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 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 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, – 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 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. , Mr. , making. The young Today, Godrej & Boyce Mfg. Co. Ltd., Mr. , 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 , India. Taluka Khandala, Dist. Satara – Raipur, Pargana - complex, SIDCUL, Haridwar - and Logistic Park, Village Zone,Tambaram, Chennai 412 801, Maharashtra, India Bhagwanpur, 247 663, , 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

Energy Efficiency Through Retrofits

Challenge system is not exposed to undue pressure all the time, At Godrej Interio Vikhroli unit, GSL (Godrej Slitting Line) life of the seals and leakage have also been addressed. machine is the heart of notching process which is used to slit the metal coils. The GSL machine is operational Benefits since last 35 years in which the hydraulic system plays The retrofitting project benefited in reducing the power a very important role. The hydraulic pump pressurizes consumption from 13.5kW to 6.8 kW. The cooling tower the hydraulic circuit with high pressure (100 Bar) in the process is eliminated. The total saving in a year is 16,080 kWh of electricity unit. Pranav Katkamwar, irrespective of pressure requirement. Operation of system on continuous high pressure results in energy Asst Manager- Engineering Cell, wastage, heating of oil, exerting unnecessary pressure Godrej Interio, Vikhroli. on the seals resulting in leakage and impacting the life

“Godrej Interio strives to achieve energy of pump. efficiency in each equipment and machine. Intervention At Vikhroli, we have adopted the GI developed a 'multifunctional Integrated mono-block benchmarking approach for equipment and valve assembly ' which provides high pressure, low machines by comparing the actual volume, high volume and low pressure as and when efficiency to the design efficiency or to the required. An Accumulator is installed to hold the best efficiency/technology available in the pressure developed. After retrofit, most of the time the market. The GSL retrofit is one of the pump is operational only for loading as per the demand examples in which we reduced in system (Approx. 10% of the time). The same project consumption of machine by 50%” is horizontally deployed in another machine. As the

GRI Indicators on this page:G4-EN5 Godrej Interio, Sustainability Report 2017-18 33 E N V I R O N M E N T

Energy Management CASE STUDY

Becoming Energy Efficient - Waste Heat Recovery

Challenge Benefits At Godrej Interio, Plant Shirwal, thermic fluid heater This waste heat recovery initiative benefited in reducing (TFH) is used to heat the thermic fluid for wood working moisture content of the briquettes from 20 % to a processes. The fuel used in TFH is briquettes which maximum of 5%. This increased the combustion contain agro waste, saw dust and other biomass. The efficiency of TFH, resulting in reduction of briquette moisture content in briquettes is 17 to 20 % when these consumption by 85 Tons in a year. are sourced from supplier. The influence of the humidity

Mahesh V Kulkarni, of wood biomass has an adverse effect on increasing Energy Manager, the extent of the TFH flue gas losses and thus AGM-Maintenance, Shirwal inefficiency of the heat production. BEFORE

“GI Shirwal always tries to find out opport- Intervention unities related to waste heat recovery. This Plant Shirwal has implemented a waste recovery project is the classic example of how the system to remove the moisture content of the exhaust air from air compressor can be briquettes. The compressor house of Shirwal plant is used to increase combustion efficiency of located near TFH. The exhaust air of compressors has a solid fuel like briquettes. This has a good temperature of 60 Deg C. This exhaust air is circulated AFTER scope of horizontal deployment all across to the room where briquettes are stored for 24 hours, the industry.” for drying. After drying, the briquettes are fed into the TFH. The briquette consumption of TFH is monitored daily. The Moisture content is measured using moisture content detector.

GRI Indicators on this page:G4-EN5 Godrej Interio, Sustainability Report 2017-18 34 E N V I R O N M E N T

Renewable Energy

Vision 14.00 solar panels. At Plant Bhagwanpur, 13.00 Renewable energy is a critical part of 12.50 biomass is used as fuel for producer reducing global carbon emissions. 10 gas plant. The producer gas in used Renewable energy not only helps in for heating purpose in powder achieving carbon neutrality goals but coating process. At Plant Shirwal, also ensures energy security and long briquette based thermic fluid heater is term business continuity. Aligning to 2014-15 2015-16 2016-17 2017-18 used to heat the fluid for lamination Godrej Good and Green vision, Godrej Percentage of Renewable Energy process. Interio has taken a target to have 15% Roof Top Solar GI has installed 250 KW roof-top solar of its total energy coming from 6% renewable sources. panels at Shirwal Phase 1 & 110 KW Solar PPA Thermic Fluid Heater, Shirwal 24% Biomass roof top solar panels at Shirwal Phase

Policy Biomass 2. The installation of solar panels was 70% Godrej Interio affirms its commitment Solar PPA completed in March 2016, and power of increasing share of renewable generation began in April 2016. energy through QEEHS policy which Roof Top Solar Renewable Energy Sources In FY 15-16, Godrej & Boyce signed a states its commitment to harness the Energy from renewable sources- power purchase agreement with a Thermic Fluid Heater, Shirwal potential of renewable energy and Biomass kWh= 3876360 (70% of total RE) third party of 4 MW Solar PV for its strive towards increasing its share in Roof Top Solar kWh= 354390 (6% of total RE) manufacturing facility at Mumbai- our total energy consumption. Solar PPA kWh= 1334575 (24% of total RE) Vikhroli. The PPA has helped GI in GI is consciously working towards increasing its RE share. increasing the renewable component in its energy usage with strategies like With all efforts towards increasing RE, use of producer gas plant, briquette in FY 17-18, GI's renewable energy Producer Gas, Bhagwanpur based thermic fluid heater and rooftop share was 13%. Producer Gas, Bhagwanpur

GRI Indicators on this page: G4-EN3 Godrej Interio, Sustainability Report 2017-18 35 E N V I R O N M E N T

Carbon Management

As on date, GI is GHG Emissions direct GHG emissions from natural specific GHG reduction. It reviews its Since 2010-11, GI has documented its gas, liquefied petroleum and high performance against previous 3 years focusing on its Scope 1 carbon footprint as per the Corporate speed diesel usage. Scope 2 Indirect to get a better picture of YOY basis & Scope 2 emissions GHG Inventory Program guide emissions are based on electricity progress. Currently, GI is focusing on wherein carbon developed by CII (Confederation of purchased from the grid and are reducing its specific GHG emissions India Industry) in conjunction with calculated using emission factors (Tonnes/Lac of MVA). Against the base emissions are largely provided by IPCC 2006 guidelines. year 2010-11, by FY 2017-18, GI linked to our energy USEPA & WRI (World Resource Institute). GI has used emission reduced its specific GHG emissions consumption. Hence factors provided by IPCC 2006, As per the corporate 2020 Good & by 33%. GI’s GHG profile and Specific GI's carbon reduction Guidelines for National Greenhouse Green goals, GI has taken FY 2010-11 GHG reduction performance is as the base year for calculating the strategy revolves Gas Inventories to calculate Scope 1 illustrated on the following page. around monitoring Energy Community quantity and quality of Supplier Awareness Mode Shift Efficiency Afforestation based RE & Upgradation & Nodal network energy used in plants, measures projects offices, point of sales to work out strategies to reduce consumption Energy Supply Milk run model Renewable & Creating Portfolio chain emission adoption, and adoption of cleaner low carbon fuel Shared Value Management Management Third party projects modes of energy. Logistic

FOCUS AREAS FOR SCOPE 1 AND SCOPE 2 IMPACT MITIGATION FOCUS AREAS FOR SCOPE 3

GI aims to become Carbon Neutral for Scope 1 & 2 by FY 2020

GRI Indicators on this page: G4-EN15, 16, 19 Godrej Interio, Sustainability Report 2017-18 36 E N V I R O N M E N T

Carbon Management

Absolute GHG Emissions (in tonnes) 17299 352140 kwh of power through roof top solar 15865 Scope 3 Unit of Parameter Monitored Absolute Emission in 14925 14380 panels, 1399441 kwh units through solar PPA; Emission Monitoring MT CO2 -e Source 2014- 2015- 2016- 2017- 10907 9388 and attained 1436.6T CO2 as carbon offset. 10372 12019 15 16 17 18 Additionally, GI is also working towards a multi- Inbound Tonne*km 1) Mode of transportation 2458 2408 1051 1230 prong afforestation plan. This will include Transport- 2) Weight of material 4992 4958 4553 5280 ation 3) Km travelled projects augmenting govt. initiatives related to 4) Truck Load Factor increasing forest cover, community based plant- Outbound Tonne*km 1) Mode of transportation 865 812 803 912 ations & mangrove restoration projects nation- Transport- 2) Weight of material 2014-15 2015-16 2016-17 2017-18 wide. With this approach, GI is confident of ation 3) Km travelled achieving its carbon neutrality goal by FY 2020. 4) Truck Load Factor GHG Scope1 GHG Scope 2 Total GHG Scope (1 + 2) Waste Tonne*km 1) Mode of transportation 408.7 453 643 645 Specific GHG Emissions (tonnes/Lac of MVA) For SCOPE 3 inventorization, GI has docu- Disposal 2) Weight of material mented a limited amount of its Scope 3 Indirect 3) Km travelled 42% 40% 33% 4) Truck Load Factor 30% emissions from Inbound & Outbound 0.26 0.25 transportation, Waste disposal & Corporate Business Km* 1) Km travelled 20.632 32.4 26 17.4 Travel employee 2) Mode of Transportation business travel of Shirwal operations. These 0.30 Employee Km* 1) Km travelled 193.4 174.6 222 255 0.29 areas were selected after bench-marking the Commute employee 2) Mode of Transportation aspect being prioritized by leading furniture Total Scope 3 3946 3881 2745 3059 2014-15 2015-16 2016-17 2017-18 manufacturers. For Scope 3 documentation, DEFRA emission factors have been used. GHG Emission Reduction w.r.t FY 2010-11 Sr No Category Boundary As a part of the Scope 3 reduction policies, Renewable Energy 1 Inbound Logistics Supplier gate to Factory GI continues to work on small and big initiatives like: At GI, there are 3 sources of renewable energy: bio- 2 Outbound Dispatch Factory gate to Central a) Car Pool, shared transport facility and mass, onsite electricity generation through roof top warehouse Video conferencing for employees solar panels & solar PPA. In FY 17-18, producer gas unit 3 Business Travel All modes of business travel & thermic fluid heat unit consumed 1240870 kg of b) Local purchase initiatives 4 Employee Commute All modes of travelling of biomass wood. The carbon emission from these is c) Milk-runs for raw material transport permanent employees estimated at 2169T CO2 ; with carbon offset (Diesel d) Increased use of Rail transportation 5 Waste Transportation From Factory Gate to Scrap equivalent) estimated to be 977.91T CO . GI generated 2 vendor e) Hub and spoke distribution model

GRI Indicators on this page: G4-EN15, 16, 17, 18, 19, 30 Godrej Interio, Sustainability Report 2017-18 37 E N V I R O N M E N T

