharpura in Rajasthan and Semaradih and Bharuwadih in Chattisgarh. Apart from limestone, other conventional raw materials that make up part of our cement products are gypsum, murrum, slag and red ochre.

In line with our goal to increase usage of alternative raw materials, we have devised cost effective techniques to reuse low grade limestone and quarry rejects. We also consciously undertake ‘co-processing’ so as to ‘close the loop’ by reusing waste of other industries as raw materials for our cement production. This technique significantly reduces environmental impacts and economic costs without compromising on our product’s quality and output.

Alternate raw material useAs part of this process, we are significantly increasing the usage of fly ash which is the most important alternative raw material in our production value chain. Presently, 73% of the total alternative material used is constituted by fly ash, whereas another 13% is constituted by synthetic gypsum which is produced from synthetic gypsum plants. Some of the other materials used include bed ash and Granulated Blast Furnace Slag (GBFS). The strategic use of these products is due to the fact that they give consistent performance to our final product without compromising the quality.

97.55%

1.38% 1.07% Limestone

Gypsum

Red ochre

23.61%Conventional RawMaterial

Alternative RawMaterials

6.393%

12.523%

1.556%

0.054%

6.342% 0.154%

0.418%Fly ash

Bed ash

Synthetic gypsum

Chemical Gypsum

Lead Zinc Slag

GBFS Slag

Sludge

Spent Sulfuric Acid

Distribution of Conventional Raw Materials

Alternate Raw Materials Usage

Distribution of Alternate Raw Materials

BENEFITS OF THE ALTERNATE RAW MATERIALS

Fly ash • Enhance workability

Synthetic Gypsum • Reduces pressure on natural resources

Bed ash, GBFS • Lowers energy consumption

• Improves durability

301-1 301-2 301-3

76.09%

RAW MATERIAL 2017-18 2016-17 2015-16Conventional Raw MaterialsLimestone 22.29 20.8 14.75

Gypsum 0.32 0.37 0.28

Red Ochre 0.24 0.22 0.14

Associated Process MaterialsSulphuric Acid 0.18 0.15 0.09

Grease 0.0002 0.0003 0.0001

Lubrication 0.0007 0.0006 0.0004

Packaging MaterialsPP Bags* 0.028 0.026 0.08

Alternate Raw MaterialsFly Ash 5.15 4.82 2.96

Bed Ash 0.45 0.32 0.13

Synthetic Gypsum 0.88 0.72 0.52

Chemical Gypsum 0.11 0.05 0.02

Lead Zinc Slag 0.004 0.057 0.04

GBFS Slag 0.45 0.59 0.31

Sludge 0.011 0.009 0.01

Spent sulphuric acid 0.03 0 -*At present we do not reclaim our cement and packaging material

Material Consumption (Million Ton)

SUSTAINABLE CONSUMPTION AND OPTIMIZATION OF RESOURCES


E M B E D D I N G H A R M O N I O U S G R O W T HMANAGING ENERGY CONSUMPTION

MANAGING ENERGY CONSUMPTION

Energy optimization is a prime concern for SCL. With the cement industry being an energy intensive one, we believe that there is an urgent need to optimize our energy consumption and reduce

the load on central electricity systems. Therefore, we have undertaken several energy efficiency initiatives which have saved

7,680 MWh of energy savings and 6,297 tons of CO2 for the reporting year. Our strategic approach to optimisation of cost through energy efficiency makes us one of the lowest energy

consuming companies in the Indian cement sector.

39%Energy produced from renewable sources

7,680MWhEnergy saved from innovation and optimization

126 MWWaste Heat Recovery System (WHRS) (WHRS), largest installed capacity in India and second largest after China globally

GOALS 2017-18

• To reduce specific electrical energy intensity by 0.5%

• To reduce specific electric thermal energy intensity by 0.5%

• Consume 1% of alternate fuel for clinker production

PERFORMANCE

• Achieved reductions in specific electrical energy intensity by 1.89% as compared to previous year

• Specific thermal energy intensity increased by 1.37% as compared to previous year

• Utilised 3% of alternal fuels for clinker production as a percentage of the total fuel used

At SCL, we are committed to conserve energy and drive energy optimization at every level of operations to reduce cost. We have

a comprehensive energy policy which addresses different aspects of energy embedding the theme of sustainability.

For the current reporting year, our direct energy consumption has increased by 16.79% from last year and equals 50.2 million GJ for FY 2017-18. This is mainly attributed to the increase in our production from last year. Similarly, the total energy consumption within the organization has also increased by 2% from the preceding year and stands at 51.10 Million GJ. Our energy consumption outside the organization equals 3.1 million GJ and is almost 6% of our energy consumption within the organisation.

“ENERGY SAVING: A PROFITABLE WAY TO REDUCE GLOBAL WARMING AND TO REMAIN SUSTAINABLE”

Energy Policy

Continual reduction of specific energy

consumption

Compliance of all applicable legal and other requirements

Data collection, analysis, monitoring

and supporting system for continual bench marking and

improvement

Adoption of eco-friendly and more energy efficient

technology

Utilization of alternate and renewable energy sources to

produce green power and conserve conventional

resources

Low carbon economy through regular energy audit and implementation of

corrective actions

01

02

03

04

05

06

Total Energy Consumption within the organisation (Million GJ)

35.26

50.09 51.10

2015-16 (9 months) 2016-17 2017-18

302-1 302-2 302-3 302-5



Our on-site power generation has also increased by 5.6% from last year and we are consistently increasing the share of renewable energy sources to the total energy produced. Consequently, the total electricity consumption has witnessed an increasing trend in the last three years. For the reporting year FY 2017-18, 39% of the total energy produced was derived from renewable energy sources including waste heat recovery system and solar power. As of FY 2017-18, SCL has the highest installed capacity of WHRS in the Indian Cement Industry equivalent to 126 MW. This accounts for 32.4% of the total installed capacity amongst the Indian cement industry.

The energy intensity ratio for the reporting year stood at 2.30 GJ/MT cement produced which includes fuel and electricity consumption as numerator. The specific thermal energy consumption for FY 2017-18 is 728 kcal/kg clinker which is an increase of 1.39% from the previous year’s specific thermal energy consumption, is mainly because of the installation of the second unit in Raipur.

PARTICULARS 2015-16(9 Months)

2016-17 2017-18

Specific Electrical Energy Consumption(kWh/ Ton of cement)

72.13 69.99 68.67

Specific Thermal Energy Consumption (kWh/Ton of cement)

719 718 728

Total Energy Production from Renewable and Non-renewable Energy Sources

Scope 2 Electricity (Million GJ)

61%

39%

Renewable energy sources Non-renewable energy sources

61%

39%


61%

39%


61%

39%


61%

39%


0.67

3.98

0.60

4.05

0.94

5.45

0.65

5.75

0.87

5.77

0.45

6.20

ElectricityPurchased

ElectricityGenerated

Electricity Sold ElectricityConsumed

2015-16 (9 months) 2016-17 2017-18

Perform, Achieve and Trade (PAT)PAT scheme is an effective market based mechanism introduced by the Ministry of Power which aims to incentivize industries to implement energy efficiency measures and provide a trading platform for trading energy efficiency certificates (ESCerts). SCL actively participates

in PAT scheme and has proudly achieved its targets set by the Ministry in the first cycle FY 2012-15. We were also awarded the ‘Best Performer’ award for energy savings under PAT Cycle I by Bureau of Energy Efficiency (BEE) for the Beawar and Ras units.

For the reporting year, we have taken several measures to reduce our energy consumption and increase optimization and efficiency at our integrated cement plant and grinding units. Together these measures have saved us 7,680 MWh of energy and 6,298 tons of CO2.

1

2

Our Performance in the PAT Scheme

PAT Cycle I (2012-15)

PAT Cycle II (2016-19)

PAT Cycle III (2017-20)

Target: • To reduce energy

consumption by 4.56% from baseline for Beawar and 5.1% from baseline for Ras

Results: • Target overachieved by

attaining 15.52% and 24.46% reduction for Beawar and Ras respectively

• Received 86,117 and 72,140 ESCerts for Beawar and Ras respectively

Target: • To reduce energy

consumption by 3.74% from baseline for Beawar and 4.18% from baseline for Ras

• Maintain same heat rate for the 300 MW captive power plant at Beawar

Results: • Assessment year FY 2018-

19 is ongoing and results are yet to be finalised

PAT Cycle II included our 300 MW Shree Mega Power Plant (SMP)

Raipur Cement plant has also been included in PAT Cycle III

Target: • An energy saving target

of 4.55% with respect to baseline year FY 2015-16 has been given

Results: • The assessment year for the

third cycle is FY 2019-20 after which the results will be disclosed

3

302-4




S.No. Description Energy Savings (kWh)

CO2 Savings (Tons of CO2)

Beawar

1 Removed raw mill fan Slip Power Recovery System (SPRS) and installed SG fan motor in Unit 1 Kiln

1,188,000 974.16

2 Installed 2 energy efficient pumps of 18 kW forcolony and mines in place of 4 motors of 22 kW, 55 kW, 37.5 kW and 11.5 kW.

312,840 256.53

3 Installed P-20 power saver lighting circuits in packing plant 51,480 42.21

4 Installation of Variable Frequency Drive (VFD) in P&V blower 19,800 16.24

5 Replaced conventional lights with LED lights in plant area 10 0.01

Ras

6 Installation of SPRS in coal mill fan motor Unit-3, Unit-5, Unit- 8 712,800 584.50

7 Installation of MVD in coal mill fan motor unit-4 and Unit 6 475,200 389.66

8 Installation of energy savers in cement mill & packing plant 58,370 47.86

9 Installation of LED lights 227,858 186.84

10 Replacement of HPSV light with LED lights at Unit -9, Unit 10 and RNCU

693,079 568.32

11 Installation of Solar Lights 4,752 3.90

Raipur

12 Optimisation of Silo Cone Venting fans at Fly Ash Silo, Cement Silos & Raw Meal Silo

158,638 130.08

13 Use of LED Lights in place of Conventional HPSV lights in Unit-II 1,425,600 1168.99

Grinding Units

14 Replacement of CFL light with LED lights in plant area 205,920 168.85

15 Gypsum crusher feeder modification from Direct On Line to star/delta starter according to loading

15,840 12.99

16 Single switch arrangement done at flyash silo and cement silo 1,320 1.08

17 Optimization of bore well pump operation 12,210 10.01

18 Installed VFD in 1Bag Filter Fan 37 kW in clinker unloading circuit

154,123 126.38

19 Replaced 52 250W HPMV HMT Lights with 100 LED Flood Lights In plant area

82,500 67.65

20 Replaced 75 CFL lamps with 18 LED lamps in CCR office 26,730 21.92

21 Process fan Inlet damper from circuit 220,968 181.19

22 SPRS installation in process fan 475,200 389.66

S.No. Description Energy Savings (kWh)

CO2 Savings (Tons of CO2)

23 Installed LED lights in plant premises 110,880 90.92

24 Power savings by Installation of Delta Star Starter at roller press area

70,488 57.80

25 Power savings by motor size reduction at clinker section from 11 kW to 7.5 kW

18,058 14.81

26 Modification in Raw Material transport unloader circuit to avoid material spillages

95,040 77.93

27 Installation of Capacitor Bank in packing plant 253,440 207.82

28 LT motor connection converted from delta to star at raw material and packing plant area

182,160 149.37

29 Packer 1-4 & Packer 2-3 Interconnectivity 144,960 118.87

30 High Mast Tower 16 Nos (2X400W ) MH lights replaced by LED lights 8 Nos (240 W)

282,009 231.25

Total 7,680,273 6,297.82

Over and above this, as part of the compliance towards Renewable Purchase Obligations (RPO) we have purchased 121 non-solar and 50

solar non-transferrable Renewable Energy Certificates (RECs) for Bulandshahr unit and 153 non-solar and 77 solar RECs for Roorkee unit.


Energy Saver Slip Power Recovery



INSTALLATION OF 62 W SOLAR PLANT

To provide a source of clean energy generation and foster clean energy transitionObjective

How the solution was implemented?

Economic/Environmental Benefit

• We were incurring high costs from generating power by conventional power sources like coal based plants

• It was decided that a best and feasible source of clean energy source should be installed at our cement plant to accommodate for basic needs

• A 62 kW solar plant with 3 types of tracking system has been installed, i.e. Seasonal axis (20 kW), Single axis tracker (22 kW) and Dual Axis tracker (20 kW ). Intangible benefits

• Energy conservation• Minimum maintenance cost of plant• Pollution free energy generation

INR 42 Lacs with payback of 8.84 years

124,992 kWh

INR 4.37 Lacs

Total investment for construction

Energy generated for the basic needs of the cement plant

Annual gain @INR 3.5/kWh

Tangible benefits

EARLY COMMISSIONING OF UNIT-1 BOILERS IN GREEN POWER PLANT

To save cost by avoiding running of kiln-1 for commissioning activity and conserve energyObjective


Economic/Environmental Benefit

• For boiler commissioning activities like Refractory Dry-Out (RDO) in AQC-1 boiler and Alkali Boil-Out (ABO) in AQC-1 and PH-1 boilers, kiln-1 light-up was required

• Flue gas temperature variation was also noticed within kiln operation which is not desirable for RDO and ABO process

• Hence, it was decided that external burners with oil as fuel for Refractory Dry-Out and Alkali Boil-Out be used to maintain the desired temperature profile for effective functioning of RDO and ABO

Intangible benefits• Energy conservation • Hot stack flue gases emission was avoided • Knowledge enhancement and capacity

building of employees

13 Lacs units

INR 46 Lacs

INR 32 Lacs

Power gain due to early commissioning

Monetary savings INR 3.5/kWh

Net Savings

Tangible benefits


Solar Plant at Beawar



Objective


Challenges faced

Benefits attained

• Due to increase in clinker production and development of new 6 Stage Preheater-1 installation, the flow and other such parameters of gas coming from PH and cooler were revised

• Hence, to utilize waste heat to full extent, a new efficient WHR (PH & AQC) boilers were installed which are designed to generate better quality steam and thus increase the power generation

• Space: Space constraint was a major challenge for design as well as for erection of boiler

• Time: The new boiler had to be constructed in minimum time with minimum modifications in civil structure

Heat recovery from waste gases gets converted into high steam generation at high temperature. This reduces O&M cost and pressure drop across Boiler & duct.

