So The World Builds Better ACC LIMITED Sustainable Development Report 2016 Contents
1 2 3 01 - 03 04 - 21 22 - 35
Introduction Organization & Strategy Strategy & Approach 1.1 Chairman’s Message 01 2.1 Building the Nation 06 3.1 Stakeholder Engagement 24 1.2 Foreword - MD & CEO 02 2.2 Products & Services 10 3.2 Materiality & Strategy 30 2.3 Customer Excellence 12 3.3 Business Risks & Opportunities 32 2.4 Corporate Governance 14 3.4 SD Scorecard 2016 34 2.5 Compliances & other aspects 19 3.5 SD 2030 Plan 35
4 5 6 36 - 41 42 - 51 52 - 71
Disclosures & Reporting Economic Environmental 4.1 GRI Reporting 38 5.1 Economic Performance 44 6.1 Emissions 54 4.2 UN Global Compact Principles 40 5.2 Marketing Communications 47 6.2 Energy 57 4.3 CSI Dashboard 2016 41 5.3 Procurement Practices 49 6.3 Geocycle 62 6.4 Raw Materials 64 6.5 Water 66 6.6 Biodiversity 68 6.7 Waste & Effluents 70
7 8 72 - 91 92 - 102
Social Annexures 7.1 Health & Safety 74 8.1 Assurance Statement 94 7.2 People & Employment 79 8.2 Glossary 96
7.3 Human Rights 84 8.3 GRI Standards - In Accordance This report has been prepared in “Comprehensive” - Content Index 98 accordance with the GRI Standards: 7.4 Community Development Comprehensive option. & Social Responsibility 86 1.1 Chairman’s Message
ACC crossed the eight decade mark in A change of guard was announced 2016, earning for itself the distinction towards the end of the year. Mr Neeraj of becoming one of a select few Indian Akhoury took over as Managing Director companies of this vintage that have & CEO from February 4, 2017 in a remained in the same business from seamless transition in place of Mr Harish inception. Over all these years, the Badami who tendered his resignation company has renewed itself periodically as Chief Executive Officer & Managing to keep it contemporary and up to speed Director after a short tenure that was with competition. rich in contribution. 2016 turned out a mixed bag of It is a matter of pride that the company’s challenges and opportunities. On the unwavering focus on sustainable one hand, notwithstanding some bold development and good corporate reforms and reasonable overall growth, citizenship was publicly reaffirmed the economy could not energize the by way of several prestigious awards construction sector; as a result, the including that of “India’s Most We look forward company had to contend with subdued Sustainable” for the third time by the CII- sales in most of its major markets. with enthusiasm to a ITC Centre of Excellence in Sustainable renewed momentum On the up side, our cement and ready Development. That this accolade was in the economy which mixed concrete businesses recorded shared with Ambuja Cements Limited positive developments by way of makes it all the more special for the shows a healthy enhanced cost efficiency, innovative group. appetite for growth product development and insightful customer excellence initiatives. The We look forward with enthusiasm to a company’s presence in the eastern region renewed momentum in the economy was strengthened with completion of the which shows a healthy appetite for Jamul integrated project that included a growth. The construction, building new clinkering line and cement grinding materials and cement industries unit in Jamul, Chhattisgarh and a second are particularly enthused by the grinding unit in Sindri, Jharkhand. Union Budget proposals announced this February that augur well for In August last year, ACC Limited became accelerated investment in infrastructure a subsidiary of Ambuja Cements development, housing and other key Limited (ACL) following a scheme of sectors. amalgamation between the latter and Holcim (India) Private Limited, I am confident that ACC, aided by its while LafargeHolcim Ltd continued to team of dedicated employees and loyal remain the ultimate Holding Company. associates, will remain professionally In April 2017, the Boards of ACC and managed, demonstrating sound ethics ACL announced their desire to explore and persevering on the path of delivering opportunities of a potential merger of customer excellence and maximum the two companies with a view to unite value to its principal stakeholders. the strengths of both entities in order to deliver greater synergies to their combined stakeholders. Narotam Sekhsaria 1.2 Foreword
Commitment to Sustainability manufacturing sector grew at about As with our parent group LafargeHolcim, ~8.5%. However these did not serve to sustainability is an essential part of our stimulate the construction sector. The business value chain and we are deeply landmark demonetization scheme, no committed to ensure that it remains doubt a major reform, had a tapering central to our strategy and decision- impact on construction activity in the last making. In this regard we aim to achieve quarter of 2016 as a squeeze on liquidity high standards in customer excellence, limited commercial transactions. innovation, resource conservation, environment management and Cement Business In 2016 we faced a decline in total community engagement to create value cement sales by 2.7% as compared to for all stakeholders. In the 10th Sustainable 2015 following subdued demand in our Development Report, presented here, we major markets. We also saw weaker price describe the progress made in respect trends. However, we were successful in of economic, environmental and social achieving higher cost efficiency with a aspects in 2016. reduction in fuel and input costs by 10% in 2016 as compared to 2015. Freight “ We were felicitated This was a year when ACC was again expenses also came down by 3% despite singled out as being among “India’s Most an increase in rail tariffs. with the prestigious Sustainable” and felicitated with the CII-ITC Sustainability prestigious CII-ITC Sustainability Award Three of our cement plants did us proud 2016 for “Outstanding Accomplishment” in a global benchmarking exercise. Gagal Award 2016 for in recognition of its continued effort and 2, Wadi 2 and Gagal 1 cement plants “Outstanding commitment to the cause of Sustainable ranked 6th, 17th and 19th respectively in Development. This is the third time in the a detailed overview of the performance Accomplishment” last four years when we are recipients of of 136 integrated cement plants of the this award, considered to be among the worldwide LafargeHolcim group. The country’s most coveted in the field of structured analysis is based on a set of corporate sustainable development. indices grouped along three categories viz. sustainability, efficiency and cost In 2016 we formulated our SD 2030 performance. Plan outlining the path we wish to take to build and secure for ourselves During the year we augmented our a sustainable future. Aligned with the cement capacity with the commissioning LafargeHolcim 2030 Plan that supports of the Jamul integrated project, showcasing a modern state-of-the-art Dear Stakeholder, the UN “Sustainable Development Goals”, our plan comprises a set of plant with features that enable it to meet global standards. The project comprises commitments divided broadly into It is a privilege to be invited to steer an a clinkering line at Jamul in Chhattisgarh four main fields of action that address organization with such an extraordinary and grinding units in Jamul and Sindri in climate change, circular economy, water legacy and outstanding reputation. In Jharkhand. delivering the demands of this office, it is & nature and people & communities. Our 2030 Plan targets sets quantitative awe-inspiring to follow in the footsteps Concrete Gains of the many towering personalities who targets related to our direct and indirect The Ready Mixed Concrete (RMX) business have preceded me and are legends in impacts over the whole life-cycle of our continued its trend of performing well the company’s annals. These leaders products and services on which we will with an increase of 10.5% in sales by have led the company successfully, periodically monitor and report progress. volume and 9.0% in sales by value. A sharp providing it the requisite dynamism focus in tapping growth opportunities to reach for growth, profitability, Economic Performance in the infrastructure, commercial and customer excellence and greater value The Indian economy grew at around realty segments accompanied by for shareholders. I am proud to note 7.0% in 2016, among the fastest growth enhanced customer services and the that this is a company which has always rates recorded by any of the world’s promotion of value added special shown respect for the nation, its people major economies. A good monsoon after application products enabled operating and environment with a long tradition two rain-deficient years brought good EBITDA of the RMX business to rise by of planet-friendly practices. cheer for the rural economy while the 37.7% during the year.
02 Sustainable Development Report 2016 Health and Safety year 1976 when ASSOCHAM instituted This will be the company’s third such Health and safety took the top spot in our what was possibly the country’s first unit after the two pre-processing agenda during the year. Having Health ever CSR award and chose ACC to receive facilities at Wadi in Karnataka and & Safety (H&S) as an over arching value that honour. CSR became a formal Kymore in Madhya Pradesh. means we remain committed to ensure process in the company with the Village that H&S is embedded in everything Improvement Scheme introduced in In 2016, we utilized 3.90 million tonnes we do and lived by each one of us at all 1952. In 2016 the company’s community of fly ash, 2.67 million tonnes of slag, times through our conduct behaviour development programmes reached out 1.10 million tonnes of crushed rock and actions. The key focus area for to benefit over 4.23 lakh people in 202 fines, 0.32 million tonnes of alternative 2016 was implementing the Health villages across the country with projects materials, thus providing sustainable & Safety Improvement Plan (HSIP) in the broad thematic areas of Livelihood, environmental friendly services to the which contained seven well-defined Education, Health & Sanitation. nation and contributing to resource H&S objectives with ownership of each conservation. objective clearly assigned to a senior Environment Matters executive. Work is ongoing to complete We remain committed to protect the Way Forward an on-line health management system environment against the impact of We can look at the coming years that standardizes health processes across climate change through our entire with optimism. The outlook brightens all units. With H&S being of particular value chain with an aim to demonstrate as various proposals of the Union leadership in environment performance. importance in the area of logistics, Budget for 2017-2018 are implemented we have developed a Logistics Safety The company’s carbon footprint is with a thrust on the rural sector, Roadmap for 2020, which encompasses counted among the best-in-class and infrastructure development and an analysis of past incidents, current our emissions show a reduction of 30 per housing among other sectors of the initiatives and wide-ranging activity cent from the base line of 1990. economy. Enhanced investment in based risk assessments. these sectors spells expectations During the year we commissioned of accelerated building activity and People - our Ultimate Resource Hybrid Electrostatic Precipitators (ESP) at thus growth in the consumption of In the words of Mr Nani Palkhivala Jamul and upgraded Coal Mill Bag House former chairman of the company, and Cooler ESP at Gagal in 2016. Steps building materials. We will work on “people are our ultimate resource”. With were initiated towards reducing future sharpening and harnessing our core strengths in order to be agile and their deep commitment and enviable NOX emissions by ordering selective Non talent, our human resources are critical Catalytic Reduction (SNCR) systems for competitive. to the company’s success. During the Kymore and Gagal. year, we adopted a new set of core On the sustainability front, we will values introduced by the LafargeHolcim The new Zero Liquid Discharge (ZLD) redouble our efforts to pursue our group for its worldwide employees. system at Wadi and Chanda and Sewage goals as we have always done - respecting Abbreviated as CRISP, the five distinct Treatment Plants (STPs) at Lakheri health & safety as a core value, conserving values enjoin a focus on Customer, and Damodhar - will further improve nature, engaging with communities to Results, Integrity, Sustainability and our water & waste management create shared value, living our values and People. Simultaneously the Group also performance. demonstrating a business performance recommended a new internal motto that exceeds the expectations of all - called ACE or Agility, Collaboration and On the energy front, our overall total customers, employees, communities, Empowerment which now form basic Green Energy portfolio grew to 38.18 suppliers and shareholders. dimensions of a high performance million units registering an increase of culture that we want employees to 9% as compared to the previous year. In sum, I believe the near future will demonstrate in all their actions. We This was enabled by our wind farms, unfold exciting times for the cement enjoyed peaceful and amicable relations waste heat recovery (WHRS) unit and industry as well as for the company. with the workforce during the year. Power Purchase Agreements. During the year petcoke consumption was increased Community Counts to 62% from 18% in 2015. ACC was chosen from among several Neeraj Akhoury leading companies to receive the first We expect our co-processing Managing Director & CEO ever “ICSI CSR Excellence Awards 2016” infrastructure to be further strengthened instituted by The Institute of Company following the completion of a waste Secretaries of India to recognize the best pre-processing facility at Madukkarai, practices in CSR. This reminds us of the Tamil Nadu which is under execution.
Sustainable Development Report 2016 03 2.0
04 Sustainable Development Report 2016 Organization & Strategy
2.1 Building the Nation
2.2 Products & Services
2.3 Customer Excellence
2.4 Corporate Governance
2.5 Compliances & other aspects
Sustainable Development Report 2016 05 2.1 Building the Nation
Nationwide Presence Large-scale operations entail an equally widespread and competent marketing organization. The company’s footprint is spread throughout the length and breadth of the country with 17 cement plants, 50 ready mixed concrete plants, 21 sales offices, about 50 zonal sales offices, a technical campus, a learning academy, two technical training institutes and a dedicated employee band of 7800 people. Its vast distribution network comprising 10,000 dealers and 50,000 retailers is dotted all over India - in almost every city, town and village to reach out to a large customer base. In 2O16, a new clinkering plant was completed at Jamul in Chhattisgarh with grinding stations in Jamul and Sindri. The company’s operations are entirely domestic. A map on the inside back cover shows the location of our state-wise operations and offices.(GRI -102-3,4,6, 7)
Trusted Brand for over 8O years ACC is a preferred brand of cement and concrete which has set new standards of excellence in every region of the country with iconic masterpieces built with ACC cement - Mumbai’s popular promenade, Marine Drive, J. J. Flyover, the mighty Bhakra Dam, Koldam Dam project in Himachal Pradesh and high tech railways ACC has a distinct identity as a nation systems in Kolkata, Bengaluru and Delhi. builder. More structures have been It is a trusted brand of cement and raised in the country using ACC cement concrete in India for all constructions - and concrete than that of any other large and small. company. Incorporated in 1936 as The Associated Cement Companies Limited, Legacy Its vast distribution it was created out of a historic merger of ACC was closely associated with the ten cement companies belonging to four Tata Group till 1999, when they sold all network comprising leading Indian business houses of Tatas, of their shareholding - 14.45 per cent - 10,000 dealers and Killick Nixons, Khataus and FE Dinshaw. in the company to the Ambuja Cement The vision of the founding fathers Group (then Gujarat Ambuja). In 2005, 50,000 retailers is was to build a strong cement industry Gujarat Ambuja divested their holding to dotted all over India - in that would fulfill its responsibilities to Holcim Limited of Switzerland, making a developing nation. The company’s ACC a subsidiary of Holcim (India) Private almost every city, town name was abridged to the acronym ACC Limited. In a significant global merger and village to reach out Limited in 2006. ACC has had the unique signed on July 15, 2015, Holcim Limited to a large customer base distinction to celebrate its silver, gold and Lafarge S.A. came together to create and platinum anniversaries with the a new company called LafargeHolcim - a publication of a book to mark each of world leader in the building materials these historic moments. (GRI -102-1) industry. Today ACC occupies a
06 Sustainable Development Report 2016 prominent and strategic position as Portland Pozzolana and Portland Slag volumes of its annual reports, chairman one of the largest subsidiaries in the cements, which use materials that statements and house magazines that LafargeHolcim Group. (GRI -102-5) are industrial wastes and pollutants. mention the practice of planet-friendly ACC is the largest manufacturer of initiatives, namely quarry rehabilitation, Organization Blended Cements in the country and afforestation, water conservation, The organization structure is function- has recently introduced two new pollution control and utilization of based led by the Managing Director brands, ACC Suraksha and ACC High wastes. Today ACC offers effective and Chief Executive Officer assisted by Performance Cement. The company’s solutions for management of industrial, an Executive Committee comprising innovations in R&D backed by over 8O agricultural and municipal wastes major functional Heads including those years of experience have led to several through co-processing in its countrywide with responsibilities for economic, advancements in cement and concrete. spread of cement kilns. Published environmental and social aspects. It ACC is proud to have several other “firsts” reports and benchmarking studies done is broadly divided into verticals for to its credit: by reputed bodies such as the Cement Sales & Marketing, Corporate Services, Sustainability Initiative, CII-ITC Centre of Manufacturing, Human Resources, Excellence in Sustainable Development Finance and Procurement. Cement First to set up an indigenous and Centre for Science and Environment Plants and Marketing units are grouped cement plant at Chaibasa, show that ACC has one of the lowest into four regional clusters, namely North, Jharkhand carbon footprints as compared to its South, East and West. The Regional First with a Bulk Cement Terminal global peers. (GRI 102-2) Directors for Sales, Logistics, Finance and HR have a direct reporting line to First to offer Bulk cement and Sustainable Construction the respective Vertical Head who is a Ready Mixed Concrete - two value ACC leads the cause of sustainable member of the Executive Committee. additions that have accelerated construction in India. Cement House, Procurement activities are managed by the quality and pace of large the company’s 78 years old stately the India Procurement Organization. constructions all over the nation headquarters, was the first renovated First to install Pollution control building in India to win the Green Governance equipment at its Jamul plant building LEED Gold certification and The company’s Governance philosophy more than 50 years ago, much 5-Star label from the Bureau of Energy is built on strong ethical values based before it was declared mandatory Efficiency in 2009. Later two other Green on the values of ACC’s founders who to do so buildings the Central Control Room of the were reputed business houses with Chanda Plant (in 2011) and La Residency high standards of business ethics. First to support Corporate Social in Thane, a residential facility (in 2013) These rich traditions continue today. Responsibility initiatives got certified as LEED Platinum. Today The Company’s fundamental values First to set up the world’s the company’s Green Building Centres are based on integrity, respect for the largest clinkering line at Wadi in (see box) promote cost-effective and law, commitment to product quality, Karnataka and affordable construction in semi-urban customer excellence and concern for and rural India. ACC actively supports the the environment. ACC is professionally First to introduce Global LafargeHolcim Foundation to promote managed with a majority of its Directors Positioning Systems (GPS) and the world’s most significant competition being Independent Directors. Mr N S RFID technologies to modernize Sekhsaria is the Chairman of the Board logistics in cement industry. in sustainable design. of Directors and a Non-Executive and Independent Director. Mr Harish Badami, Corporate Citizenship Chief Executive Officer & Managing ACC was chosen from among several Director, was in charge of day-to-day Green Commitment leading companies to receive the first- working and operations of the Company ACC has always acted as a responsible ever ICSI-CSR Excellence Award in 2O16 till Mr Neeraj Akhoury was appointed and creative constituent of society. It instituted by The Institute of Company as Managing Director & Chief Executive was one of the first Indian companies to Secretaries of India. This speaks volumes Officer on February 4, 2017. Mr Eric Olsen demonstrate environment conservation of the company’s social volunteering served as Deputy Chairman during 2016. as a corporate objective. Evidence of this initiatives which began much before the may be seen in its Articles of Association, term corporate social responsibility was Trailblazer in its earliest greening and tree even coined. The company continuously ACC is a leader in the manufacture and planting activities at its oldest locations engages with the rural population in the promotion of Blended Cements namely, in Lakheri and Kymore and in back vicinity of its operations to improve the
Sustainable Development Report 2016 07 2.1 Building the Nation
quality of their lives in the areas of Livelihood, Education, Water, Health, and Sanitation. In 2016, ACC reached out in this way to more than 4.23 lakh inhabitants in 202 villages across the country. Noteworthy ongoing initiatives include two world-class treatment centres for patients of HIV/AIDS, three company-managed technical institutes, support to seven government-run technical schools for students from remote places, and an online educational initiative for children, Vidyasaarathi.
Green Building Centres
In this unique venture to promote affordable construction solutions, the company encourages small businesses to set up production hubs and “one-stop shops” in small towns and semi-urban clusters to make and distribute a range of building components and accessories for housing and other constructions.
ACC Green Building Centres provide opportunities to open localised businesses, generate avenues to develop micro- entrepreneurships and engage with local communities in creating livelihoods in several trades and in forging partnerships with local bodies and communities. The promoters are assisted in acquiring know-how, training, product testing facilities and product development. The products typically comprise fly ash bricks, roofing, tiles, toilet blocks and sanitation products. The supply of these building materials is rendered affordable and sustainable as they are made by local people using local processes or simple borrowed technologies that are transferred to local entrepreneurs.
The first few centres were opened in 2013 in Uttar Pradesh, Madhya Pradesh, Maharashtra, and Rajasthan. Bythe end of 2016, 22 Green Building Centres were operational with 23 under construction. Some more centres are under discussion. The footprint is expanding rapidly with local partners being added in several regions.
Typically each centre offers direct employment to about 30 persons while providing indirect livelihood and support to another 120 people. One successful centre is managed by a women’s self-help group. Besides employment, the centres have demonstrated other positive results in respect of sustainability parameters. The use of Cement Bricks and interlocking pavers in Sanitation and Rural Road projects helps conserve fertile top soil; the use of local sourced materials and the utilization of wastes serves to cut carbon emissions.
So far some 60 events and workshops have been held across the country to create awareness about this simple approach that promotes sustainability in construction by creating an eco-system for affordable housing and sanitation. Workshops with owners of red brick kilns led to six of them joining as partners. The concept has also impressed executives from LafargeHolcim’s CSR and Sustainable construction streams who have identified its potential to be replicated elsewhere in the developing world.
08 Sustainable Development Report 2016 Awards in 2016
‘First ICSI CSR Excellence Awards 13th National award for Excellence ACC featured in CII’s list of ten 2016’ instituted by The Institute of in Cost Management conferred by Sustainable Plus Platinum 2015 Company Secretaries of India in the The Institute of Cost Accountants of companies and rated “India’s Most Award Category ‘Best Corporate - India Sustainable”. Medium’ ACC awarded for logistics A full list of awards may be seen in the company’s CII-ITC Sustainability Awards 2016 for excellence in “Supply Chain website at http://www.acclimited.com/about/ Corporate Excellence - Outstanding Technology Advancement/Solution awards-and-accolades Accomplishment in category A Implementation” category at the Large Companies by the CII-ITC Manufacturing Supply Chain Awards Centre of Excellence for Sustainable 2016 Development Institute of Chartered Accountants National Institute of Industrial of India (ICAI) awarded the Silver Engineering’s ‘Lakshya Avartan - On Award to ACC for its Annual Report the Job Achiever’s Contest’ Award to 2015 ACC Concrete-Sales and Marketing
ACC is proud to be chosen from among leading companies to receive the ‘First ICSI CSR Excellence Awards 2016’ instituted by The Institute of Company Secretaries of India.
