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Sustainability Report 2015www.fsc.orgFSC® A000521

Kansai NEROLAC SUSTAINABILITY

REPORT 2015

INDEX

Market, Products and Services

Certi�cate and awards

Report Pro�le, Scope and Boundary

KNPL Supply Chain

Stakeholder Engagement

Economic Performance

Environmental Performance

Employee Investment

Social Performance

Membership

GRI Index

Message from Executive Director

Message from Managing Director

Corporate Governance

Risk Management

02

03

06

10

12

14

16

20

24

32

35

44

50

56

57

Kansai Nerolac Paints Sustainability Report 2015 01


Message from Managing Director

Dear Stakeholders,

I am proud to present the Company�s Sustainability Report for the �nancial year 2014-15.

Kansai Nerolac�s vision towards sustainable development is marked by focused approach keeping in mind economic, environmental and social aspects of business.

For the year ended, we achieved top line growth of 12.6% and net pro�t growth of 31.5%. We accomplished good growth in our businesses.

We have shown exigency and commitment and have proactively addressed major sustainability challenges of energy, material and water conservation with respect to our operations; wherein we strengthened our focus on adoption of renewable energy and process energy ef�ciency to curtail energy cost. Solar power plants at Hosur, third party renewable energy procurement are some of our major implementations last year in energy domain leading to energy ef�cient manufacturing.

On safety front, KNPL achieved 15.24 million man-hours without any lost time injury (LTI). Company has given utmost focus on consideration of safety at design phase and implementation of safe work practices at plants. Safety excellence accolades from FICCI (Federation of Indian Chambers of Commerce and Industry) and GreenTech endorse our strong safety performance and our journey towards operational excellence.

Innovative initiativesLast year we continued to innovate through collaboration among various stakeholders to achieve solutions for challenges of tomorrow. Innovative development of lower baking schedule products has helped our customers to save energy during paint application and thereby reduce carbon footprints. Our Hazardous Air Pollutant (HAP) Free coating solution for automobile interiors has been another trend-setter innovation to reduce indoor air pollution in Automobile and thereby transfer health bene�ts to customers. Company has also developed Low VOC products for Green Buildings and coating system for energy saving.

Deepening the CultureCompany has taken proactive steps in development of �Safety First� culture through active employee participation and building scienti�c awareness about safety hazards. Company is thriving on Operational excellence through culture of continuous improvement and 5S.

Serving SocietyLast year company framed corporate social responsibility committee to strengthen its focus on social activities along themes of environmental sustainability, livelihood enhancement, Promoting education, Healthcare and sanitation program and Community development. With an understanding that Social stewardship is a key for holistic business growth, KNPL has actively engaged with local stakeholders to extend �nancial aid to social programs and development of local infrastructure. Further going ahead; let me assure our stakeholders of stronger triple bottom line performance to enrich long term value for our stakeholders. I am con�dent that company would continue to post stronger growth in coming years.

H. M. BharukaManaging Director


Message from Executive Director

Dear Stakeholders,

We, at Kansai Nerolac Paints Limited (KNPL), continue to pursue triple bottom line goals with more vigor and drive to push forward sustainability agenda. I am happy to see signi�cant advancement in environmental and social goals along with �nancial goals. Last year, there have been focused efforts to address sustainability challenges on operations as well as sales front towards pro�tability improvement. Emerging challenges of rising energy and raw material cost are partly subsided through increased ef�ciency in manufacturing processes. KNPL operations sustainability agenda is guided through adoption of cleaner technologies, renewable energy and reduction of GHG & Water footprints.

In environmental dimension, KNPL has put in extensive efforts to reduce environmental impacts of our manufacturing processes at source. Last year, KNPL achieved 9% reduction in water consumption at source. We have proactively installed zero liquid discharge facilities at all our major plants to reuse and recycle treated water completely. In coming year, we intend to further benchmark water consumption at source and horizontal deployment of best practices. Waste management is one of the key focus areas to achieve objectives of 3R � Reduce, Reuse and Recycle. We intend to progress towards improved material and energy ef�ciency through reduction of environmental footprints of our supply chain. Accounting of environmental parameters across organization is facilitated by SAP EHS portal. Over the years, GHG footprints at KNPL have been reduced due to proactive adoption of renewable energy and improvement in energy ef�ciency.

We continue to maintain zero lost time injury across KNPL this year too; consistently fourth year in a row. Over the years, �Safety First culture� has been ingrained in our systems and we are committed to maintain and further improve safe workplace with effective implementation of preventive measures, due

diligence and horizontal deployment of best safety practices. Employee participation in safety has been enhanced through frequent KYT (Kiken Yochi Training) activities at plant for proactive identi�cation, elimination and communication of actual hazards at actual place. Going ahead, we intend to transcend further towards safety excellence through effective adoption of mistake-proo�ng for static charge elimination and increasing scienti�c awareness about operational hazards through practical demonstration at our in house safety laboratory.

At the same time, KNPL continued its focus on addressing emerging customer needs through its extensive customer engagement activities such as Joint improvement projects, Customer training, Technical services, Colour trend and new technology exhibition etc. We maintained our leadership position in Industrial paints through our continuous and ardent efforts in development of cleaner technologies and products. 3Coat�1Bake (3C�1B) technology development has been one of the landmark achievements in this regard. Company continues its focus on sustainability & working hard on energy ef�cient coating technologies. For decorative paint market, KNPL has embraced concept of eco friendly products and it has pioneered launch of green products in decorative paint market.

Another major dimension of Corporate Social Responsibility is gaining momentum among industry corporate nowadays. At KNPL, Our impetus is to address social and local community needs in collaboration with our employees, local communities, and government authorities to contribute towards social bene�ts in the focus areas of Health, Education, Environment and Community development. I would like to thank all stakeholders for their contribution to organization�s sustainability efforts and would like to see further progress through earnest efforts from KNPL team.

Pravin ChaudhariExecutive Director

Kansai Nerolac Paints Limited (KNPL) has been a cherished name in millions of households across the length and breadth of India for its healthy, eco-friendly and high quality products that are made through energy ef�cient manufacturing systems. The company manufactures a diversi�ed range of products for every surface. It is the second largest coating company in India and the market leader in industrial paints segments with a market share of over 40%. KNPL is an Indian subsidiary of Kansai Paints Co., Ltd, Japan (KPJ). Parent Company is a market leader in Japan and renowned brand on the globe for its product innovation, R&D and holistic approach towards environment and sustainable growth.

KNPL started its illimitable journey in the year of 1920 as Gahagan Paints and Varnish Company. After several strategic mergers and acquisitions today KNPL is leading the Asia�s second largest market with sales locations all over India and strategically located four manufacturing facilities at Jainpur (Uttar Pradesh), Bawal (Haryana), Lote (Maharashtra) and Hosur (Tamil Nadu). Company�s manufacturing units have received ISO 9001-2000, TS 16949, ISO-14001 and OHSAS-18001 for its quality management and eco-friendly production.

Technologically innovative products are the company�s hallmark. KNPL technical vision is to develop judicial mix of state-of-the-art, environment friendly and value for money product and process technologies in Industrial and Architectural coating. Products the company is engaged in manufacturing of automotive coating, general industrial coating, high performance coating and powder coating. �Impression�, �Beauty�, �Excel� and �Suraksha� are some key brands of company that gave immense success and recognition in Indian market.

KNPL has strong presence in automotive paints segment with its major clients include OEMs like Maruti Udyog, Bajaj Auto, Honda Cars, TATA Motors, and Mahindra & Mahindra. It has been the vision of KNPL to leverage global technology and serve the customer with superior coating system and world class solutions.

It was a pioneer in introducing electro-deposition(ED) technology for Maruti, capturing a sizeable share of the automotive paints markets.

KNPL won many prestigious awards like Golden Peacock Envi ronment Management Award, GreenTech award, FICCI safety excellence award, Best Vendor Awards from its esteemed customers like Toyota Kirloskar Motors Ltd., Maruti Udyog Ltd.(MUL) and Honda Motors, Product of the year award for Nerolac Excel-2010, Product of the year award for Nerolac Excel Total with Heat-Guard Technology-2011, award for Marketing initiative like Cannes 2007 Bronze for Press Ad. This all has been possible because of the combined effort of world class management and highly quali�ed and skilled employees working at corporate of�ce, manufacturing plants, divisional and area of�ce.


Introduction

Markets, Products and Services


We serve our customers through our extensive distribution network spread across India. In India we have four plants which supply �nished goods to distribution network of three Regional Distribution centers and 94 Depots. Our three Regional distribution centers are located at plant locations Lote, Jainpur and Hosur.

Decorative Paint Products

EXTERIOR RANGE

NEROLACBEAUTY SILVER

NEROLACBEAUTY GOLD

NEROLACLOTUS TOUCH

NEROLACIMPRESSIONSECO CLEAN

INTERIOR RANGE

NEROLACIMPRESSIONS24 CARAT

PO

PU

LAR

PR

EM

IUM

NEROLACBEAUTY SMOOTH

NEROLACLITTLE MASTER

EC

ON

OM

Y

EC

ON

OM

Y

PO

PU

LAR

PR

EM

UM

SU

PE

R P

RE

MIU

M

NEROLACSURAKSHA PLUS

NEROLACSURAKSHA ADVANCED

SPECIALITY PRODUCT

NEROLACSURAKSHA

NEROLACEXCEL

Kansai Nerolac PaintsSustainability Report 2015 07

METAL

ANCILLARY

WONDERWOOD RANGE

PR

EM

IUM

SU

PE

R P

RE

MIU

M

2K PU INTERIOR

MEL MINE

2K PU EXTERIOR

PO

PU

LAR

1K PU CLEAR ACRYLIC LACQUER


Industrial Paint Products

Automotive Coatings High Performance Coating

General Industrial Powder Coatings

Heavy metal free automotive products

Electro-deposition (ED) technology

3C-1B(3 Coat 1 Bake)/2C-1B System

Intermediate coats/Primer surfacers

Top Coats

Scratch resistant Clear Coats

High solid basecoats

DTM (Direct to Metal) coatings

Multimetal coatings

Touch up paint & Auto re�nish

Heat Resistant Paints

Underbody Paints and PVC sealants

Rapgard transit protection �lm

Barrel Coating

Bus Body System

Containers

Fan Coatings

Gas Cylinder Coating

Glass Coatings

Hacksaw blades

Helmets

Material Handling equipment

TV Cabinets etc

Floor Coating

Industrial Paint Products Industrial Paint Products

Epoxy Polyester Powder

Epoxy Powder

Pure Polyester Powder

Chlorinated Rubber coatings

Conventional Coatings

Epoxy Coating

Polyurethane Coating

Powder Coating Products High Performance Products

Being leader in Automotive coatings, we extend our products to automotive customers located across India through our strategically located manufacturing faci l i t ies. Adjacent map shows automot ive manufacturing clusters across India which constitutes major market for us.

Automotive Market

Delhi-Gurgaon-Faridabad

Mumbai-Pune-Nashik-Aurangabad

Chennai-Bengaluru-Hosur

Kolkata-Jamshedpur

Gujrath

Kansai Nerolac PaintsSustainability Report 2015 09

Powder Coating:

KNPL is leader in Powder coating business in India. Applications of powder coating products in various industries are illustrated below in brief.Powder Coating applications in white goods Industry: In the white goods industry, we are well recognized as being a high quality �nish for both major and minor applications. In this industry, the advantage of high corrosion resistance with single coat application has resulted in powder coatings being used on a wide variety of electrical appliances, including:

Air conditionersMicrowave ovensRefrigeratorsWashing machines, etc.

Powder Coating applications in Automotive Components:

Current applications in the automotive industry include - Air �lter housing, brake calipers & components, bright trim molding, bumper bars, door handles engine mirror housings, motorcycle frames, oil �lter housings, rocker covers, seat frames, steel wheels.

Powder Coating applications in Furniture:

The furniture industry is a major market for powder coatings. Powder coatings are used extensively on both commercial and domestic furniture for both their performance and for their appearance. The performance characteristics of powder coatings such as toughness, Hardness, Corrosion Resistance, Excellent scratch resistance, excellent gloss etc. make them suitable for furniture applications.


Certi�cate and Awards

Certi�cate and Awards


Bawal plant won Certi�cate of appreciation for Good Practices in Safety at FICCI (Federation of Indian Chamber of Commerce and Industry) safety systems Excellence Awards for Manufacturing 2014

KNP was felicitated with Vendor Performance award by SUZUKI Motors India for year 2013-14.

Lote plant received �Certi�cate of Merit� from National Safety Council (NSC) � Maharashtra chapter for achieving zero accident frequency rate for three consecutive years.

Lote plant received �Certi�cate of Appreciation� from National Safety Council (NSC) for safety awards 2014.

Nerolac�s Magic Clean (water-based paint remover), declared as winner at Economic Times - ACETECH�s Design Wall 2014 under the Product Innovation category.

KNPL received best vendor award from HMSI for year 2014-15

Bawal plant received GreenTech Safety Award 2014 in Gold category for outstanding achievement in Safety Management System.


Innovative kaizen implemented by Mr. Venkatesh declared as a winner in EHS category in HCIL (Honda Car India Limited) kaizen competition � Western Zone.