Approx. INR 3,500 Lacs

INR 1,100 Lacs

Total project investment

Total savings achieved annually

INSTALLATION OF WASTE HEAT RECOVERY SYSTEM IN KILN-I, BEAWAR

CONSERVING OUR WATER RESOURCES

As SCL’s plants are located in some of the most water stressed regions in India, we are taking conscious efforts to harvest water

through recharging techniques rather than relying on ground water. We also reuse 100% of the waste water we generate and

have recycled 12.31% of the total water withdrawn in the reporting year. We follow a two pronged approach for water management i.e. by undertaking initiatives not only in our plant boundaries but also in our nearby communities and villages by constructing water harvesting structures and organising various awareness generation

camps on water conservation

8.6 Million m3Capacity of rainwater collection created

1,360 KLDSTP installed capacity at all operating locations

12.31%Water recycled of total water withdrawal

GOALS 2017-18

• Reduce water withdrawal further by 0.5%

• Use 100% waste water generated within premises

PERFORMANCE

• Increase in water withdrawal by 1.32%

• 100% waste water was utilised within premises

To provide a source of clean energy generation and foster clean energy transition


Waste Heat Recovery System



At SCL, we have maintained a zero liquid discharge facility at all our plants and have no water sources that are significantly affected by our withdrawal of water. Also, none of our water sources lie in the protected areas or areas of high biodiversity value and thus does not adversely affect the environment. We have adopted a simple yet efficient approach to collect data on water withdrawal. Our dedicated Water Management Cell tracks and monitors real time data on water withdrawal, generated continuously by installed meters on the inlets of water distribution networks. For the reporting year, our total water withdrawal equals 2.29 million m3 and our water consumption equals 2.20 million m3.

At SCL, we have employed various technological interventions to minimize our water consumption such as Waste Heat Recovery System, Air Cooled Condensers (ACC) and Sewage Treatment Plants (STP) which are some of the pioneer technologies spearheaded by us in the sector. Our total STP capacity for the reporting year is 1,360 KLD and have recycled and reused 12.31% (0.28 million m3) of our total water withdrawal. Our specific water consumption for cement production stands at 0.072 m3/metric ton of cement produced.

554,214 579,718

468,184

361,004

125,079

201,497

0 0

679,293

781,215

468,184

361,004

Beawar Ras Raipur Grinding Units

Groundwater Rainwater Total

Total Water Withdrawal by Source (m3)

Total Water Consumption (m3)

303-1 303-2 303-3 Particulars Units 2015-16 (9 months)

2016-17 2017-18

Total water withdrawal million m3 1.6 2.26 2.29

Total water consumption – Cement million m3 1.09 1.72 1.60

Total water consumption – Power million m3 0.50 0.68 0.60

Total water recycled million m3 0.2 0.25 0.28

Water recycled as a percentage of total water withdrawal

% 12.42 11.17 12.31

To provide sufficient and safe water to people & plant as well as to conserve waater

Our Water Policy

Develop means & methods for water harvesting

Treatment of waste discharge water for reuse

Educate people for effective utilisation & conservation of water

Water audit & regular monitoring of water consumption


394,747 513,071

338,551 361,004

270,536 257,888

69,186

0

665,283

770,959

407,737 361,004

Beawar Ras Raipur Grinding Units

Cement Power Total



Installed drip irrigation system

Arrested fresh water leakages points at the locations

STP treated domestic effluent being used in plantation & gardening at all the sites

Depth of water pit in mines has been increased, thus increasing the water collection capacity

Installation of WHRS to avoid water usage for cooling down of hot gases

01

02

03

04

05

Water conservation

initiatives

IN HARMONYWITH ECOLOGY

Protecting and maintaining a healthy biodiversity such as green cover, diversity of flora and fauna and natural resources is an integral part of SCL. Considering the extensive limestone

mining and quarrying activities that are involved in our operations, we give extreme importance to biodiversity

management and make sure that the impacts of our activities on the ecology is mitigated. For this we constantly endeavour to increase green cover around our sites and enhance natural carbon sinks. Also, we strive to conduct regular biodiversity impact assessments and profiling for any new projects. All

of our sites have received environmental clearances and are operating in full harmony with nature.

90,543Saplings Planted

90.4%Sapling survival rate

INR 46.84 Million expenditure on horticulture

GOALS 2017-18

• Continue to further plantation biodiversity across the manufacturing locations by planting 1,00,000 saplings

PERFORMANCE

• Planted 90,543 saplings




As a responsible company, we take pride in mentioning that none of our operations have any significant impacts on biodiversity as our plants are not located in any protected area of high biodiversity value. Also, no species which are endangered or listed in International Union for Conservation of Nature (IUCN) Red List are affected by our operations. Nevertheless, we ensure that our mining sites are adequately rehabilitated and reclaimed after decommissioning, by increasing green cover and recharging water table through rain water harvesting. Each year we enthusiastically increase our nearby green cover to reduce dust pollution and to improve the microclimatic conditions in our area.

We have spent nearly INR 46.84 million for all horticulture related expenses such as plantation and gardening. Together, our integrated

304-1 304-2 304-3 304-4

cement plants and grinding units have planted around 90,543 saplings for the reporting year and achieved 90.4% of survival rate for the saplings. The survival rate

has increased over the last three years as our monitoring systems have strengthened and concern for biodiversity has expanded.

Objective

• To increase green cover and enhance natural carbon sinks for a healthy environment around the plant

Key Species Planted

Tonnes of Carbon Sequestered


Tonnes of CO2 Sequestered


CO2 Sequestration by Enhancing Green Cover - Ras

143.50

672.75

526.65

2,468.99

Kaniar1

2

3

45

6

7

8

Shisham

Karanj

Silk TreePeepal

Maulsari

Kassod

Neem Mines Area

Plant Area

Total Carbon Sequestered in Ras Plant

2,995.65 Tonnes of Total CO2 Sequestered

Saplings Plantation

55

188

90

44

167

81

89 89

90

85

86

87

88

89

90

0

20

40

60

80

100

120

140

160

180

200

2015-16 (9 months) 2016-17 2017-18

No. of saplings planted No. of saplings survived

Survival rate (%)

Objective

• To increase green cover and enhance natural carbon sinks for a healthy environment around the plant

Key Species Planted







CO2 Sequestration by Enhancing Green Cover - Raipur

190.7

97.04

31.38

699.87

356.12

115.16

Tecoma1

2

3

45

6

7

8

Shisham

Arjun

Sisam Copper pod

Cassia semiya

Kassod

Neem

Mines Area

Plant Area

Harihar C.G. Plantation

Total Carbon Sequestered in Raipur Plant

1,171.15 Tonnes of Total CO2 Sequestered

IN HARMONY WITH ECOLOGY

Nursery



MINIMIZING OUREMISSIONS

SCL believes that climate change is a serious threat to business and should be internalized using various technological

interventions. Being one of the first cement companies to join CSI, we strive to minimize carbon and atmospheric emissions

by optimizing our processes through green technology. By doing this we not only reduce our own emissions but also

contribute towards the global SDGs which we firmly believe in.

GOALS 2017-18

• Reduce specific GHG emissions (per ton of cement) by 2% from base year 1990

• Reduce dust emissions by 5%

PERFORMANCE

• Achieve 41.5% reduction in specific GHG emissions from base year 1990

• Achieved 23.82% reductions in dust emission as compared to FY 2016-17

41.5%reduction in specific GHG emissions from year 1990 level of 946 kg of CO2/MT cement

2 unitsNet reduction in specific CO2 emissions from last year

We understand that due to the nature of our business, extensive consumption of natural resources such as limestone and generation of emission up to acceptable limits is inevitable. However, being a responsible and sustainable organization, SCL takes all necessary steps to monitor direct and indirect emissions efficiently. We ensure that minimum emissions are released outside our plant boundary so as not to affect the microclimatic conditions and the health of the nearby communities. Thus, we maintain transparency by regularly disclosing our atmospheric and GHG emissions performance in accordance with the Cement Sustainability Initiative (CSI), CO2 and Energy Protocol.

OUR CARBON FOOTPRINT At SCL, we also believe that industries play a key role in climate change mitigation and therefore we recognize our responsibility to reduce GHG emissions and adopt a low carbon growth. This is evident from our specific CO2 emissions performance for FY 2017-18 which has decreased overall from last year. Also, we have achieved 41.5% reduction in specific GHG emissions from base year 1990.

SCOPE 1 EMISSIONS: Our scope 1 emissions include chemical reactions involved in the production cement and clinker as carbonates are decomposed into oxides and CO2 by addition of heat. Scope 1 emissions also include emissions from combustion of fuels to generate energy for the cement making process. Our absolute direct emissions are 140,09,272 tCO2 which has increased by 8.9% from the previous year. This is attributed to increase in our cement production which escalated by 9.4% from FY 2016-17.

SCOPE 2 EMISSIONS: Scope 2 emissions are indirect emissions released from external power generation or purchased electricity. Our scope 2 emissions for FY 2017-18 stands at 192,108 tCO2 which is 5.8% more than the previous year. This change is largely due to increase purchase of electricity at our Raipur unit.

SCOPE 3 EMISSIONS: Our scope 3 emissions consist of emissions from transportation of raw materials, cement and clinker by rail and road, employee commutation, air travel and leased assets. The total scope 3 emissions for FY 2017-18 were 227,548 tCO2.

305-1 305-2 305-3 305-4 305-5

Scope 2 emissions192,108 tCO2

Scope 1 emissions14,009,272 tCO2

Scope 3 emissions227,548 tCO2

01

02

03

Specific Net CO2 Emissions (kgCO2/year)

825

552 562

844

549 555

828

547 553

per tonne of clinker per tonne of cement per tonne of cementiousmaterial

2015-16 (9 months) 2016-17 2017-18

MINIMIZING OUR EMISSIONS



OUR ATMOSPHERIC EMISSIONS Apart from minimizing our GHG emissions, we have installed and upgraded emission control devices such as electrostatic precipitators (ESPs), bag houses and various dust suppressions systems to control stack emissions. We take every step to ensure that no fugitive pollutants disrupt the health of our employees, communities and environment. For this we have taken several measures across all our plants such as plantation, water sprinkler systems, paving and constructing concrete roads etc.

Concentrations of stack pollutants such as PM, SO2 and NOx are monitored through Continuous Emission Monitoring System (CEMS) installed at all our plants for real time data. Stack emissions and ambient air quality data is also uploaded on the websites of the Central Pollution Control Board (CPCB) and State Pollution Control Boards to comply with the regulatory norms.

Our R-22 gas consumption, which is the main Ozone Depleting Substance (ODS) used as refrigerant for the year FY 2017-18 is 0.106 metric ton of CFC-11 equivalent.

AIR EMISSIONSFor the reporting year, the total Particulate Matter emissions has reduced by almost 50% from our Integrated Cement Plants (Beawar, Ras, and Raipur). In addition, we have also achieved a 75% and 22.5% reduction in SO2 and NOx emissions respectively. The dust emissions from the grinding units stood at 8.32 gm/ ton of cement.

305-6 305-7ODS Consumption (MT of CFC-11 equivalent)

SO2 (gm/ton of clinker) NOx (gm/ton of clinker)

PM (gm/ton of clinker)

0.05

0.09

0.106

2015-16 2016-17 2017-18

26.9

10.4

4.3

Beawar Ras Raipur

908.5

1,042.7

382.6

Beawar Ras Raipur

34.5

35.5

14.2

Beawar Ras Raipur

34.5

35.5

14.2

Beawar Ras Raipur

Objective

• To reduce the ESP emission levels through upgradation of ESP control panel

• We replaced the conventional power supply system with a high frequency switch mode power supply (SMPS) that converts 50/60 Hz power to low ripple DC with output waveform ripple below 3%

• The reduced ripple in the output voltage allows the SMPS to produce a higher average output voltage (Eo), which in turn produces higher collection efficiency

• The control which contains 2 HV transformers works simultaneously, however in case of a failure of one, the other will work efficiently

• Overall this reduces stack emission levels as well as losses in the conventional transformer

• Physical condition of ESP fields were inadequate and had to be improved

• Readings of emission levels had to be taken while ensuring other parameters were uniform during the implementation

• Average kV value• Energy efficiency• Life of ESP fan, cooler fan and ducts

• Stack emissions• Drop in kV

Upgrading of Cooler ESP Transformer & Control Panel in First Field

Challenges faced

Benefits attained


(9 months)



Location Emissions Reduction Initiatives

Beawar • Installation of Deep Pan Conveyor for clinker transportation at Unit-I• Installation of Hydraulic Truck Unloader at Wagon Trippler Hopper for coal unloading• Concreted flooring at gypsum yard for minimization of dust due to vehicular movement• Roads along Clinker Yard and Wagon Tippler have been constructed• Installation of high efficiency ESP control panel for Cooler ESP and Cement Mill ESP to

reduce dust emissions

Ras • Concreted roads at stacker & reclaimer area• New Bag Filters installed at various applications• Coal Mill Bag House modifications at Unit 3 to Unit 8 for further reduction of particulate

matter emissions• DBC Bag Filter modification at Unit 3 to Unit 8 for further reduction of particulate matter

emissions

Raipur • Installed Pipe Conveyor & Closed Conveyor System in Crusher I & Crusher -2 respectively, to transfer raw material from mines to plant and reduction of fugitive emissions

• Constructed concreted road from Mines Work-shop to Crusher- 1 for controlling fugitive emissions

• Water Spray arrangement nearby Bulk Receiving Unit in plant premises to reduce fugitive emission from raw-materials

Grinding Units

• Installed Sprinkler System at ramp of raw material area• Concrete roads have been constructed• Installed De-dusting System at cement bulker loading• Installation of curtains at raw material unloading stations/bays• Plantation has been done along the road side in plant premises • Replacement of bags filters from time to time• Modification of Cement Mill Feeding Belt Conveyor and installed new screw conveyor below

Roller Press Discharge Belt Conveyor Vent Bag Filter at Roorkee Grinding Unit• Venting line and venting hoods modified wherever required• Mill inlet chute modified to control frequent dust

SUSTAINABLE MANAGEMENT OF

HAZARDOUS WASTEOne of the most critical issues plaguing the world is the

management of waste. From time immemorial, garbage or solid waste have always been an issue and has led to severe health effects. At SCL, we recognize the importance of waste management and persevere to manage waste in a sustainable

manner. That is why we have maintained a zero liquid discharge facility and have faced no incidents of significant

spills in our plant boundary during the reporting year. We firmly believe in the concept of circular economy and thus sell our

waste to CPCB authorized vendors to be recycled or reused by other industries.


Shree Mega Power Plant, Beawar



OUR APPROACH TO WASTE MANAGEMENT SCL follows a comprehensive approach to waste management. Our conventional sources of waste

comprise of used oil, biomedical waste, E-waste and battery waste which are then sold to the registered CPCB/SPCB recyclers and vendors.

306-1 306-3306-2 306-4 306-5

STOREWaste is stored at adequate storage facilities storage yards as per the CPCB guidelines

RECYCLEThe stored waste is then sold to CPCB authorized and registered vendors

DISPOSEWaste is disposed through either incineration or landfill burial depending on the type of waste

TRANSPORT• Waste is transported from

plant boundary to the vendor

• Transportation of the waste is the sole responsibility of the vendor

At SCL, we have not transported any waste across our plants and locations reported but have however sold our waste to outsourced vendors who are responsible for the complete transportation of handling the material. For the reporting year, we have significantly lowered down our wastes such as used oil and e-waste which is evident from the graph and have witnessed a slight increase in biomedical and batteries waste generation. Hence, each year we are striving to reduce our waste generation and thus are constantly optimizing our processes, conduct awareness programs and campaigns on sustainable waste management.

