Sustainability - Aditya Birla Nuvo · About this Sustainability Report This is the first sustainability report of Aditya Birla Group – Chemicals, Fertilizers and Insulators (CFI)

Sustainability Report 20

15-16

Redefining the presentinnovating for a sustainable future

ChemicalsFertilizersInsulators

Our VisionTo be a premium global conglomerate, with a clear focus on each of the businesses.

Our MissionTo deliver superior value to our customers, shareholders, employees and society at large.

Our ValuesIntegrity: Honesty in every action

Commitment: Deliver on the promise

Passion: Energized action

Seamlessness: Boundary less in letter and spirit

Speed: One step always ahead

About this Sustainability ReportThis is the first sustainability report of Aditya Birla Group – Chemicals, Fertilizers and Insulators (CFI) business. The reporting period of this report is FY 2015-16. CFI Business intends to publish its sustainability report annually from now on.

The boundary of this report is limited to manufacturing facilities, corporate offices, marketing and sales offices of CFI business. The manufacturing facilities included in this report are: GRCD Nagda, GRCD Renukoot, GRCD Rehla, GRCD Vilayat (CA & Epoxy), IR – Veraval (CA &VFY), ABI Halol, ABI Rishra and IGF Jagdishpur. Manufacturing facilities not included in this report are TANFAC, GRCD Karwar and GRCD Ganjam.

Please contact Mr. Himanshu Nautiyal, Head – Business Excellence, WCM, Sustainability, for queries regarding this report or its contents. Email: [email protected]

In this Report 4 The Vision

6 The Aditya Birla Group: a premium global corporation

8 The Chemicals, Fertilizers and Insulators (CFI) Business

12 Sustainability Framework

15 Creating and sharing value

23 Stakeholder Engagement

28 Responsible Stewardship

29 Creating Sustainable Environment

49 Occupational Health & Safety

55 Our Value Chain

56 Sustainable Infrastructure

57 Our People

63 Social Responsibility

70 Glossary

71 Note from CII-CESD

72 GRI Content Index

Aditya Birla Group - Chemicals, Fertilizers and Insulators4

The Vision

“ “

We recognize the impact of our products on the environment and society and

we continuously strive to minimize it by identifying these threats for CFI Business and

implement solutions to mitigate its effect.

From The Business Head

G4-1

Sustainability Report 2016 5

Amidst a fast growing global polpulation and its increasing affluence, our business continues to expand and the projects based on new opportunities are being scaled up. We have managed to perform well in our operations despite uncertainties such as increase in costs of power, logistics and raw materials that were accompanied by volatility in the demand and supply. The nine units covered in this report have achieved a rise in Net Sales from INR 6600.38 Crore in FY ‘14 to INR 7093.14 Crore in FY ‘16 – a growth of 7.4 %.

As we expand the company’s business, we steadfastly follow a holistic approach to sustainability, at the core of which are our robust governance practices.

This report highlights the efforts made by the CFI business in adopting and implementing sustainabile measures in line with the three pronged ABG sustainability framework – Responsible Stewardship, Stakeholder Engagement and Future Proofing. Supported by strong leadership, we continuously strive to meet our Chairman’s vision of becoming a globally benchmarked sustainable business by 2017.

We acknowledge our Business’ impact on environment and society, and continuously strive to minimize threats while implementing solutions to mitigate adverse impact. Some of the actions initiated by us are:

• Adoption of Enhesa to ensure EHS regulatory compliance across all facilities.

• Conducting GRI-G4 based data collection through Enablon Software.

• Implementing three new modules of enablon – Industrial Hygiene, Chemical Management and Stakeholder Relationship Management

• Partnership with WRI for process benchmarking and setting targets.

• Water risk mapping, conducting study at CFI units and formulating action plans for reduction in water consumption.

• Adoption of good practices advocated by WBCSD such as WASH Pledge; improving drinking water, sanitation and hygiene levels at work place.

• Adoption of targets in line with Science Based Targets Initiative’s Call-to-Action criteria.

We are members of World Business Council of Sustainable Development (WBCSD) which gives us access to global best practices collated and promoted by the Council.

Our Business Units have shown significant results by adopting internationally accepted management systems and following a well targeted approach that has resulted in reduction of our carbon foot print across the value chain; one of the best examples being phase-wise upgradation of membrane of electrolysers to UHDE 6th generation at the Chlor-Alkali unit.

As responsible stewards, we have started sourcing 100 percent requirement of salt under Wash or Super Wash category. This has led to reduction in raw material

consumption, waste generation and energy consumption and extension of life of the membrane.

One of our insulator units has successfully implemented ‘Zero Liquid Discharge’ concept and our fertilizer unit is one of the most energy efficient plants in India. Eco friendly Epoxy materials have been developed at our Research and Development facility.

We have constituted cross functional teams at our units who have identified risks across our value chain and have collated & prioritized them at business level to identify materiality aspects.

While this report’s key focus areas are energy & carbon, water, waste and safety, in the coming years our focus would be on renewable power mix, product/ process Innovation, customer satisfaction, strengthening processes and systems for data management and integrating sustainability philosophy into our core business strategy.

We are in the process of reviewing and aligning our vision, mission and strategies with the 17 Sustainable Development Goals, sustainability’s new lexicon, promoted by United Nations as a common sustainability language. We will continue to strive and unlock opportunities for growth that is responsible and creates positive value for all the stakeholders.

Debu Bhattacharya

BRC Chairman, Chemicals, Fertilizers and Insulators Business

From The Business Head


US$41 billion Corporation

operations in

36 countries

42 nationalities

over

120,000 employees

GLOBAL PRESENCE

• Largest aluminium rolling company.

• One of the three biggest producers of aluminium in Asia

• Largest single location copper smelter

• Largest producer of viscose staple fibre

• No. 1 producer of carbon black

• 4th largest producer of insulators

• 5th largest producer of acrylic fibre

• Among the best energy efficient fertilizer plants

• Largest Indian MNC with Manufacturing operations in the USA

INDIAN PRESENCE

• Top fashion (premium branded apparel) and lifestyle player

• Largest producer in chlor-alkali sector

• Largest manufacturer of linen fibre

• Second largest manufacturer and largest producer of viscose filament yarn.

• Leading player in Life Insurance and Asset Management

• Among top three mobile telephone companies

• Among top two super market chains in retail business

• A leading agri-solution provider

The Aditya Birla Group


India’s largest Chlor-alkali producer

Among the top 5 and a global pioneer in the manufacture of Epoxy Resins

(manufacturing facilities in India, Thailand and Germany)

Among the global top 3 in sodium sulphite and sodium meta bisulphite

The second-largest producer and largest exporter of viscose filament yarn

A Premium Global Organisation The group has been ranked fourth in the world and first in Asia Pacific in the ‘Top Companies for Leaders’ study 2011, conducted by Aon Hewitt, Fortune Magazine and RBL (a strategic HR and leadership Advisory firm). It has topped the

Nielsen’s Corporate Image Monitor 2014-15 and emerged as the number one corporate, the ‘Best in Class’, for the third consecutive year. A large chunk of over 50 per cent of the Group’s revenues flow from its overseas operations.

Metals - Aluminium & Copper

MiningCement - Ultratech

RetailTelecom

Financial Services Textiles

Branded Apparel

Chemicals

Fashion retail

Insulators Agri Business

Carbon Black

World’s fourth largest and India’s largest manufacturer

High performance Porcelain and Composite insulators for

Transmission & Distribution sector

Our Insulators run electricity through 70 countries

A premier agri solutions provider, offering a full range of agri inputs – urea, customized fertilizers, seeds,

agrochemicals and specialties, and agri services from sowing to

harvesting

Six-sigma principles in agriculture

Our products reach over 40 million farmers in the Indo-Gangetic plais

from Punjab to Bengal and help them reap a rich harvest

Beyond BusinessThe Aditya Birla Group believes that business growth should be an inclusive growth taking into account the impact on society and environment:

• Reach out annually to 7 million people in 3,000 villages in India through the Aditya Birla Centre for Community Initiatives and Rural Development, spearheaded by Mrs. Rajashree Birla.

• Focus on: health-care, education, sustainable livelihood, infrastructure and espousing social reform.

• Run 42 schools which provide quality education to 45,000 children. Of these 18,000 students belong to the underprivileged segment. Merit Scholarships are given to an additional 12,000 children from the interiors.

• 18 hospitals tend to more than a million villagers.

• Ongoing education, healthcare and sustainable livelihood projects in Philippines, Thailand, Indonesia, Egypt, Korea and Brazil, lift thousands of people out of poverty.

• Set up the Aditya Birla India Centre at the London Business School.

The Group

G4-3; G4-5; G4-6; G4-7


The CFI BusinessUS$1.6

billion Business

over

1000 products

18 manufacturing

locations across 5 countries

Exports to more than

40 countries

Chemical Fertilizers & Insulators (CFI) Business is owned by the Aditya Birla Group. Chlor-Alkali, Fertilizers and Insulators are the main sectors which CFI caters to. This also includes Specialty Chemicals, Epoxy Resin and

Viscose Filament Yarn manufacture which address the needs of manufacturing, agricultural sector and power industry by providing diverse products and applications. During the reporting year Aditya Birla Chemicals (India)

Ltd. (ABCIL) merged into Grasim Industries.

Market leader in Chlor-Alkali Segment

in India

Amongst the world’s top players in

Sulphites

Among top energy efficient global Fertilizer plants

Leading global player in Food phosphates

Fourth largest Insulator player in the

world

World’s leading specialty Peroxide

player

Among top 5 global Epoxy players

Most advanced VFY technology


Chemicals

Chlor-Alkali

Chlor-alkali plants manufacture a wide range of products that support and fulfil the requirements of industries including aluminium processing, pulp and paper manufacture, water purification and in the production of hydrogenated fats. The table below detais out products and their applications:

Caustic Soda Lye & flakesAlumina refineries, paper and pulp industries, manufacture of soaps and detergents, viscose fiber production and zeolite

ChlorineSodium hypochlorite, calcium hypochlorite, poly vinyl chloride, isocyanates, polycarbonate and chloromethanes epichlorohydrin, polyaluminium chloride, and chlorinated paraffin for water treatment

Hydrogen Used as fuel, hydrogenation and fuel cell

Hydrochloric acid

Food grade hydrochloric acid finds use in the production of food ingredients, food additives and in the sugar and brewery industries

Industrial grade finds application in metal pickling, latex coagulation, dyestuffs, leather treatment, petroleum refining, galvanizing and water treatment

Sodium hypho chlorideSterilizer, oxidizer and decoloring agent, and also acts as a germicide, fungicide and deodorant. The chemical is used as a bleaching agent for rayon pulp, paper and fabrics; as household bleach for fly control; and for industrial water treatment and pool chlorination

Chlorine production has been growing in line with the growth of caustic soda manufacturing but the growth of the chlorine-based downstream industries is relatively slow. The demand of chlorine in India is comparatively less than caustic soda.

Globally major portion of the chlorine finds its way to the end-users, especially manufacturers of PVC. But in India the local market for the end user is still not developed. Though Indian companies have excess chlorine, they can‘t export because Chlorine is listed as a toxic and hazardous substance banned for trans-national transportation under the Basel Convention on hazardous wastes.

Chlorine utilization across Chlor-Alkali Units

Chlorine derivatives - 25 %

Pipeline distribution - 20%

Merchant sales through tonners - 55 %

Keeping the above in mind, CFI started production of Value Added Products [VAP] to realize better margins. We reduced movement through tonners and developed new products and increased chlorine transportation through pipelines. This eliminated storage and transportation of chlorine, which is considered hazardous. Five out of six plants of CFI have VAP production at their facilities.

In addition, products like PAC are widely used in drinking water treatment all over India thereby improving the drinking water quality. In fact Grasim Industry has played a major role in promoting the usage of PAC in drinking water. Products like SBP are used as disinfectants in water treatment and improve overall hygiene conditions. Usage of SBP in Simhasth Kumbh mela was also to create awareness about hygiene and how Grasim Industry is contributing to it.

CFI Business

“

“

Being a Chemical company, we must be the most efficient users of raw materials and energy, and never lose focus on continuously improving our safety, health, and environmental performance.

- E R Raj Narayanan

Group Executive President, SBU Head - Chlor Alkali & VFY, Chemicals Business,

Aditya Birla Group

G4-13; G4-EN11


Indo Gulf, the agri input business of Aditya Birla Nuvo, manufactures and markets urea, agricultural seeds and agrochemicals. Indo Gulf Fertilizers is the 8th largest urea manufacturer in India. The goal of the business is to become a ‘total agri solutions provider’ offering a full range of agri inputs - fertilizers, seeds, agrochemicals and specialties from sowing to harvesting.

Epoxy Resins@

Grasim Industries limited (Epoxy Div), Vilayat started production in 2013 and manufactures epoxy resins in liquid, solid, solutions, blends and multifunctional forms, and markets these under the ‘Epotec’ brand. Epoxy Resin, a performance polymer, is a versatile resin which finds application in adhesive, civil engineering, composites, casting and encapsulation of electrical components, and coating including protective, marine floor, powder, can and coil.

A pioneer manufacturer of Epoxy resins in India, the Company attributes its success to its specialized Epoxy System and complete in-house Research and Development Centers at 3 locations globally.

Viscose Filament YarnThe Viscose Filament Yarn (VFY) unit, Indian Rayon, is a major player in the Indian VFY business. The unit, a part of Aditya Birla Nuvo, enjoys a 38 per cent domestic market share, thus making it the second largest producer of VFY in India.

Indian Rayon (IR) produces a complete range of cellulosic 100% natural viscose filament yarns, produced from rayon grade wood pulp. The yarn is high on softness and comfort (close to cotton) and has excellent lustre, colour brilliance (akin to silk), thus imparting drape and fluidity to the fabrics it makes. As an extremely versatile and easily blendable yarn, VFY is widely used in apparel, home textiles, dress material, knitted garments and medical textiles.

IR under the brand name of “RAY ONE” – Quality the World Prefers, has carved a niche for itself with its high quality bright yarn and a wide range of vibrant colors. IR’s license acquisition of the world renowned “ENKA” brand ensures global quality and performance to Indian Textile Market in super fine segment. With the coming together of the superfine range from ENKA, upgradation of process, product and customer focus particularly reaching out to the end consumer, IR is strategically rebranding products and services under Raysil – The fashion yarn.

CFI Business

Fertilizers

Birla Shaktiman Urea - Neem coated and Gold continued to remain the products of first choice for the farmers. Birla Shaktiman enjoys a market leadership position in entire zone of Uttar Pradesh, Bihar, Jharkhand and West Bengal, through excellent product quality and customer servicing. It fulfils aspirations of millions of farmers who reap a rich harvest of crops.

“

“

Fertilizers business is channelizing its efforts towards energy efficiency, domestic effluent utilization and production of improved

and eco-friendly urea.

- Rahul Kohli

Chief Executive Officer - Fertilizers Business, Aditya Birla Group

“ “Epoxy business is developing greener products such as

petrochemicals free products, water based epoxy coatings and BPA free

epoxy for food packaging.

- Pradeep Kumar Dubey

Senior President, SBU Head - Epoxy, Chemicals Business,

Aditya Birla Group

G4-8

@ GRCD-Vilayat (Epoxy) was started their operation in FY ‘14, thus the low production in FY ‘14.


InsulatorsAditya Birla Insulators, India’s largest manufacturer of high-performance insulators, has leveraged the power of reliability, to provide world-class insulating solutions to the power industry. The plants are equipped with new-age equipment to deliver precision and quality. The production line is backed by a team of professionals and engineers armed with latest technologies from across the world.

Aditya Birla Insulators is the country’s largest, and the world’s fourth largest manufacturer of electrical insulators with product portfolio including hollow, solid core, disc, pin, post insulators, finding applications in substation equipment and in transmission systems.

Over the years Aditya Birla group has manufactured custom-made insulators for the power industry to fulfill their needs to address pollution, climatic condition, mechanical strength and other qualities.

