So The World Builds Better ACC LIMITED Sustainable Development Report 2016 Contents
1 2 3 01 - 03 04 - 21 22 - 35
Introduction Organization & Strategy Strategy & Approach 1-1 Chairman’s Message 01 2.1 Building the Nation 06 3.1 Stakeholder Engagement 24 1-2 Foreword - MD & CEO 02 2.2 Products & Services 10 3.2 Materiality & Strategy 30 2.3 Customer Excellence 12 3.3 Business Risks & Opportunities 32 2.4 Corporate Governance 14 3.4 SD Scorecard 2016 34 2.5 Compliances & other aspects 19 3.5 SD 2030 Plan 35
4 5 6 36 - 41 42 - 51 52 - 71
Disclosures & Reporting Economic Environmental 4.1 GRI Reporting 38 5.1 Economic Performance 44 6.1 Emissions 54 4.2 UN Global Compact Principles 40 5.2 Marketing Communications 47 6.2 Energy 57 4.3 CSI Dashboard 2016 41 5.3 Procurement Practices 49 6.3 Geocycle 62 6.4 Raw Materials 64 6.5 Water 66 6.6 Biodiversity 68 6.7 Waste & Effluents 70
7 8 72 - 93 92 - 99
Social Annexures 7.1 Health & Safety 74 8.1 Assurance Statement 94 7.2 People & Employment 79 8.2 Glossary 96
7.3 Human Rights 84 8.3 GRI Standards - In Accordance This report has been prepared in “Comprehensive” - Content Index 98 accordance with the GRI Standards: 7.4 Community Development Comprehensive option. & Social Responsibility 86 1.1 Chairman’s Message
ACC crossed the eight decade mark in A change of guard was announced 2016, earning for itself the distinction towards the end of the year. Mr Neeraj of becoming one of a select few Indian Akhoury took over as Managing Director companies of this vintage that have & CEO from February 4, 2017 in a remained in the same business from seamless transition in place of Mr Harish inception. Over all these years, the Badami who tendered his resignation company has renewed itself periodically as Chief Executive Officer & Managing to keep it contemporary and up to speed Director after a short tenure that was with competition. rich in contribution.
2016 turned out a mixed bag of It is a matter of pride that the company’s challenges and opportunities. On the unwavering focus on sustainable one hand, notwithstanding some bold development and good corporate reforms and reasonable overall growth, citizenship was publicly reaffirmed the economy could not energize the by way of several prestigious awards construction sector; as a result, the including that of “India’s Most We look forward company had to contend with subdued Sustainable” for the third time by the CII- sales in most of its major markets. with enthusiasm to a ITC Centre of Excellence in Sustainable Development. That this accolade was renewed momentum On the up side, our cement and ready shared with Ambuja Cements Limited mixed concrete businesses recorded in the economy which makes it all the more special for the positive developments by way of group. shows a healthy enhanced cost efficiency, innovative product development and insightful We look forward with enthusiasm to a appetite for growth. customer excellence initiatives. The renewed momentum in the economy company’s presence in the eastern region which shows a healthy appetite for was strengthened with completion of the growth. The construction, building Jamul integrated project that included a materials and cement industries new clinkering line and cement grinding are particularly enthused by the unit in Jamul, Chhattisgarh and a second Union Budget proposals announced grinding unit in Sindri, Jharkhand. this February that augur well for accelerated investment in infrastructure In August last year, ACC Limited became development, housing and other key a subsidiary of Ambuja Cements sectors. Limited (ACL) following a scheme of amalgamation between the latter I am confident that ACC, aided by its and Holcim (India) Private Limited, team of dedicated employees and loyal while LafargeHolcim Ltd continued to associates, will remain professionally remain the ultimate Holding Company. managed, demonstrating sound ethics In April 2017, the Boards of ACC and and persevering on the path of delivering ACL announced their desire to explore customer excellence and maximum opportunities of a potential merger of value to its principal stakeholders. the two companies with a view to unite the strengths of both entities in order to deliver greater synergies to their Narotam Sekhsaria combined stakeholders. 1.2 Foreword
Commitment to Sustainability manufacturing sector grew at about As with our parent group LafargeHolcim, ~8.5%. However these did not serve to sustainability is an essential part of our stimulate the construction sector. The business value chain and we are deeply landmark demonetization scheme, no committed to ensure that it remains doubt a major reform, had a tapering central to our strategy and decision- impact on construction activity in the last making. In this regard we aim to achieve quarter of 2016 as a squeeze on liquidity high standards in customer excellence, limited commercial transactions. innovation, resource conservation, environment management and Cement Business community engagement to create In 2016 we faced a decline in total value for all stakeholders. In the 10th cement sales by 2.7% as compared to Sustainable Development Report, 2015 following subdued demand in our presented here, we describe the major markets. We also saw weaker price progress made in respect of economic, trends. However, we were successful in environmental and social aspects in achieving higher cost efficiency with a 2016. reduction in fuel and input costs by 10% in 2016 as compared to 2015. Freight This was a year when ACC was again “ We were felicitated expenses also came down by 3% despite singled out as being among “India’s Most an increase in rail tariffs. with the prestigious Sustainable” and felicitated with the prestigious CII-ITC Sustainability Award CII-ITC Sustainability Three of our cement plants did us proud 2016 for “Outstanding Accomplishment” Award 2016 for in a global benchmarking exercise. Gagal in recognition of its continued effort and 2, Wadi 2 and Gagal 1 cement plants “Outstanding commitment to the cause of Sustainable ranked 6th, 17th and 19th respectively in Development. This is the third time in the Accomplishment” a detailed overview of the performance last four years when we are recipients of of 136 integrated cement plants of the this award, considered to be among the country’s most coveted in the field of worldwide LafargeHolcim group. The corporate sustainable development. structured analysis is based on a set of indices grouped along three categories In 2016 we formulated our SD 2030 viz. sustainability, efficiency and cost Plan outlining the path we wish to performance. take to build and secure for ourselves a sustainable future. Aligned with the During the year we augmented our LafargeHolcim 2030 Plan that supports cement capacity with the commissioning Dear Stakeholder, the UN “Sustainable Development of the Jamul integrated project, Goals”, our plan comprises a set of showcasing a modern state-of-the-art It is a privilege to be invited to steer an commitments divided broadly into plant with features that enable it to meet organization with such an extraordinary four main fields of action that address global standards. The project comprises legacy and outstanding reputation. In climate change, circular economy, water a clinkering line at Jamul in Chhattisgarh delivering the demands of this office, it is & nature and people & communities. and grinding units in Jamul and Sindri in awe-inspiring to follow in the footsteps Our 2030 Plan targets sets quantitative Jharkhand. of the many towering personalities who targets related to our direct and indirect have preceded me and are legends in impacts over the whole life-cycle of our Concrete Gains the company’s annals. These leaders products and services on which we will The Ready Mixed Concrete (RMX) have led the company successfully, periodically monitor and report progress. business continued its trend of providing it the requisite dynamism performing well with an increase of to reach for growth, profitability, Economic Performance 10.5 % in sales by volume and 9.0 customer excellence and greater value The Indian economy grew at around % in sales by value. A sharp focus in for shareholders. I am proud to note that 7.0% in 2016, among the fastest growth tapping growth opportunities in the that this is a company which has always rates recorded by any of the world’s infrastructure, commercial and realty shown respect for the nation, its people major economies. A good monsoon after segments accompanied by enhanced and environment with a long tradition of two rain-deficient years brought good customer services and the promotion of planet-friendly practices. cheer for the rural economy while the value added special application products
02 Sustainable Development Report 2016 enabled operating EBITDA of the RMX instituted by The Institute of Company following the completion of a waste pre- business to rise by 37.7% during the year. Secretaries of India to recognize the best processing facility at Madukkarai, Tamil practices in CSR. This reminds us of the Nadu which is under execution. This will Health and Safety year 1976 when Assocham instituted be the company’s third such unit after Health and safety took the top spot what was possibly the country’s first the two pre-processing facilities at Wadi in our agenda during the year. Having ever CSR award and chose ACC to receive in Karnataka and Kymore in Madhya Health & Safety (H&S) as an overarching that honour. CSR became a formal Pradesh. value means we remain committed process in the company with the Village to ensure that H&S is embedded in Improvement Scheme introduced in In 2016, we utilized 3.90 million tonnes everything we do and lived by each one 1952. In 2016 the company’s community of fly ash, 2.67 million tonnes of slag, of us at all times through our conduct development programmes reached out 1.10 million tonnes of crushed rock behavior and actions. The key focus area to benefit over 4.23 lakh people in 202 fines, 0.32 million tonnes of alternative for 2016 was implementing the Health villages across the country with projects materials, thus providing sustainable & Safety Improvement Plan (HSIP) in the broad thematic areas of Livelihood, environmental friendly services to the which contained seven well-defined Education, Health & Sanitation. nation and contributing to resource H&S objectives with ownership of each conservation. objective clearly assigned to a senior Environment Matters executive. Work is ongoing to complete We remain committed to protect the Way Forward an on-line health management system environment against the impact of We can look at the coming years with that standardizes health processes across climate change through our entire optimism. The outlook brightens as all units. With H&S being of particular value chain with an aim to demonstrate various proposals of the Union Budget importance in the area of logistics, leadership in environment performance. for 2017-2018 are implemented with a we have developed a Logistics Safety The company’s carbon footprint is thrust on the rural sector, infrastructure Roadmap for 2020, which encompasses counted among the best-in-class and development and housing among other an analysis of past incidents, current our emissions show a reduction of 30 per sectors of the economy. Enhanced initiatives and wide-ranging activity cent from the base line of 1990. investment in these sectors spells based risk assessments. expectations of accelerated building During the year we commissioned activity and thus growth in the People – our Ultimate Resource Hybrid Electrostatic Precipitators (ESP) at consumption of building materials. We In the words of Mr Nani Palkhivala Jamul and upgraded Coal Mill Bag House will work on sharpening and harnessing former chairman of the company, and Cooler ESP at Gagal in 2016. Steps our core strengths in order to be agile “people are our ultimate resource”. With were initiated towards reducing future and competitive. their deep commitment and enviable NOX emissions by ordering selective Non talent, our human resources are critical Catalytic Reduction (SNCR) systems for On the sustainability front, we will to the company’s success. During the Kymore and Gagal. redouble our efforts to pursue our goals year, we adopted a new set of core as we have always done – respecting values introduced by the LafargeHolcim The new Zero Liquid Discharge (ZLD) health & safety as a core value, conserving group for its worldwide employees. system at Wadi and Chanda and Sewage nature, engaging with communities to Abbreviated as CRISP, the five distinct Treatment Plants (STPs) at Lakheri create shared value, living our values and values enjoin a focus on Customer, and Damodhar - will further improve demonstrating a business performance Results, Integrity, Sustainability and our water & waste management that exceeds the expectations of all – People. Simultaneously the Group also performance. customers, employees, communities, recommended a new internal motto suppliers and shareholders. called ACE or Agility, Collaboration and On the energy front, our overall total Empowerment which now form basic Green Energy portfolio grew to 38.18 In sum, I believe the near future will dimensions of a high performance million units registering an increase of unfold exciting times for the cement culture that we want employees to 9% as compared to the previous year. industry as well as for the company. demonstrate in all their actions. We This was enabled by our wind farms, enjoyed peaceful and amicable relations waste heat recovery (WHRS) unit and with the workforce during the year. Power Purchase Agreements. During the year petcoke consumption was increased Neeraj Akhoury Community Counts to 62% from 18% in 2015. Managing Director & CEO ACC was chosen from among several leading companies to receive the first We expect our co-processing ever “ICSI CSR Excellence Awards 2016” infrastructure to be further strengthened
Sustainable Development Report 2016 03 2.0
04 Sustainable Development Report 2016 Organization & Strategy
2.1 Building the Nation
2.2 Products & Services
2.3 Customer Excellence
2.4 Corporate Governance
2.5 Compliances & other aspects
Sustainable Development Report 2016 05 2.1 Building the Nation
Nationwide Presence Large-scale operations entail an equally widespread and competent marketing organization. The company’s footprint is spread throughout the length and breadth of the country with 17 cement plants, 50 ready mixed concrete plants, 21 sales offices, about 50 zonal sales offices, a technical campus, a learning academy, two technical training institutes and a dedicated employee band of 7800 people. Its vast distribution network comprising 10,000 dealers and 50,000 retailers is dotted all over India - in almost every city, town and village to reach out to a large customer base. In 2O16, a new clinkering plant was completed at Jamul in Chhattisgarh with grinding stations in Jamul and Sindri. The company’s operations are entirely domestic. A map on the inside back cover shows the location of our state-wise operations and offices. (GRI -102-3,4,6, 7)
Trusted Brand for over 8O years ACC is a preferred brand of cement and concrete which has set new standards of excellence in every region of the country with iconic masterpieces built with ACC cement - Mumbai’s popular promenade, Marine Drive, J J Flyover, the mighty Bhakra Dam, Koldam Dam project in Himachal Pradesh and high tech railways ACC has a distinct identity as a nation systems in Kolkata, Bengaluru and Delhi. builder. More structures have been It is a trusted brand of cement and raised in the country using ACC cement concrete in India for all constructions – and concrete than that of any other large and small. company. Incorporated in 1936 as The Associated Cement Companies Limited, Legacy Its vast distribution it was created out of a historic merger of ACC was closely associated with the ten cement companies belonging to four Tata Group till 1999, when they sold all network comprising leading Indian business houses of Tatas, of their shareholding - 14.45 per cent - 10,000 dealers and Killick Nixons, Khataus and FE Dinshaw. in the company to the Ambuja Cement The vision of the founding fathers Group (then Gujarat Ambuja). In 2005, 50,000 retailers is was to build a strong cement industry Gujarat Ambuja divested their holding to dotted all over India - in that would fulfill its responsibilities to Holcim Limited of Switzerland, making a developing nation. The company’s ACC a subsidiary of Holcim (India) Private almost every city, town name was abridged to the acronym ACC Limited. In a significant global merger and village to reach out Limited in 2006. ACC has had the unique signed on July 15, 2015, Holcim Limited to a large customer base distinction to celebrate its silver, gold and Lafarge S.A. came together to create and platinum anniversaries with the a new company called LafargeHolcim - a publication of a book to mark each of world leader in the building materials these historic moments. (GRI -102-1) industry. Today ACC occupies a
06 Sustainable Development Report 2016 prominent and strategic position as Portland Pozzolana and Portland Slag volumes of its annual reports, chairman one of the largest subsidiaries in the cements, which use materials that statements and house magazines that LafargeHolcim Group. (GRI -102-5) are industrial wastes and pollutants. mention the practice of planet-friendly ACC is the largest manufacturer of initiatives, namely quarry rehabilitation, Organization Blended Cements in the country and afforestation, water conservation, The organization structure is function- has recently introduced two new pollution control and utilization of based led by the Managing Director brands, ACC Suraksha and ACC High wastes. Today ACC offers effective and Chief Executive Officer assisted by Performance Cement. The company’s solutions for management of industrial, an Executive Committee comprising innovations in R&D backed by over 8O agricultural and municipal wastes major functional Heads including those years of experience have led to several through co-processing in its countrywide with responsibilities for economic, advancements in cement and concrete. spread of cement kilns. Published environmental and social aspects. It ACC is proud to have several other “firsts” reports and benchmarking studies done is broadly divided into verticals for to its credit: by reputed bodies such as the Cement Sales & Marketing, Corporate Services, Sustainability Initiative, CII-ITC Centre of Manufacturing, Human Resources, Excellence in Sustainable Development Finance and Procurement. Cement First to set up an indigenous and Centre for Science and Environment Plants and Marketing units are grouped cement plant at Chaibasa, show that ACC has one of the lowest into four regional clusters, namely North, Jharkhand carbon footprints as compared to its South, East and West. The Regional First with a Bulk Cement Terminal global peers. (GRI 102-2) Directors for Sales, Logistics, Finance and HR have a direct reporting line to First to offer Bulk cement and Sustainable Construction the respective Vertical Head who is a Ready Mixed Concrete - two value ACC leads the cause of sustainable member of the Executive Committee. additions that have accelerated construction in India. Cement House, Procurement activities are managed by the quality and pace of large the company’s 78 years old stately the India Procurement Organization. constructions all over the nation. headquarters, was the first renovated First to install Pollution control building in India to win the Green Governance equipment at its Jamul plant building LEED Gold certification and The company’s Governance philosophy more than 50 years ago, much 5-Star label from the Bureau of Energy is built on strong ethical values based before it was declared mandatory Efficiency in 2009. Later two other Green on the values of ACC’s founders who to do so. buildings the Central Control Room of the were reputed business houses with Chanda Plant (in 2011) and La Residency high standards of business ethics. First to support Corporate Social in Thane, a residential facility (in 2013) These rich traditions continue today. Responsibility initiatives got certified as LEED Platinum. Today The Company’s fundamental values First to set up the world’s the company’s Green Building Centres are based on integrity, respect for the largest clinkering line at Wadi in (see box)promote cost-effective and law, commitment to product quality, Karnataka and affordable construction in semi-urban customer excellence and concern for and rural India. ACC actively supports the the environment. ACC is professionally First to introduce Global LafargeHolcim Foundation to promote managed with a majority of its Directors Positioning Systems (GPS} and the world’s most significant competition being Independent Directors. Mr N S RFID technologies to modernize in sustainable design. Sekhsaria is the Chairman of the Board logistics in cement industry of Directors and a Non-Executive and Corporate Citizenship Independent Director. Mr Harish Badami, Chief Executive Officer & Managing ACC was chosen from among several Director, was in charge of day-to-day Green Commitment leading companies to receive the first- working and operations of the Company ACC has always acted as a responsible ever ICSI-CSR Excellence Award in 2O16 till Mr Neeraj Akhoury was appointed and creative constituent of society. It instituted by The Institute of Company as Managing Director & Chief Executive was one of the first Indian companies to Secretaries of India. This speaks volumes Officer on February 4, 2017. Mr Eric Olsen demonstrate environment conservation of the company’s social volunteering served as Deputy Chairman during 2016. as a corporate objective. Evidence of this initiatives which began much before the may be seen in its Articles of Association, term corporate social responsibility was Trailblazer in its earliest greening and tree even coined. The company continuously ACC is a leader in the manufacture and planting activities at its oldest locations engages with the rural population in the promotion of Blended Cements namely, in Lakheri and Kymore and in back vicinity of its operations to improve the
Sustainable Development Report 2016 07 2.1 Building the Nation
quality of their lives in the areas of Livelihood, Education, Water, Health, and Sanitation. In 2016, ACC reached out in this way to more than 4.23 lakh inhabitants in 202 villages across the country. Noteworthy ongoing initiatives include two world-class treatment centres for patients of HIV/AIDS, three company-managed technical institutes, support to seven government-run technical schools for students from remote places, and an online educational initiative for children, Vidyasaarathi.
Green Building Centres
In this unique venture to promote affordable construction solutions, the company encourages small businesses to set up production hubs and “one-stop shops” in small towns and semi-urban clusters to make and distribute a range of building components and accessories for housing and other constructions.
ACC Green Building Centres provide opportunities to open localised businesses, generate avenues to develop micro- entrepreneurships and engage with local communities in creating livelihoods in several trades and in forging partnerships with local bodies and communities. The promoters are assisted in acquiring know-how, training, product testing facilities and product development. The products typically comprise fly ash bricks, roofing, tiles, toilet blocks and sanitation products. The supply of these building materials is rendered affordable and sustainable as they are made by local people using local processes or simple borrowed technologies that are transferred to local entrepreneurs.
The first few centres were opened in 2013 in Uttar Pradesh, Madhya Pradesh, Maharashtra, and Rajasthan. By the end of 2016, 22 Green Building Centres were operational with 23 under construction. About 25 more centres are under discussion. The footprint is expanding rapidly with local partners being added in several regions.
Typically each centre offers direct employment to about 30 persons while providing indirect livelihood and support to another 120 people. One successful centre is managed by a women’s self-help group. Besides employment, the centres have demonstrated other positive results in respect of sustainability parameters. The use of Cement Bricks and interlocking pavers in Sanitation and Rural Road projects helps conserve fertile top soil; the use of local sourced materials and the utilization of wastes serves to cut carbon emissions.
So far some 60 events and workshops have been held across the country to create awareness about this simple approach that promotes sustainability in construction by creating an eco-system for affordable housing and sanitation. Workshops with owners of red brick kilns led to six of them joining as partners. The concept has also impressed executives from LafargeHolcim’s CSR and Sustainable construction streams who have identified its potential to be replicated elsewhere in the developing world.
08 Sustainable Development Report 2016 Awards in 2016
‘First ICSI CSR Excellence Awards 2016’ 13th National award for Excellence ACC featured in CII’s list of ten instituted by The Institute of Company in Cost Management conferred by Sustainable Plus Platinum 2015 Secretaries of India in the Award The Institute of Cost Accountants of companies and rated “India’s Most Category ‘Best Corporate – Medium’ India Sustainable”.
CII-ITC Sustainability Awards 2016 for ACC awarded for logistics A full list of awards may be seen in the company’s Corporate Excellence - Outstanding excellence in “Supply Chain website at http://www.acclimited.com/about/ Accomplishment in category A Technology Advancement/Solution awards-and-accolades Large Companies by the CII-ITC Implementation” category at the Centre of Excellence for Sustainable Manufacturing Supply Chain Awards Development 2016 National Institute of Industrial Institute of Chartered Accountants Engineering’s ‘Lakshya Avartan - On of India (ICAI) awarded the Silver the Job Achiever’s Contest’ Award to Award to ACC for its Annual Report ACC Concrete-Sales and Marketing 2015
Sustainable Development Report 2016 09 2.2 Products & Services
Pozzolana Cement (PPC). Blended cements, PSC and PPC are made by substituting a part of clinker (which is limestone-based) with certain industrial by-products, namely Slag - derived from steel plants and fly ash -- a waste from thermal power stations, respectively. The significant role played by blended
cements in reducing CO2 emissions and resource conservation is well recognized globally. ACC has been in operation for more than eight decades. Its products and services ACC has also pioneered the distribution are reputed for raising mega structures of Bulk Cement in 1992 and a year and iconic landmarks across the country later in 1993 the company introduced that depict a nation in progress. Ready Mixed Concrete. ACC is among the largest suppliers of concrete in ACC has played a meaningful role in the country. These two products have building the nation, providing quality been contributing significantly to the building materials and services and construction industry – bringing in sharing its expertise - touching the lives sophisticated practices and speeding of people in every city, town and village. up large infrastructure, industrial and Its presence has been vital in raising housing projects. mega structures like dams, canals, The company promotes irrigation schemes, power plants, ports, As the government moves ahead a range of ‘Premium’ roads and railways besides enabling with plans for greater investments in urban transformation with skyscrapers, infrastructure development, Smart cements which are flyovers & bridges, airports and metro Cities and urban transformation, the offered in higher quality rail projects. company has also revved up its capability to provide quality building materials packaging, Paper bags, Types of Cement and services to match the engineering Laminated PP bags and ACC makes four types of cements used in excellence that goes into implementing general construction. ambitious projects necessary in these Ad Star Bags. segments. 43 Grade Ordinary Portland Cement 53 Grade Ordinary Portland Cement Customers Portland Pozzolana Cement and ACC is regarded as a trusted brand by our largest customer segment comprising Portland Slag Cement individual home builders across India. Besides, we also cater to large projects - ACC’s range of ‘Premium’ cements (www. industrial, infrastructure and commercial acclimited.com/products/premium- (ICI). These customers typically purchase cements), offered in superior packaging cement directly from the company. In – paper, laminated PP and Ad Star addition there are units that consume bags, assure enhanced performance in cement as raw material such as concrete respect of early strength and durability. product makers and ready mixed (GRI 102-2) concrete plants. (GRI 102-6)
Blended Cements Nationwide presence ACC has been in the forefront in the A large network of dedicated dealers cement industry to introduce and and retailers reach out to a countrywide promote Blended cements namely customer base. These channel partners Portland Slag Cement (PSC) and Portland play a critical role in providing primary 10 Sustainable Development Report 2016 customer care and service to end- the relevant statutory ones prescribed by In 2016, there was no incidence of users. Our sales personnel based in the Indian Standards. ACC offers cement non-compliance with regulations and the company’s sales units, area offices conforming to 43 Grade Ordinary voluntary codes concerning product and districts keep in regular contact Portland Cement (IS 8112- 1989), 53 and service information and labeling. with dealers and retailers to meet their Grade Ordinary Portland Cement (IS Similarly there was no instance reported specific requirements. A separate team 12269-1987), Portland Slag Cement for non-compliance with regulations (ICI) manages sales and serves the (IS 455-1989) and Portland Pozzolana and voluntary codes concerning health needs of key customers who comprise Cement (IS 1489-Part 1). and safety impacts of our products and industrial, infrastructure and commercial services. (GRI 416-1) buyers. The sales team is ably assisted by Each bag of cement clearly indicates the Customer Service personnel located in statutory quality specification to which Economic Impact of Cement each office. The Customer Service (CS) the cement contained therein conforms. Cement industry is a major customer Engineers team comprises civil engineers Bags containing Special cements also of Indian Railways, road transport who provide technical assistance and highlight key product benefits in addition and coal industry. Cement plants useful information to the supply chain to the statutory information. tend to generate several multiplier of masons, contractors, architects, and effects both economic and social in engineers. We refer to two codes in the ready mixed concrete business. These are IS 456: 2000, their vicinity. Cement consumption ACC Cement and Concrete plants across Plain and Reinforced Concrete- Code of per capita is seen as an indicator of the country are capable of meeting Practice (Third Revision), (Reaffirmed economic and human development. specific needs of customers including 2005) and IS 4926: 2003, Ready-Mixed ACC continues to make valuable individual builders of small homes to the Concrete- Code of Practice (Second contributions to the national economy, complex and challenging demands of Revision), 2003. supplying quality building materials mega projects. that are essential to build the We do not manufacture any products nation’s housing and infrastructure Ready Mixed Concrete (RMX) that are either restricted or disputed. development projects. ACC set up India’s first commercial Ready Mixed Concrete (RMX) plant in Mumbai in 1994. Today it is one of the largest manufacturers of RMX in India with about 50 modern plants in major cities such as Mumbai, Bangalore, Kolkata, Chennai, Delhi, Hyderabad, Goa, Pune and Ahmedabad. Small building projects and individual home builders seeking high levels of quality assurance can now usher in the same sophistication and value addition into their construction as some of India’s mega projects using ACC RMX- at virtually no extra cost.
