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2019-20 (PDF Version) UNFOLDING THE WINGS OF CHANGE S U S T A I N A B I L I T Y R E P O R T 2 0 1 9 - 2 0 After successfully achieving most of the targets of our first roadmap, instilling a robust sustainability culture in our people and embedding sustainable practices across our processes, we are now focussing on amplifying product-led sustainability. The strategic progression stems from the fact that our products are our biggest ambassadors and the single largest touchpoint which also has the longest engagement duration. Our product-focus sustainability strategy aims to DRIVE SUSTAINABILITY BEYOND OUR OPERATIONS Like a butterfly's journey from a caterpillar to a winged beauty, through three key pillars our sustainability journey too is metamorphosing to address a new post-pandemic world, widen our horizons to positively impact more PRODUCT DESIGN & DEVELOPMENT, activities beyond our factory gates and CUSTOMER CENTRICITY AND SUPPLY CHAIN. The overarching goal is to leverage our scale as India's largest pure-play fashion and lifestyle powerhouse and demonstrate how the sustainability paradigm can be shifted from niche to mainstream and in the process contribute to global goals like SDG and further the TRANSITION national sustainability agenda through active participation in FROM PROCESS-LED TO PRODUCT-LED. programs like SU.RE. The ambition is to constantly benchmark ourselves against the best and create a rightful place for us in the league of global sustainability leaders. ABFRL SUSTAINABILITY REPORT 19/20 2.0 IN THE REPORT EXECUTIVE 01 MESSAGES RESTORING RECOGNISING REDESIGNING ECOSYSTEMS TRENDS BUSINESS COMPANY 07 PROFILE REPORTING SCOPE, BOUNDARY 12 AND FRAMEWORK SUSTAINABILITY 13 & US PERFORMANCES CORPORATE STAKEHOLDER FUTURE 22 GOVERNANCE 29 ENVIRONMENT 129 ENGAGEMENT 141 PROOFING 48 FINANCIAL 53 PEOPLE 70 SAFETY ANNEXURES SDG ASSURANCE 83 SOCIAL 155 MAPPING 158 STATEMENT PRODUCT AWARDS & GRI CONTENT 105 REPONSIBILITY 157 RECOGNITIONS 162 INDEX RESTORING ABFRL SUSTAINABILITY ECOSYSTEMS REPORT 19/20 MESSAGE FROM THE CHAIRMAN Dear Stakeholder, The outbreak of the COVID-19 pandemic has reinforced the importance of sustainable businesses. In a world facing accelerated resource depletion, sustainability is now vital for business survival. We have set an ambitious vision for the Aditya Birla Group to become the leading Indian conglomerate in sustainable business practices across operations. Towards this objective, we developed a rigorous ABG sustainability framework, which guides our businesses to perform in the resource-constrained world and be resilient in a face of uncertainties such as the COVID-19 pandemic. Aditya Birla Fashion and Retail was one of the early adopters of this framework and created a Aditya Birla Fashion and Retail comprehensive sustainability programme - 'ReEarth' which focussed on the pressing needs of the fashion was one of the early adopters of and retail sector in India. the ABG sustainability framework and With apparel contributing to around 10% of all greenhouse gas emissions, sustainability in fashion created a comprehensive sustainability retail is gradually becoming one of the industry's top priorities. Fashion being a personal statement, programme -'ReEarth' which focussed consumer attitudes towards fashion brands are increasingly being inuenced by their efforts towards on the pressing needs of the fashion sustainability. Especially those of younger consumers. and retail sector in India. ABFRL has always endeavoured to take the lead on sustainability initiatives. It was the rst Indian retailer to release a Restricted Substances List (RSL) and since 2012 This year, ABFRL accelerated the journey further by it assesses its suppliers on their adherence to the RSL. focussing on product-led sustainability strategy. It has developed an in-house 'Product Sustainability Attribute ABFRL's sustainability efforts have received Methodology' to measure and enhance product sustainability across the value chain. In this nancial national as well as global recognition. The Dow year, 47% of ABFRL products depicted at least one sustainable attribute. Jones Sustainability Index (DJSI) ranked ABFRL 8th Even in the current scenario, where COVID-19 has led globally in - Corporate Sustainability Assessment in to business disruptions, ABFRL maintains an unswerving commitment to sustainability. All efforts the textiles, apparel, and luxury goods sector. are directed towards nding innovative and creative ways to not only navigate this crisis but also identify In 2019, its product 'Earth Chinos' was selected opportunities and business needs along the way to as a case study in sustainable innovation at the keep creating more value for all stakeholders in a UN environment road testing platform. sustainable manner. We have set an ambitious vision for the Aditya Birla Group to become the leading Indian conglomerate in sustainable business Kumar Mangalam Birla Chairman, Aditya Birla Group practices across operations. 