The major products of Aditya Birla Group Insulators are:

Substation, Traction, Line Post Insulators:

• Soilid Core Station Post Insulators

• Long rod insulators

• Traction insulators for railway electrification

• Apparatus porcelain insulators

• Solid core line post insulators

Transmission Insulators:

• Suspension disc insulators

• Pin insulators

• Multi cone post insulators

CFI Business

Manufacturing Units

IR-Veraval (CA)

Chemical Units

Insulator Units

Fertilizer Units

Chlor-alkali UnitViscose Filament UnitEpoxy Unit

Fluorine Chemicals Unit

GRCD-NagdaGRCD-Renukoot

GRCD-Rehla

GRCD-Ganjam*

IGF

ABI-Halol

ABI-RishaGRCD-Vilayat (CA)

GRCD-Karwar*

TANFAC*

GRCD-Vilayat (Epoxy)IR-Veraval (VFY)

* GRCD-Karwar, GRCD-Ganjam & TANFAC are not considered in the reporting boundary

“ “Insulators business is working to achieve waste heat recovery, specific material consumption

reduction, dual fuel operation and new product development.

- Rohit Pathak

Chief Executive Officer - Insulators Business, Aditya Birla Group

G4-6; G4-9; G4-17


“

“Sustainability FrameworkWe are improving our business management systems to prepare us for the transformation of our businesses

to a two-degree world.

Tony Henshaw

Chief Sustainability Officer - Group Sustainability Cell, Aditya Birla Group

Aditya Birla Group has devised a sustainability framework for all its businesses. Aditya Birla Group companies are at various stages of sustainability evolution – from Novelis at the tip of the spearhead to some still trying to align themselves with international standards in sustainability. According to the framework, the first step in the sustainability journey is ‘responsible stewardship’ ensuring compliance with laws and rules. Then comes the ‘stakeholder engagement’ stage where companies acquire the ‘ability to understand how fast things will change and where business disruptions will occur.’ And finally, the ‘future-proofing stage,’ where companies stay ahead of major trend curves.

A group sustainability committee is in place, which reviews sustainability performance of all the businesses. Every business in the Group now has a sustainability committee chaired by respective CEOs. A group-wide IT system, ‘Enablon’ has already been rolled out to 200 sites. This system will allow us to initiate and refine sustainability reporting.

The CFI business has developed a roadmap aligned with the group sustainability framework. The framework consists of policies, technical standards and management standards to be implemented at all corporate offices and operational sites of the group. CFI business has started implementing the technical standards. Stakeholder engagement process has also been established across businesses and targets are being set for identified material aspects.


International Standards today

Best practices today

More demanding legal standards

by 2030

Legal Standards

needed for a sustainable world 2050

Following local laws gives business a relatively large

space to operate in

Operating voluntality to international standards

requires a systematic approach and higher levels of control and performance i .e. a constricted operating

space

Companies operating at best practice levels are normally driven by

visionary leaders

By 2030, to be on the road to a

sustainable planet, businesses will have

to perform beter than ever

By 2050, only the best managed

business with highest performance will be

able to survive

Think about TOMORROW, TODAY!

Responsible StewardshipCreate a framework to move

us towards international standards and mitigate our

impact on externalities

Stakeholder Engagement

Gain knowledge to understand how fast ‘external factors’ will

change and when disruptions will occur as we approach a two

degree sustainable world

Future-proofing including our Supply

ChainModify our strategic

business plan to include additional

mitigation and adaption to changes in

the ‘external factors’

ABG Corporate Team has defined a three pronged approach to achieve the goal of being a sustainable business by 2017 viz-a-viz Responsible Stewardship, Stakeholder Engagement and Future Proofing.

The idea behind developing this model is to achieve our vision, by acting responsibly through frequent engagement with our key stakeholders for identifying the risks and mitigating them, while providing a secure and sustainable supply of our products across the globe.

ABG aspires to be a global leader by being a responsible steward and creating a sustainable business plans for businesses to take advantage from.

Our sustainability initiatives and reporting is bridging the gap between our own business plans and the governments’ growht agenda, also enabling us to make positive contributions to the United Nations’ Sustaibable Development Goals (UN SDGs). By linking our business and sustainability initiatives with the UN SDGs, we are aligning the larger global agendas and principle-based approaches with the reality of data-driven reporting.

Sustainability Framework

Legal Standards


Responsible

Stewardship

- Environment & Energy- Health- Safety- Value Chain- Human Rights- Sustainable Infrastructure

- Scenario Planning- Technoloty, R&D and Innovation- Business Expansion and Sustainability

- Stakeholder- Horizon Scanning

Stakeholder

Engagement

Future-proofing

by creating and

sharing value

To achieve the goal of being a sustainable business by 2017, CFI units started their journey towards sustainability in 2014 under the collective umbrella of ABG vision, mission and guidance of ABG sustainability principles. ABG has also adopted ENABLON software which captures data on many indicators in-line with ABG sustainability model at all the units.

At each unit of CFI, a Sustainability Cell has been created and Cross Functional Teams (CFT) have been pooled in to collate the data and disseminate the knowledge and culture of sustainability across employees and stakeholders. A series of awareness sessions on identified topics have been conducted with the CFTs at all the units. Top management also conducts sustainability conferences inviting the top management from units to discuss the way forward on sustainability. Every Tuesday, ABG corporate sustainability team conducts a webinar across all the businesses of ABG to share knowledge on sustainability and best practices.

As a group operating in 34 countries, we wish to move from mandatory legal compliances to international standards and meet global expectations placed on a multinational conglomerate such as ours. We are developing our management systems to include safety, health and sanitation, carbon, pollution and supply chain management. New focus areas include biodiversity, product stewardship, land and human rights management.

Responsible Stewardship

As Responsible Stewards of our planet we have identified the following thrust areas which have the maximum impact on our environment and people around:

• Environment & Energy

• Health

• Safety

• Value Chain

• Human Rights

• Sustainable Infrastructure


Stakeholder Engagement encompasses stakeholder identification and building standardized two-way communications with them to understand their needs and feedback on our products which acts as input into our businesses and gives us a holistic perspective of growth.

Future Proofing

We believe in future proofing our businesses and are committed to taking a strategic approach to managing uncertainty. Our endevour is to be adaptable and agile and develop foresight to ensure that our business models, operations, acquisitions and projects are not locked into unsustainable paths.

Sustainability Framework

G4-14



Creating & sharing valueAwards & AccoladesAwards & recognition are formal endorsements and acknowledgement of the business’ efforts in achieving excellence beyond normal expectations. Our units have been receiving phenomenal recognition from various organizations. ABG also has a recognition mechanism inbuilt in the system that assesses performance of all the units on aspects such as Business Excellence, World Class Manufacturing etc. Our businesses won the following awards during the reporting period:

Asian Confederation of Business

Asian CSR Leadership Award (Indian Rayon) – 2015

Quality Circle Forum of India (QCFI) , Vadodara Chapter

Quality Circle Awards – 2015 and 2016 GRCD Vilayat (Chloro Alkali) – 2015 and 2016Case Study Presenter Award (GRCD Vilayat - Epoxy) – 2016

JACOBS, USA

Joseph J. Master Builder Award (GRCD Vilayat - Epoxy) – 2015

Greentech Foundation

CSR Award for excellence in CSR in chemical sector (GRCD-Rehla) – 2015

FACE (Foundation for Accelerated Community

Empowerment) CSR Award in Gold category (GRCD-Rehla) – 2015

Asian Forum on Corporate Social Responsibility Asian CSR Award (Indian Rayon) – 2016

Institute of Directors

Golden Peacock Award for Sustainable Livelihood Indian Rayon – 2015

ABP-News

Global CSR & Leadership Award (Indo Gulf Fertilizers) – 2015

Aditya Birla Group

Chairman’s WCM Silver Award for Business Excellence (Indian Rayon)

Chairman’s WCM Bronze Award for Business Excellence (Indo Gulf Fertilizers)


Creating and sharing value

Creating Economic ValueIn 2015-16, the Company maintained a steady performance despite witnessing continuous increase in cost of power, logistics and raw material and instability in the demand and supply conditions.

Net sales of Chemicals Business has increased by 14.9% in FY ‘16 from FY ‘15 while net sales of the overall business, including Fertilizers and Insulators businesses, increased by 7.5% in FY ‘16 from FY ‘15.

Direct Economic Value Generated (Rs Crore)

Direct Economic Value Distributed (Rs Crore)

2922

.15

2315

.99

505.

48

3544

.24

2564

.83

547.

34

4045

.20

2503

.90

580.

90

Chemicals Fertilisers Insulators

2013-14 2014-15 2015-16

2134

.04

2353

.51

222.

46

2973

.69

2525

.09

253.

54

3336

.45

2394

.16

248.

59


2013-14 2014-15 2015-16

Payments to Chemicals+ Fertilizers Insulators

FY ‘14 FY ‘15 FY ‘16 FY ‘14 FY ‘15 FY ‘16 FY ‘14 FY ‘15 FY ‘16

Provider of Capital 129.73 124.54 93.38 114.98 107.80 99.02 - - -

Employee 184.12 218.44 248.19 71.43 76.02 83.79 74.87 90.64 104.62

Government 269.99 258.73 283.12 59.69 55.33 75.37 23.28 24.69 27.93

Community Investment 2.90 3.64 6.64 1.05 1.39 2.02 - - -

G4-EC1

+ Chlor-Alkali, VFY and Epoxy

+

+



Direct Economic Value Retained (Rs Crore)

Net Sales (Rs Crore)

Proportion of spending on Suppliers (Rs Crore)

794.

87

-37.

52

283.

02

480.

96

39.7

4

293.

80

555.

26

109.

74

332.

31


2013-14 2014-15 2015-16 28

79.4

5

2315

.99

505.

46

3487

.76

2564

.83

547.

78

4008

.33

2503

.90

580.

91


2013-14 2014-15 2015-16

Procurement PracticesWe do business with suppliers who are competitive and provide optimum long term cost benefit. We work closely with the local suppliers to educate them on the company’s purchase requirements. Our engagement with local suppliers^ varies depending on the quantity, quality and availability of materials required.

There is constant effort to develop reliable local vendors/ contractors within and around the units by providing them technical assistance to avail mutual benefits such as reduced delivery time and cost of imported spares. Awareness sessions on EHS, HR and other social aspects are also regularly conducted for our vendors.

60.5

9%

95.9

3%

90.6

5%

63.3

4%

99.3

4%

90.0

3%

69.17

%

99.3

3%


2013-14 2014-15 2015-16

G4-EC9

^ Our significant locations of operations is spanned across India hence, we have considered our local as India.^^ This analysis excludes GRCD-Renukoot . ABIL-Rishra and FY ‘16 data not considered for ABIL- Halol.

^^

+

+

+



Product PerformanceChlor-Alkali: The Aditya Birla Group is India’s largest Chlor-Alkali producer. Chlor-Alkali production was started by Grasim in 1972 at GRCD-Nagda to produce rayon grade caustic soda for cost effective production of Viscose Staple Fibre (VSF) with an initial capacity of 33000 TPA. Presently, ABG has chlor-alkali facilities in GRCD-Nagda, GRCD-Vilayat (CA), IR-Veraval (CA), GRCD-Renukoot, GRCD-Rehla and GRCD-Karwar*, making it the largest chlor-alkali player in India.

Worldwide there are three chlor-alkali production technologies available – membrane technology, mercury process and diaphragm process. Aditya Birla Chemicals produces chlor-alkali and its speciality chemicals by using membrane technology, the most energy efficient technology.

Chlor-Alkali plants manufacture Caustic soda, Chlorine, Hydrogen, Hydrochloric acid and Sodium hypo chloride. Caustic Soda production increased by 4 % in FY ‘16 from FY ‘13.

Value Added Products: Speciality chemicals production increased by 12.8% between FY ‘13 and FY ‘16. There are seven major value added products namely Chlorinated Paraffin, Polyaluminium chloride(PAC), Stable bleaching powder (SBP), Aluminium chloride, Calcium chloride, Phosphoric acid and Chloro sulphonic acid. 1700 TPD of chlorine was produced in FY ‘16 of which 550 TPD is consumed in VAPs. VAP has grown @ CAGR of 20% which has helped the overall sustainability for Chlor-alkali business in three ways –

• This increased the captive consumption of Chlorine.

• Consequently less of “Merchant sales“ and hence reduced hazard of handling & transportation of chlorine.

• Chlorine realization per MT increased significantly v/s merchant sales.

Chlor-Alkali production of major products (‘000 MT)

Value Added Products (‘000 MT)

633.11

719.19

760.36

2013-14

2014-15

2015-16

74.6

9

28.0

2

135.

23

15.8

1

85.8

4

36.15

148.

60

36.7

2

94.2

1

36.4

5

157.

45

47.2

9

Stable Bleaching Powder

Aluminium Chloride PAC CP

2013-14 2014-15 2015-16

G4-4; G4-9

* GRCD-Karwar, GRCD- Ganjam & TANFAC are not considered in the reporting boundary.



Fertilizers (‘000 MT)

Insulators (‘000 MT)#

Epoxy Production (‘000 MT)

Viscose Filament Yarn Production (‘000 MT)

Fertilizers: Indo Gulf’s state-of-the-art manufacturing facility at Jagdishpur in Uttar Pradesh is considered one of the most energy efficient plants in the country with 0.01 MWh/tonne production of Urea. It’s location at Jagdishpur, in the middle of the agricultural heartland of the Indo-Gangetic plains, gives it access to a large and growing market. The plant is operating at more than 100 per cent capacity utilisation and manufactured 10,21,447 tonnes of urea in 2015-16. Indo Gulf’s markets span the entire Indo-Gangetic plains – from Punjab in North to Odisha in the East. A strong marketing, distribution and customer service network that includes wholesalers’ network, Birla Shaktiman accredited retailers and Birla Shaktiman service centres, helps the company sustain its leadership position. IGF is also venturing into speciality fertilizers, agro-chemicals and seeds.

1033.18 1021.45

1208.07

2013-14 2014-15 2015-16

37.19

38.24

41.87

2013-14 2014-15 2015-16

4.07

29.97

53.75

2013-14 2014-15 2015-16

17.96

19.18

19.84

2013-14 2014-15 2015-16

# ABI- Rishra production data for FY ‘16 is not considered.

G4-8; G4-9



Organizational risks and opportunities related to climate change can be identified both through location specific initiatives and corporate governance level directives. If a risk or opportunity is identified, it is expected that link to climate change also be clearly defined so that appropriate action can be taken by the organization. Matters related to climate change are addressed by making changes in regulations and policies. Climate Change risks have been identified at some of our chemical manufacturing units.

Risks associated with climate change – Water scarcity and water seepage inside the plant are observed as major risks at IR-Veraval plant. As this manufacturing unit falls under water scarce region, efforts and necessary steps have been taken to overcome the issue. Water recycling plant of capacity 1500 metric cube per day has been installed at site. To make use of sea water a study on desalinization plant has also been proposed. The unit has also taken a target of 5% water reduction by 2017. One of the manufacturing facility was continuously facing the challenge in product storage as seepage of water had caused spoilage of product and corrosion of material. To overcome the same, construction of drainage system for storm water has been carried out.

GRCD-Vilayat (CA) unit experienced floods in 2012 which caused huge loss to the company. In order to combat similar circumstances in future, several infrastructural modifications like building huge walls, pits etc. were caried out around the manufacturing facility.

Regulatory risk – With release of schemes like PAT & RPO obligation and emission reduction target, the company faces regulatory risks as well. For complying with these regulations several initiatives have been taken up by our manufacturing plants. Several energy saving and emission reduction targets have been set at manufacturing facilities. Installation of a solar power panel of capacity 50 kW has been proposed at our IR-Veraval unit. Installation of new efficient boilers and turbines has also been proposed.

Other risks – During the reporting year occurrence of certain events caused threat to economic performance. A chlor-alkali manufacturing site at GRCD-Rehla faced huge quantities of product rejection at the customer end as products got spoiled due to leakage of water in the storage facilities. Contamination in raw material from supplier’s side also led to monetary losses. Another such incident was observed at IR-Veraval site that experienced a natural catastrophe which resulted in great loss of property and production. Huge investments were made on changing the technology. As it is a fairly old property and location of the plant is coastal, huge costs incurred in maintenance of the plant. Another major risk observed at IR-Veraval site was contamination of products due to coal dust.

Opportunities to provide new technologies, products or

services to address challenges related to climate change – Scope of reduction of CS2 emission have been identified by adopting new SSY technology in 2012-13.

