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Materials - CSR and Sustainability Insights (Preview)


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Materials - CSR and Sustainability Insights

The materials sector consists of companies that extract metals and minerals to manufacture goods. It consists of metals and mining, cement, steel and chemicals. This report looks at CSR and sustainability measures of the following 36 materials companies.

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Materials - CSR and Sustainability Insights (Preview)

  1. 1. 2 0 1 5 M AT E R I A L S CSR and Sustainability Insights
  2. 2. Futurescape CSR and Sustainability INSIGHT 2 Preface Corporate India has seen in the last decade that the path towards growth is not linear. Constant expansion also means a constant hunt for resources invariably leading to a conflict between man and nature. There is a need to balance opportunity and responsibility. While good governance and far reaching policies are part of the answer, much more needs to be done to manage Risk, Responsibility and Reputation. The study series investigates CSR and sustainability in select industries in India. 1. We start the discussion on materiality – issues that have significant impact on CSR and sustainability in the industry. Sustainability reports are the primary communication tool for companies and we link materiality to outcome communicated though sustainability reports. We highlight the key materiality issues by linking the material issues to industry value chain. Each material item is then examined in detail and critical questions raised. We then compare key material issues across industries. 2. This is followed by a discussion of key elements of CSR and sustainability – governance, disclosure, stakeholders and sustainability. Having raised material issues we examine how the sector performs on these issues. Detailed insights follow on governance, disclosure, CSR and sustainability. A key feature of our study is an investigation of comparison of key industry sustainability parameters for the industry. India’s CSR rules list areas that companies can invest in for the purpose of mandatory CSR spend. We evaluate industry performance on these parameters. as well Data in this report is based on websites, annual reports and sustainability reports of companies in 13-14. as well as India’s top companies for CSR and Sustainability report 2015.
  3. 3. Futurescape CSR and Sustainability INSIGHT 3 About the Report In the 2 years since we started examining CSR and Sustainability initiatives of Indian companies we have found a positive movement towards integrating CSR and Sustainability into core business.  However, this is only true of the top companies. As we go down the Economic Times 500 list we find that firms in the lower half have not looked at these areas strategically and are just starting out on their responsibility journey. The   findings of this report should inspire companies to examine their own progress and identify where they stand on the path to creating a responsible future. Investors can examine where companies stand and how likely are they to gear up to the challenge of a world where risk, reputation and responsibility are increasingly interconnected. Business will need be part of the solution on issues like climate change, endemic poverty, obesity and so on. Smart companies are looking for ways to play expectations to their advantage, to find solutions to the challenge that are profitable. Leading businesses are exploring how to combine profit with creating a sustainable future. Business strategies that address this challenge at a profit will define the successful business of the next 10 years. This report helps companies look at their companies sustainability programmes in relation to the industry and  raise questions like: 1. How can this company build on its p a rt i c u l a r s t re n g t h s t o p ro fi t f ro m sustainability?  2. What are the specific impacts of sustainability issues on its markets, supply chain, staff and so on? 3. What are the innovations which will enable customers to meet their needs, within environmental limits?  4. What are the markets, current and potential, where the company create a profitable, sustainable offer?  5. How must the business shape its context to make sure there is a sustainable base to its competitive advantage? 6. What are the values and activities that brands needs to support that will add value to the business, its customers and society? Namrata Rana is a Director at Futurescape. Sustainability, CSR and Healthcare are her primary focus. An alumni of IIM Ahmedabad and Cambridge, she works to build customer experiences that integrate CSR, Sustainability and digital. Utkarsh Majmudar is a professional with experience encompassing academics and administration at IIM Lucknow, IIM Udaipur and IIM Bangalore. His interest areas include corporate finance and CSR.  