ACC Concrete’s range of value- added products (www.acclimited. com/products/concrete-value-added -products) caters to a gamut of requirements - from small applications to special grades for mega structures. ACC RMX is sold directly to buyers and end-users or via our trade channels.”
Quality Specifications ACC observes more stringent quality norms for manufacturing cement than
Sustainable Development Report 2016 11 2.3 Customer Excellence
Customer excellence drives profitable ACC is acknowledged as a supplier who growth. ACC is a customer centric meets high standards in quality and organization and this approach is packaging of cement and ready mixed designed to enrich customer experience concrete, exceeding base statutory and enhance customer value. We work standards and specifications. We also to ensure that our customers get the promote a range of Premium cements best value in our products and services. and value added concrete products with This customer centric approach involves superior features suitable for different Superior products, Superior services and applications and local conditions. ACC is a customer Superior logistics. Customer Service centric organization Individual Home Builders (IHB) remain Customer Service (CS) Engineers at the largest customer segment in terms and this approach is each Sales Unit engage with customers, of volume and profitability. A young supply chain members and Influencers to designed to enrich and dynamic sales force engages with impart knowledge on good construction customers on a one-to-one basis. They customer experience practices. Customer service engineers work with dedicated channel partners visit customer sites and attend customer and enhance customer who in turn, are supported by retailer value. outlets for effective consumer outreach meets to provide all possible guidance at the last mile. and support. Such information is also shared through the website (www. To provide complete focus to acchelp.in) and through appropriate Institutional Customers, ACC has set up literature. To strengthen customer KAM (Key Account Management) team. service, ACC has recently launched They provide a single window solution an Engagement platform at dealer for all cement needs across various counters, called Construction Ka Doctor locations. The KAM team also works with (CKD). The company participates in local the company’s Ready Mixed Concrete exhibitions pertaining to home building (RMX) business to support large buyers and construction materials to reach out of concrete. to a large customer base.
12 Sustainable Development Report 2016 Dealer Meets and Consumer Meets the business of our Channel Partners Foundation2Roof premium cement, was are conducted on a regular basis. who contribute over 80% of our business launched successfully with considerable CS teams network with influential and serve as a strong bond between communication support in Chhattisgarh, groups such as construction engineers, the company and its end consumers. and received a notably positive response builders, developers, promoters and Channel partners play a key role in from our channel partners and key large contractors at technical training brand promotion. Hence their business stakeholders. programmes, seminars and plant success and growth is vital to our own visits. In addition, Mason, Contractor achievements. To maximize brand reach among and Engineer Meets are conducted to young and web-savvy consumers, ACC highlight safety in construction besides We promise to deliver cement on engaged on digital media, social media sharing technical information, product time and in the right quantity to our like Facebook, Instagram, YouTube, on literature and the latest advances consumers. Technologies like Radio mobile media and on Search (Google). in construction. Online forums like Frequency Identification Device (RFID) Concrete Clubs help engineers and and Global Positioning Systems (GPS) Forging new ground, we made customer contractors come together. We support are being harnessed to improve delivery testimonials go ‘Viral’ through the use local Engineering Chapters and technical schedules and enhance productivity. of Whatsapp, launched mobile apps and seminars. connected with end-consumers through Brand Promotion ‘touch-interactive’ mobile innovations. Architects are as such not in direct In 2016, Brand ACC created a compelling We continue to cement relationships proximity with us in the supply chain and lasting image in the minds of our with countless customers across the as our interface with them is usually consumers. Active across mass media, be country. through customers. However we also it Television, Print, Digital & Social Media, interact with them regularly in different Radio or Outdoor – ACC maintained its Product Responsibility contexts such as with promotional brand visibility and outreach to millions Cement and concrete and related raw work of LafargeHolcim Foundation for of households. On Television, ACC materials are generally not considered to Sustainable Construction and The Indian was present on all the leading News have any major safety or health hazards Concrete Journal published by ACC. These channels. We participated in innovative associated with them. However at the serve as useful platforms to address a ‘in-program’ brand integrations in stage of quality assurance, we try to wide range of Influencer groups. multiple television reality shows in key ensure that there is no potential harm markets across India. A hi-decibel ad to our end consumers while they are Complaints campaign, covering top newspapers, handling these products. Towards this The company has an effective complaint radio stations, outdoor, digital & mobile- end, awareness programmes for safe handling system that facilitates prompt phone media, ran in Eastern India – to handling and usage of our products are logging, investigation, resolution and build awareness for our prestigious new conducted for customers, masons and closure. In 2016, a total of 435 complaints Jamul-Sindri plant expansion. ACC F2R engineers to minimize harm, if any. were received from our customers (end- consumers). All complaints (amounting Table 2.3.1 to >99%) were satisfactorily resolved at the close of the year.
Effective customer relationship management (CRM) systems are in place to manage customer transactions, queries and other interactions. A selection of routine studies and dipstick surveys are conducted to understand the needs of our customers. Tools like Net Promoter Score (NPS) and the E3 Model (Economic, Emotional and Ego) help us to gauge dealer satisfaction levels, and their specific requirements.
It is important to support and motivate
Sustainable Development Report 2016 13 2.4 Corporate Governance
ACC’s has a rich legacy of ethical in Jamul, Chhattisgarh and grinding Corporate Governance practices which stations in Jamul and Sindri, Jharkhand. were implemented before they were There were no changes in the company’s mandatorily prescribed. “Transparency” operations nor in the structure of its and “Accountability” the two columns supply chain. Details of the shareholding of good governance are embedded in pattern as at the close of the year may the Company’s business practices be read in the Annual Report 2016 at to ensure fair and responsible the link http://www.acclimited.com/ leadership both at the Board and at the newsite/annual-report-2016/Corporate- Management level. This has enabled Governance.pdf your Company to satisfy the aspirations ACC is a professionally (GRI -102-10) of its various stakeholders and earn managed Company the trust and goodwill of its investors, Board of Directors that functions under business partners, employees and the communities in which it operates. (GRI ACC is a professionally managed the overall strategic -102-16) Company that functions under the supervision of the Board overall strategic supervision of the Organization Board of Directors. A majority of the of Directors. Board comprises Independent Directors, As mentioned in the opening message, including the Chairman and an ACC Limited became a subsidiary of Independent lady Director as required by Ambuja Cements Limited (ACL) in the Companies Act, 2013. The Managing August 2016 following a scheme of Director & Chief Executive Officer of amalgamation between the latter the company is the only whole-time and Holcim (India) Private Limited. executive Director. Over the years, the LafargeHolcim Ltd continued to remain company is fortunate to have eminent as the ultimate Holding Company. The persons from diverse fields as Directors Jamul integrated project was completed on its Board. (GRI -102-18) during the year with a clinkering unit
14 Sustainable Development Report 2016 The Board of Directors is entrusted to of the Chairman. The role, functions, Committees of the Board maintain the tradition of demonstrating responsibility and accountability of the Over the long years of its existence, highest standards of Corporate Board are clearly defined. In addition the Company has developed robust Governance. The Board sets out the to its primary role of setting corporate governance structure and processes. overall corporate objectives and provides strategies and goals and monitoring Various committees are constituted by direction and independence to the corporate performance, the Board directs the Board with the requisite expertise Management to achieve these objectives and guides activities of the management to handle issues relevant to their field for value creation through sustainable towards the set goals and seeks and these are responsible for company’s profitable growth. (GRI -102-16, 26) accountability with a view to create long economic, environment and social term sustainable growth that translates performance: The ACC Board functions in a democratic itself into progress, prosperity and the style and plays a pivotal role in ensuring fulfillment of stakeholders’ aspirations. • Audit Committee good governance. Members are free to It also sets standards of corporate • Stakeholders’ Relationship bring up any matter for discussion at behaviour and ensures compliance with Committee Board Meetings with the permission laws and regulations. (GRI 102-16,17) • Nomination and Remuneration Committee BOARD OF DIRECTORS • Corporate Social Responsibility (CSR) (as on February 4, 2017) Committee Mr. N. S. Sekhsaria Mr. Sushil Kumar Roongta • Risk Management Committee Chairman Mr. Ashwin Dani • Compliance Committee Mr. Eric Olsen Mr. Farrokh K. Kavarana Deputy Chairman Details of the composition of these Mr. Vijay Kumar Sharma Mr. Neeraj Akhoury committees, its members, minutes of Managing Director & CEO Mr. Arunkumar R Gandhi the meetings, terms of reference and the duties of committees, are available in the Mr. Martin Kriegner Mrs. Falguni Nayar chapter on Corporate Governance in the Mr. Shailesh Haribhakti Mr. Christof Haessig Annual report for 2016 at the following link http://www.acclimited.com/ newsite/annual-report-2016/Corporate- Governance.pdf (GRI 102-18-24)
The policy for remuneration of directors, Key Managerial Personnel and ExCo Members is set out in Annexure ‘C’ of Annual Report (Page 66-67) which forms part of the Board’s Report and may be read at the link: http://www.acclimited. com/newsite/annual-report-2016/ Annexures-to-Directors-Report.pdf. (GRI 102-35,36,37)
Pursuant to the provisions of the Act and the SEBI Regulations, the Board has carried out the annual performance evaluation of its own performance including on aspects relating to sustainability, as well as the evaluation of the working of its Audit, Nomination & Remuneration and Compliance Committees respectively. Details are available in our Annual report, (page 93,
Sustainable Development Report 2016 15 2.4 Corporate Governance
100) at http://www.acclimited.com/ Sustainable Development Council (SD with the interest of the Company. newsite/annual-report-2016/Corporate- Council) comprising cross-functional (GRI 102-25) Governance.pdf (GRI 102-28). representatives. A core group of this council advises it on broad issues, Internal Audit Compliance with provisions of SEBI target setting, reporting and reviews The Internal Audit (IA) function reports (Listing Obligations and Disclosure including inputs on engagements with to the Audit Committee of the Board, Requirements) Regulations, 2015, the key stakeholders. Any issues relating which helps the function to maintain Code of Business Conduct adopted to sustainable development that are its objectivity and independence. The by the company and the presence found to be substantive in nature are Internal Audit Department evaluates of distinguished personalities as informed as and when relevant to the the efficacy and adequacy of internal independent Directors on the Board Compliance Committee or at times the control system, its compliance with helps avoid conflicts of interest. Directors Board itself. operating systems and policies of are required to declare details of their the Company and accounting membership in other corporate entities Each material aspect and its related procedures at all locations of the and body corporate. These are filed processes are assigned to specific Company. Based on the report of with the Registrar of Companies and functional departments. Accountability internal audit function, process as such the information is available is further ensured by cascading tasks owners undertake corrective action in the public domain to anyone who and incorporating relevant job in their respective areas and thereby is interested. There is no incidence of descriptions, KPIs and targets into the strengthen the controls. Significant audit cross-shareholding with suppliers or any performance management system. observations and corrective actions are other stakeholders. We have not had any presented to the Audit Committee of the incidence of conflict of interest in the In 2016, apart from Group level issues Board. year under review. (GRI 102-25). such as the 2030 Plan for Sustainability and H&S priorities, the company carefully Internal Controls Risk Management tracked important issues such as those The Company has in place adequate pertaining to Competition Law, changes The Board’s Risk Management Committee internal financial controls commensurate in mining and new environmental presides over an annual process that with the size, scale and complexity of its regulations, company law, economic is meant to identify, monitor and operations. During the year such controls reforms and taxation. (GRI 102-27, 31,32, minimize business risks and mitigation were tested and no reportable material 33, 34) plan. It assists the Board in reviewing weakness in the design or operations the Business Risk Management Policy were observed. The Company has policies and assessing various kinds of risk to and procedures for ensuring the orderly which the company is exposed, including Our Vision and efficient conduct of its business, risks relating to aspects concerning To be one of the most including adherence to Company’s sustainable development. The respected companies in India; policies, the safeguarding of its assets, committee oversees risk management recognized for challenging the prevention and detection of frauds as performed by the management to conventions and delivering and errors, accuracy and completeness ensure that the process conforms to legal on our promises. of the accounting records and timely requirements and SEBI guidelines, while preparation of reliable financial also identifying business opportunities. information. (GRI 102-29, 30, 31, 32) Related Party Transactions The Board has approved a policy for Corporate Policies Sustainability Matters Related Party Transactions which is The company has well-defined policies The function of Sustainable uploaded on the Company’s website at concerning key areas of business Development is headed by the MD http://www.acclimited.com/newsite/ support management and employees to & CEO, who is an executive Director pdf/CG/PolicyonRPT.pdf All transactions demonstrate conduct that is in keeping of the Board. He is assisted in this with related parties were in the with the company’s vision and goals and regard by an Executive Committee ordinary course of business and on an aligned with policies of our promoter (ExCo) which includes the heads of the arm’s length pricing basis. There were group. These are reviewed from time to functions of economic, environmental also no materially significant time and revised to reflect changes in and social aspects of sustainability. The transactions with related parties during contemporary practices. The approved MD&CEO or an ExCo member chairs a the financial year which were in conflict policies are widely communicated to
16 Sustainable Development Report 2016 employees and to the external public and stakeholders. An umbrella policy on Sustainability is presented here. Policies on Energy, Environment, and Corporate Social Responsibility are reproduced elsewhere in the report. Similarly there are policies in place for Health and Safety (H&S), Alternative Fuels and Resources (AFR) and Quality.
Organization Structure Since April 2015, the organization structure is function-based, which has worked well and has resulted in harnessing functional expertise in driving business effectively and in addressing operational challenges swiftly and proactively. The function- based structure is led by the Managing Director and Chief Executive Officer. It is broadly divided into verticals for discuss and decide on cross functional Sales & Marketing, Corporate Services, operational matters, address various Manufacturing, Human Resources, business challenges and monitor Finance and Procurement. Cement Plants implementation of decisions taken. The and Marketing units are grouped into four ExCo meets monthly when it conducts regional clusters, namely North, South, monthly performance reviews, annual East and West. The Regional Directors planning & budgeting and deliberates for Sales, Logistics, Finance and HR have on the resolution of important business a direct reporting line to the respective issues. The Company follows Vertical Head who is a member of the Executive Committee. The Director Plant Cluster Heads and Director Plant - a policy of “Zero reports to the respective Manufacturing Cement plants have been divided into Tolerance” to bribery Cluster Head in the region. Procurement regional clusters with a cluster head activities are managed by India in place for ease of administration and corruption in any Procurement Organization executed and supervision. Each cement plant form and the Board has from five Procurement Cluster offices. and cement grinding unit is headed by a Director Plant who is responsible laid down the “Anti The other functions of Health & Safety, for operation and maintenance and Bribery & Corruption Secretarial & Compliance, Legal and day-to-day management of the plant, Directive” which forms common functions such as Techport and including local issues and compliances Geocycle India report to the MD & CEO. as applicable. The Director Plant reports an Appendix to the to the respective Manufacturing Cluster Code. Executive Committee (ExCo) - The Head who in turn reports to the Chief Executive Committee supports the Manufacturing Officer. The Chief Managing Director & CEO. This Manufacturing Officer is a member of Committee operates within the the Executive Committee. framework of the strategic policies laid down by the Board and is responsible Ready Mixed Concrete - This business and accountable for overall business is led by a Chief Executive who reports deliverables. The ExCo is a platform to the MD & CEO. It is arranged into for the Committee Members to meet four different regions organized to on a regular basis to review monthly oversee plant operations and the sale of performance against set targets, concrete.
Sustainable Development Report 2016 17 2.4 Corporate Governance
Corporate Governance practices, on annual basis for relevant employees Pursuant thereto, a dedicated helpline structure and policies are described in of the Company, particularly those “ACC Ethics Helpline” has been set-up detail in the company’s website at www. in sales and purchase functions, on which is managed by an independent acclimited.com and in the chapter on various aspects of competition law and professional organization. The Ethics Corporate Governance on page 84 of the on behavioural aspects for ensuring Helpline can be contacted to report company’s Annual Report 2016. fair competition in the marketplace. any suspected or confirmed incident E-Learning training is imparted to all of fraud/ misconduct: E-Mail: acc@ Code of Conduct relevant employees in addition to face- ethicalview.com; Online reporting : The Board of Directors has approved to-face training. Specific modules on https:integrityline.holcim.com a Code of Business Conduct which is “Do’s and Dont’s” in a tender bidding applicable to the Members of the Board process have been added. In addition National Toll Free Number: 1800-209- and to all employees. The Company to the above, various processes of the 2008; Fax Number: +91(22) 66459575; follows a policy of “Zero Tolerance” to Company are subject to audits and Address: PO Box 137, Pune 411 001. A bribery and corruption in any form and where required further strengthened. high level Committee then examines the the Board has laid down the “Anti Bribery complaints and sends its report to the & Corruption Directive” which forms an Vigil Mechanism / Whistle Blower Audit Committee and the Board. Appendix to the Code. The Code has been Policy posted on the Company’s website www. The Company has a vigil mechanism Insider Trading acclimited.com. named “EthicalView Reporting Policy” Pursuant to the SEBI (Prohibition of (EVRP) to report concerns about unethical Insider Trading) Regulations, 2015, The Code lays down the standard of behavior, actual/suspected frauds and which came into effect from May 15, conduct which is expected to be followed violation of Company’s Code of Conduct 2015, the Company has formulated by the Directors and by the employees in and/or Ethics Policy. Protected disclosures the “Code of Internal Procedures and their business dealings and in particular can be made by a whistle blower through Conduct for Regulating, Monitoring and on matters relating to integrity in the several channels. The Audit Committee Reporting of Trading by Insiders” and work place, in business practices and in of the Board oversees the functioning the “Code of Practices and Procedures dealing with stakeholders. of the EthicalView Reporting Policy. for Fair Disclosure of Unpublished Price The Company has disclosed details of Sensitive Information” (ACC Code) which The Code gives guidance through the EthicalView Reporting Policy on its allows the formulation of a trading plan examples on the expected behaviour website at http://www.acclimited.com/ subject to certain conditions. The ACC from an employee in a given situation assets/new/pdf/ethicalViewPolicy.pdf Code mandates taking of pre-clearance and the reporting structure. All the Board for dealing in the Company’s shares. Members and the Senior Management During the year, the Company reached It also prohibits the purchase or sale personnel have confirmed compliance out extensively to employees to conduct of Company’s shares by the Directors, with the Code. All Management Staff greater awareness on Fair Competition designated employees and connected were required to complete an e-learning Directive and on Anti Bribery and persons, while in possession of module in addition to the face-to-face Corruption Directive (ABCD) through unpublished price sensitive information training conducted by the Company e-learning modules and face-to-face in relation to the Company and during from time to time. training sessions, achieving a high the period when the Trading Window is level of engagement and compliance. closed. Fair Competition Directive This reflected your Company’s strong Programme commitment to “Zero tolerance” for The Company Secretary & Head Fair Competition Directive programme non-compliance in this regard and to do Compliance is responsible for earlier known as Value Creation in business with integrity. implementation of the Code. Competitive Environment (VCCE) was introduced by the Company as early as The Company has an EthicalView All Board Directors, designated 2008. The Company has been carrying Reporting Policy to deal with instances employees and connected persons have out extensive training sessions for of fraud and mismanagement, if any. affirmed compliance with the Code. creating awareness among relevant The EVR Policy ensures that strict employees on fair competitive practices. confidentiality is maintained whilst dealing with concerns and also that no Under the fair competition programmes, discrimination will be meted out to any training sessions are being conducted person for a genuinely raised concern.
