Brighter tomorrow Sustainability Report FY 2017-18 INDEX
Corporate Information Water Management 41 Message from COO 04 Symbiosis with nature 45 Report Profile 05 Green Purchase 49 Company Profile 06 Product Stewardship Godrej Interio Life Cycle Approach 54 Division of Godrej & Boyce 08 Product Certifications 59 Godrej Interio Timeline 09 Work Environment @ GI Product Offerings 11 Work @ Godrej Interio 62 Network & Reach 16 Safety @ Godrej Interio 65 Manufacturing Capabilities 17 Growth @ Godrej Interio 67 The year that was Diversity & Inclusion 70 Stakeholder Engagement 19 Community Connect Materiality Matrix 21 Wellness@Work 75 Maintaining the leadership position 27 Community Development Godrej by Numbers 28 77 GRI Index Environment 83 Energy Management 31 Renewable Energy 35 Carbon Management 36 Transportation Initiatives 38 Godrej & Boyce, a 121 year old company… CORPORATEC O M P A N Y PINFORMATION R O F I L E
Message from COO
Celebrating ‘JEET’ in all its glory! Interio, we have always linked our growth not merely to volumes and profits, but to the number of lives where During the last financial year, we chose GI:JEET, a call we can make a difference. From investing in our people to victory as our theme for the year. While there is no and communities to taking care of our environment, the doubting the power of words and thoughts, the way the last few years have seen us enabling our vendors and year has unfolded was a telling remark on the strength associates to walk the green path as well. that words carry within them. This report compiles and presents our key initiatives The year 2017-18 was a glorious year for us at Godrej towards greater sustainability. One of the highlights Interio, truly filled with victory, joy and pride. Our hard among our many initiatives, I am pleased to share, is work and commitment to excellence was recognized the GreenCo certification our vendors have obtained. It and rewarded at various levels. From winning the makes us proud, indeed, that we are growing greener, prestigious CII-EXIM Bank Award for Business and more prosperous, together. Excellence to GreenPro Certifications for 2 of our KEY HIGHLIGHTS OF THE YEAR products, IGBC certification for our plant and GreenCo In the coming year, we look to further widening the rating for eight of our key vendor associates, it definitely Godrej Interio universe and making sustainability a way CII- IGBC Green Factory Rating- Platinum Level has been a year full of achievements. of life in the truest sense. I urge you to stay connected for Shirwal phase 2. and be a part of our sustainability journey in any way Received Excellent Energy Efficient Unit Award for Only the 10th company in India to win this Business you can – for every effort matters. Shirwal plant at CII Energy Summit 2017. Excellence award since the 25 years of the Award’s Completion of SME GreenCo Cluster 1 with institution, it serves as a formal industry-wide With best regards, certification for 8 vendors and launch of SME recognition of our continued efforts towards excellence GreenCo Cluster 2. at every level. I extend my heartiest congratulations to CII- GreenPro certification for 2 system products. the GI team, our partners and all our stakeholders for Implementation of ‘One Godrej’ CSR initiative at enabling us achieve this goal. Shirwal for greater social impact.
CSR approach reinforced with integrated village This report aims to compile our efforts towards building Anil Mathur development programs at Bhagwanpur location. an increasingly sustainable ecosystem. At Godrej COO, Godrej Interio
GRI Indicators on this page:G4-1 Godrej Interio, Sustainability Report 2017-18 04 CORPORATEC O M P A N Y PINFORMATION R O F I L E
Report Profile & Scope
The Brighter Tomorrow report this year has been This report covers information for Financial year 2017-18 Godrej Interio published its last sustainability report in prepared as per the Global Reporting Intiative (GRI) G4 (1st April 2017 to 31st March 2018) about all Godrej the year 2017 and aims to publish it annually. Relevant sustainability reporting guidelines and is based on the Interio's products, processes, plants & people, with information and data for the report is collected “In Accordance Core” guidelines to a great extent. This the mention of a few processes and activities governed periodically from the concerned departments and year’s report has not sought any external assurance. and controlled by parent company, Godrej & Boyce Mfg. reported through multilevel dashboards for all plants as Co. Ltd. well as common functions. The data presented is Godrej Interio's materiality matrix has been prepared to verified through regular internal audits. identify key issues to be responded to as a part of the The Materiality of specific topics and indicators has been company strategy. This report explores how GI fulfills determined by using internal and external conventions stakeholder and environmental responsibilities through including: In case of queries, clarifications or suggestions, a combination of forward looking strategies and robust contact: Mr. Raviprakash R. Gupta, processes. This report aims to provide the readers with • United Nation Global Compact Principles on Godrej Interio Division, a balanced and reasonable representation of GI’s Environment , Human Rights and Corruption Godrej & Boyce Mfg. Co. Ltd, Plant 13 A, contribution in the area of sustainability. • World Business Council for sustainable development's focus area. Pirojshanagar, Vikhroli, Mumbai – 400079, India.
While applying the reporting principles approach, an • India GHG Program attempt has been made to address all the relevant and • CII Mission for Sustainable Growth [email protected] applicable indicators. The appropriate topics and • CII India business and biodiversity initiative indicators in addition to those emerging from the • Corporate Social responsibility reporting, Business materiality matrix are selected based on their Responsibility reporting, Stock Exchange board of significance for the economic, environmental and social India performance of the company and its substantial • Sustainability Challenges facing our business influence on the assessment and decisions of identified through our Risk Management processes stakeholders. • Godrej Core values and internal management systems
GRI Indicators on this page:G4-28, 29, 30, 31, 32, 14, 15 Godrej Interio, Sustainability Report 2017-18 05 CORPORATEC O M P A N Y PINFORMATION R O F I L E
Godrej & Boyce Mfg. Co. Ltd.