This is forth consecutive year; KNPL is disclosing sustainability performance as per GRI guidelines for �nancial year 2014 -15. (1st April, 2014 � 31st March, 2015). This sustainability report is based on revised GRI G4.0 - Core Guidelines. Sustainability report is compiled and published every year based on GRI reporting principles i.e. Balance, Comparability, Accuracy, Timeliness, Clarity, and Reliability. Financial information published in report is based on KNPL annual report which is publicly available at our website. References to GRI indicators are provided in GRI Content Index. Sustainability report content is reviewed by Management committee followed by rigorous review by Executive Director and Managing Director of company. After reviewing report content and approval from Top management, sustainability report is published and further distributed.

For any clari�cation with respect to report or to request for additional copies, please contact through mail at � [email protected]

The Corporate of�ce of KNPL is at:Nerolac House, Ganpatrao Kadam Marg, Lower ParelMumbai � 400013,Maharashtra

Report Scope:

This report covers performance of all manufacturing facilities and concerned supply chain operations of KNPL in India. KNPL has four manufacturing facilities in India located at Lote, Bawal, Hosur & Jainpur.

Report Pro�le, Scope and Boundary


Hosur Manufacturing facility

Jainpur Manufacturing Facility

Lote Manufacturing Facility Bawal Manufacturing Facility

KNPL Supply Chain


KNPL supply chain is illustrated in simpli�ed format in diagram below. We cater to industrial as well as Decorative customers. Planning and Distribution part of supply chain differs for two major group of customers � Industrial and Decorative as mentioned below. For Industrial customers planning is carried out as per �Make to Order� philosophy, while decorative customers are served through our wide distribution network and planning is carried out based on forecasted demand.

Production plan is output of planning phase which provides input for manufacturing in terms of �nished goods to be produced and raw materials to be procured to ful�ll the demand. Purchasing of required materials and manufacturing of paint is carried out as per production plan followed by distribution to customer through our distribution network.

Manufacturing

FG Distribution Network

RDC (Regional

Distribution Centre)

Outside Processing centers

Paint processing at manufacturing sites

Customers Retailers

Depot

Demand Planning

Production Planning

Production Plan

Finished Goods (FG) - Paints

Finished Goods (FG) - Paints

FG

CorporateGovernance


KNPL has rich legacy of fair business dealings and ethical practices governed by code of governance so to be a responsible corporate citizen and to serve best interests of stakeholders of the organization. It is professionally managed company which believes in operating in a transparent and ethical manner. KNPL strives to achieve excellence through code of governance and various other policies such as whistle blower policy etc. to ensure good governance. The overall management structure headed by the Managing Director incorporates strong leadership at the corporate level. The KNPL Board functions in a democratic manner and plays an essential role in ensuring good governance. Members are free to bring up any matter for discussion at Board Meetings with the permission of the Chairman. The role, functions, responsibility and accountability of the Board are clearly de�ned. The highest governing body guides progress in economic, environmental and social domain to drive triple bottom line performance of organization.

Corporate Governance


Board of Directors and their committees

The strength of Board as on 31st March, 2015 is nine Directors. The Board comprises Executive and Non-Executive Directors. The Managing Director and a Whole-time Director are the two Executive Directors. There are seven Non-Executive Directors, of which four Directors, including the Chairman, are Independent Directors. The Board also consists of one Woman Independent Director. The Board has constituted �ve committees - Audit Committee, Remuneration & Nomination Committee, Stakeholders� Relationship Committee and Management Committee and corporate social responsibility committee.

Further details are available on the company s website: http://www.nerolac.com and in our annual report, which is available on the website. Other details related to composition of the board, details of members of the board and their compensation are available in our �Annual Report�. All the shareholders and employee are free to share or advice any information with the highest governing body through our website. The members of our governing body ensure to respond towards suggestions made.

Board of Directors

Remuneration & Nomination Committee

Audit Committee

Stakeholder's relationship committee

Corporate Social responsibility committee

Management Committee


Orientation of newly elected directors and updation strategy

Newly elected directors are given a presentation on the functioning of the Company. Every quarter, reports of thevarious departments of the Company are circulated among all the directors. These reports give speci�c particulars of the respective departments. Apart from this, the directors are intimated of the changes as and when they happen. All the functional heads are present at the Audit Committee Meeting of the Company held every quarter. Presentations are also made to the Board of Directors by the functional heads. This ensures that the functional heads can apprise all the directors about the developments in their speci�c areas.

Code of Conduct for senior Management: The Company has adopted a Code of Conduct for Board of Directors and Senior Management (the Code) to address following mentioned governance issues �

The Code has been communicated to the Directors and the members of Senior Management. The Code has also been posted on the Company�s website www.nerolac.com. All Board members and senior management have con�rmed compliance with the Code for the year ended 31st March, 2015. The Annual Report contains a declaration to this effect signed by the Managing Director who is the Chief Executive Of�cer.

Con�ict of InterestCorporate Opportunities

Con�dentiality

Compliance with laws, rules and regulations

Protection and proper use of company assets

Fair dealing and ethical business conduct

Encouraging the reporting of any unethical behavior

Annual certi�cation

Ethics and Integrity


KNPL has code of ethics and every employee is expected to adhere to this code. We also have whistle blower policy in place to detect and remedy any non compliance to the code. We have strict policy against bribery and corruption and take all steps to ensure our operations are as transparent as possible.

Responsive, Innovation, Team Orientation, Entrepreneurial, Simplicity (Brie�y described as RITES) are core values for all nerolites which provide the blueprint to guide in right direction. KNPL has adopted CSR policy to guide governance and CSR activities. As per CSR policy KNPL will lend a helping hand to the society in which it operates, in the areas of health, education, environment preservation and community development.

KNPL has adopted Code of Conduct for Managerial and Executive Staff which may be considered as �Code of Conduct for Prevention of Insider Trading and Code of Corporate Disclosure Practices� and the �Policy on Appropriate Social Conduct at the Workplace�.

Precautionary Approach

KNPL is keen on adopting new emerging practices and approaches to cater to precautionary approach as speci�ed by principle 15 of �The Rio Declaration on Environment and Development�.

Our precautionary approach is characterized by following major areas

Company is keen on leveraging opportunities driven by Climate change and it has invested in above approaches. While leveraging these opportunities, it has also identi�ed risks posed by climate change. Mitigation plan has been developed to address these risks.

Reduce, Reuse, Recycle initiatives to reduceoverall water consumption

Raw material substitution Process optimization and waste minimization

Adoption of renewable energyAdoption of cleaner technologyProduct differentiation based on green features

KNPL Code of conduct consists of following major elements:

Encouraging the reporting of any illegal or unethical behavior

Handling news about the companyCompliance procedureAnnual certi�cation to code by senior

managements

Con�ict of InterestCorporate OpportunitiesCon�dentialityCompliance with laws, rules and regulationsProtection and proper use of company assetsFair Dealing and ethical business conducts


Being a company dealing with chemicals, we have always followed a systematic approach for business risk management. We make annual plans to clearly identify the top risks and set out a mitigation plan with targets and accountability. The company has identi�ed risk areas along with its probability & severity in various aspects of business. Our company has a detailed Enterprise Risk Management (ERM) framework to mitigate the risks. A detailed function wise Risk Register is maintained to monitor and mitigate risks. Identi�ed Risks are reviewed on quarterly basis.

The Risk Management Committee analyses and prepares a framework which covers whole of our business for risk management. The committee communicates risk management objectives to the concerned people and determines criteria for de�ning major and minor risks. Then resources are allocated along with roles and responsibilities to mitigate these risks. We have a team of independent auditors who are responsible for internal audit at corporate level. They identify risk all across the business and identify the areas of improvement.

Risk Escalation Mechanism

Major Risks

Board of Directors

Risk Management Committee

Chief Risk Of�cer

Risk Of�cer

Minor Risks

Functional Head

Risk Of�cer

Staff

Staff

Risk Management


Board of Directors

Audit Committee

Risk Management Committee

Functional Heads

Chief Risk Of�cer

Staff

Risk Of�cers

Risk Management Process Flow

Decide strategic goal & risk appetite

Review risk appetite & risk policies

Provides oversight to the company�s risk management function

Review effectiveness & give suggestion

Prepare company - wide framework for risk management. Communicate risk management objectives. Determine criteria for de�ning major & minor risks. Allocate resources. Fix roles & responsibilities.

Updating company � wide risk registered. Deciding strategies for escalated major risk area. Draw action plan. Prepare Quarterly report for review of audit committee.

Prepare framework of risk management for the function. Monitor its effectiveness & ef�ciency.

Give Quarterly & escalation of major risk events to the risk management committee.

De�nes processes & procedures. Give direction to the risk of�cers in their function.

Give Quarterly report & escalation of major risk events to the functional head/ risk management committee.

Implementation of directions given by risk of�cer.

Give periodic Quarterly report to the risk of�cer. Promptly communicate risk areas and major variation in the control factor.

Implement the risk management system in their function. Communicate objective, procedures to all the employees.

Quarterly report consolidation received from staff. Preparation of functional Quarterly report. Communication of risk area & major variation in control factors to the functional head & chief risk of�cer.

Key Impacts, Risks and Opportunities


Foreign currency risk is one of the major risks considering 35-40 % of KNPL raw materials are imported. KNPL team continuously keeps track of market �uctuations through various online resources and work on mitigation measures like forward contracts, effective price forecasting system etc. It has developed elaborate policies and procedures to minimize impacts of price volatility. Other �nancial risks addressed by risk management committee are account receivable risks, slow moving and non moving inventory risks, investment related risks. These risks are addressed by speci�c mitigation measures. KNPL has de�ned credit policies and customer evaluation procedure for new as well as existing customers. Return on investment is monitored periodically to mitigate investment related r isks. KNPL has centralized payments and Capital Expenditure sanctions to reduce any mismanagement of fund. In addition to this, internal audits, code of conduct, sound ethical value system and effective whistle blowing policy also help address this risk. All assets and stocks are insured through insurance policies against applicable types of risks.

Sustainable development is today�s one of the major focus areas. Climate change risks are at epicenter nowadays and it is common global concern. It poses varied types of challenges to paint industry like ours. Especially, water and energy scarcity are pressing issues of India. KNPL is exigent in its approach to address these challenges. Last year, energy security risk has been mitigated through implementation of various initiatives such as installation of solar power plant, procurement of biomass based power, wind wheeling agreement, usage of biodiesel etc. Impacts of climate change risks are hard to de�ne due to their intangible nature. But these intangible issues are set to gain more importance as time passes. Also they may become tangible issues through legal developments in environmental �eld in India. Prices of fuel and energy are increasing day by day which may hamper pro�tability if not curtailed with proper mitigationmeasures. To add to this, it is also envisaged that government may come up with Cap and trade

schemes in this area like PAT, RPO scheme to encourage energy ef�ciency and adoption of renewable energy. To cater to these risks, KNPL has proactively taken measures like third party energy audit, solar energy procurement, Low carbon energy installation, adoption of biodiesel etc. India is facing water crisis in many regions and it is believed that regulations in water will become stricter over next few years. Water Balance module of SAP EHS facilitates water consumption monitoring. All our major manufacturing facilities are zero discharge facility and KNPL has taken Reduce, Reuse and recycle initiatives to reduce water consumption over the years. Applicable legal compliances are monitored with the help of Compliance Mantra � an IT portal to mitigate legal risks. Voluntary regulations and standards and their increasing popularity may be a risk factor in long term. KNPL participates in corporate reporting standards like CDP, GRI etc. and accounting of GHG footprints of value chain impacts. Other climate change risks are from our customers. KNPL being leader in automotive and Industrial paints, our customers as a part of supply chain due diligence are taking cautious steps towards purchase of environment friendly products and services. KNPL has taken it as an opportunity to gain competitive advantage through development in eco friendly products as well as technologies. KNPL has developed technologies to reduce wastage in coating process and bene�ted its customers. KNPL R & D team strives to develop substitute for hazardous constituents and imported raw materials to address this challenge.

With release of Companies Act, 2013, Corporate Social Responsibility(CSR) is gaining importance in the corporate world. At KNPL we believe that CSR is about responsible wealth creation. Companies while contributing to economy needs to act in a socially responsible way to sustain social license to operate. We acknowledge this as an imperative to carry out business in current scenario. KNPL has embarked upon corporate social responsibility as a conscious way of existence. Focus areas of KNPL for CSR activities are Health, Education, Community

Financial risks and opportunities have been explained in following paragraph.


development and Environment preservation. As a good samaritan, Nerolac has imbibed coexistence with the community around it and the saying that �what we give to society, it gives back to us�, really holds true. Investments have been made in establishing health centers, organizing health camps, �nancial donation to

educational institutions for creating infrastructure with respect to technology, books, and periodicals, working with NGOs for upliftment of the poor and needy, setting up basic amenit ies for regions around our establishments, besides taking measures for safeguarding the environment.

Skill Development Skill Development plays an important role in the progress and development of an individual as well as of the nation. Our goal is encouraging & supporting institutions imparting education. We also try to focus on educating girl child & children residing in nearby villages in the vicinity of our manufacturing units.

HealthThe objective is to support various activities towards improving and generating awareness about general health & primary health care to the general masses, and the people residing within the vicinity of our plants.