Transportation Initiatives

Given GI’s pan-India OUTBOUND TRANSPORT In the coming years, GI is looking at c) Part load delivery direct to customer presence, the Logistics Road V/s Rail increasing the rail transport % to is combined with material delivery to GI predominately uses road & rail Bangalore location and is on the look the nearest branch warehouse. dept. has a three fold modes for outbound transportation of out to add new locations which can be target: to reach products its products. Selection of transport- served efficiently by rail mode. Thus Mixed load dispatch not only in the least amount of ation mode depends on availability of enables dispatching material with the vehicles for the destination. For all Collaborations ensure full truck load lowest per piece cost (in case of time, cost and environ- eastern states of India, which are the GI has the advantage of being co- appliances) or with the lowest possible ment impact. For this, the major markets for GI, the railways are located with other consumer facing cost per TLF, but also ensures being department adopts a extensively used, as vehicle availability divisions at both Vikhroli and Shirwal responsible for sustainable growth by multi-pronged strategy is low. While chances of transport locations, where it uses the mixed utilising optimum truck capacity, damages are high due to extraneous loading concept to ensure 100% reducing carbon footprint of goods aimed at reducing loading & transshipment of material, utilization of the truck's carrying transported. product transport miles, transit time by rail is very low compar- capacity. Mixed load dispatches increasing awareness of ed to road & it is highly cost effective. methods are: Transporter programs for better fuel Rail transport is also frequently used efficiency partners, thereby a) High priority GI material with part for Lucknow, Bangalore & Cochin load is combined with the high priority As GI does not have its own fleet of increasing transport routes. load of other Godrej Divisions vehicles for product transportation, it efficiency via careful understands the need of creating 36% 36% 35% b) Material from various divisions of awareness and educating its transport selection of mode of 32% G&B (including GI) for the same partners about climate impact due to transport. All these customer are planned together to transport and CO2 emissions caused measures help in ensure reduction in transportation time by goods transportation. For this and complete delivery of all material purpose, GI has put in place transport reducing carbon impact 2014-15 2015-16 2016-17 2017-18 due to transportation. % of rail transport in terms of TLF

GRI Indicators on this page: EN-30 Godrej Interio, Sustainability Report 2017-18 38 E N V I R O N M E N T

Transportation Initiatives

related policies like Preferential Carrier Policy to promote use of CNG fuelled vehicles, No Idling Policy 44.40% 40% is in place reduce fuel wastage during loading 35% 46% SOURCING LOCAL VENDORS 29% unloading activities. Steps like checking the tyre FOR PURCHASE 35.60% 35% 38% pressure before starting a trip have been added to 27% 24% 25% ensure good fuel efficiency. Further, a series of vehicle 20% Transport Miles Savings in Initiatives Reduction maintenance trainings have been added in training MT Co2 -e 2014-15 2015-16 2016-17 2017-18 Achieved (km) in 2017-18 calendar for regular transporters employed by G&B. 18’ container 24’ container 32’ container Indigenization Hub & Spoke Logistics of polymeric 267192 103 GI is pursuing the 'Hub & Spoke' approach for INBOUND TRANSPORT polyol chemicals manufacturing and distribution of goods to be closer to Local Purchase its consumers as well as reducing its transport impact. Indigenization of The widespread network of plants places a lot of 113916 98 Imports Sofa Its Bhagwanpur and Haridwar units help largely meet pressure on the procurement team to reach the right seating and mattress requirements of northern and kind of material (quality, green and cost effective) in the Indigenization eastern markets of the country. right time for a varied product basket. GI looks at its of Traded 42936 27 wide plant network as an opportunity to contribute to The weight and volume intensive storage needs of Desking Suite the local economy. Hence as per its Material policy, it eastern market are served by strategic OEM based at strives to source maximum generic raw material and Guwahati. The transport impact of the southern market Local purchase of sub components from suppliers located within 200 hardware for is reduced by introduction of Bangalore Logistic Hub. 27824 18 kms radius of its plant location. In line with this policy, Shirwal products Creation of Hubs and clear definition of territories it has developed a strong network of suppliers in its enable the widespread use of large size trucks three areas of operation, Mumbai, Shirwal and Localization of (18' & 32'), the usage trend for the same is as given Bhagwanpur/Haridwar. In last 3 years, GI has steadily Sandhar armrest 17040 10 besides. for BQ plant improved its local purchase share (as % of total

GRI Indicators on this page: EN-30 Godrej Interio, Sustainability Report 2017-18 39 E N V I R O N M E N T

Transportation Initiatives

material cost) to 70% of total material used. Haridwar), a common shuttle service is also employed for the employee ease of commuting and also reduced GI while shifting its plants from Mumbai location (like transport impact due to employee commute aspect. woodworking plant moved from Mumbai to Shirwal) in addition to finding capable local vendors, also gave its key suppliers opportunity and support to co-locate. In The new cool this way, good local supplier base could be established in a short time. At Shirwal, in FY 17-18 import of raw Car Pool – The new cool material through sea route and supplier relocation with At Vikhroli, GI employees actively take part in the car transport optimization initiatives led to 49% reduction in pool program floated at the corporate level. The Car inbound transport CO emissions as compared to Akash Gupta, 2 –Pool program is aimed to provide employees an FY 15-16 Sr. Manager, Integrated Marketing & . avenue to contribute to the cause of environment, have Communication, Godrej Interio a stress free commute to workplace and back, get a EMPLOYEE COMMUTE chance to meet interesting, like minded people and “During my daily car commute of around 40 To achieve the triple benefit of availability of skilled make new friends. minutes from my home at Vashi to our office in manpower, good work life balance for employees as Vikhroli, I have often wondered how I could help well causing less environment impact due to few people on the way; while also making the transportation, GI plants are located in established boring, stressful drive more meaningful. The industry hubs which are well connected with public ‘Godrej Carpool’ initiative offered me an transport systems. In Vikhroli, Bhagwanpur and opportunity to help people, make new friends Haridwar, public transport is available within 1 km from and in the process, also do my bit for the the plant. In Shirwal, public transport is available within environment.” 3 Kms from the plant.

At its up-county locations (Shirwal, Bhagwanpur &

GRI Indicators on this page: EN-30 Godrej Interio, Sustainability Report 2017-18 40 E N V I R O N M E N T

Water Management

VISION with the opportunity to treat and reuse the waste Water is a prime natural resource, a basic human need treated water. At Plant 13 and Plant Shirwal treated 29% and a precious asset in the absence of which no socio- water is again made process ready by Reverse Osmosis 45% economic development activity can be sustained. By River Water Process. Ultra-Filtration process is used at Plant 25% Ground water 2020, GI is committed to reduce its specific water Bhagwanpur to reuse the treated water. In FY 2017-18, Municipal Water consumption by 50% as compared to FY 2010-11 and percentage of recycled water as a substitute of fresh be Water Positive across all its plants in India. Through Types of Water Sources water consumption was 26%. Quality of treated water is its Greener India initiatives, GI aims to pro-actively monitored periodically to ensure compliance against address water related risks by leveraging available applicable effluent disposal standards. 112804 sources and generating new ones. 103687 96659 76296 POLICY 46% 35% 28% Through QEEHS policy, Godrej Interio is committed to 26% conserve water by optimizing its use. This commitment 2014-15 2015-16 2016-17 2017-18 includes the minimization of water consumption, Total Fresh Water Consumption in Kilo Litres substitution of fresh water by efficient recycling, augmentation through rain water harvesting and water In FY 2017-18, GI’s absolute fresh water consumption 2014-15 2015-16 2016-17 2017-18 management beyond fence. The policy is commun- has increased by 9% over the last 4 years due to % of Recycled Water icated to employees and interested parties on request. volume growth, business expansion and addition of Chennai unit. Rainwater Harvesting Potential Total Fresh Water Consumption Water Treatment & Recycling Rain water harvesting is an important feature of building At broad level, major sources of water at GI are: Each of GI's plants is equipped with sewage treatment design in the form of rooftop collection system, 1. Municipal Water, plant (STP) and effluent treatment plant (ETP), ensuring collection and storage tanks, recharging to bore well 2. Ground Water (from bore wells), that none of its facilities directly discharge waste water and pits. The rain water harvesting potential of Vikhroli 3. River Water. into the environment. These treatment units provide GI plants is 83%, Shirwal Phase 1 is 96% and Shirwal

GRI Indicators on this page: G4-EN8, EN10, EN22 Godrej Interio, Sustainability Report 2017-18 41 E N V I R O N M E N T

Water Management

phase 2 is 97%. In FY 2017-18, total Some of the fresh water conservation 47% 31% initiatives are listed below: 26% rain water harvested in Vikhroli Plants, 21% Benefits KL Shirwal phase 1 and Shirwal Phase 2 Project Name Location per year 1774 1889 1354 was 145138.46 KL. 2004 Water Aerator for Shirwal 1440 taps in both facilities Standard, Methodology and

2014-15 2015-16 2016-17 2017-18 Assumption New RO line for Vikhroli 960 PL-14 PT line All the sources of water are metered Specific Water Consumption (Litres/Lac of MVA) and consumption is as per the Zirconium based Vikhroli 384 PT Line % Reduction over 2010-11 readings of meters. The total rainwater Replacement of old Haridwar 900 in the last 4 years. Aligning to Good harvesting potential is calculated underground water and Green vision, GI has achieved based on the average rain fall in the lines because of leakages 26% reduction in specific water region. consumption w.r.t FY 2010-11. RO Waste Bhagwanpur 365 Utilisation Specific Water Consumption Aiming to create awareness and Over a period of time, considering the Use of treated Bhagwanpur 300 water in Cooling increase employee involvement in business impact due to water tower. water management, each plant team unavailability, GI has implemented arranges programs like poster various projects to reduce fresh water At GI, specific water consumption is competition, slogan competition, consumption and increase use of calculated as total amount of fresh suggestion schemes. Further, dom- recycled water. water consumption per Lac Rupees of estic and process water consumption MVA (Manufactured Value Add). Due is tracked separately in the form of to various water conservation indicators like domestic water per initiatives, Godrej Interio has reduced person per day and process water per its specific water consumption by 5% unit of production.

GRI Indicators on this page: G4-EN8 Godrej Interio, Sustainability Report 2017-18 42 E N V I R O N M E N T

Water CASE STUDY Management

Becoming Water Independent

Self Sufficiency Intervention Project Name: Minimizing fresh water requirement At Godrej Interio plant Chennai, the output water of ETP through waste water recovery is treated through Reverse Osmosis process to increase utilisation of recycled water in the process. The water recycled through RO process is reutilised for pre- treatment process. This has eliminated the need of fresh water for pre-treatment process. The ETP and RO process enables plant to recover 92% of waste water M. Naresh for reuse. Lowered waste volumes decrease the cost Senior Executive, Maintenance Dept., associated with waste management, improve Godrej Interio, Chennai. environmentel performance.

“We have to keep in mind that it is often GI has installed reverse osmosis water recycling systems Benefits cheaper, easier and safer to use less water in to reduce the consumption of fresh water in its plants. the first place than to recycle or reuse waste The dependency on fresh water has been eliminated making powder coating process self-sufficient. This water. Our ground water supply is at risk of Challenge resulted in reduction of specific fresh water overuse in many areas. Therefor our moto is 54% of India face high to extremely high-water stress consumption of plant by 35 % over the last three years. “Use less water, treat less water and recover including Chennai. Chennai is staring at a severe water The RO unit recycles 2400 Kilolitres of water per more water”. Optimizing technique in water crisis in coming years due to deficit in northeast annum. The project has helped the unit to make it the and new treatment chemicals in our process monsoon. Godrej Interio Chennai plant has to depend Zero Liquid Discharge Plant. have minimized waste water at source. We on the fresh water supply for its various needs. The have implemented ZLD Process with 92% powder coating process is the most water consuming recovery with sustainable results” process.The water shortages in the region might have an impact on plant processes and the business.

