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Materiality Assessment

Materiality assessment in Cement Industry

To ensure sustained, responsible and sustainable operations, Nuvoco prioritises understanding key factors shaping value creation. Engaging with a diverse range of stakeholders, including customers, investors, and regulatory bodies allows us to grasp our business landscape comprehensively, thereby aiding our long-term value generation and reinforcing our dedication to responsible business practices.

During FY 2022-23, a comprehensive Materiality Assessment was undertaken to ascertain, delineate, and prioritise Material Topics. This process culminated in the identification of 19 such Material Topics. The process of Materiality Assessment includes:

  • Identification of Material Topics aligned with GRI standards, global ESG risk factors, and sector analysis
  • Comparison of selected topics with industry leaders within and outside the cement sector for benchmarking
  • Compilation of representatives from key stakeholder groups to facilitate engagement
  • Participation of stakeholders in surveys, meetings, and focused group discussions on identified material topics
  • Review of stakeholder feedback by respective functional heads involving over 1,500 participants
  • Detailed discussions with the Executive Committee regarding findings and prioritisation of Material Topics based on significance and impact
Material Topic: Decarbonisation and Climate Change (Negative)
  • Management Approach
    • Identifying strategies to reduce carbon emissions at Nuvoco
    • Incorporating strategies such as increased usage of alternate fuels, emphasis on blended cements, optimisation of waste heat recovery, and greater reliance on renewable energy
    • Addressing challenges in transitioning to renewables in an energy-intensive industry, due to issues with reliability and storage. Investing significantly in solar projects to power operations and support townships
  • SDG Alignment
  • Key Focus Areas Impacted

    Fuel Mix Optimisation

  • Stakeholders Impacted

    Customers, Communities, Employees, Regulatory Bodies, Value Chain Partners

  • GRI Alignment

    GRI 302, GRI 305

Material Topic: Water Management & Rainwater Harvesting (Positive)
  • Management Approach
    • Achieved Zero water discharge at all sites through Sewage Treatment Plants (STP)
    • Implemented rainwater storage and harvesting systems both inside and outside site boundaries
    • Resulted in maintaining a Water Positive Index of 1.8x for FY 2023-24
  • SDG Alignment
  • Key Focus Areas Impacted

    Cost Efficiency

  • Stakeholders Impacted

    Customers, Communities, Employees, Regulatory Bodies, Value Chain Partners, Contract Labourers

  • GRI Alignment

    GRI 303

Material Topic: Waste Management (Positive)
  • Management Approach
    • Banned Single-use plastic across all Nuvoco premises
    • Implemented waste collection system with segregation into hazardous and non-hazardous categories
    • Conducted disposal of waste through authorised vendors in compliance with regulations
    • Carried our E-waste disposal in collaboration with authorised vendors
    • Fed liquid and solid waste with acceptable calorific value to kilns with statutory permissions; hazardous waste sent to state-approved vendors
    • Composted canteen waste at most sites for using as soil fertiliser in facility gardens
  • SDG Alignment
  • Key Focus Areas Impacted

    Cost Efficiency

  • Stakeholders Impacted

    Customers, Communities, Employees, Regulatory Bodies, Value Chain Partners, Contract Labourers

  • GRI Alignment

    GRI 306

Material Topic: Occupational Health and Safety (OHS) (Negative)
  • Management Approach
    • Implemented a robust safety culture adhering to globally recognised protocols
    • Introduced incident tracking and adopted OHSAS 18001 within the Integrated Management System
    • Provided regular safety training to all employees
    • Integrated emergency preparedness into site designs
    • Conducted regular safety audits with updates to Standard Operating Procedures (SOPs) as necessary
  • SDG Alignment
  • Key Focus Areas Impacted
  • Stakeholders Impacted