KNPL focus areas of corporate social responsibility

Community DevelopmentOur goal is to provide basic facilities to the community settled in the vicinity so as to support and improve their basic living and thus ful�ll the role of being a good Corporate Citizen.

Environment PreservationIt is our continuous endeavor to support preservation of resources like water, green cover and provide clean environment.

Stakeholderengagement



Industrial Customers

KNPL has consistently delivered upon expectations of its industrial customers to earn new businesses which helped it maintain leadership position in Indian market. Basic Expectations of Industrial customers are driven by Innovation, high quality products, cost competitive, consistent performance and timely delivery. Apart from these basic expectations, Industrial customers are keen to understand colour trends, consumer lifestyle research, etc. and upcoming new Paint & application technologies. Faster New Product development is another major focus area for KNPL to win new businesses from Industrial Customers.

KNPL engages with its industrial customers though various engagement activities as summarized below.

Auto Synergy Meet: It is the platform where New Technology and color trends study is shared with senior management of customer. Major topics stressed during these events are color trends and introduction to new technology. KNPL senior management shared latest energy saving technologies and need to work together for shared bene�t.

Technical Services to Industrial customers: Kansai Nerolac has well established technical service team with its Central Service Technology Laboratory based at Lower Parel, Mumbai. Satellite Technical Service Laboratories are established at Chennai and Delhi. Over 85 Technical Service team members are located at important customer sites to support production lines.

Vendor Meet organized by KNPL Customers: Our Industrial customers organize periodic vendor meet as per their schedule to keep their vendors abreast of new developments and short term & Long term plans. KNPL being one of the major vendors for Industrial segments, KNPL senior management participate in those vendors meet to align ourselves to customer needs.

Type of Engagement

Auto Synergy Meet – Technology Presentation

Vendor Meet organized by Customers

Plant Audits by Customers

Industrial Customer Visit to plant

Customer Training programs

Technical services

Customer Satisfaction Survey

Sr. No.

1

2

3

4

5

6

7


Decorative Customers

Train the Customer Initiative: It is another initiative to support trouble free performance of KNPL products at the user end. KNPL focuses upon basic training on paint technology, Paint application, Paint shop safety, Defect causes and cure to paint shop, quality, Maintenance employees at customer's end.

Customer Visit: KNPL invite its customers to visit factories to understand Paint processing and it�s application. Our newly incorporated Hosur factory has been highly appreciated by our customers.

In decorative market, decision to buy paint is majorly in�uenced by end consumer, painters, contractors as well as dealers in an area. To tap decorative market, we carry out numerous engagement activities with customers and in�uencers. Some of the major activities are as mentioned below. Over the years we have gained our identity as producer of �Healthy Home Paints� and we are engaging with our customers to enlighten them about bene�ts of our products. Focused on Health and Green themes, we have aligned our some of the engagement activities as below.

Impressions Dealer Meet: It is forum to create trade awareness among dealers and strengthen partnership with our dealers. In total approximately 1000 dealers and 100 members of Nerolac�s Decorative Sales team were reached out through year-long nationwide activity. Each dealer meet was centered around our product franchise Nerolac Impressions (Eco Clean & 24 Carat). Through demonstration of live panels of Nerolac Impressions vis-a-vis competition and through interactive sessions by the top of�cials from Marketing and Sales department, dealers were made to visually see and experience the richer �nish of Nerolac�s Premium most range � Nerolac Impressions.These meets were also served as a build up to the HD campaign for product Nerolac Impressions.

Type of Engagement

Impressions Dealer meet

Interactive Programs with IGBC

Participation at Exhibitions

Contractor Meet

Health Check up camp for painters

Earth Matters – Meet with Architects

Sr. No.

1

2

3

4

5

6


Engagement with Painters: Painter skill development program and Painter health check up program were two of our major initiatives to engage with painter community. Painter lacks professional trainings and their source of training is usually restricted to their peer group who themselves are mostly not professionally trained.

Painter skill development program aims at enhancement of painting skills through classroom as well as practical training by Nerolac experts. Skill development programs were conducted at nine locations in Maharashtra and Gujarat to train painter with new designer paint techniques. Around 350+ painters took bene�ts of the same. Another painter engagement activity is through arrangement of health check up camps for painters. Painters spend their majority of time with paints and allied products in construction atmosphere. Painter usually belong to community who hardly check their health regularly as they spend their majority time in their work to earn more for their family. Being leading paint brand in India, KNPL continued its initiative to conduct health check up camps for painters. Around 34 health camps were conducted across nation for painters.

Engagement with Architects: Earth Matters convention series was launched by Kansai Nerolac, in association with Indian Architect & Builder, as an inspiring think-tank on green endeavors. Embodying its theme, Earth Matters brought together all over India architects whose practices resonate with the green vibe.

The convention has travelled across to more than 40 cities over a span of �ve years, elaborating on the relationship between architecture and sustainability. Earth Matters focuses on emerging concepts, ideas and innovations aimed at making the future sustainable and eco-friendly. This year Earth Matter initiated a proactive discussion amidst the architect through panel discussion across 3 cities where the architects highlighted various thought provoking sustainable practices each unique to the city.

The journey of three cities included- Ahmedabad, Chennai, Delhi. Each city witnessed an overwhelming audience of 100-150 architects and interior designer appreciating the proactive initiative giving each one a chance to share their thoughts. Each of the earth matter series was covered by Architects and Interior India Magazine that has readership of over 50000+ architects, interior designers and Construction Professionals. Our Facebook page of Earth Matter generated over more than 10000 interactions amongst architects and interiors who are members of the page for videos and posts on Earth Matter series

Participation at IGBC ConferenceIGBC, the annual Green Summit was organised by CII in hyderabad from 4th to 6th September, 2014. Theme of the conference was Green Home. The conference was enthralled by well renowned speakers across the fraternity of architects, interior designer, realty �rms, technology partners and government of�cials. Being pioneers of theenvironment friendly paints, Nerolac was given opportunity to present on role of paints in green home. A session by Mr. Yatnesh Pandey from KNPL was well appreciated by the audience of the architects and interior designers.


Employees

Various communication and engagement forums have been developed in KNPL to capture voice of employees at Plants, head of�ce, depots etc. KNPL believes in involving its employees in its business growth. The workforce is aligned to the company�s goals through various media like newsletters, MD�s address, Plant head�s address etc. Interactive sessions like open house are also conducted wherein plant employees get a chance to voice their concerns and suggestions to top management. In FY 14-15, address for annual goals took place over a phone call by MD for entire workforce of KNPL across India. KNPL provides knowledge sharing platforms like knowledge management portal. Employees can access and upload various documents on this portal. These documents are then used for horizontally deployment of good practices across KNPL. Nerolites are encouraged to showcase their talent through various events and competitions like Kaizen competition, project competition etc.

Employees are appraised through such interactions and events. Also, there are speci�c platforms developed for employee appraisals. Performance management diary is used to keep nerolites updated on their performance; Nerolites can also enter highlights in their performance diary. Regular dialogue with appraisers helps to address the concern of employees.

Type of Engagement

“Manthan” – Kaizen Competition at HO

Interplant Kaizen Competition

Employee Training

Interplant FIP (Focused Improvement Projects) Competition

Impressions (Monthly newsletter of KNPL)

MD’s address to all employees

Open house session

Manthan award ceremony at Head Of�ce Interplant Kaizen Competition

Interplant Focused Improvement Projects: Improvement projects are identi�ed in each targeted areas � PQCDSM (Productivity, Quality, Cost, Delivery, Safety, Morale) at the start of year. Multifunctional project team is formed to carry out identi�ed projects. During Interplant FIP competition, best performing team is awarded.

Sr. No.

1

2

3

4

5

6

7

Shareholders and Investors

KNPL use following means of communication to keep its shareholders and investors abreast of KNPL performance.

Quarterly Results: The quarterly results are published in accordance with the requirements of the Listing Agreement of the BSE and the NSE.

Publishing of results in newspaper: The Economic Times and The Maharashtra Times, Results could also get published in any other reputed newspaper such as the Financial

Express / Loksatta or the Business Standard

Quarterly results are also displayed at our website www.nerolac.com

Annual General Meeting: Schedule of Annual general meeting is informed to all of our shareholders and they are encouraged to participate in meeting.

Suppliers


We consider vendors as our business partners and hence we have developed appropriate vendor engagement and development platforms. To deliver Quality paint products, it is necessary to receive consistent Quality from our Raw materials vendors. To manage objectives of Quality Raw materials, Timely delivery & other development initiatives, KNPL has adopted Best Vendor Performance management system. To emphasize these aspects, KNPL Quality Assurance team assesses vendor performance on Quarterly basis followed by audit of Critical vendors. Vendor audit is based on multiple criteria such as Quality performance, ISO 9001, TS 16969, ISO 14001, OHSAS 18001, Factories act etc. During vendor audit following major points related to Environment, Health and Safety are assessed.

Type of Engagement

Vendor Performance Assessment and Audit

Joint Improvement projects

Systems followed � ISO 14001, OHSAS 18001

Compliance to statutory and regulatory requirements � Factory license renewal, Explosive license, Hazardous handling, Pollution control board clearance, Air & Water Consent renewal

Safety � Availability and accessibility of �re �ghting equipments and their controls Availability of MSDS for materials

Sustainability and green initiatives

Safety and housekeeping standards

For better collaboration with our vendors we have adopted Nerolac portal to facilitate supply chain visibility of order processing. KNPL also engages with its vendors for joint improvement projects to leverage upon certain competencies of vendors.

Sr. No.

1

2


Materiality Aspects and Scope

Materiality and Scope for KNPL

Strong economic performance is necessary for an organization to be sustainable.

KNPL ensure that wages offered to its employees are compliant with prevalent norms and regulations.

KNPL addresses this material aspect through its Corporate Social Responsibility (CSR) activities.

KNPL tries to procure its raw materials from local vendors to the extent possible. But some ingredients are needed to be imported to fulll certain specic needs.

Environmental performance is an important component of triple bottom line performance. It is necessary for an organization to reduce environmental impacts of its operation through efcient manufacturing processes and adoption of cleaner technologies. It is need of an hour to use natural resources like water, materials etc. efciently while reducing wastes, emissions and efuents. KNPL has always been keen on development of eco-friendly products and technologies to help reduce its impact during paint application.

KNPL has always been keen on leveraging its technological edge to develop innovative products and technologies to reduce environmental footprints during application phase. Being leader in Industrial market, it has developed products which are made of concern free ingredients and are low in energy consumption during application. It has differentiated its decorative products as healthy home paints, low VOC paints.

Supplier assessment is carried out during vendor audits which covers various elements including their legal compliance status, ISO 14001, OHSAS 18001 etc.

Material Aspects

Economic Aspects

Environmental Aspects

Materials

Energy

Water

Biodiversity

Emissions

Efuents and waste

Compliance

Economic Performance

Market Presence

Indirect Economic activity

Procurement practices

Transport

Overall

Products and Services

Supplier Assessment for labour practices and Environment

Material aspects related to Labour practices

Employees are an important asset to organization.

KNPL is an equal opportunity employer.

KNPL is committed to conduct its activities in such a way as to take the foremost account of the Occupational Health and Safety (OH & S) of its employees and all the individuals working in its plants.

Training and Education of workforce is necessary to upgrade skills of employees working in various functions. It helps the organization to be competitive through enhanced employee participation and engagement.

KNPL complies with all applicable regulations and standards with respect to human rights.

KNPL has policy to guide Corporate Social Responsibility (CSR) activities in areas surrounding its operational sites. The manufacturing locations and corporate ofce drives planned CSR programs in the scheduled quarter by involving external agencies or on their own.

KNPL has well established code of conduct and whistle blower mechanism to address corruption related risks.

KNPL complies with all applicable regulations with respect to Marketing communications, labeling and customer privacy. It also tries to promote healthier and safer nature of its products through eco labels.

KNPL maintains customer privacy in terms of sharing and publishing of customer details.

Material Aspects related to Product Responsibility

Employment

Human Rights

Material aspects related to Society - Local Community

Anti Corruption

Marketing communications

Product and Service labelling

Customer Privacy

Diversity and equal opportunity

Labour/Management Relations

Occupational Health and Safety

Training and Education



EconomicPerformance

KNPL Financial Performance


Component 2012-2013 (in crores) 2013-2014 (in crores) 2014-15 (in crores)

Direct economic values generated

Gross Revenue 3375.65 3739.02 4211.64

Revenue Generated 2872.9 3174.35 3570.85

Economic value distributed

Revenue Distributed 2695.6 2967.78 3299.18

Economic value retained 177.3 206.57 271.67

Note: For more details regarding Employee bene�t plan, please refer to Note 31, Annual report of KNPL for FY 2014-15.