Unlocking brother Pirojsha Godrej carried SHAREHOLDING: The Early Beginnings Ardeshir's dream forward, leading Since its inception, the Company is Godrej towards becoming a vibrant, controlled by the GODREJ family The beginnings of Godrej multi-business enterprise. based in Mumbai, India. Its shares are & Boyce as an not listed on any Stock Exchange. Pirojsha laid the foundation for the organization are traced About 24% of the Company's share sprawling industrial garden township back to 1897 – the year capital is held by Pirojsha Godrej now called Pirojshanagar in the Foundation, a public charitable trust. young Ardeshir gave up suburbs of Mumbai, where the Godrej law and turned to lock- Group has its headquarters. BOARD OF DIRECTORS: Mr. Jamshyd Godrej, Mr. Adi Godrej, making. The young Today, Godrej & Boyce Mfg. Co. Ltd., Mr. Nadir Godrej, Mr. Kavas Petigara, the holding company of the Godrej innovative thinker was Mr. Vijay Crishna, Group, has grown to have 14 diverse committed to give the Mr. Navroze J. Godrej, business divisions offering consumer, society products that Mr. Pradip Shah, Mr. Anil Verma, office and industrial products and Mrs. Anita Ramchandran, served their needs and services of the highest quality to every Mr. Keki Elavia, Mrs. Nyrika Holkar. met the highest standard corner of India as well as across the not just in India, but globe. REGISTERED OFFICE ADDRESS across the world. Godrej & Boyce Manufacturing INCORPORATION: Company Limited, Ardeshir went on to make safes and Established in 1897, the Company Pirojshanagar, Vikhroli, security equipment of the highest was incorporated with limited liability Mumbai - 400079, India. order, stunning the world by creating on March 3, 1932, under the Indian www.godrejandboyce.com toilet soap from vegetable oil. His Companies Act, 1913.
GRI Indicators on this page: G4-3, 5, 7, 34 Godrej Interio, Sustainability Report 2017-18 06 Godrej Interio: Enriching Life G O D R E J I N T E R I O
A Division of Godrej & Boyce
Godrej Interio Godrej Interio, one of the largest functionality and technology. Godrej advocates the policy of sustainability. Transforming lives Strategic Business Unit of Godrej Interio pursues excellence with a To that end, all its products are & Boyce, is also India's premium special focus on health and manufactured with minimalistic effects furniture brand in both home and ergonomics. Be it office, home or on the environment, thus lessening the institutional segments with a strong other specialised application, it has carbon footprint. Usage of eco- commitment to sustainability and the entire range under one roof. Two friendly materials; setting up of less centre of excellence in design, new Business Lines, viz. AV Solutions polluting and consuming processes; Enabling people manufacturing and retail. and Vending Services, earlier with eco-friendly packing and Godrej Prima were merged with GI to transportation; and finally recycling/re- to confidently The company aims to transform leverage the synergies and provide use of used furniture and scrap shows express spaces with its smart furniture to end-to-end workspace solutions. the company's commitment to “Talk themselves. create brighter homes and offices with Green, Walk Green”. products having the highest design This major furniture brand cares for quotient that combine aesthetics, the environment and strongly
Establishing MISSION VISION VALUES conditions that proactively Enriching life by Godrej - the choice Trust, Integrity, Respect, promote transforming home for home and Environment, To Serve well-being. and workspaces workspace solutions
GRI Indicators on this page: G4-3, 7, 56 Godrej Interio, Sustainability Report 2017-18 08 G O D R E J I N T E R I O
Ninety Five years of Godrej in Furniture Business
2004 2007 2000 Exceution of 25000 Institution of Forays into School desk cum IIID-Godrej “Interiors” Business bench order for Afganistan Innovations 1996 Introduces Home Award for Co 1955 Furniture range creation of 1923 Launch of 2002 Futuristic Manu- Manufactures and 1937 Seating Forays into Furniture factures first introduces Steel doors Office furniture campaign on Laboratory solutions Steel and windows, Multiflex manufacturing ISO 9001 Health platform Solutions Cupboard Storage System certification
1935 1952 1997 1999 2001 2003 2008 Commences Manufacturing of 1984 Launches new Migration to Manufactures 13,000 Amalgamation Project manufacture of Storwel starts cupboard BAAN ERP cupboards for UNICEF to of Storwel & Saksham' - Starts Hospital Beds “Centurion” to system support cyclone hit Orissa Furniture Working with manufacture of and Library celebrate Godrej Business Suppliers on Open Plan Office Forays into Launches “i-Space” - 2006 stacks Centenary. Cost Down - System (OPOS) MODULAR Children's furniture Formal launch ACCOMODATION of brand - Value SYSTEMS Godrej Interio Engineering (Navy) Launch of influencer management program
GRI Indicators on this page: G4-13 Godrej Interio, Sustainability Report 2017-18 09 G O D R E J I N T E R I O
Ninety Five years of Godrej in Furniture Business
2009 2015 2011 2017 Establishment 2013 GreenCo Gold BEE 5 star rating Comfy Meter, for mattress of Seating Plant at Asia's most certification for Shirwal and IGBC platinum and Vikhroli Plant Bhagwanpur Tie -up with Knoll & ITOKI promising brands Greenguard rating award ISO 50001 certification TOC implementation for Greenguard certification for Chairs certification TPM exellance award for Interio Head for Shirwal. OPOS Room planner for Home for Vikhroli unit Office Building at CII Design Excellence Award software at the Furniture Vikhroli Launch of GreenCo cluster for Product testing and Chrysalis Sizzle Dinning Table BIFMA level 2 Gold 8 suppliers. Certification for AFRDI COCO Greenguard Certification for ACE Launch of DOCO stores showrooms certification and VERSA chairs Launch of Mattress range Limca Book of Records: Manufacture for Education won the Elle Décor GRIHA Model school CSR of India’s longest mattress:100 feet Furniture International Design Award certification project at Shirwal long