Creating potential competitive advantage by regulatory

or other technology changes linked to climate change – The proposed adoption of new SSY technology may result in estimated savings of INR 38 Lacks. By achieving targeted savings in water and energy consumption as a result of various energy reduction schemes implemented in 2012-13, a saving of INR 33 Lacks was achieved. Energy efficiency and emission reduction due to proposed boiler and turbine can further result in saving of INR 31 Crore per annum.

Converting Risks to Opportunities

G4-EC2



Financial Assistance from GovernmentOur chemical manufacturing units at GRCD-Nagda, GRCD-Rehla, GRCD-Renukut, and IR-Veraval have received financial assistance from the government in past reporting years in the form of subsidies, benefits in some operations, financial benefits from export credit agencies and tax relief.

Research and DevelopmentNew technology adoption, research and development and innovation are necessary for CFI business. Because customer expectations are increasing, there is tough competition from Chinese producers and the company wishes to explore market presence in new geographies like Canada and South America. Research & development and innovation is required to improve product performance, minimize resource consumption, minimize use of hazardous material, diversify product portfolio and existing product extension.

At CFI we are emphasizing on specialty chemicals, epoxy resins and agro solutions. We are moving away from petrochemicals route by creating green products and reducing VOC exposure by using water based epoxy coatings. Through R&D we are developing new products, specialty products and expanding existing product base.

Financial assistance received from Government (Rs Crore)

6.75

7.72

4.72

2.33

6.03

1.75

5.13

6.95

11.19

2.07

4.00

0.00

Tax Relief / Credits

Subisdies

Financial assistance from Export Credit Agencies (ECAs)

Other financial benefits received or receivable from any government for any operation

2015-16

2014-15

2013-14

G4-EC4



Creating and sharing valueCFI recognizes that effective management of environment impacts is a fundamental responsibility of our business. We strive to integrate sound environmental practices across the Group’s management and governance systems to minimize environmental impacts and attain environmental stewardship. The manufacturing units submit annual Environment statement to the state pollution control board. Monthly data of stack monitoring is recorded along with real time monitoring of the stack emissions that is done by the state pollution control board. Various indicators of the quality of discharge at all our CFI businesses are within the statutory limits.

GRCD-Nagda and GRCD-Rehla have been creating awareness about sustainable practices and conducting audits with checklists on quality management, energy management, environment management and SA 8000 through their vendor and site verification form.

Every Aditya Birla Group Company endeavours to:

• Comply with environmental regulations and appropriate international standards;

• Progressively develop, implement and maintain an internationally accepted environmental management system across our existing operations and at new projects;

• Take initiatives towards efficient use of natural resources and energy; reduce and prevent pollution; and promote waste avoidance and recycling measures in line with internationally practices;

• Enhance environmental awareness through participation and consultation with employees and contractors by training and through effective channels of communication;

• Engage internally and externally with stakeholders to broaden our understanding of environmental priorities, their links to global issues and initiate action on key environmental challenges;

• Influence our contractors and suppliers to adopt the Aditya Birla Group environmental policies, principles and practices and encourage appropriate environmental management across the supply and value chain;

• Continually improve environmental performance of current and future products, services and infrastructure of the Aditya Birla Group’s Companies; and

• Actively communicate and disclose our approach and achievements to stakeholders.

GRCD-Nagda and GRCD-Rehla create awareness

about sustainable practices and conducting audits with checklists on

quality management, energy management,

environment management and SA 8000 through

their vendor and site verification form.




““By 2017, the Aditya Birla Group endeavours to become

the leading Indian conglomerate for sustainable business practices across its global operations, balancing its economic

growth with environmental and societal interests.

Himanshu Nautiyal

Head - Business Excellence, WCM and Sustainability

At CFI business, stakeholder satisfaction is top priority and we value the concern of all our stakeholders associated directly or indirectly with our business. The stakeholder engagement process involves a variety of activities such as stakeholder identification, consultation, prioritization, collaboration and reporting. The approach and frequency of the engagement with the stakeholders vary depending on the stakeholders’ and organisation’s needs and respective departments engage with specific stakeholder groups accordingly.

Identification of all relevant stakeholders and understanding their expectations is of high concern for us in our pursuit to ensure sustainability. We are designing appropriate engagement methods and plans that meet international standards and are tailored to the stakeholders’ needs. We ensure that principles of inclusiveness and transparency are imbibed in all our engagement. We seek to disclose information about the company’s activities in a timely manner to allow for informed and meaningful engagement and aim to resolve stakeholder grievance in a timely and culturally appropriate manner.



Responsible

Stewardship

- Stakeholder- Horizon Scanning

Stakeholder

Engagement

Future-proofing

by creating and

sharing value

Our strategy envisions sustainability by focusing on the issues that are most important to our stakeholders as well as materials which impact the future of our business operations. As a regular practice we engage with our stakeholders in one way or other and inform them about the activities carried out at unit level and also initiatives driven by the corporate. All units lead their their stakeholder engagements and gather feedback. Though some of the engagements at CFI are done as and when required, others are more periodic and structured. At CFI we bring all the stakeholder engagements under sustainability umbrella to replicate the Sustainability model driven by the ABG Corporate. We have more formalized and closed loop stakeholder engagements with our key stakeholders, which prepare us for future challenges, risks and opportunities.

In order to identify our key stakeholders, workshops were held at each of our units. Cross functional teams including top management of the units participated in the stakeholder identification workshops. Key stakeholders were identified including the subgroups and mode of engagement, frequency of engagement and issues to be discussed during the engagement. Engagements are now carried out according to the stakeholder engagement plans at the corporate and unit level.

Employees are one of the most important stakeholder and we engage with them at various levels of the organization. Board members and executive team meet once in a quarter year to discuss the financial health, performance and sustainability of the business. Once a year top management executives engage to discuss infrastructure facilities, people management and profits of units. All employees are engaged during the annual performance review. New employees go through induction training related to employment, values, ethics and integrity. Contractual employees are engaged are engaged once a year to discuss their job, contractual obligations, health & safety. Trade Unions formally engage alteast once in a year to discuss wages and benefits. Union leaders are engaged with on a regular basis. Potential recruits are informed about the company and employment opportunities through campus recruitment

In order to identify our key stakeholders, workshops were held at each of our units.

Cross functional teams including top management of the

units participated in the stakeholder

identification workshops.

G4-25



drives, held annually. Ex-employees are engaged with during exit interviews to provide feedback regarding plant performance and relationship with the group.

Meetings are conducted with existing and potential investors all year round as per requirement to discuss business performance and sustainability. The investors include Financial Institutions / Banks, Mutual Funds / UTI, Central Government / State Government(s), Foreign Institutional Investors and Non-Institutional investors.

We engage with government departments like various state boards, municipal corporations, various departments and offices, as and when required for contracts renewal, payments and meetings related to compliance. We also interact with government departments through industry bodies and open invitations.

We engage with local residents regularly to carry out need assessments for implementing community development initiatives, employment and any environmental issues. We also engage with neighboring industries through open invitations to discuss environmental issues.

In order to know about new technologies and updates on the industry we also engage with academia and scientific community. We engage with university centers by doing research projects, researchers by participating in Tech-fests and students through industrial tours & campus placements.

We engage with NGOs and pressure groups related to human rights & environment through our CSR project meetings to discuss transparency in plant operations, company policies and handling of chemicals.

We engage with Media as and when required for sharing news related to financial performance or any industry incident.

Our customers comprise other industries and sister companies. Meetings are conducted atleast once a year to discuss product quality and timely delivery of material. Our marketing department also receives regular feedback from them.

Distributors are engaged with once in a year to discuss payments and timely delivery of material. Contract meetings are held with transportation agents regularly to discuss payments and safety during transportation. Retailers are engaged atleast once in a year to discuss payments although they provide regular feedback to our marketing department.

Raw materials and ingredients suppliers are engaged during contract discussions and as and when required to discuss payments & quality issues. Third party contractors are engaged as and when required to discuss payments & plant performance.



Materiality AnalysisMateriality Analysis is the identification of and focus on material topics which are of concern to stakeholders and impacts the business environment. These topics then form a basis of what we focus on and consequently what we report on. We identify and prioritize these material topics by engaging internally across businesses as well as externally with key stakeholders. At CFI, we have been engaging our stakeholders in different ways and formalize the same to seek organised feedback. Following steps were taken to identify the material aspects for CFI Business:

DevelopMethodology

Conduct Awareness Sessions

Prepare List of Issues

Identify Material Issues

MemberParticipation

Prioritize Material Aspects

The Sustainability Cell of the CFI business, in order to identify the material topics developed a methodology of stakeholder engagement through risk identification exercise. Material issues were identified,

across the operations internally and perceived external material topics based on the interactions with various stakeholders. CFI conducted exclusive

awareness sessions and workshop on risk identification and its relevance to the CFI business.

At each unit, all the CFT members participated and pointed out issues/risks related to CFI operations on a scale of five (five being highest) and perceived risks to stakeholders due to business operations.

An exhaustive list of issues/risks across all the operations of the units was then formalized in the presence of top management and CFT members with meaningful discussions and considerations.

Material aspects, rated three and above, were identified and documented across CFI business.

G4-18; G4-19



Lack of local suppliers

Environmental Compliance

Water

Freedom of Association

Customer Satisfation

Indirect Economic Impacts

Handling and management of

Chemicals

Financial Assistance from Government

Air Emissions

Supplier Assesments

Economic Performance

Local Communities

Transportation Safety

Occupational Health & Safety

Marketing Communications

Procurement Practices

Structural Stability

Waste Disposal

Energy

Customer Privacy

Obsolete Technology

Caustic Imports

FInancial implications due to climate change

Training & Education

Utilisation of Chlorine

Business intelligence on Products

Manpower Retension

Effluent Disposal

Cur

rent

or

po

tent

ial r

isk

to b

usin

ess

Concerns perceived by stakeholders

Low Medium High

Low

M

ediu

m

Hig

h

Materiality Matrix

We trust this approach leads to greater credibility and a more informed audience. We shall modify the approach and bring in external inputs by formalizing the stakeholder engagements. The analysis was instrumental in the development of the plan and links directly to our choice of goals and strategies. We plan to revisit our materiality analysis regularly to ensure that our efforts remain aligned with what is most important to our business and our stakeholders.

GRI established these guidelines to identify a core set of material issues for inclusion in sustainability reports, and to create a framework that reflects diverse stakeholders’ perspectives and is harmonized across various

internationally accepted standards. The analysis below provides you a graphical representation of the materiality aspects across all the units together. Based on the risk rating provided during the collections of the inputs from each unit, we have considered the important issues for both, stakeholders and business. In this report we have addressed all the material aspects which come under low to high. Topics are discussed and action plans are identified against most of the material issues.

All material aspects identified within or outside the organization cover all the units of CFI business that are part of reporting boundary.




Responsible

Stewardship

Stakeholder

Engagement

Future-proofing

by creating and

sharing value

- Environment & Energy- Health- Safety- Value Chain- Human Rights- Sustainable Infrastructure

CFI Business is committed to protecting the environment and adopts new upcoming technologies and various initiatives to minimize carbon footprint and waste generation. Some of the best methods comprise internally using its own by-product hydrogen as fuel and to power telecom towers. Other initiatives for energy reduction involve installation of VFDs, retrofitting, redesign processes and installation of energy efficient equipment. CFI is working towards natural resource management by water conservation through sewage treatment and rainwater harvesting measures. All CFI units are certified with ISO 14001: Environmental Management Systems and unit have adequate policies, procedures to measure, record and report environmental and social impacts.



Creating Sustainable EnvironmentEnergy & Energy Efficiency

Sustainable Development Goal - 7

Ensure access to affordable, reliable, sustainable and modern energy for all

Aditya Birla Group CFI Business Initiatives towards the global goal to ensure access to

affordable, reliable, sustainable and modern energy for all:

• Adopted membrane cell process for manufacturing Chlor-Alkali in the most environment-friendly way possible.

• Run one of the most energy efficient plants in the country for manufacturing urea with 0.01 MWh/tonne production of Urea at state-of-the-art manufacturing facility at Jagdishpur in Uttar Pradesh.

• Set up a green field project at GRCD-Vilayat in FY ‘14 with energy efficient technologies and green solutions making this unit the least specific energy consuming unit with 10.97 GJ/MT in FY ‘16.

• With Captive power production of 12.97 GJ/MWh, GRCD-Renukoot has best specific energy consumption for power production among all the units.

• Innovative initiatives and technological upgradation at our oldest Chlor-Alkali unit, GRCD-Nagda led to significant energy savings – 26977 GJ and 11628 GJ in FY ‘14 and FY ‘15 respectively.

• Technological up gradation led to 20% reduction in specific auxiliary energy consumption at GRCD-Renukoot for the period November 2013 to March 2015.

• Process redesign and conversion & retrofitting of equipment led to decrease in cumulative consumption of energy across CFI business by 3.35% in FY ‘16 as compared to FY ‘14.

• Total Energy Savings by combined CFI business in FY ‘16 is 702.83 TJ.

• The CFI Business aims to achieve 10% reduction in total specific energy consumption by 2020 (base year FY ‘13).

• CFI business also aims to focus on renewable power mix in the coming years.



Chemicals: Chlorine has been manufactured industrially for more than 110 years now. It is an energy intensive process accounting for 80% of total energy consumption for electrolysis process alone.

There are three main technologies for Chlor-Alkali production:

• The membrane cell process

• The diaphragm cell process

• The mercury cell process, being phased out worldwide because of the toxic character of mercury

Membrane cell process consumes least energy of the three processes and the steam amount needed for concentration of caustic is relatively less. Our group adopted membrane cell process and manufactures Chlor-Alkali in the most environment-friendly way possible. Managing and reducing energy consumption helps in mitigating climate change and enhancing corporate credibility. The primary objective of energy management is to achieve and maintain optimum energy procurement and utilization throughout the organization which helps in minimizing energy costs and mitigating adverse environmental impact.

Fertilizers: The chemical and petrochemical sector is the largest industrial energy consumer. Ammonia production is responsible for about 17% of the energy consumed in this sector. In 2004, the ammonia manufacturing industry consumed 5.6 EJ+ of fossil fuels, of which 2.7 EJ was for energy and 2.9 EJ for feedstock use. Although the energy use per tonne of ammonia has decreased by 30% over the last thirty years, adopting best available technologies (BAT) worldwide can further reduce energy use by 20-25% and decrease greenhouse gas emissions by 30%. IGF’s state-of-the-art manufacturing facility at Jagdishpur in

Uttar Pradesh is considered one of the most energy efficient plants in the country with 0.01 MWh/tonne production of Urea. Its location at Jagdishpur, in the middle of the agricultural heartland of the Indo-Gangetic plains, gives it access to a large and growing market. The plant is operating at more than 100 per cent capacity utilisation.

Insulators: Insulators used for high-voltage power transmission are made from glass, porcelain or composite polymer materials. Porcelain insulators are made from clay, quartz or alumina and feldspar, and are covered with a smooth glaze to shed water. The manufacturing process for electrical porcelain insulators needs drying of extruded cylindrical bodies to shape the body and firing & glazing the body. Heat and mass transfer limitations control the drying rate below the critical moisture content. These processes involve a trade off between time energy usage and product quality.

Total energy consumption (TJ)

2220

8.75

2427

1.89

1097

.40

671.4

9

27.8

1

2412

9.82

2288

3.39

1212

.10

671.8

6

131.6

2

2524

1.97

2651

2.09

1252

.90

777.

94

184.

93

CA Fertilizers VFY Insulators Epoxy

2013-14 2014-15 2015-16

The cumulative consumption of specific energy across the Chemicals, Fertilizers

and Insulators business for FY ‘16 decreased by 7.96% from FY ‘14.

Under Perform Achieve and Trade scheme of Bureau of Energy Efficiency [BEE], monitoring & verification has been carried out for 4 units as part of first PAT cycle. The business achieved 33419 e-certs while reducing the emissions of CO2 by 388407 tonnes. The increase in the total energy consumption is due to increase in total production. However, the specific energy consumption across Chemicals, Fertilizers and Insulators business for FY ‘16 decreased by 7.96% from FY ‘14.

+ Exajoule 1 EJ = 1018 J.