Sustainable Development Report 2016 09 2.2 Products & Services
Pozzolana Cement (PPC). Blended cements, PSC and PPC are made by substituting a part of clinker (which is limestone-based) with certain industrial by-products, namely Slag - derived from steel plants and fly ash -- a waste from thermal power stations, respectively. The significant role played by blended
cements in reducing CO2 emissions and resource conservation is well recognized globally. ACC has been in operation for more than eight decades. Its products and services ACC has also pioneered the distribution are reputed for raising mega structures of Bulk Cement in 1992 and a year and iconic landmarks across the country later in 1993 the company introduced that depict a nation in progress. Ready Mixed Concrete. ACC is among the largest suppliers of concrete in ACC has played a meaningful role in the country. These two products have building the nation, providing quality been contributing significantly to the building materials and services and construction industry - bringing in sharing its expertise - touching the lives sophisticated practices and speeding of people in every city, town and village. up large infrastructure, industrial and Its presence has been vital in raising housing projects. mega structures like dams, canals, The company promotes irrigation schemes, power plants, ports, As the government moves ahead a range of ‘Premium’ roads and railways besides enabling with plans for greater investments in cements which are urban transformation with skyscrapers, infrastructure development, Smart flyovers & bridges, airports and metro Cities and urban transformation, the offered in higher quality rail projects. company has also revved up its capability packaging, Paper bags, to provide quality building materials Laminated PP bags and Types of Cement and services to match the engineering ACC makes four types of cements used in excellence that goes into implementing Ad Star Bags general construction. ambitious projects necessary in these segments. 43 Grade Ordinary Portland Cement 53 Grade Ordinary Portland Cement Customers ACC is regarded as a trusted brand by our Portland Pozzolana Cement and largest customer segment comprising Portland Slag Cement individual home builders across India. Besides, we also cater to large projects - ACC’s range of ‘Premium’ cements industrial, infrastructure and commercial (www.acclimited.com/products/ (ICI). These customers typically purchase premium-cements), offered in superior cement directly from the company. In packaging - paper, laminated PP and Ad addition there are units that consume Star bags, assure enhanced performance cement as raw material such as concrete in respect of early strength and durability. product makers and ready mixed (GRI 102-2) concrete plants. (GRI 102-6)
Blended Cements Nationwide presence ACC has been in the forefront in the A large network of dedicated dealers cement industry to introduce and and retailers reach out to a countrywide promote Blended cements namely customer base. These channel partners Portland Slag Cement (PSC) and Portland play a critical role in providing primary
10 Sustainable Development Report 2016 customer care and service to end- the relevant statutory ones prescribed by In 2016, there was no incidence of users. Our sales personnel based in the Indian Standards. ACC offers cement non-compliance with regulations and the company’s sales units, area offices conforming to 43 Grade Ordinary voluntary codes concerning product and districts keep in regular contact Portland Cement (IS 8112-1989), and service information and labeling. with dealers and retailers to meet their 53 Grade Ordinary Portland Cement Similarly there was no instance reported specific requirements. A separate team (IS 12269-1987), Portland Slag Cement for non-compliance with regulations (ICI) manages sales and serves the (IS 455-1989) and Portland Pozzolana and voluntary codes concerning health needs of key customers who comprise Cement (IS 1489-Part 1). and safety impacts of our products and industrial, infrastructure and commercial services. (GRI 416-1) buyers. The sales team is ably assisted by Each bag of cement clearly indicates the Customer Service personnel located in statutory quality specification to which Economic Impact of Cement each office. The Customer Service (CS) the cement contained therein conforms. Cement industry is a major customer Engineers team comprises civil engineers Bags containing Special cements also of Indian Railways, road transport who provide technical assistance and highlight key product benefits in addition and coal industry. Cement plants useful information to the supply chain to the statutory information. tend to generate several multiplier of masons, contractors, architects, and engineers. We refer to two codes in the ready mixed effects both economic and social in concrete business. These are IS 456: 2000, their vicinity. Cement consumption ACC Cement and Concrete plants across Plain and Reinforced Concrete- Code of per capita is seen as an indicator of the country are capable of meeting Practice (Third Revision), (Reaffirmed economic and human development. specific needs of customers including 2005) and IS 4926: 2003, Ready-Mixed ACC continues to make valuable individual builders of small homes to the Concrete- Code of Practice (Second contributions to the national economy, complex and challenging demands of Revision), 2003. supplying quality building materials mega projects. that are essential to build the We do not manufacture any products nation’s housing and infrastructure Ready Mixed Concrete (RMX) that are either restricted or disputed. development projects. ACC set up India’s first commercial Ready Mixed Concrete (RMX) plant in Mumbai in 1994. Today it is one of the largest manufacturers of RMX in India with about 50 modern plants in major cities such as Mumbai, Bangalore, Kolkata, Chennai, Delhi, Hyderabad, Goa, Pune and Ahmedabad. Small building projects and individual home builders seeking high levels of quality assurance can now usher in the same sophistication and value addition into their construction as some of India’s mega projects using ACC RMX- at virtually no extra cost.
ACC Concrete’s range of value- added products (www.acclimited. com/products/concrete-value-added -products) caters to a gamut of requirements - from small applications to special grades for mega structures. ACC RMX is sold directly to buyers and end-users or via our trade channels.”
Quality Specifications ACC observes more stringent quality norms for manufacturing cement than
Sustainable Development Report 2016 11 2.3 Customer Excellence
Customer excellence drives profitable ACC is acknowledged as a supplier who growth. ACC is a customer centric meets high standards in quality and organization and this approach is packaging of cement and ready mixed designed to enrich customer experience concrete, exceeding base statutory and enhance customer value. We work standards and specifications. We also to ensure that our customers get the promote a range of Premium cements best value in our products and services. and value added concrete products with This customer centric approach involves superior features suitable for different ACC is a customer Superior products, Superior services and applications and local conditions. Superior logistics. centric organization Customer Service Individual Home Builders (IHB) remain and this approach is Customer Service (CS) Engineers at the largest customer segment in terms each Sales Unit engage with customers, designed to enrich of volume and profitability. A young supply chain members and Influencers to and dynamic sales force engages with customer experience impart knowledge on good construction customers on a one-to-one basis. They practices. Customer service engineers and enhance customer work with dedicated channel partners visit customer sites and attend customer value who in turn, are supported by retailer outlets for effective consumer outreach meets to provide all possible guidance at the last mile. and support. Such information is also shared through the website To provide complete focus to (www.acchelp.in) and through Institutional Customers, ACC has set up appropriate literature. To strengthen KAM (Key Account Management) team. customer service, ACC has recently They provide a single window solution launched an Engagement platform at for all cement needs across various dealer counters, called Construction Ka locations. The KAM team also works with Doctor (CKD). The company participates the company’s Ready Mixed Concrete in local exhibitions pertaining to home (RMX) business to support large buyers building and construction materials to of concrete. reach out to a large customer base.
12 Sustainable Development Report 2016 Dealer Meets and Consumer Meets It is important to support and motivate Jamul-Sindri plant expansion. ACC F2R are conducted on a regular basis. the business of our Channel Partners Foundation2Roof premium cement, was CS teams network with influential who contribute over 80% of our business launched successfully with considerable groups such as construction engineers, and serve as a strong bond between communication support in Chhattisgarh, builders, developers, promoters and the company and its end consumers. and received a notably positive response large contractors at technical training Channel partners play a key role in from our channel partners and key programmes, seminars and plant brand promotion. Hence their business stakeholders. visits. In addition, Mason, Contractor success and growth is vital to our own and Engineer Meets are conducted to achievements. To maximize brand reach among highlight safety in construction besides young and web-savvy consumers, ACC sharing technical information, product We promise to deliver cement on engaged on digital media, social media literature and the latest advances time and in the right quantity to our like Facebook, Instagram, YouTube, on mobile media and on Search (Google). in construction. Online forums like consumers. Technologies like Radio Concrete Clubs help engineers and Frequency Identification Device (RFID) Forging new ground, we made customer contractors come together. We support and Global Positioning Systems (GPS) testimonials go ‘Viral’ through the use local Engineering Chapters and technical are being harnessed to improve delivery of Whatsapp, launched mobile apps and seminars. schedules and enhance productivity. connected with end-consumers through ‘touch-interactive’ mobile innovations. Architects are as such not in direct Brand Promotion We continue to cement relationships proximity with us in the supply chain In 2016, Brand ACC created a compelling with countless customers across the as our interface with them is usually and lasting image in the minds of our country. through customers. However we also consumers. Active across mass media, be interact with them regularly in different it Television, Print, Digital & Social Media, Product Responsibility contexts such as with promotional Radio or Outdoor - ACC maintained its Cement and concrete and related raw work of LafargeHolcim Foundation for brand visibility and outreach to millions materials are generally not considered to Sustainable Construction and The Indian of households. On Television, ACC have any major safety or health hazards Concrete Journal published by ACC. These was present on all the leading News associated with them. However at the serve as useful platforms to address a channels. We participated in innovative stage of quality assurance, we try to wide range of Influencer groups. ‘in-programme’ brand integrations in ensure that there is no potential harm multiple television reality shows in key to our end consumers while they are Complaints markets across India. A hi-decibel ad handling these products. Towards this The company has an effective complaint campaign, covering top newspapers, end, awareness programmes for safe handling system that facilitates prompt radio stations, outdoor, digital & mobile- handling and usage of our products are logging, investigation, resolution and phone media, ran in Eastern India - to conducted for customers, masons and closure. In 2016, a total of 435 complaints build awareness for our prestigious new engineers to minimize harm, if any. were received from our customers (end- consumers). All complaints (amounting Table 2.3.1 to >99%) were satisfactorily resolved at the close of the year.
Effective customer relationship management (CRM) systems are in place to manage customer transactions, queries and other interactions. A selection of routine studies and dipstick surveys are conducted to understand the needs of our customers. Tools like Net Promoter Score (NPS) and the E3 Model (Economic, Emotional and Ego) help us to gauge dealer satisfaction levels, and their specific requirements.
Sustainable Development Report 2016 13 2.4 Corporate Governance
ACC’s has a rich legacy of ethical during the year with a clinkering unit Corporate Governance practices which in Jamul, Chhattisgarh and grinding were implemented before they were stations in Jamul and Sindri, Jharkhand. mandatorily prescribed. “Transparency” There were no changes in the company’s and “Accountability” the two columns operations nor in the structure of its of good governance are embedded in supply chain. Details of the shareholding the Company’s business practices pattern as at the close of the year may to ensure fair and responsible be read in the Annual Report 2016 at ACC is a professionally leadership both at the Board and at the the link http://www.acclimited.com/ Management level. This has enabled newsite/annual-report-2016/Corporate- managed Company your Company to satisfy the aspirations Governance.pdf (GRI -102-10) that functions under of its various stakeholders and earn the overall strategic the trust and goodwill of its investors, Board of Directors business partners, employees and the ACC is a professionally managed supervision of the Board communities in which it operates. Company that functions under the of Directors (GRI -102-16) overall strategic supervision of the Board of Directors. A majority of the Organization Board comprises Independent Directors, As mentioned in the opening message, including the Chairman and an ACC Limited became a subsidiary of Independent lady Director as required by Ambuja Cements Limited (ACL) in the Companies Act, 2013. The Managing August 2016 following a scheme of Director & Chief Executive Officer of amalgamation between the latter the company is the only whole-time and Holcim (India) Private Limited. executive Director. Over the years, the LafargeHolcim Ltd continued to remain company is fortunate to have eminent as the ultimate Holding Company. The persons from diverse fields as Directors Jamul integrated project was completed on its Board. (GRI -102-18)
14 Sustainable Development Report 2016 The Board of Directors is entrusted to of the Chairman. The role, functions, Committees of the Board maintain the tradition of demonstrating responsibility and accountability of the Over the long years of its existence, highest standards of Corporate Board are clearly defined. In addition the Company has developed robust Governance. The Board sets out the to its primary role of setting corporate governance structure and processes. overall corporate objectives and provides strategies and goals and monitoring Various committees are constituted by direction and independence to the corporate performance, the Board directs the Board with the requisite expertise Management to achieve these objectives and guides activities of the management to handle issues relevant to their field for value creation through sustainable towards the set goals and seeks and these are responsible for company’s profitable growth. (GRI -102-16, 26) accountability with a view to create long economic, environment and social term sustainable growth that translates performance: The ACC Board functions in a democratic itself into progress, prosperity and the Audit Committee style and plays a pivotal role in ensuring fulfillment of stakeholders’ aspirations. good governance. Members are free to It also sets standards of corporate Stakeholders’ Relationship bring up any matter for discussion at behaviour and ensures compliance with Committee Board Meetings with the permission laws and regulations. (GRI 102-16,17) Nomination and Remuneration Committee BOARD OF DIRECTORS Corporate Social Responsibility (CSR) (as on February 4, 2017) Committee
Mr. N. S. Sekhsaria Mr. Sushil Kumar Roongta Risk Management Committee Chairman Mr. Ashwin Dani Compliance Committee Mr. Eric Olsen Mr. Farrokh K. Kavarana Deputy Chairman Details of the composition of these Mr. Vijay Kumar Sharma committees, its members, minutes Mr. Neeraj Akhoury of the meetings, terms of reference Managing Director & CEO Mr. Arunkumar R Gandhi and the duties of committees, are Mr. Martin Kriegner Mrs. Falguni Nayar available in the chapter on Corporate Governance in the Annual report for Mr. Shailesh Haribhakti Mr. Christof Hässig 2016 at the following link http:// www.acclimited.com/newsite/ annual-report-2016/Corporate- Governance.pdf (GRI 102-18-24)
The policy for remuneration of directors, Key Managerial Personnel and ExCo Members is set out in Annexure ‘C’ of Annual Report (Page 66-67) which forms part of the Board’s Report and may be read at the link: http://www.acclimited. com/newsite/annual-report-2016/ Annexures-to-Directors-Report.pdf. (GRI 102-35,36,37)
Pursuant to the provisions of the Act and the SEBI Regulations, the Board has carried out the annual performance evaluation of its own performance including on aspects relating to sustainability, as well as the evaluation of the working of its Audit, Nomination & Remuneration and Compliance Committees respectively. Details are available in our Annual report, (page 93, 100) at
Sustainable Development Report 2016 15 2.4 Corporate Governance
http://www.acclimited.com/newsite/ Sustainable Development Council (SD with the interest of the Company. annual-report-2016/Corporate- Council) comprising cross-functional (GRI 102-25) Governance.pdf (GRI 102-28). representatives. A core group of this council advises it on broad issues, Internal Audit Compliance with provisions of SEBI target setting, reporting and reviews The Internal Audit (IA) function reports (Listing Obligations and Disclosure including inputs on engagements with to the Audit Committee of the Board, Requirements) Regulations, 2015, the key stakeholders. Any issues relating which helps the function to maintain Code of Business Conduct adopted to sustainable development that are its objectivity and independence. The by the company and the presence found to be substantive in nature are Internal Audit Department evaluates of distinguished personalities as informed as and when relevant to the the efficacy and adequacy of internal independent Directors on the Board Compliance Committee or at times the control system, its compliance with helps avoid conflicts of interest. Directors Board itself. operating systems and policies of are required to declare details of their the Company and accounting membership in other corporate entities Each material aspect and its related procedures at all locations of the and body corporate. These are filed processes are assigned to specific Company. Based on the report of with the Registrar of Companies and functional departments. Accountability internal audit function, process as such the information is available is further ensured by cascading tasks owners undertake corrective action in the public domain to anyone who and incorporating relevant job in their respective areas and thereby is interested. There is no incidence of descriptions, KPIs and targets into the strengthen the controls. Significant audit cross-shareholding with suppliers or any performance management system. observations and corrective actions are other stakeholders. We have not had any presented to the Audit Committee of the incidence of conflict of interest in the In 2016, apart from Group level issues Board. year under review. (GRI 102-25) such as the 2030 Plan for Sustainability and H&S priorities, the company carefully Internal Controls Risk Management tracked important issues such as those The Company has in place adequate The Board’s Risk Management Committee pertaining to Competition Law, changes internal financial controls commensurate presides over an annual process that in mining and new environmental with the size, scale and complexity of its is meant to identify, monitor and regulations, company law, economic operations. During the year such controls minimize business risks and mitigation reforms and taxation. (GRI 102-27, 31,32, were tested and no reportable material plan. It assists the Board in reviewing 33, 34) weakness in the design or operations the Business Risk Management Policy were observed. The Company has policies and assessing various kinds of risk to and procedures for ensuring the orderly which the company is exposed, including Our Vision and efficient conduct of its business, risks relating to aspects concerning To be one of the most including adherence to Company’s sustainable development. The respected companies in India; policies, the safeguarding of its assets, committee oversees risk management recognized for challenging the prevention and detection of frauds as performed by the management to conventions and delivering and errors, accuracy and completeness ensure that the process conforms to legal on our promises. of the accounting records and timely requirements and SEBI guidelines, while preparation of reliable financial also identifying business opportunities. information. (GRI 102-29, 30, 31, 32) Related Party Transactions The Board has approved a policy for Corporate Policies Sustainability Matters Related Party Transactions which is The company has well-defined policies The function of Sustainable uploaded on the Company’s website at concerning key areas of business support Development is headed by the MD http://www.acclimited.com/newsite/ management and requires employees to & CEO, who is an executive Director pdf/CG/PolicyonRPT.pdf All transactions demonstrate conduct that is in keeping of the Board. He is assisted in this with related parties were in the with the company’s vision and goals and regard by an Executive Committee ordinary course of business and on an aligned with policies of our promoter (ExCo) which includes the heads of the arm’s length pricing basis. There were group. These are reviewed from time to functions of economic, environmental also no materially significant time and revised to reflect changes in and social aspects of sustainability. The transactions with related parties during contemporary practices. The approved MD&CEO or an ExCo member chairs a the financial year which were in conflict policies are widely communicated to
16 Sustainable Development Report 2016 employees and to the external public and stakeholders. The Sustainability Policy is shown on page 21 and on our website at: http://www.acclimited. com/sustainable Policies are in place for Energy, Environment, Corporate Social Responsibility, Health & Safety, Alternative Fuels & Resources (AFR) and Quality.
Organization Structure Since April 2015, the organization structure is function-based, which has worked well and has resulted in harnessing functional expertise in driving business effectively and in addressing operational challenges swiftly and proactively. The function- based structure is led by the Managing Director and Chief Executive Officer. It is broadly divided into verticals for discuss and decide on cross functional Sales & Marketing, Corporate Services, operational matters, address various Manufacturing, Human Resources, business challenges and monitor Finance and Procurement. Cement Plants implementation of decisions taken. The and Marketing units are grouped into four ExCo meets monthly when it conducts regional clusters, namely North, South, monthly performance reviews, annual East and West. The Regional Directors planning & budgeting and deliberates for Sales, Logistics, Finance and HR have on the resolution of important business a direct reporting line to the respective issues. The Company follows Vertical Head who is a member of the Executive Committee. The Director Plant Cluster Heads and Director Plant - a policy of “Zero reports to the respective Manufacturing Cement plants have been divided into Tolerance” to bribery Cluster Head in the region. Procurement regional clusters with a cluster head activities are managed by India in place for ease of administration and corruption in any Procurement Organization executed and supervision. Each cement plant form and the Board has from five Procurement Cluster offices. and cement grinding unit is headed by a Director Plant who is responsible laid down the “Anti The other functions of Health & Safety, for operation and maintenance and Bribery & Corruption Secretarial & Compliance, Legal and day-to-day management of the plant, Directive” which forms common functions such as Techport and including local issues and compliances Geocycle India report to the MD & CEO. as applicable. The Director Plant reports an Appendix to the to the respective Manufacturing Cluster Code Executive Committee (ExCo) - The Head who in turn reports to the Chief Executive Committee supports the Manufacturing Officer. The Chief Managing Director & CEO. This Manufacturing Officer is a member of Committee operates within the the Executive Committee. framework of the strategic policies laid down by the Board and is responsible Ready Mixed Concrete - This business and accountable for overall business is led by a Chief Executive who reports deliverables. The ExCo is a platform to the MD & CEO. It is arranged into for the Committee Members to meet four different regions organized to on a regular basis to review monthly oversee plant operations and the sale of performance against set targets, concrete.
Sustainable Development Report 2016 17 2.4 Corporate Governance
Corporate Governance practices, on annual basis for relevant employees concern. Pursuant thereto, a dedicated structure and policies are described of the Company, particularly those helpline “ACC Ethics Helpline” has in detail in the company’s website at in sales and purchase functions, on been set-up which is managed by an www.acclimited.com and in the chapter various aspects of competition law and independent professional organization. on Corporate Governance on page 84 of on behavioural aspects for ensuring The Ethics Helpline can be contacted the company’s Annual Report 2016. fair competition in the marketplace. to report any suspected or confirmed E-Learning training is imparted to all incident of fraud/ misconduct: E-Mail: Code of Conduct relevant employees in addition to face- [email protected]; Online reporting: The Board of Directors has approved to-face training. Specific modules on https://integrity.lafargeholcim.com a Code of Business Conduct which is “Do’s and Dont’s” in a tender bidding applicable to the Members of the Board process have been added. In addition National Toll Free Number: 1800-209- and to all employees. The Company to the above, various processes of the 2008; Fax Number: +91(22) 66459575; follows a policy of “Zero Tolerance” to Company are subject to audits and Address: PO Box 137, Pune 411 001. bribery and corruption in any form and where required further strengthened. A high level Committee then examines the Board has laid down the “Anti Bribery the complaints and sends its report to & Corruption Directive” which forms Vigil Mechanism / Whistle Blower the Audit Committee and the Board. an Appendix to the Code. The Code has Policy been posted on the Company’s website The Company has a vigil mechanism Insider Trading www.acclimited.com. named “EthicalView Reporting Policy” Pursuant to the SEBI (Prohibition of (EVRP) to report concerns about unethical Insider Trading) Regulations, 2015, The Code lays down the standard of behaviour, actual/suspected frauds and which came into effect from May 15, conduct which is expected to be followed violation of Company’s Code of Conduct 2015, the Company has formulated by the Directors and by the employees in and/or Ethics Policy. Protected disclosures the “Code of Internal Procedures and their business dealings and in particular can be made by a whistle blower through Conduct for Regulating, Monitoring and on matters relating to integrity in the several channels. The Audit Committee Reporting of Trading by Insiders” and work place, in business practices and in of the Board oversees the functioning the “Code of Practices and Procedures dealing with stakeholders. of the EthicalView Reporting Policy. for Fair Disclosure of Unpublished Price The Company has disclosed details of Sensitive Information” (ACC Code) which The Code gives guidance through the EthicalView Reporting Policy on its allows the formulation of a trading plan examples on the expected behaviour website at http://www.acclimited.com/ subject to certain conditions. The ACC from an employee in a given situation assets/new/pdf/ethicalViewPolicy.pdf Code mandates taking of pre-clearance and the reporting structure. All the Board for dealing in the Company’s shares. Members and the Senior Management During the year, the Company reached It also prohibits the purchase or sale personnel have confirmed compliance out extensively to employees to conduct of Company’s shares by the Directors, with the Code. All Management Staff greater awareness on Fair Competition designated employees and connected were required to complete an e-learning Directive and on Anti Bribery and persons, while in possession of module in addition to the face-to-face Corruption Directive (ABCD) through unpublished price sensitive information training conducted by the Company e-learning modules and face-to-face in relation to the Company and during from time to time. training sessions, achieving a high the period when the Trading Window is level of engagement and compliance. closed. Fair Competition Directive This reflected your Company’s strong Programme commitment to “Zero tolerance” for The Company Secretary & Head Fair Competition Directive programme non-compliance in this regard and to do Compliance is responsible for earlier known as Value Creation in business with integrity. implementation of the Code. Competitive Environment (VCCE) was introduced by the Company as early as The Company has an EthicalView All Board Directors, designated 2008. The Company has been carrying Reporting Policy to deal with instances employees and connected persons have out extensive training sessions for of fraud and mismanagement, if any. affirmed compliance with the Code. creating awareness among relevant The EVR Policy ensures that strict employees on fair competitive practices. confidentiality is maintained whilst dealing with concerns and also that Under the fair competition programmes, no discrimination will be meted out training sessions are being conducted to any person for a genuinely raised
18 Sustainable Development Report 2016 2.5 Compliances & Other Aspects
Compliances Business Ethics and Fair Practices Compliance is of paramount important The company leadership team places to safeguard the invaluable corporate great emphasis on values such as reputation ACC has earned over decades integrity, transparency, fair and ethical of conducting business with integrity business practices and accountability and in a fair manner. As a responsible to stakeholders. ACC routinely calls organization, we are deeply conscious on all its management staff to study, that compliance with all applicable understand and observe the Code of laws and regulations including Business Conduct to demonstrate those pertaining to environmental, ethics and good business practices. labour, market communications, The code is framed to meet Group product liability, health & safety and standards which are often stricter than competition law matters, is mandatory local regulations. We revised the Code The company leadership and non-negotiable, besides involving of Business Conduct in 2015 and 2017, considerable financial and other risks. to further strengthen our practices. This team places great code, EthicalView Reporting Policy, and emphasis on values We have comprehensive guidelines, its well structured control systems are such as integrity, policies and codes governing ethical subjected to regular review for their conduct, fair competition and anti- effectiveness to reinforce accountability transparency, fair corruption. Our internal norms are and integrity of reporting and ensure and ethical business invariably more stringent than statutory transparency and fairness in dealing requirements. Compliance with norms with all stakeholders. practices and and regulations is monitored and accountability to reviewed in periodical meetings of top EthicalView Reporting Policy management. All operations at our The Company’s vigil mechanism named stakeholders cement plants, mines, captive power “EthicalView Reporting Policy” (EVRP) plants, the Ready Mixed Concrete reports concerns about unethical business and the organization as a whole behaviour, actual/suspected frauds and are required to meet compliance with violation of Company’s Code of Conduct all internal performance parameters and/or Ethics Policy. Protected disclosures without exception as well as relevant can be made by a whistle blower through statutory norms pertaining to several channels. The Audit Committee manufacture, packaging and labeling. of the Board oversees the functioning Accordingly all senior executives and of the EthicalView Reporting Policy. The management staff are regularly made Company has disclosed the details of aware of the requirements and latest the EthicalView Reporting Policy on its provisions of applicable laws and website http://www.acclimited.com/ regulations. (GRI 417-1) assets/new/pdf/ethicalViewPolicy.pdf
Senior management regularly reviews The FRM policy is replaced by the and monitors the status of compliance EthicalView Reporting Policy” (EVRP) and with norms and regulations. During the is overseen by the EthicalView Committee year under consideration, there was no comprising the Head Compliance & incidence of significant monetary fines Company Secretary, Head Internal Audit, or non-monetary sanctions or disputes Head Legal and a senior manager acting with regard to any laws and regulations as its Secretary. The Audit Committee of referred. No cases were brought against the Board oversees the functioning of the the company through the invocation EthicalView Committee. The reporting of any national or international dispute channels (Email, Toll Free Phone, Post mechanisms. There were no significant Box and Fax) of EthicalView Reporting orders passed by Regulators or Courts are outsourced to a Third Party Agency which would adversely impact the to maintain independence. Details of Company and its future operations. the EthicalView Reporting Policy are
Sustainable Development Report 2016 19 2.5 Compliances and Other Aspects
available on the company’s website at Donations and Political filed by the Builders’ Association of India http://www.acclimited.com/assets/ contributions for alleged violation of the provisions of new/pdf/ethicalViewPolicy.pdf Based on its stated objective of being Sections 3 and 4 of the Competition Act impartial and neutral, the company and in terms of the said Order, imposed During the year, the Company reached does not canvass or campaign for, a penalty of 0.5 times of the profit of the out extensively to employees to make donations or lend support in fund Company for the year 2009 (calculated conduct greater awareness on Fair raising to any political party. This is prorata from May 20, 2009) and for Competition Directive and on Anti also prescribed in our code of business the full year 2010. For ACC, the penalty Bribery and Corruption Directive conduct. The company only “makes amounted to ` 1147.59 crore. (ABCD) through e-learning modules charitable donations that are legal and and face-to-face training sessions with ethical under local laws and practices CCI had also passed an Order directing all levels of employees, achieving near and that are in accordance with the the Company to “cease and desist” total engagement and compliance. Community Plan of the Company.” The from indulging in any activity relating This reflected the Company’s strong policy further debars employees from to agreement, understanding or commitment to “Zero tolerance” for making any contributions to political arrangement on price, production and non-compliance and to do business with parties or individuals in order to secure supply of cement in the market. integrity. Complainants were promised political or commercial influence. strict confidentiality and a retaliation- Pursuant to an Appeal filed by the free environment. Various independent Anti-competition Company before the Competition channels available to report incidents of Appellate Tribunal (COMPAT), the said The Value Creation in Competitive violations or misconducts included the order of CCI of June 2012 was stayed, Environment (VCCE) programme was following- subject to deposit of 10% of the amount introduced in ACC as early as 2008 and of penalty. Thereafter COMPAT by its 1. Call a Toll Free Number 1800 209 since then we have organized extensive order dated December 11, 2015 set aside 2008 training sessions to create awareness CCI’s Order of June 20, 2012, remanding among employees to conduct business 2. Leaving a voice message at Toll Free the matter back to the CCI for fresh in a fair manner, upholding the interest Number 0008000410035 (from hearing and adjudication. In terms of the of consumers. With the coming of the mobile phones only) said Order, the deposit amount along LafargeHolcim group, the VCCE initiative with interest thereon was refunded 3. Send an email to acc@ethicalview. is renamed as the Fair Competition to the Company. CCI on rehearing the com Directive (FCD). arguments, by its order dated August 4. Send a letter to PO Box 137, Pune 31, 2016, once again held that the Legal Actions 411001 or directly to the Chairman cement companies and the Cement of the ACC Audit Committee at ACC’s There are two pending cases of legal Manufacturers’ Association (CMA) are office actions taken against the company guilty and in violation of the Sections for Anti-Competitive Behaviour and 3(1) read with 3(3)(a) and 3(3)(b) of the 5. Send a fax to +91 (22) 6645 9575 monopoly practices. The company has Competition Act and imposed the same 6. File an online report at presented its defence before the relevant penalty which in the case of the Company https://integrity.lafargeholcim.com authorities to explain its position in again works out to ` 1,147.59 crore. The respect of the case. Believing that we usual order for cease and desist was also In 2016, the Company received 104 have a strong case in this regard which imposed. complaints under the EthicalView is backed by the advice of our legal Reporting Policy, of which 94 were counsel, we have not made any financial Thereafter the Company approached resolved and the balance 10 complaints provisions in our books for fines and the COMPAT, which by its order dated are under various stages of investigation penalties. November 7, 2016 stayed the operation and completion. of the CCI order of August 31, 2016 Competition Commission of India subject to deposit of 10% of the penalty The ACC EthicalView Helpline is managed (CCI) amount within one month. The Company by an independent professional The Competition Commission of India accordingly deposited an amount of organization. The company is confident (CCI) had originally passed an Order ` 114.76 crore in December 2016 in the that this new feature will bring about in June 2012 against several cement form of a bank Fixed Deposit in favour of greater integrity in our business manufacturing companies, including the COMPAT on behalf of the Company. The practices, behaviours and transactions. Company, in the matter of a complaint case is now pending before the COMPAT.