Hazardous Waste Generation

ENVIRONMENTAL AND SOCIAL

COMPLIANCEAt SCL, we adhere to all the statutory regulations and voluntary

codes associated with all our products and their life cycle. The company maintains 100% compliance and ensures that

all processes are in place in accordance to the necessary management systems. All of our cement plants, power plants

and grinding units fully adhere to ISO 9001, ISO 14001, OHSAS 18001, SA 8000 and ISO 50001. It is our belief that the strength of an organization’s compliance record, reflects

its ability to expand and perform well in the market. As we are also constantly expanding and acquiring new units, we make

sure that we receive all clearances for economic, environmental and social aspects of our operations.

SUSTAINABLE MANAGEMENT OF HAZARDOUS WASTE

54

94

32 32

49

88

12 14

42

96

3

18

Used Oil (kL) Bioedical Waste (10sof kg)

E-waste (MT) Batteries Waste (MT)

2015-16 (9 months) 2016-17 2017-18

(kl) Biomedical



SUSTAINABILITY POLICY

ENVIRONMENT POLICY

HEALTH & SAFETY POLICY

SOCIAL ACCOUNTABILITY POLICY

SCL has adopted comprehensive policies and codes governing various aspects of our business such as life cycle of our products and services, labor laws, marketing, health and safety at workplace,

ethical conduct and all forms of social norms. We are proud to disclose that for the reporting year we maintained 100% compliance in relation to international treaties/conventions, international or

national dispute mechanisms, national or state regulations, environmental aspects, or fair conduct.

307-1 419-1

To produce quality cement in an eco-friendly, healthy & safe working environment in a socially responsible manner with continual improvement in performance and profitability to the satisfaction of all stakeholder by ensuring:• Customer satisfaction• Use less, produce more• Clean and green environment• Sound health and safe working practices• Compliance to the applicable laws and respecting the international instruments• Implementation of the systems and continually improving their effectiveness• Safety of company assets through proper system of checks, audits and inspection• Adoption of cost effective technologies and practices for improved productivity and profitability • Encourage adoption of low carbon economy for reducing carbon footprints and addressing global

warming and climate change• Mutually beneficial stakeholders relationship and equitable sharing of benefits• Human resource satisfaction and succession planning mechanism for sustainability• Promotion of innovations and research and development continual improvement in quality,

profitability and productivity• Promotion free competition and freedom of choice to consumers• Encourage recognition and respect for rights of owners of intellectual property including traditional

knowledge• Transparent communication to relevant stakeholders on impact of policies, products and operations• Implementation of suitable grievance handling mechanism, whenever required

Identify stakeholders to understand their concerns and engage with them in just, fair and equitable manner with special attention to inclusive growth.

Promote sustainable consumption of resources over the lifecycle of the products and ensure everyone involved in the value chain is aware of his responsibility.

Respect and promote human rights of all stakeholders including vulnerable and marginalized sections as specified in the constitution of India and other laws across our business value chain and avoid complicity with human right abuse by third party.

To ensure, clean, green and healthy environment through• Efficient use of natural resources, energy, plant and equipment• Reduction in emissions, noise, waste and green-house gases• Promotion to reuse and recycle wastes• Continual improvement in environment management with proper systems to prevent, mitigate and

control environmental impacts due to operations across the value chain and in local community• Building awareness amongst all stakeholders including employees, customers, vendors etc. on

environmental issues• Green belt development for local biodiversity management and conservation in coalition with local

communities, authorities and other stakeholders• Compliance of relevant environmental legislations

To ensure Good Health and Safe Environment for all concerned by• Promoting awareness on sound health and safe working practices• Continually improving health & safety performance by regularly setting and reviewing objectives &

targets• Identifying and minimizing injury and health hazards by effective risk control measures• Complying with all applicable legislations and regulations

To operate in a socially responsible manner and focus on continual improvement of workplace conditions by• Conforming to all the requirements of SA 8000 standard specially related to child and forced labor,

freedom to collective bargaining, health & safety non-discrimination to ensure happiness of all stakeholders

• Respecting the international instruments for social accountability and complying with all applicable laws

• Making efforts to complement and support development priorities at local and national levels• Making efforts to assure appropriate resettlement & rehabilitation of communities displaced owing to

company’s business operations

ENVIRONMENTAL AND SOCIAL COMPLIANCE

“Prosperity through Health & Safety”



In addition, there were no incidences of significant monetary fines or non-monetary sanctions reporting during FY 2017-18. Although we work with several industry associations, think tanks and policy advocacy organisations, SCL remains a politically neutral organization and does not support any political organizations via

donations, campaigns or by marketing our brand or assets. Our products or conduct does not fall under scrutiny of any regulatory body and have not received negative review from public.

SCL safeguards that any updates on laws, regulations or codes that are relevant to our operations are

applied in all our units and strictly adhered to. For the reporting year we have complied with ISO 9001, ISO 14001, OHSAS 18001, SA 8000 and ISO 50001. Going forward SCL will be migrating to newer standards including ISO 45001 in place of OHSAS 18001.

MANUFACTURING UNITS ISO 9001 ISO 14001 OHSAS 18001 SA 8000 ISO 50001

Beawar Unit I √ √ √ √ √

Beawar Unit II √ √ √ √ √

Beawar SPP √ √ √ √ √

Beawar SMP √ √ √ IS 18001(√) -- √

Ras Unit III √ √ √ √ √

Ras Unit IV √ √ √ √ √

Ras Unit V √ √ √ √ √

Ras Unit VI √ √ √ √ √

Ras Unit VII √ √ √ √ √

Ras Unit VIII √ √ √ √ √

Ras Unit-IX √ √ √ √ √

Ras Unit-X √ √ √ √ √

Ras SPP √ √ √ √ √

Khushkhera (GU) √ √ √ √ √

Suratgarh (GU) √ √ √ √ √

Roorkee (GU) √ √ √ √ √

Jobner (GU) √ √ √ √ √

Bihar (GU) √ √ √ √ √

Shree Raipur Cement Plant √ √ √ √ √

Raipur SPP √ √ √ √ √

Marketing Shree Ultra √ - - - -

Marketing Bangur Cement √ - - - -

Marketing Rockstrong √ - - - -

PRODUCT QUALITY AND CUSTOMER SATISFACTION POLICY

ENERGY POLICY

To provide products conforming to national standards and meeting customers’ requirements to their total satisfaction for overall wellbeing of the society

To continually improve performance and effectiveness of quality management system by setting and reviewing quality objectives for• Customer satisfaction• Cost effectiveness

Disclose all information truthfully and fact fully including risk to people and planet from use of productsEducate customers towards their rights as well as safe and responsible usage of product

To ensure energy sustainability, we are committed to• Continual reduction of specific energy consumption• Utilization of alternate and renewable energy sources especially to produce green power• Adoption of eco-friendly and more energy efficient technology• Low carbon economy through regular energy audit and implementation of corrective actions• Data collection, analysis, monitoring and supporting system for continual bench marking and

improvement• Compliance of all applicable legal and other requirements

ENVIRONMENTAL AND SOCIAL COMPLIANCE

415-1


OUR RESPONSIBILITY

TOWARDS SOCIETY





EMPOWERING A VIBRANT WORKFORCE

Efficiency, creativity and innovation are the values that make up the cornerstone of SCL’s culture and guide our

engagement with both internal and external stakeholders. Sustainability is at the forefront of all our practices, from

internal work methods, to how we engage with our employees and to the products we create. SCL’s employee

engagement program inspires our people to deliver business growth, progress our sustainability agenda and thereby sustain themselves for long-term relationship with us.

1,033Internal training programs across technical, behavioral and cross-functional themes

75,113Training hours provided for all employees

Great place to work in India and India’s top 5 companies to work for in the Manufacturing & Production Sector

GOALS 2017-18

• Achieve 16 man-hours training per employee

• Increase employee retention

PERFORMANCE

• Achieved 13.88 average hours of training per employee

• Reduction in employee retention by 0.42% as compared to last year

SCL’s success as a business is driven by our ability to attract, engage, and retain the most talented and highest-performing employees. We align our talent management strategy, recruiting approach, and employee development process and programs with our core philosophy ‘Care for People’.

APPROACH TOWARDS MANAGING TALENTOur Human Resource function has always been a business enabler for pushing SCL’s performance, right from the creation of the vision and mission statement as well as ensuring the availability of right talent for reaching the desired goal. While the talent acquisition processes works toward getting people who are culture fit and are aligned to the values of the organisation, talent management activities such as candidate selection, performance appraisals, employee development and training works towards building these values. As of 31st March 2018, our workforce comprised of 5,837 employees, including 5,630 staff and 207 permanent workers.

With the world transforming at a pace never seen before, we are building a strong culture of continuous improvement and learning. Throughout an employee’s career, SCL supports the people in their personal development through a mix of diversified trainings as well as through sessions by the leadership. We

also drive a performance culture through feedback and measure our employee engagement on an annual basis, and take action on corporate priority areas for improvement.

SCL’s effort and commitment to building a workplace that supports creativity, innovation, team-work and safety is reflected through the awards received in FY 2017-18. SCL was among India’s Top 5 Companies to work for in the Manufacturing & Production Sector and among India’s 100 Best Companies to Work for across all sectors. Both these awards were given by Great Place To Work, India. Local

workforce

59%

Shree has provided world class facilities for housing, medical andrecreation. Our unique Shree family culture binds together people

who have come from different places.

Total Workforce

Total Workforce

5,142

5,411

5,837

2015-16(9 months)

2016-17 2017-18

3,342

2,288

Local Non-local


102-8

As on 31st March 2018



Workforce Turnover by Gender

New Joinee by Gender

Workforce Turnover by Age

New Joinee by Age

0 0

78

00

16

121

14

23

47

4

Seniormanagement

Middlemanagement

Juniormanagement

Workers(Permanent)

<30 years 30 - 50 years > 50 years

4

38

246

50 1 0 0

Seniormanagement

Middlemanagement

Juniormanagement

Workers(Permanent)

Male Female

0 0

78

00

16

121

14

23

47

4

Seniormanagement

Middlemanagement

Juniormanagement

Workers(Permanent)

<30 years 30 - 50 years > 50 years

845

665

0 0 2

Seniormanagement

Middlemanagement

Juniormanagement

Male Female

0 0

370

341

285

5 4 12

Seniormanagement

Middlemanagement

Juniormanagement

< 30 years 30 - 50 years >50 years

STRATEGIC INITIATIVES FOR EMPLOYEE ENGAGEMENTLeadership development processTaking a step towards building future leaders for the organisation, we hired an external partner to identify the competencies that drive the success of SCL

The competencies were then used to assess the current middle management, identify strengths and gaps and devise an action plan for bridging the gaps

Firming the bond between employee and SCLThe employee engagement practices focus on total employee happiness and not just engagement. All our engagement practices and all facilities that are built for employees such as gym, sports facilities, library, recreation room etc., are extended to families too. Families are a part of festivals being organised or significant days such as Environment Day, Health Day, Heart Day etc.

The company also conducts special initiatives such as Talent Show, Summer Camp, Hobby classes for families. The highlight is ‘Kutumb Utsav’, an initiative that is unique to SCL in which families are invited to the workplace of the employee and they spend one entire day with the employee in the plant. They get to interact with the HR team, the senior leadership and take a tour of the plant and the office.

Analytical thinking and decision making

Innovative thinking

Collaborative working

Cost consciousness

8 Differentiating Competencies

Impact and influence

Outcome orientation

Productivity

People development

EMPLOYEE BENEFITS SCHEMEInvesting in our employees extends to providing appropriate benefits and incentives to reward and incentivize top performance. Given the nature of our work, we comply with the statutory laws of the country when it comes to providing minimum wages to ensure decent living for our employees. We maintain insurance policies at group level to cover all permanent staff (senior management, middle management, junior management and workers). In addition, all female staff of SCL are entitled to a maternity leave of 6 months under the Maternity Benefits Act, 1961. During the reporting year FY 2017-18, 6 staff availed the maternity leave benefits, of which 3 staff have returned back to work.

401-2 401-3


401-1

Yoga Day




INSURANCE• Health insurance• Personal accident

insurance (Group)• Life insurance• Employees State

Insurance (ESI)*

FUNDS • Gratuity • Bonus as per PF Act**

RETIREMENT PROVISIONS• Employee’s Pension

Scheme (EPS)• Employees’ Provident

Fund Scheme (EPFS)• Employees’ Deposit

Linked Insurance Scheme (EDLIS)

SPECIAL ALLOWANCE• Transport allowance• Uniform allowance

PARENTAL LEAVE• Maternity leave for all

female staff

OTHER• Car lease• Benevolent Fund

(Employee Contribution Scheme)

SCL maintains comprehensive life insurance, personal accident insurance and contributes significantly towards the pension benefits of the employees with an aggregate spending of INR 586.3 million

SCL EMPLOYEE BENEFITS

*Applicable as per ESI act at covered units**Applicable to all whose basic is less than or equal to INR 21,000/-

LABOUR RELATIONSThe social dimension of sustainability concerns SCL’s impacts on the social systems within which we operate. Collective bargaining plays an important role in our consultative processes with the employees and their representative. All employees of SCL are covered by collective bargaining agreements. This includes relationships with unions, work councils, and employee

associations across the country. The specific language and scope of the labour agreements vary from facility to facility. The agreements are structured to recognize the importance placed on health and safety as well as the core philosophies of both SCL and our employees. In all the facilities within our perimeter, employees are trained to understand, assess and mitigate health and safety risks.

As an extension to providing rights exercise freedom of association and collective bargaining, we also endeavor to be a responsible company respecting the rights of our employees. SCL has a variety of methods to ensure that workers are kept informed of operational changes and we provide a minimum notice period of 2 weeks to ensure a smooth implementation of these changes.

BUILDING OUR EMPLOYEES’ COMPETENCIESSCL being a dynamic organisation, we understand that providing learning that is simple, continuous and value-added is essential for long-term sustenance of the employee. At the beginning of every fiscal year, we conduct a ‘Training Needs Identification (TNI)’ to enable employees identify their specific training needs. This

process facilitates the alignment of their areas of interest with their core responsibilities and required functional skills.

A diverse portfolio of training needs emerged including technical, cross-functional, compliance and behavioural trainings. Furthermore, to inspire our people and push their competencies to a higher level, we organized sessions on Leadership

and Personal Excellence by internationally acclaimed speakers as well as by SCL’s senior leadership team.

On an average, there were 13.88 hours2 of training per employee in FY 2017-18. Senior management completed 313 training sessions which has increased by a significant margin of 35% since FY 2016-17.

102-41 402-1

402-1

2 The average training hours value is calculated by dividing the total training hours with the total employee count. SCL conducts a ‘Training Needs Assessment’ at the beginning of every year to understand the training needs for all the employees. Hence, we have used the employee count as of 31st March 2017 (i.e. 5,411) as the denominator to arrive at the average training hours value of 13.88.