G4-EN3



In order to curtail the energy consumption and decrease carbon emissions, CFI took up various best available technologies and carried out various projects which are driven by senior management .The initiatives to reduce energy consumption and GHG emissions are categorized in to process redesign and conversion & retrofitting of equipment.

During FY ‘14, electrolytic cells have undergone energy efficient retrofitting across the plants resulting in energy savings. The number of projects undertaken in our CFI business and the resulting energy savings is listed in the below table.

FY ‘14 FY ‘15 FY ‘16

Energy Efficient Initiatives No of projects Energy Savings

(in TJ) No of projects Energy Savings (in TJ) No of projects Energy Savings

(in TJ)

Process redesign 9 40.20 18 16.06 3 25.77

Conversion and retrofitting of equipment

6 25.13 11 601.79 13 677.06

Total 15 65.33 29 617.86 33 702.83

Chlor-Alkali unit at our GRCD-Vilayat is a green field project which started production in FY ‘14. This unit integrated energy-efficiency and other sustcainability aspects before commencing production by adoption of sustainable practices like selection of energy efficient technologies and green solutions. This adoption made GRCD-Vilayat CA unit in achieving least total specific energy consumption (11.91 GJ/MT ) for production in FY ‘15.

Total specific energy consumption FY ‘14 FY ‘15 FY ‘16 Target 2020

Chlor-Alkali (GJ/tonne of Caustic) 13.10 12.73 12.30

10% reduction from Base FY ‘13 for total CFI

Business

Fertilizers (GJ/tonne of Urea) 23.49 22.40 21.95

Insulators (GJ/tonne of Insulators) 15.16 14.86 15.90

Epoxy (GJ/tonne of Epoxy) 5.96 4.39 3.44

VFY (GJ/tonne of VFY) 61.08 63.19 63.15

Total energy savings (TJ)

25.13

601.79 677.06

16.06

25.77

0.00

20.00

40.00

0.00

400.00

800.00

2013-14 2014-15 2015-16

Process redesign Conversion and retrofitting of equipment

40.20

G4-EN5; G4-EN6



Significant decrease in energy consumption in the production has been achieved by the unit during 2013-2015 due to a phase wise upgradation in the Chlor-Alkali manufacturing process –

a) Remembraning of electrolysers

b) Replacing the electrolysers of UHDE 2nd generation electroyser

This resulted in energy saving of 85389 GJ , 26977 GJ and 11628 GJ respectively in FY ‘13, FY ‘14 & FY ‘15.

In Insulator units, high Ceramic Insulator fuel cost for firing process and increase in fuel price in market & high specific fuel consumption of the unit are effecting the following:

• Resource depreciation (Natural Gas) & high emission to atmosphere.

• High production cost Initiative by the unit at Halol

In order to mitigate the issue of high fuel price, ABI-Halol has taken up a project to decrease the fuel and power. Following changes were made

• High density & high thermal conductivity insulation brick lining was replaced with low density and low thermal conductivity, low heat storage ceramic pyroblock module.

• Car design was modified to increase capacity

IGF took up initiatives to increase energy efficiency of Ammonia plant by changing of internals of synthesis gas compressor and turbine, and, modification of CO2 removal by installation of new LP tower resulting in reduced steam consumption. This resulted in energy saving of 301821 GJ and 267725 GJ respectively, during the financial year 2014-15.

Energy Savings at GRCD-Nagda is the oldest Chlor-Alkali unit of CFI

Initiatives at ABI-Halol to decrease the fuel consumption and save power

Technological upgradation at IGF resulted in significant energy savings

Unloading (in MT)

Fuel Consumption (in kscm) SFC Year

Before project 1837.87 1014.13 0.552 FY ‘13

After project587.39 216.81 0.369 FY ‘14

(From Nov-13 to Mar-14)

2294.2 847.96 0.370 FY ‘15



Reduction in specific Auxiliary Energy consumption at Renukoot Chemical Division.

Reduction in specific Auxiliary Energy consumption by 20% from Nov 2013 to Mar 2015, Renukoot Chemical Division was achieved by:

• Decrease in energy Consumption at Cooling Tower by replacing existing cooling water pumps with energy efficient pumps with IE-III & IE-IV motors.

• Energy reduction at Chlorine Compression by installation of VFDs.

• Brine integration and Compressed air integration to mitigate energy losses in the processes.

After implementation of this project, Specific Energy Auxiliary consumption has reduced by 25%. (Average Aux. Consumption for 2013-14 is 212 kWh/Ton & Average Aux. Consumption for 2014-15 166 Kwh/Ton).

EmissionsSustainable Development Goal - 13

Take urgent action to combat climate change and its impacts

Aditya Birla Group CFI Business Initiatives towards the global goal to combat climate

change and its impacts:

• Energy efficient retrofitting of electrolytic cells carried out across the CA plants resulted in energy savings which in turn reduced the scope 1 and scope 2 CO2 emissions

• In FY ’16, IGF & Epoxy units reduced Specific GHG emissions by 10% and 28% respectively (base year FY ’14)

• CFI Business aims to reduce Specific GHG Emissions by 5% in 2020 (base year FY ‘13)

• Strict measures are being taken to not install equipment using ODS and also phase out the existing equipment in a structured manner

GHG Emissions

Across CFI units, GHG emissions are from usage of fossil fuels, natural gas as a direct fuel or consumption of grid energy. We at CFI have recorded data on both scope 1 and scope 2 and are now working with multilateral agencies to capture scope 3 data. At some of the units capturing of Scope 3 emissions has already been piloted with focus on emissions during upstream and downstream transportations.

Total emissions (1000 t GHG)

2639

.16

547.

63

154.

61

90.4

7

3.97

3180

.98

497.

05

168.

67

88.3

1

17.9

9

3406

.65

574.

76

173.

23

104.

70

23.9

8

Chlor-alkali IGF VFY Insulators Epoxy

2013-14 2014-15 2015-16

G4-EN15; G4-EN16



Many initiatives have been taken to reduce energy consumption across CFI business units like electrolytic cells have undergone energy efficient retrofitting across the CA plants that resulted in energy savings which in turn reduced the scope 1 and scope 2 CO2 emissions. Specific GHG emissions reduced by 10% and 28% at IGF and Epoxy units respectively in FY ’16 from the base FY ’14.

Ozone Depleting Substances [ODS]

As defined in Montreal Protocol for ODS elimination in a phase-out manner, CFI units are also following strict measures of not installing equipment using ODS and also phasing the existing equipment in a structured manner. Below are quantities of ODS used as refill for existing equipment##.

Freon R22, R12, R134 A, R 407C are used in air-conditioning systems at some of the locations. Usage of gases like R 134 A, R 407 C with zero ozone depleting potential are replacing gases having ozone depleting potential.

Ozone-depleting substances (Eq. tonnes)

Specific GHG Emissions (tonne GHG/ tonne of major product)

0.66

0.20

0.01

0.59

0.02

0.01

0.70

0.02

0.01

Chlor-alkali Fertilizers Insulators

2013-14 2014-15 2015-16

2.19

0.53

8.61

2.43

0.85

2.17

0.49

8.79

2.31

0.60

2.17

0.48

8.73

2.50

0.45

Chlor-alkali IGF VFY Insulators Epoxy

2013-14 2014-15 2015-16

G4-EN18; G4-EN19; G4-EN20

## ABI-Rishra data is not considered in the calculation of ODS consumed at insulator Units.

Target 2020: 5% reduction from Base FY ‘13 for CFI Business



To enable its GCRD-Vilayat plant to operate at optimal capacity and reduce the transit hazards to dispose chlorine in market, GRCD has invited entrepreneurs to set up CPW plants in close proximity. The nearby CPW ancillaries are taking 60% of Chlorine production. As per mutual agreement, GRCD takes the sniff chlorine gas generated in their process and neutralizes it in Calcium Hypo plant.

The sniff gas which comes out of the ancillary units was being neutralized in Calcium Hypo plant where neutralizing material was solution of Calcium Hydroxide. This material after neutralization (Calcium Hypochlorite) was being transferred in lagoon as it was not a marketable product. For neutralization, nearly 3-3.5 MT of hydrated lime was being used, creating sludge handling

and disposal problem. Also, due to inefficiency of the system and bad condition of absorption towers, the emission of Cl2 from the stack was beyond the set limit of 5mg/Nm3. It had been in operation since the operation of Hg cell plant. After joint discussion it was decided to put Caustic Soda scrubber in the discharge line of the blower through which the gas (mixture of air and Cl2) would pass through this and the traces of Cl2 would be absorbed. This resulted in a little benefit but the operation of Calcium Hypochlorite plant still had the following disadvantages:

• Difficult to manage handling of both liquid and solid effluents

• Involvement of manpower for lime feeding

• High Mechanical maintenance in the various equipment’s

• Mixing of effluent in the drain causing gas nuisance sometimes

• Stack emission out of range

• Daily cleaning of the area required

• 5 Acres of land for lagoon

Conversion project from CA-Hypo to Soda Hypo plant (Neutralizing sniff gas)



Solution: Finally it was decided to stop the operation of Calcium Hypo plant and go for Sodium Hypochlorite plant. The Sodium Hypochlorite plant was commissioned in March 2015 and since then it has been in operation resulting in the following benefits:

1. No draining of end product and the product is now marketable

2. Ease of operation

3. Meeting the norms of PSEB from the stack

4. No suction problem at the CPW end in sniff line

5. No additional use of manpower

6. Reduced maintenance

7. Reduced power consumption in plant operation

8. Neat and clean area of operation

Reduction of Carbon Footprint by adoption of Green Solutions (GRCD-Vilayat)

Sustainability measures implemented by using green energy, solar lighting, LED & Induction type lighting fixtures resulted in reduction in electrical energy consumption thus reducing CO2 emission foot print by 91.487 MT of CO2.

Water

Aditya Birla Group is associated with World Business Council of Sustainable Development (WBCSD) and adopting the good practices advocated by WBCSD such as WASH Pledge. CFI adopts the same at all its units to show its commitment in providing clean safe water, sanitation and workplace for our employees. CFI understands that water is a key resource and needs to be used responsibly with equitable sharing by end users, respecting the diversity of needs. Safety and accessibility of drinking-water are major concerns throughout the world. Health risks may arise from consumption of water contaminated with infectious agents, toxic chemicals, and radiological hazards.

Improving access to safe drinking-water can result in tangible improvements to health. Surface water depletion is one of the major issue due to over exploitation of the water by industries located near the communities, another issue being, decreasing water level and quality due to excessive exploitation of water and effluents discharged by industries without proper treatment to meet the required permissible limits.

In order to decrease our water footprint, consume and conserve an important natural resource like water, we have adopted Water Stewardship Policy.

G4-EC3




Ensure availability and sustainable management of water and sanitation for all

Aditya Birla Group CFI Business Initiatives towards the global goal of availability and

sustainable management of water and sanitation for all:

• Adopted Water Stewardship Policy

• Adopting the good practices advocated by WBCSD such as WASH Pledge

• Water conservation projects are being carried out at all our plants. We are targeting 10% reduction in specific water consumption by 2020 (base year FY ‘13) for our Chlor-Alkali business.

• CFI units have instituted measures to recycle and reuse waste water, harvest rain water, and reduce consumption. They are continuously optimizing water consumption through process modification and adoption of new technologies.

• Waste water treated is increasingly discharged within premises (gardening, toilets, floor cleaning, willet pump cooling) and not outside the units.

• We conduct real-time monitoring of emissions and regularly submit data on quality of discharge as per set legal norms.

• Comprehensive Marine Audit is conducted annually since 2010 at our coastal operations to ensure there is no negative impact on marine life.

• For effective management of effluent and emissions, following systems have been installed at various operations:

• Steam stripping systems

• Deep hydrolyser

• Activated carbon filters

• Neutralization, equalization, ionization process for condensate

• Natural oxidation based sewage treatment system and gas flaring system



WATER STEWARDSHIP POLICY

We recognize that good quality water has strong sustainability and ecosystem service values. Protecting and conserving water resources through excellent water management practices and governance systems

are a priority for the Group and is integral to our commitment towards water stewardship.

Every Aditya Birla Group Company shall endeavor to maintain positive legal compliance to water related laws and regulations, minimize our impact on water resources from operations by measuring and

understanding water use, management and wastewater discharge, reduce freshwater consumption by re-use and recycling water, continually improve performance of water management across the companies’

supply and value chains through effective and economically viable management systems and best practices, Involve our employees and contract workers in water conservation initiatives, Engage with our stakeholders and communities to increase their awareness on the responsible use of water and involve them in protection /regeneration of water resources, communicate on the progress and performance of

water conservation and water management efforts to stakeholders, and monitor, measure and report the performance of water initiatives incompliance with internationally recognized protocols

Water Consumption &

With increasing pressure on natural resources, government norms are getting stricter. Rules like Zero liquid discharge mandate, availability of sewage treatment plant and performance of brine purification system at the Chlor-alkali plants are some of the practices that are followed by all the plants.

GRCD-Nagda has least specific water consumption of 3.09 m3 for per ton of Chlor Alkali production in FY ‘16.

Of the Chlor-Alkali units, IR-Veraval, GRCD-Renukoot & GRCD-Rehla which depend on their Power Plants directly, IR-Veraval consumed least water for power production with 2.13 m3/MWh in FY ‘16.

Action Plan: Water conservation projects are being carried out at all plants. We are targeting 10% reduction in specific water consumption by 2020 (base year FY ‘13) for our Chlor-Alkali business.

G4-EN8

& The primary source of water for IR-Veraval is Hiren Dam in Umreti village situated 20 kms from the plant. As there is no alternative source of water due to its geographic location, IR-veraval is always dependent on Hiren Dam. Since 1999 IR-Veraval is paying penalty to irrigation department for the water withdrawn totaling to INR 80.73 Cr.

Specific Water Consumption (M3/tonne of major product)

6.94

6.79

13.6

6

149.

21

3.12

5.11

5.93

11.77

152.

14

3.48

4.15

5.35

11.37

155.

46

2.55

CA Fertilizers Insulators VFY Epoxy

2013-14 2014-15 2015-16



Water Reused/Recycled ++

% Water Recycled/ Reused FY ‘14 FY ‘15 FY ‘16

Chlor-Alkali + VFY 8.71 10.53 10.07

Fertilizers 51.15 59.98 58.12

Insulators ** 17.56 18.56 21.75

GRCD-Rehla has a policy of `avoid, reduce and reuse’ that governs its business practices. To limit effluents and waste from the chemical complex and curb depletion of the scarce ground water resources of the drought-prone region of Rehla, GRCD has adopted reverse osmosis technology at its Rehla plant. The Rehla plant is a benchmark in low water consumption. Plants have instituted measures to recycle and reuse waste water, harvest rain water, and reduce consumption.

Water requirement for manufacturing of the products and solutions is meet through surface and groundwater sources. GRCD is continuously optimizing water consumption through process modification and adoption of new technologies. Our endeavour to recycle usable water from the effluents after treatment further helps in reducing fresh water consumption. We have also implemented rain water harvesting at our plants, which helps recharge ground water.

Avoid, Reduce and Reuse

Annual water reused/recycled at CFI plants (percentage)

24.67

27.66

28.61

2013-14 2014-15 2015-16

++ GRCD-Renukoot, ABI-Rishra and GRCD-Vilayat(Epoxy) are excluded from the analysis.** Recycled & reused water data for FY15 & FY 16 of ABI- Rishra is excluded from analysis.

G4-EN10



Reduction in specific water consumption by 10 percent from baseline year 2013-14 (GRCD-Renukoot)The GCRD-Renukoot unit has adopted a sustainability road map targeting to reduce specific fresh water consumption by 10% over base Line year (2013-14) and to meet global standards by 2017.

To achieve this, a study was carried out for water conservation in different areas and across processes. After studying monthly data of water consumption for last two years, we applied 3R approach as follows:

At the new SBP plant, around 400 m3/ day fresh water was being used in vacuum pump vapour cooling and residual chlorine scrubbing, resulting in generation of same amount of effluent which was being drained in ETP. To reduce this effluent quantity, we have developed sodium hypo absorption system for scrubbing of residual chlorine to produce saleable sodium hypo as a product. In this process, same water which was drained in ETP is controlled and conserved. In turn vacuum system was modified with recirculation of water and stoppage of fresh water. This resulted in saving of 300 m3 fresh water and same amount in reduction of effluent quantity per day.

