Sustainability Report 2018-19 HPCL Continues on Its Exciting Journey of Responsible Growth, Delivering Happiness As It Moves from One Milestone to Another

Sustainability Report 2018-19 HPCL continues on its exciting journey of responsible growth, delivering happiness as it moves from one milestone to another. The key to delivering happiness lies in an organisation’s ability to grow while integrating the triple bottom line framework of sustainability – planet, people and profits. Taking leaves out of nature’s playbook literally, the cover of the Report illustrates the harmonious role of the three elements that energise the lives of millions in a land that’s witnessing the rise of a new sun of future opportunities and prosperity. As we grow and become more valuable than we have ever been, we recognise that while everything we deliver may have a value attached to it, the happiness we deliver, is priceless

Registered Office and Corporate Headquarters Marketing Headquarters Hindustan Petroleum Corporation Limited, Hindustan Petroleum Corporation Limited, Petroleum House, 17, Jamshedji Tata Road, Hindustan Bhawan, 8, Shoorji Vallabhdas Marg, Churchgate, Mumbai – 400 020, Maharashtra, India Mumbai – 400 001, Maharashtra, India Report Contour

About this Report 2 Product Stewardship Research & Development 107 From C&MD's Desk 4 Quality Assurance 109 Message from Directors 8 Customer Centricity 111 The World of HPCL Creating Shared Value Business Overview 14 CSR Approach 117 Vision, Mission and Values 22 Focus Areas 118 Corporate Governance 23 CSR Footprint 119 Internal Systems and Controls 27 Sustainable Development Goals and Supply Chain 31 Our Business Practices 128 Industry Affiliations 32 Awards and Recognitions 33 Nationally Determined Contributions and Our Business Practices 130 Sustainability Ethos Governance & Policies 40 UNGC Principles Connect 130 Engaging with Our Stakeholders 41 Independent Assurance Statement 131 Topics that Matter 47 GRI Content Index 134 Fuelling Growth and Prosperity Financial Performance 54 Abbreviations 139 Physical Performance 55 Strategy for Tomorrow 56 Preparing for a Greener Tomorrow Materials Management 64 Energy Efficiency and Conservation 66 Emissions 70 Focus Towards Renewable Energy 73 Water Management 74 Resource Efficiency and Waste Management 76 Green Perspective 78 Our People, Our Strength The HP Family 84 Nurturing Talent 86 Capability Building 87 Managing Performance Aspirations 92 Rewards and Recognitions 93 Inclusiveness through Employee Engagement 94 Employee Benefits 96 Upholding Human Rights 96 Safety Culture 98 Security of Assets 102 Promoting Health 103 About this Report Hindustan Petroleum Corporation Limited (HPCL) continues to play a crucial role in meeting the myriad needs of the people of India. Through a wide spectrum of energy solutions, we fuel the daily lives of our citizens and the nation’s economy.

We continue to create significant The information contained in this Our Annual Report 2018-19 and value for our shareholders while report has undergone appropriate other previous Annual Reports positively impacting lives. We are internal reviews and has been are available at http://www. committed to the triple bottom subjected to independent hindustanpetroleum.com line of sustainable development assurance by a third-party, Bureau There are no material – people, planet and profits. Veritas (India) Private Limited as restatements from our previous The smile we bring to people’s per the AccountAbility Assurance sustainability report. face is the underlying force that Standard AA1000 AS (2008) Type propels and motivates us to 2 Moderate level. Our stakeholders form an perform continuously to fulfil our important part of our sustainable The report boundary remains promise of ‘Delivering Happiness’. growth story. We welcome unchanged from our previous feedback and consider them To share our journey of growth report and covers fully-owned important for us in ensuring that we, and sustainability endeavours with operations of the Company. through our sustainability reports, our stakeholders, we present our These include refineries at continue to disclose information 8th Annual Sustainability Report Mumbai and Visakhapatnam and material to our stakeholders. 2018-19. The report covers our operations of Strategic Business We welcome your queries or management approach, initiatives Units (SBUs) under marketing: suggestions at corporatehse@ and performance on economic, Aviation, Direct Sales, LPG, Lubes, mail.hpcl.co.in or online at environmental and social aspects Natural Gas and Renewables, https://hindustanpetroleum.com and pertains to the period from Operations, Distribution and April 1, 2018 to March 31, 2019. It has Engineering, Pipelines and been developed in accordance Retail (Company-owned and with the Comprehensive option Company-operated outlets). of the Global Reporting Initiative This report does not include (GRI) Standards, including the Oil joint ventures, subsidiaries and and Gas Sector Supplement. international operations. Our sustainability vision and The data presented in the report initiatives are guided by and has been either sourced from our aligned with the global priorities, Enterprise Resource Planning including the United Nations (ERP) system or directly from Global Compact (UNGC) Principles the operations within the report on Environment, Human Rights, boundary. The data analysis Labour and Anti-corruption; techniques and underlying the United Nations Sustainable assumptions/calculations have Development Goals (UN SDGs) been outlined in the relevant and India’s Nationally Determined sections of the report. Contributions (NDCs). A detailed Our Annual Sustainability mapping of how our actions are Report 2017-18 and other contributing to the realisation of previous Sustainability Reports these goals is presented at the end are available at http:// of this report. www.hindustanpetroleum.com

2 Hindustan Petroleum Corporation Limited A unit at our Mumbai Refinery

Sustainability Report 2018-19 3 From C&MD’s Desk Decisive Actions. Strengthened Foundations.

Dear Stakeholder, Your Company continued to business practices helped your command strong and stable credit Company to stay resilient and Thank you for being part of ratings both from international achieve a credible performance the journey as your Company agencies such as Moody’s, Fitch consistently in the challenging continues to ‘Deliver Happiness’ by and national agencies like CRISIL, business environment. fuelling the nation’s energy needs ICRA and India Rating and Research and enriching the lives of millions. The future of Oil and Gas is exciting Limited. The year witnessed Your Company continued to and challenging characterised by enhancement of Research and demonstrate the highest standard increasing competition, policy Development (R&D) capabilities of corporate responsibility reforms and enforcement of to create new levers for achieving with focus on environmental strict environmental regulations. growth and cost leadership sustainability while continuing the To continue the growth through indigenous development momentum towards accelerated momentum and stay ahead of of new products, processes and growth and excellence. It gives the performance curve, the ‘T20 technologies. The continued me great pleasure to present the strategy’ was formulated with a focus on research and innovation 8th Annual Sustainability Report clearly defined roadmap, having across various areas in the energy of your Company. safety and integrity at the heart sector enabled your Company to of all actions. This strategic plan is Market-led changes have accelerated receive total 12 patents, including helping your Company realise its a massive transformation towards 6 international patents. Vision and Mission, and navigate cleaner, healthier and socially the future business landscape inclusive outcomes. To make by enhancing performance significant contributions to the Sustainability across the triple bottom line society, sustainability has been Approach indicators of people, planet amalgamated as part of normal Responsible business ethos is the and profits. The ‘T20 strategy’ business practice in your Company. foundation of a solid, sustainable is driving sustainable business Your Company continued to business and is ingrained in practices across operations in the scale greater heights of success our Vision, Mission and Values. business value chain. and registered several ‘best Sustainability for HPCL means Your Company’s business activities ever’ milestones and remarkable holistic awareness, ethical are aligned with the United Nations’ achievements across all facets conduct, domain expertise and a Sustainable Development Goals of the business during 2018-19. firm commitment to cater to the (SDGs) and are in consonance Your Company recorded the highest nation’s energy needs through with India’s Nationally Determined ever refining crude throughput sustainable business practices. Contributions (NDCs). and sales volume, and exceeded Your Company has been able the `6,000 Crore mark in net profit Your Company’s vision to be a to reap the benefits of the for the third consecutive year. World Class Energy Company with triple bottom line approach by The excellent performance during superior financial performance aligning R&D, manufacturing the year 2018-19 was wide-ranging, while being a model of excellence and marketing with safe and encompassing stellar physical and in meeting environment and social environmentally responsible financial performance across all commitment keeps all employees practices. Your Company is functions. During the year, your vigilant of their responsibility constantly reviewing and Company registered the highest towards the society and embracing environment-friendly ever gross sales of `2,95,713 Crore nation building. processes, striving to reduce with an impressive growth of 22% carbon footprint and making This sustainability Report puts over historical. operations more resource efficient. forth your Company’s approach The early adoption of sustainable to economic value creation, social

4 Hindustan Petroleum Corporation Limited To continue the growth momentum and stay ahead of the performance curve, ‘T20 Strategy’ was formulated with a clearly defined roadmap, having safety and integrity at the heart of all actions.

Mukesh Kumar Surana Chairman and Managing Director

impact and environment protection refineries are actively participating Company is actively participating while capturing a few notable in energy conservation in the ethanol blending programme highlights. The issues described programmes like the PAT and has recorded the highest in this Report have been arrived Cycle II (Perform, Achieve and ever overall Ethanol Blending at after a detailed materiality Trade) of the Bureau of Energy Percentage (EBP) of 5.5% in petrol assessment and subsequent Efficiency (BEE), coordinated by during 2018-19. validation exercise, and reasonably the Centre for High Technology HPCL is fully aligned with the portray stakeholder expectations. (CHT). Specific thrust on energy policy initiatives undertaken by efficiency helped both refineries Government of India to strengthen achieve significant reduction in the growth of the hydrocarbon Environment their Energy Intensity Index (EII). sector and enable a shift Your Company is adopting best-in- Your Company recorded significant towards a low carbon economy. class operating systems, practices gains in overall throughput Your Company, along with its and procedures for achieving performance and productivity JVs, has received authorisation environmental sustainability. at both the refineries and across for City Gas Distribution (CGD) Major installations are certified the supply network of product networks in 20 geographical areas with Environmental Management pipelines, depots, terminals and across nine states. Environmental Systems. Effluent treatment plants, LPG bottling plants. The highest clearance for development of a air emission control and hazardous ever pipeline throughput of 21.5 5 MMTPA JV LNG Regasification waste management systems have MMTPA was recorded during terminal at Chhara port in Gujarat been installed at various locations 2018-19, which has helped in has been received. To promote for monitoring, in line with the safer product movement while the use of compressed biogas best practices. optimising logistics costs and as transportation fuel, Letters of Your Company continues to lay reducing carbon footprint. Intent (LOI) were issued for setting strong emphasis on operational To help reduce carbon intensity up 11 compressed biogas plants and energy efficiency. Both the of the transportation sector, your

Sustainability Report 2018-19 5 From C&MD’s Desk

in Gujarat, Maharashtra, Punjab business activities. To enhance and West Bengal. health and safety across all spheres of operations, your Company During the year, the supply has been making continuous of BS-VI grade auto fuels was improvements in the systems and commenced in the National procedures. All regular employees Capital Territory (NCT) of New undergo Periodic Medical Delhi. Vapour Recovery System Examinations (PME) for preventive stage I and II was completed for and curative measures. A number all retail outlets in New Delhi. of employee engagement Electric Vehicle (EV) charging initiatives are deployed to Electric Vehicle stations have been commissioned increase cohesion between the at seven HPCL retail outlets. (EV) charging Company, the employee and the stations have been Your Company is leveraging employee’s family. renewable energy sources to A host of technical and commissioned at seven reduce the carbon footprint and behavioural programmes electricity cost across the value HPCL retail outlets including unique initiatives chain and is investing in renewable such as ‘Suraksha Parishad’ for energy projects. During 2018-19, HSE role holders across the captive solar power capacity of Company and ‘Safety On Wheels’ 11.3 MWp was installed across (SOW) for TT Crew have been various locations, taking the total pioneered for effective capability solar power capacity to about building and sensitisation for 22.6 MWp. HPCL also has an enhanced occupational and road existing wind power capacity safety. To ensure emergency of 100.90 MW, which generated preparedness, mock drills are about 190 Million kWh of electricity regularly conducted at all locations during the year. to keep everyone in a state of Green belt development readiness. A major milestone in the programmes have been area of safety was achievement of implemented at various locations. about 25 Million man-hours of safe HPCL has a green cover of operation by Mumbai Refinery, as 1,135 acres (within premises). of March 31, 2019. Your Company continued efforts Since inception, your Company to enhance energy efficiency has been contributing towards and water conservation across nation building through effective locations and has undertaken a implementation of various study of ‘Life Cycle Assessment’ socioeconomic development of its ENKLO Series Lubricant programmes initiated by the product on a pilot basis to Government of India. To help understand the environmental increase the coverage of clean footprint of the product. cooking fuel in the country, about 2 Crore new LPG connections Social were provided under the Pradhan Mantri Ujjwala Yojana (PMUY) To help achieve an environment to low-income households. that is safer and sustainable In addition, your Company for everyone, your Company sensitised over 34 Lakh people endeavours to involve stakeholders about safe and sustainable usage including employees and local of LPG by conducting over 27,000 communities. Your Company LPG Panchayats across the country. has taken a number of initiatives to acquire and retain top talent To enhance the capacity and for increasing productivity. capability of small vendors, Your Company believes in various vendor meets were 25 Million building high-performing conducted with focus on Micro Man-hours of diverse teams by cultivating a and Small Enterprises (MSEs) culture that promotes impactful and SC/ST MSEs. Efforts towards safe operation by performance across levels. compliance with the public procurement policy has helped in Mumbai Refinery, Safe operations and registering 32.87% procurement implementation of health initiatives as of March 31, 2019 from MSEs, surpassing the level continue to be at the core of all of 25% specified in Government

6 Hindustan Petroleum Corporation Limited of India guidelines. Your Company (EV) ecosystem. To capture new The sustainability has also been fully abiding by avenues of value creation through the policy related to boost the collaboration with technology efforts presented in local content under the ‘Make in start-ups, your Company has this report reflect the India’ initiative. commenced the incubation of 15 Start-ups with project funding indomitable spirit and During 2018-19, your Company support under the ‘HPCL Start-up enriched the lives of thousands extensive cooperation India’ initiative. of underserved people though and coordination various CSR initiatives with an To leverage technology and overall spend of `159.81 Crore. harness the opportunities across the organisation associated with Industry 4.0, These initiatives were undertaken and a wider section your Company is strengthening in the focus areas of childcare, its existing IT processes and of stakeholders. education, healthcare, skill incorporating emerging digital development, sports, environment technologies across all facets of and community development. business activities. To support the Swachh Bharat Abhiyan, over 2,300 new toilets The focus is to evolve as a were constructed in various future-ready company by schools across the country. nurturing strong linkages To bring in behavioural changes between people, planet and in the area of sanitation, various profits. The sustainability efforts activities were undertaken to presented in this report reflect the sensitise school children and wider indomitable spirit and extensive sections of the society. cooperation and coordination across the organisation and a Sustaining growth wider section of stakeholders. The improvements and impacts trajectory demonstrated will only accelerate Your Company has formulated going forward. Your constructive plans and is focussed on feedback and suggestions will completing projects and activities propel HPCL to continually raise in a time-bound manner to be the future performance levels. prepared for production and sales At HPCL, we look forward to of BS-VI grade auto fuels with your continued support towards effect from April 1, 2020. shared success in our endeavours To expand the business reach, your in Delivering Happiness to bring Company is exploring opportunities smiles to millions of people. to further expand the lubricant and fuels business in the growing Thank you, markets of Asia, the Middle East and Africa and is leveraging new Mukesh Kumar Surana business opportunities including Chairman and Managing Director participation in the Electric Vehicle

Sustainability Report 2018-19 7 Message from Directors

HPCL strongly believes that human capital is one of its greatest strengths, that propels long-term success of the Company. A strategic approach to managing our people helps our business gain a competitive advantage. We focus on developing an environment that attracts and inspires excellence in people. Success of any business is directly affected by the performance of employees within the organisation and their ability to serve and fulfil the aspirations of its stakeholders with responsibility and integrity. HPCL strives to nurture a pool of talented, committed and competent workforce by building a positive employee-organisation relationship. HPCL fosters innovation and growth and delivers value on the three pillars of sustainability. We believe that people deliver their best when they are challenged for success and growth. HPCL has been a member of the United Nations Global Compact Network in India and continues to support its core principles surrounding human rights, labour, environment and anti-corruption. HPCL remains committed to positively impact lives by working with the marginalised and less-privileged communities through a diverse range of social interventions by addressing key development challenges.

Pushp Kumar Joshi Director, Human Resources

We continue to leverage our market experience and best-in-class technologies considering the emerging energy landscape to attain sustainable growth. A competent and competitive Team – Marketing, through the times of both celebrations and challenges, has led to a stellar performance. HPCL’s sustainable growth is reflected in its y-o-y performance; this year achieving landmark sales of 38.7 MMT while registering a growth of 4.9%. Our achievements have largely been possible due to the extraordinary talent and commitment of internal and external stakeholders who have all contributed in a big way to our success. The future will continue to present itself with numerous challenges and opportunities. With a focus on the development and adoption of renewable power, charging facilities for electric vehicles and by promotion of eco-friendly bio-fuel alternatives such as ethanol and biodiesel as well as maximising the bulk transportation of fuels through pipelines, HPCL will continue to play a significant role in sustaining energy security for the nation.

S. Jeyakrishnan Director, Marketing

8 Hindustan Petroleum Corporation Limited Sustainable economic strength remains one of the key focus areas for HPCL. The corporation lays emphasis on improving the overall bottom line on the pillars of productivity, competitiveness and favourable financing, while maximising long-term cash flows and nurturing assets that maximise value. Managing risks for conducting business in a smooth manner is essential for sustainable growth. HPCL has a comprehensive and well-defined risk management framework with robust internal control processes to augment resilience in conducting business. HPCL lays special importance to maintain high standards of corporate governance and encourages a culture of transparent, fair and accountable governance practices to conduct the affairs within the framework of policies. Adequate thrust is imparted on the creation of sustained value for its stakeholders by maximising return on investment.

J. Ramaswamy Director, Finance (up to 28.02.2019)

Our Mumbai and Visakh refineries have continued to demonstrate overall excellence in operations and have achieved a combined throughput of 18.4 MMTPA with a capacity utilisation of 117%. HPCL is expanding its refining capacities in sync with the increasing demand for cleaner and environment-friendly fuels through its modernisation projects. We are committed to maintain superior safety performance through best-in- class practices and procedures in various aspects of refinery operations. Our Mumbai refinery completed 24.59 Million man-hours of safe operation as on March 31, 2019. Backed by sound environment management systems and the latest technologies, both the refineries are gearing up for compliance of BS-VI auto fuels supply as per Government of India’s schedule for implementation by April 2020. HPCL’s refineries continue to embrace energy efficiency through operational excellence and innovations and are actively participating in the PAT (Perform, Achieve and Trade) Cycle II of the Bureau of Energy Efficiency (BEE), being coordinated by the Centre for High Technology (CHT). Both our refineries continue to participate in varied developmental programmes and initiatives that contribute positively to the environment and the community.

Vinod S. Shenoy Director, Refineries

Sustainability Report 2018-19 9 A view of one of our terminals

The World of HPCL

Business Overview 14 Vision, Mission and Values 22 Corporate Governance 23 Internal Systems and Controls 27 Supply Chain 31 Industry Affiliations 32 Awards and Recognitions 33

Sustainable Energy for a Strong India As one of the largest public sector enterprises under the Ministry of Petroleum and Natural Gas, Government of India, HPCL is a designated Navratna with a remarkable history and heritage of over four decades. HPCL ranked 70 and 69 by market capitalisation, as on March 31, 2019 on the Bombay Stock Exchange and the National Stock Exchange, respectively. We have a strong presence in the petroleum refining and marketing sector with a market share of over 21% among the Indian public sector oil marketing companies (OMCs) as on March 31, 2019.

HPCL owns and operates two major refineries located in Mumbai An overview of our marketing network and Visakhapatnam, producing a wide variety of petroleum fuels and specialties. We also own and operate India’s largest lube refinery, which produces 15,440 274 lube base oils of international Retail Outlets Lube Distributors standards. We operate and hold a 48.99% equity stake in the 11.3 MMTPA HPCL Mittal Energy Limited (HMEL) refinery at Bathinda in collaboration with Mittal Energy Investments Pte. 5,866 109 Ltd. and a 16.96% stake in the LPG Clearing and 15 MMTPA Mangalore Refinery and Distributorships Forwarding Petrochemicals Ltd. (MRPL). Agents (CFA) We have the second largest share of product pipelines in India with a pipeline network of more than 3,370 km for transporting petroleum products. Our pan-India 1,638 42 marketing network comprises 14 SKO/ LDO Terminals zonal offices in major cities and Dealerships and TOPs 133 regional offices. This network is supported by our supply and distribution infrastructure comprising terminals, pipeline networks, aviation service stations, 305 41 LPG bottling plants, inland relay CNG Outlets Inland Relay depots, retail outlets, lube and Depots LPG distributorships. 213 49 Auto LPG LPG Bottling Dispensing Plants Stations (ALDS)

12 Hindustan Petroleum Corporation Limited Corporate Headquarters - Petroleum House

We have been able to deliver consistent performance due to our highly motivated workforce of over 10,000 across refining and 43 6 marketing locations Aviation Pipelines and the unstinted Fuel Stations (Main Lines - POL) support of our various stakeholders. 27 3 Exclusive Lube Pipelines We have been able to deliver Depots (Branch Lines - consistent performance due to our highly motivated workforce (COLD/COD) POL) of over 10,000 across refining and marketing locations and the unstinted support of our various stakeholders. 6 1 To develop path-breaking Lube Blending Pipelines technologies and products in Plants (Main Line - LPG) the energy sector, we have a state-of-the-art Green R&D Centre at Bengaluru, which has been developing new technologies and upgrading the existing ones, leading 2 2 to significant cost advantages and LPG Import Specialty efficiency improvements. Locations Product Pipeline Our marketing R&D centre ensures (Lube Oil/ATF) that HP Lubricants invariably meet the demanding international standards. The marketing R&D centre also shares relevant data with industry members and technical bodies through presentations, publications (national and international journals), seminars and conferences.

Sustainability Report 2018-19 13 The World of HPCL Business Overview Our wide range of product and service offerings has fuelled our growth across various aspects of everyday lives of people. We have also widened our business portfolio to keep pace with the growing energy demand and our petroleum-based products and lubricants have a national and global reach.

Visakh Refinery Modernisation Project

We have undertaken many large-scale projects across the hydrocarbon value chain to support future growth, cater to the rising energy demand and respond to the environmental challenges. We have also pioneered numerous customer-centric initiatives and services (downstream) with a focus on technological upgradation at our refineries.

14 Hindustan Petroleum Corporation Limited Refineries

Our refineries at Mumbai and India will be leapfrogging to 9.5 MMTPA are in advanced stages Visakhapatnam have capacities BS-VI auto fuels (MS & HSD) from of execution. To augment product of 7.5 MMTPA and 8.3 MMTPA, April 1, 2020. Accordingly, Indian sufficiency, we are setting up respectively. We operate the refineries will need to upgrade their a 9 MMTPA greenfield refinery largest lube refinery in India, with facilities during 2019-20, which cum petrochemical complex at a capacity of 428 TMTPA. It makes may entail hook up shutdowns. Barmer, Rajasthan through a joint us a leader in the production of Implementation of the International venture, HPCL Rajasthan Refinery lube base oils. Maritime Organization’s (IMO) new Limited (HRRL). The completion regulations (IMO 2020) that limit of these projects will more than Our refineries produce high-quality sulphur content in marine fuels used double our refining capacity and products under light, middle and by ocean-going vessels to 0.5% will introduce about 2 MMTPA of heavy distillates such as Liquefied is expected to come into effect petrochemical production capacity Petroleum Gas (LPG), Naphtha, from January 1, 2020. IMO 2020 in the product mix. Motor Spirit (MS), Kerosene, is expected to create a significant Aviation Turbine Fuel (ATF), High During 2018-19, our refineries shift in demand in the global marine Speed Diesel (HSD), Furnace Oil, recorded the highest ever fuel market from high sulphur Bitumen and numerous grades of refining throughput of 18.4 MMT marine fuels to low sulphur marine lubricants, specialties and greases. as compared to 18.3 MMT in fuels. To address these changes The refineries are equipped with the previous year and achieved and be future-ready, our refineries the latest technologies to achieve a capacity utilisation of 117%. have drawn up time-bound optimal operational efficiency and Maximisation of crude processing plans and are implementing quality requirements. in refineries helped HPCL achieve capacity augmentation and the highest ever production of LPG, We are proactively working upgradation projects. Bitumen and Lube Oil Base Stock towards reducing emissions, The Visakh Refinery Modernisation (LOBS). This stellar performance achieving energy efficiency Project (VRMP), which aims to was attributable to robust and promoting optimal usage enhance the capacity of Visakh crude sourcing, optimisation of of resources. To produce low Refinery from 8.3 MMTPA to crude mix, speedy evacuation sulphur fuels as a measure of 15 MMTPA, along with residue of products from the refineries, environmental stewardship, our upgradation facilities, as well as improvement in refinery reliability, refineries are currently producing the Mumbai Refinery Expansion and strict adherence to safety and Bharat Stage IV (BS-IV) grade Project (MREP), which aims to operating procedures. fuels, as per the directives of the enhance the capacity of Mumbai Government of India. Refinery from 7.5 MMTPA, to

2018-19 Key Highlights Refinery PerformanceCommissioned fuel gas firing to Improvement Programme (RPIP) reformer in DHT-HGU Mumbai Refinery initiated and in progress Highest ever crude Implemented Advanced throughput of 8,671 Thousand Sustained usage of Regasified Process Control (APC) in Metric Tonnes (TMT) Liquefied Natural Gas (RLNG) CCR and DHDS-ARU in Gas Turbine Generators Best ever safety record of Commissioned additional hot (GTGs) / furnaces 24.59 Million safe man-hours as well off-gas burners in CDU-II on March 31, 2019 Addition of new lube grade Carried out ISO 14001 Elasto 710 – R in product pool Best ever specific energy recertification audit consumption of 82.82 MBN Installed ‘R-Pulse’ monitoring Rolled out multiple IT-related kiosks for team leads to monitor Certified with applications for better monitoring critical operational conditions ISO-14001:2015 Environment Management System Visakh Refinery Highest ever crude throughput Lab-accredited with ISO/IEC of 9,773 TMT 17025:2017 latest version; Centre for Military Airworthiness Best ever specific energy and Certification (CEMILAC) consumption of 77.29 MBN recertification obtained

Sustainability Report 2018-19 15 The World of HPCL

Marketing

Our product offerings cater to a large and Marketing Headquarters - Hindustan Bhawan diverse customer base across the domestic, automotive, commercial and industrial segments. Our business verticals include Retail, LPG, Lubes, Direct Sales, Aviation, Natural Gas and Renewables, Operations, Distribution & Engineering and Pipelines. Continuing with our growth momentum, we demonstrated stellar performance across verticals. We achieved the highest ever sales volume of 38.7 MMT in 2018-19, up from 36.9 MMT in 2017-18. Our domestic sales grew 4.7%, commanding a market share of over 21% among Indian public sector OMCs.