    Employees, Regulatory Bodies, Value Chain Partners, Contract Labourers

  • GRI Alignment

    GRI 403

Material Topic: Sustainable Product Innovation (Positive)
  • Management Approach
    • Ensured continuous development of new products and solutions to enhance customer service
    • Invested in research and development for new products and environmentally friendly manufacturing methods
    • Introduced the Ecodure range of ready-mix concrete products, certified by CII IGBC Green Pro
    • Supported ongoing innovation at the Construction Development and Innovation Centre (CDIC) for sustainable products and production processes
  • SDG Alignment
  • Key Focus Areas Impacted

    Premiumisation

  • Stakeholders Impacted

    Customers, Communities, Employees, Regulatory Bodies, Value Chain Partners

  • GRI Alignment

    GRI 416, GRI 417

Material Topic: Corporate Social Responsibility (Positive)
  • Management Approach
    • Dedicated to a diverse array of Corporate Social Responsibility (CSR) programmes and initiatives to address the needs of socio-economically disadvantaged communities
  • SDG Alignment
  • Key Focus Areas Impacted

    Brand Strengthening

  • Stakeholders Impacted

    Communities, Investors, Regulatory Bodies

  • GRI Alignment

    GRI 413

Material Topic: Labour Management (Negative)
  • Management Approach
    • Regular engagement with our contractual workforce to assess and address their needs
    • Strict adherence to labour laws and regulations concerning wages, working hours, and benefits
    • Promotion of timely engagement and provision of wages with fair and equitable treatment
  • SDG Alignment
  • Key Focus Areas Impacted
  • Stakeholders Impacted

    Contract Labourers

  • GRI Alignment

    GRI 2-8, GRI 401, GRI 402, GRI 404, GRI 405, GRI 406, GRI 407, GRI 408, GRI 409

Material Topic: Human Rights (Negative)
  • Management Approach
    • Upholding organisational values, including fair treatment, responsibility, mutual respect, and professional conduct
    • Expansion of human rights assessment throughout our value chain is underway
  • SDG Alignment
  • Key Focus Areas Impacted
  • Stakeholders Impacted

    Employees, Contract Labourers

  • GRI Alignment

    GRI 2-23, GRI 401, GRI 408, GRI 409

Material Topic: Diversity and Equality (Positive)
  • Management Approach
    • Swift actions taken to boost workforce diversity ratio
    • Implemented policies promoting equality of opportunity
    • Focused on enhancing opportunities available to employees within the organisation
  • SDG Alignment
  • Key Focus Areas Impacted
  • Stakeholders Impacted

    Employees, Contract Labourers, Value Chain Partners

  • GRI Alignment

    GRI 2-7, GRI 2-8, GRI 401, GRI 405

Material Topic: Biodiversity (Negative)
  • Management Approach
    • Obtained regulatory permissions for all plants and implemented wildlife conservation plans at mining sites
    • Ensured expansion activities adhere to statutory requirements
    • Developed standard operating procedures for native tree plantation to enhance flora and fauna, maintaining a healthy ecosystem
    • Chalked out site-specific plans for native sapling cultivation to promote green cover
  • SDG Alignment
  • Key Focus Areas Impacted
  • Stakeholders Impacted

    Communities, Regulatory Bodies

  • GRI Alignment
Material Topic: Business Ethics & Compliances (Positive)
  • Management Approach
    • Adherence to the highest standards of business ethics is fundamental to our operations
    • Effective management of compliance risks strengthens stakeholder trust in our brand
    • Allows us to concentrate on business and strategic priorities
  • SDG Alignment
  • Key Focus Areas Impacted

    Brand Strengthening

  • Stakeholders Impacted

    Customers, Investors, Communities, Employees, Regulatory Bodies, Value Chain Partners

  • GRI Alignment

    GRI 2-15, GRI 2-16, GRI 2-27

Material Topic: Customer Centricity (Positive)
  • Management Approach
    • Offering diverse platforms for customers to share feedback, complaints, and experiences is essential for understanding their priorities and concerns
    • Facilitates customer-facing innovation (apps) and product enhancements
    • Establishment of mechanisms for grievance redressal ensures effective resolution of issues
  • SDG Alignment
  • Key Focus Areas Impacted

