PROGRESSING TOWARDS ASUSTAINABLE FUTURE

Our Environmental, Social and Governance approach

While we are making encouraging progress across our key priority areas in sustainability, an ambitious and evolving sustainability agenda has been created with short-term and long-term goals. We aim to deliver a consistent, competitive and greater impact and work on our goals by making sustainability progress integral to our performance and with an ongoing commitment to responsible business.

Sustainability is at the core of our business. At KBL, we have embarked on a comprehensive journey to strengthen our sustainability approach. We believe in setting clear targets and goals that will serve as our sustainability compass and will help integrate sustainability across the business.

We are engaged in reinforcing our sustainable and inclusive actions in several ways. While we have identified key areas for making a meaningful difference, we are also capitalising on the growing opportunities.

Our SustainabilityCompass 2030

To becomewater neutral

Zero Wasteto Landfill

To enhance femaleworkforce up to 20%

Sustainable sourcingup to 60%

Driving ESG acrosssupply chain

EMBEDDING CORPORATE SUSTAINABILITY

Corporate Sustainability Committee reports to the Board twice a year
Plant-level Sub-Committees report to Corporate Sustainability Committee every quarter
Exclusive Corporate Sustainability & Excellence team to drive ESG initiatives across KBL Group of Companies
ESG commitments, goals and targets are reviewed by the Committee

KBL has formed a corporate level Sustainability Committee under the authority of Chairman and Managing Director consisting of non-board members with the Chairmanship of Associate Vice President and Head – Corporate Quality Assurance with facilitation provided by Assistant General Manager and Head - Corporate Sustainability and Excellence. The Corporate Sustainability Committee reports progress of ESG initiatives along with other updates to the Board twice a year. We have also formed plant-level Sustainability Committees that in turn report to the Corporate Sustainability Committee.

Our ESG policies are assessed and updated by Corporate Sustainability Committee and Senior Leadership, including the CMD, periodically or on a need basis. Performance of all policies is being monitored through review of goals and commitments identified against each policy. This is done by the Corporate Sustainability Committee and also by other respective functions at the time of monthly reviews of their functional annual operating plans. The Committee findings are also reviewed by CMD.

ESG performance against specific commitments, goals and targets

Signed Power Purchase Agreement (PPA) with M/s Sunsure Energy for 13.5 MWp for open access renewable energy
As a part of CII Zero Waste to Landfill certification, Dewas plant achieved “Approaching to Zero Waste to Landfill” certification and Sanand plant achieved “Aspiring to Zero Waste to Landfill” certification
ESG assessment completed for value chain covering 62.93% of business spend
ESG training conducted for Value chain partners
ESG workshops completed for 27 value chain partners for ESG and BRSR Core implementation (48.85% business spend)
35% reduction in Scope 1 emissions as compared to FY 2023-24
8.76% Female workforce including all women operated manufacturing plant at Kaniyur
Sustainable sourcing up to 43%
437 BEE Star rated products
Reduction in specific water consumption

OUR ESG CHARTER

Environment

Greening the nation
Achieving climate resilience
Resource efficiency
Waste management
Renewable energy enhancement
Water management

Social

Health and safety
Diversity and inclusion
Talent management
Sustainable supply chain

Governance

Stakeholder engagement
Corporate governance
ESG policy implementation

Our Action Plan

SUSTAINABILITY-RELATED GOALS

Environment

Energy and Climate Change

Short-term Goal:

Prioritising energy efficiency and embracing deployment of alternate sources of energy
Achieving intermediate milestones to become Net Zero
Increasing renewable energy’s contribution in total power consumption up to 50% by FY 2025-26

Long-term Goal:

Dedicated to implement strategies contributing to a low-carbon future and a positive environmental impact
Implement strategies to achieve Net Zero in line with India’s target to become Net Zero by 2070
Increasing contribution of Renewable Energy to 70% by FY 2026-27

Biodiversity

Short-term Goal:

Ensuring maximum greenbelt coverage at manufacturing plants
Biodiversity assessment for manufacturing plants and offices
Plantation of native, drought-resistant species

Long-term Goal:

Contributing to preservation and restoration of ecosystems and promoting a healthier and more sustainable planet
Ensuring “No Net Loss” of Biodiversity

Water

Short-term Goal:

Increasing rainwater harvesting systems across plant locations
Recycling wastewater or effluent generated to achieve Zero Liquid Discharge

Long-term Goal:

Implementing a robust water management strategy for water conservation, reuse and recycling
Becoming Water neutral by 2030

Waste Management

Short-term Goal:

Minimising plastic usage and waste generation and encouraging value chain partners to follow waste management practices
Implement best-in-class industry practices to divert waste from landfilling

Long-term Goal:

Embracing the principles of a circular economy with strong emphasis on 5R approach
Achieve Zero Waste to Landfill by 2030 for all manufacturing plants

Social

Safety and Well-being

Short-term Goal:

Striving for zero accident rate, along with safety and reliability of the manufacturing operations
Introducing a mental wellness initiative for the employees

Long-term Goal:

Continually developing and enforcing robust systems and procedures to ensure employee safety
Digitising employee health reports
Creating a supportive and inclusive work environment that prioritises employee health and well-being with a keen focus on mental, physical and emotional health

Workforce Diversity

Short-term Goal:

Focusing on gender equality and women empowerment

Long-term Goal:

Enhancing diversity in the workplace through focussed initiatives and operational processes for a thriving workplace; extending diversity and inclusion in the hiring process; cultivating a more comprehensive approach for intersectional and cultural diversity; implementing training sessions using interactive methods like real-life scenarios

Community Development

Short-term Goal:

Focusing on improving health of people living in and around the manufacturing facilities

Long-term Goal:

Enacting positive change in the society by executing CSR activities with wide-reaching efforts and maintaining a positive connect with communities at all levels of the society

Governance

Certification

Short-term Goal:

To achieve TPM second stage certification for all the manufacturing plants
To achieve ISO 19443:2018 Certification (Quality Management Systems – Specific requirements for organisations engaged in the supply chain of Nuclear Energy sector, supplying products and services that are important to Nuclear Safety) for Kirloskarvadi plant

Long-term Goal:

To achieve CII GreenCo Platinum Certification for manufacturing plants
To achieve Corporate Sustainability Excellence

Technology

Short-term Goal:

To enhance features and automate performance testing facilities at Kaniyur plant
To implement online energy monitoring system for all manufacturing plants
To integrate AR/VR for customer experience

Long-term Goal:

Integration of best-in-class IoT solutions
EPR integration
AI support for recruitment

Research & Development

Short-term Goal:

Energy-efficient Submersible and Monobloc Pumps, as per MEL standards

Long-term Goal:

Development of Submersible & Monobloc pumps for the export markets
Development of high-efficient and ultra-premium efficient electric motors
Development of pumps for hard metal slurry and biofuel application
Development of best-in-class hydraulics for end-section pumps

KIRLOSKAR BROTHERS LIMITED Established 1888 A Kirloskar Group Company

Standalone

Consolidated

PROGRESSING TOWARDS ASUSTAINABLE FUTURE

Our Environmental, Social and Governance approach

Our SustainabilityCompass 2030

EMBEDDING CORPORATE SUSTAINABILITY

ESG performance against specific commitments, goals and targets

OUR ESG CHARTER

Environment

Social

Governance

SUSTAINABILITY-RELATED GOALS

Environment

Social

Governance

INTEGRATED REPORTING