Retail

Retail constitutes a major share of our total sales. Through a widespread network of retail outlets, we take care of our customers’ fuel needs, and also provide holistic services for their vehicles through Club HP and Club HP Star outlets. We continue to offer several products to promote cashless transactions and loyalty programmes for the convenience and benefit of our customers.

2018-19 Key Highlights Automated a record 6,844 programme, HP Re-Fuel, by outlets during the year; we now 20 times and surpassed the Marked the 14th consecutive have 14,744 automated outlets milestone of 4 Million customers year of market share on the platform increase in MS and HSD Entered MoU with State Trading Corporation of Bhutan to set Crossed `30,000 Crore sales, up Achieved total retail sales up 24 retail outlets in Bhutan, a 67%, on the loyalty platform volume of 24.54 MMT, up significant step in spreading our 3.3% over 2017-18 Toilet blocks with separate retail footprint beyond India facilities for men, women With over 5,000 outlets, Launched packaged drinking and ‘Divyangs’, under the poWer recorded total sales of water brand ‘Reminero’, to be brand ‘Sugam’, provided at an 683 TKL, up 24.3% marketed through our retail additional 1,639 highway outlets Sales volume of eco-friendly outlet network in Hyderabad, Completed setting up Vapour fuels, CNG and ALPG, grew Bengaluru and Mysuru Recovery System stage I and II 9.1% to 312 TMT and 44 TMT, Commissioned mobile fuel for all outlets in Delhi respectively. CNG facility was dispenser, HP Fuel Connect added in 68 outlets, highest Installed solar power panels ever in a single year and Digital conversion stood at at 737 outlets and marketed exceeded MoU target 31.3% of total motor fuel sales energy-efficient LED bulbs in March 2019, crossing the 30% through the retail network Commissioned 478 new mark for the first time retail outlets, taking the total Commissioned electric vehicle network to 15,440 Increased transactions (by (EV) charging stations at value) in loyalty and payment seven HPCL retail outlets, as on March 31, 2019

16 Hindustan Petroleum Corporation Limited LPG

Serving over eight Crore consumers, HP Gas, our LPG brand, is credited with bringing in a revolution in kitchen, spreading warmth and cheer among millions of households with clean and efficient cooking fuel. Today, HP Gas is synonymous with safety, reliability and convenience. HP Gas also supplies LPG cylinders for commercial and industrial purposes and bulk LPG through tankers for industries.

2018-19 Key Highlights Commissioned a new LPG Procured four LPG rakes under the Achieved highest ever sales bottling plant at Warangal with Liberalised Wagon Investment volume of 6.55 MMT, up 7.1% over 60 TMTPA capacity Scheme (LWIS) of Ministry of 2017-18, gaining 0.16% market Railways for transportation of Augmented capacity of bottling share in domestic segment LPG from source to bottling plants by 390 TMTPA plants. This helped lower Commissioned a record 1,018 Introduced Quality Discipline logistics cost, ensure safe and new LPG distributorships and Guidelines for Cylinder, Valve easy availability of LPG, and enrolled 1.23 Crore new LPG and DPR manufacturers reduce GHG emissions domestic customers, including 1.01 Crore PMUY customers Converted 13,824 villages to Launched HP Gas ‘PRADYUT’, smokeless villages a green initiative to deliver LPG Achieved bottling of 6,421 TMT, cylinders to consumers using up 8%, with a productivity of Conducted over 27,000 Pradhan a customised first-of-its-kind 1,584 cylinders/hour Mantri LPG Panchayats across electric three-wheeler the country, sensitising over Handled 756 TMT of LPG through 34 Lakh people about safe and Installed over 13,000 LED Mangalore Hassan Mysore sustainable usage of LPG lights at locations to promote Solur LPG Pipeline (MHMSPL), sustainable development resulting in transportation Conducted 60,000 safety savings of `109 Crore clinics for educating over 29 Lakh customers about safe usage of LPG Lubes

HP Lubricants is India's largest lubricant marketer, with more than 350 grades of lubricants, specialties and greases manufactured in state-of-the-art blending plants across India. The grades find applications in automotive, industrial, mining and construction, agriculture, fishing, defence and railways, among others. HP Lubricants has a robust marketing network that spreads across the country through warehouses, distributors, Clearing and Forwarding Agents (CFAs) and offices with highly qualified sales and technical personnel. To add further value to the bottom line, a dedicated strategic business unit was carved out of Direct Sales SBU. The journey of HP Lubricants has its roots in modest beginnings in 1974 to being established as India’s largest lube marketer in 2013 and consistently escalating its leadership position in the Indian market ever since.

Sustainability Report 2018-19 17 The World of HPCL

2018-19 Key Highlights Commissioned new Conducted more than 2,500 distributorships in Bangladesh, market/customer connect Continued to be the largest Bhutan, Vietnam, UAE and activities across regions lube marketer in India for the Democratic Republic of Congo sixth year in a row Launched new products/SKUs Commissioned 31 new lube — Tractor Oil, Transformer Oil Achieved the highest ever total distributors and CFAs (26-Litre and 50-Litre SKU) lube sales volume of 646 TMT Power Q Genuine Oil (Bajaj Became the first PSU to Market leader in value-added Quadricycle), Milcy Pickup, Milcy commence own manufacturing lubes with sales volume of 490 TMT Pickup Ultra, Milcy Fleet and and sales of Diesel LAMI Tube for Grease (in 100 g) Achieved best throughput of 539 Exhaust Fluid (DEF) TMT in lube blending plants, up 8% Developed and commercialised Became the first PSU to develop HP CORRMIT, which significantly Exported lubes to Nepal, and commercially launch reduces the effect of corrosion in Bangladesh, Bhutan, Sri Lanka, Certified Reference Material cross-country product pipelines Myanmar, Vietnam, South Korea, Conducted trials and obtained UAE, Democratic Republic Carried out Life Cycle approvals from OEMs for various Congo (Africa) and Ecuador Assessment of Enklo Grade grades of lubricants (South America) Product from cradle to gate Commenced operations for HPCL Middle East FZCO Office at Dubai

Direct Sales (Industrial and Consumer)

The Direct Sales (Industrial and Consumer) business unit caters to marketing requirements of bulk fuels and petroleum products – Bitumen, Naphtha and specialties – to institutional consumers such as defence, railways, power plants, and chemical, fertiliser and shipping companies, and carries out exports of these products.

2018-19 Key Highlights Achieved sales volume of 5.34 MMT, up 5.7%, surpassing the 5 MMT mark for the third year in a row Crossed 1 MMT sales volume in Fuel Oil (FO), Diesel and Bitumen individually for the fourth year in a row Recorded bulk diesel sales of 1,372 TMT and commissioned 50 new consumer pump facilities Gained market share in major product lines of Bitumen, FO and specialty products Recorded the highest ever sales of 402 TMT in specialty products Signed MoUs with four paramilitary forces and Border Roads Organisation such as Mineral Turpentine Oil (BRO) during 2018-19 for supplying fuels and bitumen in 2019-20 (MTO), Solvent 1425, Jute Batch First OMC to complete Army winter stocking, overcoming Oil (JBO), Industrial SKO, Sulphur multiple challenges and Propylene with 8.1% growth Developed and commercialised HP-FurnOKare for descaling and maintaining furnaces

18 Hindustan Petroleum Corporation Limited Aviation

HP Aviation has significant visibility across the country and provides aviation refuelling (Aviation Turbine Fuel – ATF) services at various airports in India. We are associated with several domestic and international airlines and meet stringent national and international standards on handling ATF. Our commitment to quality is reflected in our ‘quality fuel in the aircraft, safely on time; through processes aimed at enhancing customer delight’ policy. Recorded new businesses of more than 180 TKL from Vistara, Lufthansa, British Airways and Turkish Airlines, among others 2018-19 Key Highlights Commissioned new ASF at Kolhapur (Regional Connectivity Scheme), Highest ever ATF sales volume Amritsar, Bhubaneswar and Raipur of 875 TMT with market Set up additional tankages at Srinagar and Tirupati ASFs share gain of 0.94% Associated with Spicejet for refuelling India’s first ever Registered sales growth of 20% as biofuel powered flight against industry growth of 9.7% Supported the biggest ever war combat exercise carried out by the Indian Air Force ‘Gagan Shakti 2018’

Natural Gas and Renewables

India has pledged for a transition towards cleaner energy and is poised to grow on the low-carbon path. We aim to leverage this potential opportunity and have aligned our business with these emerging trends. We have undertaken several initiatives to expand presence in the natural gas sector by increasing our footprint in the midstream and downstream gas markets in India. We are striving to evolve across the value chain from sourcing LNG authorisation for setting up CGD Participating in the development from international markets and networks in nine geographical of three cross-country natural building regasification terminals to areas in Uttar Pradesh, gas pipelines (Mehsana to laying cross-country gas pipelines Uttarakhand and West Bengal Bathinda, Bathinda to Srinagar and selling gas to consumers. and Mallavaram to Bhilwara) Released Letters of Intent through the JVs—GSPL India (LOI) for setting up 11 2018-19 Key Highlights Gasnet Limited (GIGL) and GSPL compressed biogas plants in Achieved CNG sales India Transco Limited (GITL) Gujarat, Maharashtra, Punjab volume of 11.56 TMT and West Bengal with an With an aim to facilitate sourcing HPCL has authorisation envisaged total production and marketing of natural gas, to increase CGD presence capacity of 20.6 TMTPA to we are building a 5 MMTPA to 34 districts in India increase usage of biofuels in LNG regasification terminal at covering nine states the energy and transportation the Chhara port (Gir Somnath sectors of the country district) in Gujarat through the Emerged as one of the most JVs—HPCL Shapoorji Energy successful bidders in the tenth Pvt. Ltd. (HSEPL) round of CGD bidding, receiving

Sustainability Report 2018-19 19 The World of HPCL

Operations, Distribution & Engineering

The Operations, Distribution minimise manual intervention, Procured highest ever volume & Engineering SBU caters increase transparency, enhance of ethanol of 55.73 Crore Litre, to product movement and productivity, and ensure safety which resulted in an overall EBP distribution requirements and stakeholder convenience of 5.5% versus 2.11% in 2017-18 through a countrywide network Reduced secondary distribution Achieved the highest ever of terminals and depots with cost by realigning several procurement of biodiesel at 2.68 assured quality, quantity and retail outlets and optimising Crore Litre during 2018-19 for safety in stipulated time. transport movements sale of biodiesel blended diesel We have also implemented an Implemented electro-mechanical Storage capacity for keeping 15 array of technologies and rolled locking system at 13 locations to days of ethanol inventory has out many initiatives to increase enhance Quality and Quantity been provided at all storage operational efficiency to meet the (Q&Q) assurance to customers locations of HPCL increasing demand. Completed tank wagon Increased mix of higher capacity 2018-19 Key Highlights automation at Kanpur and tank trucks in the fleet Visakh terminals Achieved cumulative throughput Increased transporters of 52.36 MMT, up 4% Commenced supply of BS-VI registered under MSE from 5% grade auto fuels in the National to 35%, above 25% target Declared 11 locations as SMART Capital Territory (NCT) of Delhi terminals after implementation as a first step towards BS-VI of end-to-end IT initiatives to implementation

20 Hindustan Petroleum Corporation Limited Pipelines

Cross-country product pipelines are the most cost-effective, energy-efficient, safe and environment-friendly mode of transporting large quantities of petroleum products over long distances. Our pipelines continue to be the key strength in our product supply chain. We operate 3,370 km of pipelines with a mainline capacity of 24.93 MMTPA and a branch line capacity of 11.07 MMTPA. We emphasise scaling up infrastructure to augment and expand our pipeline network and enhance our capabilities for effective, safe and efficient management. With an aim to increase HPCL’s mainline capacity to 33.7 MMTPA and network length to about 4,500 km, implementation of large-scale expansion projects are underway with an estimated investment of `5,916 Crore.

Major ongoing pipeline infrastructure projects Capacity expansion of Mundra Developed Artificial Delhi Pipeline (MDPL) from 5 2018-19 Key highlights Intelligence-based analytical MMTPA to 6.9 MMTPA along with Achieved the highest ever system and intelligence extension of branch pipeline from pipeline throughput of 21.5 MMT generation based on pipeline Palanpur to Vadodara (235 km) Mechanically completed intrusion detection system and construction of greenfield capacity expansion of RBPL database for enhanced marketing terminal at Vadodara from 4.71 MMTPA to 7.11 MMTPA security surveillance Capacity expansion of Visakh Enabled simultaneous pumping Carried out pipeline security and Vijayawada Secunderabad and receipt of different products surveillance trials using drones Pipeline (VVSPL) from 5.38 (MS/HSD) for MDPL and RBPL on Rewari Kanpur Pipeline MMTPA to 7.7 MMTPA and simultaneous pumping of (RKPL) — a first-of-its-kind Extension of VVSPL from different products (MS/HSD) initiative in the industry Vijayawada to Dharmapuri in MPSPL and BOPL Carried out air pigging in VVSPL (697 km) and construction of a Installed and commissioned in reverse pumping mode for marketing terminal at Dharmapuri 195 km of OFC-based Pipeline pipeline hook-up jobs, resulting Uran Chakan Shikrapur Intrusion Detection System in substantial water savings LPG Pipeline (168 km) of (PIDS) in RBPL and RBhPL 1 MMTPA capacity Participation in the development of India’s longest LPG pipeline from Kandla to Gorakhpur (2,757 km), along with IOCL and BPCL

In addition to the SBUs mentioned, we have functions such as Audit, Corporate Strategy and Planning, Finance, International Trade and Supplies, Legal, Refinery Coordination Department, Market Research, Analysis and Planning and others that collaborate and create a synergy for our consistent performance record.

Sustainability Report 2018-19 21 The World of HPCL Vision, Mission and Values

Vision

To be a world-class energy company known for caring and delighting the customers with high quality products and innovative services across domestic and international markets with aggressive growth and delivering superior financial performance. The Company will be a model of excellence in meeting social commitment, environment, health and safety norms and in employee welfare and relations.

Mission

HPCL, along with its joint ventures, will be a fully integrated Company in the hydrocarbons sector of exploration and production, refining and marketing; focusing on enhancement of productivity, quality and profitability; caring for customers and employees; caring for environment protection and cultural heritage. It will also attain scale dimensions by diversifying into other energy related fields and by taking up transnational operations.

Free, Frank F and Fair

Integrity HP ‘FIRST’ I We believe in holistic growth and as a company, we strive to make a Respect for difference across the three pillars of sustainable development, i.e., Individual Environment, Social and Economic. R The ‘HP FIRST’ philosophy is the bedrock of our organisational Sustainable vision and mission and provides the foundation for the Company’s Performance daily operations. S T Team Spirit

22 Hindustan Petroleum Corporation Limited Corporate Governance Being a public sector enterprise, our activities are subject to review by several external agencies like the Comptroller & Auditor General of India (CAG), the Central Vigilance Commission (CVC), Parliamentary Committees, Statutory Auditors, etc.

We imbibe principles of the UNGC in our approach to corporate governance for integration with our strategies, policies and procedures, thereby nurturing a culture of integrity. Vigilance

Corporate Governance at HPCL is PublicRedressal Grievance based on the following key principles: Proper composition of the Board of Directors, size, varied experience and commitment to discharge their responsibilities Well-developed internal control, Integrity Code of systems and processes, risk management and financial reporting Pact Conduct Full adherence and compliance to laws, rules and regulations Timely and balanced disclosures of all material information on Corporate operational and financial matters to Governance the stakeholders Right to Clearly defined performance management and accountability Information Enhanced accuracy and transparency in business operations, performance and financial position

The Board is headed by the through the Ministry of Petroleum Board of Directors Chairman and Managing Director & Natural Gas (MoP&NG). As the highest governing body, appointed by the Government, as Through Board meetings, the the Board of Directors exercise per its policy for Central Public Directors provide insights on powers subject to the provisions Sector Enterprises (CPSEs). various aspects of the business, of the Companies Act, 2013. Periodic meetings of the Board including human resources, refining, The Board facilitates formulation are held to review and evaluate finance, accounting, marketing, of policies, strategies and goals matters of business, policy and strategy, projects, technology pertaining to the Company’s strategic importance for the and operations and other related economic, environmental and Company and provide insights, aspects. The outcomes of Board social performance. This is done guidance and approvals. In line meetings pave way for the in alignment with corporate with the provisions contained in respective functionaries for their vision, mission, values and Article 21 of the Articles of implementation and execution. business strategies. Association of HPCL, all the In addition to discussions on Directors of HPCL are appointed new items based on agenda, the by the Government of India

Sustainability Report 2018-19 23 The World of HPCL

Board reviews the progress on actionable items of Directors, the tenure is three years or until further previous meetings. Key decisions of the Board and its orders, whichever is earlier. The MoP&NG (Government Committees are communicated to the stock exchanges. of India) undertakes performance evaluation of all the Directors at the end of each financial year. This is done Whole-time Directors have a tenure of five years or through the process of MoU on specified economic, until their superannuation or further orders, whichever environmental and social parameters. The MoU is earlier. Further, the tenure of Government Directors ratings directly affect the performance-related pay is until the period they continue in the Ministry or until of the Directors. further orders, whichever is earlier. For Independent

The following Directors served on the Board during 2018-19:

Whole-time Directors

Centre: Shri Mukesh Kumar Surana (DIN:07464675)

From left to right: Shri J. Ramaswamy Shri S. Jeyakrishnan Shri Pushp Kumar Joshi Shri Vinod S. Shenoy (DIN:06627920) (DIN:07234397) (DIN:05323634) (DIN:07632981) (up to 28.02.2019)

24 Hindustan Petroleum Corporation Limited Government Directors

Shri Sandeep Poundrik Ms. Sushma Taishete Shri Subhash Kumar Ex-Officio Director Ex-Officio Director Part-Time Director (DIN:01865958) (DIN:03585278) (Representative of ONGC) (Upto 07.05.2018) (DIN:07905656) (From 22.05.2018)

Independent Directors

Shri Ram Niwas Jain Smt. Asifa Khan Shri G. V. Krishna (DIN:00671720) (DIN:07730681) (DIN:01640784)

Dr. Trilok Nath Singh Shri Amar Sinha Shri Siraj Hussain (DIN:07767209) (DIN:07915597) (DIN:05346215)

Sustainability Report 2018-19 25 The World of HPCL

Board Committees

Sub-committees of the Board of Board sub-committees as on March 31, 2019 Directors have been formed in accordance with the provisions ent tm contained under the Companies es tee v mit In m A Act, 2013 and SEBI (Listing o Co u C m d i Obligations and Disclosures m t it te Requirements) Regulations. e y it l i These committees focus on b t a n e n e i specific areas and make informed e a t m t t i

s p decisions within the delegated

N u o m

l R

S o e

e m

authority. They also make C Board m

v d m

u n

recommendations to the Board D

a sub-committees

n a

t e

on various matters. Observations, i

r i

o S

t a

t e

recommendations and decisions of i o e a

n n d the committees are placed before R e S l the Board for information and a ta t k io e approval. The Board is also kept n h sh ol t abreast of the developments in ip de en C rs’ em om nag e sub-committee meetings through m Risk Ma tte itte mi meeting minutes. e Com

Nomination, Selection Processes and Remuneration

The Nomination and Remuneration Remuneration of officers below Annual total compensation ratio of Committee is constituted by the the Board level is also approved by the highest-paid individual to the Board to manage remuneration, the Government of India. median annual total compensation compensation and benefits for all employees (excluding HPCL has received letters from for employees. The terms of the highest paid individual) was BSE Limited and National Stock reference of the Nomination and 7.489:1 in 2018-19. The ratio of Exchange of India Limited informing Remuneration Committee are as percentage increase in salary levy of penalty for non-compliance prescribed under Section 178 of of the highest-paid individual of provisions of Regulation 17 (1) the Companies Act, 2013 except to to the median percentage (b) of SEBI (LODR) Regulations the extent of exemptions granted increase of other individuals i.e. for not having required number to Government Companies and as (excluding the highest-paid of Independent Directors on the provided under Part D of Chapter individual) was 5.797:1. Board (considering Chairperson II (Corporate Governance) of of the Board being Executive Regulation 19 of the SEBI (Listing Director) for the quarter ended Obligations and Disclosure September 2018, December 2018 & Requirements) Regulations, 2015. for the period Jan-February 2019. Remuneration to Whole-Time In this regard the Company has Directors is approved by requested the Stock Exchanges for the Government based on waiver of fine levied, as HPCL being advice received through a Government Company, the power the administrative ministry, to appoint Directors (including i.e., Ministry of Petroleum Independent Directors) and terms and Natural Gas. and conditions of appointments Independent Directors are paid etc. vests with Government of sitting fees for Board meetings India and such non-compliance is and sub-committee meetings not due to any negligence/default of the Board. HPCL does not by the Company. have a policy of paying a commission on profits to any of the Directors of the Corporation.

26 Hindustan Petroleum Corporation Limited Internal Systems and Controls

To ensure that ethics, transparency and integrity are ingrained in our decisions, activities and conduct, we have established policies and mechanisms such as Code of Conduct; Vigilance; Integrity Pact; Whistle Blower Policy; Conduct, Discipline and Appeal (CDA) Rules. Resonating with our vision, mission and values, these mechanisms underline our commitment to conducting business in an ethical manner, thereby creating long-term value and stakeholder confidence.

Fulfilling the requirements of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, HPCL has framed policies on material subsidiaries and policy on material-related party transactions. These are publicly available on our website. All the related/material party transactions were approved in line with the provisions contained in the relevant Act/Policies.

Risk Management

To safeguard the interests Identification of risks isto ensure that the risks are of stakeholders and ensure undertaken in a number of ways, controlled through a properly business sustainability, it is including structured workshops, defined framework. The Board is essential to have an effective risk brainstorming sessions, review apprised of the risk assessment management process. It acts a of documents, etc. The next step and mitigation procedures. barrier against potential threats is to evaluate the level of these The Corporation has engaged and risks arising out of emerging risks on the basis of likelihood the services of an independent scenarios both in the internal as of occurrence and magnitude of expert for assistance in the risk well as external environment. impact. Accordingly, the identified management process. risks are classified under critical, In this regard, we have an cautionary and acceptable risks. established process for managing risks and ensuring that our business According to the identified nature is conducted in line with our of the risk, effective treatment objectives as well as compliance plans are identified in consultation with the regulatory requirements. with the management team. The Risk Management Steering Periodical reviews are held Committee (RMSC) constituted under the Risk Management Charter and Policy 2007, guides and monitors the risk management process across the organisation.

Sustainability Report 2018-19 27 The World of HPCL

Delegation of Authority & Roles and Responsibilities

Senior management of the transparency of finances, a SBU levels, which form the Company consists of members standardised accounting system basis for guiding decisions and of the Board and Executive to track, collate and organise administrative functionalities in Directors/Chief General expenses and payments has various domains of the business. Managers/General Managers. been implemented. SBU/department heads are Limits of Authority Manual accountable for activities (LAM) Detailed manuals and related to their respective SBU/ This manual includes the scope department’s performance. of authority for the Board, the guidelines are available The provisions contained in the Committee of Functional Directors to facilitate the Limits of Authority Manual (LAM) and the Executive Committee, the guide decisions pertaining to Contracts Committee, the Bids decentralised decision- each SBU. Also, decisions related Committee and senior individual making process to important issues requiring positions. It also includes different approval of the Committee of functions such as Sales, Crude at various levels of Functional Directors (CFD)/Board and Shipping, Capital Projects, the organisation. are put up for consideration before Operations and Distribution, the CFD/Board. Finance, HR and inter-functional groups. This ensures a Detailed manuals and guidelines well-defined and transparent are available to facilitate the decision-making process, with no decentralised decision-making room for ambiguity. process at various levels of the organisation. Some examples are: Procurement Manual This includes details of the Chart of Accounts procedures to be followed It defines specific roles and while undertaking and finalising responsibilities and approval procurement contracts. It mentions matrices for finance-related procurement authorities at various activities. It supports levels and rules and processes to documentation of bills, invoices be followed for procurement. and expense reports through a central digitised platform. In addition, there are a number Further, to ensure complete of manuals at corporate and

Code of Conduct (CoC)

In compliance with the terms The aim of the Code is to further This Code shall be read in of Regulation 17 (5)(a) of the enhance ethical and transparent conjunction with the Conduct, SEBI (Listing Obligations and process in managing the affairs Discipline and Appeal Rules for Disclosure Requirements) of the Company. This Code officers applicable to Whole Time Regulations, 2015, ‘Code of is applicable to: Directors and Senior Management Conduct for Board Members and Personnel. All Board members and [a] All Whole-Time Directors Senior Management Personnel of senior management personnel Hindustan Petroleum Corporation [b] All Non-whole-time Directors, have provided the Annual Limited’ has been devised by the including Independent Directors Compliance Certificate duly Company, including the duties signed by them as on March 31, [c] Senior Management Personnel of Independent Directors as 2019. During 2018-19, there were envisaged in Regulation 17 (5) (b) no material transactions with of the SEBI (Listing Obligations Directors or their relatives having and Disclosure Requirements) potential conflict with the interests Regulations, 2015. of the Company.

