Sustainability at Hero Motocorp

1. CONCEPTS AND APPLICATION IN SUSTAINABILITY
ANALYSIS OF THE SUSTAINABILITY REPORT
OF
HERO MOTOCORP LTD.
Submitted to: Submitted by:
Mr S. Suryanarayan Lokendra Singh Rathore 16020841063
Sukeerti Sharma 16020841088
Vishal Budhiraja 16020841091

2. BUSINESS RESPONSIBILITY REPORT OF HERO MOTOCORP
The National Voluntary Guidelines on Social, Environment and Economic Responsibilities of Business
(NVGs), released by the Ministry of Corporate Affairs, has adopted nine areas of Business Responsibility.

3. GREEN MANUFACTURING INITIATIVES BY HERO MOTOCORP
1. A MISSION TO MAINTAIN HIGH ECOLOGICAL STANDARDS
At Hero MotoCorp, we take our name very seriously. We believe in giving back to the environment just
as much as we take from it. And that is why Hero has initiated various “green” steps, making it one of
the most environmental friendly companies in the country. Hero MotoCorp’s vision lies in sustainable
development which can only be created with a balance between nature, business and mankind.
2. HOW DOES HERO INTEND ON BECOMING A SUSTAINABLE ENTERPRISE?
Hero aims at introducing Green initiatives in all aspects of the company whether it is Production
Development, Manufacturing, Supply Chain (backward and forward) or even in the operations within
the company.
Hero MotoCorp has already invested in various Cleaner Processes to ensure minimum impact on the
environment. Some of these processes include thoroughly evaluating chemicals and raw materials for
their green quotient before introducing them in the production process. To ensure a low carbon
footprint, Hero has, in the last few years, proactively eliminated harmful substances like
 Asbestos
 Hexavalent Chromium
 Phenolic Substances.
In addition to this, the company also carries out production and manufacturing through Green
Infrastructure which has been especially developed to reduce harmful impact on the environment.
3. GREEN ROOF
Covering about 45000 sq. meters, Hero's green roof helps to conserve energy by moderating the
temperature on the roof and within surrounding areas. It also helps to reduce the storm water runoff
volume and peak flow rate dramatically. The green roof can restore aesthetic and ecological value of
open urban spaces. It addition to this, it protects conventional roofing systems by doubling the service
life of the underlying waterproof membrane.
4. SEWAGE TREATMENT PLANT
Hero ensures that sewage is biologically treated to attain efficacy. This treatment plant is designed to
accommodate up to 6 hours of holding and ensuring effluent is 100% treated and recycled into soft
water that is used in cooling towers.

4. 5. EFFLUENT TREATMENT PLANT
To prevent water pollution, Hero has also invested in an Effluent Treatment Plant which is capable of
treating waste water that contains degreasing chemicals, acidic/ alkaline nature, plating waste, heavy
metals and waste oil that is generated out of processes. The output parameter is maintained strictly
with norms to ensure that 100% treated water is recycled back into the process while the sludge is
safely disposed off to a secured landfill.
6. WASTE FOOD RECYCLING
Hero ensures hygienic disposal of municipal waste through its organic waste converter, which in turn
generates manure. This waste goes through 15 minutes of treatment and is then homogenized and
odour free. It is turned into compost in the next two weeks and finally is available for landscaping and
greening applications.
7. PAINT CONSERVATION
Along with preventing water pollution, Hero MotoCorp does its very best to prevent releasing
pollutants in the air as well. On an annual average, the company recycles about 120 tons of paint sludge
and additives and turns it into paint primer. It also has a Solvent Recovery Machine that helps to
prevent 59 Kl of volatile organic compounds from getting released into the air on a yearly basis, thus
ensuring cleaner air.
8. ENERGY CONSERVATION
In January 2011, Hero initiated the Heat Recovery from Incineration project which has helped to save
1258 tons of Co2 emissions and 16, 22, 400 units per annum. This process includes the recovery of
waste heat from the incinerator through heat recovery coil. The waste heat is used for heating process
water in engine component washing.
In October 2011, Hero introduced its Solar Power Project – 100 KW which has helped to save 1, 56, 000
units per annum, 121 tons of Co2 emissions and 37.96 tons on furnace oil. This is done through the
solar energy that is captured by the photovoltaic cells during the day. This electrical energy is then
connected to the main grid, to ensure optimum energy conservation.
In June 2012, Hero replaced its 400-ton air conditioner with a VAM chiller to reduce Co2 production
and energy consumption. This machine produces chilled water by using heat from power generator
sets or through heat sources such as oil, gas, hot water and steam.

