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Enriching sustainability with growth
Nuvoco places significant importance on actively and consistently engaging with its diverse stakeholders. This helps us to understand our business comprehensively within its operating environment. The approach enables us to pinpoint key areas that directly influence or potentially affect our performance and our ability to fulfill our commitments to all stakeholders. Such awareness is vital for our long-term value creation.
During FY 2022-23, an elaborate Material Assessment exercise was carried out to identify, frame, and prioritise Material Topics and 19 (nineteen) Material Topics as an outcome of the entire exercise were identified.
The process of Materiality Assessment carried out comprised the following steps:-
- Topics were shortlisted in aaccordance with the GRI standards, global ESG risk factors and sector analysis
- These material topics were benchmarked against the top industry players within and outside cement sector.
- A list of representatives from each of our key stakeholder groups was compiled in order to facilitate further engagement.
- The key stakeholders viz. Employees (including contract Employees), Supply Chain Partners, Customers, Dealers, Government/Regulators, Communities and Investors participated in survey, meetings and focused group discussions on the identified material topics. Their responses were collected post its review by respective functional heads. >1500 stakeholders participated in the entire exercise.
- Thereafter, the findings of the material topics emerged from the exercise were discussed in detailed with the Executive Committee and they were prioritised.
Material topic and its impact
Management approach
SDG alignment
Reference in IR
Decarbonisation and Climate Change (Includes Energy management, Alternative Fuels, Renewable energy) (Negative)
Cement Industry is energy intensive and coal is the primary source of energy. Also, the primary material used as raw material is limestone which releases CO2 during its clinkerisation process. Thus, usage of coal for energy generation and use of limestone as raw material are the primary sources of carbon emissions
At Nuvoco, we have identified the levers to reduce the carbon emissions. These levers include increasing usage of alternate focusing, focus on blended cements, optimising waste heat recovery for cleaner energy and increasing renewable energy usage. Being an energy intensive industry, it is difficult to transition into renewable energy source because of the challenges in reliability and storage. However, we have made significant investments in solar projects to power our other operations and support our townships.
Water Management & Rainwater Harvesting (Positive)
Cement industry has nominal water consumption in the manufacturing as compared to many of the other sectors. major water consumption occurs in captive power plants, domestic usage and in the colonies. Implementing an effective water management system by incorporating water recycling practices can mitigate unwanted disruptions. It minimises the impact on ecosystems.
We maintain zero water discharge at all our sites through Sewage Treatment Plants (“STP”). We have rainwater storage and harvesting systems within and outside the fences. This helped us in maintaining our Water Positive Index of 1.5x in FY 2022-23.
Waste Management (Positive)
The business operations result in the generation of solid and liquid wastes, some of which are classified as hazardous. Implementing efficient waste management practices can yield cost savings by reducing waste, promoting recycling, and enabling resource recovery. This not only contributes to a circular economy but also enhances environmental credentials and reputation, appealing to environmentally conscious customers and stakeholders.
At Nuvoco, we have banned Single-use plastic at all our premises. we have implemented bins system to collect wastes generated, which is segregated as hazardous and other wastes and stored at designated place. Wastes are disposed through authorised vendors as per the regulatory requirements.
We dispose of our e-waste by collaborating with authorised vendors.
Our liquid waste and solid waste having acceptable calorific value are fed to kilns as per statutory permissions. Hazardous waste is sent to state-approved vendors.
We are composting canteen waste at most of the sites; it is used as soil fertiliser for gardening around the facilities.
Occupational Health and Safety (OHS) (Negative)
The business operations give rise to various risks, including biological hazards and physical hazards. These risks pose both short-term and long-term threats within the workplace. In the context of cement manufacturing, potential hazards arise from operating heavy machinery, exposure to dust and chemicals, and high noise levels. Failure to adhere to strict Occupational Health and Safety (“OHS”) standards can lead to accidents, injuries, and even fatalities, resulting in legal liabilities. Furthermore, non-compliance with OHS regulations can lead to penalties and fines, adversely impacting the company’s financial performance.