28 Hindustan Petroleum Corporation Limited Vigilance Mechanism

To ensure fair and transparent promoting ethical values and HPCL has been conferred with the practices within the organisation, sharing case studies with prestigious ‘Vigilance Excellence HPCL has an independent vigilance employees through the in-house Award’ under Outstanding department administering the vigilance publication, Jagaran, and Category for ‘Best Institutional vigilance matters. Our vigilance observing vigilance awareness Practices including IT Initiatives mechanism is based on the week every year. for Fighting Corruption in the guidelines of the Central Vigilance Organisation’. On behalf of Based on the Vigilance Awareness Commission (CVC) on vigilance our Corporation, C&MD, Shri Week’s theme for 2018-19, management in public sector M. K. Surana and CVO, Shri U. ‘Eradicate Corruption-Build a enterprises and instructions Krishna Murty received this New India,’ various outreach issued from time to time by award at the hands of the Hon’ble activities were organised to spread the Department of Personnel President of India, Shri Ram awareness among the masses. and Training (DoPT) as well as Nath Kovind, in the presence of Various campaigns were run to the administrative ministry i.e. Minister of State (Independent administer the e-Integrity pledge to Ministry of Petroleum & Natural Charge) PMO, Personnel, Public employees and other stakeholders Gas (MoP&NG). Grievances and Pensions, in large numbers through e-kiosks, Dr. Jitendra Singh; the then Chief Vigilance complaints are handled corporate website and LPG IVRS. Vigilance Commissioner, Shri K. as per the complaint handling Interactions with employees, V. Chowdary and other dignitaries policies stipulated in the Vigilance including new recruits and other at the inaugural function of Manual 2017 of CVC. stakeholders were held along with Vigilance Awareness Week 2018. surprise inspections and system Under preventive vigilance, various improvements were suggested, activities are conducted including wherever necessary. The vigilance surprise and regular inspections, department coordinated with study of systems and procedures, various agencies such as CVC, and regular interaction with CBI, MoP&NG, etc. employees, stakeholders and the public at large. In addition, the During the year, 203 complaints vigilance department creates were received by the vigilance public awareness by conducting department, of which 187 were sessions in schools and colleges, resolved; 14 complaints carried forward from 2017-18 were also resolved during 2018-19.

Vigilance Excellence Award

Sustainability Report 2018-19 29 The World of HPCL

Ethics & Integrity

We, at HPCL, are committed to Integrity Pact in our business processes to achieving economic, ecological Integrity Pact was introduced to create a sustainable, healthy and and social responsibility enhance ethics/transparency in mutually beneficial relationship. objectives of sustainable the process of awarding contracts Thus, we have established a Public development consistently through and an MoU has been signed Grievance Redressal System. a balance in our varied operations with Transparency International. The grievance redressal process and activities. We strongly The pact was made applicable has two levels to address any believe in conducting business in in the Company effective issue. Each complainant has the a fair and transparent manner by September 2007 for contracts right to escalate issues to the next adopting the highest standards having a value of `1.0 Crore and level if the resolution provided in of professionalism, honesty, above. The Integrity Pact is a the first level is not satisfactory. integrity and ethical behaviour. part of tender documents to There are designated officers be signed by the Corporation available at specified time at our Right to Information (RTI) and by the vendor/bidder. major locations to facilitate the The basic objective of the RTI Act Independent External Monitors redressal of public grievances. is to empower citizens, promote (IEMs) review the references Detailed information on grievance transparency and accountability received from the vendors and redressal officers are available on in the working of the Government, recommend their decisions to the our corporate website. contain corruption and make management for compliance. democracy work for the people in We also promote the usage of a real sense. An informed citizen Centralised Public Grievances is better equipped to stay vigilant Whistle Blower Policy Redress and Monitoring System We have a Whistle Blower Policy on the instruments of governance (CPGRAMS), a web-enabled approved by the Board, which and make the government more grievance redressal system of the is available on our website. accountable. HPCL complies Department of Administrative The Policy aims to nurture a culture with the Right to Information Reforms & Public Grievances where employees feel safe to flag Act, 2005 (RTI). We have hosted (DARPG), through a link on our instances where rules, regulations detailed information on our corporate website. This provides and policies are not followed in the website about the procedure for an opportunity to stakeholders furtherance of business. The Policy exercising RTI. Officers across the to submit their grievances, provides protection from any kind country, representing different complaints or queries online. of unfair treatment or victimisation departments, have been appointed Grievances submitted on the for genuine whistle blowers while as Public Information Officers CPGRAMS portal are forwarded by any abuse of this protection (PIO) and appellate authorities the MoP&NG to the nodal officer warrants disciplinary action. to deal with the queries received for redressal within 30 days. from Indian citizens under RTI. Public Grievance Redressal We have toll-free helpline Mechanism numbers for registering customer We believe that addressing and complaints. All efforts are made resolving the concerns of our to resolve such complaints within stakeholders are essential to a stipulated period. We also have establish confidence and trust customer complaint management systems embedded in our SBUs to handle specific queries/ feedback/complaints.

30 Hindustan Petroleum Corporation Limited Supply Chain Supply chain is the key integrator of production, storage and distribution. Efficient management of supply chain is embedded in the core philosophy of our business practices. Delivering the right product, in the right quantity safely and in a timely manner is the overall objective of an efficient supply chain.

Improvements in supply chain management systems can directly improve customer service which can enhance profitability, customer loyalty, safety; reduce carbon footprint; and improve energy efficiency, among others. We also encourage the stakeholders in our supply chain to adopt green practices for a sustainable tomorrow.

Imported Refineries Pipeline Lube Lube Bazaar Crude Blending Distributors Lubes Plants

Clearing and Industrial Forwarding Customers Agents Vessel

Indigenous Terminal Terminals/ Aviation Aircrafts Crude Depots Service Facilities

Rail

Retail Outlets Automotive

Finished LPG Import Road LPG Plants LPG Domestic Product Imports Facilities Distributorships Customers

Sustainability Report 2018-19 31 The World of HPCL Industry Affiliations HPCL believes in taking the industry forward through an inclusive decision- making process, ensuring the interests of our stakeholders are taken care of.

We participate in consultative committee meetings for setting up policy frameworks and share our insights with the MoP&NG and other bodies such as the Oil India Safety Directorate (OISD), the Petroleum and Natural Gas Regulatory Board (PNGRB), Centre for High Technology (CHT) and others for public good and nation building.

Institutional Memberships All India Association of Industries (AIAI) All India Management Association (AIMA) Associated Chambers of Commerce and Industry of India (ASSOCHAM) Bombay Chamber of Commerce and Industry (BCCI) Bombay Management Association Chemical & Petrochemicals Manufacturers Association Confederation of Indian Industry (CII) Council for Fair Business Practices Federation of Indian Chambers of Commerce & Industry (FICCI) Global Compact Network India (GCNI) IMC Chambers of Commerce & Industry (Erstwhile Indian Merchants Chambers) Indo American Society Indo German Chamber of Commerce Maharashtra Chamber of Commerce, Industry and Agriculture Maharashtra Economic Development Council Federation of Indian Petroleum Industry (FIPI) Standing Conference of Public Enterprises (SCOPE) The Energy and Resources Institute (TERI)

Other Institutional Memberships National Institute of Personnel Management (NIPM) Vigilance Study Circle, Mumbai

32 Hindustan Petroleum Corporation Limited Awards and Recognitions While we try to excel in all spheres of our activities and are not limited to delivering excellence by boundaries of awards and accolades, we do believe awards and recognitions conferred by various forums/bodies/organisations are a testimony to our business ethos and an acknowledgement of our efficient functioning.

During 2018-19, HPCL received a number of awards and recognitions at various international and national forums.

‘Rajbhasha Kirti Pratham Puraskar’ and ‘Petroleum ‘Oil Marketing Company of the Year’ award by and Natural Gas OL Shield’ for two consecutive years Federation of Indian Petroleum Industry (FIPI) for in Official Language Implementation the third year in a row for leadership in oil marketing business in India

‘Best Innovation in R&D’ ‘Best Overall Performance Award’ ‘Best Navratna’ award in commendation MoP&NG for among oil marketing companies ‘Manufacturing, Processing and ‘Diesel Lubricity Additive’ and ‘HP for oil and gas activities carried Generating Sector’ category by CORRMIT’ for 2017-18 out during Saksham 2018 Dun & Bradstreet

‘Industrial Innovation Award ‘poWer’ featured in ‘India's Most ‘Forecourt Retailer of the Year’ 2018’ to HPCL R&D Centre, Trusted Brand of 2018’ list under award for the 11th time at Star Bengaluru by Confederation of ‘Petrol Category’ in ‘The Brand Retailer Awards 2018 Indian Industry (CII) Trust Report 2018’ by Trust Research Advisory Institute

Sustainability Report 2018-19 33 The World of HPCL

‘Oil Industry Safety Award 2018’ to ‘Golden Peacock Award for ‘Emerging Brand Award’ to ‘poWer Visakh-Vijayawada-Secunderabad Sustainability 2018’ by Institute 99’ at Times Network National pipeline (VVSPL) under ‘Cross of Directors (IOD) for initiatives Marketing Excellence Awards 2018 Country Pipelines’ category by Oil on environment, economic Industry Safety Directorate (OISD) and social aspects

‘Retailer of the Year (forecourt ‘India Concord Award 2018’ for ‘PRSI National Awards 2018’ for retailing)’ award at ET NOW Global ‘Best e-Procurement Initiative in (i) Best Annual Report 2017-18, Awards for Retail Excellence 2019 PSUs’ category at India Concord (ii) Best House Journal (Hindi) for Summit and Awards 2018 ‘HP Samachar’ and (iii) 2nd Best Sustainability Report by Public Relations Society of India (PRSI)

‘Excellence Award’ for ‘best ‘National Awards for ‘Best Digital Transformation security practices in energy sector’ Manufacturing Competitiveness’ Program’ award to information from Data Security Council of India for 2017-18 to Mazgaon and systems of Mumbai Refinery in (an initiative by NASSCOM) Silvassa lube blending plants by ‘Operator - Refinery, Petrochemicals International Research Institute for and Chemicals’ category at Asian Manufacturing (IRIM), India Downstream Summit

‘Brand of the Year Award 2018’ ‘FICCI Chemicals and ‘5 Star Rating’ awarded to Chennai to ‘poWer’ and ‘Emerging Petrochemicals Award 2018’ to New Terminal during CII – Southern No.1 Brand of the Year Award Mundra-Delhi Pipeline (MDPL) Region EHS Excellent Award by CII 2018’ to ‘poWer 99’ at World for excellence in safety in the Consulting Research Corporation petrochemical sector by FICCI (WCRC) IDEASFEST 2018

34 Hindustan Petroleum Corporation Limited ‘Platinum Award 2018’ to MDPL and ‘Safety Gold Award’ to Mazgaon ‘ASSOCHAM Gold Award 2018’ to Madurai LPG Plant in petroleum and Silvassa lube blending Skill Development Institute (SDI), storage and transportation sector plants and Calicut ASF by Visakhapatnam in the category of by Greentech Foundation Greentech Foundation ‘Best Start Up in Skill Development’

‘Greentech HR Award 2018’ to ‘Platinum Award’ for Green ‘Platinum Award’ for Green HP Management Development Residential Society to HP Nagar Building Standards to Institute (HPMDI), Nigdi by West residential colony by Indian Marathon Office by IGBC Greentech Foundation for Green Building Council (IGBC) excellence in training

‘Environment Gold Award ‘Best in Support Role–Strategic Maps in Business Intelligence 2018’ to Madurai LPG Plant by Partnership’ award to HP from Express Computer at Greentech Foundation Lubricants by Gabriel India Ltd. Technology Senate ‘Best Emergency Control Room ‘NSCI Safety Award 2018’ to ‘Emerging Brand Award’ to Award’ to Anantapur LPG MDPL for occupational health ‘poWer 99’ at Global Marketing Plant by Dept. of Factories, and safety management Excellence Awards 2018 by Government of Andhra Pradesh by National Safety Council World Marketing Congress of India (NSCI) ‘Vikreta Utkarsh Puraskar ‘Green Supply Chain Company 2018’ for best supplier ‘Best Digital PSU’ and for 2018’ at Express Logistics and among all POL suppliers ‘Employee Productivity’ Supply Chain Leadership Awards from National Aluminium awards under ‘Navratna’ ‘FICCI Chemicals and Company Ltd. (NALCO) category at Governance Now Petrochemicals Award 2018’ PSU Awards 2018 ‘Factory Safety Award 2019’ to to ‘HP-FurnOKare’ and Awa location of MDPL under ‘Industrial Good Relations Award’ ‘HP-BioActiva’ by FICCI ‘Small Scale Factory’ category to Madurai LPG plant by Ministry Award for ‘Best Payments in Rajasthan by Ministry of of Labour and Employment, Technology/Initiative of the Labour, Factories and Boilers, Government of Tamil Nadu Year’ for HP Re-Fuel Programme Government of Rajasthan Multiple ‘Garden Awards’ to HP and ‘Most Disruptive Payments ‘Exceed Platinum Award 2018’ to Nagar East residential colony Technology of the Year’ for MPSPL and ‘Exceed Gold Award from Brihanmumbai Municipal HP Fastlane at Payments and 2018’ to Mathura terminal for Corporation (BMC) and Friends Cards Summit 2018 excellence in occupational health of the Trees NGO Award for ‘Best Use of Mobile in and safety under ‘Petroleum ‘Intelligent Enterprise Awards’ a Loyalty Program’ to HP Re-Fuel Storage and Transportation in 'Enterprise Mobility' category at Customer Fest Show and Sector’ category by Ek Kaam for mobile application, Parivahak Costumer Loyalty Awards 2019 Desh Ke Naam NGO and 'Big Data' category for brand sales analytics through Geo

Sustainability Report 2018-19 35 Sustainability Ethos

Governance & Policies 40 Engaging with Our Stakeholders 41 Topics that Matter 47

Building Enduring Relationships Our unwavering commitment towards balancing business growth, environmental stewardship and social progress is guided by our sustainability ethos.

As part of the oil and gas sector, we understand our crucial role in maintaining a balance between our organisational development and its impact on the society and the environment. We imbibe sustainable business practices to address the social and environmental concerns and create value for stakeholders. This helps us stay resilient in a challenging business environment, ensuring long-term success.

Setting Goals

Looking ahead, our Corporation Developing is likely to face increasing Reviewing competition, policy reforms and Plans, a Roadmap to stricter environmental regulations. Processes To position ourselves ahead of and Achieve Sustainability Goals the performance curve, our ‘T20 Projects strategy’ has been formulated Approach with a clearly defined roadmap supported on the pillars of safety and integrity. This strategy is helping the Corporation realise its Vision and Mission. Further, it is helping us in navigating the future business landscape by enhancing our performance across the triple Monitoring bottom line indicators of people, and Measuring Mobilising planet and profit. Our sustainability Performance Resources approach is thus squarely embedded in our T20 strategy.

38 Hindustan Petroleum Corporation Limited Our strategy is designed to maximise the value that we deliver to our stakeholders, which in turn fuels our exponential growth and accelerated profit. This is achieved by implementing strategic initiatives identified across different areas with clearly defined physical and financial goals. Key focus areas include strengthening the core businesses of refining and marketing, enhancing the natural gas business, diversifying into petrochemicals and strategically participating in renewables and upstream businesses. We implement these strategies to maximise value for our stakeholders.

Sustainability Report 2018-19 39 Sustainability Ethos Governance & Policies

Sustainability Governance a wide range of sustainability implement sustainability initiatives We are aware that integration aspects, while covering different and coordinates for information of environmental and social businesses, managing goal-setting dissemination and collection. It also risks and opportunities in the and reporting processes, keeps the CSR and Sustainability corporate governance framework and enriching relations with Development Committee apprised as well as long-term business external stakeholders. of the progress. Annual review strategy is essential for an is conducted by this committee. The Corporate Social organisation’s success. Corporate HSE Department Responsibility (CSR) and formally carries out the process We have embedded sustainability Sustainability Development of material topic identification, in our strategy and organisational sub-committee constituted by the reporting on identified material culture across all the business Board of Directors is headed by an topics, review and approval verticals. An effective governance Independent Director. It provides of the Sustainability Report. structure enables the Corporation direction and monitors progress During the process, continuous to build a holistic sustainability in the sustainability focus areas. feedback is taken from CFD, strategy. This strategy provides Corporate HSE Department SBU Heads and other officers overall accountability across acts as an enabler for SBUs to concerned and incorporated in the Report.

Sustainable Development Policy Our Sustainable Development Policy reiterates our commitment to sustainability across business verticals and functions. The policy provides objectives and guiding principles to achieve our sustainable development goals.

Sustainable Development Policy

We at HPCL, are committed to achieve the economic, ecological and social responsibility objectives of sustainable development consistently through our varied operations and activities. We will strive to contribute to sustained overall economic growth by continually improving the efficiency and productivity of our operations. We will execute our business activities in such a way that the ecological balance is not impacted. We will develop and conduct programmes for the community, suitably designed towards building their individual capabilities.

We will: Promote sustainable development concepts amongst our employees, customers, stakeholders and others. Integrate the sustainable development objectives and considerations in all our business plans. Deploy efficient and clean technologies towards realising minimal impact on environment. Develop and implement good practices for optimal usage of natural resources. Continuously monitor and control our activities to minimise carbon footprint. Endeavour to provide a clean, healthy and safe working environment to our employees, neighbours, customers, consumers and stakeholders. Sustain appropriate development programs for our employees, customers and neighbouring communities. Incorporate customised management systems to monitor and control progress of Sustainability development objectives. Remain committed to disseminate information on our sustainability performance.

40 Hindustan Petroleum Corporation Limited Engaging with Our Stakeholders

To ensure that we create value in communities. Throughout the year, of the Corporate HSE department short and long term, we take into we engage with our stakeholders and other line management consideration the concerns of to discuss and understand representing different SBUs our stakeholders in our business material concerns and address engage with our stakeholders strategy and operations. them through timely and through in-person interactions, effective decisions. group discussions, trainings, We maintain effective and Annual General Meetings (AGMs), regular communication with our Following a clearly defined path of surveys, grievance redressal stakeholders, which include an stakeholder engagement ensures mechanisms and press releases. extensive network of people, regular interaction in a systematic organisations, businesses and manner. Our sustainability division

Approach To evaluate the issues raised by our stakeholders, we adopt a structured approach through effective discussions at the strategic level. To this end, we undertake stakeholder engagement workshops to sensitise our Stakeholder Stakeholder Stakeholder Managing stakeholders on sustainability Identification Prioritisation Engagement Stakeholder issues. These workshops Expectations provide an opportunity to garner perspectives and help us strengthen our partnerships.

Identification of Stakeholders For us, stakeholders include all those impacted by our organisation’s operations and those who impact our operations. The process to meet our stakeholders’ expectations is initiated by identifying and defining the distinct stakeholder categories – external and internal. This is the first step of an effective stakeholder engagement strategy.

Our Internal and External Stakeholder Groups*

Internal External Stakeholders Stakeholders

Employees Customers Contract Workmen Management Dealers and Distributors Competitors Non-Management Suppliers/Contractors Investors Transporters Local Community Forecourt Staff Regulatory Departments at Retail Outlet Local Administration LPG Delivery Person/Staff Shareholders

* In no order of preference

Sustainability Report 2018-19 41 Sustainability Ethos

Stakeholder Prioritisation The first step to establish the mode and periodicity of stakeholder engagement is stakeholder prioritisation. The periodicity and engagement mode can span from one-on-one interaction on a monthly basis to annual group level meetings to enhance strategic collaborations. To formulate an effective strategy, we assess the nature and depth of the impact that these stakeholders may have on our business and the extent to which our business decisions will make an impact.

Stakeholders prioritisation matrix

Responsibility Influence Proximity Dependency Representation Directly or Representing Towards Whom With Influence or Who Regularly Stakeholder Group Indirectly Communities, the Company has Decision-Making Interact with the Dependent on Employees and Responsibility Power Company the Company Others Management Employees X X X X X Non-Management Employees X X X X X Dealers and Distributors X X X X X Suppliers/Contractors X X X X X Transporters X X X X Forecourt Staff at Retail Outlet X X X LPG Delivery Person/Staff X X X Contract Workmen X X X Competitors X Investors X X X X Local Community X X X X X Regulatory Departments X X X Local Administration X X X X Shareholders X X X X

Stakeholder Engagement While sustainability topics are complex, interdependent and interconnected, individual perspectives vary based on the stakeholder’s understanding of and exposure to that issue. We consider these factors in the mode of engagement and devise requisite methodologies to extract results valuable for the business and the stakeholders. Our preceding detailed materiality assessment included the element of survey design for each of our identified stakeholder groups. The materiality workshops and engagement sessions were carried out with various stakeholder groups across zones/regions/locations of our SBUs. Topics of sustainable development and environmental issues ranged from the latest trends, best practices and regulatory landscapes to future scenarios. In 2018, we engaged with 1,028 stakeholders at 16 locations across India. Further, to validate the concurrency of the identified material issues during the current reporting cycle, we undertook workshops covering 278 stakeholders and received 244 sample survey responses.

42 Hindustan Petroleum Corporation Limited Awareness Collection Assigning building of Aggregation weightage Validation through responses of responses to of material stakeholder from target responses topics workshop group

Managing Stakeholder Expectations

Key Topics Modes of Engagement Our Response

Management and Non-Management Employees

Career progression Annual performance reviews We provide timely performance reviews and appraisals of opportunities for and appraisal system our employees through appropriate feedback mechanism, higher education via online performance review and appraisal system. Education Growth Plan (EGP) We have devised an education growth plan for our employees to enable them to fulfil their higher education ambitions. Focus on health Monthly/quarterly safety We have established an incident-free workplace and safety committee meetings through regular safety trainings, health check-ups and awareness sessions. There is a periodic medical check-up that covers our employees under the Periodical Medical Examination (PME) Scheme and is defined by the age profile and nature of work. Safety training programmes such as Project Shapath and Shrestha. We keep safety at the core of activities and to internalise it as a culture, we conduct Behaviour Based Safety (BBS) training programmes. Grievance Regular interactions We have effective online grievance redressal redressal E-platforms mechanisms such as ICS E-Care, HR Direct and Reflexion to resolve grievances. These are made available to our employees to address their concerns. Need-based Regular in-house technical With a strong focus on initiatives and programmes to trainings and behavioural trainings enable our employees gain competency and enhance their Nomination to external trainings, skills, we organise technical and behavioural trainings. conferences and seminars Some of the capability development initiatives that are available to our employees include certified Petroleum Manager Programme, MBA (Oil & Gas), HP Academy and nomination of employees to conferences and seminars of international status. Rewards and Annual/biannual In order to motivate our employees to higher levels of recognition recognitions schemes performance, we provide incentives such as Performance Related Pay (PRP) to management employees and productivity incentive schemes to non-management. To reward our deserving employees, we have schemes such as HP Icon, Outstanding Achievers Awards, HP Gaurav Award and many more. Work-life Regular interactions We have undertaken meticulous efforts to uphold balance Employee-connect forums a conducive work environment taking up activities such as Apnotsav, Hum fit toh HP fit, picnics, quiz competitions, festival celebrations and Women’s Day celebrations, to name a few. We counsel and extend our support to our employees and their family members through Paramarsh.

Sustainability Report 2018-19 43 Sustainability Ethos

Key Topics Modes of Engagement Our Response

LPG Distributors

Competition One-on-one meetings Appropriate solutions are identified and from peers executed based on the situation. Product quality and Regular distributor meets We closely examine quality constraints during product delivery Regular visits and inspections different phases of our complete value chain. We develop novel solutions and utilise technologies such as a Vehicle Tracking System (VTS), Optimised Logistics Assistant (OLA), online inventory monitoring and online LPG connection to ensure timely product delivery. Our operating workforce carries out regular inspections. Safety Training programmes on safety The distributors are consistently guided on Regular inspections the safe management of products. and safety audits Timely safety audits and reviews are carried out at retail outlets and LPG distributors.