20 Sustainable Development Report 2016 Anti Corruption persons, positions or functions persons have separated. Also during The company reviews and strengthens individually. The difference may lie in the year two contracts with business its internal controls from time to time the importance, size and scale of the partners were terminated due to to minimize and eliminate risks arising function such as sales, procurement and violations related to corruption of the out of bribery and corruption. We logistics. above incidents. There were no public assume that all functions are equally legal cases regarding corruption brought prone to corruption risks and do not There were 3 confirmed incidents of against the organization or its employees think it to be practical to segregate corruption cases in 2016 in which 3 during the reporting period.
Sustainable Development Report 2016 21 3.0
22 Sustainable Development Report 2016 Strategy & Approach
3.1 Stakeholder Engagement
3.2 Materiality & Strategy
3.3 Business Risks & Opportunities
3.4 SD Scorecard 2016
3.5 SD 2030 Plan
Sustainable Development Report 2016 23 3.1 Stakeholder Engagement
Open and transparent channels of analysis periodically and last exercise communications help us reach out to was conducted in 2014 where we all stakeholders and seek their valuable had performed detailed stakeholder opinion in order to respond in a timely identification, understanding and manner. mapping their interface & influence and thereafter stakeholder prioritization. In Being a leading member of the cement 2016, we undertook the validation for and concrete industry we have a pan- stakeholder prioritization wherein the India footprint, reaching out to a very outcome was similar to that of 2014. large population of stakeholders of (GRI 102-40, 42) diverse groups across the country. Nearest to us is of course our workforce A comprehensive list of our stakeholders comprising permanent employees, is given in Table 3.1.1 which shows contract and third party workers and different groups, from employees who Being a leading trade unions. The community that lives comprise the group nearest to us to in the vicinity of our plants and mines member of the future stakeholders. The groups are is important to us as are our customers. cement and concrete Each year the company touches the mapped according to their interactions industry we have a lives of lakhs of Indians who purchase and proximity to us including their our cement and concrete through the interest, impact and influence on us. pan-India footprint, company’s vast network of dealers and We acknowledge that these stakeholder reaching out to a very retailers. relationships and their needs are subject to change depending on various large population of Stakeholder Analysis factors such as those relating to the stakeholders of diverse In addition to a nationwide presence, ACC environment, in which we operate, groups across the is now part of the global LafargeHolcim technological developments, economic group and thus has an even larger and progress, changes in demography or even country diverse population of stakeholders. In structural shifts in our own organization. many cases, the diversity is so high that It then becomes necessary to manage the only similarity is the association and monitor stakeholder relationships in with ACC. We conduct stakeholder a dynamic way.
Table 3.1.1
Mapping Stakeholders High Shareholders Employees Investors Customers Influencers Channel partners Consultants/Advisors Vendors Promoters Government / Regulators Local Communities Impact and Competitors Influence on ACC Activists Mass Media Future Stakeholders Employees Families National Community Social Workers / NGOs Global Community Industry & Associations Low Interface with High and proximity to ACC
24 Sustainable Development Report 2016 Effective Engagement We engage closely with stakeholders across all functions and at different levels depending on the stakeholder group. Table 3.1.2 illustrates our basic engagement strategy while Table 3.1.3 outlines a detailed matrix describing how we approach each key stakeholder group. Communication is an important aspect of engagement using direct and indirect reporting systems. Simultaneously we seek feedback and suggestions to help make continuous improvements in the quality of our services. The aim of Sustainability reporting is to build a strong chain of accountability within the organization. Securing external assurance further helps enhance accountability.
Table 3.1.2
Engagement Strategy High Nurture Engage actively Promote Communicate Impact and Reinforce Influence on ACC Monitor Retain interest occasionally Monitor regularly Keep in Touch
Low Interface with High and proximity to ACC
Table 3.1.3 Stakeholders How we engage Frequency Key topics and Our response to group concerns concerns Employees Functional and cross-functional Daily, Weekly, Monthly, To reduce complexity in Action plans for committees, State-of-the- Quarterly, half yearly and the system. closing concerns are business addresses and written annually; based on the To improve initiatives on discussed, finalized and communications. mode of engagement. Health. implemented. “Town Hall” meetings including To improve standard Our safety management international broadcasts where operating procedures, system and processes employees can ask questions. share best safety practices, ensure that any concerns Extensive intranet training requirements, in this regard are communications including an workplace hazards. addressed effectively. employee newsletter(ACC Parivar) E.g. Company has started with employee feedback. Driver Management Center to educate drivers Intranet communication portal, on GPS, Journey risk Cultural events, Employee surveys. management and tool Employee health and safety box talks. committees, regular meetings. Toolbox talks, Trainings, Visible Personnel Commitment, Annual Satisfaction Survey.
Sustainable Development Report 2016 25 3.1 Stakeholder Engagement
Stakeholders How we engage Frequency Key topics and Our response to group concerns concerns Government/ Regular visits, Applications, As and when required. To prepare plants to com- Regular visits to address Regulators/ Local Meetings, presentation, reports ply with new environment these concerns. Authorities and networking in different regulations. Participation in different forums organized by regulatory forums organized by authorities, presentations from regulatory authorities, management presentations from management regarding new regulations, compliance to new norms, co-processing etc. Channel - Dealers Engagement with Channel Daily. The frequency of 1. Local brand building 1. Local brand building & Retailers partners at all levels that can be Sales Calls and Relation- activities activities - ACC is broadly classified as below ship building activity are 2. Timely Deliveries/ optimizing the brand 1. Sales Calls - Managed by Local a function of the com- Regular availability building activities as per mercial priorities of the commercial priorities and ACC Sales officer. Purpose - to align 3. Lower Profitability commercial goals of the company company in the respec- needs of the markets. with those of individual Channel tive markets. However Benchmarking done at a partner in terms of sales and price Dealer Meets are generally local level with the best premiums. conducted on an annual players in respective basis. The NPS survey is an areas. 2. Dealer Meets - Managed annual exercise. at a senior level. Purpose - to 2. Timely deliveries/ give a direction to a group of Regular availability - Channel partners on commercial Optimum production parameters. & logistics planning is undertaken in peak 3. Relationship building activities demand period (January - Regular activities like Festival to June) to improve meets, Picnics and Trips are cement availability. Also organized with Channel partners. technologies like RFID Purpose - to engage with Channel and GPS are deployed to partners and their families and improve delivery services thus create and nurture an and improve productivity. emotional bond with them. 3. Profitability - Concept 4. Net Promoter Score (NPS) of higher turnaround in Survey - Conducted through popular brands vs. higher tele-calling to understand their per bag margin in less satisfaction with ACC on different popular brands explained operational areas. in simple terms.
26 Sustainable Development Report 2016 Stakeholders How we engage Frequency Key topics and Our response to group concerns concerns Consumers ACC engages with consumers in Consumer calls and Consumers have no prior ACC always imparts (Trade) - Individual following formats Consumer Meets are experience with home- knowledge about good Home Builders, Direct Consumer calls - ACC conducted based on the building and therefore construction practices. Contractors Customer service engineer visits commercial priorities and their key areas of concerns The same is done the consumer building sites and prevailing brand equity are: by Customer service informs them about benefits of of ACC in the market. 1. Selection of good engineers in person at using ACC products and services. In strong brand equity contractor customer site and at markets, the frequency customer meets. This These are one on one meets. 2. Estimation of of these activities is information is also Consumer Meets - ACC invites construction costs lower. Participation in imparted through website consumers in specific localities Exhibition is done based 3. Selection of Good and literature as well. ACC for a meeting. Purpose is to on opportunities in the Cement has recently launched an educate them about ACC products market. 4. Process of Good Engagement platform at and impart knowledge on good Construction Dealer counters called, construction practices. CKD (Construction ka Exhibitions - ACC participates in Doctor). local exhibitions pertaining to home building and construction materials. Consumers We engage with this segment, Frequency of engagement Key concerns of this To bring complete focus (Institutional) on a one-to-one basis through is based on the value of segment have been on this segment, we regular sales calls. We position the customer in terms of 1. Timely supply and have KAM (Key Account itself as a solution-provider volume of cement and consistency in product Management) teams capitalizing on our experience of period of consumption. quality for the entire in place who provide 80 years of cement and concrete project. one window solution manufacture. Principles of KAM for all cement needs 2. One Window solution (Key Account Management) i.e. across locations. KAM for all cement and engaging with consumers across teams now also support concrete needs. different functions levels i.e. customers of Concrete procurement, project, quality working in synergy with and finance are being deployed ACC RMX team. selectively. Communities We engage with them through Programme based and Enhancing of livelihood, All our CSR interventions company’s CSR interventions, Daily employability and income are generally participatory volunteering initiatives, generation, Providing in nature and are community events and functions, quality education, designed to address Community Advisory Panels, and preventive health and specific key topics and Social Audit. sanitation to all sections in concerns. community. Improving community environment, sustainability and infrastructure development. Investors Annual General Meetings, the Quarterly/annually/ as Company’s financial Each query / complaint is “Stakeholders’ Relationship and when required health, growth and addressed individually. Committee” addresses grievances performance During the year, most of of investors and shareholders. We Dividend payments the complaints have been have e-mail ID to enable Members Change of address attended/resolved. and Investors to correspond with The balance complaints the Company. There is a toll free were under various stages number 1800-3002-1001 that of investigation. Members and Investors can call.
Sustainable Development Report 2016 27 3.1 Stakeholder Engagement
Stakeholders How we engage Frequency Key topics and Our response to group concerns concerns Vendors and By regular interaction either by As and when required. Registration as approved As per our established Suppliers phone, VC, e-mail or in person. vendor procurement practices Product specifications Pricing Delivery period Terms of payment Product failures User complaints Civil Society We interface with them by Meetings with Partner Enhancing of livelihood, ACC takes into account Organizations, engaging them as partners in NGOs happen on daily employability and income these suggestions and NGOs facilitating development. basis. However with other generation, Providing concerns while devising civil society organizations of quality education, CSR strategies and action engagements happens as preventive health and plans. and when required. Annual sanitation to all sections in Stakeholder Engagement community. Survey helps us engage Improving community with all stakeholders. environment sustainability and infrastructure. Waste generators Regular visits, emails, telephonic Monthly or more Delay in service to waste Provide support to conversations, Participation in generators due to long waste generators during various forums, release of case permit process. liasion with regulatory studies and articles in reputed Lack of understanding of authorities. publications, Customer events. how co-processing is the Regular interactions appropriate solution for with waste generators to promoting sustainable promote understanding of waste management in the the concept. country amongst some Participation in various waste generators specially forums for promoting small scale industries. discussions and developments on co- processing. Improve collaborations and discussions with industrial bodies such as CII etc for promotion of appreciation of co-processing concept. Trade associations Working on policy documents by Weekly or monthly or No specific concerns. NA and industrial providing inputs. annual based on mode of bodies Participating in Awards, Training engagement. and Capacity Building Programs.
Charters and Memberships and Biodiversity Initiative (IBBI) of as learning from vast data base To pursue the goal of sustainable Confederation of Indian Industry (CII). of knowledge and best practices, development, the company is also (GRI -102-12) opportunities for networking and guided by certain universally accepted partnerships, access to decision-makers charters and principles to which it is At the national level, ACC is a member and experts, better understanding of a signatory or member which include of important chambers of commerce, global and national trends, and gaining the Cement Sustainability Initiative trade and other associations. The insights into Government policies and (CSI), United Nations Global Compact company benefits from these their impact on business. This also helps (UNGC), Leaders for Nature (LfN) of the memberships in a number of ways, get access to platforms to promote International Union for Conservation through seminars hosted by the our products, services and best practices. of Nature (IUCN) and India Business respective associations, as well (GRI -102-13)
28 Sustainable Development Report 2016 The success of our business strategy is how we are able to realign and transform the organization through engagement with principal stakeholder groups. In doing so, we seek to be recognized as a leading champion of sustainable development - not only in the cement industry but on a wider domain.
Table 3.1.4 Organization Issues of interest and benefit to us National Safety Council Learning on best safety practices through newsletters and training opportunities Benchmarking through participating in Awards British Safety Council As above Confederation of Indian Industry Learning best practices and current trends. Sharing issues of common interest with industry Assistance in representing causes of Industry before State and Central Governments Useful platform in lobbying and advocacy Prestigious award competitions Federation of Indian Chambers of Commerce & Industry As above Bombay Chamber of Commerce & Industry As above Indian Merchants' Chamber As above PHDCCI, Delhi As above Council for Fair Business Practices To support the cause of fair business practices and project ACC positively The Institute of Company Secretaries of India Workshops/ seminars on Company Law and to receive important publications/journals on matters relating to Corporate laws Employers’ Federation of India Employee related issues Indian Roads Congress Platform for promoting concrete roads Indian Geological Congress Latest development in the field of Geology Federation of Indian Mineral Industries Interface between Government and mining companies. Regular feedback on recent amendments in law/policy Indian Green Buildings Council Platform for information gathering and networking with potential buyers Association of Business Communicators of India Platform for benchmarking other company publications, best practices and networking
Sustainable Development Report 2016 29 3.2 Materiality & Strategy
Materiality was last assessed in 2015- most important ones under the High 2016 in line with GRI G4 reporting importance category. This outcome is guidelines. The results of that exercise in line with the current requirement also apply to the year 2016. On a quick of compliance to new environment review we find it is also relevant thus regulations, PAT (Perform, Achieve, far in the current year 2017 as the Trade) & Renewable Purchase Obligation organization has not undergone any (RPO). Similarly issues like Health & significant changes in its business or Safety, Anti-corruption, Community constituent stakeholders. The process development; labour relations also we followed included engaging with rated as High importance category are external and internal stakeholders in line with the ambitions of the UN and the whole exercise was conducted Sustainable Development Goals (SDG). using internal resources as an internal The material aspects identified here are exercise without retaining any external aligned with those of the LafargeHolcim consultant or agency. group in terms of its SD 2030 plan which was adapted in formulating ACC’s SD Table 3.2.1 shows the key material issues 2030 plan. While in this report we have where Compliance, Emissions, Water, reported on all topics identified as being Effluents & Waste, Co-processing of material, the key materials topics have waste, Energy had been rated as the been covered in more detail. (GRI 102-47) Table 3.2.1
Materiality Matrix (ranked as priority of Aspect) High Respecting Human & Indigenous Rights Compliance Water Biodiversity Health & Safety Community Development Grievance Mechanism Emissions Products & Services Diversity & Equal Opportunity Energy Employment Practices Investment Agreements Materials Effluents & Wastes Equal Remuneration for Women Anti-corruption Labour Relations Customer Health & Safety Economic Performance Training Security Practices Market presence Co-processing of Wastes Transport Stakeholder Concern Expenses on environment Anti-competitive behaviour Customer Privacy Indirect economic impacts Public Policy Supplier assessment Marketing communications
Low Impact and Influence on ACC High
30 Sustainable Development Report 2016 Boundaries for various aspects reported in this report are as given below (GRI 102-46) Cement - a sustainable Table 3.2.2 building material
ASPECT BOUNDARIES The words cement and concrete INTERNAL EXTERNAL INTERNAL & EXTERNAL are often used interchangeably but they denote two distinctly different Materials Transport - Environment Economic Performance products. Portland Cement is the Energy Respecting Indigenous Procurement Practices most popular binding material used Rights in construction. Concrete has been Employment Practices Customer Health and Market Presence the world’s most widely used building Safety material since last century, a status Training and Education Water it is likely not to be dislodged from in the near foreseeable horizon. Diversity and Equal Biodiversity Opportunity The manufacture of cement is a Equal Remuneration for Emissions continuous energy intensive process Women and Men with its principal raw material Security Practices Effluents and Waste being limestone. Each tonne of Products and Services cement requires about 1.5 tonnes of limestone which is mined, crushed, Compliance finely powdered and burnt at very Supplier Assessment high temperatures using coal as Grievance Mechanisms a fuel in a gigantic rotating kiln. This yields clinker, an intermediate Co-processing of Waste product, which when ground with Labour/Management gypsum makes Ordinary Portland Relations Cement (OPC). When inter-ground Health and Safety with fly ash or slag, it makes blended Investment Agreements cements. Concrete is a combination of Portland cement, water and mineral Respecting Human Rights aggregates used together with certain Community Development additives and steel reinforcements Anti-corruption that give the resultant material added Public Policy physical properties. Anti-competitive Though the production of cement Behaviour is energy-intensive, it is recognized Product and Service as the most sustainable and viable Labeling building material, as compared to Customer Privacy steel, stone, glass or other materials. India’s cement industry is the world’s Note: In this reporting period we spent ` 293 crore on environment protection, though as per the latest GRI standards, Expense on environment is no longer a separate aspect or indicator. second largest and boasts the lowest carbon footprint globally. India’s cement industry is among the largest organized industrial sectors in the country that makes substantial contributions to the national economy by way of taxes, duties and royalties as well as being a large customer of sectors like railways, energy, coal and road transport.