18 Sustainable Development Report 2016 2.5 Compliances & Other Aspects
Compliances Business Ethics and Fair Practices Compliance is of paramount important The company leadership team places to safeguard the invaluable corporate great emphasis on values such as reputation ACC has earned over decades integrity, transparency, fair and ethical of conducting business with integrity business practices and accountability and in a fair manner. As a responsible to stakeholders. ACC routinely calls organization, we are deeply conscious on all its management staff to study, that compliance with all applicable understand and observe the Code of laws and regulations including Business Conduct to demonstrate ethics those pertaining to environmental, and good business practices. The code is labour, market communications, framed to meet Group standards which product liability, health & safety and are often stricter than local regulations. competition law matters, is mandatory We revised the Code of Business Conduct and non-negotiable, besides involving in 2015 and 2017, to further strengthen The company leadership considerable financial and other risks. our practices. This code, EthicalView Reporting Policy, and its well structured team places great We have comprehensive guidelines, control systems are subjected to regular emphasis on values policies and codes governing ethical review for their effectiveness to reinforce such as integrity, conduct, fair competition and anti- accountability and integrity of reporting corruption. Our internal norms are and ensure transparency and fairness in transparency, fair invariably more stringent than statutory dealing with all stakeholders. and ethical business requirements. Compliance with norms and regulations is monitored and EthicalView Reporting Policy practices and reviewed in periodical meetings of top The Company’s vigil mechanism named accountability to management. All operations at our “EthicalView Reporting Policy” (EVRP) cement plants, mines, captive power reports concerns about unethical stakeholders. plants, the Ready Mixed Concrete behavior, actual/suspected frauds and business and the organization as a whole violation of Company’s Code of Conduct are required to meet compliance with and/or Ethics Policy. Protected disclosures all internal performance parameters can be made by a whistle blower through without exception as well as relevant several channels. The Audit Committee statutory norms pertaining to of the Board oversees the functioning manufacture, packaging and labeling. of the EthicalView Reporting Policy. The Accordingly all senior executives and Company has disclosed the details of management staff are regularly made the EthicalView Reporting Policy on its aware of the requirements and latest website http://www.acclimited.com/ provisions of applicable laws and assets/new/pdf/ethicalViewPolicy.pdf regulations. (GRI 417-1) The FRM policy is replaced by the Senior management regularly reviews EthicalView Reporting Policy” (EVRP) and and monitors the status of compliance is overseen by the EthicalView Committee with norms and regulations. During the comprising the Head Compliance & year under consideration, there was no Company Secretary, Head Internal Audit, incidence of significant monetary fines Head Legal and a senior manager acting or non-monetary sanctions or disputes as its Secretary. The Audit Committee of with regard to any laws and regulations the Board oversees the functioning of the referred. No cases were brought against EthicalView Committee.The reporting the company through the invocation channels (Email, Toll Free Phone, Post of any national or international dispute Box and Fax) of EthicalView Reporting mechanisms. There were no significant are outsourced to a Third Party Agency orders passed by Regulators or Courts to maintain independence. Details of which would adversely impact the the EthicalView Reporting Policy are Company and its future operations. available on the company’s website at Sustainable Development Report 2016 19 2.5 Compliances and Other Aspects
http://www.acclimited.com/assets/ Donations and Political filed by the Builders’ Association of India new/pdf/ethicalViewPolicy.pdf contributions for alleged violation of the provisions of Based on its stated objective of being Sections 3 and 4 of the Competition Act During the year, the Company reached impartial and neutral, the company and in terms of the said Order, imposed out extensively to employees to does not canvass or campaign for, a penalty of 0.5 times of the profit of the conduct greater awareness on Fair make donations or lend support in fund Company for the year 2009 (calculated Competition Directive and on Anti raising to any political party. This is prorata from May 20, 2009) and for Bribery and Corruption Directive also prescribed in our code of business the full year 2010. For ACC, the penalty (ABCD) through e-learning modules conduct. The company only “makes amounted to Rs. 1147.59 crore. and face-to-face training sessions with charitable donations that are legal and all levels of employees, achieving near ethical under local laws and practices CCI had also passed an Order directing total engagement and compliance. and that are in accordance with the the Company to “cease and desist” This reflected the Company’s strong Community Plan of the Company.” The from indulging in any activity relating commitment to “Zero tolerance” for policy further debars employees from to agreement, understanding or non-compliance and to do business with making any contributions to political arrangement on price, production and integrity. Complainants were promised parties or individuals in order to secure supply of cement in the market. strict confidentiality and a retaliation- political or commercial influence. free environment. Various independent Pursuant to an Appeal filed by the channels available to report incidents of Anti-competition Company before the Competition violations or misconducts included the The Value Creation in Competitive Appellate Tribunal (COMPAT), the said following- Environment (VCCE) programme was order of CCI of June 2012 was stayed, 1. Call a Toll Free Number 1800 209 introduced in ACC as early as 2008 and subject to deposit of 10% of the amount 2008 since then we have organized extensive of penalty. Thereafter COMPAT by its training sessions to create awareness order dated December 11, 2015 set aside 2. Leaving a voice message at Toll Free among employees to conduct business CCI’s Order of June 20, 2012, remanding Number 0008000410035 (from in a fair manner, upholding the interest the matter back to the CCI for fresh mobile phones only) of consumers. With the coming of the hearing and adjudication. In terms of the 3. Send an email to acc@ethicalview. LafargeHolcim group, the VCCE initiative said Order, the deposit amount along com is renamed as the Fair Competition with interest thereon was refunded to the Company. CCI on rehearing the 4. Send a letter to PO Box 137, Pune Directive (FCD). arguments, by its order dated August 411001 or directly to the Chairman Legal Actions 31, 2016, once again held that the of the ACC Audit Committee at ACC’s cement companies and the Cement office There are two pending cases of legal Manufacturers’ Association (CMA) are actions taken against the company 5. Send a fax to +91 (22) 6645 9575 guilty and in violation of the Sections for Anti-Competitive Behaviour and 3(1) read with 3(3)(a) and 3(3)(b) of the 6. File an online report at https:// monopoly practices. The company has Competition Act and imposed the same integrityline.holcim.com presented its defence before the relevant penalty which in the case of the Company authorities to explain its position in again works out to Rs. 1,147.59 crore. The In 2016, the Company received 1O4 respect of the case. Believing that we usual order for cease and desist was also complaints under the EthicalView have a strong case in this regard which imposed. Reporting Policy, of which 94 were is backed by the advice of our legal resolved and the balance 1O complaints counsel, we have not made any financial Thereafter the Company approached are under various stages of investigation provisions in our books for fines and the COMPAT, which by its order dated and completion. penalties. November 7, 2016 stayed the operation of the CCI order of August 31, 2016 The ACC EthicalView Helpline is managed Competition Commission of India subject to deposit of 10% of the penalty by an independent professional (CCI) amount within one month. The Company organization. The company is confident The Competition Commission of India accordingly deposited an amount of Rs. that this new feature will bring about (CCI) had originally passed an Order 114.76 crore in December 2016 in the greater integrity in our business in June 2012 against several cement form of a bank Fixed Deposit in favour of practices, behaviours and transactions. manufacturing companies, including the COMPAT on behalf of the Company. The Company, in the matter of a complaint case is now pending before the COMPAT. 20 Sustainable Development Report 2016 Anti Corruption positions or functions individually. The the year two contracts with business The company reviews and strengthens difference may lie in the importance, size partners were terminated due to its internal controls from time to time to and scale of the function such as sales, violations related to corruption of the minimize and eliminate risks arising out procurement and logistics. above incidents. There were no public of bribery and corruption. We assume legal cases regarding corruption brought that all functions are equally prone There were 3 confirmed incidents of against the organization or its employees to corruption risks and do not think it corruption cases in 2016 in which 3 during the reporting period. to be practical to segregate persons, persons have separated. Also during
Sustainable Development Report 2016 21 3.0
22 Sustainable Development Report 2016 Strategy & Approach
3.1 Stakeholder Engagement
3.2 Materiality & Strategy
3.3 Business Risks & Opportunities
3.4 SD Scorecard 2016
3.5 SD 2030 Plan
Sustainable Development Report 2016 23 3.1 Stakeholder Engagement
Open and transparent channels of analysis periodically and last exercise communications help us reach out to was conducted in 2014 where we all stakeholders and seek their valuable had performed detailed stakeholder opinion in order to respond in a timely identification, understanding and manner. mapping their interface & influence and thereafter stakeholder prioritization. In Being a leading member of the cement 2016, we undertook the validation for and concrete industry we have a pan- stakeholder prioritization wherein the India footprint, reaching out to a very outcome was similar to that of 2014. large population of stakeholders of (GRI 102-40, 42) diverse groups across the country. Nearest to us is of course our workforce A comprehensive list of our stakeholders comprising permanent employees, is given in Table 3.1.1 which shows Being a leading contract and third party workers and different groups, from employees who trade unions. The community that lives comprise the group nearest to us to member of the in the vicinity of our plants and mines future stakeholders. The groups are cement and concrete is important to us as are our customers. mapped according to their interactions Each year the company touches the and proximity to us including their industry we have a lives of lakhs of Indians who purchase interest, impact and influence on us. pan-India footprint, our cement and concrete through the We acknowledge that these stakeholder reaching out to a very company’s vast network of dealers and relationships and their needs are retailers. subject to change depending on various large population of factors such as those relating to the stakeholders of diverse Stakeholder Analysis environment, in which we operate, groups across the In addition to a nationwide presence, ACC technological developments, economic is now part of the global LafargeHolcim progress, changes in demography or even country. group and thus has an even larger and structural shifts in our own organization. diverse population of stakeholders. In It then becomes necessary to manage many cases, the diversity is so high that and monitor stakeholder relationships in the only similarity is the association a dynamic way. with ACC. We conduct stakeholder Table 3.1.1
Mapping Stakeholders High Shareholders Employees Investors Customers Influencers Channel partners Consultants/Advisors Vendors Promoters Government / Regulators Local Communities Impact and Competitors Influence on ACC Activists Mass Media Future Stakeholders Employees Families National Community Social Workers / NGOs Global Community Industry & Associations Low Interface with High and proximity to ACC
24 Sustainable Development Report 2016 Effective Engagement We engage closely with stakeholders across all functions and at different levels depending on the stakeholder group. Table 3.1.2 illustrates our basic engagement strategy while Table 3.1.3 outlines a detailed matrix describing how we approach each key stakeholder group. Communication is an important aspect of engagement using direct and indirect reporting systems. Simultaneously we seek feedback and suggestions to help make continuous improvements in the quality of our services. The aim of Sustainability reporting is to build a strong chain of accountability within the organization. Securing external assurance further helps enhance accountability.
Table 3.1.2
Engagement Strategy High Nurture Engage actively Promote Communicate Impact and Reinforce Influence on ACC Monitor Retain interest occasionally Monitor regularly Keep in Touch
Low Interface with High and proximity to ACC
Table 3.1.3 Stakeholders How we engage Frequency Key topics and Our response to group concerns concerns Employees "Functional and cross-functional Daily, Weekly, Monthly, To reduce complexity in Actions plan for committees, State-of-the- Quarterly, half yearly and the system. closing concerns are business addresses and written annually; based on the To improve work-life discussed, finalized and communications. mode of engagement. balance. implemented. “Town Hall” meetings including To improve intiatives on Our safety management international broadcasts where Health. system and processes employees can ask questions. ensure that any concerns To improve standard in this regard are Extensive intranet operating procedures, addressed effectively. communications including an share best safety practices, E.g. Company has started employee newsletter(ACC Parivar) training requirements, Driver Management with employee feedback. workplace hazards. Center to educate drivers Intranet communication portal, Better Communication and on GPS, Journey risk Cultural events Employee surveys. awareness for concepts management and tool Employee health and safety such as Co-processing. box talks. committees, regular meetings. Toolbox talks, Trainings, Visible Personnel Commitment Annual Satisfaction Survey.
Sustainable Development Report 2016 25 3.1 Stakeholder Engagement
Stakeholders How we engage Frequency Key topics and Our response to group concerns concerns Government/ Regular visits, Applications, As and when required. To prepare plants to com- Regular visits to address Regulators/ Local Meetings, presentation, reports ply with new environment these concerns. Authorities and networking in different regulations. Participation in different forums organized by regulatory forums organized by authorities, presentations from regulatory authorities, management presentations from management regarding concepts of co-processing and benefits associated with co-processing of waste over tradtional waste management options. Channel - Dealers Engagement with Channel Daily. The frequency of 1. Local brand building 1. Local brand building & Retailers partners at all levels that can be Sales Calls and Relation- activities activities - ACC is broadly classifed as below ship building activity are 2. Timely Deliveries/ optimizing the brand 1. Sales Calls - Managed by Local a function of the com- Regular availability building activities as per mercial priorities of the commercial priorities and ACC Sales officer. Purpose - to align 3. Lower Profitability commercial goals of the company company in the respec- needs of the markets. with those of individual Channel tive markets. However Benchmarking done at a partner in terms of sales and price Dealer Meets are generally local level with the best premiums. conducted on an annual players in respective basis. The NPS survey is an areas. 2. Dealer Meets - Managed annual exercise. at a senior level. Purpose - to 2. Timely deliveries/ give a direction to a group of Regular availability - Channel partners on commercial Optimum production parameters. & logistics planning is undertaken in peak 3. Relationship building activities demand period (January - Regular activities like Festival to June) to improve meets, Picnics and Trips are cement availability. Also organized with Channel partners. technologies like RFID Purpose - to engage with Channel and GPS are deployed to partners and their families and improve delivery services thus create and nurture an and improve productivity. emotional bond with them. 3. Profitability - Concept 4. Net Promoter Score (NPS) of higher turnaround in Survey - Conducted through popular brands vs. higher tele-calling to understand their per bag margin in less satisfaction with ACC on different popular brands explained operational areas. in simple terms.
26 Sustainable Development Report 2016 Stakeholders How we engage Frequency Key topics and Our response to group concerns concerns Consumers ACC engages with consumers in Consumer calls and Consumers have no prior ACC always imparts (Trade) - Individual following formats Consumer Meets are experience with home- knowledge about good Home Builders, Direct Consumer calls - ACC conducted based on the building and therefore construction practices. Contractors Customer service engineer visits commercial priorities and their key areas of concerns The same is done the consumer building sites and prevailing brand equity are: by Customer service informs them about benefits of of ACC in the market. 1. Selection of good engineers in person using ACC products and services. In strong brand equity contractor at customer site and markets, the frequency at customer meets. These are one on one meets. 2. Estimation of of these activities is This information is Consumer Meets - ACC invites construction costs lower. Participation in also imparted through consumers in specific localities Exhibition is done based 3. Selection of Good website and literature for a meeting. Purpose is to on opportunities in the Cement as well. ACC has recently educate them about ACC products market. 4. Process of Good launched an Engagement and impart knowledge on good Construction platform at Dealer construction practices. counters called, CKD Exhibitions - ACC participates in (Construction ka Doctor). local exhibitions pertaining to home building and construction materials. Consumers We engage with this segment, Frequency of engagement Key concerns of this To bring complete focus (Institutional) on a one-to-one basis through is based on the value of segment have been on this segment, we regular sales calls. We position the customer in terms of 1. Timely supply and have KAM (Key Account itself as a solution-provider volume of cement and consistency in product Managemet) teams capitalizing on our experience of period of consumption. quality for the entire in place who provide 80 years of cement and concrete project. one window solution manufacture. Principles of KAM for all cement needs 2. One Window solution (Key Account Management) i.e. across locations. KAM for all cement and engaging with consumers across teams now also support concrete needs. different functions levels i.e. customers of Concrete procurement, project, quality working in synergy with and finance are being deployed ACC RMX team. selectively. Communities We engage with them through Programme based and Enhancing of livelihood, All our CSR interventions company’s CSR interventions, Daily employability and income are generally participatory volunteering initiatives, generation, Providing in nature and are community events and functions, quality education, designed to address Community Advisory Panels, and preventive health and specific key topics and Social Audit. sanitation to all sections in concerns. community. Improving community environment, sustainability and infrastructure development. Investors Annual General Meetings, the Quarterly/annually/ as Company’s financial Each query / complaint is “Stakeholders’ Relationship and when required health, growth and addressed individually. Committee” addresses grievances performance During the year, most of of investors and shareholders. We Dividend payments the complaints have been have e-mail ID to enable Members Change of address attended/resolved. and Investors to correspond with The balance complaints the Company.There is a toll free were under various stages number 1800-3002-1001 that of investigation. Members and Investors can call.
Sustainable Development Report 2016 27 3.1 Stakeholder Engagement
Stakeholders How we engage Frequency Key topics and Our response to group concerns concerns Vendors and By regular interaction either by As and when required. Registration as approved As per our established Suppliers phone, VC, e-mail or in person. vendor procurement practices Product specifications Pricing Delivery period Terms of payment Product failures User complaints Civil Society We interface with them by Meetings with Partner Enhancing of livelihood, ACC takes into account Organisations, engaging them as partners in NGOs happen on daily employability and income these suggestions and NGOs facilitating development. basis. However with other generation, Providing concerns while devising civil society organisations of quality education, CSR strategies and action engagements happens as preventive health and plans. and when required. Annual sanitation to all sections in Stakeholder Engagement community. Survey helps us engage Improving community with all stakeholders. environment sustainability and infrastructure. Waste generators Regular visits, emails, telephonic Monthy or more Delay in service to waste Provide support to conversations, Participation in generators due to long waste generators during various forums, release of case permit process. liasion with regulatory studies and articles in reputed Lack of understanding of authorities. publications, Customer events. how co-processing is the Regular interactions appropriate solution for with waste generators to promoting sustainable promote understanding of waste mangement in the the concept. country amongst some Participation in various waste generators specially forums for promoting small scale industries. discussions and developments on co- processing. Improve collaborations and discussions with industrial bodies such as CII etc for promotion of appreciation of co- processing concept. Trade associations Working on policy documents by Weekly or monthly or No specific concerns. NA and industrial providing inputs. annual based on mode of bodies Participating in Awards , Training engagement. and Capacity Building Programs.
Charters and Memberships and Biodiversity Initiative (IBBI) of as learning from vast data base To pursue the goal of sustainable Confederation of Indian Industry (CII). of knowledge and best practices, development, the company is also (GRI -102-12) opportunities for networking and guided by certain universally accepted partnerships, access to decision-makers charters and principles to which it is At the national level, ACC is a member and experts, better understanding of a signatory or member which include of important chambers of commerce, global and national trends, and gaining the Cement Sustainability Initiative trade and other associations. The insights into Government policies and (CSI), United Nations Global Compact company benefits from these their impact on business. This also helps (UNGC), Leaders for Nature (LfN) of the memberships in a number of ways, get access to platforms to promote International Union for Conservation through seminars hosted by the our products, services and best practices. of Nature (IUCN) and India Business respective associations, as well (GRI -102-13)
28 Sustainable Development Report 2016 The success of our business strategy is how we are able to realign and transform the organization through engagement with principal stakeholder groups. In doing so, we seek to be recognized as a leading champion of sustainable development - not only in the cement industry but on a wider domain.
Table 3.1.4
Organization Issues of interest and benefit to us National Safety Council Learning on best safety practices through newsletters and training opportunities Benchmarking through participating in Awards British Safety Council As above Confederation of Indian Industry Learning best practices and current trends. Sharing issues of common interest with industry Assistance in representing causes of Industry before State and Central Governments Useful platform in lobbying and advocacy Prestigious award competitions Federation of Indian Chambers of Commerce & Industry As above Bombay Chamber of Commerce & Industry As above Indian Merchants' Chamber As above PHDCCI, Delhi As above Council for Fair Business Practices To support the cause of fair business practices and project ACC positively The Institute of Company Secretaries of India Workshops/ seminars on Company Law and to receive important publications/journals on matters relating to Corporate laws Employers’ Federation of India Employee related issues Indian Roads Congress Platform for promoting concrete roads Indian Geological Congress Latest development in the field of Geology Federation of Indian Mineral Industries Interface between Government and mining companies. Regular feedback on recent amendments in law/policy Indian Green Buildings Council Platform for information gathering and networking with potential buyers Association of Business Communicators of India Platform for benchmarking other company publications, best practices and networking
Sustainable Development Report 2016 29 3.2 Materiality & Strategy
Materiality was last assessed in 2015- most important ones under the High 2016 in line with GRI G4 reporting importance category. This outcome is guidelines. The results of that exercise in line with the current requirement also apply to the year 2016. On a quick of compliance to new environment review we find it is also relevant thus regulations, PAT (Perform, Achieve, far in the current year 2017 as the Trade) & Renewable Purchase Obligation organization has not undergone any (RPO). Similarly issues like Health & significant changes in its business or Safety, Anti-corruption, Community constituent stakeholders. The process development; labour relations also we followed included engaging with rated as High importance category are external and internal stakeholders in line with the ambitions of the UN and the whole exercise was conducted Sustainable Development Goals (SDG). using internal resources as an internal The material aspects identified here are exercise without retaining any external aligned with those of the LafargeHolcim consultant or agency. group in terms of its SD 2030 plan which was adapted in formulating ACC’s SD Table 3.2.1 shows the key material issues 2030 plan. While in this report we have where Compliance, Emissions, Water, reported on all topics identied as being Effluents & Waste, Co-processing of material, the key materials topics have waste, Energy had been rated as the been covered in more detail. (GRI 102-47) Table 3.2.1
Materiality Matrix (ranked as priority of Aspect) High Respecting Human & Indigenous Rights Compliance Water Biodiversity Health & Safety Community Development Grievance Mechanism Emissions Products & Services Diversity & Equal Opportunity Energy Employment Practices Investment Agreements Materials Effluents & Wastes Equal Remuneration for Women Anti-corruption Labour Relations Customer Health & Safety Economic Performance Training Security Practices Market presence Co-processing of Wastes Transport Stakeholder Concern Expenses on environment Anti-competitive behaviour Customer Privacy Indirect economic impacts Public Policy Supplier assessment Marketing communications
Low Impact and Influence on ACC High
30 Sustainable Development Report 2016 Boundaries for various aspects reported in this report are as given below (GRI 102-46) Cement – a sustainable Table 3.2.2 building material
ASPECT BOUNDARIES The words cement and concrete INTERNAL EXTERNAL INTERNAL & EXTERNAL are often used interchangeably but they denote two distinctly different Materials Transport – Environment Economic Performance products. Portland Cement is the Energy Respecting Indigenous Procurement Practices most popular binding material used Rights in construction. Concrete has been Employment Practices Customer Health and Market Presence the world’s most widely used building Safety material since last century, a status Training and Education Water it is likely not to be dislodged from in the near foreseeable horizon. Diversity and Equal Biodiversity Opportunity The manufacture of cement is a Equal Remuneration for Emissions continuous energy intensive process Women and Men with its principal raw material Security Practices Effluents and Waste being limestone. Each tonne of Products and Services cement requires about 1.5 tonnes of limestone which is mined, crushed, Compliance finely powdered and burnt at very Supplier Assessment high temperatures using coal as Grievance Mechanisms a fuel in a gigantic rotating kiln. This yields clinker, an intermediate Co-processing of Waste product, which when ground with Labour/Management gypsum makes Ordinary Portland Relations Cement (OPC). When inter-ground Health and Safety with fly ash or slag, it makes blended Investment Agreements cements. Concrete is a combination of Portland cement, water and mineral Respecting Human Rights aggregates used together with certain Community Development additives and steel reinforcements Anti-corruption that give the resultant material added Public Policy physical properties. Anti-competitive Though the production of cement Behaviour is energy-intensive, it is recognized Product and Service as the most sustainable and viable Labeling building material, as compared to Customer Privacy steel, stone , glass or other materials. India’s cement industry is the world’s Note: In this reporting period we spent Rs293 crore on environment protection, though as per the latest GRI standards, Expense on environment is no longer a separate aspect or indicator. second largest and boasts the lowest carbon footprint globally. India’s cement industry is among the largest organized industrial sectors in the country that makes substantial contributions to the national economy by way of taxes, duties and royalties as well as being a large customer of sectors like railways, energy, coal and road transport.