• Mining basics• CSR and sustainability• Cement logistics and supply

chain management• Finance• Cement manufacturing process• Labour laws

• Project management• Power generation and

distribution• Contract management and

balance scorecards

SCL provided

253 skill upgradation trainings which were a mix of technical, behavioral and cross-functional programs

CROSS-FUNCTIONAL TRAININGS

SUMMARY OF THE TRAININGS IMPARTED FOR EMPLOYEES

Average training hours by gender Average training hoursby employee category

11.7

16.114.2

0.90.0

19.9

8.4

0.0

Seniormanagement

Middlemanagement

Juniormanagement

Workers(Permanent)

Male Female

11.9 14.1 12.5

1.9

6.6

15.3 15.7

0.0

11.7

16.2

14.2

0.9

Seniormanagement

Middlemanagement

Juniormanagement

Workers(Permanent)

2015-2016 (9 months) 2016-2017 2017-2018

Training hours (Male)

Training hours (Female)

Number of trainings (Male)

Number of training (Female) Funding for external training or education (INR Million)

35

51

Senior management Middle management

Junior management Workers (permanent)

35

51



5,142

5,411

5,837

2015-16(9 months)

2016-17 2017-18

2015-16 (9 months) 2016-17 2017-18


404-1 404-2

1402.75

11292.916

61880.0…

190



1,403

11,293

6,1880

313

3256

15867

104



3,256

15,867

0

178.75168.25

Senior management

Middle management

168179



Although SCL does not provide an internal web-based internal training portal for employees, employees were provided with access to numerous onsite and offsite skill upgradation training programs. In addition, employees were also provided funding to undertake external trainings offered by academic institutes and industry bodies. The funding provided in FY 2017-18 saw a 48% rise as compared to the funds which were made available in FY 2016-17.

PERFORMANCE MANAGEMENTPerformance review strives to maximize the interconnection between employee development and SCL’s performance. We ensure the process is effective by establishing SMART goals followed by a regular feedback and review process throughout the year. Through this process, we provide employees with opportunities to improve their performance and effectiveness, and to also align their behaviour with SCL’s corporate philosophy. During the reporting year, 100% of employees were eligible to receive an annual performance review.

DIVERSITY AND INCLUSIVENESSThe SCL board comprises of 11 individuals (1 Chairman and 10 Directors) with diverse experience and credentials. They have been selected for their astute business acumen, and their ability to challenge and add value to SCL management. The Board of Directors bring a collective experience from a wide variety of industries. Having held significant leadership positions, they are providing SCL with valuable insights and perspectives for harnessing sustainable growth.

As a progressive company, SCL also promotes diversity among the staff by eliminating gender bias and provides equal opportunity for all. We have identified that equal remuneration is a crucial factor in retaining qualified and competent employees.

404-3

405-1 405-2

EMPLOYEE CATEGORY MALE FEMALE

Senior Management 100% 100%

Middle Management 100% 100%

Junior Management 100% 100%

Workers (Permanent) 100% 100%

EMPLOYEE CATEGORY RATIO (WOMEN TO MEN)

BASIC CTC

Junior Management 1.34 1.41

Middle Management 0.97 0.98

Senior Management 0.00 0.00

GENDER AND AGE COMPOSITION OF THE BOARD

Female 9%

Male 91%

Under 30 years 0%

30 – 50 years 0%

>50 years 100%

REMUNERATION

INR 14.15 million Funding provided for external training and education programs in 2017-18

1,033 Onsite training programs

97Offsite training programs

SAFEGUARDING HUMAN RIGHTSAt SCL, we ascertain that safeguarding human rights is an important aspect which aligns with our guiding principle, ‘Encourage socially responsible behaviour’. To ensure the belief translates into action, we are working towards strengthening and expanding our policies on human rights and prohibition of sexual harassment both within SCL and with our suppliers. During the reporting year, 436 employees were trained on human rights policies and procedures.

SCL’s policy aims to protect the rights of the people where we operate and ensure that they are treated with dignity and respect.

Our policy is guided by the UN Global Compact’s 10 principles, UN Guiding Principles and the International Labour Organisation’s (ILO) Declaration of Fundamental Principles and Rights at Work, and Sexual Harassment of Women at Workplace Act, 2013. Alongside implementation of the policy, we have ensured that all our plants as well those belonging to our suppliers comply with SA 8000 standards.

Furthermore, being a progressive company, SCL also upholds the rights of workers. We have not faced any violation of workers’ rights to freedom of association from any of our operations.

406-1 411-1408-1 412-2407-1 412-1409-1 412-3

Our Human Rights Policy ensures to fulfil the following:

• No deployment of child labour or forced labour

• Providing of a congenial but challenging work place which attracts best talent

• Makes no discrimination in recruitment and training of employees

Workers’ rights100% coverage of our workmen and regular contract workmen employed as per Contract Labor Regulation and Abolition Act 1970 with the 3 registered trade unions

701

0

0

Total man-hours of training imparted on human rights aspects to employees

Cases of child, forced or compulsory labour

Cases of non-discrimination and sexual harassment

PREVENTION OF SEXUAL HARASSMENTSCL has adopted a Policy on Prevention, Prohibition and Redressal of Sexual Harassment at the Workplace, in line with the provisions of the “Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013” and the Rules there under.

Internal Complaints Committee

Mrs. Preeti JamesChairperson

Doctor in Shree Medical Service

Mrs. Deepika JainMember

Sr. Manager, Commercial

Shri. Bhawani SinghMember

Asst. Vice President, Estate Management

Mrs. Rashmi Sharma

Outside member

Professor and member of NGO


404-1 410-1



CREATING A SAFE WORKPLACE

SCL considers health and safety performance as a critical aspect of our ability to progress forward as a responsible company. We therefore take a strategic and meticulous approach to managing safety risks and impacts across our operations. While we engage with our employees to promote a healthy and safe work culture,

we are also committed to eliminating all injuries for both our employees as well as our suppliers.

Locations certified as per OHSAS 18001 standard

More than 1,000 inspections conducted by the safety department

GOALS 2017-18

• Ensure zero fatalities across all units

PERFORMANCE

• 2 fatalities recorded in FY 2017-18

OCCUPATIONAL HEALTH AND SAFETY MANAGEMENT SYSTEMHealth and safety is at the top of SCL’s priority areas and we hereby work together with our employees on identifying hazards and reducing the risk of injury by eliminating or amicably controlling the hazards.

Over the years, SCL has built a robust safety management system based on the globally recognised and practiced OHSAS 18001 standard. All our permanent and contract employees are covered through this system.

HAZARD IDENTIFICATION AND RISK ASSESSMENT As part of the system, we have established a structured hazard identification and risk assessment process based on the globally practiced ‘Plan, Do, Check and Act’ cycle. The process has helped us to identify potential risks which could have resulted in production disruptions, litigation and liabilities. We have also established an internal hazard and incident reporting system as per the ‘Factories Act’.

During FY 2017-18 ‘Safety Inspections’ were conducted at all locations to assess the potential risks posed for the employees and the contractors. Based on the severity of the risk, appropriate action plans were implemented to minimise future recurrences of the risk. In order to apply a level of rigidity to the process, we have started conducting ‘inter-department’ and ‘inter-plant’ safety inspections.

403-2

403-1 403-4

All locations certified as per OHSAS 18001 standard

WE COMPLY WITH ALL REGULATIONSIn line with the directions issued by the Supreme Court of India, all Coal Fired Thermal Power Plants (CFTPPs) are required to have occupational health & safety management system in place, which are annually auditable by third party

approved by Ministry of Power, Government of India.

Based on above guidelines we organized an external audit of the occupational health & safety management system of our Beawar

& Ras Power Plants. A team of auditors from National Safety Council, Mumbai conducted the safety audit of Beawar Power Plants on 31st May & 1st June, 2017 and Ras Power Plants on 2nd & 3rd June, 2017.

Vendor Code of ConductPotential risks identified and assessed

The risks presented below are an indication of those which can affect the day-to-day operation of SCL. Through proper investigations, we have implemented action plans for all the risks. As of March 31st, 2018, the status of all risks stands completed.

Hazard category

Risks identified Risk severity

Machine safety

Absence of safety guard in the belt

Guarding on shaft and coupling of motor

Lack of covering of the rotating part of blower

Electrical Open electrical box bound with wire

ELCB circuit found in open condition

Fall hazards

Damaged grating

Damaged step of staircase

Absence of mid-rail

Severity level

High Moderate Low


100%



WELLNESS MANAGEMENT In order to provide our employees with access to quality and essential healthcare services, we have established ‘The Wellness Management Centers (WMC)’ at all the locations. The WMCs are equipped with qualified doctors and modern facilities. Employee health checkups are conducted annually with various health care services provided to the employees and their families. All contract

workmen are also covered under WMC services and provide health care services customized to their nature of work.

We also organized blood donation camps across our locations. Health talks and lectures by experts and specialist were also organized to propagate awareness on chronic and lifestyle diseases for the benefit of employees and their families.

CREATING A BRIDGE FOR MANAGEMENT AND STAFF TO DISCUSS SAFETYAs part of the system, we have established ‘Safety Committees’ at all our units to ensure equal representation from both management and non-management staff. The safety committees play

a pivotal role in coordinating the safety inspections at all plants. Moreover, all contract workmen who are covered under collective bargaining agreements are encouraged to raise their concerns related through the safety committee at all times.

SAFETY COMMITTEES AT SCLWe have created safety committees at all manufacturing units which also includes equal representation from both management and non-management categories.

The safety committees plays a pivotal role in achieving the objective of ‘Cultural Change’ by undertaking assessments and implementing initiatives and programs. Since most of the workers deployed are from the communities around the factory,

it was quintessential for the committee to devise an approach which could transform the way workers looked at safety. The committee periodically organized trainings, mentoring and coaching with the help of local supervisors who brought about a positive change to the workers’ safety performance. Through such interactions, it became easier for the committee to identify hazards and minimize the recurrence of the same.

403-3

403-4

403-1

Health tests at WMCs• Spirometry tests

to identify and minimize the respiratory risks faced by workmen

• X-ray tests• Audiometry tests• Eye care• Road accident care

As an extension of WMC program objective, we also organise health check - up programs in collaboration with transporters and fleet owners, at their premises.

Spirometry Test

Grinding units

Integrated Cement Plants

Services provided and no. of

beneficiaries

Audiometry

Regular Check-Up

Pulse Polio

Blood Donation

Vaccination

Ramdeora

Mobile Unit

87,550 347

9,767 58

34,776 2200

573 4309

1,913 221

112 75

3,895 500

2,774 1485

Safety and Environment Day• Across all

sites, the first day of each month is celebrated as ‘Safety and Environment Day’. All SCL staff, contract labours, union representatives and contractors are invited to be a part of this day. During this day, discussions around the previous month safety activities, safety awareness, environmental and safety risks and incidents are shared and analysed.

Beawar Ras Raipur Khush-khera Suratgarh Jaipur Roorkee Auranga-

bad Panipat Buland-shahr

Grinding Units

Cement Plant Safety

Commi-ttee

Ras Safety Commi

-ttee

Apex Safety

Commi-ttee

KKGU Safety

Commi-ttee

Safety Task Force

JGU Safety

Commi-ttee

Cement Plant Safety

Commi-ttee

Cement Plant Safety

Commi-ttee

PGU Safety

Commi-ttee

UPGU Safety

Commi-ttee

Name of the Committees

Shree Power Safety

Commi-ttee

Shree Mega Power Safety

Commi-ttee

Key

Levels of Safety Committee

Plant LevelChairmanFactory Manager

Plant LevelChairmanAGM (PP)

Plant LevelChairmanSr. GM (PP)

Plant Level Unit Level

Integrated Plants





SAFETY INITIATIVES

National Safety DayFrom March 4th to March 10th, 2018, all units of SCL observed the good practice of ‘Safety Week’ to safeguard and get assertive around prevention of industrial accidents. The following initiatives were undertaken• Safety competitions (slogan & poster

design, quiz)• Inter-plant safety street play

competition• Departmental presentations on safety

initiatives

Safe Erection of Scaffolding An external two days safety training program on ‘Safe Erection of Scaffolding’ was delivered by external experts on 18th & 19th April, 2017 at Ras plant. The session was conducted with the aim to inculcate basic concept and new techniques in the field of safe erection of scaffolding. The session was very interactive and 30 participants have benefitted from this training program.

Disaster Management Plan for SchoolsBy collaborating with the Education Department of Rajasthan, a 2-day seminar on ‘Disaster Management Plan’ was organised for Headmasters of all schools from Jaitaran Tehsil at Upper Primary School, Ganeshpura. In addition, a 90-minute presentation was rendered by the ‘Safety Team’ from the Ras plant on the topic of ‘Disaster Management Plan and Role of Teachers in Schools’.

National Fire Service DayBased on the theme ‘Firemen – Your Partner for Saving Life and Property’, we organized awareness programs for employees and associated around fire safety. The following initiatives were undertaken• Knowledge sharing sessions on ‘Fire Prevention &

Fire Fighting’• Display of banners & posters on fire safety at

strategic locations at all plants• Delivery of messages on fire safety by Senior

Executives• Training program on ‘Fire Prevention & Fire

Fighting’ through demonstrations on fighting and rescue

“Your safety secures your family- Be cautious on roads”All units of SCL observed the ‘Road Safety Week’ from January 11th to January 18th 2018 based on the aforesaid theme. Awareness campaigns were conducted within the plants as well as the community to propagate the agenda of achieving ‘Zero Road Accidents’.

Road safety awareness rally, educational banners, safety posters, safety films and leaflets related to the road safety were distributed to employees, contract workers, truck drivers and school children.

Home Safety and Road SafetyAround 800 school children from various Government schools were provided awareness on the importance of road safety.

Defensive Driving ProgramSCL plant safety and logistics team conducted a defensive driving training program for around 300 truck drivers.

E M B E D D I N G H A R M O N I O U S G R O W T HCREATING A SAFE WORKPLACE

National Safety Day

Scaffolding

Disaster Management Plan

Fire Fighting Training for Rescue Members

Road Safety

Your Safety Secure Your Family

Defensive Driving Programme



ELIMINATING INJURIES THROUGH TRAININGThe ‘Safety Department’ manned by people experienced in safety practices, is focused on building

a Safety Culture across the organization. During the reporting year, 158 staff trainings and 2,614 contractor safety trainings were offered and the progress was

communicated to the Board on a quarterly basis. We use our internal portal ‘Shree Manthan’ for inculcating the training programs for our employees.

Number of Programs Number of ParticipantsStaff safety training Staff safety training

Contract workers safety training Contract workers safety training

Truck driver training Truck driver training

Tool box talks Tool box talks

3216 15

81

0

20

40

60

80

100

No. of joint safety audits conducted

Beawar Ras Raipur Grinding units

122

1,469

32933

0

500

1000

1500

2000



3348

17

165

0

40

80

120

160

200



823

10,508

1,124 1,591

0

2500

5000

7500

10000

12500



823

10,508

1,124 1,591

0

2500

5000

7500

10000

12500



372

1,043447

3,431

0

750

1500

2250

3000

3750



13256

63,378

16,202

1,5910

25000

50000

75000



593

273493

1,397

0

350

700

1050

1400

1750



2,451

13,324

9,1497,806

0

4000

8000

12000

16000



OUR SAFETY PERFORMANCEWith the goal to ensure zero fatality across all units, all our safety initiatives and employee engagement programs have been designed to reach this goal. Through a regular internal audit protocol, we assess the overall safety performance and examine the existing procedures, systems and control measures for fire & safety hazards.