Sustainable Development Report 2016 31 3.3 Business Risks & Opportunities
ACC has a robust Business Risk and functioning are described in the Management (BRM) process which Corporate Governance section on page systematically identifies risks and 102 of Annual Report 2016 and may be opportunities and supports the read on our website at the following link Executive Committee in strategic http://www.acclimited.com/source/ decision making. This is a rolling process new/ACC-Annual-Report-2016.pdf A Business Risk reviewed periodically at regional and corporate level. It involves mapping of all The following key business risks (GRI Management the risk elements on two parameters viz. -102-15) were identified through the Committee is in place likelihood of the event and the impact BRM model in 2016: it is expected to have on the Company’s and functions as operations and performance. The risks Fuel Risk required under SEBI that fall under high likelihood and high Cement manufacturing is an energy (Listing Obligations impact are identified as key risks for intensive process requiring large which detailed mitigation plans are quantities of thermal and electrical and Disclosure developed and integrated with the Mid- energy. Coal and Petcoke are the Requirements) Term Planning Cycle and the Audit plan. principal fuels used by the Indian cement (GRI -102-11) industry to produce thermal energy. Regulations 2015 The Company requires more than 5 A Business Risk Management Committee million tonnes of coal and Petcoke to is in place and functions as required meet the requirements of its kilns and under SEBI (Listing Obligations and captive power plants. Linkage coal has Disclosure Requirements) Regulations continued to be in short supply, leaving 2015. The Chairman of the Committee the Company to source its requirements is an Independent Director of the Board at higher prices from the domestic open and the Committee met twice during market and from imports. In recent years, 2016. Details of its terms of reference petcoke emerged as a viable substitute
32 Sustainable Development Report 2016 for coal on account of attractive prices Limestone petcoke and additives which enables it and supply. There is a likelihood that Limestone is the primary raw material to use low grade limestone and thereby the prices of both coal and petcoke required for manufacturing cement. conserve minerals and increase the life of would increase significantly in The security for its uninterrupted long- the mine. coming days. To mitigate this risk the term availability is critical, particularly in Company has already initiated steps view of changing regulations. Under the Opportunities to progressively increase the usage of new Mines and Minerals (Development We believe that nearly every risk faced by Alternative Fuels, improving fuel mix & Regulation) Amendment Act 2015 the company simultaneously offers an at certain plants, entering into firm (MMDR), leases granted before the opportunity that has a potential to create contracts for part volume and balance commencement of the Act, for captive fresh business value. The Company on spot to capture opportunities, use are extended up to a period ending routinely explores such opportunities spread out purchases throughout the on March 31, 2030, or till the completion which may be in the areas of raw year and explore long term offtake from of their renewal period, whichever is materials, their availability and sourcing, local refineries. later. Most of the Company’s limestone energy efficiency, logistics, quality and leases thereby get an extension up to product development, research-based Fair Competition March 31, 2030 by virtue of this Act. market segmentation, benchmarking The Competition law in India is still For new leases, the period of lease will best practices in manufacturing and evolving and an intensely competitive be fifty years from the date of grant. productivity improvement. Such an industry like cement is vulnerable to With the new Act, the earlier policy of approach offers a positive mindset in various interpretations of its provisions deemed renewal has been discontinued viewing situations involving risks. which expose it to significant risks and all the mining leases will henceforth that may include administrative, civil be allotted through an auction, which Apart from possible regulation, or criminal proceedings, financial has made it difficult to retain existing Climate change can potentially impact consequences such as fines and penalties leases /acquire new leases. Forest & Wild the company by necessitating fresh or loss of reputation. Life clearances are now a pre-requisite approaches to raw material, fuel and and land acquisition is becoming more energy usage; process and technology, The Company has in place a Fair challenging and expensive. To address quality and product development. Competition Directive which entails this risk, the Company plans to secure While some of these are already being compulsory adherence by identified new mining leases for its existing addressed as opportunities, we do employees. Regular training is imparted plants as well as for new expansions at not presently have a method in place to all relevant employees through different locations. Further the Company to assess the financial or revenue e-learning modules and face-to-face continues to increase consumption of implications. (GRI 201-2) sessions.
Market Actions The Indian Cement Industry is becoming intensely competitive, with the foray of new entrants and existing players expanding inorganically. This could potentially impact the sales volumes, market share and profitability. To mitigate this risk, the Company is leveraging its new capacity added in 2016 at Jamul and Sindri to increase its market share, enhance its brand equity and visibility, enlarge its product portfolio and service offerings. The Company is also exploring asset light options such as tolling and de-bottlenecking at some of its existing plants to increase volume and market share.
Sustainable Development Report 2016 33 3.4 SD Scorecard 2016
A snapshot of our performance in 2016 against targets of the Sustainable Development Roadmap we had charted for 2017 is presented here in Table 3.4.1.
Table 3.4.1
Parameters Target 2017 Status 2016
CO2 To reduce specific CO2 We have reduced specific
emissions by 35% as CO2 emissions to 545 kg
compared to 1990 CO2 /Tonne of cement in 2016 which is 32% vs 1990
Thermal Substitution Rate To achieve Thermal We have achieved 3.22% Substitution Rate of 10% of thermal substitution rate in 2016
Water To reduce specific We have reduced specific water consumption for water consumption by manufacturing of cement 24% in 2016 vs 2012 by 10% as compared to 2012
Specific Total Energy To reduce by 3% as We have reduced Specific Intensity (Metric Tonne of compared to 2013 Total Energy Intensity by Oil Equivalent (MTOE) per 6.22% as compared to Tonne of Cement) 2013.
CSR To continue to expand our Our various CSR initiatives CSR footprint impacted nearly 0.42 Focus on inclusive million people in 2016 business projects like sanitation etc.
34 Sustainable Development Report 2016 3.5 SD 2030 Plan
In 2016, after working with various of Water Access, Sanitation and stakeholders, ACC worked out a Health (WASH) pledge Sustainable Development (SD) 2030 • People & Communities - Improving plan which is aligned with the H&S performance, gender diversity, LafargeHolcim Group’s Sustainability providing low cost shelters or Strategy - The 2030 plan. ACC’s SD affordable housing, and sanitation 2030 Plan focuses on the four significant areas: Under each pillar, there are measurable • Climate - Reduction of Net specific targets and action plans which are
CO2 emissions detailed in respective chapters of this Report. • Circular Economy - Enhanced utilization of waste-derived resources The success of our business strategy • Water & Nature - Reduction of specific lies in how best we are able to align freshwater withdrawal in cement and energize the organization through operations enhancing biodiversity in engagement with principal stakeholder all operating mines; Implementation groups.
Table 3.5.1 ACC SD 2030 Plan
Note: Baseline year is 2015 unless stated otherwise WASH Pledge: Water, Sanitation and Hygiene Implementation at the Workplace, LTIFR: Lost Time Injury Frequency Rate, TIFR: Total Injury Frequency Rate
Sustainable Development Report 2016 35 4.0
36 Sustainable Development Report 2016 Disclosures & Reporting
4.1 GRI Reporting
4.2 UN Global Compact Principles
4.3 CSI Dashboard 2016
Sustainable Development Report 2016 37 4.1 GRI Reporting
This is the company’s 10th Sustainable Chapter 3.2, we conducted a detailed Development report which is a review Materiality assessment including the of its sustainability performance in prioritization of key stakeholders in line the financial year 2016 (January to with GRI G4 reporting guidelines; this December) (GRI 102-50,52). Since 2007 exercise commenced towards the end of we have published the report annually the year 2015 and continued into early with the most recent being the one 2016; hence we have taken the results reviewing the year 2015 (GRI 102-51). of that exercise to also apply in 2016. A This report is compiled on the basis of detailed account of this process and its GRI standards of the Global Reporting findings are presented in chapter 3.2 Initiative (GRI) and is in accordance with together with the materiality matrix the “Comprehensive” option. thus developed. (GRI 102-48 & 49) The company’s The company’s sustainability This report was prepared in close performance refers to all of its operations observance of the GRI principles. The sustainability namely, limestone mines, cement plants primary audience of this report is performance refers to and ready mixed concrete plants and all our stakeholders and their interests their related processes, excluding office and concerns are reflected through all of its operations buildings. We have excluded five of the materiality matrix detailed out in namely, limestone company’s subsidiary companies from chapter 3.2. Furthermore, local and mines, cement plants the ambit of this report, which together global scenario was also considered have no significant bearing on overall when shaping the content of this and ready mixed operations. These are Bulk Cement report. Every chapter and indicator is concrete plants and all Corporation (India) Limited, ACC Mineral connected to broader aspects of social, Resources Limited, Lucky Minmat economic and environmental so that their related processes Limited, National Limestone Company any reader is able to get an insight about Private Limited and Singhania Minerals the contribution towards sustainability Private Limited. (GRI 102-45) issues. Finally, this report seeks to be as comprehensive as possible, providing We have three associate companies, historic data when necessary and Alcon Cement Company Private Limited, including all material topics prioritized in Aakaash Manufacturing Company our materiality analysis. The boundaries Private Limited and Asian Concretes and for our material topics were indicated Cements Private Limited. OneIndia BSC based on an assessment of the positive Private Limited, a joint venture company or negative impacts on stakeholder with equal participation of Ambuja groups and their influence or proximity Cements Limited, provides back office to the organization. (GRI 102-46) services to ACC and Ambuja Cements in respect of their routine transactional A core in-house team comprising processes. These entities are also members of the company’s Environment excluded from the scope of this Report. & Energy Conservation Cell (EECC) and Corporate Communications Department This report does not contain any (CCD) conceived, developed and restatements of information given in drafted this report without engaging previous reports. Unlike in the previous any external consultant or advisory year, this report follows GRI standards but service provider. All information, inputs not GRI Guidelines. While both reports and data presented in this report have similar introductory chapters, the were collated and compiled by the format adopted here follows a standard core team while CCD undertook sequence with the aspect chapters developing, editing and production of arranged in the three categories of the finished report. Wherever possible, Economic, Environmental and Societal the company’s Annual Report for 2016 & Other Aspects. As explained in was used as a valuable and ready
38 Sustainable Development Report 2016 resource. Images, tables and charts are the organization. Securing external obtained from internal sources wherever assurance further helps to enhance they were readily available. As before, accountability. the report is designed by WyattPrism Communications. External assurance of the Report is provided by an independent agency M/s It is pertinent to note that the Emergent Ventures India (EVI) as per AA company’s financial reporting has been 1000 & ISAE 3000 assurance standard severally recognized for excellence in and their Assurance Statement is a presentation, disclosures and conformity part of this report. The company has no with statutory requirements. This other relationship with the assurance report has been prepared to uphold provider which is retained on the basis this tradition of providing information of the company’s standard procurement to stakeholders that is reader-friendly, practices for selecting vendors based on reliable, transparent and of value to the commercial and technical evaluation. shareholder. The assurance is itself conducted in a structured manner involving interactions Even though sustainability with a cross-section of functional communication and reporting in the executives. country is still somewhat voluntary in nature, the company’s top management The complete GRI Content Index is has felt it necessary to incorporate attached as Annexure 8.3 at the end of external assurance in the process with the report the intent to ensure that the information we report is credible, transparent, Any queries about this Report or reliable and of value to stakeholders. The about the company’s sustainability aim of Sustainability reporting is to build agenda may be sent by email to a strong chain of accountability within [email protected]
For the third time in the last four years, the Company received India’s most prestigious CII-ITC Sustainability Award 2016 for “Outstanding Accomplishment” in recognition of its continuous commitment to the cause.
Sustainable Development Report 2016 39 4.2 UN Global Compact Principles
Since 2006, ACC is a signatory to United S. No. Principle Chapter Nations Global Compact and thus we make public disclosure on adherence to Human Rights UNGC principles. The table below lists the Businesses should support and respect the protection of ten principles of the UNGC and indicates 1 7.3 Human Rights the relevant chapter of this report where Internationally proclaimed human the organization’s activity with respect rights; and Make sure that they are not complicit to each principle is addressed. To that 2 7.3 Human Rights extent, this table and the report also in human rights abuses serve as a Communication on Progress Labour (COP) required to be disclosed by Business should uphold the freedom signatories of the UNGC. of association and the effective 3 recognition of the right to collective bargaining; The elimination of all forms of forced 4 and compulsory labour; 7.3 Human Rights 7.2 People & Employment The effective abolition of child 5 labour; and The elimination of discrimination 6 in respect of employment and occupation Environment
Businesses should support a 3.3 Business Risks & 7 precautionary approach to Opportunities environmental challenges; 6.1 Emissions Undertake initiatives to promote 6.2 Energy 8 greater environmental responsibility; 6.3 Geocycle and 6.4 Raw Materials Encourage the development and 6.5 Water 9 diffusion of environmentally friendly 6.6 Biodiversity technologies 6.7 Waste & Effluents Anti-Corruption Businesses should work against 2.5 Compliances and 10 corruption in all its forms, including other aspects extortion and bribery
40 Sustainable Development Report 2016 4.3 CSI - Dashboard 2016
As active members of the Cement Sustainability Initiative, we report on our sustainability performance in terms of key parameters in a standard CSI format on an annual basis.
Emission Reduction Units 2016 2015 2014 gm / Tonne of Clinker 1966.91 1544.79 1663.91 1 NOX Tonnes 29880.65 23883.5 25304.29 gm / Tonne of Clinker 128.74 175.66 196.71 2 SO2 Tonnes 1955.72 2714.92 2991.49 gm / Tonne of Clinker 41.50 36.58 41.66 3 Dust Tonnes 630.52 565.53 633.59 Coverage rate continuous measurement: (%) 4 clinker produced with continuous monitoring % 91.54 97.8 97.72 of main pollutants Dust, NOX, SOX Employee Health and Safety Units 2016 2015 2014 5 Number of fatalities (directly employed) Number 0 0 1 Number of fatalities per 10,000 (directly 6 Number 0 0 0.049 employed) Number of Lost Time Injuries (directly 7 Number 16 19 11 employed) 8 Total number of Lost Time Injuries Number 47 63 9 Lost Time Injuries (LTIs) per million man-hours Number 0.9 1.0 0.5
CO2 and Climate Protection Units 2016 2015 2014
10 Total CO2 Emissions - Gross Tonnes 12737840 12978374 12801547
11 Total CO2 Emissions - Net Tonnes 12628887 12885699 12744801 Specific CO Emissions - gross (kg/ tonne 12 2 kg/ t cem. Mat 551 556 543 cementitious material) Specific CO Emissions - net (kg/ tonne 13 2 kg/ t cem. Mat 547 552 541 cementitious material) Local Impacts Units 2016 2015 2014 14 % of sites with Quarry Rehabilitation Plan % 100% 100% 100% 15 % of sites with Community Engagement Plan % 100% 100% 100% Number of Active Sites where Biodiversity 16 Number 11 11 11 issues are addressed Number of Active Sites within, containing or 17 adjacent to areas designated for their high Number Nil Nil Nil biodiversity areas Water Units 2016 2015 2014 Surface Water (Mio M3) 5.44 5.37 6.15 Harvested Rainwater (Mio M3) 6.86 8.01 8.46 18 Total water withdrawal by source Municipal Water (Mio M3) 0.07 0.07 0.043 Ground Water (Mio M3) 1.99 1.23 1.16 19 Total water withdrawal consumption Mio M3 14.38 14.69 15.813 20 Percentage of sites with water recycling % 88.24 88.24 82.35
Sustainable Development Report 2016 41 5.0
42 Sustainable Development Report 2016 Economic
5.1 Economic Performance
5.2 Marketing Communications
5.3 Procurement Practices
Sustainable Development Report 2016 43 5.1 Economic Performance
Despite 2016 being a challenging year, Table 5.1.1 the company was able to register higher profit before tax up at ` 809 crores as NET SALES, OPERATING EBITDA & OPERATING EBITDA MARGIN compared to ` 784 crores in the previous 14000 40 year. The highlight of the year was strong 12000 11481 11433 35 cost saving measures, driven by fuel 11130 10889 10936 30 flexibility and raw material optimization; 10000 as a result operating cost per tonne 25 8000 20 were lower by 1%. Consolidated income, 20 ` Crore 6000 15 comprising Revenue from Operations 13 13 13 15 (Net) and other income, for the year 4000 10 2196
was ` 11,274.75 crore, 5.39% lower as Op. EBITDA Margin (%) 2000 1629 1507 1537 1417 5 compared to ` 11,916.94 crore in 2015. 0 More performance highlights are shared 0 2012 2013 2014 2015 2016 in graphs and tables in this chapter. N e t S a l e s Op. EBITDA Op. EBITDA Margin (GRI 201-4 )
Consolidated Financial Statements comprise the financial statements of Table 5.1.2 ACC, its subsidiaries, associates and joint venture. (GRI 102-45) CEMENT OPERATING EBITDA & OPERATING EBITDA MARGIN
Maintaining a tradition of financial 2500 25 excellence, the Company’s Annual Report 2194 20.7 20 2015 won the highest award distributed 2000 last year for excellence in Financial 15.6 13.6 13.9 13.3 15 Reporting from the Institute of Chartered 1609 1500 1473 1483 1342 Accountants in India. The Report was ` Crore 10 also adjudged Second Runner-Up (Joint) 1000 in the Manufacturing Sector as recipient 5 Op. EBITDA Margin (%) of the Best Presented Annual Report Awards 2015 by South Asian Federation 500 0 of Accountants (SAFA). 2012 2013 2014 2015 2016 Op. EBITDA Op. EBITDA Margin Financial assistance In 2016, the company received total financial incentives and subsidies amounting to ` 65.89 crores against Table 5.1.3 ` 214.54 crores in 2015 and ` 96.92 READY MIXED CONCRETE OPERATING EBITDA & OPERATING EBITDA MARGIN crores in 2014 (refer pages 179 of the company’s Annual Report 2016 at http:// 80 74.77 8 www.acclimited.com/newsite/annual- 70 7.1 7 report-2016/Notices-to-Financial- 60 5.6 Statements.pdf). (GRI 201-4) 6 50 54.29 4.5 5 40 FINANCIAL HIGHLIGHTS 34.12 4
` Crore 30 3.0 3 Financial highlights appear in pages 20 19.61 13-18 of Annual Report 2016 at www. 10 2 2.12 acclimited.com/newsite/annual- Op. EBITDA Margin (%) 0 1 report-2016/Financial-Highlights. 0.3 (10) 0 pdf and as interactive charts on our 2012 2013 2014 2015 2016 website at www.acclimited.com/ Op. EBITDA Margin investor-relations/key-performance- Op. EBITDA indicators.
44 Sustainable Development Report 2016 Table 5.1.4
CORPORATE SOCIAL RESPONSIBILITY EXPENDITURE
35 31 30 27 26 25 23 22 20
` Crore 15
10
5
0 2012 2013 2014 2015 2016 Maintaining a tradition of financial excellence, the Company’s Annual
Table 5.1.5 Report 2015 won the highest award MARKET CAPITALISATION AT YEAR END distributed last year for 30000 26836 excellence in Financial 26287 25546 24995 25000 Reporting from the 20806 20000 Institute of Chartered
15000 Accountants of India ` Crore 10000
5000
0 2012 2013 2014 2015 2016
Table 5.1.6
Cost & Profit as a Percentage of Revenue from Operations 2016 2015
Other income Profit before Exceptional Other income Profit before Exceptional ` (112) Crore (-1%) item and tax ` (119) Crore (-1%) item and tax ` 852 Crore (8%) ` 937 Crore (8%) Finance costs Finance costs Cost of materials Cost of materials ` 73 Crore (1%) ` 67 Crore (1%) consumed consumed ` 1,587 Crore (14%) ` 1,740 Crore (15%) Depreciation Power & fuel Depreciation Power & fuel ` 605 Crore (5%) ` 2,157 Crore (19%) ` 652 Crore (5%) ` 2,394 Crore (20%)
Employee Cost Employee Cost ` 778 Crore (7%) ` 770 Crore (7%) Manufacturing and Manufacturing and other costs Frieght and Forwarding other costs Frieght and Forwarding ` 2,563 Crore (23%) expense ` 2,633 Crore (22%) expense ` 2,655 Crore (24%) ` 2,723 Crore (23%)
Sustainable Development Report 2016 45 5.1 Economic Performance
Statement of Direct Economic Value Generated and Distributed appears on page 18 of Annual Report 2016 at http://www.acclimited.com/newsite/annual-report-2016/Financial-Highlights.pdf
Value Added Statement
Parameters 2016 ` Crore 2015 ` Crore 2014 ` Crore 2013 ` Crore 2012 ` Crore Equity 8,661 8,443 8,236 7,825 7,383 Long-term Debts 35 163 Capital employed 8,661 8,443 8,236 7,860 7,546 Average Capital Employed 8,552 8,339 8,048 7,703 7,625 Value added Net operating profit after taxes* 645 692 1,168 1,096 1,288 Add: interest on Long-term borrowings, after tax - - 1 4 31 Net operating profit after taxes (NOPAT) 645 692 1,169 1,100 1,319 Cost of Capital 963 1,074 1,038 1,017 919 Value added (318) (382) 131 83 400 NOPAT / Average Capital employed (%) 7.54 8.30 14.53 14.28 17.30 Weighted Average Cost of Capital (%) 11.26 12.88 12.90 13.20 12.05 Value added / Average Capital Employed (%) (3.72) (4.58) 1.63 1.08 5.25 Enterprise Value Market Capitalisation 24,995 25,546 26,287 20,806 26,836 (As at December, 31) Add: Long-term Debts - - - 35 163 Less: Cash and Cash Equivalents 1,944 1,389 1,686 2,621 3,137 EV (Enterprise Value) 23,051 24,157 24,601 18,220 23,862 EV / Year end Capital Employed (Times) 2.66 2.86 2.99 2.32 3.16
*Net Operating profit is excluding exceptional item and tax impact on the same.
Statement of Direct Economic Value Generated and Distributed Parameters 2016 ` Crore 2015 ` Crore WEALTH GENERATED Gross Income* 14,453 15,026 Operating costs (8,568) (9,099) 5,885 5,927 WEALTH DISTRIBUTION Employees as remuneration including retirement benefits 778 770 Contribution to Government as taxes and other levies 4,008 3,913 Shareholders as dividend 319 319 Community investments 22 31 Finance Costs 73 67 Retained with the Business 685 827
*Inclusive of Sales Tax/Value Added Tax (VAT)
46 Sustainable Development Report 2016 5.2 Marketing Communications
ACC holds a unique position in the India. The Individual Home Builder is cement industry with an all India our prime customer segment which presence. The company’s operations makes a valuable contribution not are spread throughout the country with only through its sizeable share of sales 17 cement plants, four regional sales volume but also in according high offices, 21 sales units, 71 area offices brand equity to the company and its and 50 Ready Mixed Concrete plants. products. Most sales made through These are supported by an extensive trade channels is bagged cement, 50 ACC has always been network of channel partners made up kilogrammes to a bag. of about 10,000 authorized dealers. “a people’s brand” This network ensures availability The remaining share of sales comes considering that 80% of ACC cement across India through a from direct buyers in the private and chain of more than 50,000 retail sales government sectors. For large projects of cement sales comes outlets. and more sophisticated constructions, from individual home the company has constituted a builders and small retail ACC has always been “a people’s brand” specially designated sales team - considering that 80% of cement sales the Infrastructure, Commercial, and buyers comes from individual home builders Industrial (ICI) department which caters and small retail buyers. Our sales to the techno-commercial requirements force works closely with the dealer of leading mega projects. This team also and retailer network to reach out to services other B2B customers project customers in almost every state of requirements.