We follow a robust safety culture, comprising systems and processes that adhere to globally recognised safety protocols. We track incidents and have established OHSAS 18001 as part of Integrated Management System.
We provide regular and timely safety trainings to all employees. All our sites are designed to combat emergencies. Safety audits are being carried out at regular intervals and SOPs are then updated.
Sustainable Product Innovation (Positive)
Sustainable product innovation opens up a significant opportunity for any business. It empowers the Company to develop eco-friendly materials, meet the rising demand for sustainable solutions, gain a competitive edge, and contribute to a more sustainable and resilient built environment. Embracing sustainable product innovation can further enhance their competitive advantage and position in the market.
We are constantly developing new products and solutions to better serve our customers.
We are investing in research and development of new products as well as easier and greener ways to manufacture these products. Our Ecodure range of ready-mix concrete products are with CII IGBC Green Pro certified. Our Construction Development and Innovation Centre (“CDIC”) continues to develop and innovate for sustainable products and production processes.
Corporate Social Responsibility (Positive)
Engaging in CSR activities, such as community development programmes or environmental stewardship, strengthens relationships with local communities, fostering goodwill and creating a positive impact on operations.
We are committed to a wide range of CSR programmes and initiatives designed to meet the needs of socio-economically disadvantaged communities.
Labour Management (Negative)
Ensuring effective labour management is vital for enhancing overall productivity and profitability. Challenges such as labour disputes, strikes, or disruptions in supply chains can result in production delays, increased costs, and reputational damage.
We continuously engage with our contractual workforce to understand and analyse their needs.
We ensure compliance with labour laws and regulations regarding wages, working hours and benefits.
We promote timely engagement and provide wages with fair and equitable treatment.
Human Rights (Negative)
Neglecting labour rights, health and safety standards, or land and rights of indigenous peoples can result in protests, legal actions, project delays, and erosion of community trust. By incorporating human rights into business practices, Company can contribute to the attainment of Sustainable Development Goals (“SDGs”) and showcase their commitment to sustainable development.
Our HR policy ensures all our employees to discharge their duties in adherence to organisational values, which includes fair and ethical treatment of the other, acting with a sense of responsibility and mutual respect, as well as professional conduct at all times.
We are extending the assessment of human rights issues across our value chain.
Diversity and Equality (Positive)
Fostering and promoting diversity and equality in the workforce can lead to a more inclusive and innovative work environment, bringing in diverse perspectives and ideas.
We are working swiftly to increase our workforce diversity ratio through policies that enable us to provide and enhance equality of opportunity available to our employees within the organisation.
Biodiversity (Negative)
The extraction of raw materials has the potential to cause habitat destruction, biodiversity loss, and negatively impact ecosystems. Encroaching upon ecologically sensitive areas can result in legal and reputational risks. Moreover, as stakeholders place growing importance on biodiversity conservation, insufficient management practices may lead to public backlash.
We obtained all regulatory permissions for all our plants and have wildlife conservation plans (wherever we have mining operations). For any expansion, we follow the norms as per statutory requirements.
We have developed standard operating procedure for plantation through which we focus on native tree plantation. This helps in enhancing the flora and fauna to maintain the healthy ecosystem. We have developed site wise native sapling plans to develop a green cover.
Business ethics & Compliances (Positive)
By implementing comprehensive policies and standards, we ensure compliance with regulatory requirements, effectively mitigating legal and reputational risks. The development and adherence to a robust code of conduct further nurtures ethical business practices, thereby fostering trust among stakeholders.
Adhering to highest principles of business ethics and ensuring total compliance is core to the way we operate our businesses. Managing our compliance risk well helps us fortify stakeholder’s trust in our brand and enables us to focus on our business and strategic priorities.
Customer Centricity (Positive)
Gaining insight into customer needs and providing customised solutions can stimulate product innovation and distinguish the Company from its competitors. This can result in a larger market share, foster long-term partnerships, and encourage customer advocacy, thereby contributing to the overall success of the Company.
Providing diverse platforms for our customers to share feedback, complaints, and experiences is key to gaining insights into their priorities and concerns. It helps spur customer-facing innovation and product enhancements.