Observations and recommendations were implemented by concerned departments within commensurate time. As part of the process, monthly safety performance of all grinding units were reviewed and discussed with all safety professionals for implementation of common safety system and practices.

BEHAVIORAL TRAININGS OF THE OPERATORS OF THE MINING DEPARTMENT

Objective

Reduce severity of incidents due to behavioral aspects

How the solution was implemented?To break the myth surrounding the correlation of incidents with unavoidable human behavioural aspects, we implemented a pilot training program ‘Embracing Safety culture in Mines’

Methodology used Training sessions with the help of Power Point Presentation & Safety Videos

How the training was conducted

Classroom based trainings

No. of participants 280

Participating Department(s)

Mines department

Value created for the community

By developing a robust safety culture, we are able to continue our record of being ‘Zero Accident Mine’

The successful completion of the pilot training programme has resulted in the extension of the training program to HEMM maintenance section

Audit protocolDuring the reporting year FY 2017-18, internal audits were conducted by the safety departments at all units.




Joint safety audits conducted Mock drills conducted

Safety inspections by safety department

7091

31

160

0

40

80

120

160

200



4 63

33

0

10

20

30

40



380315

105

458

0

100

200

300

400

500



380315

105

458

0

100

200

300

400

500



*During the reporting period, 1 fatality of a direct employee occurred at Ras

*During the reporting period, 1 fatality of a direct employee occurred at Ras

Description Unit Male Female TotalInjuries Numbers 2 0 2

Injury Rate (IR) Per million man hours worked 0.20 0 0.20

Occupational disease cases Numbers 0 0 0

Occupational disease Rate (ODR)

Per million man hours worked 0 0 0

Lost days Numbers 232 0 232

Lost days rate (LDR) Per million man hours worked 23.04 0 23.04

Absenteeism Days 19,398.5 71 19,469.5

Man Hours worked Hours 10,067,788 25,296 10,093,084

Fatalities Numbers 1* 0 1*

Fatality rate Per million man hours worked 0.099 0 0.099

Description Unit Male Female TotalInjuries Numbers 26 0 26

Injury Rate (IR) Per million man hours worked 1.69 0 1.69

Occupational disease cases Numbers 0 0 0

Occupational disease Rate (ODR)

Per million man hours worked 0 0 0

Lost days Numbers 2,010 0 2,010

Lost day rate (LDR) Per million man hours worked 130.73 0 130.73

Absenteeism Days 127,537 0 127,537

Man Hours worked Hours 15,374,851 0 15,374,851

Fatalities Nos 1* 0 1*

Fatality rate Per million man hours worked 0.065 0 0.065

Safety data for direct employees (FY 2017-18)

Safety data for indirect employees (FY 2017-18)

OUR ACTION PLAN FOR REDUCING FUTURE MISHAPS

The fatality had occurred due to exposure of the worker to extreme temperature while working on an elevated platform. The worker succumbed to injuries due to hot material which gushed out of the door which was opened by workers who were working on a higher level.

As soon as the incident occurred, SCL conducted a thorough incident investigation as per the statutory protocols to identify the reason behind the mishap.

Measures implemented• Established a protocol

to prevent workers from surrounding/below elevated platforms to vacate the space

• Implemented visual display aids on all doors

• Marked safety instructions near the incident place


Fire Fighting Training for Rescue Members



FOSTERING SUSTAINABLE SUPPLIERS

Inequality affects many areas in which we operate. As such, we recognize the responsibility to generate economic value for local stakeholders as well as improve their

competitiveness. With supply chain becoming complex day by day, it has become imperative for us to establish internal

values, strategies and code of conduct with suppliers to ensure responsibility.

All contracts include clauses on environment and social aspects

18 Suppliers were assessed on social and environmental criteria

GOALS 2017-18

• 20 more suppliers would be covered under sustainability appraisals i.e. 16.2% of total critical suppliers

• Include sustainability components in all contracts (100%)

PERFORMANCE

• 18 suppliers were assessed based on social and environmental criteria

• All contracts and request-for-proposals included a terms of reference on sustainability aspects to be covered by the firm

Vendor Code of Conduct

Our sustainability direction extends to the supply chain. We work to ensure that our suppliers also follow practices in line with our sustainability policies. In order to achieve the desired outcome, we have integrated the policies in all our supplier agreements.

Through the ‘Green Procurement Policy’ and ‘Vendor Code of Conduct’, SCL strives to nurture the suppliers to the desired expected

level. The policies outline the principle of ethical and business practices to be adopted by the suppliers in order to sustain long-term collaboration with SCL. Coverage of the policies extends to 100% of our suppliers who are also appraised on the same.

Our determination is to apply the policies to all of our purchases, and require procurement staff not only to incorporate sustainable

criteria in evaluating product and service options, but also to support suppliers in their sustainable development. Supporting local suppliers also makes a valuable contribution to the regional and national economy, as well as creates a level of supply security for SCL. During the year FY 2017-18, we added 959 new suppliers to our value chain of which, around 99% are from India.

IMPROVING PERFORMANCE THROUGH SUPPLIER ASSESSMENTSSCL has a systematic approach for supplier screenings called as ‘Supplier Categorization Procedure’ and applies to all suppliers who SCL have an established agreement

with and suppliers who are in the process of entering an agreement with SCL. The procedure supports SCL in assessment of the business partner’s performance across economic, environmental and social parameters as well as helps in understand the potential risks

facing our supply side operations. During the reporting year FY 2017-18, we screened and assessed 18 suppliers based on our social and environmental assessment criteria including SA 8000.

Vendor Code of Conduct

Defines minimum standards of ethical and responsible behaviour on following aspects of sustainability and social accountability

Human rights

Maintaining value and integrity

Forced labour

Safe and hygienic work conditions

Child labour

Fair competition and anti-corruption

Compliance with laws

Corporate social responsibility

GREEN PROCUREMENT POLICYProvides a guidance and framework for evaluating and screening of the products to ensure that they have minimal impact on the environment

NEW SUPPLIERS ENGAGED

9545

Within India

Out of India

No supplier was identified as having significant negative environmental and social impact


308-1 308-2 414-1



Vendor confirmation• Finalize vendor and

issue contractEstablish contact• Mapping of potential

vendors• Meeting potential vendors at

trade events

Supplier profiling• Assess the technical

capabilities of the vendor

• Assess requirement of the products

Trial agreement• Enter into a

contractual agreement on a trial basis

• Assess the vendor performance

Initial vendor assessment• Assess the economic

performance of the vendors by reviewing the annual reports

Physical assessment• Conduct site audit of the

potential vendors• Conduct third-party audit

for critical components

Assessed by SCL technical team

Assessed by SCL procurement team

SUPPLIER ASSESSMENT PROCESS

Supplier assessment

process

1

2

34

5

6

ENVIRONMENTAL CRITERIA’S ASSESSED

• Monitoring and management of environmental issues

• Sustainable packaging and shipping materials

• Environmental policy statement• Resource efficiency (energy

conservation, water conservation, fuel savings)

SOCIAL CRITERIA’S ASSESSED

• Child labour• Forced labour• Health & Safety• Freedom of association and

collective bargaining• Discrimination• Working hours• Remuneration

• Incremental growth of business from INR 5 Lakhs to INR 105 Lakhs as of FY 2017-18

• Expansion of business with all cement plants across Rajasthan• Accreditation from the European Union’s Foundation for MSME

Clusters for implementing ‘Occupational Health & Safety Measures’

BUILDING A SUSTAINABLE GROWTH AGENDAURMIL TECHNOFAB, AJMER

VALUE CREATED

As the proprietor of the company, Mr. Pankaj Singhal started his career journey with leading cement companies and later on decided to venture out his own company. Prior to setting up his unit at the RIICO Industrial area of Ajmer, he gained experience on fabrication by working with Standard Alloy. Started in 2000, Pankaj began visiting SCL unit on a day-to-day basis and started developing conveyor belt components, air nozzle, rotary airlock, pin gate, curtain chain and other products. As SCL grew,

Pankaj’s Urmil Tehnofab also grew giving him more opportunity to work with SCL.

With SCL being a responsible firm which influences suppliers to also adopt sustainability, Urmil eventually began implementing sustainability measures across its units. Over the years, Urmil has implemented significant measures including a ‘Waste Heat Recovery System’ which provides savings of around INR 12 lakhs/annum.


308-1 308-2 414-1



STRENGTHENING COMMUNITIES

Corporate Social Responsibility (CSR) drives SCL and we unceasingly strive to look for opportunities beyond profitability. By integrating the needs of the

communities into our day-to-day operations, we aim to create positive value in the society. In line with the

regulatory requirements and our guiding principles we support the upliftment of the local communities

through education, women empowerment, rural development, environmental protection and other

initiatives.

48%CSR budget spent on Rural Development thematic area

25%CSR budget spent on Education thematic area

44%Increase in the investments on CSR initiatives as compared to FY 2016-17

Governed and guided by the CSBR committee, SCL’s ‘Samaj Seva’ programme operates in line with the statutory requirements as mandated by the Government of India.

Snapshots of the ‘Samaj Seva’ CSR programme

Scope

Vision

Compliance

SCL considers community development as an integral part of its wider sustainability agenda thereby bring about a change to the lives of the community associated with the company

SCL adheres to the statutory mandate of section 135 of the Companies Act and is committed to spending 2% of its average net profit of last three years towards ‘Samaj Seva’ initiatives

The CSR policy shall cover all CSR projects/programmes as per Schedule VII of the Act and shall be applicable to three integrated plants- Beawar, Ras and Raipur and seven Grinding Units – Khushkhera, Suratgarh, Jaipur, Roorkee, Aurangabad, Panipat and Bulandshahr

Samaj SevaProgramme

CSBR Committee

Mr. O.P. Setia (Chairman) Dr. Leena Srivastava

Mr. Prashant Bangur Mr. Sanjiv Krishnaji Shelgikar

Mr. Nitin Desai Mr. Ramakant Sharma

Independent & Non-Executive Director Independent & Non-Executive Director

Non Independent & Executive Director Independent & Non-Executive Director

Independent & Non-Executive Director Non-Executive Director




For every organisation, the new realm of investment is to be socially responsible thereby gaining confidence of the stakeholders as well as secure direct financial gains from the benefits of well-managed community investments. At SCL, we use the ‘Participatory Rural Appraisal (PRA)’ process to identify and implement the initiatives based on the needs of the community. During the process, we also ensure that our initiatives are bespoke to avoid any negative impacts. Where residual impacts emerge, SCL has a structured grievance redressal mechanism to resolve issues with commensurate speed.

OUR BESPOKE THEMATIC AREAS OF INVOLVEMENTSCL’s CSR activities have been underpinned by a robust process

of identifying focus areas which include education, healthcare, rural development and women empowerment amongst others. These areas also underpin our commitment and progress towards the national sustainable development agenda of ‘Collective Effort, Inclusive Growth’. Reflecting the national commitments, our focus is also increasingly focused towards elimination of poverty, gender equality and rural development.

During the reporting year FY 2017-18, the CSR expenditure stood at INR 278.1 million against the average net profit of INR 13,780.3 million reported over the last three years.

413-1 413-2Grievance Redressal Process• Grievances are

shared during meetings and interactions with the local villagers

• Villagers submit a written complaint to the SCL’s CSR Wing

• CSR Wing ensures the complaints are addressed with commensurate speed

CSR thematic area Value spent (INR million)Healthcare (sanitation, drinking water) 27.5

Education 70.9

Gender equality, women empowerment and initiatives around reducing inequalities

13.3

Environment protection 9.7

Art & Culture 11.2

Rural sports 3.2

Rural development 133.3

CSR overheads 9

Total CSR expenditure 278.1

Focus areas

Healthcare

Sustainable livelihood

Environment protection

Promotionof art and

culture

EducationInfrastructuredevelopment

Womenempowerment




With the Government realizing the necessity to impart Information Technology (IT) based education to bridge the gap between theory and

practical knowledge dissemination, computer based education programme was implemented around the peripheral areas of SCL.

Ras

Objective

• Increase awareness of youth/villagers towards IT based education• Increasing the technical competencies of youth on IT

How the solution was implemented?• Established well-equipped computer centres with all

amenities and qualified trainers to impart training• Provided customized content book for the trainees to help

them build their nuances of computer basics and internet usage

Forward looking sustainable model• Partnered with NIIT Foundation, Delhi to provide

structured (training and assessments) certified training for the students

• Imparted ‘Rajasthan State Certificate Course in Information Technology (RSCIT)’ for individuals applying for Govt. jobs

• Organised summer coaching camps for villagers on computer basics


Total no. of additional computer centres replicated and established based on the same model

Total no. of beneficiaries who have received computer education across all 3 centres (Ras, Babra, Butiwas)

BUILDING SKILLFUL AND TALENTED FUTURE GENERATIONS

Developing community through ‘Computer Literacy Centre (CLC)’

2

1,238

RSCIT Batch Computer Literacy Centre

Driven by the evolving agenda of improving the standard of living of women around Beawar, SCL identified the remote and backward village of Junjhara Ka Badia from Lulwa Panchayat.

Prior to the commencement of the programme, SCL had to tackle the hurdle of bringing in reclusive women to participate in the program. As the efforts were not yielding positive outcomes,

SCL ventured to meet the Village Sarpanch and family members to appraise them about the objective of this programme.

Around 20 women within the age group of 18-20 years identified. Despite communication in local language being detrimental to the success of the project, SCL was able to implement the programme with the support of the local villagers.

Once the results started to emerge, requests came in for enrolling more women into the training programme.

The success of this initiative were also acknowledged by various media houses which garnered publications about SCL’s program in various news articles.

Beawar

Objective

• Create employment opportunities for women

Project implementationThe core focus of the project was to train women on ‘Sewing, stitching, cutting, designing and bag making’ thereby making them to become self-reliant.


Tangible benefits• Generating monthly earnings of INR

4,000-6,000 from women opened commercial ventures

• Replication of the programme in two more villages- Andheri Deori and Neemgarh to train around 160 women

Intangible benefits• Increasing the resilience of women

from backward communities• Increased competencies on tailoring

and designing

WOMEN EMPOWERMENT AS A TOOL TO IMPROVE STANDARD OF LIVING

Shree Stree Shakti Yojna

Training women on tailoring and allied services

Phase 1 (4 months)

Training on ‘Hand Operated Sewing Machines’

Phase 2 (3 months)

Training on ‘Peddle Operated Sewing Machines’

Phase 3 (1 month)

Training on ‘Electric Operated Designer Sewing Machines’

All capital expenditure related to buying the tailoring machines and other expenses was invested upfront by SCL.