Sustainable Development Report 2016 31 3.3 Business Risks & Opportunities
ACC has a robust Business Risk and functioning are described in the Management (BRM) process which Corporate Governance section on page systematically identifies risks and 102 of Annual Report 2016 and may be opportunities and supports the read on our website at the following link Executive Committee in strategic http://www.acclimited.com/source/ decision making. This is a rolling process new/ACC-Annual-Report-2016.pdf A Business Risk reviewed periodically at regional and corporate level. It involves mapping of all The following key business risks (GRI Management the risk elements on two parameters viz. -102-15) were identified through the Committee is in place likelihood of the event and the impact BRM model in 2016: it is expected to have on the Company’s and functions as operations and performance. The risks Fuel Risk required under SEBI that fall under high likelihood and high Cement manufacturing is an energy (Listing Obligations impact are identified as key risks for intensive process requiring large which detailed mitigation plans are quantities of thermal and electrical and Disclosure developed and integrated with the Mid- energy. Coal and Petcoke are the Requirements) Term Planning Cycle and the Audit plan. principal fuels used by the Indian cement (GRI -102-11) industry to produce thermal energy. Regulations 2015. The Company requires more than 5 A Business Risk Management Committee million tonnes of coal and Petcoke to is in place and functions as required meet the requirements of its kilns and under SEBI (Listing Obligations and captive power plants. Linkage coal has Disclosure Requirements) Regulations continued to be in short supply, leaving 2015. The Chairman of the Committee the Company to source its requirements is an Independent Director of the Board at higher prices from the domestic open and the Committee met twice during market and from imports. In recent years, 2016. Details of its terms of reference petcoke emerged as a viable substitute
32 Sustainable Development Report 2016 for coal on account of attractive prices Limestone petcoke and additives which enables it and supply. There is a likelihood that Limestone is the primary raw material to use low grade limestone and thereby the prices of both coal and petcoke required for manufacturing cement. conserve minerals and increase the life of would increase significantly in The security for its uninterrupted long- the mine. coming days. To mitigate this risk the term availability is critical, particularly in Company has already initiated steps view of changing regulations. Under the Opportunities to progressively increase the usage of new Mines and Minerals (Development We believe that nearly every risk faced by Alternative Fuels, improving fuel mix & Regulation) Amendment Act 2015 the company simultaneously offers an at certain plants, entering into firm (MMDR), leases granted before the opportunity that has a potential to create contracts for part volume and balance commencement of the Act, for captive fresh business value. The Company on spot to capture opportunities, use are extended up to a period ending routinely explores such opportunities spread out purchases throughout the on March 31, 2030, or till the completion which may be in the areas of raw year and explore long term offtake from of their renewal period, whichever is materials, their availability and sourcing, local refineries. later. Most of the Company’s limestone energy efficiency, logistics, quality and leases thereby get an extension up to product development, research-based Fair Competition March 31, 2030 by virtue of this Act. market segmentation, benchmarking The Competition law in India is still For new leases, the period of lease will best practices in manufacturing and evolving and an intensely competitive be fifty years from the date of grant. productivity improvement. Such an industry like cement is vulnerable to With the new Act, the earlier policy of approach offers a positive mindset in various interpretations of its provisions deemed renewal has been discontinued viewing situations involving risks. which expose it to significant risks and all the mining leases will henceforth that may include administrative, civil be allotted through an auction, which Apart from possible regulation, or criminal proceedings, financial has made it difficult to retain existing Climate change can potentially impact consequences such as fines and penalties leases /acquire new leases. Forest & Wild the company by necessitating fresh or loss of reputation. Life clearances are now a pre-requisite approaches to raw material, fuel and and land acquisition is becoming more energy usage; process and technology, The Company has in place a Fair challenging and expensive. To address quality and product development. Competition Directive which entails this risk, the Company plans to secure While some of these are already being compulsory adherence by identified new mining leases for its existing addressed as opportunities, we do employees. Regular training is imparted plants as well as for new expansions at not presently have a method in place to all relevant employees through different locations. Further the Company to assess the financial or revenue e-learning modules and face-to-face continues to increase consumption of implications. (GRI 201-2) sessions.
Market Actions The Indian Cement Industry is becoming intensely competitive, with the foray of new entrants and existing players expanding inorganically. This could potentially impact the sales volumes, market share and profitability. To mitigate this risk, the Company is leveraging its new capacity added in 2016 at Jamul and Sindri to increase its market share, enhance its brand equity and visibility, enlarge its product portfolio and service offerings. The Company is also exploring asset light options such as tolling and de-bottlenecking at some of its existing plants to increase volume and market share.
Sustainable Development Report 2016 33 3.4 SD Scorecard 2016
A snapshot of our performance in 2016 against targets of the Sustainable Development Roadmap we had charted for 2017 is presented here in Table 3.4.1.
Table 3.4.1
Parameters Target 2017 Status 2016
CO2 To reduce specific CO2 We have reduced specific emissions by 35% as CO2 emissions to 545 kg compared to 1990 CO2 /Tonne of cement in 2016 which is 32% vs 1990
Thermal Substitution Rate To achieve Thermal We have achieved 3.22 % Substitution Rate of 10% of thermal substitution rate in 2016
Water To reduce specific We have reduced specific water consumption for water consumption by manufacturing of cement 24% in 2016 vs 2012 by 10% as compared to 2012
Specific Total Energy To reduce by 3% as We have reduced Specific Intensity (Metric Tonne of compared to 2013 Total Energy Intensity by Oil Equivalent (MTOE) per 6.22% as compared to Tonne of Cement) 2013.
CSR To continue to expand our Our various CSR initiatives CSR footprint impacted nearly 0.42 Focus on inclusive million people in 2016 business projects like sanitation etc.
34 Sustainable Development Report 2016 3.5 SD 2030 Plan
In 2016, after working with various Implementation of Water Access, stakeholders, ACC worked out a Sanitation and Health (WASH) pledge Sustainable Development (SD) 2030 • People & Communities – Improving plan which is aligned with the H&S performance, gender diversity, LafargeHolcim Group’s Sustainability providing low cost shelters or Strategy - The 2030 plan. ACC’s SD affordable housing, and sanitation 2030 Plan focuses on the four significant areas: Under each pillar, there are measurable • Climate – Reduction of Net specific targets and action plans which are
CO2 emissions detailed in respective chapters of this Report. • Circular Economy – Enhanced utilization of waste-derived resources The success of our business strategy • Water & Nature – Reduction of lies in how best we are able to align specific freshwater withdrawal and energize the organization through in cement operations enhancing engagement with principal stakeholder biodiversity in all operating mines; groups.
Table 3.5.1
Note: Baseline year is 2015 unless stated otherwise WASH Pledge: Water, Sanitation and Hygiene Implementation at the Workplace, LTIFR: Lost Time Injury Frequency Rate, TIFR: Total Injury Frequency Rate
Sustainable Development Report 2016 35 4.0
36 Sustainable Development Report 2016 Disclosures & Reporting
4.1 GRI Reporting
4.2 UN Global Compact
4.3 CSI dashboard 2016
Sustainable Development Report 2016 37 4.1 GRI Reporting
This is the company’s 10th Sustainable Chapter 3.2, we conducted a detailed Development report which is a review Materiality assessment including the of its sustainability performance in prioritization of key stakeholders in line the financial year 2016 (January to with GRI G4 reporting guidelines; this December) (GRI 102-50,52). Since 2007 exercise commenced towards the end of we have published the report annually the year 2015 and continued into early with the most recent being the one 2016; hence we have taken the results reviewing the year 2015 (GRI 102-51). of that exercise to also apply in 2016. A This report is compiled on the basis of detailed account of this process and its GRI standards of the Global Reporting findings are presented in chapter 3.2 Initiative (GRI) and is in accordance with together with the materiality matrix the “Comprehensive” option. thus developed. (GRI 102-48 & 49)
The company’s The company’s sustainability This report was prepared in close performance refers to all of its operations observance of the GRI principles. The sustainability namely, limestone mines, cement plants primary audience of this report is performance refers to and ready mixed concrete plants and all our stakeholders and their interests their related processes, excluding office and concerns are reflected through all of its operations buildings. We have excluded five of the materiality matrix detailed out in namely, limestone company’s subsidiary companies from chapter 3.2. Furthermore, local and the ambit of this report, which together global scenario was also considered mines, cement plants have no significant bearing on overall when shaping the content of this and ready mixed operations. These are Bulk Cement report. Every chapter and indicator is concrete plants and all Corporation (India) Limited, ACC Mineral connected to broader aspects of social, Resources Limited, Lucky Minmat economic and environmental so that their related processes. Limited, National Limestone Company any reader is able to get an insight about Private Limited and Singhania Minerals the contribution towards sustainability Private Limited. (GRI 102-45) issues. Finally, this report seeks to be as comprehensive as possible, providing We have three associate companies, historic data when necessary and Alcon Cement Company Private Limited, including all material topics prioritized in Aakaash Manufacturing Company our materiality analysis. The boundaries Private Limited and Asian Concretes and for our material topics were indicated Cements Private Limited. OneIndia BSC based on an assessment of the positive Private Limited, a joint venture company or negative impacts on stakeholder with equal participation of Ambuja groups and their influence or proximity Cements Limited, provides back office to the organization. (GRI 102-46) services to ACC and Ambuja Cements in respect of their routine transactional A core in-house team comprising processes. These entities are also members of the company’s Environment excluded from the scope of this Report. & Energy Conservation Cell (EECC) and Corporate Communications Department This report does not contain any (CCD) conceived, developed and drafted restatements of information given in this report without engaging any external previous reports. Unlike in the previous consultant or advisory service provider. All year, this report follows GRI standards but information, inputs and data presented not GRI Guidelines. While both reports in this report were collated and compiled have similar introductory chapters, the by the core team while CCD undertook format adopted here follows a standard developing, editing and production of sequence with the aspect chapters the finished report. Wherever possible, arranged in the three categories of the company’s Annual Report for 2016 Economic, Environmental and Societal was used as a valuable and ready & Other Aspects. As explained in resource. Images, tables and charts are
38 Sustainable Development Report 2016 obtained from internal sources wherever assurance further helps to enhance they were readily available. As before, accountability. the report is designed by WyattPrism Communications. External assurance of the Report is provided by an independent agency M/s It is pertinent to note that the Emergent Ventures India (EVI) as per AA company’s financial reporting has been 1000 & ISAE 3000 assurance standard severally recognized for excellence in and their Assurance Statement is a presentation, disclosures and conformity part of this report. The company has no with statutory requirements. This other relationship with the assurance report has been prepared to uphold provider which is retained on the basis this tradition of providing information of the company’s standard procurement to stakeholders that is reader-friendly, practices for selecting vendors based on reliable, transparent and of value to the commercial and technical evaluation. shareholder. The assurance is itself conducted in a structured manner involving interactions Even though sustainability with a cross-section of functional communication and reporting in the executives. country is still somewhat voluntary in nature, the company’s top management The complete GRI Content Index is has felt it necessary to incorporate attached as Annexure 8.3 at the end of external assurance in the process with the report the intent to ensure that the information we report is credible, transparent, Any queries about this Report or about reliable and of value to stakeholders. The the company’s sustainability agenda aim of Sustainability reporting is to build may be sent by email to corporate. a strong chain of accountability within [email protected] the organization. Securing external
Sustainable Development Report 2016 39 4.2 UN Global Compact Principles
Since 2006, ACC is a signatory to United S. No Principle Chapter Nations Global Compact and thus we make public disclosure on adherence to Human Rights UNGC principles. The table below lists the Businesses should support and respect the protection of ten principles of the UNGC and indicates 1 7.3 Human Rights the relevant chapter of this report where Internationally proclaimed human the organization’s activity with respect rights; and Make sure that they are not complicit to each principle is addressed. To that 2 7.3 Human Rights extent, this table and the report also in human rights abuses serve as a Communication on Progress Labour (COP) required to be disclosed by Business should uphold the freedom signatories of the UNGC. of association and the effective 3 recognition of the right to collective bargaining; The elimination of all forms of forced 4 and compulsory labour; 7.3 Human Rights 7.2 People & Employment The effective abolition of child 5 labour; and The elimination of discrimination 6 in respect of employment and occupation Environment
Businesses should support a 3.3 Business Risks & 7 precautionary approach to Opportunities environmental challenges; 6.1 Emissions Undertake initiatives to promote 6.2 Energy 8 greater environmental responsibility; 6.3 Geocycle and 6.4 Raw Materials Encourage the development and 6.5 Water 9 diffusion of environmentally friendly 6.6 Biodiversity technologies 6.7 Waste & Effluents Anti-Corruption Businesses should work against 2.5 Compliances and 10 corruption in all its forms, including other aspects extortion and bribery
40 Sustainable Development Report 2016 4.3 CSI – Dashboard 2016
As active members of the Cement Sustainability Initiative, we report on our sustainability performance in terms of key parameters in a standard CSI format on an annual basis.
Emission Reduction Units 2016 2015 2014 gm / Tonne of Clinker 1966.91 1544.79 1663.91 1 NOX Tonnes 29880.65 23883.5 25304.29 gm / Tonne of Clinker 128.74 175.66 196.71 2 SO2 Tonnes 1955.72 2714.92 2991.49 gm / Tonne of Clinker 41.50 36.58 41.66 3 Dust Tonnes 630.52 565.53 633.59 Coverage rate continuous measurement: (%) 4 clinker produced with continuous monitoring % 91.54 97.8 97.72 of main pollutants Dust, NOX, SOX Employee Health and Safety Units 2016 2015 2014 5 Number of fatalities (directly employed) Number 0 0 1 Number of fatalities per 10,000 (directly 6 Number 0 0 0.049 employed) Number of Lost Time Injuries (directly 7 Number 16 19 11 employed) 8 Total number of Lost Time Injuries Number 47 63 9 Lost Time Injuries (LTIs) per million man-hours Number 0.9 1.0 0.5
CO2 and Climate Protection Units 2016 2015 2014
10 Total CO2 Emissions - Gross Tonnes 12737840 12978374 12801547
11 Total CO2 Emissions - Net Tonnes 12628887 12885699 12744801 Specific CO Emissions - gross (kg/ ton 12 2 kg/ t cem. Mat 551 556 543 cementitious material) Specific CO Emissions - net (kg/ ton 13 2 kg/ t cem. Mat 547 552 541 cementitious material) Local Impacts Units 2016 2015 2014 14 % of sites with Quarry Rehabilitation Plan % 100% 100% 100% 15 % of sites with Community Engagement Plan % 100% 100% 100% Number of Active Sites where Biodiversity 16 Number 11 11 11 issues are addressed Number of Active Sites within, containing or 17 adjacent to areas designated for their high Number Nil Nil Nil biodiversity areas Water Units 2016 2015 2014 Surface Water (Mio M3) 5.44 5.37 6.15 Harvested Rainwater (Mio M3) 6.86 8.01 8.46 18 Total water withdrawal by source Municipal Water (Mio M3) 0.07 0.07 0.043 Ground Water (Mio M3) 1.99 1.23 1.16 19 Total water withdrawal consumption Mio M3 14.38 14.69 15.813 20 Percentage of sites with water recycling % 88.24 88.24 82.35
Sustainable Development Report 2016 41 5.0
42 Sustainable Development Report 2016 Economic
5.1 Economic Performance
5.2 Marketing Communications
5.3 Procurement Practices
Sustainable Development Report 2016 43 5.1 Economic Performance
Despite 2016 being a challenging year, Financial highlights appear in pages 13-18 of Annual Report 2016 at http://www. the company was able to register higher acclimited.com/newsite/annual-report-2016/Financial-Highlights.pdf profit before tax up at Rs 809 crores as Table 5.1.1 compared to Rs 784 crores in the previous year. The highlight of the year was strong Profitability (Rs. Crores) cost saving measures, driven by fuel flexibility and raw material optimization; 12000 as a result operating cost per tonne were lower by 1%. Consolidated income, comprising Revenue from Operations 8000 (Net) and other income, for the year was Rs 11,274.75 crore, 5.39% lower as 4000 compared to Rs 11,916.94 crore in 2015. More performance highlights are shared 0 in graphs and tables in this chapter. (GRI 2014 2015 2016 201-4 ) Net Sales Operating EBITDA Profit Before Tax Profit After Tax Net Cash Generated From Operations Consolidated Financial Statements comprise the financial statements of ACC, its subsidiaries, associates and joint Table 5.1.2 venture. (GRI 102-45)
Maintaining a tradition of financial Balance Sheet (Rs. Crores) excellence, the Company’s Annual Report 10000 2015 won the highest award distributed last year for excellence in Financial 7500 Reporting from the Institute of Chartered Accountants in India. The Report was 5000 also adjudged Second Runner-Up (Joint) in the Manufacturing Sector as recipient 2500 of the Best Presented Annual Report Awards 2015 by South Asian Federation 0 2014 2015 2016 of Accountants (SAFA). Net Worth Net Fixed Assets Financial assistance In 2016, the company received total financial incentives and subsidies Table 5.1.3 amounting to Rs 65.89 crores against Rs 214.54 crores in 2015 and Rs 96.92 Segment-wise sales and volumes crores in 2014 (refer pages 179 of the 30 12000 company’s Annual Report 2016 at http:// www.acclimited.com/newsite/annual- report-2016/Notices-to-Financial- 20 8000 Statements.pdf). (GRI 201-4) (%)
10 Rs. Crores 4000 Million Tonnes
0 0 2014 2015 2016 Net Sales (Rs. Crores) Cement Sales Volume (Million Tonnes) Ready Mixed Concrete Sales Volume (Lakh Cubic Metres Cement Production (Million Tonnes) Ready Mixed Growth (%) Utilization Cement Sales Growth (%)
44 Sustainable Development Report 2016 Table 5.1.4
Key Ratios
20 1600 Times | Percentage (%)
15 1200
10 800 Rs. Crores
Percentage (%) 5 400
0 0 2014 2015 2016 Maintaining a tradition
Operating (EBITDA (Cement) OP. EBITDA (RMX) of financial excellence, OP. EBITDA Margin (Cement) OP. EBITDA Margin (RMX) the Company’s Annual Report 2015 won Table 5.1.5 the highest award distributed last year for Others excellence in Financial 40 32000 Reporting from the 30 24000 Institute of Chartered Nos. 20 16000 Accountants in India. Rs. Crores
Percentage (%) 10 8000
0 0 2014 2015 2016 Contribution to Exchequer Corporate Social Responsibility Expenditure Market Capitalization at Year End
Table 5.1.6
Cost & Profit as a Percentage of Revenue from Operations 2016 2015
Other income Profit before Exceptional Other income Profit before Exceptional ` (112) Crore (-1%) item and tax ` (119) Crore (-1%) item and tax ` 852 Crore (8%) ` 937 Crore (8%) Finance costs Finance costs Cost of materials Cost of materials ` 73 Crore (1%) ` 67 Crore (1%) consumed consumed ` 1,587 Crore (14%) ` 1,740 Crore (15%) Depreciation Power & fuel Depreciation Power & fuel ` 605 Crore (5%) ` 2,157 Crore (19%) ` 652 Crore (5%) ` 2,394 Crore (20%)
Employee Cost Employee Cost ` 778 Crore (7%) ` 770 Crore (7%) Manufacturing and Manufacturing and other costs Frieght and Forwarding other costs Frieght and Forwarding ` 2,563 Crore (23%) expense ` 2,633 Crore (22%) expense ` 2,655 Crore (24%) ` 2,723 Crore (23%)
Sustainable Development Report 2016 45 5.1 Economic Performance
Statement of Direct Economic Value Generated and Distributed appears on page 18 of Annual Report 2016 at http://www.acclimited. com/newsite/annual-report-2016/Financial-Highlights.pdf
Value Added Statement Parameters 2016 ` Crore 2015 ` Crore 2014 ` Crore 2013 ` Crore 2012 ` Crore Equity 8,661 8,443 8,236 7,825 7,383 Long-term Debts 35 163 Capital employed 8,661 8,443 8,236 7,860 7,546 Average Capital Employed 8,552 8,339 8,048 7,703 7,625 Value added Net operating profit after taxes* 645 692 1,168 1,096 1,288 Add: interest on Long-term borrowings, after tax - - 1 4 31 Net operating profit after taxes (NOPAT) 645 692 1,169 1,100 1,319 Cost of Capital 963 1,074 1,038 1,017 919 Value added (318) (382) 131 83 400 NOPAT / Average Capital employed (%) 7.54 8.30 14.53 14.28 17.30 Weighted Average Cost of Capital (%) 11.26 12.88 12.90 13.20 12.05 Value added / Average Capital Employed (%) (3.72) (4.58) 1.63 1.08 5.25 Enterprise Value Market Capitalisation 24,995 25,546 26,287 20,806 26,836 (As at December, 31) Add: Long-term Debts - - - 35 163 Less: Cash and Cash Equivalents 1,944 1,389 1,686 2,621 3,137 EV (Enterprise Value) 23,051 24,157 24,601 18,220 23,862 EV / Year end Capital Employed (Times) 2.66 2.86 2.99 2.32 3.16 EV / Year end Capital Employed (Times) 2.66 2.86 2.99 2.32 3.16 *Net Operating profit is excluding exceptional item and tax impact on the same.