Reduce

At the Caustic soda plant 380 m3/day of process condensate was being generated due to increase in concentration of caustic soda lye from 32% to 49%. To reuse this water, a heat exchanger was installed to cool down from 80 to 30o C for reuse at the old SBP plant for vacuum pump sealing, which earlier used fresh water. This saved 110 m3 of fresh water, which was earlier used in the process. The saved water was used in primary brine for brine preparation. Similarly, a system was developed to collect and reuse mechanical seal cooling water that was earlier going to ETP. This water was also used for brine circuit make up.

A System was developed to collect DM water used for pumps gland cooling in membrane and CSF plant. Around 100 m3 of this water was used in brine preparation and 80 m3 in cooling towers, thereby reducing around 180 m3 of fresh water use. A facility was developed for collection of steam condensate generated in membrane and CSF plant (around 200 M3) which is being used for steam generation in process boiler. At the old CP plant, a facility was developed for collection of waste water at pumps gland cooling, steam condensate, etc. and is being used for preparation of milk of lime at the hypo plant.

The above initiatives helped reduce 840 M3 fresh water consumption and around 600 M3 liquid effluent generation per day.

Reuse

An action plan is being prepared to re-cycle the effluent of PAC plant and domestic effluent along with RO plant installation for treatment and re-cycling of complete effluent generated during different process to get a Zero Liquid Discharge Unit.

Recycle



Location: Indian Rayon, Veraval

Subject: Water & Wastewater Management

Team: VFY Plant – New Spin Bath Team

Date Implemented: 09/03/2016 to 16/03/2016

Date of Completion: One Week

Project Description:

The condensate of MSFE H1 & H2 heater was mixed with the spin bath heat exchanger & vapor condensate which was acidic, and was used for secondary purposes as floor cleaning; the rest going to the drain. There are total five spin bath heat exchangers with about 75 m3 & H1 & H2

condensate with about 110 m3. The vapor condensate stream separated from the steam condensate stream and checked for uses. It was found that the condensate quality was as good as wash water which was being used at the new after treatment plant in acidic stream. So the 175 m3 of condensate was used as soft water at the plant resulting in water saving.

Challenges:

• To ensure the quality of the condensate and separate the vapor condensate from the steam condensate for use as wash water.

• Process of identification of the project.

• Water availability was less due to water shortage in the reservoir.

• To separate the vapor condensate and steam condensate and to check for any contamination.

• Requirement of the pipe line for transferring the condensate to the user dept.

Project Benefit: 175 m3 water saving per day.

Cost benefit analysis/ Investment Vs. Returns: No new investment, only lines modification.

Return: About 10 lacs/ annum

Potential for replication at other sites, if any: Low temperature condensate can be used as wash water if free from any contamination.

Condensate reuses as wash water in place of Soft water

Received Unit Idea Award



Wastes, Effluents and Product ResponsibilitySustainable Development Goal - 12

Ensure sustainable consumption and production patterns

Aditya Birla Group CFI Business Initiatives ensuring sustainable consumption and production patterns:

• Quality of discharge i.e. pH, TDS, TSS, COD and BOD is within the statutory limits from our chemicals industries.

• Total quantity of discharge by CFI business has decreased by 13% in the reporting year since previous year.

• Bio-Assay Test of treated effluent is carried out every month to monitor the survival rate of fish.

• Comprehensive Marine Audit is carried out to ensure there is no negative impact on marine life.

• For effective management of effluent and emissions following systems are installed at our units: Steam stripping systems, Deep hydrolyser, Activated carbon filters, Neutralization, equalization, ionization process for condensate and Natural oxidation based sewage treatment system and gas flaring system among others.

• Waste water treated in most of our units is discharged within premises for gardening, toilets, floor cleaning, willet pump cooling.

• Metal caps consumption in numbers per tonne of insulators produced has reduced by 4.47% from FY ‘14 to FY ‘16.

• We are targeting 10% reduction in specific raw material consumption by 2020 for our CFI business.

• We continuously strive for sustainable use of the raw materials and also conduct extensive research and development of alternate substances which cause less pollution.

• GRCD-Vilayat (Epoxy) saved more than 1000 ton carbon emission (CO2) through sustainable construction practices.

• Waste segregation of hazardous and non-hazardous wastes is carried out and all the hazardous waste is handed over to the authorized vendors as per the Pollution Control Board norms.

• At IR-Veraval, through modification of Coal Blend at Power Plant and technical upgradation of grinding unit at cement plant, we achieved the required fineness and color of fly ash. In FY ‘16, about 44% of fly ash was supplied to nearby cement plants. In future we are targeting 100% supply of fly ash to cement plants.



The ministry of environment, forest and climate change has launched a major reform in monitoring of emissions and effluents from polluting industries throughout the country.

Effluents discharged from the industries without proper treatment into water sources results in loss of biodiversity due to varying content of COD, BOD. If the effluent discharged doesn’t have pH values within the permissible limit and content of Total dissolved solids (TDS) is not complaint with the norms of discharge, it may affect the health of people who are dependent on the common resources.

The Ministry looking at the future to control discharge of effluents came up with Zero Liquid Discharge (ZLD) guidelines. ZLD were recently introduced for four industrial sectors (textile (wet processing), distilleries, pulp and paper, and tanneries in

India. Since March 2015 when Central Pollution Control Board (CPCB) issued notifications to 9 State Pollution Control Boards along the Ganga basin, a series of notices have been sent to factories asking them to submit action plans for achieving ZLD or face severe penalties (including shut down). The ZLD mandate has helped increase the focus of the industry to water which has traditionally been an under-priced resource. Similar action may be implemented in all the industries that use and discharge water during the manufacturing process.

The quality of discharge by the chemicals industries has been within the statutory limits for pH, TDS, TSS, COD and BOD. The Chlor-alkali plants made good efforts to decrease the quantity of discharge. CFI conducts real time monitoring of emissions and does timely submission of the quality of the discharge as per legal norms.

Treatment of effluent discharge through marine pipeline

One of the major tasks taken up by IR-Veraval is to treat effluent discharge through marine pipeline with diffusion system with sufficient dilution into the deep sea. IR-Veraval is also carrying out Bio-Assay Test of treated effluent every month in-order to monitor the survival rate of fish. The test results indicate that the final treated effluent discharge from the factory at Veraval meets the requirement of Bio-assay test norms i.e. 90% survival of fish after 96 hours in 100% of the treated effluent.

Further, it is carrying out comprehensive Marine Audit annually since 2010. The study clearly indicates that there is no negative impact on marine life. Moreover, the fish production in IR-Veraval has been elevated in these years. The company has also secured Consolidated Consent and Authorization from the Gujarat Pollution Control Board for plant operation and sewage treatment plant as well as the biomedical waste authorization in line with the requirement of biomedical waste rules.

Quantity of discharge (‘000 M3) $$

1130.

76

119.8

9

820.

27

1402

.05

114.9

7

637.

15

1009

.14

212.

37

727.

00

Chlor-alkali units ABIL Units IGF

2013-14 2014-15 2015-16

G4-EN22

$$ GRCD-Renukoot, ABI-Rishra and GRCD-Vilayat(Epoxy) are excluded from the analysis.



Effective management of effuent and emissions

Lower sludge generation at ETP

IGF units with all prerequisites for effective management of effluent and emissions are operating efficiently due to installation of

• Steam stripping systems,

• Deep hydrolyser,

• Activated carbon filters,

• Neutralization, equalization, ionization process for condensate,

• Natural oxidation based sewage treatment system and gas flaring system among others

In Insulators industry during the preparation of filter cake, it is evident that filtrate comprises around 1 to 1.5% in solids which gets directly drained to ETP. Ferro filter, Ball Mill, Vibro screen and sample test are important processes. Cleaning of all these processing equipment generates filtrate with solid content which gets drained to ETP. ETP sludge mainly consists of Alumino Silicates along with organic & inorganic impurities which are all inert in nature. The sludge generated is disposed in land fills provided by Pollution Control Board. Though lower sludge generation at ETP is desirable, processes like blunging, screening, filter pressing unavoidably lead to generation of ETP sludge.

Waste water treated in ETP in Halol unit is discharged within premises (gardening, toilets, floor cleaning, willet pump cooling), but not outside the plant.

Characterization of ETP cake: Physical, Chemical, Rheological, Micro-structural

Process

Designing the body containing ETP cake and lab trials for strength, compression, & warpage etc. to optimize percentage usage, followed by analysis of fired insulator based on ETP body.

SOP preparation including recipe of Ball Mill Charging with ETP cake and all necessary check-points followed by ETP Clay Purification System by putting additional ferro-filters and vibro-sieves.

Establishing separate line for plant trial to eliminate cross contamination and to accommodate variety of products followed by analysis of results and PDCA.

Establishing the ETP body with full scale roll-out.

Recurring tangible benefits that resulted by re-usage of ETP sludge & processed water are

Raw Material: Raw material consumption reduction by 6.6% of RM ration which is 120Mt/month.

Water: Water usage consumption reduction by 300KLD.

Monetory Benefit: Monitory benefit of Rs. 237 lacs/annum consistently from Feb ’14 onwards.

System is designed perfectly in terms of consistency & reliability of output. Entire process is monitored on an hourly basis by process control team in terms of meeting process quality requirement. Shift wise report is generated & circulated to all concerned.

,

,

,



Waste GenerationSome of the major risks identified for waste disposal by the chlor-alkali plants were, space constraint for stocking raw materials, disposal of sludge, management of hazardous and non-hazardous wastes, contamination of soil due to stored hazardous material at ETP by seepage through ground, loss of production/assets/life on account of process hazards, improper chemical handlings, storage and movement of waste

which result in air, water and land pollution and improper handling of the waste.

At CFI, all the units exercise segregation of hazardous and non-hazardous wastes and maintain standard impervious floors in-order to not contaminate soil and water. All the hazardous waste is handed over to authorized vendors as per the Pollution Control Board norms.

Total Waste Generartion (tonne / tonne of Major Product) FY ‘14 FY ‘15 FY ‘16

Chlor-Alkali 0.47 0.41 0.39

Fertilizers Neg Neg Neg

Insulators 0.31 0.30 0.32

VFY 0.60 0.55 0.48

Epoxy - 0.01 0.02

Non-hazardous waste generated (‘000 tonne)

Hazardous waste generated (‘000 tonne)

280.

92

0.03

9.42

10.5

5

0.00

280.

63

0.02

9.54

10.4

6

0.00

279.

07

0.02

10.9

8

9.38

0.00

Chlor-Alkali Fertilizers Insulators VFY Epoxy

2013-14 2014-15 2015-16

15.0

8

0.03

2.29

0.30

0.00

19.3

5

0.20

2.02

0.14

0.36

14.9

6

0.01

2.23

0.15

0.94


2013-14 2014-15 2015-16

G4-EN23



Safe Disposal of Fly Ash


Subject: Fly Ash Management

Team: Materials, Store, Environment & Power Plant

Date Implemented: September, 2015

Date of Completion: Ongoing Practice

Project Description: We have Cogeneration Thermal Power Plant with 34.5 MW capacity. We use blend of Indonesian & South African origin coal & lignite as fuel to fire four boilers. It generates around 110-125 MTPD of fly ash which is collected in Silos.

Challenges: • The fly ash generated was disposed to authorized vendor of

GPCB and we were paying him transport cost, loading and unloading cost and disposal cost. Expenses incurred @ Rs 120 pmt amounted to an annual outoutflow of Rs 66 lacks.

• Modification of coal blend, technical up gradation of grinding unit and ESP.

The process of identification of the project: We have approached the nearby cement industries – Ambuja Cement, Siddhi Cement and UTCL Kovaya – and given them samples. They advised us to maintain the required fineness and color of the fly ash which we successfully did by modifying the coal blend and upgrading the grinding & ESP units of the power plant. Finally the fly ash samples were approved to their satisfaction.

Project Benefits:

• Emission reduction/ waste reduction, societal benefits & generated revenue for company to the tune of Rs 88 lacks/ annum instead of spending of Rs 66 lacks/ annum.

• In FY ‘15 about 95% of fly ash generated was sent for road construction & land filling and only 4% of fly ash was utilized in cement plant.

• In the FY ‘16 about 44% of fly ash was sent to cement plants like UltraTech and Ambuja Cement.

Cost benefit analysis/ Investment Vs. Returns: Generated Revenue for the company to the tune of Rs 88 lacks/ annum instead of spend of Rs 66 lacs/ annum.

Potential for replication at other sites, if any: Yes

Fly Ash utilization (FY ‘15 and FY ‘16)

Road Construction

95%

Brick plant 0% Ash pond &

Enka project 1%

Cement plants 4%

Road Construction

55%

Brick plant 1%

Ash pond & Enka project

0%

Cement plants 44%

Received Kaizen Award, Spot Prize and Recognition from company



Product ResponsibilityThe industry is committed to ensuring safety at all stages of product lifecycles, from production to end-use and disposal. This includes educating end-users on the correct handling of products. Our plants essentially target small and medium enterprises that do not have expertise in safe handling of chlorine. We provide training to them and as well as our distributors.

CFI adheres to all norms and regulations of Central and State Authorities and our products are prioritized and evaluated for potential adverse effects. Subsequently, appropriate personal protective equipment for use when handling the product, and additional technical support for customers, is provided. CFI also provides product-specific information to customers, such as Material Safety Data Sheets (MSDS). The data sheets provide comprehensive product information, including chemical composition, use of personal protective equipment, instructions for safe handling, and environmental and health information.

Our marketing departments provide information and support to customers on the safe and environmentally responsible handling and use of its products. CFI surveys its customers biennially, reviews the results of these surveys, and identifies opportunities to improve products and services. Inputs and feedback is sought during customer visits by CFI personnel.

CFI products transported in drums, tonners, HDPE/LDPE bags, wooden cartons are labeled with product information adhering to national and state laws, trucks and tanks are placarded with appropriate hazard warnings. Hazard information is provided to transporters. During the reporting period, there were no non-compliance issues regarding the marketing or advertising of products, or with health and safety regulations applicable to product labeling. Being industry products there are no mass promotional activities by any of our products except fertilizers which adhere to the applicable advertisement rules.

Chemicals Handling And Management

At CFI, we handle many hazardous chemicals such as chlorine, CS2 & H2SO4 and are covered under Major Accident Hazard Category of applicable rules in India. CFI is committed to comply with all statutory Safety and Environmental requirements and has been operating under statutory consents and clearances stipulated by State Pollution Control Board (SPCB) and Ministry of Environment & Forest (MoEF) respectively. All our units are certified with ISO 90001 (Quality Management Systems), ISO 14001 (Environment Management

Systems) and OHSAS 18001 (Occupational Health & Safety Management Systems). Chemicals are handled and managed as per standard operating procedures adhering to the above management systems. Structured environmental and safety monitoring, integrated management systems and regular audits ensure compliance to all environmental and safety protection laws. Behaviour-based Safety and Process Safety Management was initiated with the help of DuPont in 2012 & 2014 respectively, for chlor-alkali units.

Material ConsumptionAlong with sustainable, ethical and responsible sourcing, we also focus on optimizing consumption of raw materials.

Chlor-Alkali: Major raw material for the production of caustic soda is salt. For value added products raw materials such as aluminum along with in house products chlorine, caustic soda are used.

VFY: Major raw material are pulp, sulphur, zinc, caustic soda and charcoal.

Epoxy: Major raw material used are Bisphenol A (BPA), Epichlorohydrin (ECH), Sodium Hydroxide and Toulene.

Fertilizers: Natural gas is the only raw material for Urea manufacturing.

Insulators: Silica Sand, Soap Stone and Flint Pebble are the major raw materials for insulator manufacturing.

The total consumption of materials have been depicted as raw, associated and packaging materials. Raw materials comprise of above materials, whereas materials used for packaging are materials such as LDPE, HDPE bags, PVC lines, etc.

G4-EN1; G4-PR5



Expenditure On Environmental ProtectionOur CFI units timely submit environment compliance reports to the state pollution control board and relevant authorities. Environment protection is one of our main action point of our business agenda. We took up various initiatives to spread environmental awareness to the local communities and our suppliers. Energy saving achieved by the units created a positive drive at our units. This is reflected in the rise of expenditure for environmental protection by 8% from FY ‘14 to FY ‘16. Chlor-Alkali business units are spending more than 20 Crore on running projects like ‘Zero Liquid Discharge’, usage of super washed salt for caustic production and many more. There have been no monetary fines for non-compliance to environmental laws and regulations.