Sustainable Development Report 2016 47 5.2 Marketing Communications
ACC provides excellent customer service. All our products are manufactured and to disseminate customer-focused Our Regional Offices and Sales Units and sold in accordance with statutory information on topics of relevance to have Customer Services Cells manned quality standards. None of the cement the customer. by qualified Civil Engineers who interact or concrete products manufactured and To network with various professionals with customers to assess their needs and sold by us are restricted in any way. and Influencer groups who can serve problems, offer advice before and after as informal brand ambassadors. sales, including educating users and Market Communication customers on correct usage of cement We reach out to customers through ACC was a founder member of the and concrete and good construction promotion campaigns as well as through Association of Business Communicators practices. social media to create continuous of India (ABCI), the country’s premier visibility. Marketing communication is body in this field. We participate in ABCI’s ACC pioneered the commercial sale of aimed at: annual awards under various categories Bulk Cement and Ready Mixed Concrete each year and have consistently been (RMX). Bulk Cement is well accepted by Personal selling recognized for excellence in different leading construction companies and is Promotion categories at different levels. In 2016 we a unique initiative for promoting the received the following recognitions from sale of cement in bulk as against the Direct marketing ABCI: normal ‘bagged’ cement. The demand Advertising - outdoor, pop, print and for these products is mainly in large electronic, radio and cinema Gold awards urban clusters and infrastructure Digital, Interactive multi-media and development projects. These two “ACC Community Counts” - a Social media value added products have together collection of case studies underscored ACC’s unique breakthroughs PR & publicity “ACC Logistics Safety Excellence” in the cement industry. programme All these activities are in compliance with RMX is supplied through a fleet of relevant regulations and laws. We track transit mixers in a large number of cities our brand equity regularly to get insights Silver awards in India. It is purely service oriented to help us assess how we are perceived with on-time delivery being the key and identify areas of improvement. “Together for Communities” - to success. ACC Concrete had 50 RMX CSR Newsletter plants as at the end of 2016. In the last Marketing Communication “ACC Sustainable Development few years, ACC’s Concrete business has Strategies Report 2015” shown a remarkable transformation. Marketing communication highlights ACC Parivar (Hindi) edition and Through consistent efforts, this five strategies: business developed a range of customer- Bronze to “ACC Sustainable To communicate ACC as a trusted oriented value-added products and Development Report 2014” brand in the marketplace - by making building solutions, enhancing quality customers aware of the company’s and successfully widening its customer profile and track record and to base. The concrete product range now In 2016, there were no incidents of inspire trust among them. This is includes a wide range of one-stop non-compliance with regulations and achieved by presenting the company’s solutions and value added products, voluntary codes concerning marketing market standing, heritage and major all tailored to meet specific customer communications, including advertising, milestones. requirements from small basic promotion, and sponsorship. requirements up to higher grades of To present a complete profile and concrete to build the country’s tallest description of our products. and largest structures. The Ready Mixed To emphasize the superior status Concrete team manages most of its sales of our products as compared to directly to buyers and end-users. This conventional products highlighting team has also sought to make forays their special qualities and benefits to into the retail segment by leveraging the the end user. company’s vast and competent cement To demonstrate the special values of sales network. our products through live examples
48 Sustainable Development Report 2016 5.3 Procurement Practices
Procurement involves the complete procured directly from steel plants and process pertaining to sourcing, vendor thermal power stations. The company selection and evaluation, purchase meets most of its energy requirements of goods & services and negotiation from its captive power plants. Cement of contracts. The supply chain and machinery is large and complex and is procurement process is viewed as purchased directly from manufacturers. a strategic function which plays an Wherever possible, the company prefers influential role in the organization’s to purchase materials, stores and profitability. Procurement is seen equipment directly from manufacturers All our Purchase Orders/ as helping to streamline processes, or from licensed sellers. Agreements have reduce raw material prices and costs, clauses pertaining and identifying better sources of ACC has a vast network of cement plants supply. It is an important part of the and Sales Units across the country in to Corporate Social organization’s value chain and accounts various States handling procurement Responsibility (CSR), for a major share of its operating cost. and supply chain activities involving Thus, it is critical to ensure efficiency large multi-disciplined group of Human Rights and and transparency in our operations. personnel. To take care of the essential Occupational Our supply chain operations involve requirements of our large network, we Health and Safety key internal and external stakeholders. have Local Procurement Teams at the (GRI 102-9) Units for routine local purchases. There is (OH&S) an Integrated Procurement Organization Limestone, the primary raw material at our Head Office which takes care of for cement, is sourced through the Major high value Purchases of various company’s captive limestone mines. Coal Commodities such as Coal, Raw Materials is the principal fuel and is purchased - Gypsum, Iron Ore, Bauxite, Steel, Major directly from domestic coal companies Services for the Units, Capex Items and or imported. Other major raw materials Spares for related Capex items, Major include slag and fly ash which are Contracts for Projects, Vendor Master
Sustainable Development Report 2016 49 5.3 Procurement Practices
Data etc. Requirement for such items is standards. All our Purchase Orders/ requirements. In instances where sent by Individual Units to the CPO and Agreements have clauses pertaining suppliers are not able to meet these after combining the requirement of all to Corporate Social Responsibility minimum requirements, we engage Units, the purchases are done centrally (CSR), Human Rights and Occupational in a dialogue with them and look for to avail volume discounts and better Health and Safety (OH&S). We mechanisms to help improve our negotiations. encourage our suppliers to take up suppliers’ standards. In the event of “Self-Assessment” based on a checklist persistent non-compliance or obvious In 2010 ACC, then part of the Holcim integrating SA8000, environmental violation, we take a decision to terminate group, had launched its Sustainable management and legal compliance these relationships. (GRI 204-1) Procurement Initiative (SPI) with the ultimate goal of partnering with suppliers Table 5.3.1 to deliver value-for-cost procurement for the Group and our customers, and to The Supplier Code of Conduct lists nine standards: demonstrate responsible supply chain management. Since 2011, we have been working towards the implementation of Occupational Health and Non-Discrimination Safety (OH&S) SPI through the Supplier Code of Conduct Environmental Regulatory which is meant to provide a clear Working Conditions Compliance summary of ACC’s expectation from Freedom of Association and Management of Environmental suppliers in all procurement dealings. This Non-retaliation Impacts Supplier Code of Conduct, recommended by UN Global Compact principles, is Forced Labour Bribery and Corruption communicated to all suppliers and Child Labour is also uploaded on the company’s website at http://www.acclimited.com/ procurement. Following the creation of LafargeHolcim, the Sustainable Table 5.3.2 Procurement Initiative (SPI) framework Nos. engaged Amount spent in was revised and re-launched in October (` Crores) 2016. By making it cross functional, we ensured active collaboration of many Total no. of suppliers 10796 9100 functions in the implementation process. Indian suppliers (Local) 10704 8849 We also conducted knowledge sharing sessions at Clusters and Unit levels. The International suppliers 92 251 re-launch of SPI will help to achieve the target of having assessed 80% of high- risk suppliers by 2020.
We encourage our suppliers to work towards continuous improvement and adopt best practices. We expect them to adhere to our Suppliers Code of Conduct which includes principles of compliance, human rights, ethics & business conduct and environmental stewardship. We strictly insist on transparency and accountability to be adhered to in all procurement activities.
The corporate and plant procurement teams assess and contract suppliers whose practices comply with the criteria of SA8000 and ISO 14000
50 Sustainable Development Report 2016 Suppliers and Vendors supply material of desired quality Our vendor base comprises more than and on time. We prefer vendors 10,000 suppliers spread across the who demonstrate good corporate country including reputed manufacturers citizenship and promote sustainable and trusted brand names, usually development. Vendors are selected from among the leading 3-4 vendors to meet the requirements of our of their particular industry segment specifications and are expected to make who are technically and financially timely deliveries of the required material. sound and have the intrinsic capacity to (GRI 102-9)
Table 5.3.3
The typical steps involved in supplier selection are as follows:
Communication of Supplier Risk Risk Scorecard the Supplier Code prioritization assessment mitigation of Conduct Communication Identification of Continuous Supplier Communication of company’s potential high-risk evaluation of risk development of company’s expectations suppliers based exposure through or replacement, expectations and terms of on Operating self-assessment, as determined and terms of engagement Companies’ fact finding or by Operating engagement to existing and judgment of local verification Companies to existing and potential suppliers conditions potential suppliers
We treat our vendors as business place through phone, virtual conferences, including human rights aspects and associates, extending them respect e-mail or in person as and when required. ethical requirements. With its signature and dignity. Adequate care is taken to The key concerns identified relate to or order confirmation, the supplier ensure transparency in procurement quality, quantity and payments. We accepts and agrees to adhere to these processes. Our procurement policy has have a Supplier Relationship Helpdesk requirements. In the reporting period a clearly defined code of practice for which takes up these matters with the under review, more than 5% of critical procurement conduct and encourages concerned unit to be resolved as soon as suppliers (through high risk-high spend) fair and open competition in markets. possible. were screened using environmental Suppliers are subjected to a qualification criteria and social criteria. (GRI 308-1, process that also seeks to identify Supplier Environmental and 414-1) information such as social risks including Social Assessment Safety, Occupational Health, Child All agreements with Suppliers, In 2016 no new suppliers were screened labour, Forced Labour and Freedom of such as purchase orders, purchase using Environment criteria; no supplier Association. agreements, service agreements and was identified to have significant actual frame agreements have to refer to the and potential negative environmental or We engage with suppliers to build Supplier’s compliance with SA8000, social impacts. (GRI 308-2, 414-2) synergy and long term relationships. environmental management and legal Regular interaction with vendors takes compliance requirements, social clauses
Sustainable Development Report 2016 51 6.0
52 Sustainable Development Report 2016 Environmental
6.1 Emissions
6.2 Energy
6.3 Geocycle
6.4 Raw Materials
6.5 Water
6.6 Biodiversity
6.7 Waste & Effluents
Sustainable Development Report 2016 53 6.1 Emissions
In 2016, the Company’s carbon footprint continues to be among the industry’s best-in- class where its specific ACC is an active member of the Indian Emission Reduction Targets CO2 emissions at 545 chapter of Cement Sustainability In line with the Group’s SD target, ACC Initiative (CSI) - a global group of 24 kg/t of cement (Scope plans to reduce its net specific 2CO major cement producers set up under the emissions per tonne of cement by 40% 1) was 32% lesser World Business Council for Sustainable as compared to the levels achieved in than 1990 level but in Development for the pursuit of issues 1990. This is the base year used for comparison to 2015, concerning sustainable development target setting of specific emissions in the cement sector. The Low Carbon reduction by the company as well as the it was 2% higher Technology Roadmap for the Indian Cement Sustainability Initiative (CSI). In Cement Industry is a voluntary and time- 2016, the Company’s carbon footprint bound commitment drawn up by CSI continues to be among the industry’s member companies with time bound best-in-class where its specific CO2 targets for reduction of carbon emissions emissions at 545 kg/t of cement (Scope leading to the year 2050. This Roadmap 1) was 32% lesser than 1990 level but in identifies key levers for reduction in CO2 comparison to 2015, it was 2% higher. emissions that include inter alia clinker This increase is mainly due to prevailing substitution, the use of alternative fuel market conditions for increased demand and resources; thermal and electrical for OPC and lower capacity utilization. energy efficiency among others. We have (GRI 305-1,2,3) made strides in each of these.
Table 6.1.1
CO2 Emissions (Tonnes) 2016 2015 2014 Scope-1* 14856102 15098332 14705732
Scope-2** 544035 462359 622877
Scope-3*** 539067 684642 556035
*Includes CO2 emissions from captive power plant and calculated using WBCSD CO2 protocol
**Calculated by using CM Emission factor - CO2 Baseline Database for the Indian Power Sector - V11 - Apr 2016 by Central Electricity Authority ***Calculated based on assumptions & approximation used to club vehicles to the distance brackets. Categories of Employee commute, transportation of heavy machineries installed in different plants, and courier emissions have not been considered
54 Sustainable Development Report 2016 Reducing the clinker factor blended cements, we expect to enhance The Cement manufacturing process The production of blended cements the overall share of blended cements and does not release any Ozone depleting lowers the requirement of clinker as some thus lower clinker factor leading to lower substances (ODS) substance into the part of clinker is replaced with fly ash or specific CO2 emissions. environment. (GRI 305-6). slag at the final grinding stage. Simply put, lower clinker consumption means Alternative Fuels & Resources (AFR) The use of bio-mass and agricultural less limestone is required to be mined, The use of AFR essentially serves to move wastes also emits CO2 which is not crushed, ground and burnt in cement away from dependence on fossil-based accounted by protocol in the Scope 1 kilns which together directly result in fuels and other mineral resources. In emissions shown in Table 6.1.1. Biogenic CO2 emissions thus generated were lower CO2 emissions. During the year, 2016, the company succeeded in co- ACC utilized 3.90 million tonnes of fly ash, processing 3,79,520 tonnes of alternative 51,009 tonnes. (GRI 305-1) 2.67 million tonnes of slag, 1.10 million fuels and resources, achieving a thermal tonnes of crushed rock fines, providing substitution rate of 3.22%. Following the sustainable environment friendly commissioning and stabilization of two services to the nation. This contributed pre-processing platforms and a third to reduction of limestone consumption under execution, we expect our Thermal and associated CO2 emissions. In 2016 Substitution Rate (TSR) percentage to we experienced higher demand for increase in the long run, thus enabling Ordinary Portland Cement from some of the company to cut its carbon footprint our markets. As a result we registered a even further. marginal decrease in the share of blended cements in the total product portfolio Improving energy efficiency to 83.5% leading to a corresponding In 2016, various energy efficiency/ increase in our CO2 footprint. Despite conservation initiatives were undertaken this our share of blended cements and by ACC (as explained in the section on overall specific emissions remained well Energy) which enabled lower energy above industry average. With the newly consumption and subsequently commissioned Jamul Integrated project contributed to reduce our CO2 footprint and its grinding units in Jamul and Sindri on account of thermal and electrical which will principally manufacture savings.
Table 6.1.2
Overall CO2 Reductions Achieved 2016 2015 2014 (Scope 1 & 2) On Account of Thermal Savings1 2451 6847 23359 (Tonnes of CO2)
On Account of Electrical Savings2 Nil Nil 2680 (Tonnes of CO2)
On Account of Clinker Factor 3 Nil Nil Nil Improvement (Tonnes of CO2)
Note: 1) CO2 emission reductions on account of thermal energy is calculated value.
2) CM Emission Factor (CO2 Baseline Database for the Indian Power Sector - V 11 - Apr 2016 - by Central Electricity Authority) was used for calculating the CO2 emissions on account of electrical savings.
3) CO2 emission reductions on account of clinker factor improvement is calculated by using the thumb rule that for 1% improvement in clinker factor there is reduction of 7.5 Kg CO2 / Tonne of Cement (GRI 302-4)
Sustainable Development Report 2016 55 6.1 Emissions
Emissions from Ready Mixed Concrete Logistics & Transport Since the production of concrete essentially comprises blending operations, the Emissions are also generated in incidence of carbon emissions is relatively low. Most of the CO2 emissions generated in logistics and transportation operations the RMX activity arises in transportation. which include primarily CO2 emissions emanating from fuel consumption. Table 6.1.3 This gets addressed by ensuring regular maintenance of vehicles. Second critical CO2 Emissions (Tonnes) 2016 2015 2014 emission is dust pollution caused by Scope-1* 3015 1796 2468 trucks plying on roads. These vehicles tend to stir up ambient dust on and Scope-2** 6772 3836 2888 around the roads. At our end, we make Scope-3*** 41607 39275 26078 sure that cement trucks are de-dusted and covered in tarpaulins before they *Includes CO2 emissions from DG sets and calculated using WBCSD CO2 protocol leave cement plants in order to minimize **Calculated by using CM Emission factor - CO2 Baseline Database for the Indian Power Sector - V11 - Apr 2016 by Central Electricity Authority dust pollution. We also promote Bulk ***Calculated based on assumptions & approximation used to club vehicles to the distance brackets. Categories of transport of cement which is not only Employee commute, transportation of heavy machineries installed in different plants, courier emissions have not been considered cost-effective but also environment- friendly. Similarly rail movement is preferred for long distances as a more In 2016, ACC featured among the leading implementation of NO emission X sustainable mode. Ready Mixed Concrete reduction by primary measures Indian Business Houses that have that is transported in transit mixers is participated in the Carbon Disclosure (Process optimization, usage of AFR, proven to be a value-added option that is Project (CDP) and ranked high in terms of Fuel split, meal spilt etc) at all plants also particularly a green option. (Logistics its disclosure forming part of the Carbon and secondary measures at few plants and transport) Disclosure Project Index. (SNCR). Complying with the reporting mandate, online reporting of emissions In 2016, there was zero non compliances Controlling Emissions -- Dust, SO2 and effluents for all the plants is done with environmental laws and/or and NOx on Central Pollution Control Board regulations, however we paid fine of As regulatory frameworks for emissions (CPCB) website and with respective ` 50 Lakhs towards an earlier non are undergoing huge reform, Indian State Pollution Control Boards wherever compliance case which was reported in cement companies are facing challenges servers are available. (GRI 305-7) 2015. (GRI 307-1) to comply with stringent regulations and emission standards for various Table 6.1.4 types of emissions including SOX, NOX Emissions* Unit 2016 2015 2014 and dust emissions. Towards this end, NO gm / Tonne of Clinker 1966.91 1544.79 1663.91 ACC endeavours not only to meet these X new standards but also strive to improve gm / Tonne of Cement 1289.25 1001.80 1044.05 its performance beyond compliance. Tonnes 29880.65 23883.50 25304.29 Accordingly, various measures are being implemented across all operations of SO2 gm / Tonne of Clinker 128.74 175.60 196.71 the Company to control stack emissions gm / Tonne of Cement 84.38 113.88 123.43 by upgradation/modification of existing air pollution control equipments or Tonnes 1955.72 2714.92 2991.49 installation of air pollution control equipment. To ensure compliance for Dust gm / Tonne of Clinker 41.50 36.58 41.66 fugitive emissions, the company has gm / Tonne of Cement 27.24 23.72 26.14 already installed dust extraction and dust suppression systems. During the Tonnes 630.52 565.53 633.59 year 2016, ACC had commissioned * The emissions reported are based on Kiln stacks only Hybrid Electrostatic Precipitators (ESP) at Jamul and upgraded Coal Mill Cement manufacture does not generate any significant levels of Persistent organic Bag House and Cooler ESPs at Gagal. pollutants (POP), Volatile organic compounds (VOC) or Hazardous air pollutants (HAP). The Company has also initiated the (GRI 305-7)
56 Sustainable Development Report 2016 6.2 Energy
Cement production is an energy Table 6.2.1. In 2016, specific electrical intensive process where energy energy at 88.66 (kWh/ Tonne of Cement) constitutes around 40% of the total cost was almost 5% higher than 2015 for the of production. In 2016, specific energy reasons mentioned above. However the consumption was significantly impacted impact of associated increase in electrical by a lower share of blended cements, energy cost was reduced by increased reduced capacity utilization and use of consumption of Open Access power Petcoke and associated trials or plant by strategic bidding and scheduling interruptions. A snapshot of internal operations of main drives accordingly. energy consumption is explained in (GRI 302-1,2,3,4)
Sustainable Development Report 2016 57 6.2 Energy
Table 6.2.1 Open Access power was increased from Energy Consumption Unit 2016 2015 2014 65% to 93.5% at Thondebhavi; from 59% to 84% at Kudithini. At Gagal, Open Coal + Petcoke consumption TJ 45927 45,767 45,466 Access power started during the later in Kiln part of 2015 and was ramped up to ~ Diesel Oil consumption in Kiln TJ 70 41 55 25% in 2016. This resulted in total saving Alternative Fossil fuels* TJ 1241 1,068 634 of ` 19 crores in the cost of power. consumed in Kiln Alternative Bio-mass We are exploring other avenues to TJ 304 283 216 consumed in Kiln reduce the cash outflow for purchase Diesel Oil consumption for of RECs against Renewable Power TJ 570 460 434 Onsite vehicle movement Obligation. Scheduling and maximizing Fuels for drying of raw green power from the captive wind TJ 1181 1,266 1,288 materials power generation sources contributed Coal for onsite power considerably on this front. Currently the TJ 23136 22,888 20,342 generation company’s renewable energy portfolio Diesel Oil consumption for consists of 19 MW in the form of wind TJ 8 15 15 Onsite power generation farms across three States - namely Tamil Alternative fossil fuels for Nadu, Rajasthan and Maharashtra - TJ 98 148 334 onsite power generation which together generated 36.51 million units. Additional green power of 1.67 Biomass for Onsite Power TJ 151 17 116 generation# million units was procured through Power Purchase Agreement adding up to Specific power consumption KWH / Tonne total Green Energy consumption of 38.18 upto and including clinker 73.06 70.01 70.69 of Clinker production million units, representing an increase of 9% over the previous year. KWH / Specific power consumption Tonne of upto and including cement 84.62 81.56 81.45 Cementitious grinding Material KWH / Specific power consumption Tonne of including cement grinding, 87.04 83.85 83.70 Cementitious colony, auxiliaries Material Specific thermal energy GJ / Tonne of 3.12 3.05 3.05 consumption Clinker MWH / Electricity Energy Purchased 566,703 481,624 637,696 Annum Energy consumption outside TJ 7275 9209 7504 the organization**
* As per WBCSD protocol, alternative fossil fuel comprises of waste oil, waste tyres, plastics, solvents, impregnated saw dust etc ** Considered diesel as fuel consumed in transportation and calculated from Scope 3 emissions.
58 Sustainable Development Report 2016 In 2016, we invested approximately ` 112 million on major CAPEX projects for energy Some of our plants conservation, besides continual process of identification and implementation of low cost capex / opex measures. have been appreciated for their achievements Various energy conservation and efficiency measures, as described in Table 6.2.3 were undertaken in different areas of the cement manufacturing process and Captive Power in energy efficiency Plants (CPPs) (GRI 302-4) and conservation. ACC
Table 6.2.2 Chanda was adjudged Wind Power Generated as one of the Excellent 2016 2015 2014 (in Million kWh) Energy Efficient units Tamil Nadu 19.92 13.22 17.70 by Confederation of Rajasthan 12.46 12.78 11.53 Indian Industries (CII),
Maharashtra 4.12 3.17 3.26 supported by BEE
Sustainable Development Report 2016 59 6.2 Energy
Table 6.2.3
Plant Initiatives Conventional burner was replaced by Duoflex burner in Kiln, besides introduction of variable speed drives Lakheri for cooler and Crusher Bag House Fan. Computational Fluid Dynamics study was carried out and mitigation measures taken to reduce pressure Chanda drop across coal mill outlet duct. Computational Fluid Dynamics study was carried out for Kiln bag House and mitigation measures taken Kymore to improve flow distribution and reduce pressure drop across the agb house. Installed medium Voltage Variable Speed Drive for Preheater fan. Replaced Kiln Shell for improvement of thermal energy consumption. Installed energy efficient Turbo Blowers in both Kiln burners besides replacing the kiln burner with Gagal Pyro-jet burner. VRM throughput was increased from 280 to 330 TPH by reduction of feed size and accordingly modifying the mill internals. Replaced Preheater fan with Energy Efficient fan. Pressure drop across Raw Mill VRM of Gagal 2 and Preheater Cyclones at Gagal 1 was reduced by taking mitigation action through Computational Fluid Dynamics study. Converted Cement Mill-3 into mono-chamber mill. Replaced reciprocating type compressors with energy efficient screw compressors. Installed tertiary Air Dampers for improvement of thermal energy consumption in Kiln 4; modified coal Wadi circuit to increase Coal Handling Plant output from 80 TPH to 130 TPH for its Captive Power Plant. Converted twin Chamber cement mills to mono chamber with change in feeding arrangement of Tikaria pre-grinder output. Thondebhavi High Efficiency Screw compressor was installed to replace existing compressor. Improved Coal Mill Productivity from 7.5 TPH to 12.5 TPH by modifications in liners, thereby improving Bargarh Kiln productivity; Installed new roller in Slag VRM to improve grinding efficiency.
Some of our plants have been appreciated for their achievements in energy efficiency The issue of reductions in energy and conservation. ACC Chanda was adjudged as one of the Excellent Energy Efficient requirements of sold products and units by Confederation of Indian Industries (CII), supported by BEE. services is not applicable to cement or concrete. (GRI 302-5) Energy consumption in Ready Mixed Concrete The production of Ready Mixed Concrete (RMX) requires a very small amount of energy for the purpose of mixing and transportation. A snapshot of energy consumption in the last three years is shown in Table 6.2.4. (GRI 302-1,2)
Table 6.2.4 Energy Consumption Unit 2016 2015 2014
Diesel consumption in RMX unit TJ 41 24 33
Electricity Energy Purchased MWH / Annum 7054 3996 2947
Energy consumption outside the TJ 561 530 352 organization*
* Considered diesel as fuel consumed in transportation and calculated from Scope 3 emissions
60 Sustainable Development Report 2016 Sustainable Development Report 2016 61 6.3 Geocycle
We have taken the lead in providing to major waste generating industries and safe waste management solutions to municipalities, we also seek to reduce major waste generating industries and reliance on traditional fuels. organizations. The core objectives of value creation, customer service and ACC has increased co-processing of technical excellence together drive our Refuse Derived Fuel (RDF) and non- initiative towards providing sustainable recyclable Segregated Combustible waste management solutions under the Fraction (SCF) of Municipal Solid Waste brand name, Geocycle. (MSW) in its facilities enabled by large scale investments in research and A key challenge posed on our environment infrastructure development made for the today that is a cause of major concerns safe utilization of these waste streams in about the health and safety of all citizens our cement plants. comes from the enormous volumes of municipal waste being generated in In line with our efforts, we have been our cities and towns. Recognizing this working with State Governments and problem, we are also extending the scope waste management agencies such as of our waste management solutions in Goa on a MSW Landfill Remediation to developing safe and sustainable Project, the first of its kind in India, solutions for the efficient disposal of wherein we received and co-processed municipal wastes. In the course of around 4,800 tonnes of RDF at our Wadi providing waste management solutions plant in 2016.