Statement of Direct Economic Value Generated and Distributed Parameters 2016 ` Crore 2015 ` Crore WEALTH GENERATED Gross Income* 14,453 15,026 Operating costs (8,568) (9,099) 5,885 5,927 WEALTH DISTRIBUTION Employees as remuneration including retirement benefits 778 770 Contribution to Government as taxes and other levies 4,008 3,913 Shareholders as dividend 319 319 Community investments 22 31 Finance Costs 73 67 Retained with the Business 685 827
46 Sustainable Development Report 2016 5.2 Marketing Communications
ACC holds a unique position in the cement prime customer segment which makes a industry with an all India presence. valuable contribution not only through The company’s operations are spread its sizeable share of sales volume but throughout the country with 17 cement also in according high brand equity to plants, four regional sales offices, 21 the company and its products. Most sales sales units, a large number of area offices made through trade channels is bagged and 50 Ready Mixed Concrete plants. cement, 50 kilogrammes to a bag. These are supported by an extensive network of channel partners made up The remaining share of sales comes ACC has always been of about 10,000 authorized dealers. from direct buyers in the private and “a people’s brand” This network ensures availability of ACC government sectors. For large projects considering that cement across India through a chain of and more sophisticated constructions, more than 50,000 retail sales outlets. the company has constituted a specially more than 80% of designated sales team - the Industrial, cement sales comes ACC has always been “a people’s brand” Infrastructure and Commercial (ICI) considering that more than 80% of department. This team represents the from individual home cement sales comes from individual Business-to-Business segment of the builders and small retail home builders and small retail buyers. company. The team also services Key Our sales force works closely with the customers who comprise other large buyers. dealer and retailer network to reach out users and those that consume cement as to customers in almost every state of a raw material. India. The Individual Home Builder is our
Sustainable Development Report 2016 47 5.2 Marketing Communications
ACC provides excellent customer service. All our products are manufactured our products through live examples Our Regional Offices and Sales Units and sold in accordance with statutory and to disseminate customer-focused have Customer Services Cells manned quality standards. None of the cement information on topics of relevance to by qualified Civil Engineers who interact or concrete products manufactured and the customer. with customers to assess their needs and sold by us is banned or restricted in any • To network with various professionals problems, offer advice before and after way. and Influencer groups who can serve sales, including educating users and as informal brand ambassadors. customers on correct usage of cement Market Communication and concrete and good construction We reach out to customers through ACC was a founder member of the practices. promotion campaigns as well as through Association of Business Communicators social media to create continuous of India (ABCI), the country’s premier ACC pioneered the commercial sale of visibility. Marketing communication is body in this field. We participate in ABCI’s Bulk Cement and Ready Mixed Concrete aimed at: annual awards under various categories (RMX). Bulk Cement is well accepted by each year and have consistently been leading construction companies and is Personal selling recognized for excellence in different a unique initiative for promoting the Promotion categories at different levels. In 2016 we sale of cement in bulk as against the received the following recognitions from normal ‘bagged’ cement. The demand Direct marketing ABCI: for these products is mainly in large Advertising – outdoor, pop, print and urban clusters and infrastructure electronic Gold awards development projects. These two value added products have together Digital, Interactive multi-media and “ACC Community Counts” – a underscored ACC’s unique breakthroughs Social media collection of case studies in the cement industry. PR & publicity “ACC Logistics Safety Excellence” programme RMX is supplied through a fleet of All these activities are in compliance with transit mixers in a large number of cities relevant regulations and laws. We track in India. It is purely service oriented our brand equity regularly to get insights Silver awards with on-time delivery being the key to help us assess how we are perceived “Together for Communities” – to success. ACC Concrete had 50 RMX and identify areas of improvement. CSR Newsletter plants as at the end of 2016. In the last few years, ACC’s Concrete business has Marketing Communication “ACC Sustainable Development shown a remarkable transformation. Strategies Report 2015” Through consistent efforts, this Marketing communication highlights ACC Parivar (Hindi) edition and business developed a range of customer- five strategies: oriented value-added products and Bronze to “ACC Sustainable To communicate ACC as a trusted building solutions, enhancing quality Development Report 2014” brand in the marketplace – by making and successfully widening its customer customers aware of the company’s base. The concrete product range now profile and track record and to includes a wide range of one-stop In 2016, there were no incidents of inspire trust among them. This is solutions and value added products, non-compliance with regulations and achieved by presenting the company’s all tailored to meet specific customer voluntary codes concerning marketing market standing, heritage and major requirements from small basic communications, including advertising, milestones. requirements up to higher grades of promotion, and sponsorship. concrete to build the country’s tallest To present a complete profile and and largest structures. The Ready Mixed description of our products. Concrete team manages most of its sales To emphasize the superior status directly to buyers and end-users. This of our products as compared to team has also sought to make forays conventional products highlighting into the retail segment by leveraging the their special qualities and benefits to company’s vast and competent cement the end user. sales network. To demonstrate the special values of
48 Sustainable Development Report 2016 5.3 Procurement Practices
Procurement involves the complete procured directly from steel plants and process pertaining to sourcing, vendor thermal power stations. The company selection and evaluation, purchase meets most of its energy requirements of goods & services and negotiation from its captive power plants. Cement of contracts. The supply chain and machinery is large and complex and is procurement process is viewed as purchased directly from manufacturers. a strategic function which plays an Wherever possible, the company prefers influential role in the organization’s to purchase materials, stores and profitability. Procurement is seen equipment directly from manufacturers All our Purchase Orders/ as helping to streamline processes, or from licensed sellers. reduce raw material prices and costs, Agreements have and identifying better sources of ACC has a vast network of cement plants clauses pertaining supply. It is an important part of the and Sales Units across the country in organization’s value chain and accounts various States Handling procurement to Corporate Social for a major share of its operating cost. and supply chain activities involves large Responsibility (CSR), Thus, it is critical to ensure efficiency multi-disciplined group of personnel. To Human Rights and and transparency in our operations.. take care of the essential requirements Our supply chain operations involve of our large network, we have Local Occupational key internal and external stakeholders. Procurement Teams at the Units for Health and Safety (GRI 102-9) routine local purchases. There is an Integrated Procurement Organization (OH&S). Limestone, the primary raw material at our Head Office which takes care of for cement, is sourced through the Major high value Purchases of various company’s captive limestone mines. Coal Commodities such as Coal, Raw Materials is the principal fuel and is purchased - Gypsum, Iron Ore, Bauxite, Steel, Major directly from domestic coal companies Services for the Units, Capex Items and or imported. Other major raw materials Spares for related Capex items, Major include slag and fly ash which are Contracts for Projects, Vendor Master
Sustainable Development Report 2016 49 5.3 Procurement Practices
Data etc. Requirement for such items is standards. All our Purchase Orders/ requirements. In instances where sent by Individual Units to the CPO and Agreements have clauses pertaining suppliers are not able to meet these after combining the requirement of all to Corporate Social Responsibility minimum requirements, we engage Units, the purchases are done centrally (CSR), Human Rights and Occupational in a dialogue with them and look for to avail volume discounts and better Health and Safety (OH&S). We mechanisms to help improve our negotiations. encourage our suppliers to take up suppliers’ standards. In the event of “Self-Assessment” based on a checklist persistent non-compliance or obvious In 2010 ACC, then part of the Holcim integrating SA8000, environmental violation, we take a decision to terminate group, had launched its Sustainable management and legal compliance these relationships. (GRI 204-1) Procurement Initiative (SPI) with the ultimate goal of partnering with suppliers Table 5.3.1 to deliver value-for-cost procurement for the Group and our customers, and to The Supplier Code of Conduct lists nine standards: demonstrate responsible supply chain management. Since 2011, we have been working towards the implementation of Occupational Health and Non-Discrimination Safety (OH&S) SPI through the Supplier Code of Conduct Environmental Regulatory which is meant to provide a clear Working Conditions Compliance summary of ACC’s expectation from Freedom of Association and Management of Environmental suppliers in all procurement dealings. This Non-retaliation Impacts Supplier Code of Conduct, recommended by UN Global Compact principles, is Forced Labour Bribery and Corruption communicated to all suppliers and Child Labour is also uploaded on the company’s website at http://www.acclimited.com/ procurement. Following the creation of LafargeHolcim, the Sustainable Table 5.3.2 Procurement Initiative (SPI) framework Nos. engaged Amount spent in was revised and re-launched in October (INR Crores) 2016. By making it cross functional, we ensured active collaboration of many Total no. of suppliers 10796 9100 functions in the implementation process. Indian suppliers (Local) 10704 8849 We also conducted knowledge sharing sessions at Clusters and Unit levels. The International suppliers 92 251 re-launch of SPI will help to achieve the target of having assessed 80% of high- risk suppliers by 2020.
We encourage our suppliers to work towards continuous improvement and adopt best practices. We expect them to adhere to our Suppliers Code of Conduct which includes principles of compliance, human rights, ethics & business conduct and environmental stewardship. We strictly insist on transparency and accountability to be adhered to in all procurement activities.
The corporate and plant procurement teams assess and contract suppliers whose practices comply with the criteria of SA8000 and ISO 14000
50 Sustainable Development Report 2016 Suppliers and Vendors supply material of desired quality Our vendor base comprises more than and on time. We prefer vendors 10,000 suppliers spread across the who demonstrate good corporate country including reputed manufacturers citizenship and promote sustainable and trusted brand names, usually development. Vendors are selected from among the leading 3-4 vendors to meet the requirements of our of their particular industry segment specifications and are expected to make who are technically and financially timely deliveries of the required material. sound and have the intrinsic capacity to (GRI 102-9)
Table 5.3.3
The typical steps involved in supplier selection are as follows:
Communication of Supplier Risk Risk Scorecard the Supplier Code prioritization assessment mitigation of Conduct Communication Identification of Continuous Supplier Communication of company’s potential high-risk evaluation of risk development of company’s expectations suppliers based exposure through or replacement, expectations and terms of on Operating self-assessment, as determined and terms of engagement Companies’ fact finding or by Operating engagement to existing and judgment of local verification Companies to existing and potential suppliers conditions potential suppliers
We treat our vendors as business place through phone, virtual conferences, including human rights aspects and associates, extending them respect e-mail or in person as and when required. ethical requirements. With its signature and dignity. Adequate care is taken to The key concerns identified relate to or order confirmation, the supplier ensure transparency in procurement quality, quantity and payments. We accepts and agrees to adhere to these processes. Our procurement policy has have a Supplier Relationship Helpdesk requirements. In the reporting period a clearly defined code of practice for which takes up these matters with the under review, more than 5% of critical procurement conduct and encourages concerned unit to be resolved as soon as suppliers (through high risk-high spend) fair and open competition in markets. possible. were screened using environmental Suppliers are subjected to a qualification criteria and social criteria. (GRI 308-1, process that also seeks to identify Supplier Environmental and 414-1) information such as social risks including Social Assessment Safety, Occupational Health, Child All agreements with Suppliers, In 2016 no new suppliers were screened labour, Forced Labour and Freedom of such as purchase orders, purchase using Environment criteria; no supplier Association. agreements, service agreements and was identified to have significant actual frame agreements have to refer to the and potential negative environmental or We engage with suppliers to build Supplier’s compliance with SA8000, social impacts. (GRI 308-2, 414-2) synergy and long term relationships. environmental management and legal Regular interaction with vendors takes compliance requirements, social clauses
Sustainable Development Report 2016 51 6.0
52 Sustainable Development Report 2016 Environmental
6.1 Emissions
6.2 Energy
6.3 Geocycle
6.4 Raw Materials
6.5 Water
6.6 Biodiversity
6.7 Waste & Effluents
Sustainable Development Report 2016 53 6.1 Emissions
In 2016, the Company’s carbon footprint continues to be among the industry’s best-in- class where its specific ACC is an active member of the Indian Emission Reduction Targets CO2 emissions at 545 chapter of Cement Sustainability In line with the Group’s SD target, ACC Initiative (CSI) - a global group of 24 kg/t of cement (Scope plans to reduce its net specific 2CO major cement producers set up under the emissions per tonne of cement by 40% 1) was 32% lesser World Business Council for Sustainable as compared to the levels achieved in than 1990 level but in Development for the pursuit of issues 1990. This is the base year used for target comparison to 2015, it concerning sustainable development setting of specific emissions reduction in the cement sector. The Low Carbon by the company as well as the Cement was 2% higher. Technology Roadmap for the Indian Sustainability Initiative (CSI). In 2016, the Cement Industry is a voluntary and time- Company’s carbon footprint continues bound commitment drawn up by CSI to be among the industry’s best-in-class
member companies with time bound where its specific CO2 emissions at 545 targets for reduction of carbon emissions kg/t of cement (Scope 1) was 32% lesser leading to the year 2050. This Roadmap than 1990 level but in comparison to identifies key levers for reduction in CO2 2015, it was 2 % higher. This increase emissions that include inter alia clinker is mainly due to prevailing market substitution, the use of alternative fuel conditions for increased demand for OPC and resources; thermal and electrical and lower capacity utilization. (GRI 305- energy efficiency among others. We have 1,2,3) made strides in each of these.
Table 6.1.1
CO2 Emissions (Tonnes) 2016 2015 2014 Scope-1* 14856102 15098332 14705732
Scope-2** 544035 462359 622877
Scope-3*** 539067 684642 556035
*Includes CO2 emissions from captive power plant and calculated using WBCSD CO2 protocol
**Calculated by using CM Emission factor – CO2 Baseline Database for the Indian Power Sector - V11 – Apr 2016 by Central Electricity Authority ***Calculated based on assumptions & approximation used to club vehicles to the distance brackets. Categories of Employee commute, transportation of heavy machineries installed in different plants, and courier emissions have not been considered
54 Sustainable Development Report 2016 Reducing the clinker factor blended cements, we expect to enhance The Cement manufacturing process The production of blended cements the overall share of blended cements and does not release any Ozone depleting lowers the requirement of clinker as some thus lower clinker factor leading to lower substances (ODS) substance into the part of clinker is replaced with fly ash or specific CO2 emissions. environment. (GRI 305-6). slag at the final grinding stage. Simply put, lower clinker consumption means Alternative Fuels & Resources (AFR) The use of bio-mass and agricultural less limestone is required to be mined, The use of AFR essentially serves to move wastes also emits CO2 which is not crushed, ground and burnt in cement away from dependence on fossil-based accounted by protocol in the Scope 1 kilns which together directly result in fuels and other mineral resources. In emissions shown in Table 6.1.1. Biogenic CO2 emissions thus generated were lower CO2 emissions. During the year, 2016, the company succeeded in co- ACC utilized 3.90 million tonnes of fly ash, processing 3,79,520 tonnes of alternative 51,009 tonnes. (GRI 305-1) 2.67 million tonnes of slag, 1.10 million fuels and resources, achieving a thermal tonnes of crushed rock fines, providing substitution rate of 3.22 %. Following sustainable environment friendly the commissioning and stabilization of services to the nation. This contributed two pre-processing platforms and a third to reduction of limestone consumption under execution, we expect our Thermal and associated CO2 emissions. In 2016 Substitution Rate (TSR) percentage to we experienced higher demand for increase in the long run, thus enabling Ordinary Portland Cement from some of the company to cut its carbon footprint our markets. As a result we registered a even further. marginal decrease in the share of blended cements in the total product portfolio Improving energy efficiency to 83.5% leading to a corresponding In 2016, various energy efficiency/ increase in our CO2 footprint. Despite conservation initiatives were undertaken this our share of blended cements and by ACC (as explained in the section on overall specific emissions remained well Energy) which enabled lower energy above industry average. With the newly consumption and subsequently commissioned Jamul Integrated project contributed to reduce our CO2 footprint and its grinding units in Jamul and Sindri on account of thermal and electrical which will principally manufacture savings.
Table 6.1.2
Overall CO2 Reductions Achieved 2016 2015 2014 (Scope 1 & 2) On Account of Thermal Savings1 2451 6847 23359 (Tonnes of CO2)
On Account of Electrical Savings2 Nil Nil 2680 (Tonnes of CO2)
On Account of Clinker Factor 3 Nil Nil Nil Improvement (Tonnes of CO2)
Note: 1) CO2 emission reductions on account of thermal energy is calculated value .
2) CM Emission Factor (CO2 Baseline Database for the Indian Power Sector – V 11 – Apr 2016 – by Central Electricity Authority) was used for calculating the CO2 emissions on account of electrical savings.
3) CO2 emission reductions on account of clinker factor improvement is calculated by using the thumb rule that for 1% improvement in clinker factor there is reduction of 7.5 Kg CO2 / Tonne of Cement (GRI 302-4)
Sustainable Development Report 2016 55 6.1 Emissions
Emissions from Ready Mixed Concrete Logistics & Transport Since the production of concrete essentially comprises blending operations, the Emissions are also generated in incidence of carbon emissions is relatively low. Most of the CO2 emissions generated in logistics and transportation operations the RMX activity arises in transportation. which include primarily CO2 emissions emanating from fuel consumption. Table 6.1.3 This gets addressed by ensuring regular maintenance of vehicles. Second critical CO2 Emissions (Tonnes) 2016 2015 2014 emission is dust pollution caused by Scope-1* 3015 1796 2468 trucks plying on roads. These vehicles tend to stir up ambient dust on and Scope-2** 6772 3836 2888 around the roads. At our end, we make Scope-3*** 41607 39275 26078 sure that cement trucks are de-dusted and covered in tarpaulins before they *Includes CO2 emissions from DG sets and calculated using WBCSD CO2 protocol leave cement plants in order to minimize **Calculated by using CM Emission factor – CO2 Baseline Database for the Indian Power Sector - V11 – Apr 2016 by Central Electricity Authority dust pollution. We also promote Bulk ***Calculated based on assumptions & approximation used to club vehicles to the distance brackets. Categories of transport of cement which is not only Employee commute, transportation of heavy machineries installed in different plants, courier emissions have not been considered cost-effective but also environment- friendly. Similarly rail movement is preferred for long distances as a more In 2016, ACC featured among the leading implementation of NO emission X sustainable mode. Ready Mixed Concrete Indian Business Houses that have reduction by primary measures that is transported in transit mixers is participated in the Carbon Disclosure (Process optimization, usage of AFR, proven to be a value-added option that is Project (CDP) and ranked high in terms of Fuel split, meal spilt etc) at all plants also particularly a green option. (Logistics its disclosure forming part of the Carbon and secondary measures at few plants and transport) Disclosure Project Index. (SNCR). Complying with the reporting mandate, online reporting of emissions In 2016, there was zero non compliances Controlling Emissions -- Dust, SO2 and effluents for all the plants is done with environmental laws and/or and NOx on Central Pollution Control Board regulations, however we paid fine of As regulatory frameworks for emissions (CPCB) website and with respective Rs. 50 Lakhs towards an earlier non are undergoing huge reform, Indian State Pollution Control Boards wherever compliance case which was reported in cement companies are facing challenges servers are available. (GRI 305-7) 2015. (GRI 307-1) to comply with stringent regulations and emission standards for various Table 6.1.4 types of emissions including SOX, NOX Emissions* Unit 2016 2015 2014 and dust emissions. Towards this end, ACC endeavors not only to meet these NOx gm / Tonne of Clinker 1966.91 1544.79 1663.91 new standards but also strive to improve gm / Tonne of Cement 1289.25 1001.80 1044.05 its performance beyond compliance. Accordingly, various measures are being Tonnes 29880.65 23883.50 25304.29 implemented across all operations of SO2 gm / Tonne of Clinker 128.74 175.60 196.71 the Company to control stack emissions by upgradation/modification of existing gm / Tonne of Cement 84.38 113.88 123.43 air pollution control equipments or Tonnes 1955.72 2714.92 2991.49 installation of air pollution control equipment. To ensure compliance for Dust gm / Tonne of Clinker 41.50 36.58 41.66 fugitive emissions, the company has gm / Tonne of Cement 27.24 23.72 26.14 already installed dust extraction and dust suppression systems. During the Tonnes 630.52 565.53 633.59 year 2016, ACC had commissioned * The emissions reported are based on Kiln stacks only Hybrid Electrostatic Precipitators (ESP) at Jamul and upgraded Coal Mill Cement manufacture does not generate any significant levels of Persistent organic Bag House and Cooler ESPs at Gagal. pollutants (POP), Volatile organic compounds (VOC) or Hazardous air pollutants (HAP). The Company has also initiated the (GRI 305-7)
56 Sustainable Development Report 2016 6.2 Energy
Cement production is an energy Table 6.2.1. In 2016, specific electrical intensive process where energy energy at 88.66 (kWh/ Tonne of Cement) constitutes around 40% of the total cost was almost 5% higher than 2015 for the of production. In 2016, specific energy reasons mentioned above. However the consumption was significantly impacted impact of associated increase in electrical by a lower share of blended cements, energy cost was reduced by increased reduced capacity utilization and use of consumption of Open Access power Petcoke and associated trials or plant by strategic bidding and scheduling interruptions. A snapshot of internal operations of main drives accordingly. energy consumption is explained in (GRI 302-1,2,3,4).
Sustainable Development Report 2016 57 6.2 Energy
Table 6.2.1 Open Access power was increased from Energy Consumption Unit 2016 2015 2014 65% to 93.5% at Thondebhavi; from 59% to 84% at Kudithini. At Gagal, Open Coal + Petcoke consumption TJ 45927 45,767 45,466 Access power started during the later in Kiln part of 2015 and was ramped up to ~ Diesel Oil consumption in Kiln TJ 70 41 55 25% in 2016. This resulted in total saving Alternative Fossil fuels* TJ 1241 1,068 634 of Rs. 19 crores in the cost of power. consumed in Kiln Alternative Bio-mass We are exploring other avenues to TJ 304 283 216 consumed in Kiln reduce the cash outflow for purchase Diesel Oil consumption for of RECs against Renewable Power TJ 570 460 434 Onsite vehicle movement Obligation. Scheduling and maximizing Fuels for drying of raw green power from the captive wind TJ 1181 1,266 1,288 materials power generation sources contributed Coal for onsite power considerably on this front. Currently the TJ 23136 22,888 20,342 generation company’s renewable energy portfolio Diesel Oil consumption for consists of 19 MW in the form of wind TJ 8 15 15 Onsite power generation farms across three States - namely Tamil Alternative fossil fuels for on Nadu, Rajasthan and Maharashtra - TJ 98 148 334 site power generation which together generated 36.51 million units. Additional green power of 1.67 Biomass for Onsite Power TJ 151 17 116 generation# million units was procured through Power Purchase Agreement adding up to Specific power consumption KWH / Tonne total Green Energy consumption of 38.18 upto and including clinker 73.06 70.01 70.69 of Clinker production million units, representing an increase of 9% over the previous year. KWH / Specific power consumption Tonne of upto and including cement 84.62 81.56 81.45 Cementitious grinding Material KWH / Specific power consumption Tonne of including cement grinding, 87.04 83.85 83.70 Cementitious colony, auxiliaries Material Specific thermal energy GJ / Tonne of 3.12 3.05 3.05 consumption Clinker MWH / Electricity Energy Purchased 566,703 481,624 637,696 Annum Energy consumption outside TJ 7275 9209 7504 the organization**
* As per WBCSD protocol, alternative fossil fuel comprises of waste oil, waste tyres, plastics, solvents, impregnated saw dust etc ** Considered diesel as fuel consumed in transportation and calculated from Scope 3 emissions.
58 Sustainable Development Report 2016 In 2016, we invested approximately Rs. 112 million on major CAPEX projects for energy Some of our plants conservation, besides continual process of identification and implementation of low cost capex / opex measures. have been appreciated for their achievements Various energy conservation and efficiency measures, as described in Table 6.2.3 were undertaken in different areas of the cement manufacturing process and Captive Power in energy efficiency Plants (CPPs) (GRI 302-4) and conservation. ACC
Table 6.2.2 Chanda was adjudged Wind Power Generated as one of the Excellent 2016 2015 2014 (in Million kWh) Energy Efficient units Tamil Nadu 19.92 13.22 17.70 by Confederation of Rajasthan 12.46 12.78 11.53 Indian Industries (CII),
Maharashtra 4.12 3.17 3.26 supported by BEE.
Sustainable Development Report 2016 59 6.2 Energy
Table 6.2.3
Plant Initiatives Conventional burner was replaced by Duoflex burner in Kiln, besides introduction of variable speed Lakheri drives for cooler and Crusher Bag House Fan. Computational Fluid Dynamics study was carried out and mitigation measures taken to reduce pressure Chanda drop across coal mill outlet duct. Computational Fluid Dynamics study was carried out for Kiln bag House and mitigation measures taken Kymore to improve flow distribution and reduce pressure drop across the agb house Installed medium Voltage Variable Speed Drive for Preheater fan Replaced Kiln Shell for improvement of thermal energy consumption Installed energy efficient Turbo Blowers in both Kiln burners besides replacing the kiln burner with Pyro- Gagal jet burner; VRM throughput was increased from 280 to 330 TPH by reduction of feed size and accordingly modifying the mill internals; Replaced Pre-heater fan with Energy Efficient fan; Pressure drop across Raw Mill VRM of Gagal 2 and Preheater Cyclones at Gagal 1 was reduced by taking mitigation action through Computational Fluid Dynamics study; Converted Cement Mill-3 into mono-chamber mill; Replaced reciprocating type compressors with energy efficient screw compressors Installed tertiary Air Dampers for improvement of thermal energy consumption in Kiln 4; modified coal Wadi circuit to increase Coal Handling Plant output from 80 TPH to 130 TPH for its Captive Power Plant. Converted twin Chamber cement mills to mono chamber with change in feeding arrangement of pre- Tikaria grinder output. Thondebhavi High Efficiency Screw compressor was installed to replace existing compressor. Improved Coal Mill Productivity from 7.5 TPH to 12.5 TPH by modifications in liners, thereby improving Bargarh Kiln productivity; Installed new roller in Slag VRM to improve grinding efficiency
Some of our plants have been appreciated for their achievements in energy efficiency The issue of reductions in energy and conservation. ACC Chanda was adjudged as one of the Excellent Energy Efficient requirements of sold products and units by Confederation of Indian Industries (CII), supported by BEE. services is not applicable to cement or concrete. (GRI 302-5). Energy consumption in Ready Mixed Concrete The production of Ready Mixed Concrete (RMX) requires a very small amount of energy for the purpose of mixing and transportation. A snapshot of energy consumption in the last three years is shown in Table 6.2.4. (GRI 302-1,2)
Table 6.2.4 Energy Consumption Unit 2016 2015 2014
Diesel consumption in RMX unit TJ 41 24 33
Electricity Energy Purchased MWH / Annum 7054 3996 2947
Energy consumption outside the TJ 561 530 352 organization*
* Considered diesel as fuel consumed in transportation and calculated from Scope 3 emissions
60 Sustainable Development Report 2016 Sustainable Development Report 2016 61 6.3 Geocycle
We have taken the lead in providing to major waste generating industries and safe waste management solutions to municipalities, we also seek to reduce major waste generating industries and reliance on traditional fuels. organizations. The core objectives of value creation, customer service and ACC has increased co-processing of technical excellence together drive our Refuse Derived Fuel (RDF) and non- initiative towards providing sustainable recyclable Segregated Combustible waste management solutions under the Fraction (SCF) of Municipal Solid Waste brand name, Geocycle. (MSW) in its facilities enabled by large scale investments in research and A key challenge posed on our environment infrastructure development made for the today that is a cause of major concerns safe utilization of these waste streams in about the health and safety of all citizens our cement plants. comes from the enormous volumes of municipal waste being generated in In line with our efforts, we have been our cities and towns. Recognizing this working with State Governments and problem, we are also extending the scope waste management agencies such as of our waste management solutions in Goa on a MSW Landfill Remediation to developing safe and sustainable Project, the first of its kind in India, solutions for the efficient disposal of wherein we received and co-processed municipal wastes. In the course of around 4,800 tonnes of RDF at our Wadi providing waste management solutions plant in 2016.