Retail Dealers

Improvement Regular meetings with We have established a portal to lodge, review in vendor services vendors and dealers and settle the grievances within a definite period. Also, action is taken against defaulting vendors. An effective monitoring system is established for compliance. Upgradation One-on-one discussions During the year, we have acquired DUs in substantial of outlets and Regular dealer meets numbers, with the most up-to-date configuration, Dispensing Units and the same have been provided to our dealers. (DUs) We have replaced 100% old DUs, as per MoU target.

Supplier and Vendors

Complaints redressal Complaints redressal mechanism We have a strong grievance mechanism for our mechanism suppliers and contractors. Complaints can be directed to the unit heads at the operating locations on a specified day and at a specified time every week. Health Training programmes on safety The suppliers and contractors are frequently and safety Regular health check-ups involved in training programmes and fire Regular meetings drills planned at their work locations. Timely health check-ups are arranged with the support of renowned hospitals. To stress on secure and safe driving practices, safety parameters, trainings and awareness campaigns such as HP-SOW encompassing technical and behavioural aspects are carried out for our transporters and their crew regularly. Higher running and Trainings To bring awareness about fuel conservation and defensive maintenance costs Tank truck health check-up driving habits, we arrange regular training programmes. Through co-ordination with leading OEMs, we organise camps for tank truck fleet. We also reward the top performing drivers. Improved RTKM Regular meets and discussions We have implemented the improved Online transportation rates One-on-one interactions Logistics Assistant (OLA) in-line with the local requirements and necessities.

44 Hindustan Petroleum Corporation Limited Key Topics Modes of Engagement Our Response Increased Regular supplier meets To ensure transparency and reliability in the bidding transparency at operating level process, we have a real-time tendering process. Time delay in One-on-one meetings We arrange panel meetings with select representatives. tendering process Panel meetings Pre-bid meetings On-time payments Email communications To cater to online payments, a robust system has been One-on-one meetings set up which enables transporters to check their payment Online platforms status, taxes and amount of TDS that has been deducted. Payment process Online platforms We have an integrated disbursement module, Need-based communications which is a platform through which bills can be Vendor trainings submitted and tracked by the vendors. To reduce cycle time and enhance transparency, we are constantly automating and upgrading existing processes.

Delivery Men

Customer retention Regular training sessions To help our delivery staff enhance their knowledge and instil an attitude to create differentiated customer experiences, we undertake programmes such as Ji Haan Samarth and Samvad. Training needs Regular interactions We have specific SOPs for delivery men, both in LPG Training sessions on safety and retail, on safe use and handling of products. We organise training sessions for the delivery men at regular intervals.

Contract Workers

Health and safety Annual health check-ups We arrange health check-ups of contractual workmen Regular wellness sessions and organise frequent sessions on healthy living. We enhance well-being and productivity of our workforce by promoting good health and safety practices. Regular payment Regular interaction We arrange awareness programmes on Provident Fund and Need-based communication ESI-related matters, thus enabling the contract workmen to understand the minimum wages in a more detailed way. Training needs Regular trainings We carry out regular trainings on workplace safety and emergency preparedness.

Regulators

Community Regular interaction with We constantly engage in CSR activities in areas of development the community through childcare, education, healthcare, environment, community our CSR initiatives development, sports and skill development, among others. Compliance Regular interactions with the We make sure that timely compliance to applicable Government departments statutory regulations and local laws is fulfilled. and statutory bodies We make sure that there is regular interaction with various government departments and statutory bodies on compliance related matters. Disaster Training on safety issues We engage with members from nearby communities management and mock drills for and neighbouring industries in on-site and emergency preparedness off-site mock drills to augment their level of Mutual-aid meetings preparedness and instil a sense of confidence. Meetings with local authorities

Sustainability Report 2018-19 45 Sustainability Ethos

Key Topics Modes of Engagement Our Response

Communities

Meeting deadlines of Meetings with local administration, We closely work with local administration, NGOs projects NGOs and implementing agencies and implementing agencies to enlighten them about the process and perspectives of each project. Timely follow-up is ensured for completion of identified projects within the defined time period. More support and Regular meetings We are in regular contact with the local communities regular meetings in with communities to upgrade the facilities provided to them. healthcare

Shareholders and Investors

Financial Annual Report We apprise our shareholders and investors on the performance Periodic press releases existing business environment and the Corporation’s Annual General Meeting strategy to encounter new challenges in the future. Analyst meet Good corporate Regular meetings We have a Stakeholders Relationship Committee ethics Online platform to address the grievances of security holders. and compliance To better recognise the apprehensions of our shareholders, we also seek feedback from our shareholders through feedback forms.

Customers

Awareness on safety Periodic campaigns on safety We promote awareness sessions on safety to enhance and environment and resource conservation customer awareness on safe usage of products. aspects Dedicated safety clinics are set up for LPG consumers to bring about awareness on safe handling of LPG. To sensitise the masses and bring about awareness among them, we conduct programmes oil and gas conservation, retail outlets and LPG distributorships. Product quality and Periodic customer satisfaction To avoid any degradation in quality and to maintain products service standards surveys and customer meets of highest quality standards from refining to distribution, we have set-up adequate systems and processes in place. We are constantly upgrading products which have minimum environmental impact. We organise yearly customer satisfaction assessments and surveys to receive customer feedback. Resolving complaints One-on-one meetings By means of multi-language online applications, we Need-based communication ensure that customer connect is established. Online complaint To attend to our customer complaints on a timely basis, we management system have effective complaint management systems in place. We also ensure alignment with the Centralised Public Grievances Redress & Monitoring System (CPGRAMS)

46 Hindustan Petroleum Corporation Limited Topics that Matter Materiality assessment is one of the most crucial activities to devise a sustainability approach. It helps identify ‘material issues’, generate sustainability actions and communicate them to stakeholders.

An exhaustive and comprehensive stakeholder engagement and materiality analysis exercise was conducted in 2018, covering more than 1,000 stakeholders and the materiality issues were ranked in order.

Materiality Matrix

1 Product safety

Business integrity Safety and security of critical assets Product and service quality 2 Customer relationship 5 experience and Grievance redressal 6 satisfaction 4

HIGH 3 Water mechanisms 7 management Research & Development Transport safety Reducing carbon emissions Human Rights 11 Transparency 8 Energy efficiency 13 Raw material availability and security 9 Occupational 14 health & safety Responsible 16 15 Partner and supplier 10 Renewable energy 28 marketing 18 17 12 management 20 Efficient project management CSR project management 30 23 Waste management Regulatory issues Supplier assessments Governance on sustainability Corporate governance and compliance on sustainability Performance management Flaring 31 22 34 26 and career development 32 19 35 21 New businesses Responsible sourcing and geographies

Importance to Stakeholders to Importance Supplier training and and procurement 25 capacity building 33 Employee engagement 29 24 27 and wellness initiatives Fossil fuel substitutes

LOW 37 Diversity and inclusion Talent development 36 Local community engagement and learning and needs assessments Asset utilisation Local procurement and supporting MSMEs

LOW HIGH HPCL’s Business Priorities

Sustainability Report 2018-19 47 Sustainability Ethos

We outline the material topics and their linkage to the GRI Standards and the reporting boundary. This report focuses on our approach and performance, and future aspirations on these topics.

List of material topics

Sr No. Material Topic GRI Standards Boundary 1 Product Safety GRI 416 and 417 Internal/External 2 Safety and Security of Critical Assets Non GRI Internal/External 3 Water Management GRI 303 Internal 4 Customer Relationships and Satisfaction Non GRI External 5 Business Integrity GRI 205 and 206 Internal/External 6 Product and Service Quality OG 8 Internal/External 7 Reducing Carbon Emissions GRI 305 Internal/External 8 Energy Efficiency GRI 302 Internal 9 Occupational Health & Safety GRI 403 Internal 10 Renewable Energy GRI 302, OG 2, OG 3 Internal and OG 14 11 Transport Safety Non GRI Internal/External 12 Waste Management GRI 306 Internal/External 13 Transparency GRI 102 Internal 14 Grievance Redressal Mechanisms Non GRI Internal 15 Efficient Project Management Non GRI Internal 16 Research & Development Non GRI Internal 17 Regulatory Issues and Compliance GRI 307 and 419 Internal/External

48 Hindustan Petroleum Corporation Limited As a follow-up, this year also we conducted stakeholder engagement and materiality analysis workshops to validate issues identified during the previous reporting cycle. Stakeholder engagement workshops were conducted at key locations, i.e., Corporate HQO, Marketing HQO, Mumbai Refinery and Visakh Refinery, covering a representative sample of 278 internal and external stakeholders. These stakeholders were made aware of the latest developments in sustainability in India and globally, and of various sustainability initiatives undertaken in our Company. Qualitative feedback about material topics obtained from the participants was used as an input in the materiality re-validation process. The feedback indicated that all the material issues identified during previous reporting cycle are still relevant to both the business and to our stakeholders with a perception shift depicted in the matrix.

Stakeholder Perception Shift on Material Topics

1 Product safety

Occupational Reducing carbon emissions health & safety 2

5 Safety and security of critical assets Business integrity

6 4

Customer 3 Product and service quality relationship 7 experience and satisfaction Renewable energy

11 Transparency 8 Water management Waste management Importance to Stakeholders to Importance 9 Energy efficiency 13 14 10 Research & Development

16 12 15 Transport safety

Efficient project management Regulatory 17 issues and Grievance redressal compliance mechanisms

HPCL's Business Priorities

Sustainability Report 2018-19 49 Fuelling Growth and Prosperity

Financial Performance 54 Physical Performance 55 Strategy for Tomorrow 56

Strength with Stability During 2018-19, Indian economy continued to be one of the fastest growing major economies in the world with an estimated growth of 7%.

The year witnessed a number of significant developments in India’s downstream hydrocarbon sector. As India takes giant strides on its path to sustained economic growth, we are committed to fuelling our people’s aspirations and contributing to this growth story.

Competition has been intensifying a total dividend payout of across all segments of the domestic `15.90 per share. downstream market. Oil marketing `6,000 Crore Our unwavering focus on companies also witnessed several Mark in net profit for the balancing our triple bottom line challenges including: performance has enabled us to third consecutive year Inventory losses contribute positively to India’s economy and society and testifies Exchange rate variation losses to our ability to adapt to the Crude oil price volatility changing business environment and deliver robust results amid Rupee depreciation challenges. We recognise that Despite these challenges, we while everything we deliver may continued to touch new peaks have a value attached to it, the of success and exceeded happiness we deliver is priceless. `6,000 Crore mark in net profit for the third consecutive year. The continued strengthening of balance sheet and cash flows enabled us to return greater value to our shareholders, with

52 Hindustan Petroleum Corporation Limited Sustainability Report 2018-19 53 Fuelling Growth and Prosperity Financial Performance

Our outstanding performance in 2018-19 was built on the solid physical and financial performances delivered by our refining and marketing divisions. Gross sales increased to `2,95,713 Crore from `2,43,227 Crore in 2017-18 EBITDA came in at `13,077 Crore vis-à-vis `12,521 Crore Profit After Tax was at` 6,029 Crore, resulting in an EPS of `39.56 Net worth increased to `28,175 Crore from `23,948 Crore

Economic Value Generated (` Crore) Economic Value Distributed (` Crore)

Total Revenue Operating & Service Cost Community Investment Profit After Tax Employee Wages and Benefits Payment to Providers of Capital Contribution to Exchequer 2,98,564.25 159.81 2,45,934.58 156.86 108.11 2,15,317.90

73,350.33 69,751.51 67,451.87

2,379.28 3,360.56 4,721.33 6,028.66 6,357.07 6,208.80 2,938.48 2,858.52 2,946.08 8,376.21 7,252.52 7,089.70 2018-19 2017-18 2016-17 2018-19 2017-18 2016-17

Shareholding Pattern (as on March 31, 2019) Total issued shares (%)

Oil and Natural Gas Corporation Ltd. 51.11 Financial Institutions 4.65 FII/OCBS 18.60 Banks 0.27 Mutual Funds (Includes Alternate 12.18 Investment Funds) Foreign Nationals (NRI, NRI-Repat, Individuals) 0.33 Employees (Physical) 0.04 Others 12.82

54 Hindustan Petroleum Corporation Limited Physical Performance

Refineries During 2018-19, our refineries at Mumbai and Visakhapatnam continued to enhance their overall physical performance with an increase in their crude throughput for the sixth consecutive year, driven by our continued focus on improving refinery processes.

Crude Throughput (MMT)

2018-19 2017-18 2016-17

Mumbai 8.67 Mumbai 8.64 Mumbai 8.51 Visakh 9.77 Visakh 9.64 Visakh 9.3

Operating performance in 2018-19

Capacity Specific Energy Fuel and Distillate Gross Refinery Crude Throughput Refinery Utilisation Consumption Loss Yield Margin MMT % MBN % % ($/bbl) Mumbai 8.67 115.6 82.82 7.08 77.6 5.79 Visakh 9.77 117.7 77.29 7.33 74.5 4.31

Marketing Sales Volume of Marketing SBUs We continued our fast-paced growth in downstream in 2018-19 (MMT) marketing and achieved several best evers in 2018-19 on the back of a wide array of customer-centric initiatives with strong supply chain support. All our 24.54 6.55 marketing verticals – Retail, LPG, Direct Sales, Lubes, Retail LPG Aviation, Natural Gas and Renewable Energy – performed exceptionally well. Total Sales Volume (MMT) 5.34 0.875 I&C Aviation

38.7 36.9 35.2 0.646 0.012 Lubes Natural Gas

52.36 21.5 OD&E Pipelines

2018-19 2017-18 2016-17 (Throughput) (Throughput)

Sustainability Report 2018-19 55 Fuelling Growth and Prosperity Strategy for Tomorrow

Our T20 strategy aims to expand To monitor and evaluate our To leverage technology our footprint in new business lines T20 action plan and its progress, for business and geographies, augment our we undertake a multi-layered capacities in the core business review structure with focus on transformation areas of refining and marketing, continuity of ongoing initiatives, and harness the focus on leveraging technology identification of new initiatives, and attain cost leadership across and facilitation of implementation opportunities the business value chain. Our T20 through necessary resources. associated with strategy is formulated to navigate Our Key Performance Indicators future challenges, capitalise on (KPIs) have been aligned to the Industry 4.0, we plan emerging opportunities and make T20 objectives. to capitalise on the the Company future ready. Our focus is on building a We are implementing several diversified and flexible business current advancements initiatives to fulfil the objectives portfolio aligned with the needs in digital technologies. of the strategy. We plan to build of the changing market along with on the excellent performance expansion of business footprints in recorded in recent years and overseas geographies. create new levers of future growth. In addition, HPCL has commenced Towards achieving this goal, we incubation of 15 start-ups with are expanding our refineries and project funding support under the marketing infrastructure through ‘HPCL Start-up India’ initiative. augmentation and expansion To leverage technology for business projects. Petrochemicals transformation and harness the has been identified as a opportunities associated with key lever of future growth. Industry 4.0, we plan to capitalise Investments are also planned to on the current advancements expand our natural gas portfolio. in digital technologies. We have created an Information Systems We are leveraging new business (IS) strategy group to drive opportunities such as participating technology-led transformation. in the Electric Vehicle (EV) These initiatives will strengthen ecosystem and capitalising on existing IT processes and allow new avenues of value creation us to leverage emerging digital 15 start-ups through collaboration with technologies such as Artificial supported under technology start-ups. Intelligence (AI), Internet of the ‘HPCL Start-up Things (IoT), robotics, virtual and augmented reality, machine India’ initiative learning and advanced analytics.

56 Hindustan Petroleum Corporation Limited Central Procurement Organisation

To promote excellence in through the Government Promotion of Local procurement and thereby e-Marketplace (GeM), resulted Enterprises achieve enhanced efficiency in procurement worth We closely engage with and transparency, we have `3.55 Crore made through the various local and small vendors incorporated the Central platform for commonly used for procurement activities. Procurement Organisation (CPO). goods and services in a short time. In the reporting year, we conducted In 2018-19, it handled strategic The agreement with A.TReDS Ltd. various vendor meets with special procurement for SBUs, corporate and M1Exchange for bill discounting focus on MSEs and SC/ST MSEs. and zones by placing purchase for MSME vendors facilitated We ensured compliance with the orders worth `19,566 Crore. `103.75 Crore worth vendor Public Procurement Policy and invoices discounted through the extended various benefits such Towards achieving standardisation Trade Receivables Discounting as exemption of Earnest Money and consolidation in procurement, System (TReDS) platform, thereby Deposit (EMD), allowing to supply the CPO has ensured item benefitting our MSME vendors. a portion by quoting within 15% of code-based procurement and Seamless Integration of ERP with the matching L1 rates and supplying supported the stakeholders A.TReDS achieved by HPCL is a up to 25% of the requirement. through expeditious generation first among the OMCs. Further, developmental orders and of items codes, timely assignment regular orders were released to of related HSN/SAC codes, Further, the CPO is continuously entrepreneurs developed under vendor registration and scientific driving other major initiatives the Entrepreneurship Development cost estimation. During 2018-19, of the Government. Project (EDP) to improve various strategic initiatives These include indigenisation their capacity and capability. resulted in a 9.8% increase in activity by spearheading We have also been fully abiding vendor participation across the INDEG Group under by the initiative ‘Make in India’ to categories, generating a saving of the ‘Make in India’ initiative, encourage manufacturing in India. `513 Crore at 2.6% over stage-wise implementation of benchmark price. recommendations to enhance We have achieved 32.87% of efficiency and transparency in procurement of goods and The Government of India’s key procurement, implementation services from MSEs against a initiatives towards strengthening of measures to revive the target of 25% in 2018-19. the ecosystem for MSMEs were construction sector in line with closely monitored for timely Cabinet Committee on Economic implementation. Diligent efforts by Affairs (CCEA) directives, and CPO in maximising procurement implementation of the PPLC policy.

Sustainability Report 2018-19 57 Fuelling Growth and Prosperity

Integrated Margin Management

Integrated Margin Management through focused endeavours (IMM) has been striving to create towards planning for the most new benchmarks in capturing optimal crude basket. IMM also 6 new grades and monitoring the entire played a key role in identifying of crude oil added value chain. To maximise Net opportunity crudes and carrying Corporate Realisation (NCR), out necessary analysis for we undertook various initiatives processing them in HPCL refineries. To identify margin improvement such as maximisation of crude As a result, six new grades of crude potential through planning and throughput and production oil from USA and Norway were scheduling of the lube blending of value-added products in added in the crude basket. plant, a study of the supply chain refineries, effective utilisation For optimisation of our supply of Lubes SBU was initiated. of HPCL supply and logistics chain, IMM helped improve the infrastructure, leveraging margin 2018-19 remained volatile and utilisation of our pipeline network, improvement opportunities in challenging for the international oil thereby achieving the highest crude oil and product sourcing, market with the Dated Brent price ever pipeline throughput of 21.5 and optimising inventory. touching a high of US $ 86/bbl and MMT through meticulous planning low of US $ 50/bbl. However, our During 2018-19, special focus of linkages and exchanges with risk management team handled was directed towards unlocking OMCs. Logistics cost optimisation higher volumes and increased marginal values by targeting SBU through realignment of secondary the overall risk coverage by wise full potentials. These helped linkages which earlier covered POL, implementing innovative strategies us improve overall margins and was extended to LPG products to protect refinery and marketing achieve the highest ever refinery as well. HPCL-owned LPG rakes margins. Our risk management throughput of 18.44 MMT. were deployed to lower energy principles, policies and activities expenditure and costs. We undertook efforts to improve are monitored by the Oil Price Risk efficiency in crude procurement Management Committee regularly.

Information Systems

In the current information Our Business Intelligence (BI) and machine learning that use age, IT systems play a key system has enabled data-driven cloud-based services and Robotic role in improving efficiency, decision making by providing Process Automation (RPA) streamlining communication, advanced analytics, enhanced technology. Digital initiatives aligning business processes with graphic representation & data such as Smart Terminal and Smart business objectives, enhancing visualisation and superior user LPG plant are focused to drive transparency and leveraging experience. During 2018-19, we IT business functions on revenue opportunities. All business upgraded our BI system to the increase, cost minimisation, processes at HPCL are supported latest version, which offers more asset utilisation and energy by robust information systems. flexibility and advanced features. efficiency, thus enabling to Sustainable IT is becoming A large number of reports, email reduce the organisation’s overall increasingly important and HPCL alerts and dashboards have been carbon footprint. Information Systems is also having developed for various stakeholders During 2018-19, various initiatives a strong focus in embracing Green across SBUs and functions. including enhancement of IT initiatives. At HPCL, business information e-procurement system to To align with future requirements is effectively handled through handle crude procurement, B2B and respond to business challenges, Enterprise Resource Planning integration system, generation we continuously strengthen our IT (ERP) system, workflowof exception-based email alerts, systems and increasingly adopt applications, web portals development and enhancement emerging technologies across and mobile apps. of new & existing web portals business activities. and new workflow applications We have undertaken several pilot & mobile apps were rolled out projects that involve applications leveraging artificial intelligence

58 Hindustan Petroleum Corporation Limited Information Systems Center, Hyderabad

to meet the requirements of real-time information to sales Existing enterprise various SBUs and functions. force. To manage relationships Existing enterprise server was and interaction with existing and server was upgraded upgraded to IBM E980 to harness potential customers effectively, to IBM E980 to the benefits of energy efficiency. a Customer Relationship Virtualising the workload in the Management (CRM) tool has harness the benefits of data center has lead to significant been procured and is being energy efficiency progress in ensuring sustainability. implemented. The CRM tool will also help the Corporation better We are leveraging mobility as understand the customers. a means to deliver application capabilities to users on the Security of information systems move. We also developed and continues to be a key focus area, implemented various mobile and we have taken several steps to applications such as web-based address this critical area. feedback system for LPG customers, updated information for dealers and distributors, and

Sustainability Report 2018-19 59 LPG Import Facility, Mangalore

Preparing for a Greener Tomorrow

Materials Management 64 Energy Efficiency and Conservation 66 Emissions 70 Focus towards Renewable Energy 73 Water Management 74 Resource Efficiency and Waste Management 76 Green Perspective 78

Doing More with Less The father of our nation said, “The world has enough for everyone's needs, but not for everyone's greed”. One of the biggest challenges facing the world today is environmental degradation and climate change due to overconsumption of natural resources. We have only one earth to live on and with its limited resources, humanity is overshooting its bio-capacity. Further, excessive emission of Greenhouse Gases (GHG) is causing global warming, with its impact visible through extreme weather events, rising sea levels due to rapid melting of glaciers and decline in the population of various species.

The concept of sustainable robust sustainable development To mitigate the risks of climate development is not new model and framework. We have change, companies across the to India. Much before the also put in place customised globe are striving to ensure concept was formally defined, management systems to synergies between business Mahatma Gandhi in his visionary monitor and control progress on operations and sustainability statement put forth foresight on sustainability objectives. across their value chain. For us, sustainable development responding to climate change is a To achieve environmental priority issue; it deeply influences “The earth, the air, the land and the stewardship, we have adopted the way our business interacts water are not an inheritance from best-in-class operating systems, with governments, customers and our forefathers but on loan from practices and processes. Our major local communities. We have a our children. So we have to hand installations are certified with the policy with the stated objective of over to them at least as it was latest environmental management reducing our carbon footprint and handed over to us.” systems. Effluent treatment incorporating a ‘Green Perspective’ plants, air emission controls The visible impacts of climate in our key organisational and hazardous waste disposal change have resulted in global initiatives and processes. systems have been installed at partnerships to move towards a our locations in line with the best We have a well-defined process sustainable future. practices in the industry and are for managing risks on an ongoing We, at HPCL, are aware of being monitored. Our refineries basis. We are also a member our responsibilities towards and several marketing locations of the comprehensive study safeguarding the planet and are ISO 14001 certified. As part of on ‘Climate Change Risks and conserving the environment for the ISO 14001 certification, we have Preparedness for Oil and Gas future generations. We strive undertaken Initial Environment Sector in India’. The outcomes of to achieve this by making our Review (IER) at our refineries. the study provide direction for business practices more Our annual ‘Sustainability incorporating measures to counter sustainable and futuristic. We lay Awards’ recognises exemplary probable impacts of climate strong emphasis on Health, Safety performance by refineries and change on our infrastructure, & Environment (HSE) aspects marketing locations on energy operations, and upcoming of the business along with a and water consumption. projects. Our environment policy guides our approach to environmental performance.

62 Hindustan Petroleum Corporation Limited Environment Policy

The Corporation is committed Objectives of this policy supplemented with mutual aid to conduct its operation in such are to: of neighbouring facilities and a manner as compatible with Adopt environment sound Government agencies. environment and economic operating systems, practices Endeavour to associate with and development of the community. and procedures. support R&D on environment Its aim is to create an awareness Strive to progressively bring by Government agencies and and respect for the environment, about an improvement reputed research institutes. stressing on every employee’s in the environmental involvement in environmental Programme reviews and performance of our facilities improvement by ensuring evaluation to measure progress by adopting eco-friendly healthy operating practices, of compliance with the policy. techniques/processes for optimal philosophy and training. use of energy and to reduce hazardous emission and wastes. World Environment Day Celebration Establish procedures and devise As an initiative to spread suitable method for disposal awareness about environment of toxic, other hazardous conservation, we observed the waste and scrap. World Environment Day on June 5, 2018. Under the theme of ‘Beat Create environment awareness Plastic Pollution’, we organised Our annual amongst its employees and events such as waste reduction develop programmes for ‘Sustainability Awards’ and handling workshop, beach environment protection. recognises exemplary cleaning drive, free Pollution Under Comply with the relevant Control (PUC) check camp to performance by statutory rules & regulations and create public awareness, flash mob, refineries and devise appropriate standards on competitions on environmental other cases wherever required. awareness, distribution of 20,000 marketing locations cloth bags to the public and Maintain highest standards of saplings to employees. on energy and vigilance and preparedness water consumption to respond to emergencies

Sustainability Report 2018-19 63 Preparing for a Greener Tomorrow Materials Management Efficient materials management calls for deriving maximum value from materials by their efficient conversion into finished products with minimal environmental impacts. Improved resource efficiency contributes to higher productivity, lower costs and an increase in business competitiveness. We are aware of the opportunities offered by efficient management of materials and are continuously working to improve the same.