Godrej Interio, Sustainability Report 2017-18 43 E N V I R O N M E N T

Water CASE STUDY Management

Towards Water Positive

Self Sufficiency Intervention Project Name: Rain Water Harvesting Godrej Interio has implemented a unique Rain water harvesting system i.e., Ulta Chhata, provided with multilayer physical filtration & maximum water catchment area at Shirwal Phase 2. The project is first of its kind in India. The system is linked to the 200 feet bore-well for water recharging & domestic water

Sahadev Chavan, storage tank of capacity 100000 Liters. Water Manager, Benefits Manager- Maintenance, Shirwal With implementation of Ulta Chaata project, Plant “Water is one of the most important Shirwal has achieved the capability to harvest and filter up to 385000 liters during the rainy season. This has substances on earth. We, on our journey of Challenge reduced the water dependency of Plant on River water. Water Positive, always seek opportunities to Shirwal is a speedily developing village with lots of This project has helped in increasing the underground conserve and harvest water. The rain water industrial development around. The agriculture growth water level also by bore-well recharging system. harvesting was an integral part of new plant and industrialization is coupled with the increase in design and we adopted innovative option of water demand in the area. With establishment of Ulta Chaata to even capture parking area.” Godrej Interio Phase 2 unit in Shirwal, the water requirement of GI has increased. The growing imbalance between demand and supply is becoming one of the potential risks to the businesses.

Godrej Interio, Sustainability Report 2017-18 44 E N V I R O N M E N T

Symbiosis with Nature

Birds, butterflies, bees and beetles is what makes up positive campus (water harvesting, reuse and recycle). Godrej's Pirojshanagar Industrial Township, spread across 3000 acres in Vikhroli, Mumbai. Acquired in the Pirojshanagar's ecosystems and habitats may be divided 1940s, today this township is a shining example of into three main categories: i) Natural wilderness, harmonious co-existence of industry and environment. ii) Modified habitats affected by human activities, iii) Habitats developed for recreation and biodiversity Two plants of Godrej Interio are proud residents of this ISO conservation. 14001:2015 certified habitat, hosting factories, corporate offices, colonies, schools and hospital which also hosts a Technically, these habitats can be classified as creekside mangrove ecosystem of 1228.72 hectares. Managed by mangrove forest, natural wetlands, artificial ponds, Construction Division of Godrej & Boyce Mfg. Co. Ltd., grasslands, scrubby areas, hilly area, open spaces, this self sustainable township is known for its environ- playgrounds, roadside avenues, vertical gardens, terrace mentally responsible features such as 'zero waste to gardens, plantations and indoor potted plants. Each of landfill' initiative (total waste management) and water these habitats supports biodiversity in varying degree.

Mangrove app has 24 true Major habitats and their biodiversity of Pirojshanagar have been mapped and are as follows: mangrove and mangrove associated species. GEOGRAPHICAL AREA: Launched by Shri Devendra Fadnavis, Chief Minister, Total area of Pirojshanagar = 1,698.929 ha Parks and other recreational areas = 9.45 ha Maharashtra. Downloaded Total area of Natural Areas = 1,276.08 ha Tree canopy cover = 170 ha (in addition to natural by 1900+ users from 50 (Mangroves 1228.72 + untouched forest land 47.36) mangrove area) countries. Proportion of Natural Areas = 75.11% Total water permeable area = 395 ha (84% of total terrestrial area)

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Bio-Diversity at Pirojshanagar

Aegiceras Acanthus Mongoose FLORA Mongoos Corniculatum: ilicifolius: e Number of plant species = 964, River Sea Holly Mangrove Number of vascular plant species = 136 Number of invasive plant species = 46, Wild Boar Number of mangrove species = 16 Rhizophora mucronata: Red Mangrove AQUATIC BIODIVERSITY Number of fish species = 23, Number of mollusc species = 21 Avicennia Red whiskered Kingfisher Excoecaria agallocha: marina: Bulbul Milky Mangrove REPTILIAN DIVERSITY Grey Mangrove Number of reptile species = 31 Bruguiera cylindrica: Orange Mangrove Telescopium (Mollusca)

INSECTS DIVERSITY Painted Number of butterfly species = 82 Grasshopper

AVIAN DIVERSITY Nesting bird species in built up area = 72, Total bird species recorded so far = 200 Sonneratia apetala: Common Rat snake Mangrove Apple

WILD MAMMALS DIVERSITY Fiddler Salvadora persica: Crab Number of mammal species = 6 Meswak

GRI Indicators on this page: G4-EN11 Godrej Interio, Sustainability Report 2017-18 46 E N V I R O N M E N T

Bio-Diversity Management Approach

Proper screening and due diligence is done during the Beyond Pirojshanagar selection of operation sites to ensure compliance to APPROPRIATE GOVERNANCE The Best Practices of the Home Location: Vikhroli are national laws like Coastal Regulation Zone Notification, replicated to the best possible extent in upcountry 2011; Environment Protection Act, 1986; Maharashtra • Constitution of organizational governance to locations. The biodiversity initiatives in Shirwal, manage biodiversity through formation Tree (Felling) Act, 1972; Water (Prevention and Control Bhagwanpur and Haridwar locations is limited to of departments, appropriate designations of Pollution) Act, 1974 & Wildlife Protection Act, 1972. maintenance of green cover using of native species of with role clarity and reporting structure Further, a three-prong biodiversity management plant due to small size of operation sites. approach is followed to conserve and enhance • Participation of internal and external Shirwal Location: Green Cover: 0.397 ha stakeholders in biodiversity management biodiversity around the areas of operation. Haridwar Location: Green Cover: 0.47 ha initiatives

ORGANIZATIONAL COMMITMENT APPROPRIATE INFRASTRUCTURE FLORA OF SHIRWAL • Inclusion of biodiversity in Environmental • Allotment of adequate resources and 363 - TREES Policy of G&B infrastructure for biodiversity management 7066 - SHRUBS • Setting SMART targets for all departments, • Participation in various certifications like ISO 1066 - CREEPERS sections and employees 14001, GreenCo Rating System, 160 - GRASSES CII Code for Ecologically Sustainable • Follow 'Beyond Compliance' approach for Business, India Business and Biodiversity proactive biodiversity conservation Initiative, Business Excellence and LEED FLORA OF Green Building Certification HARIDWAR

• Networking and institutional collaborations 410 - TREES with expert individuals and organizations

GRI Indicators on this page: G4-EN11 Godrej Interio, Sustainability Report 2017-18 47 E N V I R O N M E N T

Bio-Diversity Management Approach

Efforts taken for sustenance of the conservation initiatives For sustenance of the conservation initiatives, invests a lot of resources for creating awareness amongst internal and external stakeholders.

For employees, a visit to the mangroves is part of the induction process. Across the year, events like Nature Trails, Photography competition, Exhibitions etc. are conducted to create awareness and elicit participation Owners Managers Employees in conservation activities.

Nature Club is formed for Udayachal School children. 30 internal programs were carried out in FY 2017-18. 30 programs for internal stakeholders Nature trails, mangrove visits and photography programs are also carried out for customers, vendors, CONSERVATION INITIATIVES partners, research and academic institutes, CBOs and 188 programs for external stakeholders NGOs, Government agencies. In FY 2017-18, 188 programs were carried out for external stakeholders. Number of visitors covered through awareness programs, presentations and poster exhibitions beyond Customers Suppliers Government the fence is 9010, highest for a single year so far.

Community Banks

GRI Indicators on this page: G4-EN11 Godrej Interio, Sustainability Report 2017-18 48 E N V I R O N M E N T

Green Purchase

Godrej Interio’s sourcing practices are Efforts are made to increase the governed by Materials Policy & Green percentage of local purchase to ensure E L E M E N T S O F G R E E N S O U R C I N G I N I T I AT I V E Procurement Policy. These policies stock management and to reduce its advocate environmentally and socially Scope 3 impact due to inbound responsible purchasing to minimise transportation. GI defines local • Proximate Supplier Base environmental impacts. The Green purchase as that done within 200 km of Godrej Interio Level Strategy including indigenization Procurement Policy promotes the its manufacturing locations, the sites of • Promoting Green Business Practices concept of life cycle costing, its significant operations. • Practicing TOC For Lean avoidance of hazardous material and Supply chain low embodied energy materials. It Locally purchased • Green Certifications covers purchase of capital equipment, Others raw materials, maintenance consumables, fuels, packing material, 30% building / construction material and office consumables. • Awareness creation & 70% Supplier Level Activities Training Program GI Green Procurement Process is fine- • Cluster Initiatives tuned to meet the requirement of its • Promote 'Reduce, Reuse, Design for Environment policy. It In FY 2017-18, 70% of total material Recycle’ focuses on increasing the recycled by value was purchased locally. • Supplier Audits & content in raw material, elimination or Reviews reduction of chemicals of concern, and • EMS Certification increased use of renewable & biodegra- dable materials.

GRI Indicators on this page: G4-33, 12, EC9 Godrej Interio, Sustainability Report 2017-18 49 E N V I R O N M E N T

Green Purchase

Vendor Development In year 2015-16, GI has pro-actively included ZED To continue the excellence in green supply chain, GI GI has established the Beyond Sourcing Programme for concept, Basic Vendor Cluster and Advanced Vendor initiated SME GreenCo cluster - 2 with 4 of its suppliers. Building Supplier capability & developing relationships Cluster. Energy conservation, water conservation and The cluster was initiated with training programs by GI with suppliers; beyond the basic purchasing waste management & control parameters are added covering all parameters of GreenCo certification transactions. under “Zero Effect on Environment” in ZED Road Map followed by hand holding visits and reviews. Rationalization & Tiering of suppliers was planned under of Basic Vendor Cluster and Advanced Vendor Cluster. The cluster approach for GreenC o certification helped this programme, not only for optimization & prioritization These parameters address reduction in scrap members for collaborative negotiations for high invest- of supply base; but also for better management of generation and disposal, reduction in energy ment projects, sharing of best practices & initiatives for engagement with them by using cluster approach. consumption and use of renewable energy and greater impact. Key initiatives by SME GreenCo cluster Godrej Interio started its first cluster program in FY 11- reduction in water consumption and re-harvesting. 1 & 2 include – Rain Water Harvesting initiative by all 12. The 'Cluster Approach' is built on the principle of GI has achieved a weighted average resource intensity suppliers, Installation of Solar rooftop panels of total 'learning by sharing' with the objective of improving reduction of 6.2% in FY 2016-17 over FY 2015-16 and 147 KW capacity by 4 suppliers, Installation of biogas competi-tiveness of suppliers in an associated group 2% in FY 2017-18 over FY 2016-17. unit by 2 suppliers, Carbon sequestration by tree rather than in discrete companies. The cluster GreenCo Cluster plantation by 8 suppliers & dense plantation (Miyawaki philosophy aims at establishing systems and process In the year 2016-17, GI launched a SME GreenCo method) by 1 supplier. management at Suppliers end, enhancing their technical Cluster – 1 to set up the sustainability framework at Initiatives for resource intensity reduction implemented by GreenCo Cluster-1 members competencies and building their managerial vendor’s end. In FY 2017-18 these vendors achieved competencies. GreenCo certification from CII in GreenCo Summit 2017: Concepts and Tools used in this CII vendor Cluster Platinum: M/s Radhe Industries 38 20 28 06 42 Methodology are: 5S & 3M, Quality Plan, Continuous Gold Rating: M/s Corru Cartons Ltd. and M/s Jay Energy Water Waste Renewable Material Projects Projects Projects Energy Projects Projects Improvement Process Road Map, Lean Manufacturing Industries No. of Projects Implemented at vendor sites’ Concepts, OHS Standards & Theory of Constraints Silver Rating: M/s Carefine Woodworks Pvt. Ltd., (TOC). A dedicated Vendor Development Cell has been M/s Mech Tech Industries, M/s PM Electro-Auto Pvt. Screening of Suppliers for Environmental and formed to drive the Cluster Initiative under Beyond Ltd., M/s Wudhouse Designs Pvt. Ltd., M/s Kashish Social Parameters Sourcing Programme. Panel Works. Godrej Interio evaluates its new suppliers based on