Sewing Centre Shree Stree Shakti Yojna



With 163 million inhabitants in India living without access to safe drinking water, fortifying the needs of the marginalized section of

the community is a corner stone for securing the social license to operate. At SCL, we identified that the communities where we operate

have access to contaminated water and thereby implemented solutions to improve their quality of life.

Ras

Raipur

DRINKING WATER IS ESSENTIAL FOR A HEALTHY LIFESTYLE

Providing drinking water facility in villages & schools

Objective

Objective

Provide access to safe drinking water in the villages

Nurture local sports talent

How the solution was implemented?• Identified the problem of fluoride contamination as

the main source of acute water shortage• Mapped the drinking water need of the villages• Constructed ‘36 water tanks’ in the government

schools and nearby villages • Constructed ‘27 Khelis’ (water storage structure) to

meet the drinking water requirement of the cattle• Provided water supply through water tankers in

villages and schools

How the solution was implemented?The core focus of the project was to establish a platform for rural youth to display their talent/skill related to sports. SCL also ensured participation of women in the sports events. Some of the key events organised includes:• Volleyball• Kabbadi• Athletics• Cricket• Kho-Kho


Benefits realised

Tangible benefits

Total no. of beneficiaries who have access to safe drinking water

Total no. of participants

Total no. of gram panchayats from where women participated in various events

Intangible benefits• Easy access to safe drinking water• Reducing the time taken by women

to draw water during summer seasons• Increasing cattle life span

Total investment for construction

6,000

59016

INR 33,75,000

Promoting sports for nurturing rural talent

Shree Gramin Khel Mahotsav

Generating livelihood,

Bulandshahr

To promote gender equality and for empowering women, SCL decided to cater the needs of around 800 unemployed women around the nearby villages. We established ‘Sewing Learning and Training Centre’ where the women were trained and garnered to establish their own career path.

As part of our education promotion, we identified that there was a necessity to increase awareness about education and vocation skills. To increase the turnout in schools, SCL decided to provide basic infrastructure for the students and teachers along with the necessity accessories such as clothes and stationary items. Within a span of 7 years, from 2011 to 2018, the students strength has increased from 150 to 450 in the government school of Udaipur, Udasar.

Increasing literacy rate, Surathgarh

Owing to the spread of diarrhoea in the villages of Akbarpur and Tehsil Laksar, SCL decided to provide access to healthcare services

SCL’s CSR team along with a team of doctors and nurses visited the villages and started conducting medical camps to stop the spread of disease. This unanticipated program has built a strong and harmonious relationship between SCL and the village community

Quality Healthcare,

Roorkee

Due to Fluoride contamination in water sources in Aurangabad district, the local community placed a formal request to SCL for setting up a ‘Fluoride Treatment Plant’

SCL installed a ‘Fluoride Treatment Plant’ and thereby created a safe water source for the local community

Safe Provision of Water, Bihar

SCL identified that there was a need for government schools to be equipped with ICT labs to increase the interest level of students. An activity was started to promote E-education in government schools by developing an ICT lab and science lab. Many of the senior students benefitted from this program as they were able to acquire knowledge which was only possible through the usage of computer. Promoting

Education, Khushkhera

As an effort to keep the community healthy, SCL organised various medical camps throughout the year to promote the agenda of good health and hygiene. Around 1,400 villagers were given free advise and medicines for ailments observed.

Quality Healthcare,

Panipat



SCL’S CSR INITIATIVES WERE ALSO RECOGNISED BY THE NATIONAL MEDIA

BENEFICIARY’S SAY

Shree Cement Samaj Seva Vibhag Khushkera is running ‘Silai’ centre for the last two years in our village. Around 36 women have been trained to do our own tailoring work and I am presently earning Rs. 2,000/month through this camp. I, along with my village women are extremely thankful to Shree

Cement Limited.

Smt. Meena Karoli Village, Khushkhera

The vocational training received from Shree Cement Ltd, Ras helped me to stand on my own feet. I would like to continue

tailoring even after my marriage. I feel empowered after completing the entire course of tailoring. The best day of my life was the day when I earned my first income of Rs.2000 and

presented to my family.

Smt. MumtazKolpura Village, Ras






Shree Cement has undertaken several CSR activities in various domains which has made a great impact in the lives

of the people of our village. Initiatives such as providing stationaries, books, uniforms for promoting education,

constructing water harvesting structures and water pipelines for water management and empowering women through teaching sewing and Papad making are some of the many

examples of SCL’s CSR activities.

Sarpanch- Gram PanchayatShyamgarh, Beawar

Under the Swaccha Bharat Mission, Shree Cement built toilets in several houses in the ward and are actively promoting

the “Open Defecation Free” Campaign. Several behaviour change campaigns such as Swacchta Rallies and Nukkad

Nataks have been organised to create awareness on good sanitation practices.

Sarpanch- Gram PanchayatAndheri Devi, Beawar



CSR Initiatives No. of BeneficiariesEducation

Computer Literacy Center 118

School Support Programme 8,068

Shree Ki Patshala 101

Infrastructure support Entire Village

Health

RO drinking water in government schools & villages 118

Women Empowerment

Income generation programme (Sewing, Mehandi, Craft, Rangoli and etc.) 208

Save the Girl Child Campaign by providing a fixed deposit 1

Support to BPL families for marriage programme 53

Women’s Day celebration 27

Sustainable Livelihood

Promotion of HYV (High Yielding Variety) seeds 2,723

Training of farmers 50

Financial assistance in terms of subsidized agriculture equipment 55

Distribution of uniforms to Anganwadi Students 319

Developed two Anganwadi Center as model center 22

Developed RWH structures under the Mukhya Mantri Jal Swavlamban Abhiyan (MJSA)

Entire Village

Rural Sports

Provision for providing sports kit for cricket, football, volley ball, carrom etc. 2,039

Environment Protection

Provision for solar torches 370

Provision for providing tree guard and saplings Entire Village

Infrastructure Development

Construction of cement concrete road in various villages Entire Village

Facility for community i.e. drainage work, renovation for health centre Entire Village

Drinking water tank and borewell Entire Village

Overall scope and classification of CSR initiatives undertaken by SCL during FY 2017-18

BEAWAR


403-1




Computer Literacy Center 256

School Support Programme 5,200

Shree Ki Patshala 207

Quality Education Programme 355

Health

Mamta Project (maternal & child health care) 1,418

Mamta /Mega Health Camp/ Mobile Health Camps 10,214

Shree Chetna Project 990

Shree Swachhata Project 1,000

Provision of drinking water facilities 6,070

Women Empowerment






Promotion of agricultural equipment 89

Promotion of HYV (High Yielding Variety) seed distribution 150

Training and exposure of villagers and SHG members 133

Livestock management 314

Developed two Anganwadi Center as model center 22


Entire Village


Sapling and fruit bearing plant distribution for villagers 2,507

Orchard development & fencing work Entire Community

Distribution of hybrid vegetable, fodder and other crop seeds 978

RAS

CSR Initiatives No. of BeneficiariesInfrastructure Development

Construction of village roads, CC roads and block roads 1,000

Construction Rapat/Culvert Entire Community

Construction of Kheli/Water tank 1,081

Construction of shade, repairing and renovation of classroom 400

Construction of class rooms and other physical support in government schools 400

Repairing and renovation of other government establishment 900

Support of cement bags & material for religious places 2,500

Contribution for religious Festivals, Melas, social Groups and Samitis 5,500

Deepening of RWH / pond structures Entire Village


Celebration of National and International days viz. Independence Day, Republic Day, Environment Day etc. in schools

500

Monetary support to Viklang Sangh Entire Community

Monetary support to ITI students under scholarship for nearby villages. 13

Health

Arranging health camps and provision of medicines and other facilities including financial assistance for arranging health camps

814

Providing safe drinking water through digging of bore-wells, installation of submersible pumps and installation of hand pumps

6,000

Organising first-aid training at school & village level 500

Women Empowerment






Plantation under Hariyar Chhattisgarh Scheme 5 Villages

RAIPUR





Distribution of furniture in schools 300

Distribution of school bags & stationary in government schools 350

Distribution of school dresses & sweaters in government schools 200

Distribution of fans, hygiene kits and sweets on 15th Aug and 26th Jan 1200

Sponsorship of trophies for meritorious students of Jobner 150

Health

General medicine camps 1000

Mamta Project for pregnant women and school children 200

Installation of water tanks Entire Community

Distribution of dustbins under Swaccha Bharat Abhiyan Entire Community

Installation of water cooler and RO in school 550

Provision of fans for Jobner PHC Entire Community

JAIPUR

CSR Initiatives No. of BeneficiariesSustainable Livelihood

Monetary support to various cultural functions related to art & heritage at village level

5 Villages

Monetary Support in socio-religious and other functions in nearby villages 5 Villages

Infrastructure development work including construction of Vrudhashram, Mangal Bhawan, Community Centre, Drains, Pachri & pond beautification

11 Villages

Monetary Support to district CSR Cell for bio-toilets, upgradation of bus stand, skill development & supply of sport kits in schools

11 Villages

CSR programme coordination expenses including expenses on brochures, painting, leaflets, CSR documentary film, display boards inauguration function etc.

11 Villages

CSR programme coordination expenses including expenses on brochures, painting, leaflets, CSR documentary film, display boards inauguration function etc.

11 Villages

Promotion of Rural Sports

Expenses on Shree Khel Mahotsav 2017 & other district level tournaments 590 Players

CSR Initiatives No. of BeneficiariesWomen Empowerment

Silai Center at Dhera Village 90

Beauty parlor center at Asalpur Village 25


Installation of tree guards Entire Community


Construction of wall of cremation center at Asalpur Village Entire Community

Dismantling and reconstruction of Thakur Maharaj Mandir at Dhera Village Entire Community

Cement bags donation Entire Community

Financial support in Ramleela / Mahashivratri Entire Community

Support of furniture in library at Asalpur Village Entire Community


Distribution 1400 school bags among government school students in Aurangabad, Bihar

1,400

Contribution of 100 bags of cement for school construction

Health

Installation of 3 fluoride treatment plant in peripheral villages i.e Jasioya, Majurahi and Bela

150

Organised health check-up camps in two villages 400

Blood Donation Camp 65

Installation of 5 hand-pumps in peripheral villages Entire Village

Women Empowerment

Provision of 20 Sewing Machines and 10 workstations for SP, office Aurangabad 30


Plantation of 15,000 plants in peripheral villages of plant Entire Community

AURANGABAD




BULANDSHAHR

CSR Initiatives No. of BeneficiariesPromotion of Rural Sports

Financial assiatance given to SITYOG Sports club for basketball & cricket tournament

Entire Community

Reinovation of Indoor Stadium,Aurangabad,bihar Entire Community


Camp organized at Surya Dev temple, Aurangabad 5,000

Camp Organized at Surya Dev temple, Aurangabad 7,000

Provided 400 bags of cement for construction of temple at Rawal Bigha, Mahadev Sewa Samiti, Maa Devi Bhandar and Mahauth in Aurangabad

Entire Community

Financial contribution provided on occasion of Ram Navmi Entire Community

Provided financial support for organizing folk musical night at Aurangabad 2,000

Financial assistance provided for organizing camp at Deoghar, Aurangabad 5,000


Financial assistance given to flood affected family of Bihar through CM Relief Fund 5,000


Promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly, and differently abled and livelihood enhancement projects

750

Contributions or funds provided to technology incubators located within academic institutions which are approved by the Central Government

Entire Community

Health

Eradicating hunger, poverty and malnutrition, promoting preventive health care and sanitation and making available safe drinking water

100

Women Empowerment

Promoting gender equality, empowering women, setting up homes and hostels for women and orphans; setting up old age homes, day care centers and such other facilities for senior citizens and measures for reducing inequalities faced by socially and economically backward communities

800


Ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agro forestry, conservation of natural resources and maintaining quality of soil, air and water

Entire Community

CSR Initiatives No. of BeneficiariesPromotion of arts and culture

Protection of national heritage, art and culture including restoration of buildings and: sites of historical importance and works of art; setting up public libraries; promotion and development of traditional arts and handicrafts

Entire Community


Training to promote rural sports, nationally recognized sports, Paralympics sports and Olympic sports

Entire Community

Sustinable Livelihood

Contribution to the Prime Minister's National Relief Fund or any other fund set up by the Central Government for socio-economic development and relief and welfare of the scheduled castes, the scheduled tribes, other backward classes, minorities and women

Entire Community

Rural development projects Entire Community


Distribution of school uniform in government schools in Maheshra, Khushkhera, Rabrka and Salarpur,

1,200

IT support to government schools for computer labs and science labs 1,600

Distribution of sweaters to village students in rural areas in government schools 1,200

Motivational activities 1,400

Infrastructure development in schools 1,200

Health

Preventive health check-up programs 1,600

Making available safe drinking water 1,800

Women Empowerment

Promoting gender equality and empowering women 200

KHUSHKHERA




PANIPAT


Promotion of agricultural equipment 89

Promotion of HYV (High Yielding Variety) seed distribution 150

Training and exposure of villagers and SHG members 133

Livestock management 314

Developed two Aganwadi Center as model center 22


Entire Village


Green Belt development 3,000


Infrastructure development in nearby villages 2,800

IT support to village panchayat 3,000

Nyay Apke Dwar 900

Water pots for animals and birds in summer season 400

Blanket distribution to poor people 600

Construction of Shiv Temple 1,700

Micro projects for youth and women 1,400

Water cooler in public places 2200

Deepening of RWH / Pond Structures Entire Village

Promotion of Traditional Art and Culture

Promotion of local art and culture through local melas, festivals and functions 3,200


Promoting rural sports and activities Entire Community


Sweaters and winter wear was distributed to government schools in Khukhrana Entire Village

Awareness programme organized at Khukhrana Village on Anaemia for women and children

Entire Village

CSR Initiatives No. of BeneficiariesHealth

Medical camps Entire Community

Blood Donation camps 86

Women Empowerment

Financial assistance provided to BPL families for solemnizing the marriage of their daughters

7 Families


Provided submersible pumps for clean drinking water in schools 300


Promote sports & games among children of Haryana State Rural Games Association

Entire Community

Provided uniforms for children participating in Khel Mahotsav Entire School

Organised a Kabaddi Tournament in Khukhrana Village Entire Community

Organised Kabaddi Tournament in Khukhrana Village Entire Community


Donated 100 bags of cement for construction of Devi Mandir n Khu-khran village Entire Village

Donated 100 bags of cement for renovation of Shiv Mandir in Sutana village Entire Village

Distribution of 3000 Booklets on road safety among school children and truck drivers

Entire Village


Promoted education, including special education and employment enhancing vocation skills to children, women and elderly people

1,150

Provided funds to technology incubators located within academic institutions approved by the Central Government.