Environmental protection expenditure (Rs Crore)

23.26

26.58

25.12

2013-14

2014-15

2015-16

Consumed Quantity of Materials (‘000 tonnes)14

30.9

3

106.

17

49.4

6

68.0

8

6.51

1729

.05

102.

41

52.8

3

65.7

7

41.2

6

1653

.95

121.8

5

53.8

6

68.5

4

73.6

3


2013-14 2014-15 2015-16

Consumption of metal caps for capping of insulators and usage of refractory as associated material are other important materials used to produce insulators. Metal caps consumption depends on the size of the insulator. Smaller size insulators require more metal caps. Insulators business is now focused on producing larger insulators as per market demands. This results in the reduction in consumption of metal caps. Between FY ‘14 and FY ‘16 there has been a reduction of around 4.47% in metal caps consumption per tonne of insulators. There has also been a 34% increased usage of Super Washed Salt in place of Normal Salt. This has helped CA business reduce sludge generation, barium carbonate (another raw material for CA).

At CFI, we continuously strive for sustainable use of the raw materials and also conduct extensive research and development of alternate substances which cause less pollution. We have an R&D facility which concentrates on the development of eco-friendly products and identification of sustainable raw materials.

We are targeting 10% reduction in specific raw material consumption by 2020 for our CFI business (base year FY ‘13). We are also planning to strengthen our civil structures since many of the structure are very old and some of the units are located in seismic zone 3.

G4-EN29 ; G4-EN31



Occupational Health and SafetyWe are committed to safety and stewardship of chemicals/chemical

compounds/fertilizers/insulators we produce and materials/products used in our manufacturing units.


Ensure healthy lives and promote well-being for all at all ages

Aditya Birla Group CFI Business initiatives ensuring healthy lives and promoting well-being for all at all ages:

• Pre-employment medical examination and regular health monitoring, training and awareness is carried out for all employees.

• Assessments are carried out at manufacturing sites for evaluation of health risks and safety hazards.

• Periodic screening, testing and health counseling is carried out to identify and control health problems.

• Heath and safety committees have been formulated at two levels – shop floor safety committee and central safety committee.

• 79% reduction in First Aid Cases was observed in 2016 as compare to 2011 at Indian Rayon Veraval.

• Entered into a strategic collaboration with DuPont to implement behaviour based safety as well as process safety across chlor-alkali and viscose filament yarn facilities.

• As part of standardization and uniformity of various processes, 12 Safety standards have been developed.

• Emergency Preparedness plan is in place.

• At chlor-alkali units, drivers are thoroughly trained with safety measures in case of any accidents and leakages of the chemicals.

• Health and Safety topics are covered in formal agreements with trade unions.

• 5% weightage is given to safety performance KRAs in annual appraisal.



At Aditya Birla Group CFI Units, excellence is not confined to high-quality products and services. Safety and health of our employees and customers are also a top priority for the company. We understand the importance of providing a safe working environment for our team.

Chlor-Alkali plants come under hazardous category. Though Chlor-Alkali based products like Caustic Soda, Chlorine & Hydrogen provide great benefits to society, the industry acknowledges the safety hazards involved with Chemical handling.

We have a policy of promoting safe and healthy attitude at work, thereby effectively reducing the number of accidents, injuries and illnesses. We have gone a step ahead of regulatory standards and entered into a strategic collaboration with DuPont to implement behaviour-based safety as well as process safety across chlor-alkali and viscose filament yarn facilities in India and Thailand, catapulting towards a cultural transformation. Our fertilizers and Insulators business has robust internal safety system and is being reviewed periodically by the corporate safety cell.



Hero with Zero

Zero accidents and zero losses is our mantra and displayed at all the CFI units

Our units continuously work to improve equipment design, process control procedures and employee training by adopting best safety practices and procedures. Employees are encouraged to use Personal Protective Equipment and follow industry best practices. Safety culture is imbibed in all the employees. Training and awareness on process safety is conducted by the manufacturing facilities and has been given top priority in the training calendar. All near miss cases are analyzed for root causes and corrective and preventive measures are taken to avoid recurrence. Employees are encouraged to look out for unsafe acts or unsafe conditions.

As part of standardization and uniformity of various processes, 12 safety standards have been developed – personal protective equipment (PPE), Permit to work (PTW), work at height, confined space entry, material handling, hot work, Job Safety Analysis (JSA), Scaffolding, Excavation, Incident Investigation, Contractor Safety Management and Lock out Tag out (LOTO), and, General Rules & Safety Principles.

In the reporting year due to our rigorous efforts on safety of our employees, we could bring down the workforce injury rate by 21 %. However, a marked increase in the injury rate of contractual workers can be attributed to strengthened reporting mechanisms.

Emergency Preparedness plan

In order to prepare for and manage emergencies an emergency/disaster action plan is in place. Regular mock drills and fire drills are conducted and emergency information is displayed at key locations. Self-contained breathing apparatus and airline

respirators are provided for emergency handling at the plant.

Visitor Safety

Visitors’ safety instruction cards are distributed to visitors along with the visitors gate pass and safety helmet. Instructions are also displayed at key locations at the plant. A visitors safety film is is part of visitors’ safety induction.

Health Management of employees is taken quite seriously. We have:

• Full-Fledged OHC with qualified, trained and experienced staff

• Sophisticated equipment to combat medical emergencies

• Advanced Investigation Equipment for earliest detection of deviation of health from normality

Adherence to Factorys’ Acts, OHSAS, ISO, WCM ensures occupational health and safety of not just out employees but the entire value chain. Employees also go through pre employment medical examination. Regular sessions are conducted to promote health awareness. First aid training and awareness sessions on other medical issues are also conducted.

0.46

0.24

0.42

0.27

0.33

0.41

Total Workforce Contract Workers

2013-14 2014-15 2015-16

**

G4-LA6

Injury Rate **

• Calculated as (Total number of injuries/total no of hours worked) x 100,000• GRCD-Vilayat [Epoxy] is not considered in the calculations• ABI – Halol and GRCD – Renukoot data of contractual considered in FY 16. Combined data for permanent &

contractual considered in FY14 & FY15• Combined data both permanent and contractual man power considered for Grasim – Vilayat (CA) in FY16



Transportation safety

CFI manufacturing facilities have various health risks associated with them. Some such risks associated with our manufacturing facilities are air, water and land pollution due to improper handling and storage of chemical waste, emission of dust during handling of barium chloride, risk of bursting of Chemical tanks and safety issues related to hazardous chemical operations.

At chlor-alkali units, drivers are thoroughly trained with safety measures in case of any accidents and leakages of the Chlorine tankers. Drivers are provided with driver’s passport which comprises of all the safety procedures and steps to be taken during emergency.

Chlorine is carried in specially-designed steel containers, cylinders carrying a few kilograms to 9 MT. Dedicated trucks transporting chlorine and hydrogen have been equipped with global positioning systems (GPS). Through this the units ensure that:

• Trucks carrying chemicals do not deviate from a pre-defined, safe route

• Stoppages take place only at the pre-defined halt locations

• Trucks move within the stipulated speed limit

The approach to safety is two-fold: avoidance of accidents and accidental releases of hazardous materials; and mitigating their effects if they do occur.

Extending safety to the end-user

We provide training to our distributors and the small and medium enterprises working with us, on safe handling of the chlorine.

CFI has formulated health and safety committees at two levels. There is a shop floor safety committee at departmental level that comprises 50-60% of employees from workmen and other staff. The Central Safety Committee comprises 50% workmen and 50% management.

Some of our operational units have other safety committees as well:

• Steering committee (Business level)

• Apex Safety Committee (Unit level)

• Six Safety Sub-Committees:

o Safety Observation & Audit Sub-Committee

o Safety Rules & Procedure Sub-Committee

o Incident Investigation Sub-Committee

o Capability & Communication Sub-Committee

o Contract Safety Management Sub-Committee

o Safety Transportation & Distribution Sub-Committee

Operations like chlorine filling, usage of stable bleaching powder, calcium chloride and PAC have severe health problems associated with them. These health hazards include skin diseases, noise and hearing problem, color blindness etc. It is therefore important for us to protect our employees from occupational risks and hazards.

Strengthening of chemical-carrying pipelines and structures is carried out to reduce potential risk of spillage.

Assessments are carried out at manufacturing sites for evaluation of risks and hazards. Associates are trainined on safety procedures for safe operation. Apart from risk assessments and trainings we also provide basic and periodic screening, testing and health counselling to identify and control health issues.

At CFI we make sure that safety topics are covered in formal agreements with trade unions. These topics include information on personal protective equipment, joint management-employee safety committees, participation of worker representatives in health and safety inspections, audits and accident investigations, trainings and education, complaint mechanism, right to refuse unsafe work, periodic inspection and other related health and safety topics.

G4-EN30; G4-LA5; G4-LA7




Team: VFY Team

Date Implemented: 2013 - 2016

Date of Completion: Ongoing


We started working on Behavior-Based Safety Culture Transformation Program to improve work place safety which helped the employees to identify and choose a safe behavior over an unsafe one. The drive spanned four years (Jan 2012-Jan 2016) and the name given to this project was “Safety Culture Transformation” and a logo finalized

with tag line “Be a Hero, with Zero”. The drive is ongoing and continual improvement has been achieved in the last couple of years. The purpose of this project is to build an organization committed to minimized accidents, increased efficiency, increased productivity, increased morale and increased profitability.

Our key deliverables are,

• Safety Observation,

• Incident Investigation system,

• Training,

• Contractor Safety Management,

• Involvement of entire organization

• Management Commitment

Challenges:

• Number of first aid incidents were around 1200 per annum that means 100 first aid cases per month

• Employees believed that safety is the responsibility of management and safety professionals

• It was difficult to implement general safety in work place due to working with a huge work force with different age group, different cultural back ground, influenced by external unions.

• Changing behavior of employees is difficult

• Poor acceptance of Safety Systems by existing heterogeneous staff under union influence.

• Additional budget required to procure new hardware and enhancement in current infrastructure to build a safer and accident-incident proof facility.

• Good quality manpower required to perform safety initiatives implementation and work towards implementation of newly develop safety rules and modified safe working procedures.

Reduction in First Aid IncidentsGreentech Safety Award in Gold Category for three consecutive years (2012, 2013 & 2014)



The process of identification and implementation:

• Surveys done for incident/injury classification showed that around 95% work place injuries are due to unsafe behavior of the employees. This was implemented with the help of M/S DuPont Sustainable Solution (DSS) for the betterment of workplace safety culture at Indian Rayon.

• Safety perception survey was conducted to know about the perception of the employees regarding safety before the implementation of workplace safety culture.

• Trainings like leading safety efforts, safety management fundamentals, incident investigation, emergency crisis management, contractor safety management, job safety analysis and product steward ship were given to employees.

• Implemented the 12 critical safety standards developed by the group.

To transform the workplace safety culture, following activities were undertaken:

• Safety observation

• Contractor Safety Field Audit

• Safety Action Meeting (SAM)

• Job Safety Analysis (JSA)

• Incident investigation

• GAP analysis

• Training

• Six different committees were formed for review and support of workplace safety and for solving critical issues occurring at the workplace. The chairman of each committee is the Functional Head who takes care of the progress and critical issues of his committee. These Functional Heads, report to the APEX committee at Unit level.

• Ran campaigns for near miss awareness, emphasizing on reporting of such incidents.

• Conducted focused safety observation rounds involving key leadership and covering critical topics like usage and compliance of PPE at work.

• Organized special focused safety observation rounds jointly with top leadership and safety department to bring more safety awareness among shop floor employees and to create a culture of visible leadership by line management.

• Safety training efforts extended to non-operational staff such as general safety training awareness session organized for stores and non-technical staff.

Project Benefits:

• 79% reduction in First Aid Cases were observed in 2016 as compare to 2011

• Created a culture that “Every manager, supervisor, team member, and employee is responsible for his/her safety and the safety of anyone else in the area.”

• Top Management to down the line employees believe in “Safety First”

• 5% weightage given to safety in the KRA & Goals of employees and is reviewed in annual appraisal

• Safety statistics considered during the annual variable pay calculation

Potential for replication at other sites, if any: It can be implemented at all our group industries.



Our Value ChainAll units at CFI practice highest level of ethical behaviour with all their stakeholders. Transparency in financial transaction and prosperity of its stakeholders are the hallmarks of CFI’s governance system.

Supplier selection and performance evaluation: Suppliers are our business partners. In order to have a reliable supply we have established structured system for selection/evaluation of suppliers and contractors based on quality and delivery. Requirements of Social Accountability (SA 8000) are also considered along with Quality (ISO 9001), Environment (ISO 14001), Health and Safety (OHSAS 18001) while finalization and approving the suppliers. We share our business strategy, quality plan, social accountability and awareness towards safety & environment during process partners’ meets. Best suppliers service providers are recognized in the meet.

Vendor Development and support: There is constant effort to develop reliable local vendors/ contractors within and around the units. Vendors are educated on business excellence, safe transportation and environment friendly conduct. Service contractors are made aware of different policies of the company. On the job training and technical support is also provided and feedback is sought during vendor meets.

At our Chemical units, we have an established system of conducting customer and vendor meets during which we discuss housekeeping & safety aspects that helps our vendors improve their systems. We regularly conduct awareness programmes on 5S and safety with various contractors associated with our Units. As we handle hazardous chemicals, extensive safety training for handling hazardous chemicals is given to drivers and cleaners.

IGF-Jagdishpur organizes meets and educates farmers and nearby community on safety, environment and hygiene aspects. Vendor registration includes clauses against child labour and any human right violation in vendor premises. Vendors are advised to send supplies in ergonomically designed, safe to operate, environment friendly recyclable packing materials. All our vendors are also required to provide the MSDS, especially for chemicals, catalyst etc.

Manufacturing of porcelain insulator requires various raw materials and our vendors have to comply with the regulatory requirements as per the Ministry of Natural Resources and the Mining Act. Porcelain insulators are made of clay, alumina, feldspar and quartz that are sourced from various mines across the globe depending on the quality required. Metal parts are sourced from approved vendors. The focus is also on developing future competency through enhanced engagement with vendors, customers & educational institutions.

Currently all the units at CFI have standardized vendor management systems in place. Though supplier assessments and vendor evaluations are being done sporadically at our units, we plan to introduce formalised supplier assessments covering aspects of human rights, labour practices, environment, health & safety. We will also strengthen the criteria for the selection of suppliers to adhere to best procurement practices.



Sustainable InfrastructureInfrastructure is the set of structural elements that supports the day-to-day function and influences the direction of human society. Sustainable infrastructure refers to the designing, building, and operating of these structural elements in ways that do not diminish the social, economic and ecological processes required to maintain human equity, diversity, and the functionality of natural systems. At CFI, we are working to make our existing infrastructure more sustainable while planning future green projects.

GRCD-Vilayat (Epoxy): Sustainable Construction Practices

GRCD Villayat (Epoxy) Project is the only green field project of the CFI business. As a group striving for global leadership in sustainability, we have extended that quality and culture in our green field project. We have ingrained sustainable construction practices right at inception through structured Value Engineering and searching for globally most efficient technology solutions. Our focus was on life cycle costing and not on mere initial costs. The plant became an exemplary chemical plant for their innovative solutions and won many awards and accolades.

Achievements:

• Use of AAC Blocks and Modular Tank first time in any project (Chemical Business)

• Cost effective innovative solution for fire / RWP pond (2 earthen pits with RCC Pump house in centre)

• Rack supported warehouse for the first time in the Aditya Birla Group

• In line with our Group Sustainability Vision, promoted sustainable construction practices in projects and saved carbon emission (CO2): More than 1000 Tonne

• Achieved Zero accidents during the project cycle, completing 578 safe days counting 4.72 million safe men

The project made us well aware and introduced us to new methods of sustainable construction. We strive to replicate these practices in future projects, wherever possible.

Use of Copper Slag in Road Sub base

Use of AAC Blocks

G4-12; G4-HR10; G4-SO9; G4-SO10



Our People

CFI continuously engages with its employees through various formal and informal channels to make valuable contribution to human progress. Retaining talent is important for us therefore we give importance to freedom of expression of thoughts and competitive compensation and benefits. HR policies of the company are designed so as to retain talent and lower the attrition rate.