2010 2012 2014 2016 2018 CII Exim Bank Award for U&US design Studio Design HQ: with Start of GreenCo journey GreenCo Launch Business Excellence (Award) Designer Anita Dongre Platinum rating ISO 50001 certification for Greenguard, 'India Design Mark' BIFMA level 2 Gold for Shirwal Plant Shirwal phase 2- CII- IGBC Green certification of products Vikhroli plants Factory Rating- Platinum Level Launch at 'Better Certification for Wish Start of laquaring line IGBC gold rating for plant & Good & Green Policy tomorrow' Installation of Producer at Shirwal phase 2 Merger of 2 business lines - store Sustainability report gas unit at Bhagwanpur AV Solutions & Vending Services Wellness campaign Installation of solar Establishment of Haridwar Establishment of Manufacturing panels at Shirwal Merger of Mercury plant Mfg. Co. Ltd., Chennai Shirwal Factory Leadership award plant and Vikhroli Business Excellence journey Superbrand Mark office GreenPro certification for begins Upload and Transform campaign digital studio of U & US at Acquisition of India ‘Wish'and 'Reason' Kharghar, 2 Circus
GRI Indicators on this page: G4-13 Godrej Interio, Sustainability Report 2017-18 10 PORTFOLIO
Products and Services
Interio offerings consist of : Products • Services • Brand Association Godrej Interio is constantly striving to improve its design and manufacturing processes, aiming to create offerings for brighter living and brighter workspaces. PRODUCTS
Home furniture Bedroom furniture Living room furniture Kitchens Dining room furniture Mattresses Home storages
Institution furniture Seating systems Cabin desks & executive desks Education furniture Open plan office systems Storages Laboratory furniture Healthcare furniture
SERVICES
Interiors solutions Marine accommodation solutions AV solutions Vending services
BRAND ASSOCIATION
U & US (Home Design Studio) India Circus Script
GRI Indicators on this page: G4-4 Godrej Interio, Sustainability Report 2017-18 11 PORTFOLIO
Products and Services
Home Furniture Living Room Furniture Godrej Interio Home Furniture designs aspire not merely to bring alive The Living Room furniture range your spaces, but to inspire a change in the way you live. With striking is designed to amplify a family's designs and a unique style, every piece created not only lives up to most memorable moments. your expectations but also does its part to transform every aspect of Every piece is functional yet lets your life you experiment with your interior decor.
Bedroom Furniture Dining Room Furniture Godrej Interio's Bedroom range Aesthetically and functionally Home storages has been masterfully crafted to designed, GI's range of tables The wide range of make every moment you spend cater to every need. They host Godrej Interio in it relaxing and energizing. It is the warmest moments and most cupboards ensures a range that refreshes and delectable family dining maximum utilities rejuvenates. experiences. with minimum efforts. With classy looks, organized shelving and easy Mattresses Kitchens to operate Designed with a fine balance Godrej Interio offers a kitchen mechanisms, these of material to ensure good range that can be moulded to fit home storages comfort and right posture, in with every style of cooking. guarantee clutter Godrej Interio range of With a place for every item, these free solutions for mattresses assures a good kitchens make sure your cooking your homes. night's sleep for years. experience is hassle free.
GRI Indicators on this page: G4-4 Godrej Interio, Sustainability Report 2017-18 12 PORTFOLIO
Products and Services
Institution furniture Open Plan Office Systems The office furniture range is designed to optimize space and increase The expertise of designers, convenience through thoughtful features and technological innovations. architects and work-flow experts The aim is not just to make workspaces but to transform them. has led to a range of ergonomic, technology-integrated office Seating Systems solutions catering to every Godrej Interio has a vast range of executive need, at each rung of highly evolved seating systems the corporate ladder. that are designed around sound Health Care principles of ergonomics, proper Furniture postures and wellness. Healthcare spaces today demand Cabin desks & Executive desks Education furniture highly responsive Godrej Interio offers a wide range The Godrej Interio educational and supportive of office desks, integrated cabin furniture range is designed to furniture solutions. modules and suites designed for support and supplement modern To meet the comfort and utility at work. teaching methodologies and changing scenario formats. of healthcare spaces as they transition from Storages Laboratory Furniture curative to Today, storages are an integral GI offers world-class laboratory preventive zones, element in design of workspaces. furniture for modern researchers. Godrej Interio has Gi’s storage options not only Sturdy and contemporary, it is developed match with and enhance the engineered precisely to meet solutions to all office decor, but also multi-task exacting needs, making it the application areas with effortless ease. perfect for any laboratory. within this arena.
GRI Indicators on this page: G4-4 Godrej Interio, Sustainability Report 2017-18 13 PORTFOLIO
Products and Services
Services Interior Solutions Marine Accommodation Solutions AV Solutions: Godrej Interio offers turnkey interior solutions and Godrej Interio has developed solutions for the most This is the business of Audio Visual Products & design consultancy. The execution is handled by a team challenging interior spaces – Interiors of commercial Solutions that seamlessly integrate audio, video, of architects, designers, project managers and ships. It has on-board a team of capable designers, display, lighting equipment, system controls etc. for contractors with vast experience. engineers and contractors ready to transform the life of applications such as board rooms, auditoriums, digital sea-farers with well designed bright and safe spaces. class rooms, experience centers, etc.
GRI Indicators on this page: G4-4 Godrej Interio, Sustainability Report 2017-18 14 PORTFOLIO
Products and Services
Services Brand Association Vending Services: U&US Script: This is the business of beverages through vending The U&US venture offers an innovative concept of 'design At Script, the focus is on rethinking how furniture & décor machines addressing the Out-of-Home (non HORECA: customization', right down to the last detail by offering can be designed to bring more meaning into how we live, Hotels, Restaurants, Cafes) segment in India. customers a chance to create their own furniture. This work and play at home. It is a new imagination of living at revolutionary offering combines user ideas with the home, with contemporary design that is adaptive, company's furniture design and execution expertise using delightful and distinctive. state-of-the art technology.