Entire Community

Health

Promoted preventive health care, good sanitation practices and safe drinking water

973

Women Empowerment

Promoted gender equality, women empowerment by setting up homes and hostels for women and orphans. Also, set up old age homes, day-care centres and other facilities for senior citizens

100

SURATGARH




ROORKEE


Contribution to the Prime Minister's National Relief Fund for socio-economic development of the scheduled castes, scheduled tribes, other backward classes

Entire Community

Rural development projects Entire Community


Ensuring environmental sustainability, ecological balance, protec-tion of flora and fauna, animal welfare, agro forestry, conservation of natural resources and maintaining quality of soil, air and water

Entire Community

Promotion of Traditional Art and Culture

Protection of national heritage, art and culture through setting up of public libraries and promotion of traditional arts and handicrafts.

Entire Community


Distribution of One computer with printer and 256

One Steel Almirah 50

Distribution of Utensils in Govt Schools 180

Repair of Boundary wall at Kasturba Gandhi Girls Hostel, Akbarpur Oud – to provide the security to Girls

50

Distribution of Note Book, Stationaries School Bag in Govt Schools for more than 1000 students

1,000

Distribution of Sweater during the winter season 300

Health

Blood Donation Camp 105

Pulse Polio Camp 10,000

Electrol Powder & minerla water to help Diarrhoea Affcted villagers at Akbarpur Oud

150

Women Empowerment

Kanya Dan- Provision of financial aid for girl marriage of BPL families 5


Toilet Construction - 6 nos. in Govt Schools 600

CSR Initiatives No. of BeneficiariesPromotion of Traditional Art and Culture

One Day Medical / Food camp organised under Kawad Shivir 5,000

Bhandara at Bherubaba Temple on occasion of Ram Navmi 400

Donation to Ramleela Committee, Laksar to organize the Ramleela at Laksar 500


Shree Ki Paathshala Education Programme

Shree Medical Camp

Shree Gramin Khel Mahotsav

Shree Social Services Shree Ki Paathshala – Book Distribution

Shree Agriculture Promotion


ANNEXURES




E M B E D D I N G H A R M O N I O U S G R O W T HANNEXURES

GRI CONTENT INDEX

GRI Standard Disclosure Page No.(s) Omissions

GRI 101: Foundation 2016General Disclosures GRI 102: General Disclosures 2016

Organization Profile

102-1: Name of the organization 16 -

102-2: Activities, brands, products, and services 16 -

102-3: Location of headquarters 16 -

102-4: Location of operations 18 -

102-5: Ownership and legal form 16 -

102-6: Markets served 18 -

102-7: Scale of the organization 56 -

102-8: Information on employees and other workers 97 -

102-9: Supply chain 16 -

102-10: Significant changes to the organization and its supply chain

16 -

102-11: Precautionary Principle or approach 39 -

102-12: External initiatives 16 -

102-13: Membership of associations 19 -

Strategy

102-14: Statement from senior decision-maker 4 -

102-15: Key impacts, risks, and opportunities 26 -

Ethics and Integrity

102-16: Values, principles, standards, and norms of behaviour

31 -

102-17: Mechanisms for advice and concerns about ethics 31 -

102-18: Governance structure 33 -

102-19: Delegating authority 37 -

102-20: Executive-level responsibility for economic, environmental, and social topics

37 -

102-21: Consulting stakeholders on economic, environmental, and social topics

37 -


102-22: Composition of the highest governance body and its committees

33 -

102-23: Chair of the highest governance body 33 -

102-24: Nominating and selecting the highest governance body

33 -

102-25: Conflicts of interest 33 -

102-26: Role of highest governance body in setting purpose, values, and strategy

33 -

102-27: Collective knowledge of highest governance body 33 -

102-28: Evaluating the highest governance body’s performance

33 -

102-29: Identifying and managing economic, environmental, and social impacts

39 -

102-30: Effectiveness of risk management processes 39 -

102-31: Review of economic, environmental, and social topics

37 -

102-32: Highest governance body’s role in sustainability reporting

33 -

102-33: Communicating critical concerns 31 -

102-34: Nature and total number of critical concerns 31 -

102-35: Remuneration policies 43 -

102-36: Process for determining remuneration 43 -

102-37: Stakeholders’ involvement in remuneration 43 -

102-38: Annual total compensation ratio 43 -

102-39: Percentage increase in annual total compensation ratio

44 -

102-40: List of stakeholder groups 46 -

102-41: Collective bargaining agreements 100 -

102-42: Identifying and selecting stakeholders 46 -

102-43: Approach to stakeholder engagement 46 -

102-44: Key topics and concerns raised 46 -

102-45: Entities included in the consolidated financial statements

12 -

102-46: Defining report content and topic Boundaries 50 -

102-47: List of material topics 50 -

102-48: Restatements of information 12 -

102-49: Changes in reporting 12 -

102-55




102-50: Reporting period 12 -

102-51: Date of most recent report 12 -

102-52: Reporting cycle 12 -

102-53: Contact point for questions regarding the report 12 -

102-54: Claims of reporting in accordance with the GRI Standards

12 -

102-55: GRI content index 142 -

102-56: External assurance 12 -

Topic Specific StandardsGRI 200 Economic Standard SeriesEconomic PerformanceGRI 103: Management Approach 2016

103-1:Explanation of the material topic and its boundary

52 -

103-2: The management approach and its components 52 -

103-3: Evaluation of the management approach 52 -

GRI 201: Economic Performance 2016

201-1: Direct economic value generated and distributed 57 -

201-2: Financial implications and other risks and opportunities due to climate change

41 -

201-3: Defined benefit plan obligations and other retirement plans

58 -

201-4: Financial assistance received from government 129 -

GRI 300 Environmental Standard Series GRI 103: Management Approach 2016

103-1: Explanation of the material topic and its boundary

53 -



GRI 301: Materials 2016

301-1: Materials used by weight or volume 64 -

301-2: Recycled input materials used 64 -

301-3: Reclaimed products and their packaging materials 64 -


EnergyGRI 103: Management Approach 2016


52 -



GRI 302: Energy 2016

302-1: Energy consumption within the organization 67 -

302-2: Energy consumption outside of the organization 67 -

302-3: Energy intensity 67 -

302-4: Reduction of energy consumption 69 -

302-5: Reductions in energy requirements of products and services

67 -

WaterGRI 103: Management Approach 2016


53 -



GRI 303: Water 2016 303-1: Water withdrawal by source 76 -

303-2: Water sources significantly affected by withdrawal of water

76 -

303-3: Water recycled and reused 76 -

BiodiversityGRI 103: Management Approach 2016


53 -



GRI 304: Biodiversity 2016

304-1: Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas

80 -

304-2: Significant impacts of activities, products, and services on biodiversity

80 -

304-3: Habitats protected or restored 80 -

304-4:IUCN Red List species and national conservation list species with habitats in areas affected by operations

80 -




EmissionsGRI 103: Management Approach 2016


53 -



GRI 305: Emissions 2016

305-1: Direct (Scope 1) GHG emissions 83 -

305-2: Energy indirect (Scope 2) GHG emissions 83 -

305-3: Other indirect (Scope 3) GHG emissions 83 -

305-4: GHG emissions intensity 83 -

305-5: Reduction of GHG emissions 83 -

305-6: Emissions of ozone-depleting substances (ODS) 84 -

305-7: Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions

84 -

Effluents & Waste GRI 103: Management Approach 2016


53 -



GRI 306: Effluents & Waste 2016

306-1: Water discharge by quality and destination 88 -

306-2: Waste by type and disposal method 88 -

306-3: Significant spills 88 -

306-4: Transport of hazardous waste 88 -

306-5: Water bodies affected by water discharges and/or runoff

88 -

Environmental Compliance GRI 103: Management Approach 2016


52 -



GRI 307: Environmental Compliance 2016

307-1: Non-compliance with environmental laws and regulations

90 -


Supplier Environmental AssessmentGRI 103: Management Approach 2016


52 -



GRI 308: Supplier Environmental Assessment 2016

308-1: New suppliers that were screened using environmental criteria

115116

-

308-2: Negative environmental impacts in the supply chain and actions taken

115116

-

GRI 400 Social Standard Series GRI 103: Management Approach 2016


52 -



GRI 401: Employment 2016

401-1: New employee hires and employee turnover 98 -

401-2: Benefits provided to full-time employees that are not provided to temporary or part-time employees

99 -

401-3: Parental leave 99 -

Labour Management Relations GRI 103: Management Approach 2016


52 -



GRI 402: Labour Management Relations 2016

402-1: Minimum notice periods regarding operational changes

100 -

Occupational Health & Safety GRI 103: Management Approach 2016


52 -






GRI 403: Occupational Health & Safety 2016

403-1: Workers representation in formal joint management–worker health and safety committees

105 107

-

403-2: Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities

105 -

403-3: Workers with high incidence or high risk of diseases related to their occupation

106 -

403-4: Health and safety topics covered in formal agreements with trade unions

105106

-

Training & Education GRI 103: Management Approach 2016


52 -



GRI 404: Training & Education 2016

404-1: Average hours of training per year per employee 101 -

404-2: Programs for upgrading employee skills and transition assistance programs

101 -

404-3: Percentage of employees receiving regular performance and career development reviews

102 -

Diversity and Equal OpportunityGRI 103: Management Approach 2016


52 -



GRI 405: Diversity & Equal Opportunity 2016

405-1: Diversity of governance bodies and employees 102 -

405-2: Ratio of basic salary and remuneration of women to men

102 -

Non-Discrimination GRI 103: Management Approach 2016


52 -




GRI 406: Non-Discrimination 2016

406-1: Incidents of discrimination and corrective actions taken

103 -

Freedom of Association and Collective Bargaining GRI 103: Management Approach 2016


52 -



GRI 407: Freedom of Association and Collective Bargaining 2016

407-1: Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk

103 -

Child LabourGRI 103: Management Approach 2016


52 -



GRI 408: Child Labour 2016

408-1: Operations and suppliers at significant risk for incidents of child labour

103 -

Forced or Compulsory LabourGRI 103: Management Approach 2016


52 -



GRI 409: Forced or Compulsory Labour 2016

409-1: Operations and suppliers at significant risk for incidents of forced or compulsory labour

103 -

Security PracticesGRI 103: Management Approach 2016


52 -


ANNEXURES





GRI 410: Security Practices 2016

410-1: Security personnel trained in human rights policies or procedures

103 -

Rights of Indigenous PeopleGRI 103: Management Approach 2016


53 -



GRI 411: Rights of Indigenous People 2016

411-1: Incidents of violations involving rights of indigenous peoples

103 -

Human Rights AssessmentGRI 103: Management Approach 2016


53 -



GRI 412: Human Rights Assessment 2016

412-1: Operations that have been subject to human rights reviews or impact assessments

103 -

412-2: Employee training on human rights policies or procedures

103 -

412-3: Significant investment agreements and contracts that include human rights clauses or than underwent human rights screening

103 -

Local CommunitiesGRI 103: Management Approach 2016


53 -



GRI 413: Local Communities 2016

413-1: Operations with local community engagement, impact assessments, and development programs

120 -

413-2: Operations with significant actual and potential negative impacts on local communities

120 -

Supplier Social Assessment


GRI 103: Management Approach 2016


52 -



GRI 414: Supplier Social Assessment 2016

414-1: New suppliers that were screened using social criteria

115116

-

Public PolicyGRI 103: Management Approach 2016


52 -



GRI 415: Public Policy 2016

415-1: Political contributions 92 -

Socioeconomic ComplianceGRI 103: Management Approach 2016


52 -



GRI 419: Socio Economic Compliance 2016

419-1: Non-compliance with laws and regulations in the social and economic area

90 -

ANNEXURES



UNGC PRINCIPLES

NVG PRINCIPLES

UNGC Principle Category Description Page No.

Principle 1 Human Rights Businesses should support and respect the protection of internationally proclaimed human rights

32,90,103,115

Principle 2 Human Rights Businesses should make sure that they are not complicit in human rights abuses

32,90,103,115

Principle 3 Labour Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining

100,103

Principle 4 Labour Business should uphold the elimination of all forms of forced and compulsory labour

100,103

Principle 5 Labour Business should uphold the effective abolition of child labour

100,103

Principle 6 Labour Business should uphold the elimination of discrimination in respect of employment and occupation

100,103

Principle 7 Environment Businesses should support a precautionary approach to environmental challenges

39

Principle 8 Environment Business should undertake initiatives to promote greater environmental responsibility

87,95

Principle 9 Environment Businesses should encourage the development and diffusion of environmentally friendly technologies

41,67,82,92

Principle 10 Anti-Corruption Businesses should work against corruption in all its forms, including extortion and bribery

115

UNGC Principle Description Page No.

Principle 1 Ethics, Transparency and Accountability 31,32

Principle 2 Maximising the sustainability of goods and services throughout their lifecycle

90

Principle 3 Enriching the quality of life of employees and maximising their potential 48,96-103

Principle 4 Inclusive growth through stakeholder engagement 46,100

Principle 5 Businesses should respect and promote human rights 103,115

Principle 6 Protecting the Environment 39

Principle 7 Policy advocacy 32,92

Principle 8 Inclusive growth and equitable development 90,120

Principle 9 Value to customers 47,48,52,92

Principle 10 Businesses should work against corruption in all its forms, including extortion and bribery

115

IFC PERFORMANCE INDICATORS

Category Unit Value / Reference to Section

Occupational Health & Safety

Accident Rate – Direct Employee LTI per million hrs. 0.20

Accident Rate – Indirect Employee LTI per million hrs. 1.69

Fatality Rate Per million man hours worked 0.099

Fatality Rate (Indirect) Per million man hours worked 0.065

Occupational Health & Safety Monitoring Program

0

Resource Use and Waste

Hazardous Waste – Liquid kl 42

Hazardous Waste – Solid Metric tons 21.96

Air Emissions Levels for Cement Manufacturing

Dust Ton/year 572.34

NOx – for cement facilities Ton/year 13572.40

SO2 for cement facilities Ton/year 165.70

CO2 – From Decarbonisation Tons of CO2 7,945,197

CO2 – From Fuel Tons of CO2 4,484,845

HCl mg/Nm3 7.76

Hydrogen Fluoride mg/Nm3 0.73

Total Organic Carbon mg/Nm3 3.70

Dioxins – Furans ng/ Nm3, TEQ corrected to 10% O2 Concentration 0.03445

Cadmium mg/Nm3 0.016

Thallium mg/Nm3 <0.0001

Mercury (Hg) mg/Nm3 <0.0001

Effluent Level Cement Manufacturing

pH Not Applicable – No effluent discharge from Factory

Total Suspended Solids Not Applicable – No effluent discharge from Factory

Temperature Increase Not Applicable – No effluent discharge from Factory

Resource and Energy Consumption

Materials-substitute raw materials used in clinker production

% 23.61

Substitute raw materials in cement production

Metric tons 7,062,434

Fuel-energy cement GJ/ton of clinker 3.35

Electrical energy-cement GJ/ton of cement 0.18

ANNEXURES



Issue Key Performance Indicator (KPI) Unit Data Coverage (% of clinker production)

Specific NOx emissions g/ton clinker 923.04

Total SO2 emissions Tons/year 165.70 100

Specific SO2 emissions g/ton clinker 11.27

Total dust emissions Tons/year 470.20

Specific dust emissions g/ton clinker 31.98

Clinker produced with monitoring of major and minor emissions

% 100

Clinker produced with continuous monitoring of major emissions

% 100

Independent third party assurance of emissions data (Frequency from 2011)