De�ned Employee Bene�t plan

Employer�s contribution to Regional provident fund Commissioner

Employer�s contribution to Family pension fund

Employer�s contribution to Superannuation Fund

2013-14 (Rs. in crores)

1.23

1.40

2.26

4.89

2014-15 (Rs. in crores)

1.11

1.87

2.46

5.44

Rev

enue

gen

erat

ed(in

mill

ion

rupe

es)

Direct economic value generated

Financial Years

2872.93174.35

3570.85

2012-13 2013-14 2014-15

Rev

enue

Dis

trib

uted

(in

mill

ion

rupe

es)

Financial years

Economic Value Distributed

2695.62967.78

3299.18

2012-13 2013-14 2014-15

Eco

nom

ic v

alue

ret

aine

d(in

mill

ion

rupe

es)

Financial Years

Economic Value Retained

177.3206.57

271.67

2012-13 2013-14 2014-15

Total


All strategic Economic Decisions are taken by Board of Directors and executed by the Managing Directors, Management Committee and Departmental Heads as the case may be. The economic decision making responsibility with respect to daily business operation are delegated to the Managing Director, Management Committee, Departmental Heads and so on. Management committee forms highest governance body of organization under the aegis of Managing Director. Management committee members are responsible for economic decisions with respect to areas under their purview which are approved by Managing Director and Board of Directors.

At KNPL, Agenda and plans for next �nancial year is decided at the start of year which entails documentation of detailed annual business plan. Based on annual business plan and market trends with respect to currency value, Raw material cost, Energy costs etc., detailed annual budget is conceived by Chief �nancial of�cer of Company which is further approved by Board of Directors. Annual expenditure is divided into two major categories - CapEx (Capital Expenditure) and Revenue Expenditure.

Note: Please refer to �nancial statement in Annual report for FY 2013-14 for more details.In last �nancial year there has been no �nancial assistance received from government.

Raw Materials

Pigments, Extenders and Resins

Organic acids and anhydrides

Solvent oils and fatty acids

Others

Quantity in MT

121686

11884

77844

Rs. in Crores

910.81

129.63

690.31

131.47

Quantity in MT

125722

13551

79906

Rs. in Crores

965.53

135.3

670.5

128.55

FY 2013-14 FY 2014-15

Raw Materials (in %)

Imported

Indigenous

FY 2013-14

36

64

FY 2014-15

40

60

Consumption

Environmental Performance



Environment

KNPL strives to achieve environmental excellence through its holistic approach towards manufacturing. Company is actively pursuing environment and safety agenda to achieve its goals. It believes in achieving manufacturing excellence and generating business value through adoption of environment friendly technologies and processes. Company strives to achieve minimal material losses in its operation to avoid environmental impacts. Apart from continuous monitoring of environmental parameters, it has actively taken strategic decisions to adopt close loop processing with minimal environmental and health impacts. Silo system for powder conveying, pigging system, SCADA process automation etc are examples of major strategic investments.

Last year, company has taken major steps towards increasing contribution of renewable energy in its energy mix. Installation of solar power plants, wind wheeling, biomass based power procurement were some of our key implementations during last year. On energy consumption side, Company is exigent about implementation of energy ef�ciency opportunities. Last year, we have achieved commendable performance in energy front.

Environmental Governance

EHS organogram is represented by below diagram. At KNPL, EHS function takes care of environmental responsibility. All plant environmental initiatives are driven by Plant EHS team. Corporate EHS team drives special projects with respect to environment and safety.

Environment review meetings are conducted on monthly basis at respective plant location where works manager acts as chairperson and EHS head acts as Secretary. EHS review meeting at head of�ce is chaired by Executive Director in presence of VP Supply chain, GM manufacturing, Chief Manager EHS & chief manager - Central Engineering. It happens on every alternate month. Top management provides their invaluable inputs during EHS review meeting and guides EHS initiatives.

Organogram for Environmental Governance

EHS Organogram

General Manager -Technical

Chief Manager -Technical

General ManagerManufacturing

Executive Director

Vice President -Supply Chain

Chief Manager EHS

Of�cer EHS

Fireman

Vice President -Technical

HOD EHS, Plants

Works Manager


Materials

Paint is a mixture of binder, pigment, additive and solvents. Material cost constitutes major proportion of paint cost. The company has adopted close loop manufacturing processes in its new manufacturing facilities to reduce material losses. Company has proactively taken steps towards improvement in material ef�ciency in its manufacturing through adoption of cleaner technologies and close loop

material addition facilities. Further we are keen on recovery and reuse of material losses. We have installed advanced systems like silo system for automatic powder addition, pigging system, process control through SCADA etc. to optimize process parameters and avoid losses therein.

Water Management

In Indian scenario, there has been increasing stress on surface and groundwater resources. Water scarcity can pose major sustainability challenge for tomorrow�s business. At KNPL we are focused on ef�cient water management at our manufacturing facilities. Our efforts are driven towards reduction of non product water consumption at sources. Water consumption is tracked daily at source to optimize water usage and address deviations on regular basis. We have installed zero water discharge plants at all our major manufacturing facilities. Whole treated water is reused in processes. Sewage treated water is reused for toilet �ushing, gardening purpose. RO (Reverse Osmosis) permeate water is reused in cooling tower and utilities. Distilled water from multiple effect evaporator is reused in processes and utilities. Last year we achieved around 9.7% reduction in water usage in KL/Ton of FG as shown in adjacent graph.

1.75

1.58

1.45

1.5

1.55

1.6

1.65

1.7

1.75

1.8

FY2013-14 FY2014-15

Wat

er u

sage

in K

L/ T

on o

f FG

Water usage in KL/Ton of FG

Adjacent graph shows rain water harvested at Lote plant. Collected rain water is used for non production purpose at Lote. At other plants we have ground water recharge system for collected rain water.

Water Sources

SIDC (State Industrial Development Corporation)

Ground Water

Volume of water Consumed (in Cu. Meters)

146795

187955

Quantity of rain water harvested

Rai

nwat

er h

arve

sted

(in C

u.m

)

0

1000

2000

3000

4000

5000

6000

Timeline

2615

2009

2964

2010

3952

2011

4511

2012

5543

2013 2014

3609


Ef�uents and Waste

Ef�uent treatment: Lote, Bawal and Hosur manufacturing facilities are zero discharge facilities. Domestic ef�uent is separately treated in Sewage treatment plant which is reused for Toilet �ushing and gardening purpose inside plant. Industrial ef�uent generated from processes such as �oor washing, equipment cleaning etc. is treated in ef�uent treatment plant followed by treatment through RO and Multiple evaporator system. RO permeate is reused in processes such as make up water for cooling tower, boilers etc. Puri�ed water generated after �nal stage of multiple effect evaporator is also reused in processes to ensure 100% recycling of treated water.

Air Quality Management:

Ambient air Quality is monitored on periodic basis at different locations for all manufacturing units of KNPL. Air quality monitoring exercise includes measurement of ambient air quality, Stack emissions, VOC level at shop �oor, Noise level etc. at designated locations in our factories. Air pollution control devices such as cyclones, scrubbers etc. have been installed at stacks to �lter our air emission before discharge into ambient atmosphere. Pollutant load discharged through our factories is well within statutory limits. Dust collectors have been installed at Powder charging area to control emissions on shop �oor and to enable reuse of collected powder. To ensure adequate ventilation on shop �oor, our work areas are installed with Forced Draft Ventilation system. Fume extractor system has been installed at shop �oor in critical areas to control VOC at work place. Company has installed close loop processing to the extent possible to avoid any air emissions into atmosphere during paint processing. The refrigeration/chilling systems used for process cooling and central air conditioning systems in KNPL do not contain ozone depleting substances (ODS). There is no emission of Ozone depleting substances in the atmosphere due to KNPL operations.

Air Quality Parameters

Ambient Air Quality (in ug/Nm3)

19 29

2332

53

50

0

20

40

60

80

100

120

SO2 NOx PM10

Am

bien

t Air

Qua

lity

(in u

g/C

u.m

)

Statutory limit FY 2014‐15


Waste Management:

At KNPL we believe that wastes are resources which are not put to proper use. So KNPL waste management approach is focused on process optimization to reduce waste at source and technology upgradation to reduce environmental impacts. Major hazardous wastes generated from our manufacturing sites are Distillation residue, ETP Sludge, Mixed Paint, off speci�cation paint etc. These wastes are being disposed off as per statutory requirement to authorized Treatment and disposal facilities. No waste is transported internationally from our sites. In last �nancial year, there have not been any cases of signi�cant spillage at any of our manufacturing site.

Efforts are driven along following key themes to optimize material usage during process and reduce waste generation at source.

No

Usage of reusable SS (Stainless steel) mesh

Process control with the help of SCADA technology

Implementation of pigging system for cleaning of piping system after batch

Installation of zero hold up �lters

Nitrogen purging in pipelines for critical operations

Installation of advanced technology leakage free pumps

Installation of powder silo system for powder addition (Close loop material addition)

Improved and sustained focus on CLTI (Cleanliness, Lubrication, Tightening and Inspection)

NPI (Non Production Issue) monitoring at source

Batch-wise variance monitoring

Themes

Waste reduction through reduction of material losses during manufacturing

Optimization of process parameters,Material and energy consumption

Recovery of material sticking losses thereby reducing material wastage at source.

Help in recovering whole material from �lter to reduce material losses in the process

Reduce and recovery of sticking losses with respect to paint and resin

Helped to maintain Spillage free shop �oor and to reduce material losses during manufacturing

Eliminated workmen exposure to powder dusting and powder losses

Reduction in generation of contaminated cotton waste

Waste reduction through reduced spillage

Optimization of material for non production purpose

Bene�ts

Implementation of Cleaner technologies and cleaner processes

1

2

3

1

2

3

4

5

6

7

Process optimization


KNPL currently don�t reclaim packing material generated from products sold. But the company promotes reuse of packing containers of paint generated after paint application by its customers.

Financial Year

Hazardous waste in Kg/ Ton of finished g oods

3.63

3.1 3.1

2.8

3

3.2

3.4

3.6

3.8

FY 2012 -13 FY 2013 -14 FY 2014 -15

In the continuous endeavor to further reduce the impact of painting on the environment, Nerolac pioneered a simple and innovative project ��U Can' which aims to make our paint cans eco-friendly by converting them into attractive �ower pots. Nerolac printed stickers with different themes and designs which can be simply wrapped around used paint cans and then by just removing the handle and making a hole at the bottom, the plastic cans can be turned into beautiful �ower pots. The message was spread through print ads and other media. Nerolac Home Painting Service crew was trained to turn the used cans to pots after painting. Stickers were also distributed via paint retailers. The activity made recycling easy, accessible, fun and above all a beautifully rewarding exercise.

Energy Management

There has been increasing focus on energy security in Indian scenario as country is dependent on fossil fuels to ful�ll its most of the energy needs. Energy scarcity is impending in Indian scenario. Over last few years, Indian government has been keen in its approach to encourage energy ef�ciency and adoption of renewable energy through various policies and mechanisms. KNPL has been following two pronged approach to overcome this sustainability challenge. Firstly, it has focused on improvement in energy ef�ciency through energy consumption monitoring and adoption of cleaner technologies. Secondly, it has been proactively adopting renewable energy to ful�ll some of its energy requirement.


Speci�c Power consumptionMethod of Calculation: Speci�c power consumption is ratio of power consumed to total paint production at respective facility during speci�ed period. Power consumption is sum of power received from grid (i.e. state electricity board) and power generated from DG set at respective manufacturing facility.

Speci�c Fuel consumptionMethod of Calculation: Speci�c fuel consumptiaon is ratio of fuel (i.e. HSD) consumption in boilers to total paint production at respective facility during speci�ed period.

1616 16

0.00

5.00

10.00

15.00

20.00

FY 2012 -13 FY 2013 -14 FY 2014 -15

in L

T/T

on

ne

of

FG

Fuel (High Speed Diesel) Consumption(in LT/Tonne of �nished goods)

134

151148

125.00

155.00

KW

H/T

on

ne

of

FG

Electricity Consumption (in KWH/Tonne of Finished Goods)

FY 2012 -13 FY 2013 -14 FY 2014 -15

To be Implemented*

Implemented*

5

8

2500

2600

1

2

Total estimated annual CO eq saving2

Number of ProjectsStage of DevelopmentSr. No.

Summary of energy saving projects is as given below along with stage of development.

Method of Calculation: Above power consumption includes power received from grid (State electricity Board) as well captive power generation from DG set at respective locations.

34,967

42,14244,136

0

10000

20000

30000

40000

50000

Un

its

( '0

00 K

WH

)

Power Consumption across KNPL (in '000 KWH)

FY 2012 -13 FY 2013 -14 FY 2014 -15

Following energy saving initiatives were implemented in last �nancial year

Implementation of energy ef�ciency initiatives

Replacement of CFL /incandescent lights with LED lighting at NEROLAC HOUSE

Replacement of existing Metal Halide street lamps with LED at NEROLAC HOUSE

1599006

8500

2000

1

2

3

Energy saving during FY 2014 -15 (in KWH)Description of ActivityNo.

Renewable energy initiatives implemented in last �nancial year are as below

Units of energy harnessed

Type of Renewable energy

Installation of Sola tubes to utilize Solar radiations for lighting purpose at warehouses

Installation of solar power plant

Procurement of power through Wind wheeling agreement

Renewable energy No.