5. Apart from these, Hero MotoCorp has also initiated other energy saving processes like
 Substituting furnace oil with natural gas
 Replacing aluminium alloy fans by FRP fans of cooling towers
 Replacing copper ballast with electronic ballast in all lighting tasks
 Introducing power saving circuits in all machine panels of engine plants
 Installing power correction panels for loads running on state electricity for cost saving.
9. OIL CONSERVATION
Hero MotoCorp has also initiated oil conservation through the installation of Chip Wringer which is
capable of recovering neat cutting oil from chips that are generated from m/c operation. This has led
to oil recovery of about 56 litres/ day per plant.
The company also uses on line hydraulic oil filtration system on presses which has helped in saving
1200 litres/ year.
10. WATER CONSERVATION
Perhaps one of the biggest initiatives taken, Hero has worked consistently hard in conserving water
through Water Management, Rain Water Harvesting and ETP Recycling Plant.
 Water Management- Training and Awareness is created through this process on how to
develop water balance. It also includes reducing water consumption at the source and
recycling it back to process applications and other beneficial applications like cooling towers
and irrigation after treatment. Water management also entails recharging rain water and
regular monitoring to sustain savings.
 Rain Water Harvesting- Hero has also introduced a rain water harvesting scheme that includes
the collection and de-silting of rain water. The company has a catchment area in plants that
measures about 2, 60, 000 square meters and has a potential recharge of about 1, 32, 600
cubic meters of rain water annually.
 ETP Recycling Plant- This plant introduced by Hero has a capacity of recycling approximately
1400 Kld of treated effluent daily. It uses the modern technology of reverse osmosis and ultra-
filtration for purifying water. The recycled water is then supplied to the paint shop with desired
parameters or used as Soft water/ DM as required.

6. 9 PRINCIPLES OF SUSTAINABILITY
S. NO PRINCIPLES BRIEF ABOUT THE PRINCIPLES
1 Ethics
The company establishes, promotes, monitors and maintains
ethical standards and practices in dealings with all of the
company stakeholders
2 Governance
The company manages all of its resources conscientiously and
effectively recognizing the fiduciary duty of corporate boards and
mangers to focus on the interests of all company stakeholders.
3 Transparency
The company provides timely disclosure of information about its
products, services and activities, thus permitting stakeholders to
make informed decisions.
4
Business
relationships
The company engages in fair trading practices with suppliers,
distributors and partners.
5 Financial return
The company compensates providers of capital with a
competitive return on investment and protection of company
assets.
6
Community
involvement /
economic
development
The company fosters a mutually beneficial relationship between
the corporation and community in which it is sensitive to the
culture, context and needs of the community.
7
Value of products
and services
The company respects the needs, desires and rights of its
customers and strives to provide the highest levels of product and
service values.
8
Employment
practices
The company engages in human resource management practices
that promote personal and professional employee development,
diversity and empowerment.
9
Protection of the
environment
The company strives to protect and restore the environment and
promote sustainable development with products, processes,
services and other activities.

7. ANALYSIS OF SUSTAINABILITY REPORT WITH RESPECT TO THE 9 PRINCIPLES
S. NO PRINCIPLES HERO MOTOCORP LTD
1 Ethics Policies under this principle include:
(a) Code of Conduct
(b) Insider Trading Code
(c) Policy on Sexual Harassment.
The Code of Conduct is approved by the Chairman and MD & CEO of the
Company. There is a committee for Code of Conduct and Policy on
Sexual Harassment.
The Policy on Insider Trading Code has been made based on SEBI
Regulation. The Insider Trading Code is supervised and monitored by the
Board of Directors.
2 Governance
3 Transparency
4
Business
relationships
NO MAJOR INITIATIVE DIRECTED TOWARDS IMPROVING BUSINESS
RELATIONSHIPS
5 Financial return Total Turnover - 24,166.49 crores
Total Profit after Taxes - 2,118.16 crores
6
Community
involvement /
economic
development
NO MAJOR INITIATIVE DIRECTED TOWARDS IMPROVING COMMUNITY
INVOLVEMENT
7
Value of products
and services
Company has a grievance redressal process in place. Customers can raise
complaints in case any party violates any conditions on service, sales and
other issues. The relevant stakeholder can approach our Zonal / Regional
/ Area office or our Warranty Sections at Gurgaon plant for redressal of
any warranty related issues. The Company allows for any Quality related
grievances to be resolved through IMS Cell. The Management Review
Committee oversees the same.
8
Employment
practices
Policies such as:
(a) Superannuation / National Pension Scheme
(b) Employee Mutual Medical Benefit Scheme
(c) Policy on Sexual Harassment
(d) Post-Retirement Medical Insurance Fund Scheme
(e) Overarching Code of Conduct
9
Protection of the
environment
Policies concerning Green IT and Environment. In addition, Company has
specific certifications that govern management systems such as ISO
9001, ISO 14001 and OHSAS 18001. The policy on Environment is signed
off by the Chairman and MD & CEO of the Company. There is a
Management Review Committee that leads the implementation and
review of Environment policy. The oversight of Green IT policy rests with
the CIO of the Company.