At CFI, employees are categorized into job bands depending on their work experience and skills. We aim to employ and retain best of the industry talent and are successful in doing so


Promote sustained, inclusive and sustainable economic growth, full and productive

employment and decent work for all

Aditya Birla Group CFI Business’ initiatives to promote sustained, inclusive and

sustainable economic growth, full and productive employment and decent work for all:

• CFI provides employment and equal growth opportunities to both men and women

• Various benefits are provided to employees such as life insurance healthcare, disability and invalidity coverage, maternity leave, retirement provision, telephone allowance, provident fund, gratuity, superannuation and medi-claim coverage

• Need-based trainings are provided to employees on technical, functional and behavioural aspects

• 100 percent of managerial level employees and staff at all CFI units receive career and performance development reviews

• Protection of Human Rights issues such as child labour, force/compulsory labour, sexual harassment, discrimination etc., form part of our policies and practices which extend to all the employees, contractual employees and others.

• We are committed not just to international bills, agreements and treaties but also comply with Social Accountability (SA 8000: 2008) standard

• We recognize and respect the rights of employees and their freedom of association and collective bargaining

by engaging continuously with our employees and investing in them through training programmes.

CFI provides employment and equal growth opportunities to both men and women. Similar wages are provided to employees at the same grade. Due to nature of our industry and location of the manufacturing units we receive less female applications therefore the number of female employees is less than male employees. However, we continuously work towards improving the gender ratio.

G4-LA1



We encourage new talent and employ fresh graduates as trainees. In workmen and trainee category most employees fall under the age group of <30, staff and managerial category employees mostly fall in the age group of 30 to 50. ABI-Rishra plant has highest number of employees above 50 years of age.

Due to remote location of our manufacturing units and lack of infrastructure, employee retention becomes a matter of high concern for us. We continuously work towards providing best of amenities and community services to our employees. We

Total Workforce by category in 2016

Total Employees by Age group in 2016 $$

Senior Management - 10 (0.08%)

Middle Management - 195 (1.65%)

Junior Management - 1216 (10.31%)

Staff - 1693 (14.36%)

Workers - 4955 (42.02%)

Trainees - 470 (3.99%)

Retainers - 25

(0.21%)

Consultants - 3 (0.03%)

Fixed Term Employees - 46

(0.39%)

Contract - 3178 (26.95%)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

JB 1/2/3

JB 4/5/6/7/8

JB 9/10/11

Staff

Workers

Trainees

<30 30-50 >50

expect employee turnover rate to decrease in the coming years.

In the analysis we haven’t considered anyone moving across CFI businesses as either new employee or as a turnover. Manpower movement across other business verticals among Aditya Birla Group and outside of ABG has been considered as new employment and included in attrition rate analysis. Human Resource Department for CFI business units is common, hence data shown in this report and analysis provided is integrated.

G4-9; G4-10

$$ Workforce category of Retainers, Consultants, Fixed Term Employees and Contract are not considered in the analysis.



G4-LA2; G4-LA3

Training and Education

We believe in the philosophy of continuous learning & development and sustainability topics form an important part of our training module. We also invite external sustainability leaders to share their expertise and inspire our employees.

At CFI, a three-tier approach for learning and development is followed at group level. ‘Gyanodaya’ programme caters to training needs of top management employees to equip them with functional and behavioural skills. There are also a few programmes for middle management in the programme. Business team addresses the training needs of middle & junior management. For junior management employees, assessments are carried out to identify skill gaps that need to be addressed and traing programmes are designed accordingly. Trainings are conducted for employees at all levels. A large part of these trainings also address sustainability challenges within the country. Some topics covered are those related to behavioral skills, technical/ functional skills, behavioural safety, environment management, IMS and sustainability.

Employee Benefits

The company provides a wide range of benefits to its regular and full-time employees. These benefits are as per the applicable laws and build on the social security benefits provided in the country.

We provide following benefits to our employees: Life insurance, healthcare, disability and invalidity coverage, maternity leave, retirement provision, telephone allowance, provident fund, gratuity, superannuation and medi-claim coverage. However, coverage of these benefits varies in different operational regions and with levels of employment.

CFI provides both male and female employees the benefit of taking parental leave. Six months of maternity leave is provided and paternity leave is being given when parents

adopt a child. 2.43% of female employees have availed maternity leave in FY ‘16.

We keep our employees regularly well informed about operational changes through variety of channels. News related to corporate, business and specific functions is shared with employees through ABG’s ‘Onstream’ portal and also through emails.

Communications related to operational changes are always agreed upon ahead of time by all parties and included as a clause in labor contract. These clauses related to actions to be taken in case of operational changes, may vary from region to region.

Employees hired v/s turnover in 2016

Hired Turnover Hired Turnover Hired Turnover 2013-14 2014-15 2015-16

Trainees 150 217 151 207 86 205 Workers 112 50 58 28 438 77 Staff 228 86 249 209 172 163 Junior Management 231 134 151 111 167 140 Middle Management 30 27 28 28 28 25 Senior Management 3 1 3 2 2 5

0

100

200

300

400

500

600

700

800

900

1000



Learning and development are added to employees’ yearly goal plans. Centre of Excellence (CoE) meetings are held quarterly for capability building for Gyanodaya. CoEs meet to identify relevant matters based on job bands and design corresponding competency programmes. ‘Leaders in Residence’ programme is organized to provide business wise trainings. Gyanodaya also has an OUTREACH programme for specific group of employees/ businesses for a defined need. All business led programmes go through pre-assessment stage where competency needs are identified and a post assessment phase where feedback from the trained employees is taken. Safety related trainings are only conducted at plant level.

Training curriculum is designed specifically to target a specific employment function or category of employees based on their roles and responsibilities. Leadership development and personal effectiveness trainings are given to management cadre employees. ‘My development plan’ is also designed for employees for management cadre. Supervisors and workers

are provided separate training for working at heights, JSA, LOTO/PTW and on-the-job training is provided for materials handling. Shop floor technical people are also trained on safety aspects.

A specialized training curriculum for GRCD-Vilayat (CA) manufacturing unit was designed, comprising cross functional training and technical training for employees of junior management and below level employees. The plant has also identified and imparted unit-specific essential training for all its employees.

At IGF plant need based trainings are provided to the employees on technical, functional and behavioral aspects of manufacturing on yearly basis. General awareness sessions are also held periodically on plant operations.

The marketing division of CFI also conducts trainings to equip customers with knowledge on handling Chlorine. Workshops are also conducted by the Delhi Jal Board on Chlorine handling.

Employee Category FY ‘14 FY ‘15 FY ‘16

Total Training Man days ++

Management 3331.07 3705.42 2947.09

staff 1993.00 2155.01 3520.40

workers 1053.80 1045.41 1480.04

No of Training Man-days per employee

Management 1.64 1.83 2.77

staff 0.80 0.71 2.28

workers 0.18 0.18 0.39

Learning & Development

Global learning platform

(Gyanodaya)

Business units HR(For middle management

employees)

Plant level HR(For junior management employees

- Technical and finctional skill development

G4-LA9

++ GRCD-Renukoot data has not been considered since the data capturing is not in-line with the represented data format.



G4-LA10; G4-LA11

Programmes for Skills Management and Lifelong Learning

At CFI great emphasis is laid on learning and development throughout the employee life cycle. For each manufacturing unit, skills gap assessment is carried out on the basis of which yearly training calendar is prepared. The Company has also designed a ‘Continuous Education Policy’ to further embed learning into its culture.

Internal as well as external training programmes are organized for all the employees based on their area of operation, level and stage of employment. The company provides assistance in the form of pre-retirement planning to intended retirees. Funding support is also provided to employees interested in external training and education.

Performance and Career Development

We believe that effectiveness of Performance Management can only be achieved when both employees and leaders work together. Performance management at CFI is aligned with our employee development strategy. We strive to provide employees the opportunities to improve their performance and effectiveness.

Performance management cycle at CFI is a three step process comprising:

• Goals setting (MDP) at the beginning of the year

• Mid-year review of the goals and targets achieved

• Annual appraisal process

Knowledge/skill transfer form ENKA (Germany)

IR had been making efforts to create its position in product leadership but found itself technologically constrained. Finally, IR zeroed in on world renowned ENKA’s proprietary patented spool technology, which has significant advantage in product quality, environment friendliness and low manpower requirement. This initiative was first of its kind in India and its success was heavily dependent on timely commissioning with desired quality and productivity norms. The programme was divided into 4 phases:

ABG Orientation (12 days):

In First phase all the JTAs were given training in two areas - Firstly on the ABG Essentials (Values, team

building, safety, WCM concepts) & secondly on Indian Rayon Orientation

along with sessions on Basic English Language

knowledge & personality grooming sessions. This

phase was designed and implemented through

internal trainers.

Training at NTTF, Gannavaram (37 days):

The HR Task force deliberated with the Functional experts

and a third party (NTTF) vendor to customize a series of training sessions covering

various areas. The programme was designed keeping in mind

time constraints as well as the essential requirements to groom successful ENKA

machine operators.

Training at Germany plant on ENKA Machines (3 Months):

The biggest challenge was to provide the technical &

operating knowledge to all JTAs. To achieve strategic objectives of

providing technical & operating knowledge to all newly recruited

JTAs for operational excellence, an extensive on-the-job training

programme for three batches over a period of 9 months in

Germany (three months for each batch) was planned & executed. 96 JTAs were trained along with

4 supervisors at ENKA plant in Obernburg, Germany.

On the Job Training in India: In the last phase, further

on-the-job training was conducted for skill honing of

these JTAs on commissioning of first 7 Enka machines at

Veraval Plant through German trainers/our own Germany trained supervisors. By the

time all the 36 machines were commissioned, most of these

JTAs had reached a 100 percent proficiency level.

Result: Successful commissioning that led IR to achieve global benchmark in superfine segments with market leadership position that showed a route to sustainable growth in VFY.



Protecting Human Rights

Aditya Birla Group is a proud member of World Business Council for Sustainable Development (WBCSD) and respects WBCSD initiatives on Human Rights and other relevant legislations. We have incorporated Human Rights issues such as child labour, forced/compulsory labour, sexual harassment, discrimination etc., under related policies and practices which extend to all employees, contractual employees and other partners at all our units.

The company not only commits itself under international bills, agreements and treaties but also complies with Social Accountability (SA 8000: 2008) standard at our GRCD-Rehla, GRCD-Nagda and IR-Veraval units.

We procure raw material from a wide range of suppliers. Ensuring ethical work practices at suppliers’ end is critical for us. To reduce the risk of human rights violation in the supply chain we develop supplier contracts with code of conduct built in them. All our labor supply contracts and work orders have provisions of human rights protection and we ensure the same is followed within our unit boundaries. We are also in the process of strengthening of data collection systems and management procedures to carry human rights reviews and impact assessments at the supplier end.

Though we don’t have dedicated classroom training programmes on human rights, these issues are clubbed with the other HR related training programmes for all levels. Trainings are given through regular awareness sessions, formal training sessions, e-mails and through information boards at the manufacturing facilities.

To ensure healthy and ethical work environment inside our plant boundaries, on-the-job training is provided to the security

Grievance Mechanisms

Any kind of grievance is brought to the supervisor and ultimately unit heads. During the reporting year there were no grievances related to human rights.

Freedom of Association And Collective Bargaining

Some of our units are SA 8000 certified and ensure socially acceptable practices at workplace. As GRCD-Vilayat and ABI-Halol units fall under direct purview of Gujarat Industrial Development Corporation (GIDC), there are no labor unions/associations formed in these units as per the directive of GIDC. All other units have formal labor unions formed and provisions are made to discuss the issues and grievances of these employees through regular discussions and meetings with the plant authorities.

personnel regarding relevant policies and procedures. These trainings mainly include guidance on reporting of processes and plans to prohibit any kind of violence or abuse against employees and contractors. In addition to this, they are also trained to maintain operating discipline and protection of personal information of all our employees and contractors.

We provide a work environment that is free from all of bias such as harassment including sexual harassment, pestering or bullying and any kind of discrimination based on individual differences or prejudices like sex, race, gender, sexual orientation, disability, age ethnic, origin or any other personal characteristics. There have been no reported incidents on Human Rights violation or discrimination at any of the plants during the reporting period.

Setting clear goals and identifying strengths and opportunities is the key for effective leadership. Goals are set in the beginning of the year and formal review of events and goals achieved is done twice every year. These discussions highlight employees’ strengths as well as areas for development. Although the performance management system is not formalized for all categories of employees, performance and career development review is done at all our manufacturing units and corporate office.

100 percent of managerial level employees and staff at all CFI units receive career and performance development reviews. Workers are reviewed informally through discussions.

G4-11; G4-LA16; G4-HR1; G4-HR2; G4-HR3; G4-HR4; G4-HR5; G4-HR6; G4-HR7; G4-HR8; G4-HR12



Social ResponsibilityAditya Birla Group is a responsible organization and believes in giving to community and society where it functions. We realize that that we do not operate in isolation and our business affects and gets effected by systems around it. Therefore, it is important for us to create synergy in such a way that it helps our business and communities around us flourish together.

The company has a CSR Policy at group level. The policy lays down company’s CSR vision statement, prime focus areas, approach to carry out any CSR activity and the implementation process.

CSR Governance structure and areas of impact

Chairperson

Mrs Rajashree Birla

Director

Mr Askaran Agarwala

Group Executive President and CSR permanent inivitee

Dr. (Mrs) Pragnya Ram

Education

Social Activities

Infrastructure Development

Health & Family Welfare

Sustainable Livelihood

Corporate

Social

Responsibility



The company has been working for years in such a manner that wealth and well-being is created in its surrounding. We do so by continuously engaging with the people around us in various ways such as engaging with them for creating awareness about various social and health related aspects, helping in employment development, etc. We continuously make efforts to contribute to the well-being of the communities around us. CFI makes best of efforts to manage its environmental impacts. There have been no significant negative impact on the local communities from any of our operations.

There are five major areas that ABG focuses on under its corporate social responsibility programme at all of its operating locations – Education, Health & family welfare, sustainable livelihood, infrastructure and other social activities.

CSR Aspect Programmes undertaken

Education Pre-school education, school education, education support projects, vocational/technical education projects, school infrastructure projects

Healthcare Preventive healthcare, curative healthcare, reproductive and child healthcare, health support program, health infrastructure

Sustainable livelihoodAgriculture and farm based, animal husbandry based, skill development and alternate livelihood, Natural resource conservation programmes & Non-conventional energy & livelihood infrastructure

Rural infrastructure development

Building roads/culverts/buildings/bus stands, community halls etc.

Social empowermentInstitution building and strengthening, support to development organizations, social security, awareness programmes, social events, promotion heritage/culture/sports, disaster relief programmes

None of our operational sites are adjacent to protected areas or areas of high biodiversity value and neither of our operations affect the biodiversity or IUCN red list species. Due to this we have not taken up any biodiversity restoration projects.

G4-EN11; G4-EN12; G4-EN13; G4-EN14; G4-SO2



G4-EC7

Amount spent on CSR activities between 2013 and 2016 (Rs Crore)

Education - 4.29 (11%)

Health & Family Welfare - 12.75 (33%)

Sustainable Rural Livelihood - 7.07 (19%)

Infrastructural Development - 4.23 (11%)

Social Welfare Issues - 2.57 (7%)

Other Expenses - 6.75 (19%)

Year-wise Spend on CSR initiatives (Rs Crore)

0.88

1.22

2.79

1.85

0.65

1.30

1.28

4.18

2.39

1.34

0.75

5.19

2.13

7.35

1.89

1.05

1.17

0.26

Education Health & Family Welfare Sustainable Rural Livelihood

Infrastructural Development

Social Welfare Issues Other Expenses

2013-14 2014-15 2015-16

Development and impact of Infrastructure Investments

Being a responsible organization, CFI under Rajashree Birla Trust makes financial contribution as well as volunteering efforts towards the well-being of the society it operates in. We try to address all important issues and aspects of community development that require our assistance. In the year 2015-16 CFI contributed a total amount of INR 13.85 Crores towards community development initiatives focusing mainly on

Education, Health and family welfare, sustainable livelihoods, infrastructure development and various other social activities.