GRI Indicators on this page: G4-EN32, 33, G4-12 Godrej Interio, Sustainability Report 2017-18 50 E N V I R O N M E N T

Green Purchase

various criteria like quality management, logistics, manufac-turing & environmental parameters. Of these, KEY CONSIDERATIONS UNDER SCC 10% score is awarded to environmental & safety parameters. Supplier Code of Conduct (SCC) People Corporate In order to assess the social responsibility aspects of Governance suppliers' company, in FY 2011, Godrej Interio had developed a survey, the Godrej Interio vendors' Social Performance Evaluation Survey which was distributed to all key suppliers. The survey was aligned with guidelines of SA8000 which is social certification standards for decent workplaces. Godrej Interio conducted SA8000 training for key management staff and for key suppliers who are a part of its vendor cluster. These trainings were administered to sensitize suppliers and employees towards labour and human rights, safe Supply Chain Environment Community working conditions, etc. Following the training, a survey was administered to check SA8000 readiness among Suppliers covered under Supplier Code of Conduct suppliers. This tool was deployed for 4 years. In June 2015, Godrej launched a Supplier Code of Conduct. The Supplier Code of Conduct (SCC) is a document No. of Suppliers << 112 112 suppliers who have who have 82.6% which covers the understanding of G&B with its signed SCC signed the SCC suppliers of goods and services. The purpose of the 17.4% contribute 82.6% of total Others 18 direct material spends SCC is to outline G&B's expectations from the registered suppliers with whom it does business. Total No. of Key Suppliers to whom the SCC was sent: 130

GRI Indicators on this page: G4-EN32, LA14, G4-56, HR10 Godrej Interio, Sustainability Report 2017-18 51 E N V I R O N M E N T

Sustainable Supplier Base CASE STUDY

Corru Cartons (I) Pvt Ltd. Benefits Achieved Resource Conservation Initiatives Ms. Corru Cartons has achieved 30% weighted Reduction Objective: To make optimum utilization average reduction in specific energy consumption, over 3 years specific water consumption and waste percentage. of specific resources by incorporating Electricity 18.25% (kWh / Ton) “Green Thinking” across the supply These efforts have enabled the vendor to get chain.  GreenCo Gold Certification in June 2017 Waste 33.70% Intervention: M/s Corru Cartons (I) Pvt Ltd. is one the key suppliers of Godrej Interio.  1st Prize in Green Manufacturing Case Study (kgs/ Ton) This company has been involved in cluster programs and has implemented various at 10th CII National Summit in Dec 2017 Water projects in the area of energy, water and waste management. The following are the  36.20% 1st Prize in Environment Kaizen at 10th CII (Ltr / Person/ Mth.) initiatives taken by the vendor. National Summit in Dec 2017.

Resource Conversation Projects Implemented Energy Water Waste “A journey of a thousand miles begins with a single step. Installation of Roof Top Solar Recharging groundwater by Rain Reduced inventory of material Power of 30 kwp, offset 37570 water harvesting. leading to reduction in wastage Team Godrej and CII always supported us to grow and units of electricity. due to handling. develop into different spheres one of which was to become Waste water released from RO an Eco-Friendly Company. We are dedicated towards Installed Biogas plant, to use reused for Gardening, Gum Tank Improved materials handling biogas for canteen purpose. & Toilet. through usage of trolley and sustainability and keep reviewing our set targets of specific pallets. resource consumption at regular intervals. Furthermore we Energy Audit conducted by ISTSL 20 Push Taps installed to save for checking efficiency. maximum water. Kaizens done on Paper Yield believe in awareness beyond the fence and as such we keep Improvements to reduce paper on doing CSR activities related to saving environment like Kaizen- Circulate the steam Celebrated World Water Day by wastage. Mr. Sandeep Agarwal pipeline surrounding to F.O Tank creating awareness among Tree plantation drive, Poster making competition, National Managing Director to keep oil hot. employees. Reduced cotton wastage by Energy Conservation Day celebration and so on. Our replacing foam to clean machine Corru Cartons journey of sustainability has still a long way to go.” 45 Tube lights Changed to CFL & parts. (I) Pvt Ltd. LEDs.

Godrej Interio, Sustainability Report 2017-18 52 Manufacturing responsibly P R O D U C T S T E W A R D S H I P

Life Cycle Approach

At Godrej Interio, Life LCA has been integrated in new Cycle Assessment is product development cycle with multiple criteria for product selection. used as a tool to evaluate New Life environmental impact and GI has conducted Life Cycle Assess- ment studies for 7 Residential, 5 assess the cradle-to- Seating, 4 Systems, 2 storage and 2 grave impacts of a Desking products. GI has conducted a In Use Materials product, and find third party review based on ISO 14044 Green Green Boards, Safe for its Life Cycle Assessment studies Certifications Coating Materials, opportunities to reduce Green Adhesives, DfE of Wish workstation, Ace & Versa GREEN environmental impact of ASSURANCE chairs. product. Life Cycle The DfE policy available on the link: Approach enables GI to http://www.godrejinterio.com/GodrejInterio/desig npolicy.aspx?id=29&menuid=2560&catid=452&su embed green consider- bcatid=574 ations through the whole Life-stage wise impact for systems Transportation Manufacturing & seating categories Rail Transport Green Glue value chain. Milk run applications, Energy Stages of Life Cycle Systems Seating Saving Initiatives, Waste (Average) (Average) GI has adopted a ‘Design for to Energy Techniques Packaging Environment’ policy which addresses Raw Material Extraction 70% 70% Flat packing, the environmental considerations of a Reduction Manufacturing 18% 27% product at the design phase itself. For of Styrofoam new products having high volume, GI Transportation 4% 2% conducts the LCA study for impact End Of Life 8% -8% assessment and reduction. For this,

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Life Cycle Approach

The following chart shows the % contribution of major 1. Use of low emitting Boards: Boards GREEN raw materials by weight. MATERIALS are manufactured using a resin adhesive. It is the level of formaldehyde in the adhesive that determines the VOC Godrej Interio has adopted a life cycle approach for 7% integrating green considerations through-out the value 8% STEEL emissions. According to International chain of its products. For furniture products, material 2% WOOD Composite Board Emission Standards (ICBES), there phase has highest environmental impacts as compared 2% FABRIC are 3 European formaldehyde classes, namely: E0, E1 and E2. Godrej Interio utilises E1 category boards which to other phases of product life. Hence, material phase 59% FOAMING CHEMICALS becomes a focus area for GI to act on and reduce 22% PACKING MATERIAL have 1/3rd emissions as compared to commercial E2 environmental impacts of products. EPOXY POWDER grade boards available in the market.

For materials, Godrej Interio has split the approach 2. Low emitting Glues: Glues though in two ways: used in miniscule quantity are a major Use of Right type of material 1) Use of right type of material source of VOCs in furniture. Hence GI Complying with ‘Design for Environment’ Policy, GI 2) Optimum usage of material. has shifted to low VOC hot melt adhesives utilizes raw materials with high recycled content, high from solvent based glues. Gluing done through recyclability or high biodegradability. These are At Godrej Interio, major raw materials are: 1) Steel, mechanized guns ensure more surface coverage per kg Steel: 10% recycled content, 98% recyclability; 2) Wood which includes particle boards, MDF and and lower curing time. This ensures lower VOC content Aluminium Extrusion: 20% recycled content, 98% wooden Ply; 3) Foaming Chemicals, 4) Packaging as well as lower VOC emissions. Material, 5) Epoxy Powder, 6) Fabric. recyclability; Particle Board: 35% recycled content, 85% recyclability. 3. Surface Coating / Powder Coating: In FY 2017-18, total raw material consumption of The sources of VOCs in furniture are particle board, Gl patronizes the use of Steel in furniture Godrej Interio was 50,314 Tons which includes glue, surface coating. Many intiatives are taken in these and all steel components need to be 6 major types as mentioned above. materials and processes to lower the overall VOC carefully treated and coated for longer life emissions of GI products. span. For surface coating, GI uses powder

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Life Cycle Approach

coating technology which is more eco-friendly in Optimum Usage of Material: Godrej Interio has adopted a five-prong approach for Raw Material conservation, terms of zero emissions in the use phase and less termed yield improvement in manufacturing parlance. Some of material conservation initiatives are as shown below. sludge in manufacturing stage. For powder coating, YIELD IMPROVEMENT GI uses lead free powders and hexavalent chrome free Reduce Design Reduce in Reuse in Use of alternate Re-optimize the process. Waste process rejection alternate products sized raw material product

4. Use of Certified and Rapidly Renewable wood: Maximum utilization Reuse of steel scrap for Coil rationalization For Green range of products, GI uses boards made of of raw material coil making C class components to reduce number of wood chips sourced from rapidly renewable tree by nesting like stiffeners, bottom frames SKUs species like Rubber wood, Eucalyptus & Poplar. The Average Annual Saving 14 Tons of steel Average Annual Saving 60 Tons of steel Average Annual Saving 120 Tons of steel chips are sourced from PEFC certified forests. Rapidly VIKHROLI renewable trees are tree species which grow to full SHIRWAL maturity within a life span of 8 to 10 years. Use of these species prevents deforestation of conserved Reduction in process Reuse of wooden scrap Re-optimizing forests. rejection by controlling strips for making the Chocolate king process parameters battens for Wish Block bed wooden components. 5. Local Purchase: Godrej Interio sources 70% of its Average Annual Saving Average Annual Saving Average Saving of 0.6 Lac SqFt. of Boards 1.3 Lac SqFt. of Boards 20.16 SqFt. of bed wood total raw material and components by value from Promote Eco-friendly manufacturing processes Promote Green Packaging and Transportation suppliers based within 200 kms of its manufacturing Following up eco friendly material with low impact At GI, special attention is given to packaging from the location. Indigenization of sofas, desking suite and manufacturing is of utmost importance. Low impact design stage . The packaging and transport related chair mechanisms were major steps taken under this manufacturing focuses on adoption of low impacting impacts are reduced by strategies like , knockdown initiative. This helped GI to reduce lead time as well as processes like powder coating, efficient material product design enabling flat packing, elimination or green-house gas emissions in inbound transportation. planning to ensure best utilization and minimum reduction of environment burdening packing material At Plant Shirwal, three new suppliers were developed wastage. Use of advanced machinery and automation thermocol and promotion of greener packing material and one supplier was relocated within 200 kms. are also helpful in getting best material utilization. like corrugated paper.

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Life Cycle Approach CASE STUDY

Safe and Responsible Using Green Technology Disposal 214.37 Project Name: Phosphate Free deployed at Vikhroli new Pretreatment 208.97 212.66 line. By implementation of zirconium At GI, Hazardous waste as defined 167.72 Conversion Coating under Hazardous Waste Handling and technology, Degreasing plus Management Rules, 2016 is handled 2014-15 2015-16 2016-17 2017-18 Phosphate tank & passivation tank are and disposed off as per provisions eliminated. In degreasing tank, bio Specific Hazardous Waste ( kg/ MVA) through authorized recyclers or waste remediated cleaners are added which management entities. The type of converts complex organic molecules hazardous waste and its contribution like oil in the tank into simple, non- total hazardous waste is shown below. hazardous substances like carbon Prashant Korde, Challenge dioxide and water. 2% Manager, 7% At Godrej Interio, pre-treatment Production process is used in powder coating Benefits 1% 8% Godrej Interio, department for surface treatment. The The project has benefited in longer 43% Shirwal conversion coating in the process solution life, stable operating involved the use of phosphating conditions, less line maintenance of 39% “Green technology is an chemicals. Phosphating chemicals nozzles and risers, reduction in encompassing term. It deals have a high eutrophication potential. process effluent generation, saving of Sludge (Semisolid, Oil Soaked Clothes/ with using science and chemical, paint sludge) Handgloves The degreasing process and 17280 & 72000 kWh units of power Oven Ash ETP Sludge technology in order to protect phosphating process leads to per year at Shirwal & Vikhroli plant Waste Chemical Used Oil the environment. The phosphate generation of effluent and sludge. respectively, saving of 238 KLitres and free conversion coating is an Given below is the trend of specific 384 KLitres of water per year was ideal example for it. The process hazardous waste of GI. The increase Intervention achieved at Shirwal and Vikhroli has helped us to reduce energy, in FY 2016-17 & FY 2017-18 is due to After successful implementation of respectively. The sludge generation water consumption and sludge the addition of Haridwar plant and Phosphate free Pre-treatment chemical has been reduced by 75% on generation” Chennai plant respectively. at Shirwal plant, this initiative was implementation of this project.