India Circus: India Circus aims to increase Godrej Interio's foothold in the lifestyle vertical and offers contemporary and affordable home decor and personal accessories such as mugs, cushion covers, gift items, photo frames, to name a few.
GRI Indicators on this page: G4-4 Godrej Interio, Sustainability Report 2017-18 15 G O D R E J I N T E R I O
Network & Reach
An emotional connect across India Channels A 121 year old brand, Godrej reaches out to In India, Godrej Interio has developed families, companies and businesses in the and maintains a vast network of channel Over 340 MILLION partners and distributors. These include: urban areas, far flung towns and rural areas across India. A household name today, the CUSTOMERS 1200+B2B DEALERS company is constantly striving to meet the ACROSS ALL MAJOR CITIES OF INDIA CHANDIGARH expectations of every new generation. DELHI NCR COCO STORES Changing homes & businesses across 58 LUCKNOW Company owned, Company operated the world JAIPUR PATNA On the global front, Godrej Interio reaches GUWAHATI DOCO STORES out to customers across different AHMEDABAD BHOPAL 40 Dealer owned, Company operated continents. The Godrej brand makes its KOLKATA B2C 900+ Dealers & 2000+ Retailers presence felt globally with exports to New BHUBNESHWAR Zealand, Australia, Indonesia, Sri Lanka, SCRIPT STORES MUMBAI 1 Nepal, Bangladesh, Middle East, North BANGALORE PUNE Africa, Nigeria, Ghana, Kenya, Uganda, HYDERABAD Rwanda, Tanzania, Malawi, Mozambique, U & U S Zambia, Spain, Canada, Jamaica, Trinidad, BANGALORE 5 STUDIOS Puerto Rico, Panama, UK & Bhutan. CHENNAI 17 Branches 1 Mumbai, 1 Thane, 1 Navi Mumbai, 1 Pune, 1 Hyderabad
Further GI has an online presence 4 B2B DISPLAY CENTRES KOCHI through E-commerce market places like MUMBAIPUNE | | BANGALORE | DELHI Flipkart and Pepperfry. 1 KNOWLEDGE CENTER 1 EXPERIENCE CENTER MUMBAI DELHI
GRI Indicators on this page: G4-6, 8 Godrej Interio, Sustainability Report 2017-18 16 G O D R E J I N T E R I O
Manufacturing Capabilities
H.O - MUMBAI PLANT SHIRWAL PLANT BHAGWANPUR PLANT HARIDWAR PLANT BHIWANDI PLANT INTERIO CHENNAI
Address: Plant - 13 & 14, Pirojsha Nagar, Address: Gat No. 1267, Shirwal Address: Khasra No. 174, Address: Plot number - Address: Office and Factory Address: D3, Phase II, Vikhroli (East), Mumbai - 400 079, - Palshi Road, Village Shirwal, 15th Mile Stone, Village - 13 & 25, Sector - 4, BHEL I-4, Saidhara Warehousing MEPZ-Special Economic Maharashtra, India. Taluka Khandala, Dist. Satara – Raipur, Pargana - complex, SIDCUL, Haridwar - and Logistic Park, Village Zone,Tambaram, Chennai 412 801, Maharashtra, India Bhagwanpur, 247 663, Uttarakhand, India Kuska Borivali, 600045, India Products: 1. RTA (Ready to Assemble) Roorkee – 247 667 Taluka Bhiwandi, and welded metal furniture Products: Wooden home Products: Mattresses and Sofa Dist Thane - 421 308, Products: Office Steel 2. Healthcare and seating furniture products and system furniture Products: Seating and Maharashtra India Storage systems – Filing Tubular products Processes: Polyurethane cabinets, Cupboards and Processes: 1. Metal forming, welding, Processes: Wood working - continuous foaming process, Products: System furniture Lockers assembly and powder coating lamination, membrance Processes: Foam molding, foam rebonding, mattress & storages 2. Metal forming, pipe bending, welding, pressing, lacquering, sheet tube working - fabrication quilting and finishing. Sofa Processes: Sheetmetal assembly, powder coating, foaming & metal working - fabrication and and powder coating, making frame making and Processes: Component fabrication, powder upholstery powder coating upholstery and assembly upholstery aggregation & packing coating and Packing
Plant Certifications: ISO 9001, Plant Certifications: ISO 9001, Plant Certifications: Plant Certifications: ISO 9001, Plant Certifications: ISO Plant Certifications: ISO 14001, BS OHSAS 18001, ISO 14001, ISO 50001, BS ISO 9001, ISO 14001, ISO 14001, BS OHSAS 18001, 9001, ISO 14001, BS OHSAS SEDEX ISO 13485, ISO 50001, OHSAS 18001, GreenCo BS OHSAS 18001 ISO 13485 18001 GreenCo GOLD, TPM PLATINUM
GRI Indicators on this page: G4-9, 6 Godrej Interio, Sustainability Report 2017-18 17 Reviewing the year that was THE YEAR THAT WAS
Stakeholder Engagement
Godrej Interio has GI has identified, prioritized the key INTERNALSTAKEHOLDERS always taken into stakeholders and regularly engages with them through varied mechanisms, GI INTERNAL consideration the such as: internal & third party surveys, EMPLOYEES DEPARTMENTS EXTERNALSTAKEHOLDERS various communities regular meets, focus group it touches and grown discussions, co-creation platforms, GOVT.AGENCIES PARTNERS together. industry associations, etc.