We are mindful of our dependence on natural resources for continuing our business. We seize opportunities and craft strategies to become more resource efficient through technology upgrades, innovation and adoption of recycling techniques. We strive to ensure that we derive utmost value from the raw materials we utilise at our refineries and other facilities, thus preparing for a greener tomorrow.

Material Consumption at Refineries Recycled/Reused Materials in Refineries

Materials Unit Total Materials Unit Total Additives, Chemicals and MT 17,794 Slop MT 656 Catalyst Catalyst MT 138 Caustic MT 9,558.8 Liquid Nitrogen MT 2,584.4 Plastic Containers Nos 20,770 Lube Oil KL 450.4 Metal Containers Nos 9,845 Greases MT 6.6 Glass Bottles Nos 1,37,630 Dry Chemical Powder MT 11.2 Cotton Waste MT 4.0 Ethyl Mercaptan MT 10.9 Associated Material Consumption at Refineries Foam KL 56.4 Materials Unit Total Corrosion Inhibitors KL 45.3 Refrigerant MT 0.668 Filters Nos 7,767 Wooden Pallets Nos 600 Rubber Hoses Nos 480 Batteries Nos 402 RLNG MT 15,741 Metal Containers Nos 3,500 Hydrogen MT 468

64 Hindustan Petroleum Corporation Limited Material Consumption at Marketing Locations Highlights of resource intensity reduction initiatives: Materials Unit Total Introduction of 0.9 mm MS drums and optimisation Bottling Cylinders MT 65,47,430 of weight of HDPE containers. Brass Valves MT 73,113 Modification in tank truck locking system from eight Additives and Chemicals MT 20,275 to two locks, thereby reducing material consumption HFHSD MT 3,903 and inventory of locks. Pressure Regulators MT 5,574 Reconditioning of used MS drums at lube blending MTO MT 638 plant, resulting in substantial material savings. O-rings MT 308 Used hand jet printer instead of stencilling methods, Dry Chemical Powder MT 62 resulting in savings in ink consumption. Lube Oil and Greases MT 67 Introduction of high-performance long drain Conkote MT 767 energy-efficient engine oils. Cotton Waste MT 30 Caustic MT 18 Replacement of wooden pallets with durable and Ethyl Mercaptan MT 17 multiple use plastic pallets. Base Oils KL 6,00,122 Paint & Primer KL 1,025 Corrosion Inhibitors KL 2,88,295 Foam KL 143 Blue Dye KL 24 Cartons Nos 38,76,512 Tank Truck Locking-8 locks (Mechanical) to Plastic Seals and Caps MT 3,315 2 locks (Electromechanical) Filters Nos 1,425 Rubber Hoses Nos 3,807 Wooden Pallets Nos 965 RLNG MT 2 Metal Containers Nos 4,19,033 Plastic Containers Nos 3,58,31,332 Glass Containers Nos 262 Batteries Nos 1,673

Recycled/Reused Materials in Marketing Locations

Materials Unit Total Bottling Cylinders MT 63,24,629 Brass Valves MT 70,900 Plastic Caps MT 2,843 O-Rings MT 284 Metal Containers Nos 6,404 Used Oil MT 1,250

Sustainability Report 2018-19 65 Preparing for a Greener Tomorrow Energy Efficiency and Conservation Energy is a key input for economic growth. Our products are a source of energy for millions and are outcomes of processes that are energy intensive and need to be monitored closely for improving productivity, efficiency and reduction in emissions. We thus regularly review our processes and systems and make the required changes to conserve energy and become more energy efficient.

Direct Energy Consumption at Our Refineries and Marketing Locations (Million GJ)

Refineries Marketing

49.07 48.74 47.55 0.23 0.22 0.23

2018-19 2017-18 2016-17 2018-19 2017-18 2016-17

Indirect Energy Consumption at Our Refineries and Marketing Locations (Million GJ)

Refineries Marketing

2.10 0.97 0.96 0.82

2.01 1.99

2018-19 2017-18 2016-17 2018-19 2017-18 2016-17

Local conversion factors are used for energy consumption calculations. Energy is broadly consumed either by burning of fuels in our premises or by purchasing electricity from power grid. In this report, we have provided the breakdown of energy consumption by direct and indirect usage. We are working towards reporting the breakdown of energy consumption by utility across various locations.

66 Hindustan Petroleum Corporation Limited Energy Consumption Outside the Organisation This year, we estimate 8.6 Million GJ of energy consumption towards product movement of Marketing SBUs.

Note: Energy consumption accounted for product movement by road.

Energy Intensity (Direct and Indirect) at Our Refineries and Marketing Locations (GJ/MT)*

Refineries Marketing

MR VR

2.88 2.93 2.83 0.01 0.01 0.01 2.68 2.64 2.73

2018-19 2017-18 2016-17 2018-19 2017-18 2016-17

* For Refineries: per MT of crude processed; For Marketing: per MT of product throughput

VFDs for product pumps and LED lighting in sheds for energy conservation

Sustainability Report 2018-19 67 Preparing for a Greener Tomorrow

operating cost and conserving Energy Conservation at energy assumes highest priority. Refineries The Bureau of Energy Efficiency Our Mumbai and Visakh 30,710 SRFT (BEE) has extended Perform, refineries have implemented Achieve and Trade (PAT) Cycle Energy savings various initiatives to enhance II programme to the petroleum energy efficiency through in refineries sector, which is being coordinated modern innovative technologies by the Centre for High Technology and advanced techniques. (CHT) for Indian refineries. To achieve continued operational Our refineries, along with other excellence, both the refineries PSUs, are actively participating are participating in performance in this process and verification benchmarking study conducted by is in progress. Solomon Associates, USA for the fourth successive biannual period. We evaluate and identify areas The recommendations of the for substantial energy savings study are under implementation. and implement both long-term In addition, our refineries are also and short-term strategies undertaking Refinery Performance towards energy conservation. Improvement Programme (RPIP) The energy conservation measures for process optimisation and undertaken by our refineries energy consumption improvement. during 2018-19 resulted in savings of about 30,710 SRFT (Standard Energy constitutes a major Refinery Fuel Tonnage). component of refineries’

Processes monitored closely for improving productivity, efficiency and reduction in emissions

68 Hindustan Petroleum Corporation Limited Major Energy Conservation Measures

Mumbai Refinery Visakh Refinery Energy Conservation at Optimisation of CCR in Dry ice blasting of HRSG tubes Marketing Locations NFCCU operation for more Our marketing locations have taken Switching reformer fuel from steam generation several initiatives to achieve energy naphtha to fuel gas in DHT HGU savings. These wide-ranging DIU operation with Commissioning of new schemes interventions involve monitoring, sustained recycling for – CDU-II slop cut steam using energy-efficient equipment, hydrogen conservation generator, tempered water process optimisation, fine-tuning Commissioning of back pressure coolers, two additional hot and building capabilities. steam turbine generator well-off gas burners, continuous Energy saving initiatives capacity controller on CCR Introduction of lift gas to riser in undertaken by marketing locations: net gas compressor NFCCU to reduce steam Conducting periodic energy Cleaning fouled preheat Optimisation of power audits for identifying energy exchangers in CDU II consumption in PDU compressor saving opportunities Repair of damaged insulations Single boiler operation for Installation of efficient energy efficient asset utilisation Optimisation of stripping monitoring system for energy steam in CDU-I & II intensive equipment Energy savings through reduction in CDU-1 overhead pressure Replacement of magnetic Installation of Variable Frequency resonators in GTG III Drives (VFDs) for electrical drives Ceramic coating application on walls of PDA furnace Improvement in crude preheat Installation of temperature in CDU-II by energy-efficient equipment Revamp of SEU-1 furnace cleaning preheat exchangers Prevention of idle running Effective Flare Gas Recovery for Arresting compressed air of equipment through minimising flare loss and nitrogen leaks sensitisation of workmen The Mumbai Refinery generated The Visakh Refinery generated Replacement of conventional savings of ~13,116 SRFT in 2018-19. savings of ~17,594 SRFT in 2018-19. lighting with LED lights across locations towards energy conservation

Systems and processes are regularly reviewed for enhancing energy efficiency

Sustainability Report 2018-19 69 Preparing for a Greener Tomorrow Emissions Targeting the root cause of climate change, organisations across the world are taking steps to measure, monitor and mitigate Greenhouse gas (GHG) emissions. We are taking steps to mitigate GHG emissions through adoption of energy efficiency initiatives, switching to cleaner energy sources and carbon sequestration through trees.

Scope 1: Direct GHG Emissions at Our Refineries and Marketing Locations (Million tCO2e)*

Refineries Marketing

3.44 3.41 3.41 0.024

0.017 0.016

2018-19 2017-18 2016-17 2018-19 2017-18 2016-17

* Includes CO2 and CH4

Scope 2: Indirect GHG Emissions at Our Refineries and Marketing Locations (Million tCO2e)

Refineries Marketing

0.48 0.22 0.22 0.46 0.45 0.19

2018-19 2017-18 2016-17 2018-19 2017-18 2016-17

Estimation of Scope 3 Emissions

This year, we estimated 0.0059 Million tCO2, 0.0000447 Million tCO2, 0.0025 Million tCO2 towards domestic business travel by air, rail and commute of our employees, respectively. We enhanced our scope of calculating Scope 3 emissions due to product movement compared to that of previous reporting years. As a result, emission due to product movement of Marketing SBUs is estimated at 3.25 Million tCO2 (including enhanced scope of transportation by rail and road).

70 Hindustan Petroleum Corporation Limited GHG Emissions Intensity at Our Refineries and Marketing Locations (tCO2e/MT)* Refineries Marketing MR VR

0.003 0.003 0.231 0.233 0.238 0.003

0.196 0.190 0.191

2018-19 2017-18 2016-17 2018-19 2017-18 2016-17

* For Refineries: per MT of crude processed; For Marketing: Per MT of product throughput

The standards, methodologies and assumptions (based on operational control) used to calculate are obtained from the Intergovernmental Panel on Climate Change (IPCC) Guidelines for National Greenhouse Gas Inventories

– 2006, Central Electricity Authority (CEA) - CO2 Baseline Database for the Indian Power Sector, Version 13.0, June 2018 and India GHG Programme, Version 1, 2015 (for emission factor for air and rail transport).

Significant Air Emissions at Refineries in 2018-19*

Emission Type Unit Total Suspended Particulate Matter (SPM) MT 421 Nitrogen Oxides (NOx) MT 2,649 Sulphur Oxides (SOx) MT 4,516

* Measured values

Pollution Control Measures and Other Environmental Initiatives

Mumbai Refinery Visakh Refinery Carried out Leak Detection Established connectivity for Created dynamic emissions and Repair (LDAR) programme all CEMS, CAAMS and EQMS limit tags for all the dual fired for monitoring and controlling analysers with 100% connectivity furnaces/boilers in DCS of hydrocarbon emissions. to CPCB/MPCB servers. respective units. All the tags are incorporated in Process Marketing Carried out data analytics for Information Network (PIN). Recorded highest ever overall north boundary through air Ethanol Blending Percentage dispersion modelling to locate Submitted Online Continuous (EBP) of 5.5% in petrol. the source of the emission. Emission Monitoring System (OCEMS) compliance Procured 5,57,300 KL of Set dynamic emission limits for protocol data to CPCB. ethanol and 26,800 KL of six furnaces and established biodiesel for blending in MS and communication to CPCB/ MPCB. Upgraded Data Acquisition HSD, respectively. Software (DAS) to facilitate Installed open path technology, remote calibration of analysers. Sales volume of ethanol blended i.e., fence line monitoring system MS was 53,76,174 KL and (DOAS method) at the north Completed field execution jobs biodiesel blended diesel sale and west boundary. for real-time data transfer of was 5,56,616 KL. stack emission, liquid effluent and CAAMS to CPCB and APPCB websites.

Sustainability Report 2018-19 71 Preparing for a Greener Tomorrow

Achieved highest pipeline throughput of 21.5 MMT, leading to logistics cost optimisation and green transportation. Procured four LPG rakes rolled out under Liberalized Wagon Investment Scheme (LWIS) of Ministry of Railways for transportation of LPG from source to bottling plants to reduce logistics cost, ensure safe and easy availability of LPG and reducing Scope 3 emissions. Lubes SBU procured four new electric fork lifts during the year. We have formulated a Green Belt Development Marketed energy efficient multi-pronged strategy to foray into In our effort to increase the tree LED bulbs through our retail the e-mobility space. This includes: cover, we have been focusing on outlet network. growing indigenous local tree Commissioning of EV charging Released Letters of Intent (LOI) species found in that particular stations at retail outlets on for setting up 11 compressed region. Through such green pan-India basis. biogas plants in four states with belt development initiatives, we an envisaged total production Development of customised strive to mitigate environmental capacity of 20.58 TMT per annum electric three-wheelers in degradation. We have developed to increase usage of biofuels in partnership with OEMs for comprehensive guidelines the energy and transportation delivery of LPG cylinders through for our green belt initiatives sectors of the country. LPG distributors. One such pilot and are executing them project with 32 ‘Pradyut’ vehicles phase-wise. Through these Enabled clean energy access deployed with various LPG initiatives, we contribute towards to about 2 Crore low-income distributors is underway. carbon sequestration. households by providing new LPG connections under the Establishing battery swap In our commitment towards this Pradhan Mantri Ujjwala Yojana station network at identified goal, the mass movement called (PMUY) to safeguard health of retail outlets/other locations ‘Van Mahotsav’ is undertaken at women and children. for catering to 2/3W fleet our locations. During 2018-19, we aggregators and customers. observed ‘Van Mahotsav’ at various Promoting e-mobility marketing locations with green belt Carrying out feasibility study in Electric Vehicles (EV) are expected development projects covering terms of technology and scale to play a significant role in future more than 28 acres. We also planted for setting up of battery cell mobility solutions. In India, the 10,000 saplings in the vicinity of manufacturing plant. adoption of electric mobility our Visakh Refinery as part of the solutions is constrained by limited Exploring commercialisation of Andhra Pradesh government’s variants, high upfront cost, poor alternative battery technologies ‘Vanam Manam’ programme. charging infrastructure, long such as metal air battery refuelling time and range anxiety, technology in collaboration with among others. We are leveraging suitable partners. new business opportunities in the EV ecosystem and collaborating with technology start-ups to capture new avenues of value creation. During 2018-19, we commissioned EV charging stations at six retail outlet sites – one in Hyderabad, three in Jaipur, one in Delhi and one on the Mumbai-Pune Expressway. The number of retail outlet sites with EV charging facility now stands at seven.

72 Hindustan Petroleum Corporation Limited Focus towards Renewable Energy

As the global uptake of renewable energy increases, its growth is also set to accelerate in India in the foreseeable future. The Government of India is committed to increasing the use of clean energy sources and is undertaking various large-scale sustainable power projects. The emphasis on clean energy is extremely laudable and India is on its way to attain its target of 100 GW of solar capacity by 2022.

We, at HPCL, have aligned our T20 strategy with the Government’s agenda to promote renewable energy. Our total wind power and solar power installed capacity is 101 MW and 22.6 MWp, respectively. Key Highlights of 2018-19: Generated ~19 Crore kWh through wind farms and 1.20 Lakh of non- solar Renewable Energy Certificates (RECs). Expanded solar power capacity by 3.6 MWp at POL locations. Expanded solar power capacity by 2.6 MWp at our LPG bottling plants. Installed solar power plant of 12 KWp at Calicut Aviation Service Facility (ASF). Installed solar lighting at Bhuj and Visakh ASFs. Solar power panels installed at 737 outlets during the year.

Solar PV Plant at one of our marketing locations

Sustainability Report 2018-19 73 Preparing for a Greener Tomorrow Water Management

The world is grappling with the problem of providing usable and potable water. Population and economic growth have placed unprecedented pressure on water. To address this challenge, individuals and industries need to adopt water-saving techniques and water-management principles. Water security is among the top global risks in terms of development impact. It is also an integral part to the achievement of the Sustainable Development Goals (SDGs).

Our locations monitor water consumption and identify water conservation opportunities employing the 4R (Reduce, Reuse, Recycle and Recharge) approach. We also promote rain water harvesting and monitoring of consumption through the water balance approach. We are working towards achieving ‘Zero Liquid Discharge’ at our locations. We also conduct water audits. We ensure that our withdrawal does not negatively impact the water sources. During the reporting period, there were no significant spills or any significant effect on water bodies due to discharge from our operations.

Water Withdrawn by Source at Water Withdrawn by Source at Refineries Marketing Locations

Source of Water Quantity (TKL) Source of Water Quantity (TKL) Seawater 95,344 Groundwater through Borewell 728 Municipal 9,402 Municipal 356 Rainwater Harvested and 122 Tanker 234 Collected for Reuse Fresh Water from other Organisation 68 Tanker 34 River/Canal Water 79 Total 1,04,902 Rainwater Harvested and Collected 61 Others 31 Reservoir/Lakes 3 Total 1,560

Rainwater collection pond at Jodhpur IRD

74 Hindustan Petroleum Corporation Limited Specific Water Consumption at Refineries Specific Water Consumption at (KL/MT) Marketing Locations (KL/MT)

6.019 6.290 0.021 0.019 5.689 0.018

2018-19 2017-18 2016-17 2018-19 2017-18 2016-17

Water Recycled/Reused Some of Our Water Management Initiatives are: Installation of Effluent Quality Monitoring System Type of Water Quantity (TKL) (EQMS) to monitor pH, oil & gas and flow. The data Refineries connectivity of the EQMS is established till CPCB. Treated Water from ETP 778 Installation of water-efficient fixtures at locations. Used within Premises Conduct of water audits at marketing locations. Condensate Recovered 1,626 RO Reject Water 1,148 Reuse of water in processes. Reuse of Water in Processes 53,600 Installation of phyto-remediation to recycle (Bearing Cooling) sewage water. Sub-total 57,151 Recycling of water through ETP and STPs while Marketing Locations 220 maintaining the treated effluent parameters within Grand Total 57,371 the limits prescribed by CPCB/SPCB. Percentage of Water Recycled/Reused/ 54% Capturing rainwater through rainwater harvesting Recirculated structures at operating locations. Enhancement of employee awareness through contact programmes, newsletters and technical bulletins, among others.

Phytoremediation unit at Loni Terminal

Sustainability Report 2018-19 75 Preparing for a Greener Tomorrow Resource Efficiency and Waste Management

Disposal of waste in a responsible, safe and ethical manner is crucial for waste management. We believe a strong focus on recycling can reduce the adverse effects of waste on the environment, by reducing the amount of materials sent to landfills and incinerators and decreasing emissions generated from waste.

We are making conscious efforts to reduce waste in our operations. We comply with the applicable regulations stated by MoEF&CC, CPCB and SPCB.

Hazardous Waste Generation at Refineries

Type of Waste Unit Total Oily Sludge (Including ETP Oily Sludge) MT 7,840 Spent Catalyst MT 1,837 Insulation Wool Waste MT 252 Spent Charcoal (Including Coke) MT 84 E-waste MT 1.61 Oily Soaked Cotton Waste (Including Gloves) MT 5 Tyres and Other Rubber Scrap (Including Hoses and O-Rings) MT 1.75 Scrap Batteries Nos 382 Spent Metal Catalyst MT 136 Others MT 241

Hazardous Waste Generation at Marketing Locations

Type of Waste Unit Total Oily Sludge (Including ETP Oily Sludge) MT 612 Paint Sludge MT 51 Insulation Wool Waste MT 30 Oily Soaked Cotton Waste (Including Gloves) MT 7.3 E-waste MT 1 Chemical Containers Nos 5,224 Scrap Batteries Nos 986 Filter Elements Nos 1,558 Tyres and Other Rubber Scrap (Including Hoses and O-Rings) MT 13 Used Oil KL 21

76 Hindustan Petroleum Corporation Limited Non-Hazardous Waste Generation at Refineries

Type of Scrap/Waste Unit Total Metal Scrap MT 12,598 Wood Waste MT 180 Plastic Waste MT 74 Plastic Containers Nos 4,447 Metal Containers Nos 4,524 Scrap Equipment Nos 40 Others MT 249

Non-Hazardous Waste Generation at Marketing Locations

Type of Scrap/Waste Unit Total Metal Scrap MT 6,143 Paper Waste MT 4.5 Wooden Scrap MT 28 Plastic Waste MT 24 Plastic Containers Nos 53,389 Metal Containers Nos 11,799 Scrap Equipment Nos 1,211 Glass Scrap MT 0.04 Others MT 1.6

Waste Management Measures

Refineries Marketing issued pursuant to NGT Orders. Installation of flare gas recovery Disposal of waste generated In Execution Application systems in refineries to minimise through SPCB authorised filed by petitioners, NGT flared gases and utilise Common Hazardous Waste directed payment of interim them internally for fuel gas Treatment, Storage and Disposal compensation to restore requirement. During the year, Facility (CHWTSDF). environment. On challenge, the quantity of gas flared was 28,111 Supreme Court has stayed the Set up of phytoremediation MT, registering a reduction of order of NGT and directed CPCB based waste treatment plants at 6.5% over that of previous year. to consider the explanation of various locations such as Visakh HPCL before it arrives at its Off-spec products (slop) & Dumdum ASFs, HP MDI Nigdi. conclusion. HPCL has filed its generated during crude oil Commissioned new ETP at representation with detailed refining as well as during product Chennnai Lube Plant action plan before CPCB. handling are reprocessed in The matter is pending. secondary units. Conversion of wet waste to manure using organic waste 2. CPCB issued a circular dated Bioremediation of low converters and vermi composting 12.2.2016 directing OMCs to oily sludge of approx. techniques at few locations. install VRS at all retail outlets 2,000m3 by ONGC TERI Biotech with capacity of 300 KL/M or Limited (OTBL) at MR. Recycling of effluents more, in cities with million plus through ETP and STP. Processing of sludge by Mumbai population. In September 2018, Refinery and Visakh Refinery. Reuse of scrap material. the NGT disposed the matter, directing the OMCs to ensure ETP – I major equipment turn A brief note on the progress of installation of VRS, giving around was carried out at VR. ongoing cases pertaining to show timelines. The OMCs filed a Civil Procurement of oil spill response cause/legal notices received Appeal before the Supreme equipment for Single Point from the CPCB/SPCB: Court of India and the Supreme Mooring (SPM) and Fire & Safety Court vide its Order extended 1. In the case before NGT Charudatt at Visakh Refinery. the timelines for installation Koli & Anr Vs. Sealord Containers of VRS up to 31.03.2020 for & Others, HPCL has complied Outlets selling > 300 KL/M and with the directions of MPCB, up to 30.09.2020 for Outlets selling < 300 KL/M.

Sustainability Report 2018-19 77 Preparing for a Greener Tomorrow Green Perspective We understand that as a responsible corporate citizen of India, we must play our part towards caring for the environment and reducing our carbon footprint. We do this by incorporating the ‘green’ perspective in our business decisions and operational activities. We have adopted various initiatives to address global environmental issues such as energy conservation, waste management, water management, renewable energy and green supply chain.

Green Infrastructure On account of several green initiatives, our housing complexes in HP Nagar East and HP Nagar West at Mumbai were awarded ‘Platinum’ rating under green residential society rating system by Indian Green Building Council (IGBC). Our Marathon office at Mumbai was awarded with ‘Platinum’ rating by IGBC. Our Bhopal LPG Plant was awarded with IGBC Green Building Certification for admin block.

HP Nagar Housing Complex Water meter fixing and mass awareness Our residential complexes in Mumbai, HP Nagar East Rainwater harvesting to increase ground water table and HP Nagar West Housing Complexes are a living paradise and home to a number of families. Drip irrigation system Various initiatives undertaken for environmental Biodiversity conservation conservation at our residential complexes are: Waste management through segregation Harnessing the power of sun through Solar PV and bio composters Replacement of conventional streetlights with Regular stakeholder engagement and LED streetlights awareness sessions

HP Nagar - A Living Paradise Harmony with nature

Harnessing the sun Zero emission shuttle bus Pathshaala - Serving the needy

78 Hindustan Petroleum Corporation Limited GreenCo Rating GreenCo Rating In order to promote ‘green’ processes in our Location operations, we have adopted the GreenCo rating Hazarwadi LPG Plant Platinum system promulgated by the Confederation of Indian Jabalpur LPG Plant Platinum Industry (CII). Jodhpur IRD Platinum Silvassa Lube Blending Plant Platinum We are the first PSU and first company in the oil and gas sector to adopt GreenCo rating. In 2018-19, Ajmer LPG Plant Gold our five marketing locations were certified with GreenCo rating.