01 02 ABFRL SUSTAINABILITY REPORT 19/20 MESSAGE FROM THE MANAGING DIRECTOR Dear Stakeholder, Over the past decade, we at ABFRL, have been pioneers in driving sustainability to the forefront of the Fashion and Retail Industry. FY20 was an important milestone in our 'ReEarth' journey with the commencement of 'Sustainability 2.0'. The 'Sustainability 2.0' journey will transition from a process-led to a product-led sustainability strategy. Keeping our products as the core of our sustainability strategy, we will cover the entire product life cycle, Even during this period, our including design and development, supply chain and customer delight. This move will help us contribute people rose to the occasion and towards a low-carbon, circular and resilient Fashion and Retail Industry. In doing so, we inch closer to contribute contributed to India's fight against to meeting the Global Sustainable Development Goals (SDGs). COVID-19 by working with the We, as a responsible organisation, aim to provide Government authorities in Karnataka thought leadership and establish, disseminate and accelerate the sustainability drive in the industry. To and Odisha to convert our achieve this, we continue to strengthen our collaboration with like-minded entities like Sustainable Apparel manufacturing facilities for producing Coalition, Ellen MacArthur Foundation and Cotton 2040. Personal Protective Equipment (PPE). In the reporting year, we progressed in our intent towards building a circular economy. Our strategic We also took every possible precaution to ensure the safety of our factory staff and workers during this period. collaboration with 'Circular Apparel Innovation To meet the growing demands of consumers for safety Factory' (CAIF) is a signicant move that will drive and protection during the pandemic, our brands re- engineered their capabilities to design and produce circular business practices across India's textile and user-friendly face masks, which has been well-received. apparel industries. Our brands further entered into collaborations with reputed chemical companies and R&D organisations to launch apparels with anti-viral and anti-microbial We continue our uninching efforts towards community properties for added safety. development with our unique 'Village Development Programme' built on the Saansad Adarsh Gram Yojana Our journey has just begun and there is a lot to achieve. (SAGY) guidelines. This programme is run across It is a collaborative approach for all of us, and we believe Karnataka, Tamil Nadu and Odisha to bring about the it is crucial to develop a deep understanding of your holistic development of villages on multiple fronts such requirements – business partners, vendors, employees as education, health, livelihood, digitisation and water. and customers – to ensure sustainable growth and create meaningful impact. During the end of the nancial year, the country was struck by the pandemic, but our businesses delivered Through this sustainability report, we aim to foster a a resilient and reasonably good performance. The culture of transparency, participative development and The 'Sustainability 2.0' journey will transition from a process-led environment was challenging across most of our knowledge sharing. We look forward to your continued operating geographies and consumer demand was support and feedback. to a product-led sustainability strategy. Keeping our products as the core sluggish. of our sustainability strategy, we will cover the entire product life cycle, Ashish Dikshit Managing Director including design and development, supply chain and customer delight. Aditya Birla Fashion and Retail Limited 03 04 ABFRL SUSTAINABILITY REPORT 19/20 MESSAGE FROM THE CHIEF SUSTAINABILITY OFFICER Dear Stakeholder, Sustainability, for us at ABFRL, has evolved from achieving operational efficiency to integrating it into the value chain. Our new 'Sustainability 2.0' journey extends its focus on managing the entire product life cycle. This new approach has helped us exceed our sustainability targets in some areas while improving performance in others. We aim to give back more than what we take from our ecosystem, and constantly work to 'Regenerate, Restore and Revitalise' ecosystems and communities that we operate in. We are committed to creating a positive impact on the environment, the community and the planet through our This year, we achieved products. This nancial year, we launched digital significant milestones through dashboards across our business operations including retail, to capture sustainability KPIs. To further build a product sustainability,
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