Today, stakeholder engage-ment is a COMMUNITIES CONTRACTORS CUSTOMERS GI broadly defines stakeholders as crucial element for GI’s future business plans and strategies. The those groups or individuals who can CARPENTERS, MANUFACTURING TECHNICIANS NEIGHBORHOOD be expected to be significantly various modes of connecting, having a affected by Godrej Interio's activities, dialogue with the stakeholders within products and services. In return, their and outside the organization enables the company to gain an understanding INTERNAL DEPARTMENTS GOVT. AGENCIES Dealers / Franchisee actions, views and expectations can CMD, ED PARTNERS Retailers / Non Branch Town be expected to affect the ability of GI of their needs and expectations, aids Commercial Key Suppliers Franchisee (NBTF) to successfully implement its in identifying and managing risks, in Corporate P & A ASPs CONTRACTORS Godrej Infotech Consultants Service Contractors strategies and achieve its objectives. building trust and strong relationships Corporate Safety [Design/ Management] Manpower Contractors over time. It helps to explore ways to Corporate Finance Architects and Facility COMMUNITIES Godrej Interio’s concern for its various Locks Managers improve the organisation's overall Carpenters, Godrej Tooling Technology Partners, FST Technicians, Vending stakeholder communities has long performance. Corporate Procurement Logistics Partners Machines Technicians been part of Godrej culture and has Corporate Legal CUSTOMERS Manufacturing - Villages Export been brought into mainstream focus End Customers B2B around locations SMG End Customers B2C as a key strategy to evolve a sustai- GI EMPLOYEES International Customers nable organization in the recent years. GI Management Staff Workmen Channel Partners
GRI Indicators on this page: G4-24, 25
Godrej Interio, Sustainability Report 2017-18 19 THE YEAR THAT WAS
Stakeholder Engagement Matrix
In FY 2017-18, regular interaction with the stakeholders has resulted in the conceptualization & implementation of major improvement projects related to:
Stakeholder Investors Internal Depart- Employees End Customers Supply Chain Other Partners Government Communities • Risk Management ments Corporate – B2B, B2C, Partners – –Architects, Agencies • Cyber security, Data security procurement, International Dealers, Design common Franchisees, Consultants, • Product range enhancement services, IT Retailers, Technology • Richer consumer experience services & Suppliers Partners internal suppliers • Synergized Godrej-wide offering for B2B and B2C customers Formal Annually / Quarterly / Annually Annually / Annually / Annually / As & when Once in 2 years • Retail expansion & e-commerce Engagement Quarterly / Monthly Quarterly / Quarterly / Quarterly / required Frequency Monthly Monthly Monthly Monthly • Supply chain sustainability measures Formal Annual Monthly Employee Customer needs Branch Dealer Technology Meetings and Society need Modes of Business plan business feedback survey and expectation conferences, partner meets, Visits assessment and • Talent management Interaction presentation, reviews survey, Priority Dealer Influencer perception • Integrated community Business customer Meets, Annual management surveys, reviews, Good satisfaction business programs, community development and Green survey, Design planning Design review meetings reviews, validation discussions, meetings Most of these projects have been Design studies, Key Key supplier reviews, account meets, New initiated based on specific stakeholder General feedback, product feedback in this regard. Management customer meets development council reviews meetings
GRI Indicators on this page: G4-26, 27 Godrej Interio, Sustainability Report 2017-18 20 THE YEAR THAT WAS
Materiality Matrix: Measuring what matters
At GI Materiality was last The objective of the Material Issues MATERIAL ISSUES SURVEY: PROCESS AT A GLANCE survey was to obtain a first-hand Topics > Aspects > Disclosures on management approach + indicators assessed through the understanding of what issues were of materiality issue survey in concern to the various stakeholders and their specific importance. STEP 1 STEP 2 STEP 3 FY 2015-16 in line with IDENTIFICATION PRIORITIZATION VALIDATION REPORT Accordingly, the first set of issues was Sustainability GRI G4 reporting Materiality Completeness identified based on the criteria of Context guidelines. The process company values, vision and mission. included engaging with The second set addressed issues Stakeholder Inclusiveness highlighted by peer companies across external & internal India and the world. This compre- hensive list was fine-tuned by the STEP 4 stakeholders. It was B S Inclusion application of the GRI principle on executed through a third materiality assessment and Sustainability Context Stakeholder Inclusiveness party sustainability stakeholder engagement. expert. The survey comprised of 3 parts: through one to one interaction, of relevance, identification of aspect Step 1: Stakeholder identification / surveys, sessions, telephonic boundaries, assessment of The results of that exercise also apply Mapping and Prioritization as per GR1 interviews etc. This step also included significance of aspects, providing a to FY 2017-18. The top management G4 guidelines collation of feedback received from balanced representation of review at the end of FY 2017-18 This includes Identification of all types other engagement forums. organization's economic, ascertained a significant number of of stakeholders, based on GRI environ-mental and social impacts. issues are relevant thus far in principle of Inclusiveness and their Step 3: Materiality issue identification FY 2017-18 as well, as the prioritization. organization has not undergone any and prioritization as per GRI G4 significant changes in its business or Step 2: Engagement Implementation guidelines constituent stakeholders as well as the Mechanisms of engagement with Consideration of GRI aspect list, market it operates in. identified types of stakeholders topics of interest and its determination
GRI Indicators on this page: G4-17, 18 Godrej Interio, Sustainability Report 2017-18 21 THE YEAR THAT WAS
Materiality Matrix: Measuring what matters
A total of 27 issues were identified TOP 65% from the survey, of which 16 issues Customer Privacy Customer Cost Savings & TOP 65% have emerged as high interest, high Customer Satisfaction Management impact areas. These have been Health & Safety Occupational Training & Issues that set the grouped into 3 focus areas: Business Health & Safety Enhancing Employee Development VERY IMPORTANT VERY Wastewater Productivity agenda for GI's Sustainability, Environment Sustain- Discharge Improving GHG Emissions Air Quality Policy & Tax sustainability strategy, ability and Social Sustainability. & Climate Change Value Added Profitability Products Regulations focus and reporting in The following pages list the 16 issues Reducing Water Competition Consumption Enhancing Transportation TOP 80% the future. that GI has considered for its Sustain- Energy Efficiency & Logistics Talent Gender Retention ability Strategy and will be tracking Diversity CSR against pre-defined metrics to study Supplier Screening & Assessment for Availability of Raw Skilled Labour Environmental Aspects the progress made in the coming Materials & Resources Availability & Mechanization years. This details reflect how the Waste Generation various issues have been prioritized so EXPECTATIONS STAKEHOLDER Bottom 35% & Disposal that GI performs well on all the parameters identified. Areas where GI is Brand of Affordability Company of Products already performing well Issues included in the report apart Enhancing Exports and is low on external from high material issues as these are Governance & Ethics stakeholder priority. of high importance to the IMPORTANT GI stakeholders. IMPORTANT IMPORTANCE TO BUSINESS VERY IMPORTANT