Hazarwadi LPG Plant Jabalpur LPG Plant

Jodhpur IRD Silvassa Lube Blending Plant

Ajmer LPG Plant

Sustainability Report 2018-19 79 Our People, Our Strength

The HP Family 84 Nurturing Talent 86 Capability Building 87 Managing Performance Aspirations 92 Rewards and Recognitions 93 Inclusiveness through Employee Engagement 94 Employee Benefits 96 Upholding Human Rights 96 Safety Culture 98 Security of Assets 102 Promoting Health 103

People Drive Our Strategy Our people are our inherent strength and the most important enabler in our endeavour to deliver happiness. The key to our success largely lies in the extraordinary talent and commitment of our employees. We are thus committed to providing them a challenging, engaging and safe environment for their sustained growth while fostering avenues for personal development.

The achievement of our strategic business objectives depends on the effectiveness of our human resource strategy. Developing, empowering and retaining value-driven, high-performing employees with the right skills is fundamental to our success in the current dynamic business environment. Our Human Resources department supports the business operations and helps enhance the capabilities and performance of each employee. Our HR policies are designed to help employees develop their personal and organisational skills, knowledge and abilities, helping them to realise their full potential. To create a robust talent pool, we focus on all aspects of human resource development such as talent acquisition, capability building, performance management, career development, reward and recognition schemes, engagement programmes and employee benefits.

People Capability Maturity Model® (PCMM)

People Capability Maturity Model® is a globally Capability Maturity Model. Subject Matter recognised HR excellence framework from Expert was brought on-board to assist with Gap CMMI Institute. PCMM consists of five maturity Assessment and assess the maturity level of the levels and is an integrated set of best practices HR practices. Quality Council of India (QCI), an that improve performance and key capabilities autonomous organisation under Department of for organisations to improvise their people Industrial Policy and Promotion was engaged management processes. People CMM Gap for assessing the maturity level for HPCL. After a Assessment study is the comparison of the rigorous process of assessment, HPCL was rated actual status of implementation of HR practices as ‘level 2’ under PCMM maturity level. in HPCL with that of the Practices and Goals The detailed gap assessment report was defined in the People Capability Maturity Model®. submitted to the Board of Directors and HPCL undertook the PCMM Gap Assessment action plan approved. It is advised to achieve Project to assess the current state of HR maturity level “3” on People Capability Maturity practices against the parameters of People Model® by March 2020.

82 Hindustan Petroleum Corporation Limited Sustainability Report 2018-19 83 Our People, Our Strength The HP Family

Over the years, our Corporation has grown with talented people embracing cutting-edge skills and commitment that has roots which grow deeper than just an employee-employer relationship. The ‘never say die’ attitude and the keenness to excel is what makes our people special.

Being a part of the HPCL family means to embark upon a journey that takes its people on a trajectory of growth. We undertake a strategic approach to manage our people, helping our business gain a competitive edge. We focus on sustaining an environment that inspires excellence in people and helps them attain individual and organisational goals.

Workforce Matrix in terms of Region, Age and Gender for 2018-19

Total Number of Employees Region-wise

Senior Middle Junior Employee Category Non-Management Total Management Management Management North Zone 26 179 427 301 933 South Zone 6 120 208 251 585 West Zone 16 202 519 818 1,555 East Zone 5 129 265 303 702 North West Zone 6 102 334 195 637 North Central Zone 6 82 258 124 470 South Central Zone 15 205 482 495 1,197 Corporate HQO 94 254 391 185 924 Marketing HQO 71 198 268 82 619 Mumbai Refinery 24 194 429 735 1,382 Visakh Refinery 26 151 495 563 1,235

Total Number of Employees (Age-wise and Gender-wise)

(Age-wise)

2,190 30-50 42 253 <30 years 180 years 864 >50 years 952 2,370 3,474 1,530 4,395 356 1,038 2,834

(Gender-wise)

288 7 1,699 117 3,480 596 9,270 969 Senior Management 3,803 249 Middle Management Junior Management Non-Management

84 Hindustan Petroleum Corporation Limited Employee Turnover Statistics Turnover includes retired, resigned, terminated employees and those who passed away during the reporting year.

Senior Middle Junior Employee Category Non-Management Total Management Management Management North Zone 0 7 13 26 46 South Zone 1 8 9 18 36 West Zone 0 5 12 57 74 East Zone 1 4 5 44 54 North West Zone 0 4 6 5 15 North Central Zone 1 2 10 8 21 South Central Zone 1 20 13 40 74 Corporate HQO 14 12 16 23 65 Marketing HQO 4 4 4 13 25 Mumbai Refinery 1 22 17 43 83 Visakh Refinery 3 14 16 33 66

Employee Turnover (Age-wise and Gender-wise) (Age-wise)

70 30-50 4 26 <30 years 8 years 18 >50 years 98 78 28 6 453 33 296

(Gender-wise)

26 9 93 15 106 21 514 45 Senior Management 289 Middle Management Junior Management Non-Management

Sustainability Report 2018-19 85 Our People, Our Strength Nurturing Talent In today’s stiff competitive business environment, acquiring and retaining talent is pivotal to sustain the business model while inducing novel ideas in the business.

We recruit the best available Weaker Sections) of the society. Discussions (FGDs), interactions talent through an objective To make the recruitment process with Subject Matter Experts and structured assessment more transparent and efficient, (SMEs) and senior management process. We strive to achieve we have introduced various executives and online surveys. diversity by hiring people from online applications including We continued with the flagship different backgrounds, gender, document verification system and induction programme, ‘Samavesh’, communities and origin. We follow panel nomination. to onboard new talent. This helped the Presidential directives and them transition to our culture To attract new talent and guidelines issued by the and values and provided them promote our employer brand, Government of India with respect the required exposure to various we developed Employee Value to reservation in services for SC/ facets of our business activities. Proposition (EVP) using multiple ST/OBC/PWD (Persons with tools such as Focus Group Disabilities)/EWS (Economically

We conducted ‘Samavesh’ in with several new additions such as five batches for 381 officers with welcome letters, standardisation of programmes such as: Compensation and Benefits (C&B) and stringent feedback process. Campus to corporate programme by IIT Bombay We nurture a supportive work environment that promotes HP FIRST work-life balance. We protect value-orientation session the interests of our employees Induction programme for newly through fair and transparent joined secretaries policies to promote their growth, safety and wellbeing. Our human Another initiative that enables a resources administrative services smooth transition of new joinees are automated, provide easy is HR buddy. The initiative began access, and ensure transparency in 2016 and was enhanced in 2018 and accountability.

Samavesh: Onboarding new recruits in the mainstream

86 Hindustan Petroleum Corporation Limited Capability Building We invest in upskilling our talent through innovative initiatives and progressive learning techniques to progress their career and grow our Company. We focus on enhancing competencies, strengthening the leadership pipeline, enhancing collaboration through cultural interventions, and leveraging technology for Learning and Development (L&D). Some of the capability-building initiatives undertaken for different cadres of management and non-management employees and extended workforce during the year were:

Interventions for Senior have new experiences, this club projects based on personal Management endeavours to create an increased stretched targets in line with the Vasishtha sense of self-awareness and business strategy. The participants Senior management plays a vital accomplishment. In 2018-19, two are exposed to various talent role as decision makers in business. retreats were held in the presence development tools and other inputs With an intention to enhance their of Yogi Sri M. and Shri Rakesh for their overall development. decision making and leadership Sharma and 29 biographies skills, we initiated the programme were compiled. Advanced Management Vasishtha – an exclusive platform Programmes for our Executive Directors– Project Periscope Senior executives are being that intends to create avenues A continuing talent development nominated to Leadership which transcend boundaries intervention for senior Development intervention having through participation in various executives (CGMs, GMs & foreign component for imparting divergent activities. From being DGMs) has been initiated during exposure to renowned faculties led by learned and eminent 2018-19. The intervention facilitates in India & abroad, including personalities across diverse fields participants in understanding self, foreign industry visits to keep to documentation of their life making necessary improvements them abreast of the latest global lessons in the form of biographies through executive coaching, technological advancements. to opportunities to ‘give-back’ and integrated with action learning

Sustainability Report 2018-19 87 Our People, Our Strength

across the ecosystem of Regional and a way of working in the SBU. Interventions for Middle Managers, sales officers, channel We launched this programme in Management partners and their staff. It also 2018 and organised a ‘Situational We always look forward to aims to enhance the technical Leadership II’ programme motivating our employees competencies of the officers, for 38 Regional Managers in through managerial development provide them with better business the first phase. programmes. To this end, we insights and empower the sales have developed Shrestha, team with tools to effectively plan which is a management Interventions for Junior and utilise resources to increase development programme aimed Management sales, leading to higher customer We organise various programmes at giving personalised attention retention. We organised two for our junior management to managerial developmental contact programmes with the for nurturing their skills and needs of LPG plant managers sales officers, alignment meet providing impetus on making our and equipping them with with Regional Managers, six CFA young officers competent and cutting-edge techno-behavioural workshops and 16 lube distributor industry ready. skills. This helps in improving workshops in 2018-19. engagement levels and creating a Certified Petroleum Manager culture of safety at their location. Lakshya Programme (CPM) The programme is designed to With a design philosophy similar To groom our young officers and develop self-discovery, build to that of project Kshitij, Lakshya prepare them to become future effective teams and create an was developed for the direct sales leaders, we designed CPM – a effective workplace. A total of 22 ecosystem with an aim to make specialised year-long certification participants were covered in this sales a scientific process in the programme in collaboration with programme. Taking a step further, SBU. We organised two contact the Indian School of Professional Machine Care Programme (MCP) programmes with the sales officers Excellence (ISPE) – to provide the was also launched in 2018 in various and an alignment meet with the right mix of technical, functional, LPG Plants. This programme is Regional Managers in 2018-19. managerial and behavioural based on concepts of TPM (Total competencies. Over the years, Sarvottam Productivity Management) and 440 officers were certified as To develop the capabilities of Autonomous Maintenance. part of this course. In 2018-19, LPG sales officers and Regional we completed CPM – 4 with 107 Managers and enable them to officers and started CPM – 5 batch Ecosystem-based align their actions and strategy with 102 officers. A special course Interventions to LPG SBU’s overall business Addressing the specific needs of for CPM – IS batch was launched strategy, LPG SBU and the HR individual SBUs, we have designed for 20 officers from IS – technical team collaboratively worked the following ecosystem-based and functional teams. on a project to understand the interventions: developmental needs of the entire MBA Oil and Gas Kshitij LPG SBU ecosystem, including The educational scheme of CPM It aims to make sales a scientific Regional Managers and sales has been extended to MBA – Oil & process in the Lubes SBU and officers. The ultimate objective was Gas by the University of Petroleum thereby develop a common dialect to make sales a scientific process and Energy Studies (UPES).

88 Hindustan Petroleum Corporation Limited MBA – Oil & Gas is a year-long Competency Development Manthan programme aimed at equipping Program 'NEEV' by IIT Bombay To tap the potential of our the officers with requisite A 14 weeks’ medium-duration young HR workforce, we started knowledge to enhance their on-line programme has been a year-long capability building effectiveness in driving business introduced with an objective intervention – ‘Manthan’. through sustained value creation to strengthen the capabilities It aims to build behavioural and the adoption of contemporary of young officers to deal with and technical competencies approach. Around 200 officers various professional challenges. and inculcates contemporary completed MBA - Oil & Gas in the This programme is designed for HR practices, enabling them initial two batches. In 2018-19, 82 enhancing technical and functional to practice innovation-driven officers who were certified in the competencies. The programme solutions and achieve higher CPM programme have enrolled will enable the participants to learn efficiencies. The initiative is based for the third batch of the MBA all the specific skills required to on Howard Gardner’s concept of programme and 92 officers who prepare and adapt successfully to ‘5 Minds for the Future’. 55 HR were certified in the CPM-4 the dynamic business environment. officers underwent this contact programme enrolled for the fourth programme and implemented HR Path batch of the MBA programme. some high-impact projects such as HR Path was launched to enhance Gyanjyoti and Shrestha in 2018-19. Executive Programme in General technical competencies of Management junior HR officers and to enable Paradigm In order to enhance the managerial them to contribute effectively Paradigm sessions are structured skills of the officers and make them to achieve organisational goals. contact programmes for new future ready, HPCL collaborated The programme has a unique officers where officers are with various reputed business model of crowdsourcing content provided an opportunity to meet schools like IIM Lucknow, IIM wherein the learner designs the the HR/SBU team to understand Indore and IIM Tiruchirappalli for e-learning modules and the same various processes and benefits. conducting ‘Executive General is verified by a mentor assigned to The meetings involve a confirmation Management Programmes’. him. In 2018-19, we developed 96 project idea presentation and an The objective of this intervention e-learning modules under different open discussion with BU heads on is to prepare the officers for domains of industrial relations. issues, challenges and aspirations realising their full potential We conducted two rounds of online of new joinees. This year, each and enabling them to achieve games for enhanced learning and zone conducted Paradigm business objectives. a technical competency test to in three phases. gauge their acumen.

Sustainability Report 2018-19 89 Our People, Our Strength

WIPS Workshop A one-day workshop, ‘Managing HE & SHE together’ – Leveraging Capabilities, was organised for the Women in Public Sector (WIPS) for 45 women employees of various member organisations at HP-MDI. The focus of the workshop was to appreciate gender diversity and leverage capabilities of women as well as men at the workplace, thereby maximising potential of women towards effective decision making in personal as well as professional domains.

Interventions for to deal with retirement from a skills, knowledge and attitudes to Non-Management Employees psychological, physical and financial perform and succeed in their roles. We designed interventions for perspective, the programme was The Samvad programme aims to non-management employees redesigned this year. It is organised sensitise the customer-service cell to enhance their technical and in two phases and covers topics staff of LPG distributors on various behavioural capabilities and help related to spiritual, physical, types of customers and equip them them handle career transitions. emotional and financial wellbeing with skills to handle grievances of the retiring employees and in an effective manner. The end Project Utkarsh their spouses. objective of both the programmes A longitudinal and integrated is to give HP GAS customers a initiative of LPG SBU, this project Project Utthan unique and differentiated customer aims to bring productivity Initiated by the HR team for the experience. Since its inception in improvements by fostering employees promoted from labour 2011, trainings have been provided collaboration, building ownership to the clerical cadre, the programme to more than 50,000 deliverymen and imparting knowledge and is aimed at developing technical and 17,000 customer-service skills. Since its implementation and behavioural competencies of staff. In 2018-19, more than 10,000 in 2009, the average production the participants, increasing their deliverymen were trained. rate of LPG plants has increased overall efficiency at the workplace more than 39%. and fostering team spirit. It targets Prerna attitudinal, behavioural and internal We deployed more than 30,000 Project Utkrisht process competencies, along with contract workmen through Aimed at improving the overall IT orientation and customer focus. various contractors for carrying efficiency of operations and Module-wise training was provided out non-core jobs in various distribution locations, this project to 70 pump fitters who were locations in the reporting year. enhanced productivity parameters redeployed in various SBUs. The objective of the Prerna module such as increasing bay filling rate is to create awareness about our by 108% from baseline (2012) and operations and educate them decreasing tank truck turnaround Interventions for Extended on personal health and hygiene, time to 45 minutes from baseline Workforce Training programmes for safety measures, alertness at (2012) figure of 104 minutes. extended workforce include focus the workplace, and help them Project Uttam on health and hygiene, safety, with personal financial planning, Under this project, two productivity financial planning, skills to handle wellbeing and modes of cashless settlements were signed at grievances (customer service) and transactions. We conducted 185 Mazagaon and Ramnagar Lube awareness-creation on operations Prerna programmes covering 9,194 Terminals, resulting in significant and modes of cashless transactions. contract workmen during 2018-19. improvement in production scales. Ji Haan Samarth and Samvad Trainings Machine Care Programme The Ji Haan Samarth (training Performing every task with Aimed at preventive maintenance programme for LPG deliverymen) excellence is what separates the through involvement of shop floor and the Samvad (training great from the good. We believe workmen in the concept of TPM programme for LPG showroom/ in building a high-performing team and Autonomous Maintenance, the Customer Service Cell (CSC) staff) for all-round excellence; for this, we Machine Care Programme (MCP) are joint training initiatives launched cultivate a Company culture that was piloted in select LPG plants by LPG SBU in collaboration induces impactful performance under project Shrestha 2.0. with the HR team. across all levels. We conduct trainings for both management and Path of Light The Ji Haan Samarth programme non-management employees with Path of Light is a pre-retirement has been designed to traverse focus areas such as behavioural, programme for our the course of a day in the life of functional and technical skills. non-management employees. LPG deliverymen and aims to Intended to prepare our employees equip them with the requisite

90 Hindustan Petroleum Corporation Limited Launch of HP Academy - An online learning management system

Trainings Imparted 2018-19

Male Female

41,414 5,019 Management 17,987 412 Non-Management 74,639 2,881 Contract Workmen 59,866 Transport Workmen

Technical Programmes the ‘Technical Trainings’ section at the Petroleum House learning To enhance technical containing animated modules for all centre. It is an interactive, simulated competencies, 308 technical/ SBUs and refineries. More than 90 virtual environment to practice functional internal programmes courses/videos are available on HP the field environment in various covering 4,536 employees Academy, which translates to more functions such as Refinery, Depot/ (22,131 training man-days) than 435 hours of training content. Terminal, LPG Plant and Retail and 210 technical/functional Outlet among others. An exhaustive ‘EBSCO’ digital external programmes covering library has been made available New Technical Training Institute 635 employees (2,644 training on the HP Academy homepage at Talegaon, Pune man-days) were conducted that provides access to technical To enhance technical competencies through various training and papers, journals, articles and of officers, a Technical Training development interventions during e-books to all officers. Institute was commissioned at the year 2018-19. Talegaon, Pune in June 2018, Augmented Reality and Virtual Learning Management System wherein prototypes, cut sections, Reality (AR/VR) Based Technical HP Academy, an online learning working models of terminal and Training Programmes management system, was launched depot equipment, viz., floating Leveraging technology to develop in September 2018; 3,082 officers roof tank, terminal automation interactive training programmes, across the country leveraged this system and MBLC equipment, have we commissioned Augmented platform to enhance their skills. been installed. Technical training Reality and Virtual Reality (AR/VR) This system has encouraged programmes were conducted for facility (hardware and software) self-learning among officers with 284 OD&E officers during the year.

Sustainability Report 2018-19 91 Our People, Our Strength

Industry-Academia towards developing sustainable providing continued education to Collaboration solutions and explore new HPCL officers through full time An MoU has been signed among frontiers in technology for future M. Tech. (2 years) in Chemical Director, IIT Bombay & CM&Ds energy needs. It will also provide Engineering at IIT Bombay of Oil PSUs to set up a ‘Centre an institutionalised platform for with the objective of fostering of Excellence in Oil, Gas and Industry-Academia interactions. collaboration between IIT Bombay Energy’ to provide a competitive and HPCL. MoU has also been HPCL has been focusing on advantage to India’s Oil and Gas signed with UPES, Dehradun for Industry-Academia collaboration industry. The Centre of Excellence industry-academia collaboration through MoUs with premiere is aimed at collaborative Research on several joint interventions. institutions. An MoU was signed & Capability Building in the areas by HPCL with IIT Bombay for of Oil, Gas & Energy. It will work Managing Performance Aspirations

Our robust performance management and appraisal process is aligned to our objective of promoting a culture of meritocracy. The HR team is focused on creating a high performance work culture through a structured process of goal setting and performance reviews and rewarding employees through objective performance assessment. Goals and targets for the year are defined in terms of Key Performance Indicators (KPIs) and corresponding milestones in a balanced scorecard format. KPIs are standardised to enhance the robustness of performance management by aligning all employees towards common organisational objectives. More than 80% officers are covered under standardised KPI templates.

The following environment and social parameters are available under the standardised KPI templates, depending on the role and responsibility of the individual: Stakeholder Management Environment Stewardship Corporate Social Responsibility Health & Safety Energy Efficiency Support towards Sustainability Efforts

92 Hindustan Petroleum Corporation Limited Rewards and Recognitions We have implemented reward and recognition schemes aimed at motivating all employees. For executives in the senior/middle management, ‘HP ICON Awards’ have been instituted since 2010 to identify and recognise People Managers, i.e., officers who place the interests of their teams before individual contributions. For officers in the junior management category, ‘HP Outstanding Achievers Awards’ have been instituted to recognise outstanding contributions, while ‘HP Gaurav Awards’ recognise outstanding efforts in the non-executive category. The HP ICON Awards is a bi-annual affair, while the HP Outstanding Achievers Awards and HP Gaurav Awards are given annually.

HP ICON People Managers Awards 2018 This year, there were 16 winners from 2,121 valid nominations with 494 unique nominations.

Outstanding Achievement Award 2017-18 This year, 107 officers received this prestigious award under various categories.

HP Gaurav – Celebration of a Decade This year we celebrated the 10th anniversary of the HP Gaurav Awards. All past winners were invited to relive their memories and special moments. This year, 92 non-management employees from the Corporate and Marketing divisions were conferred with the prestigious HP Gaurav Award.

Sustainability Report 2018-19 93 Our People, Our Strength Inclusiveness through Employee Engagement Employee engagement programmes play a key role in making the workforce more involved and engaged about the part they play in the Company’s success. We endeavour to enhance our employee engagement across all demographics. In 2018-19, we organised 136 employee engagement programmes across our locations.

94 Hindustan Petroleum Corporation Limited confidentiality. It is a 24x7 service that can be accessed over the Location-based Initiatives We undertake employee telephone, on the mobile app and engagement initiatives involving through live chat and email. fun-filled activities at our refineries and marketing locations, to ensure Sparsh that employees are relaxed, Launched in 2018-19, Sparsh is energised and committed to a healthy maternity programme working with zeal and enthusiasm. aimed to handhold and counsel new and returning HP Pariwar mothers. It provides free of cost Highlights of Our Employee HP Pariwar is an online social psychological coaching services Connect Programmes in platform that was launched in to enhance emotional wellness for 2018-19: 2018 to virtually connect with the HPites family get-together working mothers. families of employees keeping named as Refinery Vijayotsavam them abreast of the latest at Visakh Refinery and events in the Company. We also Hale and Hearty HPCL Apnotsav at Mumbai Refinery. Inspired by the vision of healthy organised online competitions for India as envisioned in the Screening of movies for different target groups. #Hum-Fit-Toh-India Fit Challenge, employees and their 7,968 HPites across Corporate/ family members. Young Engineers’ Conclave Marketing/Refineries/Zones The Young Engineers’ Conclave VR Got Talent and MR Got took up the challenge to walk a provides a platform to young Talent show for employees and minimum of 5,000 steps/day or engineers to share their their family members. a total of 150,000 steps over 30 experiences and learning, days. Employees across locations Outbound training programmes and exposes them to various collectively walked the equivalent for union office bearers technological advancements and of 14,03,758 kms/20,35,449,557 with their spouses. innovations through building steps. We also organised many interpersonal relations. Outbound training programme on-ground activities such as ditch for female employees. the elevator campaign, Zumba, Yuvantage masala bhangra, aerobics and Celebration of We organised ‘Yuvantage’, a cardio and laughter yoga across International Women’s Day. pan-India youth engagement different locations. initiative to enhance managerial, Inter departmental football and behavioural and technical cricket tournaments, indoor competencies of HP youth. Other Initiatives games for employees. To address the impacts We organised a bi-annual event, of sedentary work life, we Diwali and New Year’s Blitz, in Hyderabad this year. organised several walkathons celebrations in housing colonies. and marathons during the Walkathons/Marathons for Reboot 35+ period to inculcate a healthy We organise Reboot@35+ for promoting good health lifestyle. We organised 33 officers in the 35-50 age group. involving employees and their health workshops and 20 This unique initiative aims to family members. health check-up camps across operationalise the vision of locations to spread awareness engaging self, immediate family about various health issues members and build common among employees. interest networks across the Company. Under Reboot@35+, Our Mumbai Refinery organised we organised various events ‘Common Health Games 2019’ such as national photography in February; 290 employees and contest, painting contest, their spouses participated in this adventure excursions and jungle fitness event, where participants safari among others. assessed their physical fitness as per international benchmarks. Paramarsh To attract contractors who We have an Employee Assistance can provide better services Programme (EAP) called and higher productivity, we ‘Paramarsh’ that provides introduced ‘Travelling Allowance’ consultation on personal or as a welfare measure payable professional matters to our to contract workmen engaged employees, their spouses and under respective contractor(s) children. We involve independent at the Company’s location basis expert counsellors to ensure their actual attendance.

Sustainability Report 2018-19 95 Our People, Our Strength Employee Benefits Our Company promotes a conducive work environment with a good work‑life balance. We extend our support to our employees through several schemes and programmes, such as performance-related profit‑sharing scheme, superannuation benefits, leave encashment, gratuity, during‑service and post-retirement medical benefits, posthumous benefits for family members of employees, housing loan, vehicle loan, furniture loan, LFA, transfer benefits, employees’ children education loan, computer loan and monthly vehicle allowance and leaves such as Maternity, Adoption, Surrogacy, Child Care and Paternity.

Upholding Human Rights We are committed to ensuring that there is strict adherence to human rights and the relevant laws. We believe that a diverse workforce adds significant value to the Company and we embrace diversity and inclusion, thereby upholding a culture of empowerment for all. We are an equal opportunity employer and practice zero tolerance towards any kind of discrimination based on religion, origin, gender and/or status, and have strict mechanisms to deal with such cases.