Third party power procurement: We migrated from HSD �red DG�s to Biomass based power generation

Usage of Biodiesel as a fuel in boilers to replace conventional source of energy i.e. High speed Diesel

Solar

Solar

Biomass

Wind

Biomass

1

2

3

4

5

10000 KWH

125058 KWH

653453 KWH

735000 KWH

600073 Litres of biodiesel

Other Initiatives which are to be implemented and planned for this �nancial year are as follows

No. Activity Type

Installation of solar power plant of capacity 400 KW

Replacement of CFL with LED lights

Installation of constant speed variable torque motors

Upgradation of existing air conditioning system using VRF technology

Implementation of energy audit actionables at Hosur

Description of Activity

Low Carbon energy purchase

Energy Ef�ciency: Building services

Energy Ef�ciency: Processes

Energy Ef�ciency: Building services

Energy Ef�ciency: Processes

1

2

3

4

5


GHG Emissions

Biodiversity

All operational facilities are located in the State Industrial Development Corporation area. None of these sites are located near any protected area or area of high biodiversity or ecologically fragile area. There are no signi�cant adverse impacts on biodiversity because of KNPL activities. All of our expansions projects are have been undertaken after due environmental impact assessment (EIA) and stakeholder consultation as applicable. There is no IUCN Red listed species affected by any of the KNPL�s activities. There have been no signi�cant initiatives from KNPL for protection or restoration of any biodiversity rich habitat. But our initiatives towards tree plantation have created manmade small eco system which serves as habitat for native fauna.

KNPL sustained GHG emission intensity despite capacity expansion and addition of intermediate manufacturing facilities. Focused approach towards energy management in the company has led to ef�cient energy usage. It has not only helped to reduce environmental impacts but also to achieve cost saving objectives.

Scope 1 GHG Emissions: Direct GHG emissions

� Captive power generation from DG� HSD consumption in boilers

1

Scope of DataActivitiesTypes of GHG Emissions accounted

Sr. No.

Scope 2 GHG Emissions: Indirect GHG emissions

� Power imported from grid

Scope 3 GHG Emissions: Other Indirect emissions

� Product transport� Raw material transport� Employee commuting� Business travel

KNPL India Operations

KNPL India operations

KNPL India operations

2

3

Methodology followed

Company has been accounting GHG emissions through its customized GHG accounting tool, wherein various data such as fuel and electricity consumption, transportation etc data is collated and further converted to CO2 emissions. Conversion factors used for GHG footprint calculation are taken from IPCC default emission factors, CEA (Central Electrical Authority) database etc.

Following table gives GHG emissions from KNPL India operations.

Financial Year

2012-13

2013-14

Scope 1

10595

11033

Scope 2

24599

29448

Scope 3

5818

4124

Total Emissions (in MT)

41012

44605

Emission per MT of Production

0.21

0.21

0.214792951203399888112014-15



EmployeeInvestment


KNPL Employees

Total KNPL manpower 2388

KNPL Employee based on Gender

98%

2%

Male

Female

57%

13%

30%

KNPL Manpower Categoriza�on

Executives Managers Operators


Bene�ts provided to Full Time Employees

Short term Employee Bene�ts:

Employee bene�ts payable to an employee within a span of twelve months of service are classi�ed as short term employee bene�ts. These bene�ts include salaries and wages, bonus, ex-gratia etc. These are recognized as an expense at an undiscounted amount in the statement of pro�t and loss of the year in which the related service is rendered.

Post Employment Bene�ts:

Provident and Family Pension Fund The eligible employees of the company are entitled to receive post employment bene�ts in respect of provident and family pension fund, in which both the employees and the company make monthly contributions at a speci�ed percentage of the employees� eligible salaries. The contributions are made to the provident fund managed by the trust set up by the company or to the Regional provident fund commissioner (RPFC) which is charged to the statement of pro�t and loss as incurred.

SuperannuationThe eligible employees are entitled to receive post employment bene�ts in respect of superannuation fund in which the company makes annual contribution at a speci�ed percentage of employees� eligible salary. The contributions are made to the Life Insurance Corporation of India (LIC).

GratuityKNPL also has an obligation towards gratuity, a de�ned bene�t plan covering eligible employees.

Other Bene�tsThe Company provides for encashment of leave or leave with pay subject to certain rules. The employees are

entitled to accumulate leave subject to certain limits for future encashment.

For eligible employees, following bene�t schemes are provided.

In last �nancial year, two of our employees availed maternal leave bene�ts.

Employees� Group Accident PolicyPMH (Medical Insurance)Holiday home facilityMaternal leave bene�ts

Mobile expenses reimbursements Company leased accommodation Financial Assistance for EducationEmployee Referral Program bene�tEmployees� Group Insurance Policy


We, at Nerolac, are committed to create a learning environment which is business � centric whereby the employees are developed as leaders and are prepared to meet current & future business objectives through deployment of a �pull� strategy rather than a �push� strategy. Employees are encouraged to broaden their horizon through training programmes as well as other employee engagement forums such as Kaizen competitions, Performance review process, monthly review of section performance etc.

Categories of Training:

Induction Training Induction training is given as an initial preparation to new hires upon taking up a post.

Competency based TrainingCompetency Based Training emphasizes on enhancing the competencies required by a person for a particular job and position, in order to achieve individual growth and organizational goals.

Functions speci�c Training Functional Training aims at upgrading the employees� functional knowledge to keep up with the ongoing internal and external changes, which affects the day to day working in the short run and the individual & organizational growth in the long run.

Skill Development programSkill Development programs aims at upgrading and multi skilling the employees� current skill level by means of Work Instructions, Standard Operating Procedures and Single Point Lessons.

Advanced Sales TrainingSales Training programs aims at training and upgrading the Frontline Sales personnel to develop the face-to-face selling skills which are needed to promote an open exchange of information thereby reaching to mutually bene�cial sales agreements.

During last Financial year, training in terms of man-hours per employee has been calculated as 13.38 Man-hours/employees. KNPL employees receive feedback on their performance at regular intervals through HRSCAPES� in house KNPL IT portal. HRSCAPES also facilitates communication with respect to Key Result Areas, attendance, payroll and performance feedback related activities. All policies are communicated through HRSCAPES IT portal.

Whistle blower policy and code of conduct of the company have been shared on HRSCAPES. During last �nancial year, there have been no incidents of discrimination.

Training and Education


KNPL is an equal opportunity employer. All recruitment for senior positions is based on talent and suitability of candidate with respect to a job vacancy. But local candidates are preferred in case their portfolio matches with job requirement.

As a policy, the Company keeps wages of its employees above the standard entry-level minimum wages �xed by the State Government. There is no gender differentiation in the Company�s wages.

We strictly comply with provisions of all applicable acts. All new joinees are given training on KNPL code of conduct as well as whistle blower policy. Security personnel at our site and head of�ce are trained in required policies and procedures of organization.

Occupational Health and Safety

Occupational Health and Safety contributes to business through its unique portfolio of accident prevention, ensuring healthy working conditions and Safety awareness. There has been zero lost time injury across KNPL during last three years.

All of our manufacturing facilities are OHSAS 18001 and ISO 14001 certi�ed. Safety audit is important part of our OHS management system. Types of safety audit at KNPL are as below �

Safety audit by Corporate EHSInterplant Safety Audit

Audit by Kansai Paint, Japan � Safety Team

Audits by KNPL customers External safety audit

Today�s Mantra of operational excellence passes through safety excellence. With this objective, the company has sustained its focus on preventive measures in ensuring safety at workplace. This year�s key efforts were driven by increased frequency of KYT (Kiken Yochi Training � Hazard prediction), implementation of Pokayoke to ensure static charge elimination & safety audits at plant. KYT sessions have helped to address actual hazards at actual place through participation of employees. Last �nancial year, EHS gallery was set up at Hosur plant to demonstrate safety hazards and countermeasures in practical and scienti�c manner. In coming year we intend to develop EHS laboratory cum experience centre to help employees understand safety hazards in scienti�c manner and raise awareness level further. Elimination of static charge accumulation is another major safety agenda for which efforts are being taken towards development of mistake-proo�ng during chemicals/raw material handling.


As all of our facilities are OHSAS 18001 and ISO 14001 compliant, hazards in the processes are minimized to acceptable level as tracked by risk register at each plant. Speci�c control mechanisms like isolation, Forced draft ventilation, machine guarding, use of Personal protective equipments etc have been put in place. Apart from this workers are trained on safety and environmental aspects of their daily operations. It is ensured that operating conditions at shop �oor are safe for operation and workers are not exposed to any risk of diseases related to occupation. We have separate occupational health centre at each of our plants to address health problems if any and to carry out periodic health checkup of employees.

At KNPL, we believe health and safety is everybody�s responsibility. Especially we encourage contribution from our workers to drive continual improvement in this aspect. Composition of joint management-worker health and safety committee is as speci�ed in factories act, 1948 and applicable factories rules. Safety committee at each location consists of equal number of representation from operators and management. To ensure worker involvement, Health and Safety guidelines are also included in formal agreements with union at plant locations. Operators are expected to extend full co-operation in ensuring 5S and Safety on the shop-�oor and in the premises of factory. Participation of workers in safety training (On the Job or Classroom training) is mandatory. Apart from safety meetings at plant, Progress in safety aspects & Initiatives is discussed with top management during periodic safety committee meeting at head of�ce wherein major safety investments and critical strategic safety related agendas are discussed.

Company is taking concrete steps to further strengthen its safety and achieve safety excellence. As a part of management development program, EHS (Environment Health and Safety) representative from KNPL visited Kansai Paints, Japan (KPJ) for knowledge up-dation in safety domain. Based on learnings during KPJ visit, Danger experience program has been introduced at KNPL to help employee experience past safety incidents across KNPL. Danger experience program is based on Japanese special training program which covers past accidents/incidents and their root causes along with its practical demonstration.

KNPL Incident Management System: KNPL achieved 15.24 million man-hours without any lost time injury (LTI). Continuous efforts to eliminate workplace hazards, accident preventive and corrective measures have enabled company to reduce incident at workplace. All types of incidents are investigated thoroughly to attack root causes and �CAPA - Corrective and Preventive action� is prepared and implemented across all plants as per applicability. Further to ensure horizontal deployment of CAPA and learning, it is circulated across all plants through Knowledge Management portal and CAPA audits are carried out by corporate EHS team periodically to ensure their sustenance.

Incidents at KNPL manufacturing facilities are divided among following heads

Activity Type

Near Miss (in Nos)

Reportable Injuries

Lost time injuries

Lost work days

Minor Injuries

Man hours worked (in Lakhs)

Frequency Rate

FY 2012-13

15

0

0

0

12

51.52

0

FY 2013-14

12

0

0

0

20

66.38

0

FY 2014-15

9

0

0

0

6

59.05

0

Social Performance

Corporate Social Responsibility


Social stewardship is a key factor along with the sustained economic performance for holistic business growth. Increasingly aware of the need of Sustainable development, we believe, a sustainable business is a business that people value: its employees value it as a great place to work; its customers value it as a great business to do business with; community values it as a great neighbor; and as a result other stake holders too value it as a business to which it�s worth associating.

KNPL lends a helping hand to the society in which it operates, in the areas of health, education, environment preservation and community development. The Corporate Social Responsibility (CSR) programs taken up by KNPL are pertinent in the current scenario and have been supported by employee volunteers at different locations wherever viable. Employee involvement in these initiatives is bene�cial as it builds up a positive image for the company, and creates a sense of pride amongst them.

Management Commitment and Support

The Company has constituted a CSR committee consisting of independent and non independent directors with majority being independent. The CSR Committee with the help of other Directors and Vice Presidents and Senior Management personnel, set the direction and framework for the CSR programme. They lead by example through their participation in the programmes, and encourage participation amongst employees.

CSR Process

In the beginning of �nancial year, the Annual plan of the CSR initiatives is �nalized. The plan covers details of all the activities to be carried out along our key focus areas � Preventive healthcare and sanitation, Promoting education, Community development, Environmental sustainability and Livelihood enhancement. The activities are evaluated for its relevance and a budget/ schedule is assigned. The locations and corporate of�ce carry out the planned programs in the scheduled quarter by involving external agencies or on their own. The activities are reviewed periodically and are documented after completion.

Our focus areas for CSR programs

Themes/Areas of CSR activity

APreventive Health Care and SanitationThe objective is to provide facilities that improve general health condition & sanitation of the general masses, particularly people residing in the vicinity of our plants and the Painters.

B Promoting EducationOur goal is to encourage & support educational institutes to meet their requirements. We also try to focus on educating girl child & children residing in nearby villages in the vicinity of our manufacturing units.

C Rural / Community Development Our goal is to provide basic facilities to the community settled in the vicinity so as to improve their basic living thereby ful�lling the role of being a good Corporate Citizen.

D Ensuring Environmental Sustainability It is our continuous endeavour to support preservation of resources like water & the green cover and provide clean environment.

E Livelihood Enhancement Programs are undertaken to impart skill development Training, including on Paints and Painting to unemployed youth to create Job opportunities.


Program wise CSR details 2014-15

Sr. No.