GRI Indicators on this page: G4-19
Godrej Interio, Sustainability Report 2017-18 22 THE YEAR THAT WAS
Profitability Enhancing employee productivity Business Aspect Boundary: Aspect Boundary: Within the Within the organization organization Notwithstanding the increased Due to rising employee cost, GI is finding Sustainability competition and at times not so it increasingly challenging to improve its promising business and uncer- employee productivity (Value added per tain business environment, GI rupee of wages paid ) Material Issues chooses to adopt a profit first Measures taken: policy. • Study and redesign organization Measures taken: structure Competition • PMO projects, Profit to align with future strategies Aspect Boundary: protection plans, Purchase • Recalibrating back office roles at Within the organization cost reduction projects appropriate responsibility levels created to increase revenues With many reputed Indian and and reduce cost to enhance • Extensive training of people to get international players. There is an profitability. it right the first time acute need for GI to be aware of the competition's offerings and activities to retain market attention. Measures taken: • Intensify focus on consumer Cost Management Policy and Tax regulation research to have deeper Aspect Boundary: Aspect Boundary: Within the organization understanding of consumer Within the organization needs & aspirations Awareness preparedness and agility to adapt A highly competitive operating to evolving national laws, policies and • Development of differentiated, market calls for high focus on regulations is critical for smooth running of Value adding products cost saving initiatives to operations across locations and markets. • Provide easy access to prod- ensure profitability. Measures taken: ucts with new formats like fran- Measures taken: chisee stores and e-commerce • Active participation in policy making • Yield improvement through industrial associations like CII , IIID projects • Establishment of structured compliance • Energy conservation monitoring system initiatives • Proactively creating IT systems which can • Workers’ productivity enable seamless migration to new tax improvement projects regulations
GRI Indicators on this page: G4-20, DMA Godrej Interio, Sustainability Report 2017-18 23 THE YEAR THAT WAS
Enhancing Energy Efficiency GHG emissions & Climate change Environment Aspect Boundary: Within & Outside organization Aspect Boundary: Within & Outside organization As a responsible corporate, GI believes that safe- Due to global concern about climate change and guarding national energy security is important. growing consumer awareness, GI believes the future Sustainability Further, energy saving directly relates to reduced competitiveness and progress of the company would operational cost and enhanced profitability. be based essentially on the path it adopts to reduce its GHG emissions and overall climate impact. Material Issues Measures taken: • Adopting rigorous energy management Measures taken: standards like ISO 50001 & BEE rating for • GHG emission Inventorization and development of buildings . long term GHG mitigation plan • Adopting Life Cycle Costing Approach for • Efforts towards increasing share of renewable Capex selection energy • Extensive training of employees to create • Development of Low Impact Green products. energy experts & adept energy conservators • Create consumer awareness about low impacting products and increase demand for these products
Transportation and Logistics Supplier screening and assessment for social and Aspect Boundary: Outside organization environment aspects Due to the vast domestic market GI serves, mainly Aspect Boundary: Outside organization by roadways and the voluminous nature of the GI recognizes the importance and contribution of its product, the GHG Scope 3 impact due to inbound supply chain to meet the ever changing needs of its and outbound transportation is very high. consumers and demands of the highly competitive Measures taken : market. Hence, it has well defined processes in place to choose, assess and develop suppliers. • Creating a Local sourcing network around facilities to reduce transport mile for the raw Measures taken: material • Institution of Supplier Code of Conduct • Adoption of efficient Milk Run practices • Vendor cluster programs including training and • Hub and spoke distribution model for finished projects related to Energy efficiency, Water and goods Waste management • Transporter training programs for vehicle • Assist vendors to get ISO 9001, ISO 14001 maintenance, reduced instances of transit & GreenCo certification damage
GRI Indicators on this page: G4-20, 21, DMA Godrej Interio, Sustainability Report 2017-18 24 THE YEAR THAT WAS
Customer Satisfaction Social Aspect Boundary: Within the organization Retaining customer loyalty in a highly competitive market is critical for GI’s business sustainability and brand value. Sustainability GI has strived to retain loyalty of its customers by timely introduction of value added, quality products and enhancing its service levels as per changing consumer lifestyle. For insights on Material Issues consumer perception about the company's product and services, GI annually conducts a customer satisfaction survey. Measures taken: • Develop products with Indian sensibility and multi-utility value • Product innovations and co-creation to meet the changing needs of the customer • Large floor plate showrooms and e – commerce to enhance customer experience, both pre and post purchase • Development of safe and greener products
Training and development Skilled labor availability and mechanization Aspect Boundary: Within the organization Aspect Boundary: Within the organization For taking the leap into the future and to keep pace Due to the variety of products needed to cater to the ever with the fast changing markets, GI invests heavily in changing market, large scale automation solutions are limited in training and development of its employees. This aspect furniture industry and there is a lot of dependence on skilled and is critical for its transformation from a product seller to semi skilled labour. GI is focusing on de-skilling in select solution provider. manufacturing processes. It is also working with various government programs to increase availability of skilled manpower Measures taken: required for furniture industry. • Promote culture of creativity, innovation and leadership through Business Excellence program Measures taken based on reputed EFQM model • Development of error proof product design to reduce • Identify and train for skills required to meet long dependence on highly skilled labor for assembly term business goals, strengthening knowledge • In house skill enhancement programs for retention of management system, to increase reach, frequency skilled workers of information and knowledge sharing • DISHA initiative - support and contribution to national skill development program to increase skill base • Use of Low cost automation and robotics for repetitive tasks.