62 Sustainable Development Report 2016 During the year we redoubled our different types of waste generated in the ACC has increased co- endeavours in stakeholder engagement, country. lobbying, advocacy and capacity building processing of Refuse to achieve greater technical and legal In 2016, ACC has succeeded in co- Derived Fuel (RDF) recognition for co-processing technology processing 3,79,520 tonnes of in line with accepted international alternative fuels and raw materials and non-recyclable standards. These efforts have borne fruit and achieved a thermal substitution Segregated Combustible and in the recent changes to the Indian rate of 3.22% through successful co- Waste Legislation in 2016, co-processing processing of various waste streams Fraction (SCF) of is now recognized as a preferred and other alternative fuels and raw Municipal Solid Waste technology for waste management for materials. (MSW) in its facilities enabled by large scale investments in research and infrastructure development
Sustainable Development Report 2016 63 6.4 Raw Materials
The production of cement is a resource bauxite, laterite and gypsum being intensive process requiring non- sourced externally. Our expertise and renewable raw materials like limestone, experience particularly with the shale, clay, sand, iron ore etc. Limestone mining of limestone is among the being a primary raw material, its best in industry. State-of-the-art availability and quality is of paramount mining equipment is deployed at all importance. ACC is among the largest our mines for mineral extraction and users of limestone in the country. development which is undertaken Each of its cement plants has a strictly in accordance with mining plans State-of-the-art mining captive mine for limestone with and schemes approved by statutory equipment is deployed other raw materials namely, iron ore, authorities. at all our mines for Table 6.4.1 mineral extraction and Raw materials (Million Tonnes) 2016 2015 2014 development which is Limestone 22.41 22.82 20.84 undertaken strictly in Gypsum 0.86 1.14 1.19 accordance with mining Alternative Raw Material 0.33 0.22 0.16 plans and schemes Slag 2.68 2.61 2.84 approved by statutory Fly ash 3.90 4.17 4.40 authorities. Additives 0.016 0.01 0.014
Others (Bauxite, Iron ore etc.,) 0.67 0.79 2.30
Lubricating oil (Tonnes) 489 489 488
Grease (Tonnes) 167 167 201
Weight of bags consumed (Tonnes) 29992 31473 32149
% Recycled materials used 22.38 22.04 23.29 (GRI 301-1,2)
64 Sustainable Development Report 2016 At ACC commitment to conservation Used and abandoned mines are and gravel or crushed stone. Each input of precious mineral resources is rehabilitated following approved norms material is procured separately and demonstrated by using clean mining and transformed into lush forests or mixed in specified proportions to make practices and by minimizing dust useful water bodies. Respect for the concrete. Ready Mixed Concrete, or emissions. Though high grade interests of neighbouring communities RMX as we refer to it, is concrete that is limestone is often preferred for cement and protecting bio-diversity are also specifically manufactured at a concrete manufacture, ACC seeks different means a priority. With safety being an over- plant and transported in a Transit Mixer to enhance the life of its mines such as arching value, our mines regularly play (TM) for delivery to the customer’s the enrichment of low-grade limestone host to Mines Safety Week and Mines construction site in a ready-to-use through beneficiation and indirectly by Environment celebrations. All ACC mines freshly mixed state. RMX can be custom- promoting the manufacture of blended pursue exacting standards for safety made to suit different applications. RMX cements. management. is bought and sold by volume - usually expressed in cubic meters. The materials These cements, viz. Portland Pozzolana Ready Mixed Concrete consumed in Ready Mixed Concrete Cement (PPC) and Portland Slag Cement Concrete is a mixture of Portland Cement, operations in the last three years are (PSC) replace some part of the precious water, and aggregates comprising sand shown in Table 6.4.2. limestone with industrial wastes and byproducts (Fly ash, a waste from Table 6.4.2. Thermal Power stations and slag, a waste generated by the steel industry) in the Raw materials (Tonnes) 2016 2015 2014 final cement grinding or blending stage. Cement 633830 5,50,655 4,02,445 This may typically replace limestone by up to 20-30 % with fly ash and 60% Slag 53381 40,067 31,456 with slag. These products are rendered doubly sustainable as they also address Fly ash 177670 1,62,038 1,08,975 the disposal of waste material in a more Additives 8312 7518 5,197 environment friendly manner. Cement Industry is also trying to enhance its Sand 1859552 1587154 1179465 portfolio of blended cements through Aggregates 2390050 2105141 1610712 the introduction of Composite Cements. In addition we use alternative raw Lubricating oil 20.93 30.45 34.78 materials such as marble slurry and red Grease 8.56 7.63 8.89 mud. These initiatives help us meet our target of using waste derived resources to strengthen our approach to pursuing the concept of circular economy.
During 2016, ACC utilized 3.90 million tonnes of fly ash, 2.67 million tonnes of slag, 1.10 million tonnes of crushed rock fines, thus providing sustainable environmental friendly services to the nation. During the year, our plants co- processed 3,79,520 tonnes of alternative fuels and raw materials achieving a thermal substitution rate of 3.22% through successful co-processing of various waste streams and other alternative fuels.
While we utilize wastes generated by other industries and processes, no product made by the company itself is reclaimed in any way. (GRI 301-3)
Sustainable Development Report 2016 65 6.5 Water
Aligning with the group target, ACC also aims to reduce its freshwater withdrawals by 30% by 2030. Towards this objective, the company is strongly focusing its efforts on the following initiatives: (i) Reduction of fresh water intake by lowering water demand in process and non- process areas (ii) Process optimization and upgradation to water efficient ACC has a long and visible tradition of technologies wherever water conservation, particularly through feasible the creation of new water bodies and (iii) Installation of Sewage efforts to rehabilitate and replenish treatment plants (STP), existing sources. With a purposeful Effluent Treatment Plants agenda for water conservation, we are (ETP), Zero Liquid Discharge already self-reliant in respect of our (ZLD) systems for effective water requirements at Kymore and reutilization of waste water. Jamul cement plants. We aim to make During the year 2016, the further progress to achieve “Water Company ordered ZLDs for Positive” status. Wadi and Chanda Cement Works, STPs for Lakheri and In recent years commendable efforts Damodhar Cement Works have been made by several of our plants. Compared to other industries (iv) Conservation of water by rain and processes, cement industry is not water harvesting in plants, water intensive. Water is used mainly mines, colonies, community in industrial cooling and in domestic areas and sustained water consumption. harvesting measures
66 Sustainable Development Report 2016 Table 6.5.1 2016 2015 2014 Source of Water* Cement RMX Cement RMX Cement RMX
Surface Water 5.44 - 5.37 - 7.92 (Million M3)
Harvested Rain Water 6.85 - 8.02 - 7.08 (Million M3)
Municipal Water Supplies 0.07 0.48 0.07 - 0.09 (Million M3)
Ground Water With a purposeful 1.99 0.32 1.23 0.871 1.57 (Million M3) agenda for water *Partial quantities are based on meter reading where available while the rest is calculated based on the pump capacity and running hours conservation, we are (GRI 303-1) already self-reliant in
No water body is affected by our withdrawal (GRI 303-2) respect of our water requirements at Kymore Table 6.5.2 and Jamul cement Water Treated and Reused* 2016 2015 2014 plants. Total Quantity of Water Treated and 9.1 9.84 8.25 Reused Annually (%)
Total Quantity of Water Treated and 1.31 1.45 1.30 Reused Annually
* Calculated based on the pump capacity and running hours
Sustainable Development Report 2016 67 6.6 Biodiversity
Nature is one of the pillars of our SD might be affected directly or indirectly 2030 plan, where we aim to create a by our operations but we take due care positive change on biodiversity. Mining and efforts to mitigate the level of is the main activity where our operations impact. Among all species, ten species have an impact on habitat and fall under ‘Schedule I’ category (highest biodiversity by way of the erosion of protected category as per Indian top soil, damage to flora and fauna, Wildlife Protection Act), are present noise and dust pollution etc. However within a radius of 10 km of our we are of the view that there have been operations and for all of them we have no significant changes in ecological prepared wildlife conservation plan. In processes. (GRI 304-2) terms of IUCN’s classification of red list categories, the break-up of these We are aware that species existing 10 Schedule I species is shown in within our locations or in nearby sites Table 6.6.1 below. (GRI 304-4)
Table 6.6.1
Critically Near Least Endangered Vulnerable endangered Threatened Concerned
1 species 2 species 2 species 1 species 4 species
68 Sustainable Development Report 2016 We continuously endeavor to reduce the help meet the 2030 target having a Building Awareness level of impacts of our operations on this positive change in biodiversity. ACC has made conscious efforts to account. (iii) Measuring changes on biodiversity increase awareness and train the people require an effective tool. In 2016, the on Biodiversity issues at all its locations. All our plants and mines follow company rolled out the Biodiversity In collaboration with IUCN - Leader comprehensive plans and undertake Indicator Reporting System (BIRS) - a for Nature (LfN) Program and CII’s rehabilitation of spent mines in a well- new tool for assessing Biodiversity India Business & Biodiversity Initiative organized and safe manner in order condition and monitoring relative (IBBI), we conducted various training to protect the biodiversity and nature changes in Biodiversity. BIRS programmes to create awareness and around. With all our mines currently in assessment was taken up first at enhance capability of employees. The operation, rehabilitation work is still in Lakheri Cement Works and we now company actively partners with Cement a partial stage as it is being carried out plan to complete similar assessments Sustainability Initiative in programmes in a progressive manner which will be at all other sites within the next two and activities to improve the eco-system completed at the end of the tenure of the years. These assessments will set the at all its plant sites. mine. By the end of 2016 the total extent baseline score against which we will of mines area rehabilitated adds up to monitor our changes. about 844 hectares. (GRI 304-3) Measuring changes in (iv) Rehabilitation efforts implemented Biodiversity at Lakheri Parallel initiatives are being implemented on-ground include but are not limited to achieve the biodiversity target. to: ( GRI 304-2) BIRS tool was developed by a panel of IUCN experts to guide (i) During the year, rapid biodiversity Tree plantation: In 2016 companies in the cement and assessments were conducted by an approximately 1.5 lakh trees were aggregates sectors to monitor independent third party at Jamul planted with average survival rate changes in the biodiversity and Chanda mines. With these two >80%. At all plants, preference is condition of a site consisting of assessments, the company has given to native and local species one or more different habitat completed the exercise for all sites. best suited to the local ecology. types. BIRS methodology takes These assessments help identify Rain water harvesting: All our into account 3 aspects: the sites where we can prioritise worked-out mining pits harvest our efforts. As an outcome of these the extent of habitat types rainwater; this has in fact helped assessments, three of our mining to enhance the self-sufficiency of the ecological condition of sites - Gagal in Himachal Pradesh, some of our plants for their water these habitats, including Lakheri in Rajasthan and Bargarh in requirements. enhancements and threats Odisha- are found to be relatively sensitive. Though these sites do Top soil preservation: This is a the uniqueness and ecological not fall within or adjacent to any general practice adopted at each importance of each habitat in designated protected area they are plant where top soil is preserved the regional context. located within 10 km of a nationally for future use during afforestation The output is represented as a protected area (GRI 304-1). For all and plantation activities. score (1-10) representing the these sites, we have approved wildlife Managing invasive species: Biodiversity Condition of the conservation plans. Invasive species are a significant site. ACC Lakheri was one of (ii) In 2016, ACC developed a threat to the eco-system which the sites where BIRS was rolled comprehensive Biodiversity Action adversely impacts the growth of out in 2016 and a score was Plan for Gagal Mines through a native plants and ecology. We calculated. The assessment third party, wherein it included undertake concerted efforts to will be repeated after a period three ground-surveys spanning 7-15 create awareness, highlighting of time to show the relative days each. Accordingly, strategies harmful impacts of common change in biodiversity due to were identified for implementation invasive species. At some of the our activities. This tool will which will conserve and enhance locations such as Kymore , we help us monitor our progress the biodiversity at this site in uproot, collect invasive plants against our 2030 target of future. The company is working to (such as Parthenium) and dispose having a positive biodiversity implement these action plans in a of them in co-processing in our change. phased manner which will ultimately cement kilns.
Sustainable Development Report 2016 69 6.7 Wastes & Effluents
The process of cement manufacture is diverted into soak-pits within our does not generate any waste water or boundaries. effluent. Cement manufacture uses water only for industrial cooling. Water At ACC, we strive for “Zero Discharge” thus used is recycled and reused in the status in respect of all our operations process itself, leaving no waste. Small and we do not discharge any process amounts of effluent are generated effluent in water bodies or anywhere in Captive Power Plants which gets else. Working towards this goal, during treated in Effluent Treatment Plants the year 2016, ACC ordered Zero Liquid (ETPs) in locations where we have Discharge (ZLD) systems for Wadi and captive power plants. Sewage generated Chanda Cement Works. Complying with in residential colonies located within the new regulations, we are also in the our townships is treated in Sewage process of installing new/upgrading Treatment Plants (STPs). The total existing STPs/ETPs wherever necessary. treated waste water through ETPs and In the reporting year 2016, we upgraded STPs is used for dust suppression and the existing STP at Damodhar Cement green belt development. Any domestic Works and ordered new STPs for Lakheri waste water that cannot be redeployed which are now operational. (GRI 306-5).
70 Sustainable Development Report 2016 Solid waste in cement manufacture is generated mostly from maintenance and housekeeping activities, comprising used oil and grease, metallic scrap etc. Wherever possible, our cement plants adopt the 4R Approach (Reduce, Reuse, Recover and Recycle) to handle these wastes. In some plants, hazardous waste such as waste oil is co-processed, wherever we are permitted to do so. The remaining hazardous waste is sold to authorized third parties for final disposal (GRI 306-2). We do not transport any hazardous waste categorized under Basel convention (GRI 306-4). Table 6.7.1 shows the quantity of hazardous and non-hazardous waste generated in 2016 (GRI 306-1): At ACC, we strive for Table 6.7.1 “Zero Discharge” Details Unit 2016 2015 2014 status in respect of all Hazardous Waste our operations and Waste Oil Litres 83633 226,307 211,673 we do not discharge Grease Kgs 50232 16,796 Nil any process effluent Non Hazardous Waste in water bodies or Steel Scrap1 Tonnes 30,635 10,813 17,900 anywhere else Others2 Tonnes 5,098 4,558 6,397
Filter Bags Nos 113,671 63,632 75,730
Note: 1. Steel Scrap includes castings, waste steel, MS drums, wrapper scrap, iron scrap, grinding balls, HC lining plate, table liner, HC grinding media, etc. 2. Others includes waste cement bags, conveyor belts, wood, copper, plastic bags, electrical cables, empty glass bottles, aluminum, tyres, paper, PVC drums, HDPE wrapper, etc.
We have a comprehensive spill management system in place to minimize the impact, in the event of any spill. No incidence of any significant spill occurred in 2016. (GRI 306-3)
A large proportion of empty cement bags are reused with only a small part being disposed off as scrap. Construction sites find empty cement bags useful to store other loose construction material. Often empty cement bags are cleaned and reconditioned to store and pack other items. In many instances, the bags are cleaned and put to use as roof thatching material. In view of these practices, we have not found it necessary or gainful for us to reclaim used packaging material. (GRI 301-3)
Sustainable Development Report 2016 71 7.0
72 Sustainable Development Report 2016 Social
7.1 Health & Safety
7.2 People & Employment
7.3 Human Rights
7.4 Community Development & Social Responsibility
Sustainable Development Report 2016 73 7.1 Health & Safety
“No harm anywhere to anyone Our H&S policy and rules are guided by associated with ACC” is a fundamental the parent Group’s H&S agenda. Health belief of the company. Hence Health & Safety rules focus on the individual and Safety (H&S) is accorded topmost and spell out the expectations from priority such that it forms an integral all employees, contractors and visitors part of our sustainability agenda. whilst working in a LafargeHolcim group A strong health and safety culture establishment. These rules are designed is promoted at all levels. Safety is an to reduce incidents and move toward ongoing passion. We make it a point the ambition of ‘Zero harm’. H&S Rules Every employee is to integrate Health & Safety into our and Policy are prominently displayed at normal work as a basic operating all company locations. Every employee is accountable for his/ principle. We strongly believe in visible accountable for his/her own health and her own health and leadership and lead with personal safety and also has the duty to correct accountability to foster health and anyone they see acting in an unsafe way. safety and also has the safety at all levels across the Health & Safety is a team activity aimed duty to correct anyone organisation. at saving lives and minimizing harm. they see acting in an unsafe way. Table 7.1.1 S.NO Parameters 2016 2015 2014 1 Employee Fatalities (Nos.) 0 0 1 2 Fatality rates (directly employed) 0 0 0.049 3 Contractor Fatalities (on site) 5 3 3 4 Contractors Fatalities (off site) 5 4 3 5 Employee Lost Time Injury (LTI) 16 19 11 6 Employee Lost Time Injury Frequency 0.9 1.00 0.5 Rate (LTIFR) 7 Employee Injury Rate (IR) 1.33 1.63 0.94 8 Employee Lost day rate (LDR) 53.8 33.0 45.1 9 Employee Fatalities (Nos.) 0 0 1 Note: We follow guidelines of CSI in recording and reporting H&S related incidents. In respect of H&S information, we have not indicated any break-up by region and gender.
74 Sustainable Development Report 2016 We deeply regret that despite all our Detailed independent investigations from the fatal incidents were shared dedicated efforts in ensuring health were conducted for each incident to within the company and with other & safety, five people (all males) lost find the root causes and identify corrective companies in the global LafargeHolcim their lives while working at our and preventative actions. These and other group. operations in 2016 while there were improvement actions were then tracked five off-site fatalities, also males. for implementation. Lessons learned
Leadership & Accountability i) Health & Safety Improvement Plan (HSIP) Health & Safety Improvement Plan (HSIP) is prepared based on the feedback and involvement of the Company’s senior management. The plan contains seven Health & Safety (H&S) objectives, clearly indicating the ownership of each objective assigned to a senior executive. Salient aspects of the HSIP comprise H&S Leadership & Accountability, People’s H&S Capability, H&S management systems, Road Safety and Electrical Safety. This sets down the direction for the organization to channelize the efforts.
Enhanced visibility of Roll-out of Reward Meaningful Eliminating senior executives & Recognition toolbox talks electrocution risk and Consequence Management ii) visible Personal Commitment part of ACC’s approach to H&S management. We hope it serve as a Field visibility of senior executives major contributor towards our goal of related to H&S has increased Zero Harm. manifold with the launch of Visible Personal Commitment (VPC) - a iii) H&S Culture systematic tool to interact with shop floor people on safety matters To help build and reinforce a positive and take feedback. This has helped H&S culture, we have revamped ACC to demonstrate management’s our behaviour-based safety training commitment and enhanced safety program named “Developing leadership capabilities of our top Safety Commitment”. The program executives. With all management gives an insight into personal and staff mandated to be part of the VPC organizational traits to become a initiative, it has become a critical safety leader.
Sustainable Development Report 2016 75 7.1 Health & Safety
Table 7.1.2 People H&S Capability Building 11 1600 30 1780 81 54 468 NEBOSH are trained on Senior Executives Trained on VPC Trained as Undergone undergone Certified Risk Assessment in H&S capability modalities. internal refresher training behavior based employees capability workshop auditor for HSMS on Incident safety training enhancement on change (Health and investigation. program program from management, Safety “Developing M/s NIST, risk ssessment & Management Safety Chennai behavior safety. System) Commitment” for enhancing positive safety culture
100% of our workforce is covered by formal joint management–worker health and safety committees. Guidelines are in place for personnel and property security. Several health and safety topics such as contractor safety directive, use of PPE and related subjects are covered in formal agreements with trade unions.
Effective Execution Health Initiatives use of air ambulances. In addition, a The focus on H&S gets added strength ACC has a well-structured approach new health programme is being with regular hand-holding on to reduce health risk factors among designed to reduce exposure to health capability enhancement, translating employees and their families. The risks at all sites. corporate H&S requirements and company has taken numerous steps Workers in our units do not show any support implementation, timely review, to enhance medical facilities at all particularly high risk of diseases related incident investigation, rewards & plants and engage with employees and to their occupation, as per our records. consequence management. Cluster their families to create awareness and Their health pattern generally conforms H&S heads operating from key locations build capabilities. Emergency Medical to the national and regional average ensure round the clock positive Response (EMR) capabilities have been in respect of risk factors and lifestyle surveillance. optimized at all cement manufacturing diseases. units by outsourcing ambulance “I care, I share, I act” - Employee services, to ensure round-the-clock Significant steps were initiated to induct Engagement Campaign availability of trained EMR technicians. digitization to monitor employee health. In May 2016 the LafargeHolcim Group Other arrangements are being tied up An on-line health management system organised Global H&S days campaign to secure high quality pre-hospital care is being developed to standardize health “I care, I share, I Act” to mobilize large in the event of any medical emergency, processes across all units. This will groups of people and engage them in trauma or any other health care issue facilitate management to retrieve health Health & Safety activities. The company concerning employees such as the data of all employees. engaged with employees and workmen of contractors at all locations in a range activities, including competitions for poster drawing, slogan writing, nukkads (street plays}. The corporate leadership team connected with all employees over a webcast to re-emphasize the importance of H&S in the organization. Schools, community and the general public were also addressed.
76 Sustainable Development Report 2016 Here are some other measures used to build Health care. Health Capability Building Regular use of the Company intranet to disseminate health awareness Conducting health sensitization programmes Health training to 14 doctors and 11 paramedics. Personalized health care ACLS & ITLS training to 14 Identifying health peers from among Shop floor Associates (SFA) to spread paramedics. health awareness among employees and their families 200 teachers from all schools Training in office ergonomics in plants are trained in H&S 2OO teachers of township schools were trained to share awareness with more for promoting this initiative in than 1O,OOO students schools >10000 students spread awareness about H&S among employees and community 24 health peers trained for tool box health awareness talks 500 line managers trained in H&S
Sustainable Development Report 2016 77 7.1 Health & Safety
Road Safety spanning various stages of the H&S matters and inculcate the right Logistics is among the most challenging shipping cycle from the point a vehicle behaviours focused on safety of areas in safety, a large part of which approaches a plant to its end destination. Drivers, Vehicles and Journey relates to offsite situations and The plan also prioritizes focus areas Management. Creating greater alertness environments that cannot be easily based on likelihood, consequence, and awareness among drivers and influenced. ACC has developed a controllability. employees using simulator training, logistics safety roadmap for 2020, seat belt convincer training and which encompasses an analysis of past In 2O16 Driver Management Centres defensive driver training techniques is incidents, current initiatives and wide- were established at nine cement ongoing. ranging activity based risk assessments plants to educate drivers on various
78 Sustainable Development Report 2016 7.2 People & Employment
“To win in the marketplace you must a healthy work environment for first win in the workplace.” At ACC development and growth. employees are treated as the foundation of the company. ACC is passionate about India Manufacturing its people and strives to create a caring Transformation environment where employees are In 2016, the company strengthened its given opportunities to realize their full efforts towards “India Manufacturing ACC is passionate potential, contribute their best and are Transformation” , an initiative started about its people and adequately recognized and rewarded for in 2015 to introduce a more responsive, their efforts. We strive to build a strong efficient and lean organization design strives to create a employee base with multidisciplinary in all cement plants; it incorporated a caring environment teams where each and every employee new way of working with streamlined is motivated and inspired to work. work practices, enhanced people where employees are Our workforce is made up of people skills and capabilities and centres given opportunities from different parts of the country of excellence (CoEs) for continuous to realize their full representing different ethnic, cultural improvement through exchange of best and religious backgrounds. To build an practices. This was initiated after careful potential, contribute innovative workforce and future-ready benchmarking of best-in–class practices their best and are employees for tomorrow, the company of LafargeHolcim plants across the globe. pays special attention to issues such This Organizational reform continued to adequately recognized as health and safety, competitive show its benefits with improvement in and rewarded for their benefits and schemes, building new productivity by 30%. It is a continuous capabilities, empowerment and process through which ACC proposes to efforts. respect for human rights. It regularly transform itself into becoming one of reviews and adopts schemes to the most productive companies in the motivate employees and ensures country.