CSR Project/Activity Sector in which Project is covered

Location of Projects / Programs

Amount Outlay

(Budget) Project or

Program Wise

(` in Lacs)

Actual Amount

Spent on the Projects or Programs (` in Lacs)

Cumulative Expenditure

Upto the Reporting

Period (` in Lacs)

Actual Amount

Spent : Direct or Through

Agency (` in Lacs)

Programme on environment for school students

Ensuring Environmental Sustainability

Bawal 0.50 0.41 0.41

2. Green Belt off the highway and approach road to the lote plant


Lote 10.00 0.00 0.00

3. Roundana Beutication (2 Nos.)


Hosur 8.00 8.10 8.10

Sub-total 18.50 8.51 8.51

1. Training on Painting (At SBI Trg. Centre, Kendrapada)

Livelihood Enhancement Program

HO 5.00 0.47 0.47

2. With MITCON. Training on Painting

Livelihood Enhancement Program

HO 30.00 6.62 6.62

Sub-total 35.00 7.09 7.09

1. Borewell Preventive Health Care & Sanitation

Bawal 3.00 2.45 2.45

2. Toilet facilities Preventive Health Care & Sanitation

Bawal 4.00 2.29 2.29

3. Health Check up (Eye Camp)

Preventive Health Care & Sanitation

Bawal 1.00 0.90 0.90

4. Borewell Preventive Health Care & Sanitation

Lote 2.00 1.70 1.70

5. Medical Camps Preventive Health Care & Sanitation

Lote 2.00 1.79 1.79

6. Health Camps Preventive Health Care & Sanitation

Hosur 2.00 0.67 0.67

7. Health Camps Preventive Health Care & Sanitation

Jainpur 2.00 1.47 1.47 1.47

8. Medical Camps at Depots


HO 35.00 25.48 25.48 25.48

9. Aid to Shanmukhanand Medical Centre- for Dialysis and Eye care


HO 20.00 20.00 20.00 20.00

10. Free Eye Surgeries and running of hospital


Sankara Nethralaya–Chennai & South India

100.00 75.00 75.00 75.00

11. Jeevanjyoti The Healing Touch Project


Dr. Hedgewar Rugnalaya, Aurangabad – Maharashtra State

100.00 75.00 75.00 75.00

Sub-total 271.00 206.75 206.75 206.75

A. 1.

B.

C.

0.41

0.00

8.10

8.51

0.47

6.62

7.09

2.45

2.29

0.90

1.70

1.79

0.67


Implementing Agencies for CSR activities:� Smile Foundation� MITCON Consultancy & Engineering Services� State Bank of India � Odisha [Lead Bank and Regional Rural Bank Development Local HO]� Sachetan Society for Research [Bawal]� Vishwakalyan Arogya Kendra [Lote]� Lioness Club of Chiplun [Lote]� Arogya Seva Hospital [Hosur]� PVK Constructions Limited [Hosur]� Aakriti Civil Constructions Limited [Lote]� Chemfab Engineering [Bawal]

Sr. No.

CSR Project/Activity Sector in which Project is covered

Location of Projects / Programs

Amount Outlay

(Budget) Project or

Program Wise

(` in Lacs)

Actual Amount

Spent on the Projects or Programs (` in Lacs)

Cumulative Expenditure

Upto the Reporting

Period (` in Lacs)

Actual Amount

Spent : Direct or Through

Agency (` in Lacs)

1. Computer Lab/Science Lab/Library

Promoting Education Bawal 3.00 2.56 2.56 2.56

2. Construction of a School room

Promoting Education Lote 10.00 10.00 10.00 10.00

3. Science Lab, equipments to schools

Promoting Education Lote 5.00 5.05 5.05 5.05

4. Project e-Teach. English Learning for Govt. School Students

Promoting Education HO 1.00 1.00 1.00 1.00

Sub-total 19.00 18.61 18.61 18.61

1. Bus Shelter Rural Development / Community Development

Bawal 4.00 3.04 3.04 3.04

2. Bus Shelter in Awashi Rural Development / Community Development

Lote 4.00 0.28 0.28 0.28

3. Road Repair in nearby viscinity

Rural Development / Community Development

Jainpur 73.50 73.78 73.78 73.78

4. Eradicating hunger and malnutrition — J&K


HO 60.00 57.79 57.79 57.79

5. Integrated Rural Development Project


Bhansali Trust, Mumbai – all over India

100.00 75.00 75.00 75.00

Sub-total 241.50 209.89 209.89 209.89

585.00 450.85 450.85 450.85

E.

D.


Snapshots of Corporate Social Responsibility at KNPL

Training to unemployed youth in Kendrapada, Odisha Roundana beauti�cation project in the vicinity of Hosur plant

Distribution of Computers and Lab equipments to schools at Lote

Environmental awareness workshop for students of school near Bawal

Bus shelter for passengers at Rewari�s most busiest circle �Nai wali chowk�


All employees are checked for background details and ensured that child labours are not employed. There is no risk of forced or compulsory labour with respect to any of our manufacturing facility. All new joinees are given training on KNPL code of conduct as well as whistle blower policy. All KNPL policies regarding code of conduct and ethics have been well communicated through HRSCAPES portal.

KNPL is an equal opportunity employer and there have not been any incidents of discrimination in KNPL. KNPL encourages freedom of association and collective bargaining. All of our KNPL plants have labour unions to facilitate collective bargaining process. All operators are covered by collective bargaining agreement. There have not been any grievances regarding human rights impacts �led at any of KNPL locations. There have not been any incidents of violation of rights of indigenous people.

Human Rights

In case of decorative products, KNPL has been promoting health impacts of paint in market to make customers aware of precautionary measures to be taken while choosing and applying paint. KNPL has pioneered �Healthy Home Paints� concept. It has voluntarily removed heavy metals like lead from its formulation to make products eco friendly. Since last few years, KNPL products have been recognized as low VOC paints in market.

For product information and labeling we are complying with Legal Metrology (Packaging) Rules, 2011. Other than the basic requirements stipulated in these rules, we also provide following product related information to our customers.

Content, with regard to substances that might produce an environmental/Social impactsSafe use of ProductEnvironmental/ Social impact of product

KNPL follows guidelines provided by �The Advertising Standard Council of India� for its marketing communications voluntarily. In case of Industrial products, Material Safety Data sheets are provided to all Industrial paint customers. These MSDS meet REACH guidelines and other regulatory norms. It includes suf�cient information on safe handling of materials and steps to be followed in case of emergency situations. All �nished products are appropriately labeled with health and safety precautionary information and its disposal methods as per applicable norms.

To track customer satisfaction, KNPL conducts customer feedback survey to measure customer satisfaction. Customer survey results helps to understand customer needs and expectations. Customer survey is conducted by a professional agency.

There have not been any incidents of non compliance with regulations and voluntary codes concerning product and service information and labeling. KNPL is in strict compliance with legislations related to product formulations and sale of banned products. No �nes or penalties are incurred considering KNPL compliance with all legislation related to products and services. In last �nancial year, there have not been any complaints regarding breach of customer privacy and losses of customer data.

Product Responsibility


Membership

Some of the important memberships of KNPL:

National Safety Council

Indian Chemical Council

Labour law Reporter

Indian Paint Association

Bombay Stock Exchange

Basix Forex and Financial

Indian Material Management

Company Law Institute of India

Bombay Management Association

Confederation of Indian Industries

The Employers Federation of India

Business performance Measurement

National Securities Depository limited

Society of Indian Automobile Institute

Industrial Waste management Association

Institute of Company Secretaries of India-CCGRT

National Association of Corrosion Engineers (NACE)

The Society for Protective Coatings (SSPC)


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e C

hair

of th

e hi

ghes

t gov

erna

nce

body

is a

lso

an e

xecu

tive

of�c

er (

and,

if s

o, h

is o

r he

r fu

nctio

n w

ithin

th

e or

gani

zatio

n�s

man

agem

ent a

nd th

e re

ason

s fo

r th

is a

rran

gem

ent)

.17

4-40

Rep

ort t

he n

omin

atio

n an

d se

lect

ion

proc

esse

s fo

r th

e hi

ghes

t gov

erna

nce

body

and

its

com

mitt

ees,

and

the

crite

ria

used

for

nom

inat

ing

and

sele

ctin

g hi

ghes

t gov

erna

nce

body

mem

bers

,17

17-1

9

12

GR

I Par

amet

er

GR

I Gu

idel

ines

Sta

keh

old

er E

ng

agem

ent

4-24

4-25

4-23

Pro

vide

a li

st o

f sta

keho

lder

gro

ups

enga

ged

by th

e or

gani

zatio

n

Rep

ort t

he b

asis

for

iden

ti�ca

tion

and

sele

ctio

n of

sta

keho

lder

s w

ith w

hom

to e

ngag

e

4-26

Rep

ort t

he o

rgan

izat

ion�

s ap

proa

ch to

sta

keho

lder

eng

agem

ent,

incl

udin

g fr

eque

ncy

of e

ngag

emen

t by

type

and

by

stak

ehol

der

grou

p, a

nd a

n in

dica

tion

of w

heth

er a

ny o

f the

eng

agem

ent w

as u

nder

take

n sp

eci�

cally

as

part

of t

he r

epor

t pr

epar

atio

n pr

oces

s.

24-2

9

Rep

ort s

igni

�can

t cha

nges

from

pre

viou

s re

port

ing

perio

ds in

the

Sco

pe a

nd A

spec

t Bou

ndar

ies

Om

issi

on

Pag

e N

o.

24-2

9

24-2

9

GR

I Par

amet

er

Om

issi

on

GR

I Gu

idel

ines

P

age

No

.

Rep

ort t

he fr

eque

ncy

of th

e hi

ghes

t gov

erna

nce

body

�s r

evie

w o

f eco

nom

ic, e

nviro

nmen

tal a

nd s

ocia

l im

pact

s, r

isks

an

d op

port

uniti

es

Rep

ort t

he h

ighe

st c

omm

ittee

or

posi

tion

that

form

ally

rev

iew

s an

d ap

prov

es th

e or

gani

zatio

n�s

sust

aina

bilit

y re

port

and

en

sure

s th

at a

ll m

ater

ial A

spec

ts a

re c

over

ed

Rep

ort t

he p

roce

ss fo

r co

mm

unic

atin

g cr

itica

l con

cern

s to

the

high

est g

over

nanc

e bo

dy

Rep

ort t

he n

atur

e an

d to

tal n

umbe

r of

crit

ical

con

cern

s th

at w

ere

com

mun

icat

ed to

the

high

est g

over

nanc

e bo

dy a

nd th

e m

echa

nism

(s)

used

to a

ddre

ss a

nd r

esol

ve th

em.

Rep

ort t

he r

emun

erat

ion

polic

ies

for

the

high

est g

over

nanc

e bo

dy a

nd s

enio

r ex

ecut

ives

Rep

ort h

ow s

take

hold

ers�

vie

ws

are

soug

ht a

nd ta

ken

into

acc

ount

reg

ardi

ng r

emun

erat

ion,

incl

udin

g th

e re

sults

of v

otes

on

rem

uner

atio

n po

licie

s an

d pr

opos

als,

If a

pplic

able

.

Rep

ort t

he r

atio

of t

he a

nnua

l tot

al c

ompe

nsat

ion

for

the

orga

niza

tion�

s hi

ghes

t-pa

id in

divi

dual

in e

ach

coun

try

of s

igni

�can

t op

erat

ions

to th

e m

edia

n an

nual

tota

l com

pens

atio

n fo

r al

l em

ploy

ees

(exc

ludi

ng th

e hi

ghes

t-pa

id in

divi

dual

) in

the

sam

e co

untr

y

Rep

ort t

he r

atio

of p

erce

ntag

e in

crea

se in

ann

ual t

otal

com

pens

atio

n fo

r th

e or

gani

zatio

n�s

high

est-

paid

indi

vidu

al in

eac

h co

untr

y of

sig

ni�c

ant o

pera

tions

to th

e m

edia

n pe

rcen

tage

incr

ease

in a

nnua

l tot

al c

ompe

nsat

ion

for

all e

mpl

oyee

s (e

xclu

ding

the

high

est-

paid

indi

vidu

al)

in th

e sa

me

coun

try.

Des

crib

e th

e or

gani

zatio

n�s

valu

es, p

rinci

ples

, sta

ndar

ds a

nd n

orm

s of

beh

avio

r su

ch a

s co

des

of c

ondu

ct a

nd c

odes

of e

thic

s.

Rep

ort t

he in

tern

al a

nd e

xter

nal m

echa

nism

s fo

r se

ekin

g ad

vice

on

ethi

cal a

nd la

wfu

l beh

avio

r, an

d m

atte

rs r

elat

ed to

or

gani

zatio

nal i

nteg

rity,

suc

h as

hel

plin

es o

r ad

vice

line

s.

4-47

4-48

4-49

4-50

4-51

4-53

4-54

4-55

4-56

4-57

Eth

ics

and

Inte

rgri

ty

17-1

9

12

17-1

9

Not

Rep

orte

d

17

Rep

ort t

he p

roce

ss fo

r de

term

inin

g re

mun

erat

ion.

Rep

ort w

heth

er r

emun

erat

ion

cons

ulta

nts

are

invo

lved

in d

eter

min

ing

rem

uner

atio

n an

d w

heth

er th

ey a

re in

depe

nden

t of m

anag

emen

t. R

epor

t any

oth

er r

elat

ions

hips

whi

ch th

e re

mun

erat

ion

cons

ulta

nts

have

with

the

orga

niza

tion.