GRI Indicators on this page: G4-20, DMA Godrej Interio, Sustainability Report 2017-18 25 THE YEAR THAT WAS
Talent Retention Value added products Aspect Boundary: Within the organization Aspect Boundary: Within the organization At GI, talent retention is one of the core responsibilities Being a market leader in furniture and interior space, GI is of the senior management. Notwithstanding that the GI expected to lead the way in developing value added overall attrition rate is 11%, which is less than the products which meet the consumer's stated as well as industry average, management is taking concrete steps unstated needs. Innovations in manufacturing as well as to identify talent and retain it using various HR levers sourcing can lead to value creation for the customers and the society at large. Measures taken: • Competitive Fixed remuneration with strong Measures taken: differentiation based on performance • Development of Good products – meeting the needs of • Contemporary work practices and work environment the under-served • Capability building through advanced learning • Development of Green products – products having programs lesser environmental impact • Early responsibility and accelerated career • Customized products & services for special needs or advancement specific markets. • Recycling services and buy-back schemes for reducing product impact in the End of Life phase
Occupation Health and Safety CSR Aspect Boundary: Within the organization Aspect Boundary: Outside organization GI takes pride in its contribution towards making safe At GI, social responsibility is paramount and the company and healthy homes and workspaces by providing is well known for its CSR activities. GI endeavours to greener, ergonomic and safer products and services. ensure growth of the community, employees and suppliers It ensures safe , healthy and productive environment along with the growth of the company. for its workers at its factories and warehouses. Measures taken: Measures taken: • Development of Good & Green CSR strategy aligning • Creation of a Safety-First culture with national goals for human development and nation • Creating a robust system to enable reporting of building near-miss incidences • Conduct Society need identification and perception • Efficient chemical management system, surveys promoting safer and greener chemicals. • Development of integrated community development plan • Forge strategic partnerships with government agencies to maximize benefit to the society
GRI Indicators on this page: G4-20, 21, DMA Godrej Interio, Sustainability Report 2017-18 26 THE YEAR THAT WAS
Maintaining the leadership position
In the organized Indian - Customization for personalization This was possible due to aggressive and new technologies in manufac- furniture market, GI share - Innovation to offer never-before customer retention and acquisition turing, customer experience, e com; products / features in Indian markets drives, foray into new markets along and stays committed to Good & Green ranges from 20% in mat- - Channel expansion and operational with fixed cost control and many Vision with a strong belief that these ured product lines (such management reduction initiatives, ranging from initiatives will lead to reduced as chairs) to 3% in new - Integration of green and safety employee productivity improvement operating costs and enhanced products like mattresses. aspects to ensure well-being of people measures, transit damage reduction, customer satisfaction in the future. and planet. energy cost reduction, raw material In conjunction with its vision of One of the largest organized players in cost reduction to business travel cost GI has continued to generate a net “Brighter living” for all stakeholders, the Indian furniture industry, Godrej optimization. surplus of Rs. 100+ crores; 6 to 8% for GI has developed a long term vision Interio faces competition in the the past 3 years. In last year, GI With a tight control on fixed costs, the for playing an active role in creating a domestic markets from upcoming achieved a revenue growth of 4%. company continues investing in best more inclusive and greener India. foreign players with international design, technology and scale as well as small-time local players having a Godrej Good & Green Vision definite cost advantage. Beyond Business: Building a more Inclusive and Greener India To create a niche for itself, GI uses a multi-pronged strategy of: Ensuring Innovating for Good - In-depth consumer research on Employability Creating a Greener India & Green Products product offering, lifestyle relevance By 2020, Godrej Train 200000 rural & urban Achieve 25% reduction in Energy Consumption, Have a third of its portfolio and user experience & Boyce will… youth in skilled employment Zero Waste, Carbon Neutrality, Positive Water revenues comprising Good and / or Balance & 30% Renewable energy Green Products and Services - Rigorous multi-gate new product development process to ensure high By 2020, Godrej Train 15000 rural and urban Achieve 45% reduction in specific energy Have a third of its portfolio Interio will… youth in skilled employment consumption, 50% reduction in specific water revenues comprising Good and/or quality products by 2020 consumption and 15% use of renewable energy Green Products and Services
GRI Indicators on this page: G4-EC1 Godrej Interio, Sustainability Report 2017-18 27 THE YEAR THAT WAS
Godrej Interio by Numbers
ASPECT IMPACT
Showroom area in Sq.ft. PLANT PRODUCT LOCATIONS 6 13LINES 2,48,464 Energy Consumption 159 TJ PLANTS Solution 1290 7 offerings 4 Downstream Channel Partners: Water + 1 AGGREGATION CENTRE Consumption 1,12,804 KL
Plant area in Sq.ft.: Dedicated Dealer PRODUCT Owned Company 175 FAMILIES Operated 40 10,99,000 showrooms DOCO GHG Scope (1 &2 ) emissions 17,299 MT CO2 1662 84 Management Employees KEY SUPPLIERS 58 COCO Company owned Company Material operated showrooms 1371 Workmen Employees Consumption: 50,314 Tons