GRI Indicators on this page: G4-EN23 Godrej Interio, Sustainability Report 2017-18 57 P R O D U C T S T E W A R D S H I P

Life Cycle Approach

Value added services for customer for Extended Product Responsibility longevity of products. GI, for its institutional customers, provides value added services such as refurbishing / re-upholstering, Communication aiding right repairing, repainting, carpet cleaning, dismantling and usage of products re-layouting. We know that good things last GI offers Nano Armour, a new value added service for even longer when you take better friendly furniture in one step. In FY 2017-18, with fabric protection. Nano Armour is an innovative fabric care of them. So GI provides furni-ture care booklets concentrated efforts by Key Accounts team, 'WeCycle' protection liquid, based on Nano-technology, which with all home products and these booklets are made initiative managed to salvage approximately 16 tonnes protects almost any type of fabric, leather and suede available on the company website as well. For of material. With WeCycle, Godrej Interio completes its against stains from water, dirt and contamination whilst institution products, product demos are given post commitment to product stewardship, accepting full remaining totally invisible. It doesn't affect the installation and videos are also available on the website. responsibility for the environmental impact of all its appearance of the fabric, its ability to breathe, its colour A furniture care booklet contains the general products. instructions, product care for different raw materials and or its feel; and is easy to maintain. transportation guidelines for shifting purpose. These End of life management instructions enable customers to take better care of Considering the situation and impact of furniture in its furniture to make it even more durable. end of life phase, GI started WECYCLE, the recycling The company also maintains responsibility of the program. Godrej Interio 'WeCycle' program is a product after it has been handed over to the customer. recycling service for all its retired office furniture GI service team helps the clients in maintaining their products. The furniture is meticulously processed and furniture through an AMC and offers product life transformed into raw materials for other products. extension services like refurbishing, painting, Clients can now ensure that their retired furniture is maintenance, etc. responsibly recycled and acquire brand new eco-

GRI Indicators on this page: G4-EN28, PR3, PR4, PR5 Godrej Interio, Sustainability Report 2017-18 58 P R O D U C T S T E W A R D S H I P

Product Certifications

Godrej Interio is taking innovative steps to respond to the growing demand from Level: BIFMA e3 2014 Furniture Sustainability Standard business customers, government procurement agencies, design professional and consumers for better and greener products that meet both specific performance BIFMA Level® is a multi-attribute sustainability standard and and environmental criteria. Godrej Interio consumer research shows that a third-party certification program for the industry. It assesses third-party certification against recognized standards assures the customers about the environmental and social impact of a furniture product in product performance and its environmental accomplishment. GI views national and a built environment while simultaneously taking into account a company's processes, social actions, energy usage, international standards as a road map to stay in tune with emerging trends in the material selection, human and ecosystem health impacts. world and attain higher design, performance and sustainability goals. Listed below are Seven products of GI: WISH & HABITAT are BIFMA level 3 the key Sustainability and design related certifications pursued by GI. and WALL, ACE & VERSA range of seating products are BIFMA level 2 certified. At GI, products are designed according to ergonomic standards to suit 5th to 95th percentile Indian population. The design considers user function areas and features ACE chair are added to improve user productivity, health and comfort by minimizing fatigue. The products are tested as per BIFMA standards to evaluate the safety, durability and WISH (workstations) structural adequacy. In products, touchpoint joinery, sharp corners, direct contact of hardware, projecting edges are eliminated to avoid user injury.

UL GREENGUARD Certification

The GREENGUARD Certification Program (formerly known as GREENGUARD Indoor Air Quality Certification) gives assurance that products designed for use in indoor spaces meet strict chemical emission limits, which create healthier interiors. 62 GI VERSA chair products: 17 Greenguard Gold certified Institutional products and 45 Greenguard certified Home and Institutional products.

GRI Indicators on this page: G4-EN27, G4-PR1, PR-3, PR5 Godrej Interio, Sustainability Report 2017-18 59 P R O D U C T S T E W A R D S H I P

Product Certifications

SCS Indoor Advantage India Design Mark

SCS Indoor Advantage applies to furnishings and qualifies for the BIFMA furniture emissions standard, while SCS Indoor Advantage India Design Mark is a design standard, a symbol, which Gold certification applies to furniture plus a broader range of interior recognizes good design. India Design Mark symbolizes building materials such as paint, carpet and insulation. Gold-level excellence in form, function, quality, safety, sustainability and certification meets California Section 01350 IAQ standards for both innovation. It communicates that the product is usable, residential and commercial application. Both certifications help durable, aesthetically appealing & socially responsible. products qualify for low-emitting material credits within the LEED Till FY 2017-18, 33 products have been awarded the India rating systems. Design Mark. 20 GI products are Indoor Advantage Gold certified.

GRIHA Product Catalogue listing All these achievements make a green basket of 68 products in all, for Godrej GRIHA Product Catalogue provides information about products which meet GRIHA parameters and are recommended for use in Interio. In FY 2017-18, Good and Green 14 Seating GRIHA rated buildings. products contributed to 29.6 % of total Furniture 16 GI products are listed in the GRIHA Product Catalogue. GI sales revenue. 14 System 31 Furniture Residential GreenPro Furniture

GreenPro label guarantees that the product is environment friendly throughout its life cycle. Based on a holistic framework, the 3 "Greenness" of the product is assessed. In FY 17-18, GI became the Educational 6 Furniture Storage first furniture company to achieve GreenPro certification for 2 of its Furniture products. 2 products of GI are certified for GreenPro: WISH & REASON GI Products Certified

GRI Indicators on this page: G4-EN27, G4-PR3 Godrej Interio, Sustainability Report 2017-18 60 Creating equal opportunity and safe work spaces HUMANC O M P ARESOURCES N Y P R O F I& L ELABOUR POLICIES

Work @ Godrej Interio

Employment Policies & Benefits with the workmen through Surveys, Work Committees, Age Group No. % of total employees

Godrej Interio is an equal opportunity Central Work Committee and Safety Committee. <25 127 8

25-30 500 30 employer and seeks to support and Employment 31-40 700 42 nurture its workforce at all levels. GI recruits talent based on job specification and 41-50 231 14

GI strives to provide a conducive work environment for competency / skill requirements for the appropriate job 50> 104 6 employees to realize their potential and contribute to roles from the job market, without compromising on the Total 1662 100 selection screens. GI is an Equal Opportunity Employer the growth of the company. The strong commitment of and does not discriminate among applicants. Total Years of Experience % of total employees helps the company overcome challenging No. (Internal + External) employees situations and emerge stronger. GI recruits freshers ( PGs, Engineers, Graduates, ITIs) >0-2 yr 107 6

>2-5yrs 435 26 The company strongly believes in a culture of innova- from some of the best campuses across the country >5-10yrs 450 27 and provides them with comprehensive development tion, performance, collaboration, transparency, & open- >10-15 yrs 337 20 inputs during their trainee-ship making them fully ness. Occupational health and safety is of vital prime >15 -20 yrs 119 7 employment ready. In FY 2017-18, the company importance too. Hence these aspects reflect promin- >20 yrs 214 13 recruited 131 GET/DET/GT/MT trainees. Godrej Interio ently in the policies and strategies of the company. Total 1662 100 is also a sought-after company in job market as The company reviews and revises HR policies and indicated by the 125 lateral recruitments in FY 2017-18. people strategy on the basis of feedback received in The attrition rate for management staff is about 11% of various communication forums (Let's Talk survey, which 19% is regrettable attrition. Various employee TOTAL NO. OF Council Meetings) and on the basis of benchmark data EMPLOYEES retention initiatives like job rotation, organizational of best practices industry-wide. These are 3033 restructuring and growth within band have helped in communicated to employees through company intranet 1662 1371 containing regrettable attrition. portal, Godrej Connect. The Company strives for healthy industrial relations through regular interaction Total Management Total Staff Workmen

GRI Indicators on this page: G4-10, G4-56, G4-LA4 Godrej Interio, Sustainability Report 2017-18 62 HUMANC O M P ARESOURCES N Y P R O F I& L ELABOUR POLICIES

Work @ Godrej Interio

Human Rights RESIDENTIAL / COMMUNITY BENEFITS The code of Ethics & Business Conduct LIFESTYLE BENEFITS Principles of the Company upholds the principles of human rights and fair • Housing: Subsidized housing facility for Pragati Kendra: Mahila Manch, Senior Citizen Club at treatment. The code provides that the employees at Vikhroli Vikhroli company conducts its operations with honesty, • Recreational Activities: Club house, Playground at Vikhroli, Defined recreation areas at upcountry integrity, openness and with respect for human rights in locations in factory premises INSURANCE interest of employees • School at Vikhroli • Consumer Society at Vikhroli The company condemns child labour, forced labor and • Credit Society at Vikhroli • Mediclaim Policy or Govt. ESIC scheme as adopts a stringent review process during hiring to verify • Community Hall at Vikhroli applicable the age of the employees. The security personnel have • Contributory Death Relief Scheme been trained to observe the employees and associates • Group Insurance Scheme while entering the facilities and report any cases of AT WORK underage workers. The company regularly screens all its critical suppliers ( contributing to 80% of its spend MATERNITY BENEFITS value ) for this aspect under the vendor evaluation / • Subsidized Meals: at Vikhroli and Upcountry locations AT ALL LOCATIONS • Subsidized transportation to work: at upcountry revaluation and regular visits of company representative locations only at the supplier location. The company has a Maternity leave policy for its employees. The policy entitles female employees to MEDICAL benefits under the Maternity Benefit (amendment) Act 2017. In FY 2017-18, the company recorded 100% return rate for female employees gone on maternity • Dispensary: at Vikhroli and Shirwal location leave. The company does not provide paternity leave to • Medical support: at location as required by law male employees.

GRI Indicators on this page: G4-LA2, LA3, HR-1, HR-5 Godrej Interio, Sustainability Report 2017-18 63 HUMANC O M P ARESOURCES N Y P R O F I& L ELABOUR POLICIES

Work @ Godrej Interio

Equality of Opportunity Employment contract for the workmen is based on Respect for the individual The company is committed to promote a employee's voluntary agreement. Operations are The company understands that its security personnel work environment that is conducive to monitored and assessed periodically to prevent the risk play a very important part in creating the image of the the growth of the employee and of forced labour. The company follows the law of the company values, hence the deployment of security encourage equality of opportunity. The land and allows freedom of association for workmen, personnel at all operations is carried out following a company ensures that there is no discrimination against which is a fundamental right guaranteed by our rigorous process. The security personnel are trained any employee on grounds of race, color, religion, caste, constitution. It also allows workmen to bargain and sensitized to make sure that at no point in time gender, age, marital status, disability, nationality or any collectively for their compensation and various benefits they are violating the fundamental rights / human rights other factor under applicable laws and contemporary given to them. of any person. practices at the workplace. Recruitment, placement, promotion, transfer, compensation, training and other Fair and Equal Compensation Employee policies and practices are administered in a benefits are based on the merit and competency of the All compensations and benefits given to manner consistent with applicable laws and other individual and the business needs of the company. workmen are driven by the Wage provisions of the Code of Ethics and Business Settlement which is arrived at through a Conduct, respect for the right to privacy and the right Freedom of Association collective bargaining process involving the recognized to be heard and equal opportunity is provided in all In order to provide a workplace which is Workmen's union. matters to those eligible and decisions are based on free of discrimination and to foster a merit. As a policy, the company keeps wages of its permanent work environment where all employees and contract employees higher than the standard entry There have been no complaints and cases relating to feel comfortable and respected, the level minimum wages fixed by the State government. child labour, forced labour, involuntary labour and company has formulated the HIV/AIDS policy and the There is no gender differentiation in company wages. sexual harassment or pending cases in the reporting Prevention of Sexual Harassment at Workplace policy period. to ensure that employees are not subject to any form of harassment.