4-52

17 17

Not

Rep

orte

d

Not

Rep

orte

d

18-2

1

18-2

1

Rep

ort t

he in

tern

al a

nd e

xter

nal m

echa

nism

s fo

r re

port

ing

conc

erns

abo

ut u

neth

ical

or

unla

wfu

l beh

avio

r, an

d m

atte

rs r

elat

ed

to o

rgan

izat

iona

l int

egrit

y, s

uch

as e

scal

atio

n th

roug

h lin

e m

anag

emen

t, w

hist

lebl

owin

g m

echa

nism

s or

hot

lines

.4-

5818

-21

4-44

4-45

4-46

Rep

ort t

he p

roce

sses

for

eval

uatio

n of

the

high

est g

over

nanc

e bo

dy�s

per

form

ance

and

Rep

ort a

ctio

ns ta

ken

in r

espo

nse

to e

valu

atio

n of

the

high

est g

over

nanc

e bo

dy�s

per

form

ance

Rep

ort t

he h

ighe

st g

over

nanc

e bo

dy�s

rol

e in

the

iden

ti�ca

tion

and

man

agem

ent o

f eco

nom

ic, e

nviro

nmen

tal a

nd s

ocia

l im

pact

s, r

isks

, and

opp

ortu

nitie

s. In

clud

e th

e hi

ghes

t gov

erna

nce

body

�s r

ole

in th

e im

plem

enta

tion

of d

ue d

ilige

nce

proc

esse

s.

Rep

ort t

he h

ighe

st g

over

nanc

e bo

dy�s

rol

e in

rev

iew

ing

the

effe

ctiv

enes

s of

the

orga

niza

tion�

s ris

k m

anag

emen

t pro

cess

es

for

econ

omic

, env

ironm

enta

l and

soc

ial t

opic

s.

4-43

Rep

ort t

he m

easu

res

take

n to

dev

elop

and

enh

ance

the

high

est g

over

nanc

e bo

dy�s

col

lect

ive

know

ledg

e of

eco

nom

ic,

envi

ronm

enta

l and

soc

ial t

opic

s.17

-19

17-1

9

17 17


Spe

ci�c

Sta

ndar

d D

iscl

osur

e

Mat

eria

l Asp

ects

O

mis

sio

ns

Eco

no

mic

Ind

icat

ors

Eco

nom

ic P

erfo

rman

ce

Eco

nom

ic P

erfo

rman

ce

Mar

ket P

rese

nce

Pro

cure

men

t pra

ctic

es

Eco

nom

ic P

erfo

rman

ce

Eco

nom

ic P

erfo

rman

ce

Not

rep

orte

d

Mar

ket P

rese

nce

Indi

rect

Eco

nom

ic im

pact

s

Indi

rect

Eco

nom

ic im

pact

s

Env

iro

nm

enta

l In

dic

ato

rs

Fin

anci

al im

plic

atio

ns a

nd o

ther

ris

ks a

nd o

ppor

tuni

ties

for

the

orga

niza

tion'

s ac

tiviti

es d

ue to

cl

imat

e ch

ange

.

Cov

erag

e of

the

orga

niza

tion'

s de

�ned

ben

e�t p

lan

oblig

atio

ns.

Sig

ni�c

ant �

nanc

ial a

ssis

tanc

e re

ceiv

ed fr

om g

over

nmen

t.

Pro

port

ion

of s

enio

r m

anag

emen

t hire

d fr

om th

e lo

cal c

omm

unity

at s

igni

�can

t loc

atio

ns o

f op

erat

ions

Pro

port

ion

of s

pend

ing

on lo

cal s

uppl

iers

at s

igni

�can

t loc

atio

ns o

f ope

ratio

n

Des

crip

tio

n

Dire

ct e

cono

mic

val

ue g

ener

ated

and

dis

trib

uted

, inc

ludi

ng r

even

ues,

ope

ratin

g co

sts,

em

ploy

ee c

ompe

nsat

ion,

don

atio

ns a

nd o

ther

com

mun

ity in

vest

men

ts, r

etai

ned

earn

ings

, an

d pa

ymen

ts to

cap

ital p

rovi

ders

and

gov

ernm

ents

.

Ran

ge o

f rat

ios

of s

tand

ard

entr

y le

vel w

age

com

pare

d to

loca

l min

imum

wag

e at

sig

ni�c

ant

loca

tions

of o

pera

tion.

Dev

elop

men

t and

impa

ct o

f inf

rast

ruct

ure

inve

stm

ents

and

ser

vice

s pr

ovid

ed

prim

arily

for

publ

ic b

ene�

t thr

ough

com

mer

cial

, in-

kind

, or

pro

bono

eng

agem

ent.

Und

erst

andi

ng a

nd d

escr

ibin

g si

gni�

cant

indi

rect

eco

nom

ic im

pact

s, in

clud

ing

the

exte

nt

of im

pact

s.

Mat

eria

ls u

sed

by w

eigh

t or

volu

me.

Per

cent

age

of m

ater

ials

use

d th

at a

re r

ecyc

led

inpu

t mat

eria

ls.

Ene

rgy

cons

umpt

ion

with

in th

e or

gani

zatio

n.

Ene

rgy

Con

sum

ptio

n ou

tsid

e of

the

orga

nisa

tion

Ene

rgy

Inte

nsity

Red

uctio

n of

Ene

rgy

cons

umpt

ion

Red

uctio

n in

ene

rgy

requ

irem

ents

of p

rodu

cts

or s

ervi

ces

Tota

l wat

er w

ithdr

awal

by

sour

ce.

Wat

er s

ourc

es s

igni

�can

tly a

ffect

ed b

y w

ithdr

awal

of w

ater

.

Mat

eria

ls

Mat

eria

ls

Ene

rgy

Ene

rgy

Ene

rgy

Ene

rgy

Ene

rgy

Wat

er

Wat

er

GR

I P

aram

eter

EC

1

EC

2

EC

3

EC

4

EC

6

EC

9

EC

5

EC

7

EC

8

EN

1

EN

2

EN

3

EN

4

EN

5

EN

6

EN

7

EN

8

EN

9

Pag

e N

o.

3333 34 55 55

52-5

3

52-5

3

34 34 34 41

40-4

2

41

40-4

2

40-4

2

37 37

Per

cent

age

and

tota

l vol

ume

of w

ater

rec

ycle

d an

d re

used

.

Hab

itats

pro

tect

ed o

r re

stor

ed.

Ope

ratio

nal s

ites

owne

d, le

ased

, man

aged

in, o

r ad

jace

nt to

, pro

tect

ed a

reas

and

are

as

of h

igh

biod

iver

sity

val

ues

outs

ide

prot

ecte

d ar

eas

Des

crip

tion

of s

igni

�can

t im

pact

s of

act

iviti

es, p

rodu

cts,

and

ser

vice

s on

bio

dive

rsity

in

prot

ecte

d ar

eas

and

area

s of

hig

h bi

odiv

ersi

ty v

alue

out

side

pro

tect

ed a

reas

.

Wat

er

Bio

dive

rsity

Bio

dive

rsity

Bio

dive

rsity

EN

10

EN

13

EN

11

EN

12

37 43 43 43


Om

issi

on

sD

escr

ipti

on

M

ater

ial A

spec

ts

GR

I P

aram

eter

P

age

No

.

Num

ber

of IU

CN

Red

Lis

t spe

cies

and

nat

iona

l con

serv

atio

n lis

t spe

cies

with

hab

itats

in a

reas

af

fect

ed b

y op

erat

ions

, by

leve

l of e

xtin

ctio

n ris

k.

Dire

ct G

HG

Em

issi

ons

(Sco

pe 1

)

Ene

rgy

Indi

rect

GH

G E

mis

sion

(S

cope

2)

Oth

er In

dire

ct G

HG

Em

issi

on (

Sco

pe 3

)

GH

G E

mis

sion

inte

nsity

Red

uctio

n of

GH

G E

mis

sion

Em

issi

ons

of o

zone

-dep

letin

g su

bsta

nces

by

wei

ght.

NO

x, S

Ox,

and

oth

er s

igni

�can

t air

emis

sion

s by

type

and

wei

ght.

Tota

l wat

er d

isch

arge

by

qual

ity a

nd d

estin

atio

n.

Tota

l wei

ght o

f was

te b

y ty

pe a

nd d

ispo

sal m

etho

d.

Tota

l num

ber

and

volu

me

of s

igni

�can

t spi

lls.

Wei

ght o

f tra

nspo

rted

, im

port

ed, e

xpor

ted,

or

trea

ted

was

te d

eem

ed h

azar

dous

und

er th

e te

rms

of th

e B

asel

Con

vent

ion

Ann

ex I,

II, I

II, a

nd V

III, a

nd p

erce

ntag

e of

tran

spor

ted

was

te

ship

ped

inte

rnat

iona

lly.

Iden

tity,

siz

e, p

rote

cted

sta

tus,

and

bio

dive

rsity

val

ue o

f wat

er b

odie

s an

d re

late

d ha

bita

ts

sign

i�ca

ntly

affe

cted

by

the

repo

rtin

g or

gani

zatio

n's

disc

harg

es o

f wat

er a

nd r

unof

f.

Bio

dive

rsity

Em

issi

ons

Em

issi

ons

Em

issi

ons

Em

issi

ons

Em

issi

ons

Em

issi

ons

Em

issi

ons

Ef�

uent

s an

d w

aste

Ef�

uent

s an

d w

aste

Ef�

uent

s an

d w

aste

Ef�

uent

s an

d w

aste

Ef�

uent

s an

d w

aste

EN

14

EN

15

EN

16

EN

17

EN

18

EN

19

EN

20

EN

21

EN

22

EN

23

EN

24

EN

25

EN

26

43 43 43 43 43 43 43 38 38 39 39 39 39

Ext

ent o

f Im

pact

miti

gatio

n of

env

ironm

enta

l im

pact

s of

pro

duct

s an

d se

rvic

es

Mon

etar

y va

lue

of s

igni

�can

t �ne

s an

d to

tal n

umbe

r of

non

-mon

etar

y sa

nctio

ns fo

r no

n-co

mpl

ianc

e w

ith e

nviro

nmen

tal l

aws

and

regu

latio

ns.

Sig

ni�c

ant e

nviro

nmen

tal i

mpa

cts

of tr

ansp

ortin

g pr

oduc

ts a

nd o

ther

goo

ds a

nd m

ater

ials

us

ed fo

r th

e or

gani

zatio

n's

oper

atio

ns, a

nd tr

ansp

ortin

g m

embe

rs o

f the

wor

kfor

ce.

Tota

l env

ironm

enta

l pro

tect

ion

expe

nditu

res

and

inve

stm

ents

by

type

.

Per

cent

age

of n

ew s

uppl

iers

that

wer

e sc

eene

d us

ing

envi

ronm

enta

l crit

eria

Sig

ni�c

ant a

ctua

l and

pot

entia

l neg

ativ

e en

viro

nmen

tal i

mpa

cts

in th

e su

pply

cha

in a

nd a

ctio

n ta

ken

Num

ber

of g

rieva

nces

abo

ut e

nviro

nmen

tal i

mpa

cts

�led

, add

ress

ed, a

nd r

esol

ved

thro

ugh

form

al g

ieva

nce

mec

hani

sms

Pro

duct

s an

d se

rvic

es

Com

plia

nce

Tran

spor

t

Ove

rall

Sup

plie

r E

nviro

nmen

t A

sses

smen

t

Sup

plie

r E

nviro

nmen

t A

sses

smen

t

Env

ironm

enta

l gie

vanc

e m

echa

nism

s

EN

27

EN

29

EN

30

EN

31

EN

32

EN

33

EN

34

Per

cent

age

of p

rodu

cts

sold

and

thei

r pa

ckag

ing

mat

eria

ls th

at a

re r

ecla

imed

by

cate

gory

. P

rodu

cts

and

serv

ices

EN

28N

ot r

epor

ted

Not

rep

orte

d

Not

rep

orte

d

Not

rep

orte

d

Not

rep

orte

d

39 39 39

Per

cent

age

and

tota

l num

ber

of s

igni

�can

t inv

estm

ent a

gree

men

ts th

at in

clud

e hu

man

rig

hts

clau

ses

or th

at h

ave

unde

rgon

e hu

man

rig

hts

scre

enin

g.

HR

1In

vest

men

tN

ot r

epor

ted

Tota

l hou

rs o

f em

ploy

ee tr

aini

ng o

n po

licie

s an

d pr

oced

ures

con

cern

ing

aspe

cts

of h

uman

rig

hts

that

are

rel

evan

t to

oper

atio

ns, i

nclu

ding

the

perc

enta

ge o

f em

ploy

ees

trai

ned.

H

R2

Inve

stm

ent

48

Hu

man

Rig

hts

Ind

icat

ors


Mat

eria

l Asp

ects

G

RI

Par

amet

er

Des

crip

tio

n

Tota

l num

ber

of in

cide

nts

of d

iscr

imin

atio

n an

d ac

tions

take

n.

Ope

ratio

ns id

enti�

ed in

whi

ch th

e rig

ht to

exe

rcis

e fr

eedo

m o

f ass

ocia

tion

and

colle

ctiv

e ba

rga

inin

g m

ay b

e at

sig

ni�c

ant r

isk,

and

act

ions

take

n to

sup

port

thes

e rig

hts.

HR

3

HR

4

Non

Des

crim

inat

ion

Free

dom

of a

ssoc

iatio

n an

d co

llect

ive

barg

aini

ng

Ope

ratio

ns id

enti�

ed a

s ha

ving

sig

ni�c

ant r

isk

for

inci

dent

s of

chi

ld la

bour

, and

mea

sure

s ta

ken

to c

ontr

ibut

e to

the

elim

inat

ion

of c

hild

labo

ur.