Sustainable Development Report 2016 79 7.2 People & Employment
Employment Till 2016, women were eligible to avail of In the year 2016, the company employed total 7833 people out of which approximately maternity leave of sixteen weeks taken 4%, equaling to 291, were women. (GRI 102-8, 401-1) either continuously or in two tranches of eight weeks each prior to and post Table 7.2.1 the expected date of delivery which was, then, more than what is required by law. Female Male In 2016, the total number of women who Total Employees 291 7542 took maternity leave was 8 women out Management Staff 247 3975 of which 5 have returned to work after parental leave ended in first quarter of Non Management Staff 44 3567 2017, 1 has resigned and 2 others are No of training Hours for Management Staff 126 2417 still on leave. Thus Return to work rate No of training Hours for non management 45 2286 is 250%. There were 2 women who Staff availed their maternity leave in 2015 but returned to work in the 2016 after maternity leave ended and both are still In the reporting year, we have also hired employees on contractual/third party/casual employed with the company. This leave basis: facility is not open to men. (GRI 401-3) Table 7.2.2 Employee benefits and schemes Category of Employees No. of employees As per our company policies, we do not Retainers / Advisors 4 provide the same employment benefits Subcontracted Employees 0 to temporary or part-time staff as to full time or permanent staff. However, Third Party Employees 8436 the benefits provided to temporary and Casual Employees 29 part-time employees are competitive Total 8508 with local market practice. To provide general welfare to full-time employees New Hires (GRI 401-1) and their families, ACC offers several schemes covering education, healthcare, Table 7.2.3 retirement benefits, loans, disability Age-wise Female Male and invalidity coverage and financial assistance. (GRI 401-2) <30 7 140 30-50 9 178 >50 2 8 Total 18 326
80 Sustainable Development Report 2016 Table 7.2.4 locations for the benefit of all employees and contract labour. The values are Employee Turnover Male Female recommended to be demonstrated with <30 195 34 Agility, Collaboration and Empowerment 30-50 204 16 (ACE) – also a new internal motto adopted >50 440 9 for desirable behaviours. Along with the new set of values, a new Performance Management System (PMS} has also been For employees in cement plants, organization’s chief executives to the put in place. The new PMS is designed in the company provides the following median percentage increase in annual such a way that Health & Safety and our facilities: total compensation for all employees in CRISP core values are directly embedded the same year was 3.2 • Furnished and unfurnished into individual objectives. This means accommodation within our townships, the focus is now both on what we do A minimum notice period of 15 days to one based on their entitlement and how we do it. This approach will help month is typically provided to employees us deliver sustainable success across • Excellent schools which are often and their elected representatives prior to the business and shape the culture we the best in the district and provide the implementation of any operational need going forward in such a dynamic subsidized education for children of changes of significance that could competitive market. employees. substantially affect them. (GRI 402-1) • Well-equipped health care centre with PMS is oriented to encourage people to Strengthening core values and qualified medical staff and facilities. innovate and have opportunities to grow, performance management develop and realize their potential. People At ACC an employee retires on ACC is respected for its strong values will be able to clearly relate how their superannuation after reaching the age and ethics which are embedded in its efforts contribute to the overall business of 60 years. All permanent employees corporate culture. During the year, the bringing in a performance mindset. are entitled to retirement benefits, in Company adopted a new set of core It is grounded in informal ongoing compliance with statutory requirements, values aligned with those introduced by conversation rather than formal staged comprising leave encashment, provident the LafargeHolcim group worldwide. The meetings. We expect that this change fund scheme, Officers’ Superannuation new code is abbreviated simply as CRISP, will impact everyone in the organization Fund, gratuity, additional gratuity as an acronym that enjoins emphasis on and will also promote our efforts on the per entitlements and also any amounts five distinct values viz. Customer, Results, type of company we want to build. Our due under the National Pension Scheme Integrity, Sustainability and People which aim is that this new approach supports where the employee had opted to now form the basic dimensions of the a common uniform company culture be a member. The employee receives high performance culture the Company and increases performance of our people advance notice of retirement one year wants its employees to demonstrate and team. Evaluation cannot simply ahead of the date of retirement. No in all their actions. These values were be based on numbers; value driven specific training is given to enhance the cascaded in the Organization through observable behaviour should support the outgoing employee’s post-retirement various workshops and activities at all achievement of targets too. employability; however we do provide useful advice on leading a healthy life and investing the retirement benefits gainfully. (GRI 404 – 2 and GRI 201-3)
In 2016 expenditure on employee’s salaries and benefits representing about 7 % of revenue from operations amounted to Rs. 778 crore. The ratio of the annual total compensation for the organization’s highest paid individual to the median annual total compensation for all other employees was 157. The ratio of the percentage increase in annual total compensation for the
Sustainable Development Report 2016 81 7.2 People & Employment
In the reporting year 100% of employees have undergone individual performance appraisal. (GRI 404-3)
Table 7.2.5
Annual Performance Total Male Female Managers who Received annual performance 3975 247 Non- management employees who received 3567 44 annual performance (as per LH social Survey)
Labour/ Industrial Relations of individual development plans for The Company continued to enjoy the sales team. These interventions peaceful industrial relations during have enabled the Company to create the year. ACC is known for its best succession plans for leadership positions in class workplace practices that has so that the Company’s talent pipeline is ensured 81 years of industrial harmony, kept ready to meet future requirements considered to be one of the best in the and contingencies. country. The Company is proud of its work culture which emphasizes safety, Talent development efforts are also high productivity, good health, quality of made in respect of Shopfloor Associates life and overall wellbeing of employees. with interventions to help build up- In 2O16, an amicable settlement was skilling and multi-tasking capabilities. reached with Pragatisheel Cement Shramik Sangathan (PCSS), a trade The total amount which was spent during the year on training and capacity union representing a section of contract enhancement was Rs 2.9 Crore. (GRI 404-1,2) workers in the old Jamul Plant. The Table 7.2.6 settlement paved the way to resolve their long pending issue in a cordial and Number of Training Hours ACC mutually beneficial manner. Male Female
Training and Education For Health and safety 219749 1408.39 Several initiatives were undertaken to For IT training 1250.5 100 identify, develop and nurture talent For Management skills 34346.5 2039 at all levels within the organization For Environment & sustainability 5110 250 through various training programmes Anti-corruption policies & procedures 446 12.5 and exposure to make them future ready for various positions in the Organization. Other Trainings 32138 1522.5 A leadership convention was conducted in 2016 to transform the leadership team In the reporting year average training People Processes in the Manufacturing function. Similarly hours was 17.6 per employee The company has clearly stated for the Sales & Marketing function an guidelines for all major people assessment was undertaken of the front While there is no specific training on processes such as recruitment, line sales team with a view to benchmark Human Rights related issues, much separation, career development, individuals against a global high of these aspects are covered in the performance appraisal, professional performer for that role. This behaviour company’s Code of Business Conduct and employee ethics and Code of and skill assessment was completed for that all management staff are required Business Conduct. The company’s 1,036 sales profiles during the year 2016. to study as a matter of self-training. people policies and processes highlight The assessment helped in understanding Security personnel also undergo specific equal opportunities to all and there key motivators that drive performance training relevant to their scope of work is no discrimination with regard and retention, enabling the preparation including on relevant aspects of human to gender, caste, creed, ideology or rights. 82 Sustainable Development Report 2016 other opinion, whether social, Diversity and Equal opportunity political or religious. As a result, ACC The diversity of our workforce is employees are drawn from all parts important and therefore concerted of the country representing different efforts have been made to achieve ethnic, cultural and religious diversity and deliver sustainable backgrounds. performance, particularly so that there is a gender-balance, and inclusive A two day “Train the Trainer” workshop work environment where diverse was designed and conducted by talent can contribute to superior ACC-Ambuja Leadership Academy business results. Though gender (AALA) on July 28 – 29, 2016 to build diversity is an area where we have champions of our core values by not made significant improvement as enabling them to get a thorough the nature of our business requires understanding of these values and working/living in a remote location how they can help build organization which could be challenging, we culture. A Key highlight of the employ more women at our offices as workshop was the use of case studies compared to plant. However, we are We also care for those on fringes or those from day to day work life at ACC progressively working towards this placed at any kind of disadvantage in and group activities along with to create a better environment for comparison with the rest of society at informative videos. women to work at our sites. (GRI 405-1) large due to force of circumstances such as disability. Therefore we work towards Table 7.2.7 empowering differently-abled people so Total that they can realize their true potential. In 2016 our total workforce included 20 Age Group Male Female such employees. <30 1409 129 30 – 50 3792 127 Market Presence Nearly all of the senior management >50 2319 57 staff (functional heads) is hired locally Total 7520 313 that is, within the country. (GRI 202-2) In fact shop floor and office associates, who (GRI 405-2) are non-management staff, at most of Table 7.2.8 our operations are drawn from the host community itself or from its vicinity. Our Type of Employees Ratio of basic salary of remuneration is consistently higher than men to women the stipulated minimum wage levels at Management Staff (Base salary) 1.2 all locations. The ratio of the standard entry level wage compared to the local Management Staff (Base salary + bonus etc) 1.2 minimum wage is 1.81(GRI- 202-1) Non-Management Staff (Base) 1.0
Sustainable Development Report 2016 83 7.3 Human Rights
Our Code of Business Conduct together Freedom of Association and with HR policies and procedures are Collective Bargaining intended to ensure that we comply We respect and comply fully with all with local laws and regulations in legal requirements in regards to union relation to compensation and dismissal, membership and collective bargaining. recruitment and promotion, working During 2016, 100% of the non hours, equal opportunity, diversity, anti- management staff Shop Floor and Office discrimination, and other benefits and Associates categories were covered by welfare in the markets. We comply fully collective bargaining agreement which with any local legal requirements with includes the notice period and provisions respect to minimum wage. In practice, for consultation and negotiation. our policies and remuneration and There were no complaints about benefits often significantly exceed local labour practices. (GRI 402-1; GRI 407-1, The Company is an legal requirements. GRI 102-41) equal opportunity Non - Discrimination & Harassment provider and Child and Forced Labour The Company is an equal opportunity We strongly prohibit the employment consciously strives provider and consciously strives to of child, forced or compulsory labour build a work culture that promotes the in any of our operations which is very to build a work dignity of all employees. As required well stipulated in our company’s Code under the Sexual Harassment of culture that promotes of Business Conduct. We also ensure Women at Workplace (Prevention, the dignity of all that none of our suppliers engage Prohibition and Redressal) Act, 2013 in employment of child, forced or employees. and Rules framed thereunder, the compulsory labour. In 2016, no breach Company has implemented a policy on of laws or violation has been discovered prevention, prohibition and redressal in any of these areas where any of our of sexual harassment at the workplace. operations or suppliers was found to All women - permanent, temporary or have significant risk of child labour or contractual, including service providers forced or compulsory labour. (GRI 408- - are covered under the policy. This has 1,409-1) been widely communicated internally and is uploaded on the Company’s Security Practices intranet portal. An internal Committee comprising four management staff is In 2016, company has employed total in place which includes three women 42 security staff and all of them have to redress complaints relating to been trained in human right aspects sexual harassment. Besides in each of which are mentioned in our company’s the units there is one nodal person to Code of Conduct. Human Rights receive and forward complaints to the training is also applicable to third “First Instance Person (FIP) who is a party organizations providing security woman” or directly to the Committee. personnel. We are developing a During the year the Company received comprehensive training module on one complaint which was investigated human rights which will be rolled out in and closed within 90 days. Awareness the year 2017. (GRI 410-1) programmes were conducted across the Company to sensitize employees to Rights of Indigenous Peoples uphold the dignity of their colleagues at ACC respects local government the workplace, particularly with respect regulations on provisions of rights to prevention of sexual harassment. A of indigenous people. In 2016, ACC few employees also attended training had no incidents of violations programmes conducted by an external involving rights of indigenous people. agency. (GRI 406-1) (GRI 411-1)
84 Sustainable Development Report 2016 Human Rights Assessment Our approach to managing human rights is aligned to the internationally recognized UN Guiding Principles on Business and Human Rights. Though we have not conducted any human right assessments in 2016 but in coming years, we are planning to roll out Human Rights program for all our operations. (GRI 412-1)
During the year under review, no cases of Human Rights violation (viz. incidence of child labour, forced or compulsory labour, etc.) were recorded in our operations.
Sustainable Development Report 2016 85 7.4 Community Development & Social Responsibility
ACC has been known for its commitment In 2016, ACC reached out to more than to National Development Goals. The half a million people residing in 200 company continuously engages with the villages and 8 towns spread across communities living close to its operations fourteen states of India. ACC’s CSR many of which are situated in remote agenda is structured around four areas of the country. The Company’s thematic areas, Livelihood, Education, CSR and community development Water, Sanitation & Health, Rural interventions particularly focus on culture, Sports & Road Safety. These are development aspects that benefit the categorized under ten focused project vulnerable and marginalized sections of interventions namely: In 2016, ACC reached society. out to more than Livelihood - i) DISHA (youth employability), ii) LEISA (Low external In 2016, ACC maintained its position half a million people input for Sustainable Agriculture), of 12th rank among 100 top listed iii) Swavlamban (women empowerment), residing in 200 villages companies of India, as per an annual CSR Education iv) Vidya Uktarsh (quality ranking initiative done by Economic Times and 8 towns spread elementary education), v) Vidya Saarathi and Indian Institute of Management, (merit scholarships), WASH vi) Arogyam across fourteen states Udaipur. ACC won the inaugural ‘ICSI (community health), vii) Sampoorn CSR Excellence Awards 2016’ instituted of India. Swachhata (open defecation free by the Institute of Company Secretaries villages), viii) Sanrakshit Paryavaran of India. The company was also awarded (biodiversity & environment), and the prestigious CII-ITC Corporate Rural Sports & Culture - ix) Drona, Excellence Award 2016 for ‘Outstanding x) #SaveKidsLives. Accomplishment’ in Sustainable Development which evaluates CSR The CSR team engaged with a wide activities as well. These recognitions range of stakeholders in the host speak volumes for the company’s social communities with well-structured engagements that began much before CSR projects. All these projects follow the term corporate social responsibility a bottom-up planning process, that was even coined. begins with a needs assessment by an independent third party organization 86 Sustainable Development Report 2016 using participatory rural appraisal (PRA) Groups (SHGs) while existing 1233 testing and treatment for HIV/AIDS tools to develop a village level microplan. SHGs were trained for institutional while more than 20000 people were strengthening; a number of new screened during the year. A Community Advisory Panel (CAP), microenterprises were initiated. A set of comprising representatives and opinion SHGs were assisted with formulation of The Company has conducted impact leaders of the community is nominated federations and obtaining registrations assessments of its CSR initiatives at plant locations to facilitate inclusive for them. through Social Audit process. Third party project planning, information sharing Social Audit by social sector experts from and participatory implementation. Enhancement of quality education is outside the company has brought more Projects are planned in a comprehensive an important focus area. During the credibility to the company’s initiatives. manner in consultation with CAPs, which year support for quality education Strong systems and processes in CSR are then implemented by the company’s was provided to 239 schools in our have earned us accolades. All fourteen in-house team in partnership with neighborhood villages. Students in manufacturing plant locations of ACC carefully selected partners such as NGOs, the final years of school and college were covered through the Social Audit Academic Institutions, Corporates and education were groomed for preparing Process which involved people from Government organizations along with for competitive exams. Basic as well different sectors to examine annual inputs and guidance from the CAP. After as advanced computer education was evaluations by way of rigorous field visits projects are approved and launched, made available to the young boys and and secondary data analysis. The social quarterly meetings are held with the CAP girls from the communities. In addition audit reports are available in public. to review progress and suggest course to this, remedial classes for poor correction. performing students, career counseling, We have devised a mechanism to communication and interpersonal address community grievances Community management principles skills were provided to students from which may be routed to us in the are built into all the CSR projects from communities. Modern methods of following ways: the needs assessment stage to project learning such as smart classes and completion. Capacity building and interactive kiosks benefitted students a) Community Advisory Panels institutional sustainability are two in 70 rural schools. Scholarships were at each plant location that integral components of all CSR projects. awarded to 465 meritorious students comprise representatives belonging to weaker sections of society. from stakeholder groups of The Company engages with all sections Through ‘ACC ki Ladli’, an initiative the location as well as plant of the host communities to develop undertaken in partnership with the management; the CAP meets micro plans using participatory methods company’s channel partners to provide on a regular basis when they of planning. Individual projects are education to girl children who had highlight community issues designed to address the needs of the dropped-out; 1,495 girls from 50 villages and needs and also review host communities. Conscious efforts were thus benefitted. ongoing CSR interventions. are made to give priority to the landless, b) Direct approach to local farmers with small and marginal land ACC continued to support seven management. Members of the holdings, women-headed households government-run Industrial Training community may also write to and other marginalized sections in the Institutes (ITI), under the Public Private the local plant management or community. Partnership (PPP) Scheme with Ministry the corporate office. of Labour and Employment, Government In 2016, the total CSR expenditure of India. In this way we were successful in c) If any internal and external incurred was Rs. 22.27 crore which is addressing the needs of 36,709 students. stakeholders have any higher than the statutory requirement of grievance, they may also 2% of the average profit of the last three Our health and nutrition initiatives send it to e-mail id: brr.info@ years. benefitted 28,566 people. About 9,731 acclimited.com. children received access to better health About 4250 unemployed youth attended and nutrition services through support skill development training programmes provided to 201 Aanganwadi centres. and received job placements in various Two Anti Retroviral Treatment (ART) manufacturing and service sector centers established in 2006 and 2007 enterprises. Support was provided for by ACC, at Karnataka and Tamilnadu, the establishment of 129 new Self Help provided 4771 persons with counseling,
Sustainable Development Report 2016 87 7.4 Community Development & Social Responsibility
Indigenous communities are present at one of our locations. However there are no operations at any of the locations with significant actual and potential negative impacts on local communities.
In 2016, ACC’s CSR team has undertaken a range of CSR interventions across the country through its major project initiatives. Expenditure corresponding to these themes is as mentioned in Table 7.4.1.
Table 7.4.1
Expenditure S. No. ACC Thematic Projects (in Rs Crore) 1 ACC DISHA (Skill Development of Youth) 2.80 2 ACC- Low External Input Sustainable Agriculture (LIESA) 3.81 3 ACC – Swavlamban (Women Empowerment & Micro 2.26 Enterprises) 4 ACC Vidya Utkarsh (Quality of Elementary Education) 4.13 5 ACC Vidyasaarathi (Online Scholarship for Higher 0.83 Education) 6 ACC-Arogyam (Preventive Health) 2.67 7 ACC-Sampoorn Swachhata (Open Defecation Free & 3.70 Hygiene) 8 ACC Sanrakshit Paryavaran (Natural Resource 1.89 Management) 9 ACC –Drona (Promotion of Local Sports, Art & Culture) 0.63 Total 22.27
88 Sustainable Development Report 2016 Kudithini helps school children There are 15 government schools with ~3000 students in the neighborhood of ACC Kudithini. These schools faced issues of infrastructure as well as the quality of education. While the School’s management awaited assistance, the plant’s CSR team identified a potential partner in the Shikshana Foundation which had run successful experiments in schools at Hubli. In a proactive steps, the CSR team organized an exposure visit of the Kudithini school’s management, teachers and opinion leaders to Hubli to get a first-hand view of the work done by the Foundation.
Encouraged to replicate the experiment in Kudithini the team sought approvals for the schemes from the DDPI (Deputy Director of Public Instructions) and Block Education officer (BEO), who initiated facilitating correspondence with the concerned schools.
The Shikshana model looks at holistic development of the children and teaching with fun to involve the children completely. It was decided to initiate the project as a pilot in 5 schools and then replicate it in other schools. Five Vidya Volunteers were identified who had the qualification and aptitude to implement the model. Shikshana Foundation agreed to provide technical support by sending one of their experts bi-weekly and supply educational material. The Shikshana representative facilitated a baseline survey to chalk out the implementation plan. Baseline survey revealed that students were lagging in languages be it Kannada or English, science as well as numeric skills corresponding to their grades and age. Poor students were provided more attention and extra hour long classes were held by teachers and Vidya volunteers, pre-post school timings.
The model not only enhanced teaching quality in the classes but also involved the students in extracurricular activities such as sports, cultural activities,
Sustainable Development Report 2016 89 7.4 Community Development & Social Responsibility
plantation, neighborhood cleanliness, communication skills through oratory and handwriting competition, exhibitions, organizing skits & plays and development of leadership skills through games.
The Shikshana model of learning has helped in improving writing skills in Kannada and English, better understanding of the concepts of Mathematics and Science and in general increasing the pass percentage of students in all grades, notably of Class 10 board examinations. The Shikshana model has made learning easier for students. One child is designing energy efficient projects with solar power usage. Two of the five schools have got District Information System for Education (DISE) score of 10/10 and one of the school received Green School Award.
Table 7.4.2
Analysis of Education Intervention Before & After 4th to 8th Class S.N Village No of Total Before Intervention After Intervention Students Girls Boys A+ A B+ B C+ C A+ A B+ B C+ C 1 Ambedkar Nagar, Kudithini 53 59 112 0 27 11 36 0 27 20 18 25 26 12 0 2 Chalavadi Keri School, Kudathini 64 58 122 0 54 0 50 0 0 23 37 29 15 0 0 3 Government UP School, 118 98 216 0 58 0 124 0 2 31 40 73 39 1 0 Veniveerapura 4 Government UP School, 46 32 78 0 15 0 50 0 0 6 22 11 26 0 0 Siddammanahalli Total 281 247 528 0 154 11 260 0 29 80 117 138 106 13 0
ACC VidyaSaarathi - Access to complex web solutions including pursuing education in Diploma & ITI, Scholarship through Digital National Pension System, Registrar Graduation (10+2+3), Engineering Platform & Authentication Service Agency for (10+2+4) and Post Graduation. The The CSR Committee of ACC’s Board Aadhaar, Tax Information Network for scholarship application window was decided that the company should initiate Central Board of Direct Taxes among kept open for 45 days when over 500 a national level scholarship scheme others. applications were received. In all 100 for deserving meritorious candidates scholarships were awarded, of which from rural areas in the vicinity of the The Web Based Vidya Saarthi Portal more than half went to girls. All education company’s operations. Accordingly the provides an online platform that helps institutes in the district were registered Vidyasaarthi initiative was devised. manage and analyse large data from on the Vidyasaarathi portal which helped Launching and managing a scholarship student applications across the country disbursal of the scholarship directly into scheme across multi locations proved with timely reverts to enable award the education institutes’ bank account to be a complex task as it involved of scholarship. The online system also where the student is admitted. tight time-lines, processing voluminous ensures transparency in scholarship data, enabling award decisions with application processing and real time National Roll Out transparency and providing ease of status tracking of application. The success of the pilot, led to the application to thousands of students. launch of Vidyasaarathi nationally The use of a web-based portal to manage Pilot Launch on 12th January 2017 on Yuva Divas. end-to-end scholarship application and The pilot for Vidya Saarthi scholarships (Youth Day). All manufacturing plants award process helped to successfully was launched on 26th February of ACC organized their respective launch launch and administer the scholarship 2016 in Chandrapur district by the in the presence of district officials, scheme. In NSDL the team found a District Collector, in the presence local local community leaders, heads of reliable technology partner to power community leaders, Principals of reputed educational institutions in the districts, a web-based scholarship application colleges in the district and ACC Chanda ACC Plant management and students and management solution. NSDL e-Gov plant management. ACC Vidyasaarthi from the neighborhood. The window currently manages some of India’s Scholarship pilot covered the students for application has been kept open
90 Sustainable Development Report 2016 for 6 months and final award of the with 186 kg of ‘Paddy Dhanya Seeds paddy cultivation, farmers require 10-15 scholarship will be announced on 8th (DRH-836)’, for demonstration of SRI kgs of paddy to be able to get a harvest September 2017 which coincides with technique. The farmers apportioned a of 10-12 quintals/acre. However with the the International Literacy Day. For this portion of their land for cultivation of the introduction of SRI technique, with just 2 year’s round, a total of 1200 students are paddy crop in accordance with the SRI kg of paddy, the farmer is able to take a to be awarded this scholarship. technique. yield of around 18-20 quintals/acre. In addition to increased yield, an increase ACC Vidyasaarathi is well poised Volunteer farmers collectively spared in spacing under SRI technique reduced to provide some of the brightest 35.49 acres of their land for SRI the incidences of pest outbreaks which but under-financed youth from our demonstration. They were supported is very common in paddy cultivated via host communities with educational by providing paddy seeds and helping conventional methods. The quality of opportunities which otherwise would develop nursery beds for raising seeds also improved significantly. The not have been open to them. The online seedlings. CSR and NGO teams were success of the early adoptee has drawn solution is also a template which other in regular touch with all farmers the attention of other farmers and many companies can replicate. participating in the project. have decided to adopt the SRI method in the next crop season. Kymore’s Paddy Cultivation It was interesting to see that women The host community in the villages pro-actively participated in all the A detailed report of our CSR activities around ACC Kymore Cement plant are work related to paddy cultivation in 2016 is available in our Annual primarily dependent on agriculture for under SRI. The total harvest of paddy Report 2016 in our website at http:// their livelihood. Most farmers in the area demonstration under the project has www.acclimited.com/newsite/annual- have marginal land holdings in which been 601 quintals, which translates to report-2016/Annexures-to-Directors- they cultivate paddy and wheat as the an average crop yield of 17 quintals per Report.pdf main crops. Two consecutive years of acre. Under the traditional method of drought and water scarcity, adversely affected paddy cultivation. The challenge clearly lay in improving farm.