Annual 100

Local Impacts Sites with quarry rehabilitation plans in place % 100

Sites with community engagement plans in place

% 100

Biodiversity KPI no.1

Number of quarries within, containing, or adjacent to areas designated for their high biodiversity value, as defined by GRI 304: Biodiversity 2016

Number 0%

Biodiversity KPI no.2

Quarries with high biodiversity value where biodiversity management plans are actively implemented

% NA

Water Total water withdrawal by source Million m3 2.29

Source: Ground water Million m3 1.96

Source: Withdrawal from surface water Million m3 NA

Source: withdrawal from municipal water supplies or other water utilities

Million m3 NA

Source: Rainwater harvested Million m3 0.32

Source: withdrawal from other sources Million m3 NA

Total water discharge by quality and destination

Million m3 NA

Destination: surface water Million m3 NA

Destination: Water discharge for offsite treatment

Million m3 NA

Destination: Water discharge to others Million m3 NA

Total water consumption (for cement) Million m3 1.6

Percentage of sites with a water recycling system

Million m3 100

Issue Key Performance Indicator (KPI) Unit Data Coverage (% of clinker production)

Climate Protection

Total CO2 emissions - gross Million Tons 14 100

Total CO2 emissions - net Million Tons 12.50 100

Specific CO2 emissions - gross kg/ton cementitious material

558

Specific CO2 emissions - net kg/ton cementitious material

553

Independent third party assurance of CO2 data (Frequency)

Annual 100

Fuels and Raw Materials

Specific heat consumption of clinker production

MJ/ ton clinker

3,191

Alternative Fuel Rate % 2.90

Biomass fuel rate % 0

Alternative Raw Materials Rate % 23.61

Clinker/Cement Ratio % 66

Employee Health & Safety

No. of fatalities (directly employed) Number 1

No. of fatalities per 10,000 directly employed 2

No. of fatalities (indirectly employed) Number 0

No. of fatalities (3rd party) Number -

No. of Lost time injuries (directly employed) Number 2

Lost time injuries per 1m manhours (directly employed)

0.20

No. of lost time injuries (indirectly employed - contractors and sub-contractors)

Number 14

Lost time injuries per 1m manhours (indirectly employed)

0.62

Total no. of lost time injuries Number 16

Independent third party assurance of safety data (Frequency)

Annual 100

Emission Reduction

Total NOx emissions Tons/year 13572.40 100

CSI KEY PERFORMANCE INDICATORS

ANNEXURES



ASSURANCE STATEMENT

ASSURANCE STATEMENT

The Board of Directors and ManagementShree Cement LimitedBeawar, District AjmerRajasthan 305901, India

Introduction and objective of engagementThinkthrough Consulting Pvt. Ltd. (TTC) was engaged by Shree Cement Limited (‘SCL’ or ‘Company’) to provide independent assurance to its Sustainability Report (‘Report’) for the financial year 2017-18. The Report has been developed by SCL based on Global Reporting Initiative (GRI) Standards (2016) and has been self-declared to comply with the ‘in accordance - comprehensive’ requirements of the GRI Standards. The Report has also been aligned with International Finance Corporation (IFC) performance standards, principles of UN Global Compact, National Voluntary Guidelines (NVG) for Social, Environmental and Economic Responsibility of Business published by the Ministry of Corporate Affairs, Government of India, and specific aspects of energy use, GHG emissions, air emissions and health and safety performance as per the Cement Sustainability Initiative (CSI) of the World Business Council for Sustainable Development (WBCSD).

Respective responsibilitiesThe Report content and its presentation are the sole responsibility of the management of SCL. The Company management is also responsible for the design, implementation and maintenance of internal controls relevant to the preparation of the Report, so that it is free from material misstatement, whether due to fraud or error.

TTC’s responsibility, as agreed with the management of SCL, is to provide assurance on the Report content as described in the ‘Assurance Scope’ below. We do not accept or assume any responsibility for any other purpose or to any other person or organisation. Any reliance a third party may place on the Report is entirely at its own risk.

Assurance scopeThe Report of SCL covers sustainability performance data as per the GRI Standards for their plant facilities listed below, for the period 1st April 2017 to 31st March 2018:• Integrated Cement Plants at Beawar, Ras and Raipur, thermal and captive power plants, solar plant and mines

at respective locations;• Grinding Units at Jobner, Suratgarh, Khushkhera, Aurangabad, Panipat, Bulandshahr and Roorkee.

The scope of our assurance was limited to assurance for the sustainability performance data and information as per GRI disclosures mentioned below, which were included in the Report:

General Standard Disclosures:• Organization profile: GRI 102-1 to 102-13• Strategy: GRI 102-14, 102-15• Ethics and integrity: GRI 102-16, 102-17• Governance: GRI 102-18 to 102-33• Stakeholder engagement: GRI 102-40 to 102-44• Reporting practice: GRI 102-45 to 102-56

Specific Standard Disclosures:Economic• Economic performance: GRI 201-2• Market presence: GRI 202-1, GRI 202-2• Indirect economic impacts: GRI 203-1, GRI 203-2

Environment• Materials: GRI 301-1 to 301-3• Energy: GRI 302-1 to 302-4• Water: GRI 303-1 to 303-3• Biodiversity: GRI 304-1 to 304-4• Emissions: GRI 305-1 to 305-7• Effluents and Waste: GRI 306-1 to 306-5• Environmental Compliance: GRI 307-1• Supplier environmental assessment: GRI 308-1, 308-2

Social• Employment: GRI 401-1 to 401-3• Labour/Management relations: GRI 402-1• Occupational health and safety: GRI 403-1 to 403-10• Training and education: GRI 404-1 to 404-3• Diversity and equal opportunity: GRI 405-1, 405-2• Non-discrimination: GRI 406-1• Freedom of association and collective bargaining: GRI 407-1 • Child labour: GRI 408-1• Forced or compulsory labor: GRI 409-1• Human rights assessment: GRI 412-1, 412-2

Assurance criteriaThe assurance process was conducted in line with the requirements of the AA1000 Assurance Standard (2008) Type 2 assurance1. We applied a moderate2 level of assurance.

Limitations and exclusionsWe conducted our review to express a moderate assurance conclusion. A moderate level assurance engagement relies on a risk based chosen sample of the selected information and the associated limitations that this entails. Our work was limited to four sample sites visited by us as stated in ‘Summary of key assurance procedures’. This assurance statement should not be relied upon to detect all errors, omissions or misstatements that may exist.

1 Type 2 Assurance: an engagement in which the assurance provider gives findings and conclusions on the principles of Inclusivity, Materiality and Responsiveness, and verifies the reliability of specified sustainability performance information AA1000AS (2008) Standard.2 A moderate level of assurance as per AA1000 (2008) Standard is commensurate with “limited” assurance as defined in the International Standard on Assurance Engagements 3000 (Revised) – Effective for assurance engagement dated on or after December 15, 2015.



Following are specifically excluded from our assurance scope:• SCL’s disclosures for financial performance;• Aspects of the Report other than those mentioned in assurance scope;• The Company’s statements that describe expression of opinion, belief, aspiration, expectation, aim or future

intention provided by the Company;• Operations of the Company and aspects of data/information other than those mentioned in Scope of

Assurance;• Data and information outside the defined reporting period, i.e., 1st April 2017 to 31st March 2018.

Summary of our key assurance proceduresOur assurance processes involved performing procedures to obtain evidence about the reliability of specified performance information. The nature, timing and extent of procedures selected were based on our professional judgement, including the assessment of the risks of material misstatement of the performance indicators; the steps are outlined below: • Assessment of SCL’s reporting procedures for sustainability reporting regarding their consistency with the

reporting criteria;• Verification of systems and procedures used for quantification, collation, and analysis of sustainability

performance data that are included in the Report;• Understanding the appropriateness of various assumptions, estimations and thresholds used by SCL for data

analysis;• Discussions with the key personnel responsible for data compilation;• Verification of sustainability performance data, on sample basis, through site visits undertaken at 4 plant

facilities (out of 10 covered in the Report), namely: (i) Integrated Cement Plant, Beawar (Rajasthan); (ii) Integrated Cement Plant, Ras (Rajasthan); (iii) Grinding Unit, Jobner (Rajasthan) and Grinding Unit, Khushkhera (Rajasthan). The review of information and data for other locations was done during visit to Beawar. The sites visited represented more than 50% of the total GHG emissions covered in scope of the Report.

Appropriate documentary evidence was obtained to support our conclusions on the information and data verified. Where such documentary evidence could not be collected on account of confidentiality of information, our team verified the same at SCL’s plant facilities.

Our conclusionsBased on the scope of our review, our conclusions are outlined below:• Inclusiveness:

We are not aware of any matter that would lead us to conclude that the Company has not applied the principle of inclusivity in engaging with key stakeholder groups. The company transparently disclosed its stakeholder engagement approach and activities in the Sustainability Report. The Company’s engagement with some key stakeholder groups, such as local communities, suppliers, etc., and efforts to address their concerns were evidenced during the assurance process.

• Materiality: Nothing has come to our attention that causes us to believe that any material issue has been excluded from Sustainability Report of the Company. The Company has mapped its material topics as a materiality matrix, which is disclosed in the Sustainability Report.

• Responsiveness: We are not aware of any matter that would lead us to believe that the Company has not applied the responsiveness principle for dealing with stakeholders (such as customers, suppliers, and local communities) on material topics covering its sustainability performance.

• Reliability of sustainability performance information: We reviewed the accuracy and completeness of sustainability information in the Report. Nothing has come to our attention that causes us not to believe that the data has been presented fairly, in material respects, in keeping with the GRI Standards and the Company’s reporting principles and criteria.

ASSURANCE STATEMENT

Our observationsWithout qualifying our Conclusions above, we draw attention to the points stated below:• It is noteworthy that SCL has aligned and reported its data as per the GRI Standards and CSI KPI’s for cement

activities;• In view of the nature of its business, SCL has identified list of topics which are material within and outside the

boundary. The company may monitor and report on disclosures relevant to the material topics outside the boundary in greater detail.

Our assurance and independenceTTC is a professional services firm that specialises in accountability on sustainability issues. The assurance was performed by our multi-disciplinary competent team of experts in AA1000 Assurance Standard, who has extensive experience in conducting independent assurance of environmental, GHG, health, safety, social, economic and ethical data, systems and processes. We have implemented measures to ensure that we follow the applicable independence procedures.

For Thinkthrough Consulting Pvt. Ltd.

Dipankar Ghosh, PartnerNew Delhi, India 17th September 2018



COMPANY’SPLANTS & MARKETING

OFFICESINTEGRATED CEMENT PLANTS AND POWER PLANTS

SPLIT GRINDING UNITS

MARKETING OFFICES

Beawar:Bangur Nagar, Beawar – 305901Distt: Ajmer, Rajasthan (India)Phone: +91-1462-228101-06Fax:+91-1462-228117/228119Email: [email protected]

Delhi: 122-123, Hans Bhawan1 Bahadur Shah Zafar Marg, New Delhi – 110002Phone: +91-11-23370828, 23379829Fax: +91-1123370499

Jaipur: SB-187, 2nd Floor,Shree Corporate TowerOpp. Rajasthan University, JLN Marg, Jaipur – 302015Phone: +91-141-6611200Fax: +91-141-6611219

Shree Ultra Cement

Khushkhera:Plot No. SP 3-II, A-1, RIICO Industrial Area, Khushkera (Bhiwadi), Distt: Alwar, Rajasthan

Laksar (Roorkee):Akbarpur-Oud, Distt.:Haridwar, Uttarkhand

Bulandshahr:12, Sikandrabad Industrial Area, Sikandrabad, Distt.: Bulandshahr, Uttar Pradesh

Ras: Bangur City, Ras, Tehsil: Jaitaran – 306 107Distt: Pali, Rajasthan (India)Phone: +91-1462-228101-06Fax: +91-1461-2281117/228119Email:[email protected]

Delhi:6B, 6th Floor, Hansalaya Building, 15, Barakhamba Road, New Delhi – 110001Phone: +91-11-23702794-95

Jaipur:SB-187, 3rd Floor, Shree Corporate TowerOpp. Rajasthan University, JLN Marg, Jaipur – 302 015Phone: +91-141-6611000, 6611322Fax: +91-141-6611315

Bangur Cement

Jobner (Jaipur):Mahela-Jobner Road, Village: Aslapur,Distt.:Jaipur, Rajasthan

Panipat:Village – Khukhrarna, P.O. – Asan Kalan, Tehsil – Madlouda, Distt.: Panipat, Haryana

Raipur: Village Khapradih,Tehsil-Simga,Distt: Balodabazar,Chhattisgarh (India)Phone: +91-771-2430007/2430023

Delhi:10-A, DCM Building, 16-Barakhamba Road Connaught Place, New Delhi – 110001Phone: +91-11-23731084-85Fax:+91-11-23731084

Jaipur:SB-187, 4th Floor,Shree Corporate TowerOpp.Rajasthan University, JLN Marg, Jaipur – 302 015Phone: +91-141-6611000Fax: +91-141-6611421

Rockstrong Cement

Suratgarh:Near N.H. 15,Udaipur Udasar, Tehsil: Suratgarh, Distt.: Sriganganagar, Rajasthan

Aurangabad:Industrial Growth Centre, Biada, Near Jasoia More, Post: Mojurahi, Distt.: Aurangabad, Bihar

FEEDBACK

1. Quality of content covered in the reportA. ExcellentB. GoodC. LowD. Poor

2. Clarity of information presented in the reportA. ExcellentB. GoodC. LowD. Poor

3. Quality of design of the reportA. ExcellentB. GoodC. LowD. Poor

4. What additional information would you like to see in our future reports?

5. Any other suggestions or areas of improvements?

Kindly provide your contact information for further correspondence:Name :Designation :Organization :Contact Address :

Your feedback is important for continuously improving our sustainability performance reporting. A few valuable comments could help us align our next year’s report with your expectations

COMPANY’S PLANTS & MARKETING OFFICES

PLEASE EMAIL YOUR FEEDBACK TO:Rakesh Bhargava

Chief Climate and Sustainability OfficerShree Cement Limited

Bangur Nagar, Post Box No. 33,Beawar – 305 901, Dist. Ajmer, Rajasthan, India

Email: [email protected]


NOTES

Registered Office:Bangur Nagar, Beawar – 305 901,District-Ajmer, Rajasthan.Phone: (+91) 1462-228101-06 Fax: (+91) 1462-228117/228119 Toll Free: 1800 180 6003/6004

Corporate Office:21 Strand Road, Kolkata – 700001, West Bengal.Phone: (+91) 33-223-0601-04Fax: (+91) 33-22434226

Documents

EMBEDDING HARMONIOUS GROWTH · mindset. At Shree Cement Ltd., we are progressively committed in embedding a sustainable approach leading to harmonious growth in all our end-to-end