HR

5C

hild

labo

ur

Ope

ratio

ns id

enti�

ed a

s ha

ving

sig

ni�c

ant r

isk

for

inci

dent

s of

forc

ed o

r co

mpu

lsor

y la

bour

, an

d m

easu

res

to c

ontr

ibut

e to

the

elim

inat

ion

of fo

rced

or

com

puls

ory

labo

ur.

HR

6F

orce

d or

Com

puls

ory

labo

ur

Per

cent

age

of n

ew s

uppl

iers

that

wer

e sc

reen

ed u

sing

hum

an r

ight

s cr

iteria

Sup

plie

r hu

man

rig

hts

asse

ssm

ent

HR

10

Per

cent

age

of s

ecur

ity p

erso

nnel

trai

ned

in th

e or

gani

zatio

n's

polic

ies

or p

roce

dure

s

conc

erni

ng a

spec

ts o

f hum

an r

ight

s th

at a

re r

elev

ant t

o op

erat

ions

. S

ecur

ity p

ract

ices

HR

7

Tota

l num

ber

of in

cide

nts

of v

iola

tions

invo

lvin

g rig

hts

of in

dige

nous

peo

ple

and

actio

ns ta

ken.

Indi

geno

us r

ight

sH

R8

Per

cent

age

and

tota

l num

ber

of o

pera

tions

that

hav

e be

en s

ubje

ct to

hum

an r

ight

s re

view

san

d/or

impa

ct a

sses

smen

ts.

Ass

essm

ent

HR

9

Sig

ni�c

ant a

ctua

l and

pot

entia

l neg

ativ

e hu

man

rig

hts

impa

cts

in th

e su

pply

cha

in a

nd a

ctio

nta

ken

Sup

plie

r hu

man

rig

hts

asse

ssm

ent

HR

11

Lab

ou

r P

ract

ices

Ind

icat

ors

Tota

l num

ber

of n

ew e

mpl

oyee

hire

s an

d em

ploy

ee tu

rnov

er b

y ag

e gr

oup,

gen

der

and

regi

onLA

1

Min

imum

not

ice

perio

d(s)

reg

ardi

ng s

igni

�can

t ope

ratio

nal c

hang

es, i

nclu

ding

whe

ther

it is

sp

eci�

ed in

col

lect

ive

agre

emen

ts.

Labo

ur/M

anag

emen

t re

latio

nsLA

4

Ben

e�t p

rovi

ded

to F

ull T

ime

empl

oyee

s th

at a

re n

ot p

rovi

ded

to T

empo

rary

or

Par

t tim

e em

ploy

ees,

by

sign

i�ca

nt lo

catio

ns o

f ope

ratio

nsE

mpl

oym

ent

LA2

Ret

urn

to w

ork

and

rete

ntio

n ra

tes

afte

r pa

rent

al le

ave,

by

gend

er.

Em

ploy

men

tLA

3

Per

cent

age

of to

tal w

orkf

orce

rep

rese

nted

in fo

rmal

join

t man

agem

ent-

wor

ker

heal

th a

nd

safe

ty c

omm

ittee

s th

at h

elp

mon

itor

and

advi

ce o

n oc

cupa

tiona

l hea

lth a

nd s

afet

y pr

ogra

ms.

O

ccup

atio

nal H

ealth

an

d sa

fety

LA5

Rat

es o

f inj

ury,

occ

upat

iona

l dis

ease

s, lo

st d

ays,

and

abs

ente

eism

, and

num

ber

of

wor

k-re

late

d fa

talit

ies

by r

egio

n.O

ccup

atio

nal H

ealth

an

d sa

fety

LA6

Wor

kers

with

hig

h in

cide

nce

or h

igh

risk

of d

isea

ses

rela

ted

to th

eir

occu

patio

nO

ccup

atio

nal H

ealth

an

d sa

fety

LA7

Om

issi

on

s

Not

rep

orte

d

Not

rep

orte

d

Not

rep

orte

d

Hea

lth a

nd s

afet

y to

pics

cov

ered

in fo

rmal

agr

eem

ents

with

trad

e un

ions

. O

ccup

atio

nal H

ealth

an

d sa

fety

LA8

Pag

e N

o.

48 55 55 55 48 55 55 55

Num

ber

of g

ieva

nces

abo

ut h

uman

rig

hts

impa

cts

�led

, add

ress

ed, a

nd r

esol

ved

thro

ugh

form

al g

rieva

nce

mec

hani

sms

Hum

an r

ight

s gr

ieva

nce

Mec

hani

sms

HR

1255 46

46

49 49 49 49


Tota

l num

ber

of in

cide

nts

of n

on-c

ompl

ianc

e w

ith r

egul

atio

ns a

nd v

olun

tary

cod

es c

once

rnin

g m

arke

ting

com

mun

icat

ions

, inc

ludi

ng a

dver

tisin

g, p

rom

otio

n, a

nd s

pons

orsh

ip b

y ty

pe o

f ou

tcom

es.

Tota

l num

ber

of s

ubst

antia

ted

com

plai

nts

rega

rdin

g br

each

es o

f cus

tom

er p

rivac

y an

d lo

sses

of

cust

omer

dat

a.

Mon

etar

y va

lue

of s

igni

�can

t �ne

s fo

r no

n-co

mpl

ianc

e w

ith la

ws

and

regu

latio

ns c

once

rnin

g th

e pr

ovis

ion

and

use

of p

rodu

cts

and

serv

ices

.

Mar

ketin

g C

omm

unic

atio

ns

Cus

tom

er P

rivac

y

Com

plia

nce

PR

7

PR

8

PR

9

55 55 55

Des

crip

tio

n

Mat

eria

l Asp

ects

G

RI

Par

amet

er

Pag

e N

o.

Om

issi

on

s

Ave

rage

hou

rs o

f tra

inin

g pe

r ye

ar p

er e

mpl

oyee

by

empl

oyee

cat

egor

y.

Trai

ning

and

Edu

catio

nLA

949

Pro

gram

s fo

r sk

ills

man

agem

ent a

nd li

felo

ng le

arni

ng th

at s

uppo

rt th

e co

ntin

ued

empl

oyab

ility

of

em

ploy

ees

and

assi

st th

em in

man

agin

g ca

reer

end

ings

. Tr

aini

ng a

nd E

duca

tion

LA10

47

Per

cent

age

of e

mpl

oyee

s re

ceiv

ing

regu

lar

perf

orm

ance

and

car

eer

deve

lopm

ent r

evie

ws.

Trai

ning

and

Edu

catio

nLA

1147

Com

posi

tion

of g

over

nanc

e bo

dies

and

bre

akdo

wn

of e

mpl

oyee

s pe

r ca

tego

ry a

ccor

ding

to

gend

er, a

ge g

roup

, min

ority

gro

up m

embe

rshi

p, a

nd o

ther

indi

cato

rs o

f div

ersi

ty.

Div

ersi

ty a

nd e

qual

op

port

unity

LA12

17,4

5

Tota

l num

ber

of in

cide

nts

of n

on-c

ompl

ianc

e w

ith r

egul

atio

ns a

nd v

olun

tary

cod

es c

once

rnin

g he

alth

and

saf

ety

impa

cts

of p

rodu

cts

and

serv

ices

dur

ing

thei

r lif

e cy

cle,

by

type

of o

utco

mes

. C

usto

mer

Hea

lth

and

safe

tyP

R2

55

Type

of p

rodu

ct a

nd s

ervi

ce in

form

atio

n re

quire

d by

pro

cedu

res

and

perc

enta

ge o

f sig

ni�c

ant

prod

ucts

and

ser

vice

s su

bjec

t to

such

info

rmat

ion

requ

irem

ents

. P

rodu

ct a

nd s

ervi

ce

labe

ling

PR

355

Tota

l num

ber

of in

cide

nts

of n

on-c

ompl

ianc

e w

ith r

egul

atio

ns a

nd v

olun

tary

cod

es c

once

rnin

g pr

oduc

t and

ser

vice

info

rmat

ion

and

labe

lling

, by

type

of o

utco

mes

. P

rodu

ct a

nd s

ervi

ce

labe

ling

PR

455

Per

cent

age

of s

igni

�can

t pro

duct

and

ser

vice

for

whi

ch h

ealth

and

saf

ety

impa

cts

are

asse

ssed

fo

r im

prov

emen

t

Pro

du

ct R

esp

on

sib

ility

Ind

icat

ors

Cus

tom

er H

ealth

an

d sa

fety

PR

1

Rat

io o

f bas

ic s

alar

y of

men

to w

omen

by

empl

oyee

cat

egor

y, b

y si

gni�

cant

loca

tions

of o

pera

tion

Equ

al r

emun

erat

ion

for

wom

en a

nd m

enLA

1348

Per

cent

age

of n

ew s

uppl

iers

that

wer

e sc

reen

ed u

sing

labo

ur p

ract

ices

crit

eria

Sup

plie

r as

sess

men

t for

la

bour

pra

ctic

esLA

14N

ot r

epor

ted

Sig

ni�c

ant a

ctua

l and

pot

entia

l neg

ativ

e im

pact

for

labo

ur p

ract

ices

in th

e su

pply

cha

in a

nd

actio

n ta

ken

Sup

plie

r as

sess

men

t for

la

bour

pra

ctic

esLA

15N

ot r

epor

ted

Num

ber

of g

rieva

nces

abo

ut la

bour

pra

ctic

es �

eld,

add

ress

ed, a

nd r

esol

ved

thro

ugh

form

al

grie

vanc

e m

echa

nism

sLa

bour

pra

ctic

es g

rieva

nce

mec

hani

sms

LA16

Not

rep

orte

d

Not

rep

orte

d

Sal

e of

ban

ned

or d

ispu

ted

prod

ucts

Mar

ketin

g C

omm

unic

atio

nsP

R6

55

Res

ults

of s

urve

y m

easu

ring

cust

omer

sat

isfa

ctio

nP

rodu

ct a

nd s

ervi

ce la

belin

gP

R5

Not

rep

orte

d



Des

crip

tio

n

Mat

eria

l Asp

ects

G

RI

Par

amet

er

Pag

e N

o.

Om

issi

on

s

Per

cent

age

of o

pera

tions

with

impl

emen

ted

loca

l com

mun

ity e

ngag

emen

t, im

pact

ass

essm

ents

an

d de

velo

pmen

t pro

gram

s

Ind

icat

ors

- S

oci

ety

Loca

l Com

mun

ityS

O1

52-5

3

Ope

ratio

ns w

ith s

igni

�can

t pot

entia

l or

actu

al n

egat

ive

impa

cts

on lo

cal c

omm

uniti

es.

Loca

l Com

mun

ityS

O2

51-5

4

Per

cent

age

and

tota

l num

ber

of b

usin

ess

units

ana

lyze

d fo

r ris

ks r

elat

ed to

cor

rupt

ion.

A

nti C

orru

ptio

nS

O3

55

Com

mun

icat

ion

and

trai

ning

on

Ant

i-cor

rupt

ion

polic

ies

and

proc

edur

esA

nti C

orru

ptio

nS

O4

55

Con

�rm

ed in

cide

nts

of c

orru

ptio

n an

d ac

tion

take

nA

nti C

orru

ptio

nS

O5

55

Tota

l Val

ue o

f Pol

itica

l con

trib

utio

ns b

y co

untr

y an

d re

cipi

ent/B

ene�

ciar

yP

ublic

pol

icy

SO

6 34

Tota

l num

ber

of le

gal a

ctio

ns fo

r an

ti co

mpe

titiv

e be

havi

our,

anti

trus

t, an

d m

onop

oly

prac

tices

an

d th

eir

outc

omes

Ant

i Com

petit

ive

beha

viou

rS

O7

55

Mon

etar

y va

lue

of s

igni

�can

t �ne

s an

d to

tal n

umbe

r of

non

-mon

etar

y sa

nctio

ns fo

r no

n-co

mpl

ianc

e w

ith la

ws

and

regu

latio

ns.

Com

plia

nce

SO

855

Per

cent

age

of n

ew s

uppl

iers

that

wer

e sc

reen

ed u

sing

crit

eria

for

impa

cts

on s

ocie

tyS

uppl

ier

asse

ssm

ents

for

impa

cts

on s

ocie

tyS

O9

Not

rep

orte

d

Sig

ni�c

ant a

ctua

l and

pot

entia

l im

pact

s on

soc

iety

in th

e su

pply

cha

in a

nd a

ctio

n ta

ken

Sup

plie

r as

sess

men

ts fo

r im

pact

s on

soc

iety

S10

Not

rep

orte

d

Num

ber

of g

rieva

nces

abo

ut im

pact

s on

soc

iety

�le

d, a

ddre

ssed

, and

res

olve

d th

roug

h fo

rmal

gr

ieva

nce

mec

hani

smG

rieva

nce

mec

hani

sms

for

impa

cts

on s

ocie

tyS

11N

ot r

epor

ted

When Imagination meets action, you know the future is …€¦ · · 2016-07-28When Imagination...

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Transcript of When Imagination meets action, you know the future is …€¦ · · 2016-07-28When Imagination...