62 Sustainable Development Report 2016 During the year we redoubled our different types of waste generated in the ACC has increased co- endeavours in stakeholder engagement, country. lobbying, advocacy and capacity building processing of Refuse to achieve greater technical and legal In 2016, ACC has succeeded in co- Derived Fuel (RDF) recognition for co-processing technology processing 3,79,520 tonnes of in line with accepted international alternative fuels and raw materials and non-recyclable standards. These efforts have borne fruit and achieved a thermal substitution Segregated Combustible and in the recent changes to the Indian rate of 3.22% through successful co- Waste Legislation in 2016, co-processing processing of various waste streams Fraction (SCF) of is now recognized as a preferred and other alternative fuels and raw Municipal Solid Waste technology for waste management for materials. (MSW) in its facilities enabled by large scale investments in research and infrastructure development
Sustainable Development Report 2016 63 6.4 Raw Materials
The production of cement is a resource bauxite, laterite and gypsum being intensive process requiring non- sourced externally. Our expertise and renewable raw materials like limestone, experience particularly with the shale, clay, sand, iron ore etc. Limestone mining of limestone is among the being a primary raw material, its best in industry. State-of-the-art availability and quality is of paramount mining equipment is deployed at all importance. ACC is among the largest our mines for mineral extraction and users of limestone in the country. development which is undertaken State-of-the-art mining Each of its cement plants has a strictly in accordance with mining plans captive mine for limestone with and schemes approved by statutory equipment is deployed other raw materials namely, iron ore, authorities. at all our mines for mineral extraction and Table 6.4.1 development which is Raw materials (Million Tonnes) 2016 2015 2014 undertaken strictly in Limestone 22.41 22.82 20.84 accordance with mining Gypsum 0.86 1.14 1.19 plans and schemes Alternative Raw Material 0.33 0.22 0.16 approved by statutory Slag 2.68 2.61 2.84 authorities Fly ash 3.90 4.17 4.40 Additives 0.016 0.01 0.014 Others (Bauxite, Iron ore etc.) 0.67 0.79 2.30 Lubricating oil (Tonnes) 489 489 488 Grease (Tonnes) 167 167 201 Weight of bags consumed (Tonnes) 29992 31473 32149 % Recycled materials used 22.38 22.04 23.29 (GRI 301-1,2)
64 Sustainable Development Report 2016 At ACC commitment to conservation Used and abandoned mines are and gravel or crushed stone. Each input of precious mineral resources is rehabilitated following approved norms material is procured separately and demonstrated by using clean mining and transformed into lush forests or mixed in specified proportions to make practices and by minimizing dust useful water bodies. Respect for the concrete. Ready Mixed Concrete, or emissions. Though high grade interests of neighbouring communities RMX as we refer to it, is concrete that is limestone is often preferred for cement and protecting bio-diversity are also specifically manufactured at a concrete manufacture, ACC seeks different means a priority. With safety being an over- plant and transported in a Transit Mixer to enhance the life of its mines such as arching value, our mines regularly play (TM) for delivery to the customer’s the enrichment of low-grade limestone host to Mines Safety Week and Mines construction site in a ready-to-use through beneficiation and indirectly by Environment celebrations. All ACC mines freshly mixed state. RMX can be custom- promoting the manufacture of blended pursue exacting standards for safety made to suit different applications. RMX cements. management. is bought and sold by volume - usually expressed in cubic meters. The materials These cements, viz. Portland Pozzolana Ready Mixed Concrete consumed in Ready Mixed Concrete Cement (PPC) and Portland Slag Cement Concrete is a mixture of Portland Cement, operations in the last three years are (PSC) replace some part of the precious water, and aggregates comprising sand shown in Table 6.4.2. limestone with industrial wastes and by products (Fly ash, a waste from Table 6.4.2. Thermal Power stations and slag, a waste generated by the steel industry) in the Raw materials (Tonnes) 2016 2015 2014 final cement grinding or blending stage. Cement 633830 5,50,655 4,02,445 This may typically replace limestone by up to 20-30% with fly ash and 60% Slag 53381 40,067 31,456 with slag. These products are rendered doubly sustainable as they also address Fly ash 177670 1,62,038 1,08,975 the disposal of waste material in a more Additives 8312 7518 5,197 environment friendly manner. Cement Industry is also trying to enhance its Sand 1859552 1587154 1179465 portfolio of blended cements through Aggregates 2390050 2105141 1610712 the introduction of Composite Cements. In addition we use alternative raw Lubricating oil 20.93 30.45 34.78 materials such as marble slurry and red Grease 8.56 7.63 8.89 mud. These initiatives help us meet our target of using waste derived resources to strengthen our approach to pursuing the concept of circular economy.
During 2016, ACC utilized 3.90 million tonnes of fly ash, 2.67 million tonnes of slag, 1.10 million tonnes of crushed rock fines, thus providing sustainable environmental friendly services to the nation. During the year, our plants co- processed 3,79,520 tonnes of alternative fuels and raw materials achieving a thermal substitution rate of 3.22% through successful co-processing of various waste streams and other alternative fuels.
While we utilize wastes generated by other industries and processes, no product made by the company itself is reclaimed in any way. (GRI 301-3)
Sustainable Development Report 2016 65 6.5 Water
Aligning with the group target, ACC also aims to reduce its freshwater withdrawals by 30% by 2030. Towards this objective, the company is strongly focusing its efforts on the following initiatives: (i) Reduction of fresh water intake by lowering water demand in process and non- process areas (ii) Process optimization and upgradation to water efficient ACC has a long and visible tradition of technologies wherever water conservation, particularly through feasible the creation of new water bodies and (iii) Installation of Sewage efforts to rehabilitate and replenish treatment plants (STP), existing sources. With a purposeful Effluent Treatment Plants agenda for water conservation, we are (ETP), Zero Liquid Discharge already self-reliant in respect of our (ZLD) systems for effective water requirements at Kymore and reutilization of waste water. Jamul cement plants. We aim to make During the year 2016, the further progress to achieve “Water Company ordered ZLDs for Positive” status. Wadi and Chanda Cement Works, STPs for Lakheri and In recent years commendable efforts Damodhar Cement Works have been made by several of our plants. Compared to other industries (iv) Conservation of water by rain and processes, cement industry is not water harvesting in plants, water intensive. Water is used mainly mines, colonies, community in industrial cooling and in domestic areas and sustained water consumption. harvesting measures.
66 Sustainable Development Report 2016 Table 6.5.1 2016 2015 2014 Source of Water* Cement RMX Cement RMX Cement RMX
Surface Water 5.44 - 5.37 - 7.92 (Million M3)
Harvested Rain Water 6.85 - 8.02 - 7.08 (Million M3)
Municipal Water Supplies 0.07 0.48 0.07 - 0.09 (Million M3)
Ground Water With a purposeful 1.99 0.32 1.23 0.871 1.57 (Million M3) agenda for water *Partial quantities are based on meter reading where available while the rest is calculated based on the pump capacity and running hours conservation, we are (GRI 303-1) already self-reliant in
No water body is affected by our withdrawal (GRI 303-2) respect of our water requirements at Kymore Table 6.5.2 and Jamul cement Water Treated and Reused* 2016 2015 2014 plants Total Quantity of Water Treated and 9.1 9.84 8.25 Reused Annually (%)
Total Quantity of Water Treated and 1.31 1.45 1.30 Reused Annually (Mio m3)
* Calculated based on the pump capacity and running hours
Sustainable Development Report 2016 67 6.6 Biodiversity
Nature is one of the pillars of our SD might be affected directly or indirectly 2030 plan, where we aim to create a by our operations but we take due care positive change on biodiversity. Mining and efforts to mitigate the level of is the main activity where our operations impact. Among all species, ten species have an impact on habitat and fall under ‘Schedule I’ category (highest biodiversity by way of the erosion of protected category as per Indian top soil, damage to flora and fauna, Wildlife Protection Act), are present noise and dust pollution etc. However within a radius of 10 km of our we are of the view that there have been operations and for all of them we have no significant changes in ecological prepared wildlife conservation plan. processes. (GRI 304-2) In terms of IUCN’s classification of red list categories, the break-up of these We are aware that species existing 10 Schedule I species is shown in within our locations or in nearby sites Table 6.6.1 below. (GRI 304-4)
Table 6.6.1
Critically Near Least Endangered Vulnerable endangered Threatened Concerned
1 species 2 species 2 species 1 species 4 species
68 Sustainable Development Report 2016 We continuously endeavour to reduce help meet the 2030 target having a Building Awareness the level of impacts of our operations on positive change in biodiversity. ACC has made conscious efforts to this account. (iii) Measuring changes on biodiversity increase awareness and train the people require an effective tool. In 2016, the on Biodiversity issues at all its locations. All our plants and mines follow company rolled out the Biodiversity In collaboration with IUCN - Leader comprehensive plans and undertake Indicator Reporting System (BIRS) - a for Nature (LfN) Programme and CII’s rehabilitation of spent mines in a well- new tool for assessing Biodiversity India Business & Biodiversity Initiative organized and safe manner in order condition and monitoring relative (IBBI), we conducted various training to protect the biodiversity and nature changes in Biodiversity. BIRS programmes to create awareness and around. With all our mines currently in assessment was taken up first at enhance capability of employees. The operation, rehabilitation work is still in Lakheri Cement Works and we now company actively partners with Cement a partial stage as it is being carried out plan to complete similar assessments Sustainability Initiative in programmes in a progressive manner which will be at all other sites within the next two and activities to improve the eco-system completed at the end of the tenure of the years. These assessments will set the at all its plant sites. mine. By the end of 2016 the total extent baseline score against which we will of mines area rehabilitated adds up to monitor our changes. about 844 hectares. (GRI 304-3) Measuring changes in (iv) Rehabilitation efforts implemented Biodiversity at Lakheri Parallel initiatives are being implemented on-ground include but are not limited to achieve the biodiversity target. to: ( GRI 304-2) BIRS tool was developed by a panel of IUCN experts to guide (i) During the year, rapid biodiversity Tree plantation: In 2016 companies in the cement and assessments were conducted by an approximately 1.5 lakh trees were aggregates sectors to monitor independent third party at Jamul planted with average survival rate changes in the biodiversity and Chanda mines. With these two >80%. At all plants, preference is condition of a site consisting of assessments, the company has given to native and local species one or more different habitat completed the exercise for all sites. best suited to the local ecology. types. BIRS methodology takes These assessments help identify Rain water harvesting: All our into account 3 aspects: the sites where we can prioritise worked-out mining pits harvest our efforts. As an outcome of these the extent of habitat types rainwater; this has in fact helped assessments, three of our mining to enhance the self-sufficiency of the ecological condition of sites - Gagal in Himachal Pradesh, some of our plants for their water these habitats, including Lakheri in Rajasthan and Bargarh in requirements. enhancements and threats Odisha - are found to be relatively sensitive. Though these sites do Top soil preservation: This is a the uniqueness and ecological not fall within or adjacent to any general practice adopted at each importance of each habitat in designated protected area they are plant where top soil is preserved the regional context located within 10 km of a nationally for future use during afforestation The output is represented as a protected area (GRI 304-1). For all and plantation activities. score (1-10) representing the these sites, we have approved wildlife Managing invasive species: Biodiversity Condition of the conservation plans. Invasive species are a significant site. ACC Lakheri was one of (ii) In 2016, ACC developed a threat to the eco-system which the sites where BIRS was rolled comprehensive Biodiversity Action adversely impacts the growth of out in 2016 and a score was Plan for Gagal Mines through a native plants and ecology. We calculated. The assessment third party, wherein it included undertake concerted efforts to will be repeated after a period three ground-surveys spanning 7-15 create awareness, highlighting of time to show the relative days each. Accordingly, strategies harmful impacts of common change in biodiversity due to were identified for implementation invasive species. At some of the our activities. This tool will which will conserve and enhance locations such as Kymore, we help us monitor our progress the biodiversity at this site in uproot, collect invasive plants against our 2030 target of future. The company is working to (such as Parthenium) and dispose having a positive biodiversity implement these action plans in a of them in co-processing in our change. phased manner which will ultimately cement kilns.
Sustainable Development Report 2016 69 6.7 Wastes & Effluents
The process of cement manufacture is diverted into soak-pits within our does not generate any waste water or boundaries. effluent. Cement manufacture uses water only for industrial cooling. Water At ACC, we strive for “Zero Discharge” thus used is recycled and reused in the status in respect of all our operations process itself, leaving no waste. Small and we do not discharge any process amounts of effluent are generated effluent in water bodies or anywhere in Captive Power Plants which gets else. Working towards this goal, during treated in Effluent Treatment Plants the year 2016, ACC ordered Zero Liquid (ETPs) in locations where we have Discharge (ZLD) systems for Wadi and captive power plants. Sewage generated Chanda Cement Works. Complying with in residential colonies located within the new regulations, we are also in the our townships is treated in Sewage process of installing new/upgrading Treatment Plants (STPs). The total existing STPs/ETPs wherever necessary. treated waste water through ETPs and In the reporting year 2016, we upgraded STPs is used for dust suppression and the existing STP at Damodhar Cement green belt development. Any domestic Works and ordered new STPs for Lakheri waste water that cannot be redeployed which are now operational. (GRI 306-5)
70 Sustainable Development Report 2016 Solid waste in cement manufacture is generated mostly from maintenance and housekeeping activities, comprising used oil and grease, metallic scrap etc. Wherever possible, our cement plants adopt the 4R Approach (Reduce, Reuse, Recover and Recycle) to handle these wastes. In some plants, hazardous waste such as waste oil is co-processed, wherever we are permitted to do so. The remaining hazardous waste is sold to authorized third parties for final disposal (GRI 306-2). We do not transport any hazardous waste categorized under Basel convention (GRI 306-4). Table 6.7.1 shows the quantity of hazardous and non-hazardous waste generated in 2016 (GRI 306-1): At ACC, we strive for Table 6.7.1 “Zero Discharge” Details Unit 2016 2015 2014 status in respect of all Hazardous Waste our operations and Waste Oil Litres 83,633 226,307 211,673 we do not discharge Grease Kgs 50,232 16,796 Nil any process effluent Non Hazardous Waste in water bodies or Steel Scrap Tonnes 30,635 10,813 17,900 anywhere else Others Tonnes 5,098 4,558 6,397 Filter Bags Nos 113,671 63,632 75,730 Note: 1. Steel Scrap includes castings, waste steel, MS drums, wrapper scrap, iron scrap, grinding balls, HC lining plate, table liner, HC grinding media, etc. 2. Others includes waste cement bags, conveyor belts, wood, copper, plastic bags, electrical cables, empty glass bottles, aluminium, tyres, paper, PVC drums, HDPE wrapper, etc.
We have a comprehensive spill management system in place to minimize the impact, in the event of any spill. No incidence of any significant spill occurred in 2016. (GRI 306-3)
A large proportion of empty cement bags are reused with only a small part being disposed off as scrap. Construction sites find empty cement bags useful to store other loose construction material. Often empty cement bags are cleaned and reconditioned to store and pack other items. In many instances, the bags are cleaned and put to use as roof thatching material. In view of these practices, we have not found it necessary or gainful for us to reclaim used packaging material. (GRI 301-3)
Sustainable Development Report 2016 71 7.0
72 Sustainable Development Report 2016 Social
7.1 Health & Safety
7.2 People & Employment
7.3 Human Rights
7.4 Community Development & Social Responsibility
Sustainable Development Report 2016 73 7.1 Health & Safety
“No harm anywhere to anyone Our H&S policy and rules are guided by associated with ACC” is the ultimate the parent Group’s H&S agenda. Health goal of the company. Hence Health & Safety rules focus on the individual and Safety (H&S) is accorded topmost and spell out the expectations from priority such that it forms an integral all employees, contractors and visitors part of our sustainability agenda. whilst working in a LafargeHolcim group A strong health and safety culture establishment. These rules are designed is promoted at all levels. Safety is an to reduce incidents and move toward Every employee is ongoing passion. We make it a point the ambition of ‘Zero harm’. H&S Rules to integrate Health & Safety into our and Policy are prominently displayed at accountable for his/ normal work as a basic operating all company locations. Every employee is her own health and principle. We strongly believe in visible accountable for his/her own health and leadership and lead with personal safety and also has the duty to correct safety and also has the accountability to foster health and anyone they see acting in an unsafe way. duty to correct anyone safety at all levels across the Health & Safety is a team activity aimed they see acting in an organization. at saving lives and minimizing harm. unsafe way Table 7.1.1 S. NO. Parameters 2016 2015 2014 1 Employee Fatalities (Nos.) 0 0 1 2 Fatality rates (directly employed) 0 0 0.049 3 Contractor Fatalities (onsite) 5 3 3 4 Contractors Fatalities (off site) 5 4 3 5 Employee Lost Time Injury (LTI) 16 19 11 6 Employee Lost Time Injury Frequency 0.9 1.00 0.5 Rate (LTIFR) 7 Employee Injury Rate (IR) 1.33 1.63 0.94 8 Employee Lost day rate (LDR) 53.8 33.0 45.1
Note: We follow guidelines of CSI in recording and reporting H&S related incidents. In respect of H&S information, we have not indicated any break-up by region and gender.
74 Sustainable Development Report 2016 We deeply regret that despite all our Detailed independent investigations from the fatal incidents were shared dedicated efforts in ensuring health were conducted for each incident to within the company and with other & safety, five people (all males) lost find the root causes and identify corrective companies in the global LafargeHolcim their lives while working at our and preventative actions. These and other group. operations in 2016 while there were improvement actions were then tracked five off-site fatalities, also males. for implementation. Lessons learned
Leadership & Accountability i) Health & Safety Improvement Plan (HSIP) Health & Safety Improvement Plan (HSIP) is prepared based on the feedback and involvement of the Company’s senior management. The plan contains seven Health & Safety (H&S) objectives, clearly indicating the ownership of each objective assigned to a senior executive. Salient aspects of the HSIP comprise H&S Leadership & Accountability, People’s H&S Capability, H&S management systems, Road Safety and Electrical Safety. This sets down the direction for the organization to channelize the efforts.
Enhanced visibility of Roll-out of Reward Meaningful Eliminating senior executives & Recognition toolbox talks electrocution risk and Consequence Management ii) visible Personal Commitment part of ACC’s approach to H&S management. We hope it serve as a Field visibility of senior executives major contributor towards our goal of related to H&S has increased Zero Harm. manifold with the launch of Visible Personal Commitment (VPC) - a iii) H&S Culture systematic tool to interact with shop floor people on safety matters To help build and reinforce a and take feedback. This has helped positive H&S culture, we have ACC to demonstrate management’s revamped our behaviour-based commitment and enhanced safety safety training programme named leadership capabilities of our top “Developing Safety Commitment”. executives. With all management The programme gives an insight staff mandated to be part of the VPC into personal and organizational initiative, it has become a critical traits to become a safety leader.
Sustainable Development Report 2016 75 7.1 Health & Safety
Table 7.1.2 People H&S Capability Building 11 1600 30 1780 81 54 468 NEBOSH Are trained on Senior Executives Trained on VPC Trained as Undergone Undergone Certified Risk Assessment in H&S capability modalities. internal refresher training behaviour based employees capability workshop auditor for HSMS on Incident safety training enhancement on change (Health and investigation. programme programme from management, Safety “Developing M/s NIST, risk assessment & Management Safety Chennai behaviour safety. System) Commitment” for enhancing positive safety culture
100% of our workforce is covered by formal joint management - worker health and safety committees. Guidelines are in place for personnel and property security. Several health and safety topics such as contractor safety directive, use of PPE and related subjects are covered in formal agreements with trade unions.
Effective Execution Health Initiatives use of air ambulances. In addition, a The focus on H&S gets added strength ACC has a well-structured approach new health programme is being with regular hand-holding on to reduce health risk factors among designed to reduce exposure to health capability enhancement, translating employees and their families. The risks at all sites. corporate H&S requirements and company has taken numerous steps Workers in our units do not show any support implementation, timely review, to enhance medical facilities at all particularly high risk of diseases related incident investigation, rewards & plants and engage with employees and to their occupation, as per our records. consequence management. Cluster their families to create awareness and Their health pattern generally conforms H&S heads operating from key locations build capabilities. Emergency Medical to the national and regional average ensure round the clock positive Response (EMR) capabilities have been in respect of risk factors and lifestyle surveillance. optimized at all cement manufacturing diseases. units by outsourcing ambulance “I care, I share, I act” - Employee services, to ensure round-the-clock Significant steps were initiated to induct Engagement Campaign availability of trained EMR technicians. digitization to monitor employee health. In May 2016 the LafargeHolcim Group Other arrangements are being tied up An on-line health management system organised Global H&S days campaign to secure high quality pre-hospital care is being developed to standardize health “I care, I share, I Act” to mobilize large in the event of any medical emergency, processes across all units. This will groups of people and engage them in trauma or any other health care issue facilitate management to retrieve health Health & Safety activities. The company concerning employees such as the data of all employees. engaged with employees and workmen of contractors at all locations in a range activities, including competitions for poster drawing, slogan writing, nukkads (street plays}. The corporate leadership team connected with all employees over a webcast to re-emphasize the importance of H&S in the organization. Schools, community and the general public were also addressed.
76 Sustainable Development Report 2016 Here are some other measures used to build Health care: Health Capability Building Regular use of the Company intranet to disseminate health awareness Conducting health sensitization programmes Health training to 14 doctors and 11 paramedics Personalized health care Advanced Cardiac Life Support Identifying health peers from among Shop floor Associates (SFA) to spread (ACLS) & International Trauma health awareness among employees and their families Life Support (ITLS) training to 14 Training in office ergonomics paramedics 2OO teachers of township schools were trained to share awareness with more 200 teachers from all schools than 1O,OOO students. in plants are trained in H&S for promoting this initiative in schools >10000 students spread awareness about H&S among employees and community 24 health peers trained for tool box health awareness talks 500 line managers trained in H&S.
Sustainable Development Report 2016 77 7.1 Health & Safety
Road Safety spanning various stages of the H&S matters and inculcate the right Logistics is among the most challenging shipping cycle from the point a vehicle behaviours focused on safety of areas in safety, a large part of which approaches a plant to its end destination. Drivers, Vehicles and Journey relates to offsite situations and The plan also prioritizes focus areas Management. Creating greater alertness environments that cannot be easily based on likelihood, consequence, and awareness among drivers and influenced. ACC has developed a controllability. employees using simulator training, logistics safety roadmap for 2020, seat belt convincer training and which encompasses an analysis of past In 2O16 Driver Management Centres defensive driver training techniques is incidents, current initiatives and wide- were established at nine cement ongoing. ranging activity based risk assessments plants to educate drivers on various
78 Sustainable Development Report 2016 7.2 People & Employment
“To win in the marketplace you must a healthy work environment for first win in the workplace.” At ACC development and growth. employees are treated as the foundation of the company. ACC is passionate about India Manufacturing its people and strives to create a caring Transformation environment where employees are In 2016, the company strengthened its given opportunities to realize their full efforts towards “India Manufacturing ACC is passionate potential, contribute their best and are Transformation”, an initiative started about its people and adequately recognized and rewarded for in 2015 to introduce a more responsive, their efforts. We strive to build a strong efficient and lean organization design strives to create a employee base with multidisciplinary in all cement plants; it incorporated a caring environment teams where each and every employee new way of working with streamlined is motivated and inspired to work. work practices, enhanced people where employees are Our workforce is made up of people skills and capabilities and centres given opportunities from different parts of the country of excellence (CoEs) for continuous to realize their full representing different ethnic, cultural improvement through exchange of best and religious backgrounds. To build an practices. This was initiated after careful potential, contribute innovative workforce and future-ready benchmarking of best-in-class practices their best and are employees for tomorrow, the company of LafargeHolcim plants across the globe. pays special attention to issues such This Organizational reform continued to adequately recognized as health and safety, competitive show its benefits with improvement in and rewarded for their benefits and schemes, building new productivity by 30%. It is a continuous capabilities, empowerment and process through which ACC proposes to efforts respect for human rights. It regularly transform itself into becoming one of reviews and adopts schemes to the most productive companies in the motivate employees and ensures country.