  4. 4. Futurescape CSR and Sustainability INSIGHT 4 Disclaimer: The publisher is not responsible in any manner since the data and studies published here are based on available data, reports, and interpretation thereto and not based on their personal opinion. The report reflects the situation as of the date of the report and is thus subject to continuous modification. The information herein was obtained from corporate and third-party sources. Contents Page 5 - The Study Page 6 - Material Issues Page 11 - Sector Overview Page 12 - Insight - Governance + Disclosure Page 14 - Insight - Sustainability Page 18 - Insight - CSR Stakeholders Page 21 - List of India’s top companies for CSR and Sustainability 2015
  5. 5. Futurescape CSR and Sustainability INSIGHT 5 The Study The materials sector consists of companies that extract metals and minerals to manufacture goods. It consists of metals and ming, cement, steel and chemicals. This report looks at CSR and sustainability measures of the following 36 materials companies. ACC Ltd. National Aluminium Company Ambuja Cements Ltd. National Fertilizers Ltd. Asian Paints Ltd. Neyveli Lignite Corporation Ltd. Ballarpur Industries Ltd. NMDC Ltd. Bharat Forge Ltd. Prism Cement Ltd. Bhushan Steel Ltd. Rashtriya Chemicals & Fertilizers Chambal Fertilisers & Chemicals Shree Cements Ltd. Coal India Ltd. Steel Authority of India (SAIL) Coromandel International Ltd. Tata Chemicals Ltd. DCM Shriram Ltd. Tata Steel Ltd. Gujarat State Fertilizer & Chem Uflex Ltd. Hindalco Industries Ltd. UltraTech Cement Ltd. Hindustan Zinc Ltd. UPL Ltd. India Cements Ltd. Uttam Galva Steels Ltd. Jindal Poly Films Ltd. Uttam Value Steels Ltd. Jindal Stainless Ltd. Vedanta Limited Jindal Steel & Power Ltd. Welspun Corp Ltd. JSW Steel Ltd. Zuari Agro Chemicals Ltd.
  6. 6. Futurescape CSR and Sustainability INSIGHT 6 Energy/emissions management programs %companies 0% 25% 50% 75% 100% IT Energy O.Industries Materials Auto CapitalGoods Cons.Staples Healthcare Diversified Telecom Utilities Financials Water management programs %companies 0% 25% 50% 75% 100% Energy Healthcare Materials Cons.Staples IT Utilities Auto O.Industries CapitalGoods Diversified Financials Telecom Strong Average Weak Sector Response to Key Material Issues Waste management programs %companies 0% 25% 50% 75% 100% Healthcare IT Materials Telecom Energy Auto Cons.Staples CapitalGoods Utilities Diversified Financials O.Industries Environment
  7. 7. Futurescape CSR and Sustainability INSIGHT 7 Insight Sustainability Energy Initiatives by Materials companies %companies 0% 25% 50% 75% 100% Power management systems Renewable Energy Energy management. Green buildings Strong Average Weak Water initiatives by Materials companies Zero discharge EWT Rainwater harvesting. Ground Water recharge Water mapping Recycle/Reuse Water management 0% 20% 40% 60% 80%
  8. 8. Futurescape CSR and Sustainability INSIGHT 8 Community Initiatives by Materials companies Community: Most of the companies undertake a wide range of activities for the communities around their plants and in townships basically because these are in remote locations. These initiatives try to address the basic needs of education, healthcare, rural development, vocational training, drinking water, and livelihood of the communities in these locations. It is heartening to see over 80% companies have environment related initiatives for communities, given the pollution caused by their operations. These include a) tree plantation, b) water conservation - recharging ground water table through rainwater harvesting, pond renovation, watershed development, etc., c) conservation of natural resources – soil moisture conservation, etc, d) renewable energy projects such as solar lights, smokeless chullhas, and biogas units in villages and e) animal welfare. ACC Ltd: In 2013, the company co-chaired development of India Water Tool with keen involvement of 14 WBCSD member companies. This tool is a free web based tool, accessible to all which helps the users to visualize groundwater availability and quality risks in any particular area. UPL worked towards environmental conservation via a cleanliness drive and formation of eco-clubs in schools to raise awareness regarding environmental issues across all sectors of the local community. Community initiatives by Materials companies %companies 0% 25% 50% 75% 100% Armedforceveterans/WarWidows Donation Nationalcalamities Seniorcitizens Health&Wellness Others Education Artist/sports/music Capacitybuilding womenempower. Voc.Training DrinkingWater Environment Protectnat.heritage Livelihood Hunger&Poverty Ruraldev. Strong Average Weak