The complete policy is available on the link http://www.godrejandboyce.com/godrejandboyce/pdf/CSR_policy.pdf

GRI Indicators on this page: G4-HR-3, HR-4, HR-12, EC5 Godrej Interio, Sustainability Report 2017-18 64 HUMANC O M P ARESOURCES N Y P R O F I& L ELABOUR POLICIES

Safety @ Godrej Interio

GI in line with corporate motto of Safety Training and Development plays a major role in First makes continuous efforts to ensure 32 enhancing competencies, while creating a self 21 a safe and harmonious work conscious and alert workforce. In addition to on-going environment. Well defined policies and 5 safety training, the company has developed the 2 3 systems guide employees to remain following requisites and trains employees regularly: 0 0 0 safe and ensure safe work spaces. • Refresher–cum–Certification Program for selected 2014-15 2015-16 2016-17 2017-18 trades Procedures are defined empowering each employee to No. of accidents Reportable Non-reportable • Accelerated Learning in safety courses for line report all kinds of unsafe incidents occurring in the 13527 managers by external agencies (26 days duration) organization. 13501 12843 • Modules for Graduate Engineering Trainees, 12768 490 New recruits, Temporary workers The procedures are communicated to employees at 496 various forums and placed on intranet for reference. 487 438 To increase safety knowledge in all plants, Safety For all reported incidents appropriate action is ensured. 95% 98% 93% 95% Corners / Safety Rooms exhibiting innovative safety In recent years, instead of focus on lag indicator like practices, articles, safety kaizans, function specific first aid cases, non–reportable, reportable incidents, 2014-15 2015-16 2016-17 2017-18 Personal Protective Equipments ( PPEs) with their the same has shifted to the lead indicators like hazard Hazard Identified Near miss incidences reported usage, etc. have been set up. Further, systems like identification, near–miss reporting, site audits, etc., Hazards Closed(%) Lock Out Tag Out ( LOTO ), Clearance to work, Daily which are proactive parameters to enhance the safety Tool Box meetings are implemented to control the culture. A dedicated online system has been put in 30408 hazards at workplaces and enable a safe mindset. place to report the hazard and near miss incidents. The 27852 22381 system generates auto email notifications to all 19390 The Safety First culture is reinforced with various concerned employees for the corrective / preventive activities across the year like National Safety Day/Week actions to be taken. Speedy decision making and Celebration, Observe Fire Service Day, Environment 2014-15 2015-16 2016-17 2017-18 action are ensured with the help of this system. Day, Road Safety Week etc. Man Hours of Safety Training Actual

GRI Indicators on this page: G4-LA5, LA6 Godrej Interio, Sustainability Report 2017-18 65 HUMANC O M P ARESOURCES N Y P R O F I& L ELABOUR POLICIES

Safety @ Godrej Interio

Employee Safety Measures Safe Working Days The safety concern of the company extends beyond the boundaries of the company, a few examples of Public health and environment care are given below:

Spraying mosquito Enclosures / Dust control at repellent on stagnant Barricades for construction sites by water at ongoing excavation sprinkling water construction site

Working within Top soil after Traffic excavation is used restricted hours to Management Plan control noise for gardening

Safe Working Days

Godrej Interio Vikhroli location completed “1000 Safe Working Days”

Godrej Interio Vikhroli location completed “1000 Safe Working Days” (6.43 million safe hours) on 4th March 2018 without any reportable incident. GI has achieved this landmark for the first time in the history of Vikhroli location. Safety heroes and departments were felicitated for completion of 1000 safe working days without any reportable incident.

GRI Indicators on this page: G4-LA5, LA6 Godrej Interio, Sustainability Report 2017-18 66 TRAININGC O M P A N Y& PDEVELOPMENT R O F I L E

Growth @ Godrej Interio

Godrej Interio has been promoting opportunities to make it to the next level in the work- functional and leadership competencies in alignment men category itself. Workmen are also promoted to the with employees’ present roles and career development. leadership and performance culture next skill level based on their performance, competency This is done through deployment of a structured by driving leadership and and other criteria. framework for all categories of workforce. empowerment, accountability and Training and Development 24 ownership through SMART goals. 19 GI believes in building the capabilities of its employees 14 At GI, Performance Management Process is a tool to on a continous basis so as to make them relevant and 6 deploy the business strategy at an individual employee competitive. Training programs are organized to bridge level to facilitate achievement of Business Goals and competency gap as well as gaps between expected 2014-15 2015-16 2016-17 2017-18 Targets. It focuses on communication of clear expect- and actual performance of the employee. The capability No. of employees sponsored for Higher ation, support and guidance being provided for achiev- – building framework of the company focuses on the Educational Programs ing goals, freedom of operation, fair assessment, Details of Higher Education Programs Examples of Programs Conducted to Develop reward and recognition. Competencies of Employees Institute Band Impact/Purpose Programs to Develop The company believes in rewarding perfor-mance Strategic Initiatives VLFM Top Business Vision and leadership Competencies Mgmt. development through individual and team rewards. The Company Enhancing customer experience Customer centricity program drives performance and leadership culture by GLIM Top Mgmt. Leadership Development Expansion of U & US Design Studio Training on technical skills of IIT B Designers Enhancing in-house Design Capabilities differential variable pay and rewards based on perform- Network carpentary ance of the employee against targets. Differentiated products with Training on upholstery design, IIMs Mid Mgmt. Exposure to Management Concepts technology and new materials CAD tool usage, patent search SIBM Mid Mgmt. Exposure to Management Concepts Workmen are encouraged for upgradation to the mana- Create a culture of sustainability Greenco Certification Process, BITS – Pilani Mid Mgmt. Overall Technology Understanding gement cadre and the same is treated as promotion. It LCA software training National Mid Mgmt. Reinforcement of Safety Concepts is managed through internal selection process (ISP). Safety Council and Practices Each workman, based on his eligibility, gets ample .Fr. Agnel’s Workmen Skill Upgrade & Exposure to Concepts

GRI Indicators on this page: G4-10,11, EC5 Godrej Interio, Sustainability Report 2017-18 67 TRAININGC O M P A N Y& PDEVELOPMENT R O F I L E

Growth @ Godrej Interio

The company has a rolling calendar which captures the developmental plan on bridging the skill gaps through Training Program Attendees & Man-days: Management Staff programs for the upcoming 6 months on a continuous tools like on the job training, special training, cross Better 10519 10272 basis for the training needs identified. Keeping the functional training, exposure visits, project assignments 8137 7154 business expansion plans in mind the company is etc. whereby the capabilities of the workmen are 6014 giving special emphasis on competencies like enhanced. 3526 2353 2580 Innovation and Project Management. Customized programs are designed for making employees aware of, The workmen go through training programs related to and use of IT technology and social media platforms for Kaizen, First Aid, Fire Fighting, TPM, Hazard 2014-15 2015-16 2016-17 2017-18 analytics and gaining competitive advantage for the identification and Risk Management. There is a Training Program Attendees Training Man-days organization. comprehensive function specific training program for Training Program Attendees & Man-days: Workmen the operators and all workmen upgraded to K Band are

As a part of Career Development, Godrej Interio creates put through an induction program to help them take up 15414 12150 varied job experiences for employees through job managerial responsibility. 11512 8663 8551 rotation within and across functions, also giving 6341 1134 employees cross functional assignments. This enables While conducting its business the company follows 1957 them to meet career aspirations and helps the highest ethical standards and has gained trust of its organization in building a talent pool for identified partners, customers and community at large. The 2014-15 2015-16 2016-17 2017-18 positions. Career conversations are held annually with company's code of ethics and business conduct Training Program Attendees Training Man-days includes clauses on honesty, integrity and ethical employees as part of performance conversations. For Kaizen Management Process conduct. All senior management personnel and 97 workmen, Godrej Interio has an Orientation programme, 95 81 86 followed by detailed induction including general safety employees are expected to comply with the letter and training. spirit of the code of conduct. The code of conduct is available on the internal portal. There is a skill matrix for workmen which is mapped 2014-15 2015-16 2016-17 2017-18 and documented for each employee. There is a % Employee participation in Kaizen

GRI Indicators on this page: G4-LA9, 10, 11 Godrej Interio, Sustainability Report 2017-18 68 TRAININGC O M P A N Y& PDEVELOPMENT R O F I L E

Growth @ Godrej Interio

The workmen are governed by the Certified standing order under the Industrial Employment (Standing Order) Act 1946. There were no reported incidents of corruption for the reporting year.

The company does not have any political allegiance and has not contributed to any political party or politician Jitender Kumar Rane Arun Balkrishna during the reporting year. But the company actively Management Category Workmen Category participates in nation building activities by being Foaming & Upholstery Dept., Paintshop Dept., actively involved in various committees that decide Bhagwanpur Plant Plant 13, Vikhroli future regulations, policies and implementation plans. Total points earned: 1977 Total points earned: 372 The senior executives are active members of various Total no. of Kaizens implemented: 227 Total no. of Kaizens implemented: 36 industry bodies that participate in the development of Total no. of Kaizens horizontally deployed: 6 public policy that address issues affecting industry, Total no. of Kaizens horizontally deployed: 0 High impact Kaizen idea: Removing the cutting business, products and customers. High impact Kaizen idea: To reduce water and gluing operation of velcro completely with consumption of PT Line 2 water rinse tanks by double sided tape thereby reducing the cycle transferring water from WR tanks 3 and 4 to WR time from 57 sec. to 26 sec. and increasing the tanks 1 and 2 by providing a new transfer line. Productivity by 10 % for BEAT MID BACK Water Consumption reduced by 50%, total CHAIR. saving 624000 Ltr/year Champion Speak: “Kaizen is now a way of living Champion Speak: Through Kaizen we can enhancing ease of work and helps in improving improve things around us in whatever way we various factors like productivity, quality.” can do and I feel proud after doing kaizen for environment and saving water.