    Expansion, Premiumisation, Trade Share Improvement

  • Stakeholders Impacted

    Customers

  • GRI Alignment

    GRI 416, GRI 417, GRI 418

Material Topic: Air emissions (Non-GHG) (Negative)
  • Management Approach
    • Comprehensive approach to environmental performance at Nuvoco
    • Aiming to keep non-GHG emissions (SOx, NOx, dust) well below permissible limits
    • Regular inspections and maintenance of pollution control devices
    • Transitioning to sustainable manufacturing practices
  • SDG Alignment
  • Key Focus Areas Impacted

    Fuel Mix Optimisation

  • Stakeholders Impacted

    Customers, Communities, Employees, Regulatory Bodies

  • GRI Alignment

    GRI 305

Material Topic: Risk and Crisis Management (Positive)
  • Management Approach
    • Establishment of comprehensive policies and business continuity plans
    • Implementation of mechanisms for monitoring and adhering to ethical practices and compliance
    • Oversight of risks by the Risk Management team, led by the Chief Risk Officer
    • Adoption of Risk Management Policy and Framework with effective implementation
    • Responsibility of functional heads and Risk Champions for risk identification, assessment, and mitigation
    • Regular updates to the Risk Management Committee by the Chief Risk Officer
    • Continuous monitoring and improvement of ethical practices and compliance through regular assessments and policy reviews
  • SDG Alignment
  • Key Focus Areas Impacted
  • Stakeholders Impacted

    Customers, Investors, Communities, Employees, Regulatory Bodies, Value Chain Partners

  • GRI Alignment

    GRI 2-22 GRI 2-23

Material Topic: Data Security & Privacy (Negative)
  • Management Approach
    • Implementation of stringent data security measures to promote awareness and privacy
    • Development of robust data backup and recovery mechanisms
    • Conducting timely data security audits and training sessions to ensure adherence to security protocols
  • SDG Alignment
  • Key Focus Areas Impacted
  • Stakeholders Impacted

    Customers, Employees, Regulatory Bodies

  • GRI Alignment

    GRI 418

Material Topic: Employee Engagement and Well-being (Positive)
  • Management Approach
    • Regular employee satisfaction surveys conducted to systematically gauge value creation efforts aligned with workforce expectations
    • Engagement initiatives include reward and recognition activities, support for physical and mental health, and celebration of festivals and special days together
  • SDG Alignment
  • Key Focus Areas Impacted
  • Stakeholders Impacted

    Employees, Contractual Labourers, Regulatory Bodies

  • GRI Alignment

    GRI 401, GRI 403

Material Topic: Training and Development (Positive)
  • Management Approach
    • Continuous training and development of the workforce is a top priority at Nuvoco
    • Regular trainings conducted for both functional and soft skills to enhance workforce effectiveness
    • Elaborate safety trainings provided alongside education on human rights topics such as prevention of sexual harassment
  • SDG Alignment
  • Key Focus Areas Impacted
  • Stakeholders Impacted

    Employees, Contractual Labourers, Regulatory Bodies

  • GRI Alignment

    GRI 404

Material Topic: Circular Economy (Positive)
  • Management Approach
    • Support towards the 'waste not, want not' lifestyle concept
    • Emphasis on extending product lifecycles and reusing materials
    • Utilisation of wastes from other industries as alternate fuels or materials
    • Achieved a 13% increase in alternate fuel AFR % in FY 2023-24
  • SDG Alignment
  • Key Focus Areas Impacted
  • Stakeholders Impacted

    Customers, Communities, Employees, Regulatory Bodies, Value Chain Partners

  • GRI Alignment

    GRI 301, GRI 306