All efforts are made to ensure that We adhere to the 10 principles of to deal with any cases of human our employees thrive in a conducive the UN Global Compact (UNGC) rights violation. In the reporting environment. We conduct business and are committed to upholding year, there were no incidents of in an ethical and transparent internationally proclaimed human discrimination on the grounds manner. We conduct regular rights. To ensure that human rights of race, colour, gender, religion, trainings to generate awareness of every individual are upheld, we political opinion, nationality, among our employees. have a robust grievance mechanism extraction or social origin.

96 Hindustan Petroleum Corporation Limited Shri Raja Kulkarni Samman

and Mumbai Refinery were signed MERC channel, employees can Freedom of Association and in April and May, respectively, log in grievances in any of the Collective Bargaining and implemented within the following matters: We strongly uphold Freedom agreed timeframe. 84 union of Association and Collective Grievances arising out of meetings were also organised Bargaining rights. We have cordial Performance Management (PM) across zones and locations to and productive relations with related matters. discuss and focus on resolution unions for more than two decades. of day-to-day employee issues. Grievances arising out of We have formal agreements with During 2018-19, nine MoUs were non-receipt of eligible C&B trade unions to deal with issues signed making significant changes under the Corporation Policy. related to labour laws, health and in our marketing operations and safety of our employees, training Grievances arising out of any processes. Revision of Long Term and education and grievance other Employee Relations Settlement (LTS) for Marketing, redressal. The effective grievance (ER) related matters VR and MR is in process. management system, fairness and at the workplace. emphasis on transparency have Management Employee aligned unions and employees Prevention of Sexual to our vision. In 2018-19, HPCL Relations Committee (MERC) We believe that effectiveHarassment Workshop Trust for Promoting Industrial grievance redressal system (POSH) Harmony awarded ‘Shri Raja We organised POSH workshops in ensures employee satisfaction and Kulkarni Samman’ to six senior 2018-19 to inculcate appropriate creates a fair, productive and safe union leaders for their outstanding workplace behaviour and work environment. Employees of contribution to industrial relations. promote gender sensitisation, HPCL have access to the grievance covering provisions of the At present, more than 94% of redressal system to settle their Sexual Harassment of Women at our non-management employees individual grievances. The process Workplace (Prevention, Prohibition are a part of unions, which for grievance handling through and Redressal) Act, 2013. We also enables them to voice their Management Employee Relations reconstituted Internal Complaint concerns. Before implementing Committee (MERC) ensures Committees (ICC) for marketing any management initiatives effective and prompt handling of zones and refineries in view of the that impact or concern grievances. We have established reassignment, superannuation, non-management employees, we detailed guidelines for timely separation or completion of three discuss them with trade unions grievance redressal through years of ICC member. To empower to understand their perspectives decentralised mechanism for women employees, we conducted and arrive at a mutual agreement. process implementation and online self-defence training programmes Career Development Policy (CDP) workflow application for effective called ‘Kavach’. settlements for Visakh Refinery implementation. Through the

Sustainability Report 2018-19 97 Our People, Our Strength Safety Culture Our approach to safety is encapsulated in our Safety Policy, which states, ‘As an integral part of its business, HPCL believes that no work or service or activity is so important or urgent that safety be overlooked or compromised’. This serves as a beacon for us to ensure a safe workplace and a healthy environment in and around all our refineries, plants, facilities and other premises. Our efforts go well beyond our operational areas as we strive to instil a culture of safety in the daily lives of our employees, their families and the community.

Live training on confined space entry Safety Management We believe that safety is an important tool to enhance productivity and reduce national losses. Driven towards a goal of ‘zero incident’, we maintain high safety standards in our operations. The safety culture is accorded priority by the top management and driven through HSE Department and Safety committees. It focuses on design and enforcement of safety rules and procedures, conducting safe operations, ensuring statutory compliance, being vigilant and prepared for emergencies, awareness creation and progress review on policy compliance. Our top management periodically reviews progress on compliance of various statutory audits and time-bound action plans for redressal of the safety observations.

98 Hindustan Petroleum Corporation Limited topmost priority for us. We have clearly define roles at various levels, Health, Safety and implemented safety and security communication hierarches, and Environment systems at all our operational for handling media and reporting We have Health, Safety and facilities to identify and manage to statutory authorities. This CMP Environment (HSE) departments hazards, risks and emergencies. is in addition to location-specific at multiple levels, starting from the Emergency Response Disaster headquarters including Corporate We provide our employees with Management Plan (ERDMP). and SBU level, Refineries, Zonal regular training on operational offices and at operating level, i.e., safety, security, emergency locations. They monitor and assess preparedness and crisis Process Safety Process safety is a disciplined the safety mechanisms through management. We acquaint them framework that focuses on major regular audits, create awareness on safe operating practices and hazards that may impact safety, among stakeholders, and engage protocols, thereby mitigating cause environmental damage with government officials on the risks during emergency and or lead to business losses. relevant matters. crisis. To enhance the confidence It deals with the prevention and of our local communities and control of events that have the neighbouring industries, we Safety Committees potential to release hazardous To encourage proactive engage them in our offsite and materials and energy. It relies on participation and involvement of onsite mock drills. principles of good design, besides the workforce in matters pertaining The National Disaster Management engineering, operating and to HSE, Safety Committees are Authority (NDMA) through Disaster maintenance practices. active at our locations, with equal Management Act (DMA), 2015 representation of management Process Safety Management (PSM) formulated provisions for better and non-management employees. is well integrated in the Company’s coordination at various levels These committees ensure Safety and Environment policies. to ensure effective emergency adherence to the Company’s We have established provisions response. Locations require HSE policies and compliance to to prevent/minimise the additional resources and external regulations, thereby maintaining a consequences of loss of primary help to mitigate impacts of major healthy and safe work environment. containment (catastrophic incidents. During such disasters, The committees obtain feedback releases of toxic, flammable or clear role and responsibilities of from the workforce, discuss explosive chemicals), involving our various levels of Corporation, viz., matters related to HSE context stakeholders. We maintain sound Locations, Zonal and Corporate pertaining to the location and operating systems, practices level enables better communication provide remedial recourses to and procedures equipped with and resources mobilisation. strengthen safety sustainability multi-layered protection barriers We have a Crisis Management through participative management complying with the highest Plan (CMP) that documents process. These committees also standards of preparedness to clear roles and responsibilities identify safety-specific training tackle emergencies. We also with communication details of needs of the employees. organise awareness and refresher officials at respective Locations, training programmes and Zones, Corporate Offices and compliance audits as part of the Emergency Response and external authorities in case of a management review and continual Crisis Management major incident/disaster which The very nature of the products improvement process. may be natural or manmade. we handle make safety the The objective of the CMP is to

Safety Performance

Mumbai Refinery Visakh Refinery Marketing Locations Employee Category Employee Contractor Employee Contractor Employee Contractor No. of Fatalities Nil Nil Nil Nil Nil 2 Lost Time Injury Frequency Per Nil Nil Nil 0.0749 0.0545 0.1524 Million Hours Worked Total No. of Recordable Injury 0.3322 0.2556 0.7547 0.1497 0.0545 0.1524 Incident Rate Per Million Hours Worked

Notes: The above injuries/fatalities are under male category. Assumption is taken to calculate total man-hours worked for Marketing SBU by considering 8 hours a day for 301 days. The absenteeism rate for MR, VR and Marketing is 0.0073, 0.0025 and 0.0049, respectively. It is calculated by dividing absent man-days due to loss of pay by total hours worked. The occupation disease rate is reported as nil. The Lost Time Injury rate includes fatalities and lost workday cases. Total no. of recordable injury incident rate includes fatalities, lost workday cases, restricted workday cases and medical treatment cases.

Sustainability Report 2018-19 99 Our People, Our Strength

Conducted Suraksha Parishad Inspected project sites HSE Highlights covering safety, sustainability and at VRMP and MREP. Mumbai Refinery achieved environment topics for 111 officers. the highest ever 24.59 Million Compiled analysis of past incidents man-hours of safe operation Organised Process Safety for awareness of employees. vis-a-vis the previous best of 12.57 Management (PSM) training to Published technical bulletins, Million man-hours, and completed process and operations officers newsletters and safety cards to 10.92 Million safe man-hours at at both refineries, covering all create awareness and promote the Mumbai Refinery Expansion 20 elements of process safety sustainable development Project (MREP). for 51 officers. concepts among stakeholders. Visakh Refinery crossed 10 Million Organised live fire training to 47 Conducted Life Cycle Assessment safe man-hours at the Visakh officers at Institute of Petroleum for ENKLO series product. Refinery Modernisation Project Safety, Health and Environment (VRMP). Our various functions Management (IPSHEM) to Participated in Climate Change coordinated for numerous HSE build confidence to handle Risks and Preparedness for activities during the year. fire incidents. Oil and Gas sector in India. Corporate HSE Conducted emergency Received Greenco certification HP-SOW (Safety on Wheels) management inspection for five marketing locations. covering 1,192 tank truck crew at POL Locations. Developed Green Belt in 28 acres which featured technical, (within premises). behavioural aspects and road safety interventions to reduce road accidents.

Live fire training

100 Hindustan Petroleum Corporation Limited Conducted workshops on safe HSE – Marketing LPG SBU driving and fuel conservation Developed e-inspection tool for Installed biometric access control with Petroleum Conservation and online submission of electrical system with flap barrier and Research Association (PCRA). safety audit report and completed palm vein reader authentication audit for 23 locations. technique at 40 LPG locations Organised first-of-its-kind with central monitoring server. five-day mega training Conducted mega road safety programme for 137 TT crews training to POL tank truck crew, Installed flameproof CCTV on behavioural, technical and covering 2,910 crew. system in LPG filling shed motivational transformation at of 35 LPG plants with online Conducted 51 surveillance safety Mangalore LPG import facility. monitoring from Zone/HQO. audits at marketing locations. OD&E SBU Conducted two training Carried out surveillance safety Achieved improvement in all India programmes for 30 safety audits of 112 retail outlets, covering cumulative HSE Index to 97% as officers and plant managers at 22 retail Regional Offices. against historical of 95.3%. NITIE, Mumbai on risk assessment Conducted inspections at and emergency preparedness. Achieved highest ever compliance private LPG bottlers. of 820 OISD observations with Organised a two-day training North zone, recording nil pending programme for 35 safety officers points during the year. and zonal HSE managers on OISD. Recorded nil road accidents in 48 OD&E locations.

Sustainability Report 2018-19 101 Our People, Our Strength

wise from identifying key positions trainings for security guards of Others at LPG plants, understanding the Operations, Distribution and Pipelines SBU imparted more different level of competencies, Engineering (OD&E) locations. than 6,500 man-days of trainings developing technical to employees and contract staff. Ekagra and behavioural competency To ensure security and safety of Retail SBU conducted electrical framework for safety, ascertaining cross-country pipelines, Pipeline safety audits at 3,960 outlets the safety quotient of locations, SBU with the HR team designed across the country to ensure high conducting Technical Competency an intervention christened as ‘ ’… standard of safety. Test (TCT)/Behavioral Event एका with the tag line ‘ ’ that aims Interviews (BEI), and designing and सुराा के पथ पर LPG and OD&E SBUs imparted to develop our pipeline ecosystem. rolling out of focused interventions live fire training to 1,475 officers, The intervention comprises to enhance the safety quotient contract workmen and security uniformity and standardisation of all LPG workmen. Over the staff during the year. of processes, new tools to ease last few years, we have seen an work, rewards and recognitions, upward trend in the overall safety Safety Trainings performance monitoring and We engage our employees in safety quotient and BEI score. capability building of contract management processes and impart Surakshit workmen and security personnel. training on health, safety, security, Our existing security workmen The first alignment workshop for emergency preparedness and crisis are primarily ex-service workmen. ROU officers was organised in two management regularly. To enhance their technical and batches in July 2018, followed by behavioural competencies annual security agency meet in Project Shapath required for security of industrial September 2018. More than 1,500 It is a collaborative initiative of LPG establishments, we launched a pilot security personnel were impacted SBU and the HR team to assess training in 2018 and implemented through the programme. safety quotient of all non-executive at Kandla Terminal, Mundra workmen across LPG plants. Terminal, Vadodara IRD and Hazira This project was developed phase IRD. We also organised Surakshit Security of Assets The continuity of our operations depends on the health, safety and security of our assets. Best-in-class technology, trainings on maintenance of equipment and reliability improvement measures enable us to address our objectives of providing a safe and secure work environment.

We make every effort to timely maintenance on a regular Our M&I teams inspect attain incident-free operations basis. They also recognise potential throughout the year. Asset integrity, risks, prepare mitigation plans and our facilities to ensure safety and security are looked after assess the need for investments timely maintenance on by our Maintenance and Inspection aimed to improve asset integrity (M&I) departments. Our M&I teams and achieve safe, incident-free and a regular basis. inspect our facilities to ensure efficient operations.

102 Hindustan Petroleum Corporation Limited Promoting Health We conduct structured programmes to promote the health and wellbeing of our human resource, leading to higher productivity and efficiency.

We have a comprehensive Services of designated physicians carried out for contract workmen health insurance policy for our are provided at major marketing and truck crew to ensure their employees and their dependents. locations, while we have tie-ups wellbeing. In these check-ups, the We also facilitated a health with local hospitals at smaller workmen were made aware of their insurance policy for dependents locations to ensure accessibility current health status and advised of employees not covered in the to health services. In 2018-19, we suitable measures to maintain corporate health insurance policy. organised several health education good health. We also undertook Our wellness portal comprises programmes, awareness sessions various drives and celebrated latest health-related articles, news and diagnostic camps for our important days such as ‘World and other information on topics of employees, their families and Anti-tobacco Day’ at our locations. health and wellbeing. other stakeholders. For preventive health management, We organised health camps for our workforce undergoes contract workmen at working periodic medical examination. locations. Medical check-ups were

Sustainability Report 2018-19 103 QC Lab at Mumbai Refinery

Product Stewardship

Research & Development (R&D) 107 Quality Assurance 109 Customer Centricity 111

Helping Create a Sustainable World We believe that environmental responsibility encompasses the complete product lifecycle. To be a true environmental steward, we seek to understand and effectively manage Health, Safety and Environmental (HSE) risks across the value chain to reduce adverse impact while enhancing business excellence and customer satisfaction.

We engage in sustainable adequate information for safe use related to unfair trade practices growth by enhancing our of our products, to ensure safety or irresponsible advertising as per products according to customer of our customers. We circulate applicable regulatory codes in the demands and expectations. booklets and guidelines, including reporting year. However, there It is this synergetic association Material Safety Data were six pending cases related that promotes innovation and Sheets (MSDS), containing to alleged anti-competitive advancement, be it incorporating product safety information, behaviour, as on March 31, 2019. intelligent systems or investing in product-handling procedures We do not market any product potential technologies. and risks. Our operations that is banned or disputed. involving manufacturing, storing All lubricant packages/labels must Safety is of paramount importance and marketing of products are comply with the Legal Metrology to us throughout the lifecycle assessed by qualified auditors at (Package Commodities) Rules, of our products. Our facilities, regular intervals. 2011. As per the rules, lube package including our customer-facing labels should contain declaration locations, are committed to safe We follow national and of Quantity, MRP, Manufacturing operations. We have adequate international laws to display Date, Manufacturer Name and safety management systems relevant information on our product Address, Customer Contact Details and protocols to anticipate and labels, as applicable. Our products and Generic Name of product, mitigate potential safety risks. are in line with BIS specifications, among others. We have not Our workforce is provided rigorous internationally accepted standards recognised any non-compliance safety training and suitable safety and customer-specific standards. pertaining to applicable legal protection equipment. We convey There was no non-compliance requirements of product labelling regulatory codes.

Safety is of paramount importance to us throughout the lifecycle of our products. Our facilities, including our customer-facing locations, are committed to safe operations.

106 Hindustan Petroleum Corporation Limited Research & Development (R&D) Our R&D team designs and tests new or improved technology or products. The R&D team consistently develops innovative products and adds value to our existing offerings by remodelling processes and improving quality, thereby providing a competitive advantage to the business.

The Hindustan Petroleum Green Cracking (SHC) technology and During 2018-19, HPGRDC filed 11 Research & Development Centre plans are underway for setting up patents taking the total number of (HPGRDC) was established at demonstration units for the same. filed patents to 89, as of March 31, Bengaluru to provide advanced It also improved and upgraded 2019. A total of 12 patents were technological assistance to our some of the existing technologies granted to HPGRDC during the Marketing SBUs and Refineries. such as H2 PSA technology, year taking the total number It aims to develop pioneering and HP-DUCER, HP CORRMIT and of patents granted to 16, as of path-breaking technologies and SprayMax FCC Feed Nozzle. March 31, 2019. Out of the 12 establish itself as a knowledge patents granted during the year, Some of the products developed hub. The research centre is six were international patents. and launched during the year include equipped with state-of-the-art HP-NEUTMAX, HPTHERMPRO In line with our T20 strategy, we are infrastructure, comprising and HP-BIOREMEDIA. Two of our determined to develop efficient energy-efficient green buildings products – HP-FurnOKare and products. To meet our stakeholder located in a sprawling campus. HP-BioActiva – were also expectations, we aim to develop In 2018-19, the HPGRDC developed commercialised. responsible products such as many technologies such as cleaner fuels and lubricants. HP2FCC technology, crude to Biofuels is one such product in petrochemicals technology, which we invested `1.5 Crore. HP-ASAP and Slurry Hydro

HP Green R&D Centre

Sustainability Report 2018-19 107 Product Stewardship

Refinery and established enhanced plant performance Our Green R&D Centre Highlights in terms of product H2 purity and recovery. HP2FCC Technology Performance of [HP]2 catalysts is superior in terms HPDUCER of propylene yield and RON gain. Plans are underway A chemical developed to reduce pressure drop in to set up a HP2FCC commercial scale unit BDEP in fixed bed reactor. Visakh Refinery. HP-CORRMIT Crude to Petrochemicals HPCL’s State-Of-The-Art A corrosion inhibitor developed indigenously showing Path-Breaking Technology better performance in MHMBL LPG pipe line. Direct conversion of crude to petrochemicals, SprayMax FCC Feed Nozzle yielding higher petrochemicals feedstock than that of An improved FCC feed nozzle designed and fabricated conventional refinery configuration. for Visakh Refinery FCC-II. HP Neutmax A novel neutralising amine with 23% lower dosage than that of benchmark formulation, meeting all other parameters. Expenditure Incurred on Research & Development HP Thermopro (` in Crore) A chemical formulation to reduce the fouling in heat exchangers in crude side and short resid side. 253.85 HP-FurnOKare 232.78 An in-house developed on-line furnace cleaning chemical which is able to achieve targeted performance in terms of arch temp reduction for all furnaces. HP-DAK Developed a process called HP-DAK (Dearomatised kerosene) to produce specialty solvents which can be used in paints and coatings, drilling fluids and metal working fluids. HP-ENOCT Developed a catalyst and process called HP-ENOCT 2018-19 2017-18 (Enhanced Octane) to produce high octane blending component in the gasoline pool. H2 PSA Technology Replaced existing adsorbents with in-house adsorbent system for CCR PSA unit and DHT PSA unit at Visakh

108 Hindustan Petroleum Corporation Limited Quality Assurance We deliver happiness by offering our customers quality products and services to meet their needs. Our adherence to Quality Assurance (QA), a part of quality management system, helps us to gain confidence from the management and the customers, regulators, third parties and government agencies.

According to the directive of HP QC Vision the Ministry of Petroleum and Natural Gas (MoP&NG), we have a dedicated QA cell with zonal officers HP QC builds customer loyalty by ensuring best quality whose roles are independent of products and services for enhanced profitability refining and marketing functions. The QA cell carries out surprise inspections covering retail outlets, HP QC consistently exceeds customers’ expectations kerosene (PDS) distributorships, LPG distributorships, depots/ terminals and LPG bottle plants as per the revised Marketing HP QC imbibes a culture of quality assurance by every Discipline Guidelines (MDG) and employee adopting best practices HQO directives. In 2018-19, the QA cell carried out inspections at 3,094 retail outlets, HP QC is committed to transparent and ethical practices 67 Kerosene (PDS) distributorships, 529 LPG distributorships and 30 LPG bottling plants. Our robust HP QC partners with stakeholders for continuous improvement QA systems enables us to set high customer service benchmarks for supply locations and channel partners, and helps us provide high quality products to our customers.

In 2018-19, the QA cell carried out inspections at

3,094 67 529 30 Retail outlets Kerosene (PDS) LPG LPG distributorships distributorships bottling plants

Sustainability Report 2018-19 109 Product Stewardship

Launch of Certified Reference Material

Quality Control Mumbai and Visakhapatnam Launch of Indigenously Our Marketing QC department refineries are equipped with Developed Certified assures quality of our products advanced technologies and skilled Reference Material of various business units such technicians and accredited by the Indigenously developed Certified as Operation, Distribution and National Accreditation Board for Reference Material (CRM) Engineering, Retail, Direct Sales, Calibration and Testing Laboratories plays a vital role in the quality Lubes, Aviation and Pipelines. (NABL), an autonomous body assurance plan of laboratories. under the aegis of the Department It is a mandate to use CRMs, as per In line with the Industry Quality of Science and Technology, various national and international Control Manual (IQCM), the Government of India. Our major specifications, to calibrate test guideline for the oil industry to QC laboratories have also been equipment used for certification gauge product quality at various accredited by NABL. Our various of products. We took an initiative stages, we examine our product labs are approved by the Directorate to accredit our Visakhapatnam quality at every stage of handling, General of Civil Aviation (DGCA) marketing laboratory to develop i.e., receipt, storage and dispatch at and the Directorate General of CRMs. Certified reference material terminals, depots and outlets. Aeronautical Quality Assurance project of Quality Control Our QC serves the needs of the (DGAQA). These agencies also department (Marketing) won the customers through its vast network conduct internal and external prestigious National Quality Award, of laboratories situated across India. audits to adjudge the performance popularly known as Quality Council These laboratories are designed as of the quality checks. We also of India - D L Shah Quality Awards stated by the requirement of the Oil implemented ISO 17025 Quality in the Platinum category. Industry Safety Directorate (OISD). Management System to gauge the Our world-class laboratories at accuracy of our quality assessments.

110 Hindustan Petroleum Corporation Limited Customer Centricity

Customer centricity is an attempt to do business that delivers happiness to customers by creating a positive experience at the point of sale and after the sale. Our business strategy revolves around customer centricity, which relies on our ability to deliver quality products as per customer requirements. This also enables the Company to gain a competitive edge.

We engage with our customers We automated 6,844 retail outlets to the markets at the bottom of both directly and indirectly in 2018-19, our highest ever, taking the pyramid, played a key role in through various channels of the count to 14,744. In this fiscal, adding more than one crore new communications and interactions we also commissioned a mobile customers, taking the number of to understand their expectations fuel dispenser, ‘HP Fuel Connect’, PMUY beneficiaries enrolled with and perceived shortfalls in delivery, for the first time. us to 1.97 Crore as on March 2019. which we resolve through timely We also conducted 27,000 Pradhan During 2018-19, we reached interventions. Mantri LPG Panchayats and more than eight crore customers addressed 34 Lakh users across To expand our network, we through our strong LPG distributor the country on safe and sustainable commissioned 478 new retail network of 5,866 under HP Gas. use of LPG. We also conducted outlets, taking the total count to The Pradhan Mantri Ujjwala ~60,000 safety clinics to educate 15,440 pan India. We also increased Yojana (PMUY), which aimed to 29+ Lakh customers about the volumes in our existing network. provide user-friendly clean fuel safe handling of LPG.

Pradhan Mantri LPG Panchayat

Sustainability Report 2018-19 111 Product Stewardship

This is integrated to the VTS Customer Safety Highlights of Customer application for providing Customer safety is one of the top Experience Enhancement real-time visibility of deliveries priorities in our business execution. Initiatives in 2018-19 to the customers in retail. Going Digital We ensure customer safety We leveraged digital technologies Introduced voice-based by meeting the highest safety across all spheres of our business questions with AI and natural standards in our systems, processes operations. During the year, a large language processing along with and products. We have a dedicated number of new initiatives were text chatbot in the Sales Sahayak. Health, Safety & Environment taken up towards new application (HSE) department and Implemented Gram Swaraj development, enhancements of management system to enhance Abhiyan (GSA) and GSA II. application functionalities and governance and compliance and Provided an application to augmentation of IT infrastructure. ensure compatibility with our MoP&NG for optimal allocation We implemented these initiatives safety standards and protocols. of villages to nearest OMC across the Company to enhance During 2018-19, there was no distributor to maximise efficiency. the efficiency of our operations. incident involving health and safety Developed the Sarvekshan impacts of products resulting from Various digital initiatives mobile application to collect KYC non-compliance of regulations and were also implemented to data and upload documents of voluntary codes. improve customer experience distributor personnel. A delivery and relationship: boy application, our first in-house Implemented ePMUY offline application for LPG to do and ePMUY II in timelines surveys in remote villages for Customer safety is one incorporating validations as per GSA 2, was extended for pre of the top priorities the requirement. e-KYC for LPG connections with the option to capture Aadhaar, in our business Implemented Ujjwala Diwas Bank Passbook and photo Application – a digital initiative execution. We ensure identity. It also includes features to capture PMUY customer such as delivery confirmation customer safety by contact, safety clinic and and instant cylinder booking. Panchayat for LPG SBU. meeting the highest Used online GST e-Way bill Implemented HP GAS customers’ safety standards API, as an industry first, to feedback application, a complete generate e-Way Bill online at the in our systems, system-driven collection of voice time of document generation of LPG customers integrating processes and products. (invoice, TOA, AMTA and IBM FEB-Streebo, CDCMS and non-stock transfer). HP AnyTime application. Implemented HPBuddy, an application for retail dealers and LPG distributors to ensure visibility of their indents, deliveries, payments and track status of indents and deliveries.