GRI Indicators on this page: G4-11 Godrej Interio, Sustainability Report 2017-18 69 DIVERSITY & INCLUSION

Diversity & Inclusion

% of Local People Employed People are GI’s greatest Linguistic Diversity at Godrej Interio assets and the company is working towards 50 persons between 6-50 persons

building a diverse Marathi Malayalam 426 86 Vikhroli 44% workforce that reflects 96% Cochin Hindi Tamil the many consumers and 468 178 Shirwal 83% communities it serves. Bengali Telugu 83% Delhi 126 74 GI defines diversity as all the unique Gujarati Bhagwanpur 89% characteristics that make up each of 107 43% Guwahati us: personality, lifestyle, thought processes, work experience, ethnicity, 60% Hyderabad Haridwar 87% race, color, religion, gender, sexual 10 persons between 1-10 persons 5 persons between 1-5 persons

orientation, marital status, age, Punjabi Urdu Sindhi Kashmiri 95% Jaipur national origin, disability, or other 30 16 9 2 Bhiwandi 60% differences. Oriya Marwadi Tulu Nepali Ahmedabad 26 9 7 1 58% 78% Kolkata GI being a pan India player focuses on Other Maithili English Bangalore 19% 21 5 3 having workforce having good Bhopal 76% 79% Lucknow representation of people from regions Assamese Bhojpuri Portuguese 18 3 1 it serves, helping the business to Konkani Kutchhi Bhubaneshwar 45% Patna understand various cultures along with 19 4 67% Chandigarh 18% the work and home space solutions Kannada Chennai 33% desired by them. 23 59% Pune

GRI Indicators on this page: G4-LA12, EC6 Godrej Interio, Sustainability Report 2017-18 70 DIVERSITY & INCLUSION

Diversity & Inclusion

Over the years with careful recruitment process, GI has There is a gradual progression to top management band endeavoured to maintain a good local employment %. with women employees being groomed for higher respo- Employee Name: The recruitment of people from other states for nsibilities in functions like HR, Communications, Richa Ranjan emerging cites like Bangalore, Pune, Chennai, helps to Sustainability and Design. Qualification- Master in Food Technology, CFTRI better understand the needs of cosmopolitan Job Role- Assistant population that is now flocking to the cities. WOMEN in different functions Manager -Product (by Nos.) Development The organization has clear policies adhering to govern- Design 18 Marketing 46 Work Experience in mental laws, ensuring fair and impartial dealing as well Godrej- 7 Months as taking care of all religious and regional sentiments. Mfg. 11 Sales 59 As one wise man said, “there is no sincerer More Women across all functions TOTAL love than the love of food” and that makes GI values the contribution which female employees 156 Accounts 6 Services 5 this Food Technologist land into Godrej bring to the business in form of consumer insights, Vending services which provides refreshing, design sensibility, dedication and enhanced thirst quenching beverages to the valued productivity, hence is working on increasing the % of Personnel 5 Others 6 customers. Working with Godrej Vending female employees across functions. In the last three Services provides me an opportunity to gain years, there has been a substantial growth in % of an insight into diversified customer needs. female employees in even male dominated functions like sales and manufacturing. People want honest, flavourful and ready to 85% drink beverages, not some show-off drink No. of Female Employees over the years 10% 5% that takes hours to prepare. And the skills FY 2015-16 FY 2016-17 FY 2017-18 mastered over the years help me to seek the

114 131 156 quick and right solutions to offer high quality beverage premixes earning trust for Godrej. In recent years, many women employees have joined mid Entry Level Mid Mgmt. Higher Mid Mgmt. management band in marketing and design function. Female employees in various bands

GRI Indicators on this page: G4-13, LA12 Godrej Interio, Sustainability Report 2017-18 71 DIVERSITY & INCLUSION

Diversity & Inclusion

Diversity of knowledge, skill sets Understanding & Recognizing the Shift in perception Employees by years of experience GI is seeking more diversity in professional qualification about D&I as well. It employs people with non – furniture specific For GI, diversity today means more than race and 6% Years of Nos. 13% qualifications like physiotherapy, environmental gender. In its new interpretation of Diversity & Inclusion, experience engineering, textile designing, software engineers, GI focuses on meeting the needs of the individual 7% 0-2 yrs 107 26% medical graduates, etc. as it helps in understanding employee, rather than a class of employees. TOTAL 2-5 yrs 435 and working on business adjacencies and emerging 20% 1662 5-10 yrs 450 10-15 yrs 337 work & lifestyle concepts like Wellness, Green, In line with the new emerging trends on this subject, 15-20 yrs 119 e-com etc. Godrej Interio is introspecting and working on cognitive 20 & more 214 diversity as well. GI’s internal survey and research 27% indicates that the perceptions of the Boomers, Gen - X and Millennials Gen - Y on the issue of Diversity are % of total employees Employees by numbers very different. Post Graduates 383 22% Employees by Generation & Age Group The Boomer and Gen-X view diversity as a Engg. Graduates 515 31% Gen Y representation of fairness and protection to all, Age <25-35 Graduates 332 20% regardless of gender, race, religion, ethnicity, or sexual Nos. 1014 61% orientation. Diploma 216 13% Gen X Technicians Whereas for Millennial Gen–Y, inclusion is the support Age 35-50 (Under Graduate ITI + 216 13% for a collaborative environment that values open Nos. 532 32% NCTVT) participation from individuals with different ideas and Grand Total 1662 Boomers perspectives that has a positive impact on business. Age 50> Nos. 116 7%

Diversity in professional qualifications % of Total Employees

GRI Indicators on this page: G4-LA12 Godrej Interio, Sustainability Report 2017-18 72 DIVERSITY & INCLUSION

Diversity & Inclusion

Building an Inclusive Environment GI believes that merely having diversity in an organiza- At Godrej Interio, Diversity is not just about each group getting their dues, it is a commitment tion is not enough; the management must learn to at all levels of the organization to demolish barriers of bias, nurture talent of all kind and leverage and nurture it too. To engage with the subst- channelize it for business benefit; thereby making the business a vehicle for social change. antial number of Gen Ys in the organization, GI leader- ship is adopting open, transparent and collaborative ways of working. At GI, people are encouraged to draw upon their unique experiences, perspectives and backgrounds to advance business goals, through effective global communication, training efforts and ‘Working with Godrej Interio health, well-being & productivity, bench-marking with the best in class. provides me an opportunity to Reena was nominated for 100

Another key approach to ensure sustainability of address the workspace related Women Achievers of India award inclusion initiatives is to establish the Connection problems across the country. I find by the Ministry of Women & Child between Innovation and D&I. GI extensively uses the the work experience very enriching Development, Government of India CFT style of working, based on the four dimensions of as I can provide my inputs to design in FY 2015-16. cognitive diversity: diverse perspectives, interpretation, Employee name: better ergonomic products and Dr. Reena Valecha heuristics ability and prediction capabilities. This app- enable wellness and fitness in the Qualification: roach is used for a range of innovation centric projects lives of a large spectrum of people.’ Occupational therapist & related to service delivery, new product / solution certified ergonomist. For her efforts & dedication to creating generation, revenue enhancement and cost reduction. Job role: healthy work spaces & educating the Representation of people of different ages, personality, Ergonomist & Wellness Coach young workforce of India, and for her experience, educational background is sought, to help Work experience in Godrej: 6.5 Years mission to improve occupational in viewing the problem / offering from different perspec- tives and arrive at well thought-through solutions.

GRI Indicators on this page: G4-LA12 Godrej Interio, Sustainability Report 2017-18 73 Contributing to healthier, better educated and happier communities C O M M U N I T Y C O N N E C T

Wellness@Work

Towards healthier workspaces 3. Prevention: Constant Communication on preventive growing importance of Ergonomics at the workplace. An initiative of Godrej Interio Workplace and steps via Wellness Tips With the changing workplace trends, longer hours at the Ergonomics Research Cell, our Wellness@Work desk and exposure to computer screens have become programme which was formed in 2009,has been a key  Assessment: The Ergonomic audit of the a way of life. The tips educate people on correct knowledge advocate in the space of workplace trends workplace includes a thorough Work-Desk Assessment ergonomic postures, simple exercises and office yoga and ergonomics. We have been advising 150 plus (WDA) including assessment of the employee and work- tips which can be life transforming. As on March 2018, clients and reaching out to more than 10 lakh end users desk interaction. The audit report includes the mailers reached directly to 3lacs + recipients and regularly with our Wellness Tips. Our team comprises of recommendation about fit of furniture to the employee the co-branded mailers reach additional 10 lac Workspace professionals, an Occupational Therapist work profile, Improvement / changes required in the employees of 30 reputed organizations in India. and Ergonomists with research and advisory experience existing set-up to improve employee productivity. spanning across corporate, government and healthcare  Correction: A self-learning e-learning module is organizations. The team focuses to continuously developed which is easy to understand and not only understand the changes in work patterns and office shares knowledge, but also assesses the understanding spaces, issues arising there of & helping them improve 'With your training, we have been able to fully of the audience. The objective of these workshops and their Ergonomic & Wellness Quotient. realize the potential of our office the e-learning module is to spread awareness about infrastructure and how small changes We have been an active proponent of the 3 step A-C-P changing office trends, correct ergonomic postures to incorporated into daily work routine can cause noticeable differences to our body and approach developed by our Workplace and Ergonomics be adopted at the workplace, office Yoganomics and mind. Many of the employees have started Research Cell: techniques to improve efficiency in offices. The topics incorporating your guidelines into daily work covered during the workshop are with special focus on 1. Assessment: Evaluating ergonomic quotient of the routines and have benefitted from improved Posture Correction, Office Exercises and Nutrition.In FY postures and workstation ergonomics.’ workspaces through Ergonomic Audit 2017-18, GI conducted 49 wellness workshops. Lynette Gable, 2. Correction: Removal of ergonomic hazards and Admin head - Sterlite Power, BKC  Prevention: A series of online weekly e-mailers, improving integration of Furniture elements via these tips provide a wealth of information regarding the interventions like Workshops & Certification Programs.

GRI Indicators on this page: G4-SO1 Godrej Interio, Sustainability Report 2017-18 75 C O M M U N I T Y C O N N E C T

Wellness@Work

WELLNESS WHITE PAPERS

GI with its inhouse expertise and reserach in Ergonomics domain has published 4 white papers: 1. Improper lighting can impact employee health 2. Health Challenges in Evolving Offices 3. Handheld Tablets: A Preventive / convenience tool or a health risk 4. Ergonomics Helps Improve Organizational Productivity 5. Keep Moving 6. 4 Classic mistakes corporates GIVE YOUR EYES make wile selecting chairs. 20 20 20 These can be downloaded from THE T-20 BREAK! MINS SECS FEET Godrej Interio website: Long hours of work on the computer www.godrejinterio.com; can cause digital eyestrain. Relax or from the link your eyes with the Triple-20 break: http://wellness.godrejinterio.com/Wh itepaper.aspx  Every 20 minutes, look away for 20 seconds and focus on With these initiatives, GI aims to something 20 feet away. keep the readers abreast of the changing ergonomic parameters, related concerns and measures to be taken by organizations to ensure healthier, happier and productive * Please refer to the Wellness note at the bottom of this page. workforce.

GRI Indicators on this page: G4-SO1 Godrej Interio, Sustainability Report 2017-18 76 C O M M U N I T Y C O N N E C T

Community Development

At Godrej Interio, business is not only towards a brighter future through skills training. Under DISHA - FST, BWW & VMT Trainings about revenues and profits, but also this program, GI aims to bridge the skill gaps mainly in furniture, furnishing industry and vending services by about keeping our land green, our providing quality training in skills like Carpentry, communities healthy and our kids furniture assembly and repairing, installation, mainte- smart. In line with this philosophy, nance and basic service. Since inception in FY 12-13, 24% of the shares of the company GI teams with the help of 4 key partners (social enterprises: Labournet, Myrada, Gram Tarang & TARA) are held in a trust that invests back in have trained over 6000+ youth in 10 states of India. GI’s environment, healthcare & education. focus is to improve the infrastructure at partner location to improve the quality of training and to develop the Since 2010, Godrej businesses are actively contributing content with value addition of industry knowledge and to social development through the Good & Green (G&G) field experience for skills like Site Supervisor, strategy - a shared value approach for CSR i.e. working Upholstery, Carpentry, Furniture Technicians and on opportunities that help further our commitment to Vending Machine Technicians. society and environment, while strengthening our business, through initiatives that would address the Employability: overall performance needs of the 'Underserved population' as well as the 1571 1573 1477 'Environmental issues'. The complete policy available on the link: 573 http://www.godrejandboyce.com/godrejandboyce/pdf/CSR_policy.pdf 1735 1737 1698 DISHA skill development program 781 Scope: Pan India 2014-15 2015-16 2016-17 2017-18 Godrej DISHA, a vocational training initiative, endeavours to direct and guide underprivileged youth No. of Persons trained Number of Persons employed

GRI Indicators on this page: G4-SO1 Godrej Interio, Sustainability Report 2017-18 77 C O M M U N I T Y C O N N E C T

Community Development

Community Development Projects Community needs identified Scope: Communities (villages) within 7 kms radius of GI plant (Palshi, Vadgoan near Shirwal, Mandavar near Bhagwanpur).