A snapshot of investments group made by Aditya Birla Group towards social activities in the past three financial years is shown. Investment figures include contribution of manufacturing unit, Rajashree Birla foundation other grants made by funding agencies.



Unit FY ‘14 FY ‘15 FY ‘16

Education

Schools Nos. 6 9 9

Teachers Nos. 200 225 225

Students Nos. 5968 9182 9396

Education and Trainng Activities (Outside Colony) for Students No. of Beneficiaries 1608 650 1227

Other initiatives to encourage education (eg. Mid-day meal, kitchen construction, utensils etc.) Merit scholarship, educational materials

No. of Beneficiaries 6691 17914 14887

Nos. of Beneficiaries 14467 27971 25735

Health and family welfare

Health Awareness Programs (e.g. HIV, Awareness on helath & hygiene, water borne disease related awareness etc.) No. of Beneficiaries 4740 8652 11988

Awareness & Development Programs (e.g. Seminar on domestic violence act, learners license camp, environment awareness, worker education, wildlife protection etc.)

No. of Beneficiaries 247 1674 1717

IGJST Hospital (OPD) Patients Nos. 102588 101274 101030

IGJST Hospital (IPD) Patients Nos. 3295 2954 90578

Skin Care & Rehabilitation centre Nos. 8628 6088 11638

Health and Medical Facilities No. of Beneficiaries 139894 131816 223367

Nos. of Beneficiaries 259392 252458 440318

Sustainable livelihood program

Animal Husbandry Development Program and Caccination Camp No. of cattle 39082 19276 15136

Support to Widows, Old age and Handicapped People No. of Beneficiaries 316 20 0

Training Women and SHGs No. of Beneficiaries 357 583 626

Agricultural Support and Training No. of Beneficiaries 39217 28932 12154

No. of persons impacted 39890 29535 12780

Infrastructure Development

Village and Community Development Plans (e.g. road construction, street lights, construction of panchayat bhavans etc.) No. of Beneficiaries 2683 3645 1890

Housing for Poor People No. of Houses 55 13 0

Water supply and Water Related Activities No. of Beneficiaries 3276 7253 7432

Sanitation No. of units constructed 37392 28601 11832

No. of beneficiaries 5959 10898 9322

Social activities

Plantation No. of Saplings 43954 39482 19210

Assistance in Organising cultural / spiritual programs and other social welfare activities No. of Beneficiaries 8628 7588 16638

Villages Adopted No. of Villages 85 206 208

Sports Activities No. of Beneficiaries 4337 5301 4969

Snapshot of our Social Performance

G4-EC8; G4-SO1



Location: IGF Jagdishpur

Date Implemented: 2011-16

Duration/Date of completion: Ongoing


Indo Gulf under its CSR activities has established 5 Centres by giving support like tailoring machines, infrastructure, etc. A local trainer is identified who provides 6 months training & monitors order completion. Each centre covers about 4-5 villages and in two batches trains 40-50 girls/women in a year.

The centres were also motivated to make ‘Designer Cloth Bags’ for which necessary training was also provided to the Centre Incharge. The centre Incharge earns Rs.7000-8000 per month as she charges Rs.100 per trainee/month & also takes local order from villages & sale of bags. Nearly 200 trainees pass out from these centres every year.

Women after taking the training start to work either at the centre or from their home by taking local orders & selling handmade bags. Some of them also started to work in tailoring shops & few even opened their own shops. These women easily make monthly earnings of Rs.1500-2000.

Challenges: Identification of trainer & building to run the centre permanently was the biggest challenge faced during the initial phase of the programme. Marketing of the designer cloth bags was also a challenge.

The process of identification of the project: Till 2014-15, Indo Gulf under its CSR was running 3 months tailoring programme which was a temporary setup. The centre neither had tailoring machines nor was the 3 months period sufficient to train the unskilled village women.

A 6 month Franchise Tailoring centre was developed in 2015-2016, where Indo Gulf supported the trainer by giving initial support like machineries, raw materials & other infrastructural support required to run the centre where trained women can sit, work, take orders & earn.

Indo Gulf also helped these centres by providing them an opportunity to sell these bags through exhibitions/ mela’s in its own township & also in the local market. Each centre is making and selling 4-5 bags per day and the trained women also make & sell the bags directly.

Cost benefit analysis / Investment Vs. Returns: The initial support given to each centre was around Rs. 40000-50000 for machinery, infrastructure etc. The 5 centre currently have a turnover of Rs. 2 Lakhs per month. These centres are now self sustained units.

Potential for replication at other sites, if any: The project is a very low cost model. With small investment during the initial phase & a committed trainer/ centre incharge, the project can be replicated at any other site.

Anya- Franchise Tailoring CentreAsian CSR Leadership Award (Oct-2015); Indian Chemical Council CSR Award (Sept-2016);

B.G. Deshmukh CSR Award (Oct-2016)




Subject: CSR

Team: CSR & BAIF Team

Date Implemented: 2011 - 16

Duration: 5 Years


Under CSR, Indian Rayon has started Cattle Development Project for 5 years in collaboration with BAIF for cattle breed improvement with the following main objectives:

• Scientific development of animal husbandry with agriculture

• Breed improvement of cows and buffaloes

• Awareness on animal husbandry

• To apply scientific approach by animal breeders

• To create new generation cows and buffaloes giving more milk

• To solve the problems related animals of animal owners

• To guide the animal owners on establishment of cooperative dairy industries and market arrangement for adequate rate

• Improvement of grazing land and fodder production and effective use of the same

Due to natural insemination with poor quality of bulls, milk production of cattle gradually decreases through inferior quality of breed. It becomes important to improve cattle breed by qualitative insemination which is only possible by artificial insemination of cattle. For this purpose, Jan Seva Trust started a five year project in collaboration with BAIF, a pioneer organization in this field. The project started in t November 2011 with 12 villages & Veraval city.

Challenges: There were challenges like lack of awareness, unwillingness to change, orthodox beliefs and poor result of previous experiences.

The process of identification of the project:

In this geographical area, two major income generation sources are agriculture & animal husbandry. We were already working to increase productivity in the field of agriculture by various activities. Second major source of income is animal husbandry in the area. But milk production was not enough due to inferior quality of breed of cattle. After consultation with surrounding organizations, government institutions & experts, we found that there was need for improvement in the breed of cattle.

Cattle Development Programme



GRCD, Rehla CSR team in association with District Blindness Controlled Society, Palamau, organised a “Free Screening, Medication and surgery Camp” on 26th to 30th December, 2014 at Aditya Chikitsalaya, Rehla.

3214 patients were examined from Palamau & Garhwa districts by organising camps in villages from 16 Dec. to 29th Dec. 2014, and supplied with medicines free of cost during the camp. 1076 out of 3214 patients underwent free cataract surgery at the Aditya Chikitsalaya. Post surgery follow up camp was organized for all patients who had undergone this surgery.

A 10 year old boy of Village Raksaha, Bishrampur, Palamau had lost his vision. On consultation at a private hospital, the doctors advised him a cataract surgery. Since he was a daily labourer he could not go for surgery.

He came to know in 2013 during a village meeting of our CSR programme. The boy was brought to our Aditya Chikitsalaya by our CSR team & examined by a team of expert eye surgeons. He had undergone cataract surgery on 26th December 2014 and after a successful surgery, his vision was restored. When he came in for first follow up on 7th January 2015, he was declared totally fit. Now he is going to school & enjoying his childhood.

Bringing hope for tomorrow: GRCD-Rehla

Project Benefit:

• Improvement of Cattle Breed

• Increased milk production

• More cattle & milk production due to reduction in birth cycle period

• Optimum use of cattle feed

• Improvement in health of cattle

• Overall improvement of cattle breeders’ economy

Cost benefit analysis/ Investment Vs. Returns: Increased cost of cattle by at least 100% & per lactation increase of milk production by 35 to 40%. Total investment for 5 years was 25 Lacks. Considering a cost increase of an animal by Rs. 25000/-, a total gain of Rs. 225 Lacks eas realised by getting 899 improved variety of female cows & buffaloes.

Potential for replication at other sites, if any: Yes, there is enough potential & possibilities to implement these programmes with different villages/ working area.


Glossary

GRCD Grasim Industries Limited (Chemicals Division)

ABG Aditya Birla Group

ABI Aditya Birla Insulators

ABNL Aditya Birla Nuvo Limited

BEE Bureau of Energy Efficiency

BRC Business Review Committee

BOD Biological Oxygen Demand

CA Chlor-Alkali

CDM Clean Development Mechanism

CFI Chemical Fertilizer Insulator

CFT Cross Functional Teams

COD Chemical oxygen Demand

COE Centre of Excellence

CPW Chlorinated Paraffin Wax

CSR Corporate Social Responsibility

DM Demineralized water

ETP Effluent Treatment Plant

GHG Greenhouse Gases

GIDC Gujarat Industrial Development Corporation

GPS Global positioning System

GRCD Grasim Industries Limited (Chemicals Division)

HDPE High Density Poly ethylene

IGF Indo-Gulf Fertilizer

IR Indian Rayon

ISO International Organization for Standardization

IUCN International Union for Conservation of Nature and Natural Resources

JSA Job safety Analysis

LDPE Low Density Poly ethylene

LED Light Emitting Diode

LOTO Lockout Tagout

MDP My Development Plan

MoEFCC Ministry of environment Forest and Climate Change

MSDS Material Safety Data Sheet

MTPA Metric Tonns Per Annum

NVGs National Voluntary Guidelines

ODS Ozone Depleting Substances

OHSAS Occupational Health and Safety standard

PAC Polyaluminium chloride

PAT Performance Achievement and Trade

PTW Permit to work

PVC Poly Vinyl chloride

RO Reverse osmosis

RPO Renewable purchase Obligation

SDGs Sustainable Development Goals

SPCB State Pollution Control Board

TDS Total Dissolved Solids

TREM Transportation Emergency

UNFCCC United Nations Framework for Convention on Climate Change

UNGC United Nations Global Compact

VAP Value added Products

VFD Variable Frequency Device

VFY Viscose Filament Yarn

VSF Viscose Staple Fibre

WASH Water Sanitation & Hygiene

WBCSD World Business Council for Sustainability Development

WRI World Resources Institute

ZLD Zero Liquid discharge


Note from CII-CESDCII was engaged with Chemicals, Insulators and Fertilizers Business Unit of Aditya Birla Group for implementation of their corporate sustainability roadmap and development of internal sustainability report.

CII’s approach in the first phase of engagement was to conduct workshops for roll out of the sustainability roadmap and conduct awareness sessions across the CFI units. Second round of workshops and meetings were held at unit level to identify the stakeholders of all units, map the engagement methods with each and every stakeholder and plug-in the gaps, if any.

Further engagements were conducted with internal stakeholders to identify risks for defining materiality as per GRI G4 guidelines. Materiality has been defined based on the inputs from cross functional teams across various departments of each unit and with the inputs from middle and top managements in order to identify the organization-wide sustainability risks. The identified sustainability risks were internally discussed among top management and CFI sustainability team to further fortify the approach.

In the third phase, each unit was provided GRI G4 data formats which were developed by CII alongwith awareness on how to record the data. Once the data was obtained, CII along with CFI corporate sustainability team has conducted data validation at each site to ensure data provided has backup and there are systems to capture the same. Discussions with CFI corporate teams have been conducted to put in place future plans and management disclosures for all the material aspects.

Analysis of the data provided by CFI units was carried out by CII and after various discussions and inputs by the corporate sustainability team, internal sustainability report for ABG CFI was successfully completed.

Recommendations from CII: Units of the CFI Business are progressive and have implemented best practices in fields of production, energy efficiency, water efficiency, pollution control, effluent treatment and community development activities. CII recommends CFI to strengthen the below aspects as well:

1. Supplier Assessments (aspects include Environment, Labour & Human rights) and awareness generation among suppliers on sustainability

2. Formal Grievance handling mechanism across all levels in a unit

3. Building a baseline for Biodiversity

4. Water impact assessments

5. Training and development to shop floor workers

6. Greening the transportation

7. Improvement in Gender Ratio wherever it is possible

8. Socio-Economic Impact Assessments

9. Strengthening of stakeholder engagements


GRI Disclosures Index

GRI-G4 Indicator Page No Status NVG Linkage UNGC Linkage SDG Linkage

G4-EC1 16 l Principle 6, Principle 2 - 2, 5, 7, 8, 9

G4-EC2 20 l Principle 6, Principle 2 Principle 7 13

G4-EC3 36 l Principle 3 - -

G4-EC4 21 l Principle 8 - -

G4-EC7 65 l Principle 6, Principle 2 - 6

G4-EC8 66 l Principle 6, Principle 2 - 2

G4-EC9 17 l Principle 2 - 12

G4-EN1 48 l Principle 6, Principle 2 Principle 7, Principle 8 12

G4-EN3 30 l Principle 6, Principle 2 Principle 7, Principle 8 7, 8, 12, 13

G4-EN5 31 l Principle 6, Principle 2 Principle 8 7, 8, 12, 13


G4-EN8 38 l Principle 6, Principle 2 Principle 7, Principle 8 6

G4-EN10 39 l Principle 6, Principle 2 Principle 8 6, 8, 12

G4-EN11 64 l Principle 6, Principle 2 Principle 7, Principle 8 13, 14, 15

GRI-G4 Indicator Page No

G4-1 4

G4-3 7

G4-4 9

G4-5 Back Cover

G4-6 6

G4-7 8

G4-8 10, 19

G4-9 11, 18, 19, 58

G4-10 58

G4-11 62

G4-12 55

G4-13 8

G4-14 14

G4-15 4

G4-16 4

G4-17 11

G4-18 26

G4-19 26

G4-20 27

G4-21 27

G4-25 24

G4-28 4

G4-30 4

G4-56 Inside front cover


GRI-G4 Indicator Page No Status NVG Linkage UNGC Linkage SDG Linkage









G4-EN22 43 l Principle 6, Principle 2 Principle 8 3, 6, 12, 14

G4-EN23 45 l Principle 6, Principle 2 Principle 8 3, 6, 12

G4-EN29 48 l - Principle 8 16

G4-EN30 52 l Principle 6, Principle 2 Principle 8 11, 13

G4-EN31 48 l Principle 6, Principle 2 Principle 7, Principle 8, Principle 9 7, 9, 12, 17

G4-LA1 59 l Principle 2, Principle 3 Principle 6 5, 8

G4-LA2 59 l Principle 2 - 8

G4-LA5 52 l Principle 2 Principle 3 8

G4-LA6 51 l Principle 6 - 3, 8


G4-LA9 60 l Principle 2, Principle 3 Principle 6 4, 5, 8

G4-LA10 61 l Principle 2, Principle 3 - 8


G4-LA16 62 l - Principle 3, Principle 4, Principle 6 16

G4-HR1 62 l Principle 2 Principle 2 5, 16

G4-HR2 62 l Principle 5 Principle 1 -

G4-HR3 62 l Principle 2, Principle 5 Principle 6 5

G4-HR4 62 l Principle 5 Principle 3 8

G4-HR5 62 l Principle 2 Principle 5 5, 8, 16

G4-HR6 62 l Principle 2 Principle 4 8, 16



G4-HR10 56 l Principle 5 Principle 2 13, 14, 15


G4-SO1 66 l Principle 8 Principle 1 1, 2

G4-SO2 64 l Principle 2, Principle 6 Principle 1 1, 2, 3, 8, 10, 17

G4-SO9 56 l Principle 8 - 5

G4-SO10 56 l Principle 8 - -

G4-PR5 47 l Principle 9 - -

We would like to thank all the Units and relevant stakeholders with whose support

we have successfully been able to bring out this sustainability report.

- Ashish Sharma

Sustainability Manager - CFI Business

Chemicals, Fertilizers and Insulators Business

1A, Aditya Birla Centre

S K Ahire Marg, Worli

Mumbai - 400 030, India

Tel: +91 (22) 6198 0400

Fax: +91 (22) 6198 0410

E-mail: [email protected]

Web: www.adityabirla.com

Documents

Sustainability - Aditya Birla Nuvo · About this Sustainability Report This is the first sustainability report of Aditya Birla Group – Chemicals, Fertilizers and Insulators (CFI)