This called for an affordable yet effective technology that is amenable to farmers, has low input costs, easy to learn, low water intensive and scale neutral. The System of Rice Intensification (SRI) technique met these criteria and was selected for promotion among farmers in these villages. The System of Rice Intensification (SRI) is a globally proven technique for cultivating paddy which increases yield, saves water, reduces production costs, brings down the probability of pest attack and increases income. The CSR team along with HARITIKA (implementation partner) organized the farmers into 17 farmer clubs, provided necessary training and technical inputs.
Technical inputs were provided by Agriculture Technology Management Agency (ATMA), a registered society setup by the government for technology dissemination at the district level. In July 2016, 97 farmers were supported
Sustainable Development Report 2016 91 8.0
92 Sustainable Development Report 2016 Annexures
8.1 Assurance Statement
8.2 Glossary
8.3 GRI Standards - In Accordance “Comprehensive” - Content Index
Sustainable Development Report 2016 93 8.1 Assurance Statement
94 Sustainable Development Report 2016 Sustainable Development Report 2016 95 8.2 Glossary
ABCD - Anti Bribery and Corruption Concrete - A building material produced FICCI - Federation of Indian Chambers of Directive by mixing cement, water and aggregates Commerce and Industry, an association comprising sand and gravel or crushed of business organizations in India Alternative Fuels and Raw Materials or stone. Resources (AFR) - Inputs derived from Fly Ash - Waste particulate residue from waste streams contributing energy and/ Co-processing - The act of adapting an thermal power plants or incineration or resource recovery existing industrial process in a single plants combined operation, whereby certain Bag House - Air pollution control so-called ‘waste’ materials may be put to Fossil Fuels - Non-renewable carbon- equipment that removes particulates use as alternative fuel or raw material in based fuels like coal and oil etc from flue gas released in manufacturing cement kilns, dryers and captive power processes Geocycle - The brand name under which plants Holcim offers sustainable solutions for Biodiversity - Refers to the variety of life Corporate Social Responsibility (CSR) - In waste management. on earth - the different animals, plants a wider context the term indicates the Global Reporting Initiative (GRI) - An and micro-organisms, their genes and commitment of business to contribute to the ecosystems of which they are a part. International framework recommended sustainable development, working with for reporting progress against Blended Cement - Hydraulic cements various stakeholders like employees, Sustainable Development. In May 2013, consisting essentially of an intimate their families, the local community and GRI released the fourth generation of its and uniform blend of ordinary Portland society at large to improve their quality Guidelines –G4. This report is based on cement with either slag or fly ash of life. We generally use this term to refer G4 guidelines. specifically to community development Captive Power Plants (CPP) - Power plants and engagements. GPS - Global Positioning System or Generation Sets set up by an industry to meet its own power requirements. Central Pollution Control Board Green Building - A Building which uses (CPCB) - A statutory organisation less water, optimizes energy efficiency, Carbon Footprint - The total set of under the Ministry of Environment and conserves natural resources, generates greenhouse gas emissions caused by an Forests responsible for maintaining less waste and provides healthier organization. national standards under a variety of spaces for occupants, as compared to a environmental laws, in consultation with conventional building. Cement - a building material made by zonal offices, and local governments. grinding calcined limestone and clay to Greenhouse Gases - Gases that absorb a fine powder. It acts as a binding agent Employee Lost Time Injury - A work- and emit radiation within the thermal when mixed with sand, gravel or crushed related injury after which the injured infrared range of the earth’s atmosphere. stone and water to make concrete. person cannot work for at least one full IUCN - The International Union for shift/full working day. Cement Sustainability Initiative (CSI) Conservation of Nature, an international - a global group of 24 major cement Employee Lost Time Injury Frequency organisation working for natural producers set up under the World Rate - refers to the rate of occurrence resource conservation. Business Council for Sustainable of workplace incidents that result in an Kiln - Large rotating cylindrical industrial Development for the pursuit of issues employee’s inability to work the next oven used in the manufacture of cement concerning sustainable development in full work day. Calculated as the number clinker. In this report, “kiln” always the cement sector. of lost-time injuries within a given refers to a rotary kiln. A cement kiln is accounting period relative to the total Clinker - An intermediate product in believed to be among the largest moving number of hours worked in the same cement manufacture that is produced machines. accounting period. by sintering and fast-cooling ground Limestone - A sedimentary rock limestone Employee Lost Working days - Those composed of calcium carbonate used as days on which, because of occupational Clinker Factor - The percentage of clinker the main input in cement manufacture. injury or illness, the employee was away in cement from work or limited to restricted work Material Aspects - Topics that reflect Community Advisory Panel (CAP) - An activity. the organization’s significant economic, informal but representative group environmental, and social impacts EthicalView Reporting (EVR) - the of persons selected as accurately or those that substantially influence company’s new vigil mechanism to report representing views of the community in stakeholders’ assessment and decisions. concerns about unethical behavior, matters concerning its social needs and frauds and violation of the Company’s development schemes Code of Conduct and Ethics Policy
96 Sustainable Development Report 2016 Materiality - The threshold at which an Public–Private Partnership (PPP) - A Sustainable Construction - Building issue or indicator becomes sufficiently government service or private business in a way that is socially, economically, important that it should be reported. venture which is funded and operated environmentally, functionally and through a partnership of government and aesthetically balanced to meet today’s MT - Metric Tonne one or more private sector companies. needs and to provide and conserve resources for future generations. MW - Megawatt, a unit of power equal to Radio Frequency Identification Device one million watts (RFID) - The wireless non-contact use of Sustainable Development - Development Needs Assessment - A systematic process radio-frequency electromagnetic fields that meets the needs of the present to acquire an accurate understanding of to transfer data, for the purposes of without compromising the ability of a community’s needs and priorities in automatically identifying and tracking future generations to meet their own the context of its economic and social tags attached to objects. needs. SD is the acronym we use at ACC. development Rain Water Harvesting (RWH) - Sustainability Reporting - the practice
NOX - A generic term for Nitrogen oxides, Techniques used for collecting and of measuring, disclosing, and being usually refers to it as an air pollutant. storing, and using rainwater accountable to internal and external stakeholders for organizational NPS - Net Promoter Score, an index used Ready Mixed Concrete (RMX) - Concrete performance towards the goal of to measure the willingness of customers specifically manufactured for delivery to sustainable development to recommend a company’s products or construction sites in a freshly mixed and services to others. Also used as a proxy to plastic or unhardened state. RMX is the Thermal Substitution Rate (TSR) - The gauge customer satisfaction. acronym we use at ACC, though most amount of energy used from alternative others refer to it as RMC. fuels as a percentage of the total energy Ordinary Portland Cement (OPC) - consumed in the process. Cement made by inter-grinding clinker SA8000 - It is an auditable certification and gypsum. standard that encourages organizations UN Global Compact (UNGC) - A UN to develop, maintain, and apply socially initiative to encourage global businesses Perform Achieve Trade (PAT) Scheme - A acceptable practices in the workplace. to adopt ten principles covering Human trading scheme aimed to reduce energy Rights, Labour Standards, Environment consumption in industries across India Self-Help Group (SHG) - A village- and Anti-corruption. using market oriented mechanisms. The based voluntary support group usually scheme is designed and implemented composed of 10–20 local women or men VCCE - Value Creation in Competitive by the Bureau of Energy Efficiency (BEE), who come together to address a shared Environment cause or objective. under the Ministry of Power, India. Vertical Roller Mill (VRM) - A type of Profit After Tax (PAT) - It is the net profit Slag - A non-metallic product consisting grinding machine used to grind materials earned by the company after deducting essentially of glass containing silicates, into extremely fine powder. A VRM is now all expenses like interest, depreciation alumino-silicates of lime and other bases. recognized as standard energy efficient and tax. It is obtained as a waste by-product in equipment to grind clinker into cement. the manufacture of pig iron in a blast Personal Protective Equipment (PPE) - furnace or electric furnace. Visible Personal Commitment (VPC) - a Protective clothing, helmets, goggles, or tool to engage with shop floor employees other garments or equipment designed SO2 - The chemical term for sulphur on safety matters and seek feedback to protect the wearer’s body from injury. dioxide, usually an air pollutant that plays a critical role in global warming. Waste Heat Recovery - Generating power Petcoke - Petroleum coke which is a by utilizing waste heat from preheater carbon solid derived from oil refinery Stakeholder - Individuals or groups and cooler gases. coker units or other cracking processes. whose actions significantly affect or can be affected by an organization’s World Business Council for Sustainable Portland Pozzolana Cement (PPC) - activities, products or services. Development (WBCSD) - A CEO-led Cement produced by inter-grinding a organization of forward-thinking pozzolanic material such as fly-ash with Stakeholder Engagement - The process companies that galvanizes the global clinker and gypsum. by which an organization involves its business community to create a stakeholders, that is, the people who sustainable future for business, society Portland Slag Cement (PSC) - Cement may be affected by its decisions or can and the environment. produced by inter-grinding slag with influence the implementation of its clinker and gypsum. decisions.
Sustainable Development Report 2016 97 8.3 GRI Standards - In Accordance “Comprehensive” - Content Index
GRI Indicator General Disclosures Chapter Page number 102-1 Name of the organization 1.1, 2.1 1, 6 102-2 Activities, brands, products, and services 2.2 6, 10 102-3 Location of headquarters Back Cover 98 102-4 Location of operations Back Cover 98 102-5 Ownership and legal form 1.1, 2.4 1, 14 102-6 Markets served 2.2, 2.3 10, 12 102-7 Scale of the organization 2.1 6 102-8 Information on employees and other workers 7.2 80 102-9 Supply chain 5.3 49 102-10 Significant changes to the organization and its supply chain 2.4 14, 102-11 Precautionary Principle or approach 3.3 32 102-12 External initiatives 3.1 28 102-13 Membership of associations 3.1 28, 29 102-14 Statement from senior decision-maker 1.2 2 102-15 Key impacts, risks, and opportunities 3.3 32 102-16 Values, principles, standards, and norms of behavior 2.4 14 102-17 Mechanisms for advice and concerns about ethics 2.4 18, 19 102-18 Governance structure 2.4 14 102-19 Delegating authority 2.4 16 102-20 Executive-level responsibility for economic, environmental, and social topics 2.4 16 102-21 Consulting stakeholders on economic, environmental, and social topics 3.2 30 102-22 Composition of the highest governance body and its committees 2.4 14-15 102-23 Chair of the highest governance body 1.1, 2.4 1,14, 15 102-24 Nominating and selecting the highest governance body 2.4 15 102-25 Conflicts of interest 2.4 16 102-26 Role of highest governance body in setting purpose, values, and strategy 2.4 14,15 102-27 Collective knowledge of highest governance body 2.4 15 102-28 Evaluating the highest governance body’s performance 2.4 15 102-29 Identifying and managing economic, environmental, and social impacts 3.3 16, 32 102-30 Effectiveness of risk management processes 3.3 32, 33 102-31 Review of economic, environmental, and social topics 3.3 16, 33 102-32 Highest governance body’s role in sustainability reporting 2.4 16 102-33 Communicating critical concerns 2.4 16 102-34 Nature and total number of critical concerns 2.4 16 102-35 Remuneration policies 2.4 15 102-36 Process for determining remuneration 2.4 15 102-37 Stakeholders’ involvement in remuneration 2.4 15 102-38 Annual total compensation ratio 7.2 81 102-39 Percentage increase in annual total compensation ratio 7.2 81 102-40 List of stakeholder groups 3.1 24
98 Sustainable Development Report 2016 GRI Indicator General Disclosures Chapter Page number 102-41 Collective bargaining agreements 7.3 84 102-42 Identifying and selecting stakeholders 3.1 24 102-43 Approach to stakeholder engagement 3.1 25 102-44 Key topics and concerns raised 3.1 25-28 102-45 Entities included in the consolidated financial statements 5.1 44 102-46 Defining report content and topic Boundaries 3.2, 4.1 30, 38 102-47 List of material topics 3.2 30 102-48 Restatements of information 4.1 38 102-49 Changes in reporting 4.1 38 102-50 Reporting period 4.1 38 102-51 Date of most recent report 4.1 38 102-52 Reporting cycle 4.1 38 102-53 Contact point for questions regarding the report 4.1 39 102-54 Claims of reporting in accordance with the GRI Standards 4.1 38 102-55 GRI content index 8.3 98 102-56 External assurance 8.1 96 Management Approach In each 103-1 Explanation of the material topic and its Boundary respective chapter 103-2 The management approach and its components 103-3 Evaluation of the management approach Economic Performance 201-1 Direct economic value generated and distributed 5.1 46 Financial implications and other risks and opportunities due to climate 201-2 3.3 33 change 201-3 Defined benefit plan obligations and other retirement plans 7.2 80, 81 201-4 Financial assistance received from government 5.1 44 Market Presence Ratios of standard entry level wage by gender compared to local minimum 202-1 7.2 83 wage 202-2 Proportion of senior management hired from the local community 7.2 83 Indirect Economic Impacts 203-1 Infrastructure investments and services supported 7.4 88 203-2 Significant indirect economic impacts 7.4 87-91 Procurement Practices 204-1 Proportion of spending on local suppliers 5.3 50 Anti-corruption 205-1 Operations assessed for risks related to corruption 2.5 20 205-2 Communication and training about anti-corruption policies and procedures 2.5 20 205-3 Confirmed incidents of corruption and actions taken 2.5 20
Sustainable Development Report 2016 99 7.2 GRI G4 - In Accordance “Comprehensive” - Content Index
GRI Indicator General Disclosures Chapter Page number Anti-competitive Behavior Legal actions for anti-competitive behavior, anti-trust, and monopoly 206-1 2.5 20 practices Materials 301-1 Materials used by weight or volume 6.4 64 301-2 Recycled input materials used 6.4 64 301-3 Reclaimed products and their packaging materials 6.4 65 Energy 302-1 Energy consumption within the organization 6.2 57,58 302-2 Energy consumption outside of the organization 6.2 60 302-3 Energy intensity 3.4 34 302-4 Reduction of energy consumption 6.2 55 302-5 Reductions in energy requirements of products and services 6.2 60 Water 303-1 Water withdrawal by source 6.5 67 303-2 Water sources significantly affected by withdrawal of water 6.5 67 303-3 Water recycled and reused 6.5 67 Biodiversity Operational sites owned, leased, managed in, or adjacent to, protected areas 304-1 6.6 69 and areas of high biodiversity value outside protected areas 304-2 Significant impacts of activities, products, and services on biodiversity 6.6 69 304-3 Habitats protected or restored 6.6 69 IUCN Red List species and national conservation list species with habitats in 304-4 6.6 68 areas affected by operations Emissions 305-1 Direct (Scope 1) GHG emissions 6.1 54 305-2 Energy indirect (Scope 2) GHG emissions 6.1 54 305-3 Other indirect (Scope 3) GHG emissions 6.1 54 305-4 GHG emissions intensity 6.1 54 305-5 Reduction of GHG emissions 6.1 54 305-6 Emissions of ozone-depleting substances (ODS) 6.1 55 Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air 305-7 6.1 56 emissions Effluent and waste 306-1 Water discharge by quality and destination 6.7 71 306-2 Waste by type and disposal method 6.7 71 306-3 Significant spills 6.7 71 306-4 Transport of hazardous waste 6.7 71 306-5 Water bodies affected by water discharges and/or runoff 6.7 70
100 Sustainable Development Report 2016 GRI Indicator General Disclosures Chapter Page number Environmental Compliance 307-1 Non-compliance with environmental laws and regulations 6.1 56 308-1 New suppliers that were screened using environmental criteria 5.3 51 308-2 Negative environmental impacts in the supply chain and actions taken 5.3 51 Employment 401-1 New employee hires and employee turnover 7.2 80 Benefits provided to full-time employees that are not provided to emporaryt 401-2 7.2 80 or part-time employees 401-3 Parental leave 7.2 80 Labor/Management Relations 402-1 Minimum notice periods regarding operational changes 7.2 81 Occupational Health and Safety Workers representation in formal joint management–worker health and 403-1 7.1 74 safety committees Types of injury and rates of injury, occupational diseases, lost days, and 403-2 7.1 74 absenteeism, and number of work-related fatalities Workers with high incidence or high risk of diseases related to their 403-3 7.1 76 occupation 403-4 Health and safety topics covered in formal agreements with trade unions 7.1 76 Training and Education 404-1 Average hours of training per year per employee 7.2 82 404-2 Programs for upgrading employee skills and transition assistance programs 7.2 82 Percentage of employees receiving regular performance and career 404-3 7.2 82 development reviews Diversity and Equal Opportunity 405-1 Diversity of governance bodies and employees 7.2 83 405-2 Ratio of basic salary and remuneration of women to men 7.2 83 Non-discrimination 406-1 Incidents of discrimination and corrective actions taken 7.3 84 Freedom of Association and Collective Bargaining Operations and suppliers in which the right to freedom of association and 407-1 7.3 84 collective bargaining may be at risk Child Labor 408-1 Operations and suppliers at significant risk for incidents of child labor 7.3 84 Forced or Compulsory Labor Operations and suppliers at significant risk for incidents of forced or 409-1 7.3 84 compulsory labor Security Practices 410-1 Security personnel trained in human rights policies or procedures 7.3 84
Sustainable Development Report 2016 101 7.2 GRI G4 - In Accordance “Comprehensive” - Content Index
GRI Indicator General Disclosures Chapter Page number Rights of Indigenous Peoples 411-1 Incidents of violations involving rights of indigenous peoples 7.3 84 412-2 Employee training on human rights policies or procedures 7.3 84 Operations that have been subject to human rights reviews or impact 412-1 7.3 85 assessments Local Communities Operations with local community engagement, impact assessments, and 413-1 7.4 87-88 development programs Operations with significant actual and potential negative impactson local 413-2 7.4 87-88 communities Supplier Social Assessment 414-1 New suppliers that were screened using social criteria 5.3 51 414-2 Negative social impacts in the supply chain and actions taken 5.3 51 Public Policy 415-1 Political contributions 2.5 20 Customer Health and Safety Assessment of the health and safety impacts of product and service 416-1 Not applicable Not applicable categories Incidents of non-compliance concerning the health and safety impacts of 416-2 Not applicable Not applicable products and services Marketing and Labeling 417-1 Requirements for product and service information and labeling 5.2 48 Incidents of non-compliance concerning product and service information and 417-2 2.2 11 labeling 417-3 Incidents of non-compliance concerning marketing communications 2.2 11 Customer Privacy Substantiated complaints concerning breaches of customer privacy and 418-1 Not applicable Not applicable losses of customer data Socioeconomic Compliance 419-1 Non-compliance with laws and regulations in the social and economic area 2.5 20
102 Sustainable Development Report 2016 Sustainable Development Report 2016 103 A National Footprint
Punjab Sales Units Chandigarh (2)
Rajasthan RMX Plants Lakheri Cement Plants Lucky Minmat Ltd - Subsidiary company National Limestone Company Haryana Pvt Ltd - Subsidiary company Northern Regional Sales Office Sales Unit Delhi Madhya Pradesh RMX Plants Kymore Cement Plant Pre-processing Platform Sumant Moolgaokar Technical Institute ACC Help Centres Jabalpur & Bhopal Sales Unit Bhopal Singhania Minerals Pvt Ltd - subsidiary company Gujarat RMX Plants
Maharashtra Chhattisgarh Corporate Office Jamul Cement Plant Chanda Cement Plant ACC Cement Technology Institute Western Regional Sales Office Sales Unit Raipur TECHPORT RMX Plants Geocycle India ACC ACL Leadership Academy Goa RMX Plants RMX Plants
Sales Units Mumbai, Pune & Nagpur Karnataka ACC Mineral Resources Limited - Kudithini Cement Plant Subsidiary company Kerala Thondebhavi Cement Plant Bulk Cement Corporation (India) Ltd - Sales Unit Kochi Subsidiary company Wadi I & Wadi II Cement Plants Pre-processing Platform Tamil Nadu Southern Regional Sales Office Madukkarai Cement Plant Sales Units Bengaluru & Hubli This map is as of June 2017. It is illustrative and not Sales Unit Coimbatore & Chennai drawn to scale. RMX Plants Andaman, Nicobar and Lakshadweep islands are not RMX Plants shown.
104 Sustainable Development Report 2016 Himachal Pradesh Gagal l & ll Cement Plants
Uttarakhand Sales Unit Dehradun Uttar Pradesh ACC Help Centre Dehradun Tikaria Cement Plant Sales Units Lucknow & Kanpur ACC Help Centres Kanpur, Himachal Pradesh Lucknow, Faizabad, Gorakhpur, Moradabad & Varanasi Punjab
Uttarakhand Bihar Haryana Sales Unit Patna RMX Plants
Uttar Pradesh
Rajasthan
Bihar
Jharkhand Gujarat West Bengal Madhya Pradesh Chhattisgarh
Jharkhand Maharashtra Odisha Chaibasa Cement Plant Sindri Cement Plant Sales Unit Ranchi Telangana RMX Plants
Goa West Bengal Karnataka Andhra Damodhar Cement Plant Pradesh Andhra Pradesh Eastern Regional Sales Office Vizag Cement Plant Sales Units Asansol & Kolkata Kerala Sales Unit Kochi Odisha Tamil Nadu Telangana Bargarh Cement Plant Sales Unit Secunderabad Sales Unit Bhubaneswar Kerala RMX Plants RMX Plants ACC Help Centre Bhubaneswar ACC Limited Registered Office Cement House 121, Maharshi Karve Road Mumbai 400 020, India. www.acclimited.com