The needs of communities are ascertained with structured need assessment surveys conducted by Shirwal third party, using purposive sample methods and tools like Transact Walk and Participatory Rural Appraisal. • Employment / Livehood opportunities for Youth Based on Need Assessment Surveys, projects in • Support for Health & Sanitation areas of Education, Health & Sanitation, Environment initiatives Conservation and Livelihood Generation have been • Improving Quality of secondary taken up since FY 2013-14. Projects taken up in education communities surrounding Bhagwanpur and Shirwal • Upgradation of school infrastructure plants, during the last year, are shared alongside. • Career Guidance for youth

To maximize benefits to local communities, GI has Bhagwanpur initiated strategic tie-ups with local industrial bodies and government organizations such as NABARD and • Employment/Livelihood opportunities for women within the SKIP as well. village Every two years, a Society Perception Survey is • Upgradation of school infrastructure conducted, where feedback is sought on the overall • Employment / Livelihood opportunities for youth impact of the social projects taken up by the company. For all surveys, adequate sample size is • Improvement in health & sanitation level ensured, inputs and feedback are sought from all • Medical facilities for women & children stakeholders.

GRI Indicators on this page: G4-SO1 Godrej Interio, Sustainability Report 2017-18 78 C O M M U N I T Y C O N N E C T

Community Development SHIRWAL PROJECTS

STEM - MINI SCIENCE WASTE WATER MANAGEMENT ONE GODREJ CENTRE PROJECT PROJECT AT PALSHI

Description: STEM Learning aimed at inculcating basic Description: Waste water management project is taken Description: ‘One Godrej’ initiative comprised of concepts of Science, Technology, Engineering, up in collaboration with village Gram Panchayat. Project projects like – Career Edu-connect in collaboration with Mathematics at school level, thereby encouraging component includes creating awareness for waste ‘Fuel’, Women Empowerment through health & inclination of students / learners towards science and segregation & domestic water management, diversion sanitation in collaboration with WOTR and Agricultural technology of domestic waste water, creation of basic water scheme awareness & implementation in association Intended impact: To create equal opportunities for filtration structures, plantation along the stream & with NGO ‘Award’ to make farmers aware about all under privileged students or students from municipal institution building for project maintenance in future. current available schemes. schools. Intended impact: Secondary treatment of 5 lac litres of Intended Impact: Career guidance to students, Number of People impacted: 268 students & 3 waste water per day; Improvement in village sanitation. Livelihood generation for women, farmers to avail teachers trained Number of People impacted: 240 households government schemes. Number of People impacted: 2000 students of Class Activities completed: Installed a mini Science centre at Activities completed: Community sensitization & 10th to 12th, 250 women & 246 children, 800+ farmers Palshi having 60 models of science & maths, trained capacity building for project implemen-tation. Clearing teachers to use the mini science centre for teaching of ~60 tons of municipal waste from stream. Excavation Activities completed: Career guidance & counselling at students from 5th to 10th standard, Inauguration of for treatment structure completed. 12 schools, Formation of 14 SHGs, childcare growth mini-science centre & follow up visit to schools. monitoring by Mahila Pravartaks, conducted awareness campaign for farmers.

GRI Indicators on this page: G4-SO1 Godrej Interio, Sustainability Report 2017-18 79 C O M M U N I T Y C O N N E C T

Community Development SHIRWAL PROJECTS

Tales of Transformation “I was going to enrol my Project Name: Model School, Sundar Swacch child in a private school, but after seeing the improve- Susajjit Shala ment, I have decided to Social context: Lack of appropriate infrastructure and continue her education in hygiene facilities in over 2 lac govt. primary schools the same school.” - Parent, across India has led to exodus of students to private Palshi schools and high absenteeism in govt. schools. Maharashtra alone, has 400+ schools without basic infrastructure like clean toilets, desks & teaching aids.

Intervention: GI transformed one Zilla parishad Girls’ School into a model school by renovation covering building of new toilets, clean drinking water facility, repair and painting of the building, play area and provision of ergonomic, age appropriate furniture for classrooms and peripheral areas, a small garden and provided a computer room and digital classroom facility for improving quality of education. GI conducted HEEL project to increase awareness “There are a lot of positive amongst students for health & sanitation issues and to changes happening, even build capacity of teachers to improve the level of the students’ uniform has education. been changed. Students are feeling good about their Benefits: The project improved the enrolment rate by school. I would not like to 15% & 10% and reduced the absenteeism by around be transferred from here!” - 8% & 6% in FY 2016-17 & FY 2017-18 respectively, School Teacher, Palshi thus increasing the motivation level of teachers.

GRI Indicators on this page: G4-SO1 Godrej Interio, Sustainability Report 2017-18 80 C O M M U N I T Y C O N N E C T

Community Development BHAGWANPUR PROJECTS

“Only because of the Tales of Transformation stitching training I received Integrated Village development project – at the DISHA training Mandavar Village (Near Bhagwanpur) centre, I have today learnt Social Context: Mandavar village lacks basic amenities how to stitch. The skill has like proper drainage and clean drinking water leading to given me the confidence to hygiene related issues. Community youth want better open my new shop.” - Trainee, Bhagwanpur employment opportunities, women seek self- employment opportunities. Intervention: Godrej implemented an integrated project with three main objectives. 1) To make individuals employable in the commercial stitching & tailoring area, resulting in skilled manpower. 2) To generate awareness among students & communities around Water, Sanitation, Hygiene & Health (WASH) (awareness campaigns, health camps) 3) To streng-then Institutions & promote entrepreneurship by formation of self-help groups (SHGs) and building capacities, fostering local economic development. “Through this programme, we learnt about various water Benefits: WASH: Awareness sessions on hygiene & borne diseases, ways to treat sanitation covered 311 women & children in Mandavar & impure water and how to keep nearby villages. 2) 28 students undergoing training for ourselves & our surrounding stitching & upholstery skills at DISHA Skill Training clean. We have seen rapid decline in cases of water Centre, Bhagwanpur. 3) 57 women formed 4 Self-help borne diseases.” - groups, underwent training for book keeping, business Ambassador, Bhagwanpur idea generation and linked saving amount of Rs. 811,998 to the bank.

GRI Indicators on this page: G4-SO1 Godrej Interio, Sustainability Report 2017-18 81 C O M M U N I T Y C O N N E C T

Community Development ONGOING PROJECTS

Employee engagement in CSR activities is elicited Rs. 10.2 lacs donated by Godrej Interio employees, through various corporate level initiatives. These are: were distributed equally to four NGOs. The Republican Joy of Giving Week Club works towards promotion of Hockey in econo- mically disadvantage section of the society; Vasantha Blood Donation Drives The Joy of Giving Week (JGW) is a ‘festival of Memorial works towards early cancer detection and philanthropy’, with a week being celebrated every year cure for the poor; War Wounded Foundation works Every year on the death anniversaries of its founders, starting from 2nd October - Gandhi Jayanti - engaging towards livelihood generation for families of soldiers Mr. N. P. Godrej and Mr. B. P. Godrej, a blood donation employees through "acts of giving" - money, time, wounded/ disabled in war; NASEOH provides camp is organized wherein Godrej employees, including resources and skills. The items collected are donated to comprehensive rehabilitation support to people with Godrej Interio employees and their families, donate NGOs like Children Toy Foundation, Goonj & Umang disabilities for a meaningful life of dignity and respect. blood to the local blood banks. In FY 2017-18, 620 Foundation. Godrej Interio employees participated in the drive.

Tata Mumbai Marathon Rose Day The Earth Hour (TMM) Fund Raiser

Godrej supported four NGOs : Republican Sports Club, Every year on 22nd September, Cancer Patients Aid A WWF-India initiative, supported by Godrej, is a global War Wounded Foundation, Vasantha Memorial Trust Association (CPAA) celebrates National Cancer Rose campaign to raise awareness and inspire individual and NASOEH (National Society for Equal Opportunities Day, a day marked out to bring cheer to all cancer action towards a better environment. Every year, for for the Handicapped) through annual contributions to patients. Godrej & Boyce (Vikhroli) has been supporting one hour ‘Complete switch off lights’ is observed at Tata Mumbai Marathon formerly known as – Standard the cause of National Rose Day, since the last 17 years. Godrej plants, offices and residential colonies in Chartered Mumbai Marathon. Along with the company's Employee contribution is spent by CPAA on distributing Vikhroli. monetary donation each year, employees participating toys and utility items at various hospitals and in the marathon are encouraged to support these NGOs dharmshalas. through their own fund raising efforts. For FY 2017-18

GRI Indicators on this page: G4-SO1 Godrej Interio, Sustainability Report 2017-18 82 GRI - G4 indicators

Topic Indicators Covered Page No. Topic Indicators Covered Page No.

Godrej & Boyce G4-1, 3, 5, 7, 14, 15, 28, 29, 30, 31, 32, 34 4-6 Transport Initiatives EN-30 38-40

Godrej Interio G4-3, 5, 7, 56 8 Water Management G4-EN8, 9, 10, 22 41-44

Godrej Interio Timeline G4-13 9-10 Biodiversity G4-EN11 45-48

Products G4-4 11-15 Green Purchase G4-12, 33, 56, EC9, EN32, LA14, HR10 49-52

Network & Reach G4-6, 8 16 Life Cycle Approach G4-EN2, 23, 27, 28, PR3, 4, 5 54-58

Manufacturing Capabilities G4-6, 9 17 Product Certifications G4-EN27, PR1, 3, 5 59-60

Stakeholder Engagement G4-24, 25, 26, 27 19-20 Work@Godrej Interio G4-10, 56, LA2, 3, 4, 62-64 HR1, 3, 4, 5, 7, 12, EC5 Materiality Matrix G4-17, 18,19, 20, 21, DMA 21-26 Safety @ Interio G4-LA5, 6 65-66 Maintaining Leadership G4-EC1 27 Growth @ Godrej Interio G4-10,11, EC5, LA9 67-69 Godrej Interio by Numbers G4-4, 6, 9, EN-1 28-29 Diversity & Inclusion G4-LA12, EC6, 13 70-73 Energy Management G4-EN3, 5, 6 31-34 Wellness@Work G4-SO1 75-76 Renewable Energy G4- EN3 35 Community Development G4-SO1 77-82 Carbon Management G4-EN15, 16, 17, 18, 19, 30 36-37

This report is a sincere effort to present the real vendors, government authorities and society at large. to publish our coming Sustainability Reports on an performance of Godrej Interio as we walk the path toward annual basis. We hope this report will be of interest sustainability. The purpose of presenting this report is to In our report, wherever possible, we have mentioned the to you. To find out more about our sustainability acquire feedback and encouragement from our boundaries and limitations of our data, if any exist. The initiatives, or to send us feedback, write to us at sustainability partners, our customers, suppliers, data presented is accurate for FY 2017-2018 and we plan [email protected]

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