Sustainable Development Report 2016 79 7.2 People & Employment
Employment Till 2016, women were eligible to avail In the year 2016, the company employed total 7833 people out of which approximately of maternity leave of sixteen weeks 4%, equaling to 291, were women. (GRI 102-8, 401-1) taken either continuously or in two tranches of eight weeks each prior to Table 7.2.1 and post the expected date of delivery which was, then, more than what is Female Male required by law. In 2016, the total Total Employees 291 7542 number of women who took maternity Management Staff 247 3975 leave was 8 women out of which Non Management Staff 44 3567 5 have returned to work after parental leave ended in first quarter of 2017, No. of training Hours for Management Staff 126 2417 1 has resigned and 2 others are still on No. of training Hours for non management Staff 45 2286 leave. Thus Return to work rate is 250%. There were 2 women who availed their In the reporting year, we have also hired employees on contractual/third party/casual maternity leave in 2015 but returned to basis: work in the 2016 after maternity leave ended and both are still employed with Table 7.2.2 the company. This leave facility is not Category of Employees No. of employees open to men. (GRI 401-3) Retainers / Advisors 43 Employee benefits and schemes Subcontracted Employees 0 As per our company policies, we do not Third Party Employees 8436 provide the same employment benefits Casual Employees 29 to temporary or part-time staff as to Total 8508 full time or permanent staff. However, the benefits provided to temporary and part-time employees are competitive New Hires (GRI 401-1) with local market practice. To provide Table 7.2.3 general welfare to full-time employees and their families, ACC offers several Age-wise (years) Female Male schemes covering education, healthcare, <30 7 140 retirement benefits, loans, disability 30-50 9 178 and invalidity coverage and financial >50 2 8 assistance. (GRI 401-2) Total 18 326
80 Sustainable Development Report 2016 Employee Turnover (GRI 401-1) various workshops and activities at all Table 7.2.4 locations for the benefit of all employees and contract labour. The values are Age (years) Male Female recommended to be demonstrated with <30 195 34 Agility, Collaboration and Empowerment 30-50 204 16 (ACE) - also a new internal motto adopted for desirable behaviours. Along with the >50 440 9 new set of values, a new Performance Management System (PMS} has also been For employees in cement plants, annual total compensation for the put in place. The new PMS is designed in the company provides the following organization’s chief executives to the such a way that Health & Safety and our facilities: median percentage increase in annual CRISP core values are directly embedded total compensation for all employees in • Furnished and unfurnished into individual objectives. This means the same year was 3.2 accommodation within our townships, the focus is now both on what we do based on their entitlement and how we do it. This approach will help A minimum notice period of 15 days to one us deliver sustainable success across • Excellent schools which are often month is typically provided to employees the business and shape the culture we the best in the district and provide and their elected representatives prior to need going forward in such a dynamic subsidized education for children of the implementation of any operational competitive market. employees. changes of significance that could substantially affect them. (GRI 402-1) • Well-equipped health care centre with PMS is oriented to encourage people to qualified medical staff and facilities. innovate and have opportunities to grow, Strengthening core values and develop and realize their potential. People performance management At ACC an employee retires on will be able to clearly relate how their superannuation after reaching the age ACC is respected for its strong values efforts contribute to the overall business of 60 years. All permanent employees and ethics which are embedded in its bringing in a performance mindset. are entitled to retirement benefits, in corporate culture. During the year, the It is grounded in informal ongoing compliance with statutory requirements, Company adopted a new set of core conversation rather than formal staged comprising leave encashment, provident values aligned with those introduced by meetings. We expect that this change fund scheme, Officers’ Superannuation the LafargeHolcim group worldwide. The will impact everyone in the organization Fund, gratuity, additional gratuity as new code is abbreviated simply as CRISP, and will also promote our efforts on the per entitlements and also any amounts an acronym that enjoins emphasis on type of company we want to build. Our due under the National Pension Scheme five distinct values viz. Customer, Results, aim is that this new approach supports where the employee had opted to Integrity, Sustainability and People which a common uniform company culture be a member. The employee receives now form the basic dimensions of the and increases performance of our people advance notice of retirement one year high performance culture the Company and team. Evaluation cannot simply ahead of the date of retirement. No wants its employees to demonstrate be based on numbers; value driven specific training is given to enhance the in all their actions. These values were observable behaviour should support the outgoing employee’s post-retirement cascaded in the Organization through achievement of targets too. employability; however we do provide useful advice on leading a healthy life and investing the retirement benefits gainfully. (GRI 404-2 and GRI 201-3)
In 2016 expenditure on employee’s salaries and benefits representing about 7% of revenue from operations amounted to ` 778 crore. The ratio of the annual total compensation for the organization’s highest paid individual to the median annual total compensation for all other employees was 157. The ratio of the percentage increase in
Sustainable Development Report 2016 81 7.2 People & Employment
In the reporting year 100% of employees have undergone individual performance appraisal. (GRI 404-3)
Table 7.2.5
Annual Performance Total Male Female Managers who Received annual performance 3975 247 Non- management employees who received 3567 44 annual performance (as per LH social Survey)
Labour/ Industrial Relations of individual development plans for The Company continued to enjoy the sales team. These interventions peaceful industrial relations during have enabled the Company to create the year. ACC is known for its best succession plans for leadership positions in class workplace practices that has so that the Company’s talent pipeline is ensured 81 years of industrial harmony, kept ready to meet future requirements considered to be one of the best in the and contingencies. country. The Company is proud of its Talent development efforts are also work culture which emphasizes safety, made in respect of Shopfloor Associates high productivity, good health, quality of with interventions to help build up- life and overall wellbeing of employees. skilling and multi-tasking capabilities. In 2O16, an amicable settlement was reached with Pragatisheel Cement The total amount which was spent during the year on training and capacity Shramik Sangathan (PCSS), a trade enhancement was ` 2.9 Crore. (GRI 404-1,2) union representing a section of contract workers in the old Jamul Plant. The Table 7.2.6 settlement paved the way to resolve their long pending issue in a cordial and Number of Training Hours ACC mutually beneficial manner. Male Female For Health and safety 219749 1408 Training and Education For IT training 1250 100 Several initiatives were undertaken to identify, develop and nurture talent For Management skills 34346 2039 at all levels within the organization For Environment & sustainability 5110 250 through various training programmes Anti-corruption policies & procedures 446 12 and exposure to make them future ready Other Trainings 32138 1522 for various positions in the Organization. A leadership convention was conducted in 2016 to transform the leadership team In the reporting year average training People Processes in the Manufacturing function. Similarly hours was 17.6 per employee The company has clearly stated for the Sales & Marketing function an guidelines for all major people While there is no specific training on assessment was undertaken of the front processes such as recruitment, Human Rights related issues, much line sales team with a view to benchmark separation, career development, of these aspects are covered in the individuals against a global high performance appraisal, professional company’s Code of Business Conduct performer for that role. This behaviour that all management staff are required and employee ethics and Code of and skill assessment was completed for to study as a matter of self-training. Business Conduct. The company’s 1,036 sales profiles during the year 2016. Security personnel also undergo specific people policies and processes highlight The assessment helped in understanding training relevant to their scope of equal opportunities to all and there key motivators that drive performance work including on relevant aspects of is no discrimination with regard and retention, enabling the preparation human rights. to gender, caste, creed, ideology or
82 Sustainable Development Report 2016 other opinion, whether social, Diversity and Equal opportunity political or religious. As a result, ACC The diversity of our workforce is employees are drawn from all parts important and therefore concerted of the country representing different efforts have been made to achieve ethnic, cultural and religious diversity and deliver sustainable backgrounds. performance, particularly so that there is a gender-balance, and inclusive A two day “Train the Trainer” workshop work environment where diverse was designed and conducted by talent can contribute to superior ACC-Ambuja Leadership Academy business results. Though gender (AALA) on July 28 - 29, 2016 to build diversity is an area where we have champions of our core values by not made significant improvement as enabling them to get a thorough the nature of our business requires understanding of these values and working/living in a remote location how they can help build organization which could be challenging, we culture. A Key highlight of the employ more women at our offices as workshop was the use of case studies compared to plant. However, we are We also care for those on fringes or those from day to day work life at ACC progressively working towards this placed at any kind of disadvantage in and group activities along with to create a better environment for comparison with the rest of society at informative videos. women to work at our sites. (GRI 405-1) large due to force of circumstances such as disability. Therefore we work towards Table 7.2.7 empowering differently-abled people so Total that they can realize their true potential. In 2016 our total workforce included 20 Age Group Male Female such employees. <30 1409 129 30 - 50 3792 127 Market Presence Nearly all of the senior management >50 2319 57 staff (functional heads) is hired locally Total 7520 313 that is, within the country. (GRI 202-2) In (GRI 405-2) fact shop floor and office associates, who are non-management staff, at most of Table 7.2.8 our operations are drawn from the host community itself or from its vicinity. Our Type of Employees Ratio of basic salary of remuneration is consistently higher than men to women the stipulated minimum wage levels at Management Staff (Base salary) 1.2 all locations. The ratio of the standard Management Staff (Base salary + bonus etc) 1.2 entry level wage compared to the local Non-Management Staff (Base) 1.0 minimum wage is 1.81 (GRI- 202-1)
Sustainable Development Report 2016 83 7.3 Human Rights
Our Code of Business Conduct together Freedom of Association and with HR policies and procedures are Collective Bargaining intended to ensure that we comply We respect and comply fully with all with local laws and regulations in legal requirements in regards to union relation to compensation and dismissal, membership and collective bargaining. recruitment and promotion, working During 2016, 100% of the non hours, equal opportunity, diversity, anti- management staff Shop Floor and Office discrimination, and other benefits and Associates categories were covered by welfare in the markets. We comply fully collective bargaining agreement which with any local legal requirements with includes the notice period and provisions respect to minimum wage. In practice, for consultation and negotiation. our policies and remuneration and There were no complaints about benefits often significantly exceed local labour practices. (GRI 402-1; GRI 407-1, The Company is an legal requirements. GRI 102-41) equal opportunity Non - Discrimination & Harassment provider and Child and Forced Labour The Company is an equal opportunity We strongly prohibit the employment consciously strives provider and consciously strives to of child, forced or compulsory labour build a work culture that promotes the in any of our operations which is to build a work dignity of all employees. As required very well stipulated in our company’s under the Sexual Harassment of culture that promotes Code of Business Conduct. We also Women at Workplace (Prevention, the dignity of all ensure that none of our suppliers Prohibition and Redressal) Act, 2013 engage in employment of child, forced employees and Rules framed thereunder, the or compulsory labour. In 2016, no Company has implemented a policy on breach of laws or violation has been prevention, prohibition and redressal discovered in any of these areas where of sexual harassment at the workplace. any of our operations or suppliers was All women - permanent, temporary or found to have significant risk of child contractual, including service providers labour or forced or compulsory labour. - are covered under the policy. This has (GRI 408-1,409-1) been widely communicated internally and is uploaded on the Company’s Security Practices intranet portal. An internal Committee comprising four management staff is In 2016, company has employed total in place which includes three women 42 security staff and all of them have to redress complaints relating to been trained in human right aspects sexual harassment. Besides in each of which are mentioned in our company’s the units there is one nodal person to Code of Conduct. Human Rights receive and forward complaints to the training is also applicable to third “First Instance Person (FIP) who is a party organizations providing security woman” or directly to the Committee. personnel. We are developing a During the year the Company received comprehensive training module on one complaint which was investigated human rights which will be rolled out in and closed within 90 days. Awareness the year 2017. (GRI 410-1) programmes were conducted across the Company to sensitize employees to Rights of Indigenous Peoples uphold the dignity of their colleagues at ACC respects local government the workplace, particularly with respect regulations on provisions of rights to prevention of sexual harassment. A of indigenous people. In 2016, ACC few employees also attended training had no incidents of violations programmes conducted by an external involving rights of indigenous people. agency. (GRI 406-1) (GRI 411-1)
84 Sustainable Development Report 2016 Human Rights Assessment Our approach to managing human rights is aligned to the internationally recognized UN Guiding Principles on Business and Human Rights. Though we have not conducted any human right assessments in 2016 but in coming years, we are planning to roll out Human Rights programme for all our operations. (GRI 412-1)
During the year under review, no cases of Human Rights violation (viz. incidence of child labour, forced or compulsory labour, etc.) were recorded in our operations.
Sustainable Development Report 2016 85 7.4 Community Development & Social Responsibility
ACC has been known for its commitment In 2016, ACC reached out to almost to National Development Goals. The half a million people residing in 200 company continuously engages with the villages and 8 towns spread across communities living close to its operations fourteen states of India. ACC’s CSR many of which are situated in remote agenda is structured around four areas of the country. The Company’s thematic areas, Livelihood, Education, CSR and community development Water, Sanitation & Health, Rural interventions particularly focus on culture, Sports & Road Safety. These are In 2016, ACC reached development aspects that benefit the categorized under ten focused project vulnerable and marginalized sections of interventions namely: out to almost half a society. Livelihood - i) DISHA (youth million people residing employability), ii) LEISA (Low external In 2016, ACC maintained its position of input for Sustainable Agriculture), in 200 villages and 8 th 12 rank among 100 top listed companies iii) Swavlamban (women empowerment), towns spread across of India, as per an annual CSR ranking Education iv) Vidya Uktarsh (quality fourteen states of initiative done by Economic Times elementary education), v) Vidyasaarathi and Indian Institute of Management, (merit scholarships), WASH vi) Arogyam India Udaipur. ACC won the inaugural ‘ICSI (community health), vii) Sampoorn CSR Excellence Awards 2016’ instituted Swachhata (open defecation free by the Institute of Company Secretaries villages), viii) Sanrakshit Paryavaran of India. The company was also awarded (biodiversity & environment), and the prestigious CII-ITC Corporate Rural Sports & Culture - ix) Drona, Excellence Award 2016 for ‘Outstanding x) #SaveKidsLives. Accomplishment’ in Sustainable Development which evaluates CSR The CSR team engaged with a wide activities as well. These recognitions range of stakeholders in the host speak volumes for the company’s social communities with well-structured engagements that began much before CSR projects. All these projects follow the term corporate social responsibility a bottom-up planning process, that was even coined. begins with a needs assessment by an
86 Sustainable Development Report 2016 independent third party organization the establishment of 129 new Self Help provided 4771 persons with counseling, using participatory rural appraisal (PRA) Groups (SHGs) while existing 1233 testing and treatment for HIV/AIDS tools to develop a village level microplan. SHGs were trained for institutional while more than 20000 people were strengthening; a number of new micro- screened during the year. A Community Advisory Panel (CAP), enterprises were initiated. A set of comprising representatives and opinion SHGs were assisted with formulation of The Company has conducted impact leaders of the community is nominated federations and obtaining registrations assessments of its CSR initiatives at plant locations to facilitate inclusive for them. through Social Audit process. Third party project planning, information sharing Social Audit by social sector experts from and participatory implementation. Enhancement of quality education is outside the company has brought more Projects are planned in a comprehensive an important focus area. During the credibility to the company’s initiatives. manner in consultation with CAPs, which year support for quality education Strong systems and processes in CSR are then implemented by the company’s was provided to 239 schools in our have earned us accolades. All fourteen in-house team in partnership with neighbourhood villages. Students in manufacturing plant locations of ACC carefully selected partners such as NGOs, the final years of school and college were covered through the Social Audit Academic Institutions, Corporates and education were groomed for preparing Process which involved people from Government organizations along with for competitive exams. Basic as well different sectors to examine annual inputs and guidance from the CAP. After as advanced computer education was evaluations by way of rigorous field visits projects are approved and launched, made available to the young boys and and secondary data analysis. The social quarterly meetings are held with the CAP girls from the communities. In addition audit reports are available in public. to review progress and suggest course to this, remedial classes for poor correction. performing students, career counseling, We have devised a mechanism to communication and interpersonal address community grievances Community management principles skills were provided to students from which may be routed to us in the are built into all the CSR projects from communities. Modern methods of following ways: the needs assessment stage to project learning such as smart classes and completion. Capacity building and interactive kiosks benefitted students a) Community Advisory Panels institutional sustainability are two in 70 rural schools. Scholarships were at each plant location that integral components of all CSR projects. awarded to 465 meritorious students comprise representatives belonging to weaker sections of society. from stakeholder groups of The Company engages with all sections Through ‘ACC ki Ladli’, an initiative the location as well as plant of the host communities to develop undertaken in partnership with the management; the CAP meets micro plans using participatory methods company’s channel partners to provide on a regular basis when they of planning. Individual projects are education to girl children who had highlight community issues designed to address the needs of the dropped-out; 1,495 girls from 50 villages and needs and also review host communities. Conscious efforts were thus benefitted. ongoing CSR interventions are made to give priority to the landless, b) Direct approach to local farmers with small and marginal land ACC continued to support seven management. Members of the holdings, women-headed households government-run Industrial Training community may also write to and other marginalized sections in the Institutes (ITI), under the Public Private the local plant management or community. Partnership (PPP) Scheme with Ministry the corporate office of Labour and Employment, Government In 2016, the total CSR expenditure of India. In this way we were successful in c) If any internal and external incurred was ` 22.27 crore which is addressing the needs of 36,709 students. stakeholders have any higher than the statutory requirement of grievance, they may 2% of the average profit of the last three Our health and nutrition initiatives also write to e-mail id: years. benefitted 28,566 people. About 9,731 [email protected] children received access to better health About 4250 unemployed youth attended and nutrition services through support skill development training programmes provided to 201 Aanganwadi centres. and received job placements in various Two Anti Retroviral Treatment (ART) manufacturing and service sector centers established in 2006 and 2007 enterprises. Support was provided for by ACC, at Karnataka and Tamil Nadu,
Sustainable Development Report 2016 87 7.4 Community Development & Social Responsibility
Indigenous communities are present at one of our locations. However there are no operations at any of the locations with significant actual and potential negative impacts on local communities.
In 2016, ACC’s CSR team has undertaken a range of CSR interventions across the country through its major project initiatives. Expenditure corresponding to these themes is as mentioned in Table 7.4.1.
Table 7.4.1
Expenditure S. No. ACC Thematic Projects (in ` Crore) 1 ACC DISHA (Skill Development of Youth) 2.80 2 ACC- Low External Input Sustainable Agriculture (LIESA) 3.81 3 ACC - Swavlamban 2.26 (Women Empowerment & Micro Enterprises) 4 ACC Vidya Utkarsh (Quality of Elementary Education) 4.13 5 ACC Vidyasaarathi 0.38 (Online Scholarship for Higher Education) 6 ACC-Arogyam (Preventive Health) 2.67 7 ACC-Sampoorn Swachhata 3.70 (Open Defecation Free & Hygiene) 8 ACC Sanrakshit Paryavaran 1.89 (Natural Resource Management) 9 ACC - Drona (Promotion of Local Sports, Art & Culture) 0.63 Total 22.27
88 Sustainable Development Report 2016 Kudithini helps school children There are 15 government schools with ~3000 students in the neighbourhood of ACC Kudithini. These schools faced issues of infrastructure as well as the quality of education. While the School’s management awaited assistance, the plant’s CSR team identified a potential partner in the Shikshana Foundation which had run successful experiments in schools at Hubli. In a proactive steps, the CSR team organized an exposure visit of the Kudithini school’s management, teachers and opinion leaders to Hubli to get a first-hand view of the work done by the Foundation.
Encouraged to replicate the experiment in Kudithini the team sought approvals for the schemes from the DDPI (Deputy Director of Public Instructions) and Block Education officer (BEO), who initiated facilitating correspondence with the concerned schools.
The Shikshana model looks at holistic development of the children and teaching with fun to involve the children completely. It was decided to initiate the project as a pilot in 5 schools and then replicate it in other schools. Five Vidya Volunteers were identified who had the qualification and aptitude to implement the model. Shikshana Foundation agreed to provide technical support by sending one of their experts bi-weekly and supply educational material. The Shikshana representative facilitated a baseline survey to chalk out the implementation plan. Baseline survey revealed that students were lagging in languages be it Kannada or English, science as well as numeric skills corresponding to their grades and age. Poor students were provided more attention and extra hour long classes were held by teachers and Vidya volunteers, pre-post school timings.
The model not only enhanced teaching quality in the classes but also involved the students in extracurricular activities such as sports, cultural activities,
Sustainable Development Report 2016 89 7.4 Community Development & Social Responsibility
plantation, neighbourhood cleanliness, communication skills through oratory and handwriting competition, exhibitions, organizing skits & plays and development of leadership skills through games.
The Shikshana model of learning has helped in improving writing skills in Kannada and English, better understanding of the concepts of Mathematics and Science and in general increasing the pass percentage of students in all grades, notably of Class 10 board examinations. The Shikshana model has made learning easier for students. One child is designing energy efficient projects with solar power usage. Two of the five schools have got District Information System for Education (DISE) score of 10/10 and one of the school received Green School Award.
Table 7.4.2
Analysis of Education Intervention – Before & After 4th to 8th Class S.N. Village No. of Total Before Intervention After Intervention Students Girls Boys A+ A B+ B C+ C A+ A B+ B C+ C 1 Ambedkar Nagar, Kudithini 53 59 112 0 27 11 36 0 27 20 18 25 26 12 0 2 Chalavadi Keri School, Kudithini 64 58 122 0 54 0 50 0 0 23 37 29 15 0 0 3 Government UP School, 118 98 216 0 58 0 124 0 2 31 40 73 39 1 0 Veniveerapura 4 Government UP School, 46 32 78 0 15 0 50 0 0 6 22 11 26 0 0 Siddammanahalli Total 281 247 528 0 154 11 260 0 29 80 117 138 106 13 0
ACC VidyaSaarathi - Access to complex web solutions including pursuing education in Diploma & ITI, Scholarship through Digital National Pension System, Registrar Graduation (10+2+3), Engineering Platform & Authentication Service Agency for (10+2+4) and Post Graduation. The The CSR Committee of ACC’s Board Aadhaar, Tax Information Network for scholarship application window was decided that the company should initiate Central Board of Direct Taxes among kept open for 45 days when over 500 a national level scholarship scheme others. applications were received. In all 100 for deserving meritorious candidates scholarships were awarded, of which from rural areas in the vicinity of the The Web Based Vidya Saarthi Portal more than half went to girls. All education company’s operations. Accordingly the provides an online platform that helps institutes in the district were registered Vidyasaarthi initiative was devised. manage and analyse large data from on the Vidyasaarathi portal which helped Launching and managing a scholarship student applications across the country disbursal of the scholarship directly into scheme across multi locations proved with timely reverts to enable award the education institutes’ bank account to be a complex task as it involved of scholarship. The online system also where the student is admitted. tight time-lines, processing voluminous ensures transparency in scholarship data, enabling award decisions with application processing and real time National Roll Out transparency and providing ease of status tracking of application. The success of the pilot, led to the application to thousands of students. launch of Vidyasaarathi nationally The use of a web-based portal to manage Pilot Launch on 12th January 2017 on Yuva Divas. end-to-end scholarship application and The pilot for Vidyasaarthi scholarships (Youth Day). All manufacturing plants award process helped to successfully was launched on 26th February 2016 of ACC organized their respective launch launch and administer the scholarship in Chandrapur district by the District in the presence of district officials, scheme. In NSDL the team found a Collector, in the presence local local community leaders, heads of reliable technology partner to power community leaders, Principals of reputed educational institutions in the districts, a web-based scholarship application colleges in the district and ACC Chanda ACC Plant management and students and management solution. NSDL e-Gov plant management. ACC Vidyasaarthi from the neighbourhood. The window currently manages some of India’s Scholarship pilot covered the students for application has been kept open
90 Sustainable Development Report 2016 for 6 months and final award of the with 186 kg of ‘Paddy Dhanya Seeds of paddy cultivation, farmers require scholarship will be announced on 8th (DRH-836)’, for demonstration of SRI 10-15 kgs of paddy to be able to get a September 2017 which coincides with technique. The farmers apportioned a harvest of 10-12 quintals/acre. However the International Literacy Day. For this portion of their land for cultivation of the with the introduction of SRI technique, year’s round, a total of 1200 students are paddy crop in accordance with the SRI with just 2 kg of paddy, the farmer is to be awarded this scholarship. technique. able to take a yield of around 18-20 quintals/acre. In addition to increased ACC Vidyasaarathi is well poised Volunteer farmers collectively spared yield, an increase in spacing under to provide some of the brightest 35.49 acres of their land for SRI SRI technique reduced the incidences of but under-financed youth from our demonstration. They were supported pest outbreaks which is very common host communities with educational by providing paddy seeds and helping in paddy cultivated via conventional opportunities which otherwise would develop nursery beds for raising methods. The quality of seeds also not have been open to them. The online seedlings. CSR and NGO teams were improved significantly. The success of solution is also a template which other in regular touch with all farmers the early adoptee has drawn the companies can replicate. participating in the project. attention of other farmers and many have decided to adopt the SRI method KYMORE - PADDY CULTIVATION It was interesting to see that women in the next crop season. The host community in the villages pro-actively participated in all the around ACC Kymore Cement plant are work related to paddy cultivation A detailed report of our CSR activities primarily dependent on agriculture for under SRI. The total harvest of paddy in 2016 is available in our Annual their livelihood. Most farmers in the area demonstration under the project has Report 2016 in our website at http:// have marginal land holdings in which been 601 quintals, which translates www.acclimited.com/newsite/annual- they cultivate paddy and wheat as the to an average crop yield of 17 quintals report-2016/Annexures-to-Directors- main crops. Two consecutive years of per acre. Under the traditional method Report.pdf drought and water scarcity, adversely affected paddy cultivation. The challenge clearly lay in improving farm.