*Value as on 31.3.2018
GRI Indicators on this page: G4-4, 9, 6, EN-1 Godrej Interio, Sustainability Report 2017-18 28 THE YEAR THAT WAS
Godrej Interio by Numbers
VALUE ADD & CONSERVATION MEASURES AWARDS
28,44,558 Specific GHG emissions reduction: CII-EXIM Bank Super Brands PRODUCT VOLUME SuperBrands India 33% OVER Award for Business 2017-18 Baseline 2010-11 Excellence. 68 GREEN CII, November 2017 India Design PRODUCTS Mark Suppliers are ISO Brand of the granted to 8 products, 2017-18 Specific Energy Reduction 38 14001 certified Year 2016-17: Suppliers supported 39% OVER WCRC, May 2017 Baseline 2010-11 12 for GreenCo Acetech Design Wall 2017 Gold Home Retailer Specific Water Reduction Winner Local of the Year 2017: Motion Chair Range 26% OVER Purchase Franchise India, May 2017 Baseline 2010-11 70% Lexus Design World’s Greatest Award Finalist Share of 1742 13% Renewable Energy Brands & Leaders (Runner Up) People directly benefited Repos Gynaec Procedure Chair, in Social Programs 2016-17: Ambit - A work from Home *Value as on 31.3.2018 URS Asia One, May 2017 Ecosystem (March 2018)
GRI Indicators on this page: G4-4, 9, 6, EN-1 Godrej Interio, Sustainability Report 2017-18 29 Managing resources for a greener world E N V I R O N M E N T
Energy Management
VISION Breakup of total energy sources is given below in 42682970 Though the energy spend contributes to only 2% of 40952868 pie diagram 37219145 37372274 total manufacturing spends, through adoption of Good and Green Vision, Godrej Interio is committed to reduce 9% its specific energy consumption by 45 % by FY 2020 16% Biomass w.r.t FY 2010-11. 40% Diesel 2014-15 2015-16 2016-17 2017-18 POLICY Total Energy Consumed In kWh 35% Electricity Godrej Interio is guided by corporate energy policy, (All forms of energy are converted in kWh) Divisional QEEHS policy and focuses on energy PNG Fuel Mix management, energy reduction projects, increasing Fuel consumed at GI manufacturing plants includes Fuel Mix efficiency, use of latest technologies and purchase of High Speed Diesel, Piped Natural Gas (PNG), Biomass Plant wise breakup of total energy is given in below energy efficient equipment. Godrej Interio Vikhroli & Briquettes and energy from Grid Electricity. At all plants, pie diagram Shirwal plants are certified for ISO 50001:2011 13 Annexe, Plant 1 & electrical energy is sourced from Grid. At Vikhroli Chennai 5% showcasing the organization’s commitment towards Knowledge centre 1% location, requirement of thermal energy is met through Haridwar 3% Bhagwanpur 9% energy management. PNG. At remote locations, due to unavailability of PNG, plant operations run on diesel. The diesel requirement at Shirwal 23% For complete energy policy and Divisional QEEHS Shirwal plant and Bhagwanpur plant is reduced through policy, refer to link use of biomass as a fuel. http://www.interio.com/GodrejInterio/Policies.aspx?id=2 9&menuid=2554&catid=452&subcatid=57 Bhiwandi 1% Energy consumption records for each facility are based Plant-13 58% upon utility metered or energy provider measured Plant-14 1% Total Energy Consumption datasets. Fuel energy consumed is calculated by using Total energy consumption of Godrej Interio has standard calorific values sourced from IPCC Guidelines increased by 4 % over FY 2014-15 due to volume 13 Annex, Plant 1 & Knowledge Centre have marginal 2006. consumption of about 1% growth and addition of Chennai unit. Plant-wise Energy Consumption
GRI Indicators on this page: G4-EN3 Godrej Interio, Sustainability Report 2017-18 31 E N V I R O N M E N T
Energy Management
List of major projects implemented for Energy Specific Energy Consumption Employee Involvement Conservation GI calculates specific energy consumption in terms of Each GI plant has an Energy Management Cell with an Godrej Interio has adopted various technologies across total energy consumed in kWh per Lac of rupee of MVA Energy Manager and cross-functional team. This aids in all the manufacturing locations to reduce energy (Manufactured Value Add). clear assigning of responsibility and accountability for consumption. These technologies include use of VFDs improving energy efficiency in the plant. For awareness With prime focus on increasing equipment efficiency & on pumps and blowers, energy efficient machines and creation of employee involvement, programs like poster use of latest technologies, various energy conservation energy efficient lighting. Few of the projects competition, energy saving suggestion schemes, quiz projects implemented across all the plants have result- implemented at Godrej Interio plants are included in competitions, energy saving at homes are organised for ed in reduction of 10% in specific energy consumption table given below. staff members, including supervisors and workmen. in the last 4 years. With alignment to Good & Green Type of Saving vision, GI has achieved 39% reduction in specific Project Location energy Saved in kwh energy consumption w.r.t base year FY 2010-11.
Installation of compressor for Shirwal Electricity 102800 Along with kWh/MVA indicator, plant wise total energy Dust collector, Cyclone Blower and compressor is also compared with production unit of the said plant.
Replacement of Heat exchanger Plant 13 PNG 97290 of WDO old line & 14
Zirconium based Pre-Treatment Plant 13 Electricity 72000 43% line.(Elimination of 4 pumps) 42% 39% new PT line 32% Repairing of PCO-1 Heat Bhagwanpur Electricity 56250 exchanger 794 683 663 716
Plant-II lighting Optimization Shirwal Electricity 30000 Waste Heat Recovery Shirwal Briquettes 55 Ton fuel saving 2014-15 2015-16 2016-17 2017-18 Replacement of 250W Metal Chennai Electricity 8000 Specific Energy Consumption % Reduction over 2010-11 Halide Lamps with LED lamps (Energy in KWH/Lac of MVA)
GRI Indicators on this page: G4-EN5, EN-6 Godrej Interio, Sustainability Report 2017-18 32 E N V I R O N M E N T
Energy Management CASE STUDY