We also have established mechanisms for grievance redressal.
Air emissions (non-GHG) (Negative)
Non-GHG emissions can include pollutants such as sulphur dioxide (SOx), nitrogen oxides (NOx), particulate matter (PM), and various air toxins. These emissions can result from industrial processes, combustion of fossil fuels. These pollutants can have adverse effects on air quality, ecosystem health, and contribute to respiratory and other health problems in humans.
At Nuvoco, we take a comprehensive approach to environmental performance. Our objectives are to keep applicable non-GHG emissions i.e. SOx, NOx and dust emissions well below the permissible limits.
Therefore, we conduct regular inspections and maintenance per defined schedules of all pollution control machines or devices. We are driving a robust shift to sustainable manufacturing practices.
Risk and crisis management (Positive)
Effective identification and management of risks is a business-critical function, helping to mitigate potential disruptions, financial losses, and reputational damage. Implementing strong risk management strategies enhances operational efficiency and resilience. Having a well-prepared crisis management plan enables the company to respond promptly and efficiently to unforeseen events, minimising their impact.
We have established comprehensive, relevant and stringent policies and business continuity plans.
We have implemented mechanisms for monitoring and adherence to ethical practices and compliance involving regular risk assessments, internal reporting mechanisms, and periodic reviews of policies and procedures.
The responsibility of overseeing the risks faced by the Company lies with the Risk Management team, which is headed by the Chief Risk Officer.
The Risk Management Policy and Risk Framework are established within the Company, and the Risk Management team ensures their effective implementation. The functional heads supported by the respective functional Risk Champions are responsible for comprehensive and timely identification, assessment, mitigation, controlling, monitoring, and reporting of risks. At pre-determined intervals, the Chief Risk Officer presents updates on the identified key risks and their mitigation to the Risk Management Committee.
We have established mechanisms to monitor ethical practices and compliance, which involve conducting regular risk assessments, implementing internal reporting mechanisms, and conducting periodic reviews of policies and procedures. Whenever necessary, relevant policies are updated to strengthen these processes.
Data Security & Privacy (Negative)
A breach in data security and intellectual property can result in unauthorised access, theft, or misuse of confidential data, including customer information or intellectual property. Such incidents can lead to legal liabilities, regulatory penalties, reputational damage, and loss of customer trust.
We follow stringent data security measures to promote data safety awareness and data privacy.
We are also developing robust data backup and recovery mechanisms and conducting timely data security audits and trainings
Employee engagement and well-being (Positive)
Investing in employee engagement and development helps foster a safe and inclusive work environment, leading to an overall enhancement in performance and productivity. A positive work environment that prioritises employee engagement is effective in attracting and retaining employees.
We conduct employee satisfaction surveys regularly in order to systematically understand our value creation efforts in the context of our workforce’s expectations from the company.
We also conduct a variety of engagement initiatives such as reward and recognition activities, support for physical and mental health, and benefits, as well as celebrate festivals and special days together.
Training and Development (Positive)
A skilled workforce is required to operate complex equipment, understand chemical processes, and ensure product quality and safety of individuals. Effective training and development programs facilitate succession planning and talent management and at the same time, help in career progression of the employees.
At Nuvoco, ensuring continuous training and development of our workforce has emerged a top priority helping us to futureproof our organisation.
We conduct regular trainings for functional skills as well as soft skills, helping our workforce to be more effective at their work. We also provide elaborate safety trainings as well as trainings in subjects related to human rights such as prevention of sexual harassment and human rights.
Circular economy (Positive)
Increasing contributions to the circular economy is a major way in which cement manufacturers can help decarbonise the industry. It also helps to space reliability of the business on finite resources. While this helps to reduce waste to landfill, it also helps to drive environmental stewardship.
Nuvoco fully supports this path to a ‘waste not, want not’ lifestyle. The concept involves extending the lifecycle of products and reusing them in some way at the end of their lifecycle. We are using wastes generated by other industries as alternate fuels or as alternate materials. We have increased the alternate fuel TSR to 9% in FY 2022-23.