This called for an affordable yet effective technology that is amenable to farmers, has low input costs, easy to learn, low water intensive and scale neutral. The System of Rice Intensification (SRI) technique met these criteria and was selected for promotion among farmers in these villages. The System of Rice Intensification (SRI) is a globally proven technique for cultivating paddy which increases yield, saves water, reduces production costs, brings down the probability of pest attack and increases income. The CSR team along with HARITIKA (implementation partner) organized the farmers into 17 farmer clubs, provided necessary training and technical inputs.
Technical inputs were provided by Agriculture Technology Management Agency (ATMA), a registered society setup by the government for technology dissemination at the district level. In July 2016, 97 farmers were supported
Sustainable Development Report 2016 91 8.0
92 Sustainable Development Report 2016 Annexures
8.1 Assurance Statement
8.2 Glossary
8.3 GRI Standards - In Accordance “Comprehensive” - Content Index
Sustainable Development Report 2016 93 8.1 Assurance Statement
94 Sustainable Development Report 2016 Sustainable Development Report 2016 95 8.2 Glossary
ABCD - Anti Bribery and Corruption Concrete - A building material produced FICCI - Federation of Indian Chambers of Directive by mixing cement, water and aggregates Commerce and Industry, an association comprising sand and gravel or crushed of business organizations in India Alternative Fuels and Raw Materials or stone. Resources (AFR) - Inputs derived from Fly Ash - Waste particulate residue from waste streams contributing energy and/ Co-processing - The act of adapting an thermal power plants or incineration or resource recovery existing industrial process in a single plants combined operation, whereby certain Bag House - Air pollution control so-called ‘waste’ materials may be put to Fossil Fuels - Non-renewable carbon- equipment that removes particulates use as alternative fuel or raw material in based fuels like coal and oil etc. from flue gas released in manufacturing cement kilns, dryers and captive power processes Geocycle - The brand name under which plants Holcim offers sustainable solutions for Biodiversity - Refers to the variety of life Corporate Social Responsibility (CSR) - In waste management. on earth - the different animals, plants a wider context the term indicates the Global Reporting Initiative (GRI) - An and micro-organisms, their genes and commitment of business to contribute to the ecosystems of which they are a part. International framework recommended sustainable development, working with for reporting progress against Blended Cement - Hydraulic cements various stakeholders like employees, Sustainable Development. In May 2013, consisting essentially of an intimate their families, the local community and GRI released the fourth generation of its and uniform blend of ordinary Portland society at large to improve their quality Guidelines - G4. This report is based on cement with either slag or fly ash of life. We generally use this term to refer G4 guidelines. specifically to community development Captive Power Plants (CPP) - Power plants and engagements. GPS - Global Positioning System or Generation Sets set up by an industry to meet its own power requirements. Central Pollution Control Board (CPCB) - A Green Building - A Building which uses statutory organization under the Ministry less water, optimizes energy efficiency, Carbon Footprint - The total set of of Environment and Forests responsible conserves natural resources, generates greenhouse gas emissions caused by an for maintaining national standards less waste and provides healthier organization. under a variety of environmental laws, in spaces for occupants, as compared to a consultation with zonal offices, and local conventional building. Cement - a building material made by governments. grinding calcined limestone and clay to Greenhouse Gases - Gases that absorb a fine powder. It acts as a binding agent Employee Lost Time Injury - A work- and emit radiation within the thermal when mixed with sand, gravel or crushed related injury after which the injured infrared range of the earth’s atmosphere. stone and water to make concrete. person cannot work for at least one full IUCN - The International Union for shift/full working day. Cement Sustainability Initiative (CSI) Conservation of Nature, an international - a global group of 24 major cement Employee Lost Time Injury Frequency organization working for natural producers set up under the World Rate - refers to the rate of occurrence resource conservation. Business Council for Sustainable of workplace incidents that result in an Kiln - Large rotating cylindrical industrial Development for the pursuit of issues employee’s inability to work the next oven used in the manufacture of cement concerning sustainable development in full work day. Calculated as the number clinker. In this report, “kiln” always the cement sector. of lost-time injuries within a given refers to a rotary kiln. A cement kiln is accounting period relative to the total Clinker - An intermediate product in believed to be among the largest moving number of hours worked in the same cement manufacture that is produced machines. accounting period. by sintering and fast-cooling ground Limestone - A sedimentary rock limestone Employee Lost Working days - Those composed of calcium carbonate used as days on which, because of occupational Clinker Factor - The percentage of clinker the main input in cement manufacture. injury or illness, the employee was away in cement from work or limited to restricted work Material Aspects - Topics that reflect Community Advisory Panel (CAP) - An activity. the organization’s significant economic, informal but representative group environmental, and social impacts EthicalView Reporting (EVR) - the of persons selected as accurately or those that substantially influence company’s new vigil mechanism to report representing views of the community in stakeholders’ assessment and decisions. concerns about unethical behaviour, matters concerning its social needs and frauds and violation of the Company’s development schemes Code of Conduct and Ethics Policy
96 Sustainable Development Report 2016 Materiality - The threshold at which an Public - Private Partnership (PPP) - A Sustainable Construction - Building issue or indicator becomes sufficiently government service or private business in a way that is socially, economically, important that it should be reported. venture which is funded and operated environmentally, functionally and through a partnership of government and aesthetically balanced to meet today’s MT - Metric Tonne one or more private sector companies. needs and to provide and conserve resources for future generations. MW - Megawatt, a unit of power equal to Radio Frequency Identification Device one million watts (RFID) - The wireless non-contact use of Sustainable Development - Development Needs Assessment - A systematic process radio-frequency electromagnetic fields that meets the needs of the present to acquire an accurate understanding of to transfer data, for the purposes of without compromising the ability of a community’s needs and priorities in automatically identifying and tracking future generations to meet their own the context of its economic and social tags attached to objects. needs. SD is the acronym we use at ACC. development Rain Water Harvesting (RWH) - Sustainability Reporting - the practice
NOX - A generic term for Nitrogen oxides, Techniques used for collecting and of measuring, disclosing, and being usually refers to it as an air pollutant. storing, and using rainwater accountable to internal and external stakeholders for organizational NPS - Net Promoter Score, an index used Ready Mixed Concrete (RMX) - Concrete performance towards the goal of to measure the willingness of customers specifically manufactured for delivery to sustainable development to recommend a company’s products or construction sites in a freshly mixed and services to others. Also used as a proxy to plastic or unhardened state. RMX is the Thermal Substitution Rate (TSR) - The gauge customer satisfaction. acronym we use at ACC, though most amount of energy used from alternative others refer to it as RMC. fuels as a percentage of the total energy Ordinary Portland Cement (OPC) - consumed in the process. Cement made by inter-grinding clinker SA8000 - It is an auditable certification and gypsum. standard that encourages organizations UN Global Compact (UNGC) - A UN to develop, maintain, and apply socially initiative to encourage global businesses Perform Achieve Trade (PAT) Scheme - A acceptable practices in the workplace. to adopt ten principles covering Human trading scheme aimed to reduce energy Rights, Labour Standards, Environment consumption in industries across India Self-Help Group (SHG) - A village- and Anti-corruption. using market oriented mechanisms. The based voluntary support group usually scheme is designed and implemented composed of 10-20 local women or men VCCE - Value Creation in Competitive by the Bureau of Energy Efficiency (BEE), who come together to address a shared Environment cause or objective. under the Ministry of Power, India. Vertical Roller Mill (VRM) - A type of Profit After Tax (PAT) - It is the net profit Slag - A non-metallic product consisting grinding machine used to grind materials earned by the company after deducting essentially of glass containing silicates, into extremely fine powder. A VRM is now all expenses like interest, depreciation alumino-silicates of lime and other bases. recognized as standard energy efficient and tax. It is obtained as a waste by-product in equipment to grind clinker into cement. the manufacture of pig iron in a blast Personal Protective Equipment (PPE) - furnace or electric furnace. Visible Personal Commitment (VPC) - a Protective clothing, helmets, goggles, or tool to engage with shop floor employees other garments or equipment designed SO2 - The chemical term for sulphur on safety matters and seek feedback to protect the wearer’s body from injury. dioxide, usually an air pollutant that plays a critical role in global warming. Waste Heat Recovery - Generating power Petcoke - Petroleum coke which is a by utilizing waste heat from preheater carbon solid derived from oil refinery Stakeholder - Individuals or groups and cooler gases. coker units or other cracking processes. whose actions significantly affect or can be affected by an organization’s World Business Council for Sustainable Portland Pozzolana Cement (PPC) - activities, products or services. Development (WBCSD) - A CEO-led Cement produced by inter-grinding a organization of forward-thinking pozzolanic material such as fly-ash with Stakeholder Engagement - The process companies that galvanizes the global clinker and gypsum. by which an organization involves its business community to create a stakeholders, that is, the people who sustainable future for business, society Portland Slag Cement (PSC) - Cement may be affected by its decisions or can and the environment. produced by inter-grinding slag with influence the implementation of its clinker and gypsum. decisions.
Sustainable Development Report 2016 97 8.3 GRI Standards - In Accordance “Comprehensive” - Content Index
GRI Indicator General Disclosures Chapter Page number 102-1 Name of the organization 1.1, 2.1 1, 6 102-2 Activities, brands, products, and services 2.2 6, 10 102-3 Location of headquarters Inside Back Cover 98 102-4 Location of operations Inside Back Cover 98 102-5 Ownership and legal form 1.1, 2.4 1, 14 102-6 Markets served 2.2, 2.3 10, 12 102-7 Scale of the organization 2.1 6 102-8 Information on employees and other workers 7.2 80 102-9 Supply chain 5.3 49 102-10 Significant changes to the organization and its supply chain 2.4 14, 102-11 Precautionary Principle or approach 3.3 32 102-12 External initiatives 3.1 28 102-13 Membership of associations 3.1 28, 29 102-14 Statement from senior decision-maker 1.2 2 102-15 Key impacts, risks, and opportunities 3.3 32 102-16 Values, principles, standards, and norms of behaviour 2.4 14 102-17 Mechanisms for advice and concerns about ethics 2.4 18, 19 102-18 Governance structure 2.4 14 102-19 Delegating authority 2.4 16 102-20 Executive-level responsibility for economic, environmental, and social topics 2.4 16 102-21 Consulting stakeholders on economic, environmental, and social topics 3.2 30 102-22 Composition of the highest governance body and its committees 2.4 14-15 102-23 Chair of the highest governance body 1.1, 2.4 1,14, 15 102-24 Nominating and selecting the highest governance body 2.4 15 102-25 Conflicts of interest 2.4 16 102-26 Role of highest governance body in setting purpose, values, and strategy 2.4 14,15 102-27 Collective knowledge of highest governance body 2.4 15 102-28 Evaluating the highest governance body’s performance 2.4 15 102-29 Identifying and managing economic, environmental, and social impacts 3.3 16, 32 102-30 Effectiveness of risk management processes 3.3 32, 33 102-31 Review of economic, environmental, and social topics 3.3 16, 33 102-32 Highest governance body’s role in sustainability reporting 2.4 16 102-33 Communicating critical concerns 2.4 16 102-34 Nature and total number of critical concerns 2.4 16 102-35 Remuneration policies 2.4 15 102-36 Process for determining remuneration 2.4 15 102-37 Stakeholders’ involvement in remuneration 2.4 15 102-38 Annual total compensation ratio 7.2 81 102-39 Percentage increase in annual total compensation ratio 7.2 81 102-40 List of stakeholder groups 3.1 24
98 Sustainable Development Report 2016 GRI Indicator General Disclosures Chapter Page number 102-41 Collective bargaining agreements 7.3 84 102-42 Identifying and selecting stakeholders 3.1 24 102-43 Approach to stakeholder engagement 3.1 25 102-44 Key topics and concerns raised 3.1 25-28 102-45 Entities included in the consolidated financial statements 5.1 44 102-46 Defining report content and topic Boundaries 3.2, 4.1 30, 38 102-47 List of material topics 3.2 30 102-48 Restatements of information 4.1 38 102-49 Changes in reporting 4.1 38 102-50 Reporting period 4.1 38 102-51 Date of most recent report 4.1 38 102-52 Reporting cycle 4.1 38 102-53 Contact point for questions regarding the report 4.1 39 102-54 Claims of reporting in accordance with the GRI Standards 4.1 38 102-55 GRI content index 8.3 98 102-56 External assurance 8.1 96 Management Approach In each 103-1 Explanation of the material topic and its Boundary respective chapter 103-2 The management approach and its components 103-3 Evaluation of the management approach Economic Performance 201-1 Direct economic value generated and distributed 5.1 46 Financial implications and other risks and opportunities due to climate 201-2 3.3 33 change 201-3 Defined benefit plan obligations and other retirement plans 7.2 80, 81 201-4 Financial assistance received from government 5.1 44 Market Presence Ratios of standard entry level wage by gender compared to local minimum 202-1 7.2 83 wage 202-2 Proportion of senior management hired from the local community 7.2 83 Indirect Economic Impacts 203-1 Infrastructure investments and services supported 7.4 88 203-2 Significant indirect economic impacts 7.4 87-91 Procurement Practices 204-1 Proportion of spending on local suppliers 5.3 50 Anti-corruption 205-1 Operations assessed for risks related to corruption 2.5 20 205-2 Communication and training about anti-corruption policies and procedures 2.5 20 205-3 Confirmed incidents of corruption and actions taken 2.5 20
Sustainable Development Report 2016 99 8.3 GRI Standards - In Accordance “Comprehensive” Content Index
GRI Indicator General Disclosures Chapter Page number Anti-competitive Behaviour Legal actions for anti-competitive behaviour, anti-trust, and monopoly 206-1 2.5 20 practices Materials 301-1 Materials used by weight or volume 6.4 64 301-2 Recycled input materials used 6.4 64 301-3 Reclaimed products and their packaging materials 6.4 65 Energy 302-1 Energy consumption within the organization 6.2 57,58 302-2 Energy consumption outside of the organization 6.2 60 302-3 Energy intensity 3.4 34 302-4 Reduction of energy consumption 6.2 55 302-5 Reductions in energy requirements of products and services 6.2 60 Water 303-1 Water withdrawal by source 6.5 67 303-2 Water sources significantly affected by withdrawal of water 6.5 67 303-3 Water recycled and reused 6.5 67 Biodiversity Operational sites owned, leased, managed in, or adjacent to, protected areas 304-1 6.6 69 and areas of high biodiversity value outside protected areas 304-2 Significant impacts of activities, products, and services on biodiversity 6.6 69 304-3 Habitats protected or restored 6.6 69 IUCN Red List species and national conservation list species with habitats in 304-4 6.6 68 areas affected by operations Emissions 305-1 Direct (Scope 1) GHG emissions 6.1 54 305-2 Energy indirect (Scope 2) GHG emissions 6.1 54 305-3 Other indirect (Scope 3) GHG emissions 6.1 54 305-4 GHG emissions intensity 6.1 54 305-5 Reduction of GHG emissions 6.1 54 305-6 Emissions of ozone-depleting substances (ODS) 6.1 55 Nitrogen oxides (NO ), sulfur oxides (SO ), and other significant air 305-7 X X 6.1 56 emissions Effluent and waste 306-1 Water discharge by quality and destination 6.7 71 306-2 Waste by type and disposal method 6.7 71 306-3 Significant spills 6.7 71 306-4 Transport of hazardous waste 6.7 71 306-5 Water bodies affected by water discharges and/or runoff 6.7 70
100 Sustainable Development Report 2016 GRI Indicator General Disclosures Chapter Page number Environmental Compliance 307-1 Non-compliance with environmental laws and regulations 6.1 56 308-1 New suppliers that were screened using environmental criteria 5.3 51 308-2 Negative environmental impacts in the supply chain and actions taken 5.3 51 Employment 401-1 New employee hires and employee turnover 7.2 80 Benefits provided to full-time employees that are not provided to emporaryt 401-2 7.2 80 or part-time employees 401-3 Parental leave 7.2 80 Labour/Management Relations 402-1 Minimum notice periods regarding operational changes 7.2 81 Occupational Health and Safety Workers representation in formal joint management - worker health and 403-1 7.1 74 safety committees Types of injury and rates of injury, occupational diseases, lost days, and 403-2 7.1 74 absenteeism, and number of work-related fatalities Workers with high incidence or high risk of diseases related to their 403-3 7.1 76 occupation 403-4 Health and safety topics covered in formal agreements with trade unions 7.1 76 Training and Education 404-1 Average hours of training per year per employee 7.2 82 404-2 Programs for upgrading employee skills and transition assistance programmes 7.2 82 Percentage of employees receiving regular performance and career 404-3 7.2 82 development reviews Diversity and Equal Opportunity 405-1 Diversity of governance bodies and employees 7.2 83 405-2 Ratio of basic salary and remuneration of women to men 7.2 83 Non-discrimination 406-1 Incidents of discrimination and corrective actions taken 7.3 84 Freedom of Association and Collective Bargaining Operations and suppliers in which the right to freedom of association and 407-1 7.3 84 collective bargaining may be at risk Child Labour 408-1 Operations and suppliers at significant risk for incidents of child labour 7.3 84 Forced or Compulsory Labour Operations and suppliers at significant risk for incidents of forced or 409-1 7.3 84 compulsory labour Security Practices 410-1 Security personnel trained in human rights policies or procedures 7.3 84
Sustainable Development Report 2016 101 8.3 GRI Standards - In Accordance “Comprehensive” Content Index
GRI Indicator General Disclosures Chapter Page number Rights of Indigenous Peoples 411-1 Incidents of violations involving rights of indigenous peoples 7.3 84 412-2 Employee training on human rights policies or procedures 7.3 84 Operations that have been subject to human rights reviews or impact 412-1 7.3 85 assessments Local Communities Operations with local community engagement, impact assessments, and 413-1 7.4 87-88 development programmes Operations with significant actual and potential negative impactson local 413-2 7.4 87-88 communities Supplier Social Assessment 414-1 New suppliers that were screened using social criteria 5.3 51 414-2 Negative social impacts in the supply chain and actions taken 5.3 51 Public Policy 415-1 Political contributions 2.5 20 Customer Health and Safety Assessment of the health and safety impacts of product and service 416-1 Not applicable Not applicable categories Incidents of non-compliance concerning the health and safety impacts of 416-2 Not applicable Not applicable products and services Marketing and Labeling 417-1 Requirements for product and service information and labeling 5.2 48 Incidents of non-compliance concerning product and service information and 417-2 2.2 11 labeling 417-3 Incidents of non-compliance concerning marketing communications 2.2 11 Customer Privacy Substantiated complaints concerning breaches of customer privacy and 418-1 Not applicable Not applicable losses of customer data Socioeconomic Compliance 419-1 Non-compliance with laws and regulations in the social and economic area 2.5 20
102 Sustainable Development Report 2016 ACC Gagal Cement Plant
ACC Wadi Cement Plant
Three of our cement plants did us proud in a global benchmarking exercise. Gagal 2, Wadi 2 and Gagal 1 cement plants ranked 6th, 17th and 19th respectively in a detailed overview of the performance of 136 integrated cement plants of the worldwide LafargeHolcim group. The structured analysis is based on a set of indices grouped along three categories viz. sustainability, efficiency and cost performance.
We welcome your suggestions and feedback on our SD Report 2016. Please write to us: [email protected]
Sustainable Development Report 2016 103 A National Footprint
Punjab Sales Units Chandigarh (2)
Rajasthan RMX Plants Lakheri Cement Plant Lucky Minmat Ltd - Subsidiary company Haryana National Limestone Company Northern Regional Sales Office, Pvt Ltd - Subsidiary company Delhi
Madhya Pradesh Sales Unit Delhi Kymore Cement Plant RMX Plants Pre-processing Platform Sumant Moolgaokar Technical Institute ACC Help Centres Jabalpur & Bhopal Sales Unit Bhopal Singhania Minerals Pvt Ltd - subsidiary company Gujarat RMX Plants
Maharashtra Chhattisgarh Corporate Office Jamul Cement Plant Chanda Cement Plant ACC Cement Technology Institute Western Regional Sales Office, Thane Sales Unit Raipur TECHPORT RMX Plants Geocycle India ACC ACL Leadership Academy Goa RMX Plants RMX Plants Sales Units Mumbai, Pune & Nagpur Karnataka ACC Mineral Resources Limited - Kudithini Cement Plant (K) Subsidiary company Thondebhavi Cement Plant (T) Kerala Bulk Cement Corporation (India) Ltd - Wadi I & Wadi II Cement Plants (W) Sales Unit Kochi Subsidiary company Pre-processing Platform Tamil Nadu Southern Regional Sales Office, Bengaluru Madukkarai Cement Plant This map is as of June 2017. It is illustrative and not Sales Units Bengaluru & Hubli Sales Unit Coimbatore drawn to scale. Andaman, Nicobar and Lakshadweep islands are not RMX Plants RMX Plants shown.
104 Sustainable Development Report 2016 Himachal Pradesh Gagal l & ll Cement Plants
Uttarakhand Sales Unit Dehradun Uttar Pradesh ACC Help Centre Dehradun Tikaria Cement Plant Sales Units Lucknow & Kanpur ACC Help Centres Kanpur, Himachal Pradesh Lucknow, Faizabad, Gorakhpur, Moradabad & Varanasi Punjab
Uttarakhand Bihar Haryana Sales Unit Patna RMX Plants
Uttar Pradesh
Rajasthan
Bihar
(S) Jharkhand Gujarat (C) West Bengal Madhya Pradesh Chhattisgarh
Jharkhand Maharashtra Odisha Chaibasa Cement Plant (C) Sindri Cement Plant (S) Sales Unit Ranchi Telangana RMX Plants
(W) West Bengal Goa Karnataka Damodhar Cement Plant Andhra Pradesh Andhra Pradesh Eastern Regional Sales Office, Kolkata (K) Vizag Cement Plant (T) Sales Units Asansol & Kolkata RMX Plants
Odisha Tamil Nadu Telangana Bargarh Cement Plant Sales Unit Secunderabad Sales Unit Bhubaneswar Kerala RMX Plants RMX Plants ACC Help Centre Bhubaneswar ACC Limited Registered Office Cement House 121, Maharshi Karve Road Mumbai 400 020, India. www.acclimited.com