112 Hindustan Petroleum Corporation Limited attractive reward points. This card LPG Loyalty Programmes can be used to purchase fuel We actively pursue initiatives to LPG SBU developed HP GAS and lubricants at participating improve customer service and domestic customer feedback HPCL petrol pumps across the promote customer loyalty. application which can be used by country and offers a host of customers to provide feedback Highlights of Customer Loyalty unparalleled benefits. on receipt of their refill delivery. Initiatives in 2018-19 Another attractive reward scheme Customers receive SMS with HP Re-Fuel Program is the Payback card programme, a a link to provide feedback in HPCL HP Refuel is a powerful multi-coalition loyalty programme. the application post-delivery. loyalty and payment program We offer co-branded credit cards Customers are welcome to provide that provides complete fuel with ICICI Bank and Amex and suggestions as well. management solution to a co-branded debit card with A survey was conducted on industry vehicle and kitchen (HP Gas). ICICI Bank. We also launched basis with pan India coverage This innovative prepaid payment the revamped Star Retailer through external third party for mechanism adds value to the Loyalty Scheme ‘Pragati’ through PMUY (sample size: 54,553) and individuals and businesses by mobile application for retailers non-PMUY (sample size: 1,05,724) giving them greater control of fuel and mechanics. consumers to provide inputs consumption and operating costs. Customer Feedback and feedback for an effective DriveTrack Plus Our sustained growth lies in strategy by understanding the Loyalty Card Program our endeavour to improve our ground realities and perceptions products according to social of LPG consumers through a DriveTrack Plus is a powerful expectations and consumer structured questionnaire. prepaid fleet card that provides preferences. Our association with complete fleet management Retail customers hinges on the symbiotic solution with a combination of For the first time in industry, relationship that encourages control, convenience, security and an AI-driven machine learning innovation and improvement, from application was utilised to capture incorporating intelligent systems and analyse customer feedback to investing in future technologies. across selected outlets on a pan India basis via the ‘Talk to Us’ initiative. The customer feedback was collected through emails, IVR, QR and SMS. A total of 71,966 responses were collected at 400 retail outlets during the pilot campaign.

Sustainability Report 2018-19 113 Fuelling scientific temper through Project Agastya

Creating Shared Value

CSR Approach 117 Focus Areas 118 CSR Footprint 119

Building a Self- sustaining Society As a responsible corporate citizen, we recognise, understand, appreciate and strive to meet the needs and concerns of a wide array of stakeholders. Our Corporate Social Responsibility (CSR) values, policies and practices are aligned to our overarching objective of ‘Creating Shared Value’. We thus reach out to our stakeholders – involved in our value chain directly or indirectly – by adopting a holistic approach, which entails working towards the socioeconomic development of the local communities and the society. Our CSR approach is guided by our corporate Vision and Mission and helps us transform the lives of people and deliver happiness to the last mile.

We believe in playing the role of a with the local community members catalyst in transformation through to incorporate stakeholder our CSR endeavours. We believe engagement practices. Through our that business growth and societal shared value approach, we have development are interdependent; developed strong relationships thus, we always seek opportunities with them, enabling us to make a to fulfil our commitment of mark in various geographies. ‘Delivering Happiness’ by making Over the years, we have undertaken a positive impact on the lives of various activities under the CSR people through proactive and umbrella. Various initiatives of participatory engagement. the Government of India such We initiated several programmes as the Swachh Bharat Abhiyan, for empowerment and Digital India and Skill India, among socioeconomic welfare of host others have been carried out in communities largely where we areas we operate. operate. We engage in dialogue

116 Hindustan Petroleum Corporation Limited CSR Approach To create social capital, we strive to maximise the impact of our CSR initiatives by integrating and internalising them into the core of our business operations. Intervention models that have the potential to provide sustained, long-term impact not only for the beneficiaries but also for the social factors that lie at the root of the problems are given utmost support and encouragement.

We focus on creating measurable CSR Policy CSR Management societal value by identifying and HPCL believes in the creation of We have a Board-level addressing societal needs and shared value and interdependency sub-committee, on CSR and challenges intersecting with our of business and stakeholders. Sustainability Development business. Our CSR activities aim (CSR&SD) consisting of Our CSR Policy defines the scope, to identify gaps in the existing Whole-time Directors and and guidelines for identification, system of delivery and address Independent Directors which implementation and monitoring of them meaningfully to create a oversees and executes the CSR projects and initiatives to bring long-term, sustainable impact, CSR plans, provides inputs to uniformity in various operations rather than parallel systems. strengthen the strategy, ensures and functionalities of its activities. effective needs assessment and We promote programmes and The policy aims to address the reviews progress. activities, in collaboration with developmental challenges faced the local communities and by the communities. CSR projects are identified in administration, which create consultation with community and its a progressive, nurturing and CSR Objectives needs, developmental challenges conducive environment for HPCL will focus its CSR activities faced and opportunities available holistic social development of the on local communities around for impactful interventions. less privileged. which it has its operations like Post implementation, project Refineries, Terminals, Depots, LPG progress is monitored at regular We interact with local communities Plants, Pipelines, Aviation Stations, intervals to ensure that the set through various channels to Lube Blending Plants, Project objectives and goals are met. understand their needs and locations and other offices, etc. concerns, identify the most HPCL is committed to allocate at effective way to address them, and least 60% of the CSR budget for and carry out impact assessment these local communities. of our initiatives. We partner with government agencies, CBOs, HPCL will implement CSR activities local panchayats and district to empower weaker, less privileged administration for effectiveand marginalised sections of the implementation. The active society to create social capital. participation of the community plays an important role in the formulation and implementation of various CSR projects.

Sustainability Report 2018-19 117 Creating Shared Value Focus Areas Our CSR focus areas are inspired by and aligned with international developmental goals and national policies and legislations on Child Rights, Child Development and Education, National Health Policy and National Health Missions, Healthcare in India – Vision 2020, National Skill Development Mission and policies on community and rural development.

t & en Chi nm ldc ro nity ar vi u e n m nt E m me o op C el ev D E d

s u t r c

a o

p i

Our CSR n focus areas

D e e v S r e k a l il c o l h p lt m a e e nt H

118 Hindustan Petroleum Corporation Limited CSR Footprint We embarked on various developmental initiatives in 2018-19 to reach out to the less privileged in the society. Propelled by passion and efforts of our employees, the Company was able to touch the lives of people through innovative, value-driven and well-designed CSR projects.

More than 450 projects and activities under various CSR focus areas were undertaken during the year to create shared value, in collaboration with the local administration and the community. These activities included provision of basic amenities such as health and education infrastructure in remote rural areas, and scholarships to meritorious students from SC, ST, OBC and PWD segments. We focused on supporting developmental initiatives in aspirational districts, as identified by NITI Aayog, by committing more than 40 projects in select geographies These focused efforts towards social development through the creation of community infrastructure and social interventions led to the socioeconomic welfare of beneficiary communities and the society.

Childcare and Education

Childcare and education is one of the core areas of our CSR programme, as we believe it is key to transforming the lives of our future generations and contributing to nation-building. We plan to improve the quality of education by imparting training, skill development, technical know-how and by providing healthy meals to school students. We also promote projects that focus on woman empowerment and education of differently-abled individuals. Our education-focused projects include Nanhi Kali, Unnati, Akshayapatra and Agastya.

Project ADAPT Project Akshayapatra the overall improvement in Disability is one of the least Hunger and malnutrition are student performance. As part of understood and accepted considered one of the major this project, we have provided conditions in the society. causes affecting the health and nutritious mid-day meals to 15,000 Thus, ensuring equal opportunities education of school children students in government schools. and dignity to Persons with in our country. This has led to Disability (PWD) requires introduction of Mid-Day Meal Project Nanhi Kali significant efforts, awareness and Programmes. In line with this, we Promoting education of girl mobilisation, beyond addressing launched Akshayapatra, which child and developing gender their medical needs. is a programme to alleviate sensitive communities are some classroom hunger, increase school of the biggest challenges to the Our Project ADAPT aims to enrolments and attendance, society. Project Nanhi Kali aims create a model of inclusivity and address malnutrition, and to address this important issue equal opportunity by offering improve socialisation among by providing academic, social special education and state-of- different communities. and material support to first the art therapies along with skill generation girl child learners from training opportunities to Children Akshayapatra impacts the lives educationally and economically with Special Needs (CwSN) in an of school children by providing less developed communities. enabling environment to bring hygienic and nutritious meals them into the mainstream. through specialised agencies. Through this planned intervention, we have been able to reduce the In 2018-19, we supported the The intervention through this dropout rate of girls, prevent child holistic development of 300 special programme resulted in enhanced marriages and promote higher children by providing education, enrolments and a reduction education. Under Project Nanhi therapies and vocational training. in dropout rates at schools. Kali, we have supported quality It also helped deliver quality education for 13,000 girls. education and contributed to

Sustainability Report 2018-19 119 Creating Shared Value

‘Train the Trainer’ model wherein Project Agastya the school teachers are also We have undertaken Project trained to ensure sustainability of Agastya to ignite and inculcate the project. We have also installed `6.21 Crore the scientific spirit in young minds. well-equipped computer labs at HP Scholarships Under this project, we provide these schools to ensure continuous hands-on, practical science distributed practice for the students. education to the new generation of learners from less-privileged Project Unnati widened the communities. In 2018-19, we horizon of education and improved provided practical science future employability of these less knowledge exposure to 28,338 privileged children when they reach been selected through a rigorous students from 127 schools through adulthood. Under this project, we process in partnership with mobile science labs. provided free computer education the Indian Army. The initiative to 12,000 students. will enable talented yet needy Project Unnati students from J&K to fulfil their In the current information age, Project Kashmir Super 30 dreams of becoming a doctor and e-literacy and computer skills (Medical) to serve the society. have assumed an important To provide state-of-the-art role in daily transactions, on educational facilities for medical HP Scholarships personal and professional fronts. stream aspirants, we initiated To empower academic talent, Thus, enhancing these skills Project Kashmir Super 30 (Medical) scholarships worth `6.21 Crore can help create a future-ready in collaboration with the Indian were distributed to over 11,000 workforce who is capable of Army. This is a full-time residential meritorious students from meeting the requirements of the coaching project for NEET the socially and economically professional world. aspirants of Jammu & Kashmir. weaker communities. We have partnered with specialised As part of this project, we agencies to provide computer have provided state-of-the-art awareness and basic education to infrastructure for comfortable school students from Class VI to study and stay of the students from Class IX in semi-urban and rural Jammu & Kashmir. The facilities areas. Moving beyond classroom are housed in the Army campus teaching, we are following the at Srinagar. The students have

HP Scholarships

120 Hindustan Petroleum Corporation Limited Healthcare

Access to healthcare is a fundamental human right. However, people across India face diverse challenges to access quality and affordable healthcare. Essential healthcare infrastructure and social support services need to be enhanced for a large percentage of the population, especially for those in rural areas.

We work towards providing solutions to issues around health, hygiene and sanitation. We enhance access to quality and affordable preventive as well as curative healthcare through several programmes for the less privileged sections of the society.

Project Dhanwantari Project Dhanwantari To address critical health requirements and provide basic medical facilities to people in need in remote rural areas and urban slums, we have partnered with grass-root level NGOs to run unique Mobile Medical Units under Project Dhanwantari. Our key objective is to create awareness, and provide diagnostic and curative services to the community. We focus on providing basic medical facilities at doorsteps for common ailments by providing free medicines while making We developed and rolled out The Khushi Clinics provide necessary referrals for major a detailed Behaviour Change basic medical facilities along ailments. Under this project, we Communication (BCC) strategy the highways, besides working operate 24 mobile medical vans. across schools in four states. towards providing AIDS awareness, Member of the school management STI treatment, social marketing Project e-WASH committee of every school were of condoms and counselling to e-WASH (Water, Sanitation and trained on WASH behaviours, ensure the health and well-being of Hygiene) in Schools programme and operation and maintenance truckers. Under this project, seven began in December 2017 to create of infrastructure developed. Khushi Clinics were operated. and sustain 300 children-friendly The project touched the lives of clean government and more than 45,000 children from government-aided schools for Project Dil without Bill remote rural areas of the four Our Project Dil without Bill aims 45,000 school children across states and contributed towards to save lives by facilitating heart Gujarat, Jharkhand, Karnataka the goal of clean India. surgeries by providing financial and Uttarakhand. The project aims assistance to the economically to develop and strengthen safe less-privileged sections of the drinking water provisions, build and Project Suraksha The National AIDS Control society. In association with our rejuvenate sanitation infrastructure Organisation has identified long implementation partners, this and undertake Social Behavioural distance truckers as a high-risk project helps those who would Change Communication (SBCC) category for AIDS, and thus have otherwise been unable to interventions to inculcate this target group is one of the afford such expensive medical improved hygiene practices. most vulnerable stakeholders in procedures or would have We completed construction and our supply chain. inevitably taken on huge debts to repair works of toilets, urinals and meet the expenses. To address this issue, we handwash units in 300 schools undertook Project Suraksha. This project is designed to reach out for WASH infrastructure. We also The key objectives of this project to patients with pre-existing heart ensured the availability of safe include encouraging truckers to conditions and those diagnosed at drinking water by installing water adopt safe sexual behaviour and camps set up to address the basic purifiers as per the needs and practices, along with diagnosing needs of patients and increase pre-intervention availability of the and treating Sexually Transmitted awareness about heart diseases. same facilities in schools. Infections (STIs) at the Khushi Through this project, we supported Clinics set up at strategic locations 400 heart surgeries. on highway filling stations.

Sustainability Report 2018-19 121 Creating Shared Value

Skill Development

India has a significant youth population and the country’s future and economic development is dependent on their capability to contribute meaningfully to the nation’s growth. It is vital to train them with the relevant skills so that they are empowered to become self-sufficient and valuable members of the society.

The human capital requirements of a location vary depending on the infrastructure and industries available in those locations. Efforts are required to ensure that adequate manpower with the required skills is available at these locations to ensure sustained growth. To achieve this, we are proudly participating in the ‘Skill India’ vision through our CSR initiatives to train and empower youth across the country.

Project Swavalamban and Bhubaneshwar to promote skill of State, Skill Development and As part of the Skill India Mission, training and employability skills. Entrepreneurship during the year. Project Swavalamban provides The institute has set up the first Skill Development Institute, skill training to youth and school ever virtual reality lab in Andhra Visakhapatnam managed by dropouts from less privileged Pradesh for job roles in the pharma HPCL has been awarded a 5-Star areas in various trades such sector. The institute has provided rating for 14 job roles across six as mechanical, electrical, training to over 5,800 trainees Sector Skill Councils by National construction and geriatric in more than 30 vocational Skill Development Corporation care. It also imparts soft skills trades, including 725 prisoners (NSDC) under Ministry of Skill and other trainings required to of Rajahmundry and Visakha Development & Entrepreneurship. sustain their employment and Central Prisons, and facilitated This is the first among the six earn a livelihood. Through project employment opportunities for SDIs set up by MoP&NG to receive Swavalamban, 2,500 youth were more than 75% of the trainees. 5-star accreditation. A 5-star rating trained to increase their chances establishes SDI Visakhapatnam as of finding employment. a benchmark institute and attracts prospective employers to get Contributions to Skill quality/trained manpower, which Development Institutes (SDIs) translates into better placement To strengthen the ‘Skill India’ opportunities for SDI trainees. initiatives of the Government of 2,500 SDI, Visakhapatnam has won India, contribution was made to youth trained under ASSOCHAM Gold award for ‘Best six Skill Development Institutes Start-up’ received at the hands project Swavalamban (SDIs) at Rae Bareilly, Ahmedabad, of the Hon’ble Union Minister Visakhapatnam, Kochi, Guwahati

Promoting Sports

We promote sports and regularly We also participated in PSPB To spread awareness on breast participate in various tournaments tournaments in athletics, cancer, our women employees and organised under the aegis of badminton, basketball, bridge, their family members participated Petroleum Sports Promotion carrom, chess, cricket (men & in Pinkathons held at Chennai Board (PSPB) and All India veterans), football, golf, table and Visakhapatnam. Public Sector Sports Promotion tennis and tennis. We also support Our Mumbai Refinery organised Board (AIPSSPB). In 2018-19, young and talented sports persons, the 13th edition of Inter School we organised annual sports preferably from the economically Athletic Championship, as meet, indoor games and cricket weaker sections of the society. part of our CSR initiatives for tournaments for our employees We observed International Day students of schools situated across the country. We also of Persons with Disabilities on in Chembur; 1,700 students hosted PSPB veterans cricket December 3, 2018 to promote participated from 66 schools, tournament at Dharamshala, inclusivity and create awareness out of which 40% came from Himachal Pradesh and AIPSSPB among stakeholders on municipal schools. National-level table tennis/tournament various disabilities athletes under the age of 16 also at Chandigarh. participated in the event.

122 Hindustan Petroleum Corporation Limited Environment and Community Development

To develop a sustainable ecosystem, we conduct community development programmes, promoting awareness on environment conservation and building a responsive community.

Swachh Bharat Abhiyan HPCL ranked among best performing CPSEs (Oil & Gas) for Swachh Bharat Abhiyan is a contribution towards Swachhta Pakhwada by MoP&NG nation-wide campaign aimed to cultivate a culture of maintaining cleanliness in our surroundings and eliminating open defecation through construction of toilets. Active participation in this initiative enabled us deliver tangible benefits to the community by helping them adopt a healthier life and improve their standard of living. We surpassed the physical and financial targets towards sanitation initiatives. We constructed more than 850 toilets in schools, hospitals & communities and upgraded more than 500 school toilets. We also constructed new toilet blocks at 1,639 retail outlets, christened ‘Sugam’, having separate facilities for male, female and divyangs. To increase awareness and build a culture of cleanliness, we conducted more than 2,500 activities such as painting contests, We were associated with the Our employees at various business cycle rallies, essay competition, Swachh Iconic Places initiative locations actively participated skits through radio, virtual (Golden Temple, Amritsar). in two Swachhta Pakhwada and campaigns and Swachhta Se Swachhta Hi Seva campaigns Safalta campaigns, involving about We also undertook Open and participated in various two lakh people from various parts Defecation Free (ODF) project activities in association with the of the country. in association with the Municipal local administration, institutes, Corporation, Amritsar. community and the society.

Employee Volunteering

Inclusivity is the most of the society, capacity building purifiers at local schools; important aspect for creating and participating in health and providing scholarship to children; a sense of belongingness and environment initiatives. installing water tanks; distributing propelling developmental medicines and wheel chairs to initiatives. Our employees and Some of our community various schools and organisations. stakeholders promote inclusivity development activities include Through such participation, we by volunteering in projects supporting the flood-affected delivered happiness to those in aimed at nation-building, social areas; undertaking tree plantation need and brought about a sense empowerment, upliftment of drives; donating bus, books, of ownership and responsibility to various disadvantaged sections stationery items; visiting blind the participants. schools; distributing water

Sustainability Report 2018-19 123 Creating Shared Value

HP Sampark... Ek Prayaas

HP Sampark is an employee volunteering programme aligned to the Company’s values, vision and culture, providing employees a platform to drive our vision.

The aim is to provide our life-threatening medical conditions, Under Khushiyon Ka employees and their families with and providing support to old age opportunities to make a positive home, orphanage, shelter home for Recycle-HP Sampark difference to the less privileged girls and differently-abled children, Ke Saath, more than section of the society. to residential care for men with disabilities, spinal cord injuries and 1,000 employees Under Khushiyon Ka Recycle-HP paraplegia, as well as to day-care Sampark Ke Saath, more than volunteered by centres for children with mental 1,000 employees volunteered disorder and other disability. contributing towards by contributing towards the 3Rs–Reduce, Reuse and Recycle Some of our round-the-year the 3Rs–Reduce, Reuse collection campaign of new/used initiatives included clothes and and Recycle collection school stationery and household books distribution, support items through our partner NGO. to flood-hit areas, car rally for campaign of new/used awareness, visit to old-age homes, Under HP Sampark, a unique school stationery and and cleaning material distribution. initiative ‘Daan Utsav’ was household items. undertaken to facilitate employees to volunteer for multiple causes. Blood Donation Camps Under HP Sampark, we organised These included mid-day meal a volunteering month during programme, community-based July-August starting with blood rehabilitation programme, donation week. The blood education promotion, granting donation camp was organised wishes of children suffering from across locations, covering more than 500 people.

124 Hindustan Petroleum Corporation Limited Pradhan Mantri Ujjwala Yojana Training on safe usage of LPG (PMUY)

The objective of this Government of India initiative is to provide clean cooking fuel to poor households, especially in rural areas. Use of fossil fuels and conventional fuels such as cow dung, kerosene and biomass, has adverse effects on the health of rural women and children. Use of LPG as a cooking fuel helps in effectively addressing health hazards associated with the use of conventional sources of cooking fuels.

In 2016-17, the Government of India launched PMUY aimed to provide eight crore LPG connections by 2020. HPCL enabled clean energy access for about two crore low income households by providing new LPG connections under the scheme, which aims to safeguard the health of women and children by providing them clean cooking fuel.

HPCL enabled clean energy access for about two crore low income households by providing new LPG connections.

HP Shakti Club

HP Shakti Club is an endeavour to provide a platform to our women employees and female family members to create an active, supportive and comfortable platform to address their problems, explore social connections, foster friendships, share joyful moments and give back to the society through philanthropic and social initiatives.

Through this initiative, our women employees contributed towards festivals’ celebration, conducted workshops and health camps for support staff, facilitated deserving people from the community, and participated in social programmes such as Swachh Bharat Abhiyan, Rally for River directly and through partner NGOs. Additionally, we also undertook initiatives such as awareness sessions for less privileged kids, visit to old age homes, and supporting differently-abled kids.

Other Projects

HPCL participated in Tata Mumbai Marathon in January 2019, for the sixth year in a row. As part of the 'Champions with Disability' category, our employees paired with differently-abled children as buddies and gave a positive push to their wheelchairs. Our employees participated in different race categories, demonstrating their enthusiasm towards the event. We contributed to the Armed Forces Flag Day Fund for care, support, welfare and rehabilitation schemes for Ex-Servicemen (ESM) and their dependents. During the heavy rainfall and flooding in Kerala, Tamil Nadu and Odisha, our Regional Offices and locations rendered assistance for the flood relief activities and distribution of relief materials to the affected.

Sustainability Report 2018-19 125 Creating Shared Value

Investment in CSR Projects

Our efforts to ensure mandated expenditures on CSR reaffirm the Company’s commitment towards societal development. With effect from April 1, 2014, every company, private limited or public limited, which either has a net worth of `500 Crore or a turnover of `1,000 Crore or net profit of `5 Crore, needs to spend at least 2% of its average net profit for the preceding three financial years on CSR activities.

During 2018-19, we enriched the lives of thousands Total Expenditure on CSR Activities of less privileged people by creating social capital (` in Crore) across our CSR focus areas of childcare, education, healthcare, skill development, sports, environment 159.81 and community development with investments of 156.86 `159.81 Crore, especially in the host communities of our business. This accounts for 2.01% of our average net profit for the last three years (2014-15 to 2017-18) and 108.11 surpasses our previous years’ spend of `156.38 Crore (2017-18) and `108.11 Crore (2016-17), reflecting our sincere commitment to building stronger communities. Driven by passion and propelled by commitment, these focused, innovative, value-driven and well-designed developmental CSR projects helped to reach out and transform the lives of marginalised and less privileged sections of society. 2018-19 2017-18 2016-17

Expenditure Focus Area (` Crore) (2018-19) Childcare and Education 29.93 Healthcare 12.70 Skill Development 20.23 Sports 0.78 Environment & Community Development 96.17 (Including Pradhan Mantri Ujjwala Yojana (PMUY) and Swachh Bharat Abhiyan) Total 159.81

126 Hindustan Petroleum Corporation Limited Monitoring and Evaluation

Monitoring and evaluation play a crucial role in tracking the execution and outcomes of a project in a systematic way. Recurrent reviews and impact assessments are essential to measure the success of the projects in which investments are made. Well-timed implementation and completion of our CSR projects is vital to meet our defined objectives and for deployment of budgetary allocations, making sure that the overall defined CSR goals are met. To achieve this, there is an internal monitoring mechanism that monitors our CSR activities on a quarterly basis.

Our social impact projects are Global CSR Platinum Award by World Petrocoal Congress thoroughly assessed and monitored to gauge their impact and collect feedback. We also undertake third-party impact assessments of our major projects and identify interventions to ensure that the projects achieve sustainability As part of our internal two-tier monitoring mechanism, the CSR Committee and the CSR Council monitor our CSR activities. Reviews are undertaken by the CSR Committee, which also provides insights and gives timely feedback to the Board.

Awards safety and sustainability, to Some of the awards and accolades Mumbai-Pune-Solapur Pipeline received in various forums for our (MPSPL) under categories of Driven by passion CSR initiatives are as follows: sustainability, environment and CSR management and to Loni Ranked among the top three best and propelled by Terminal for best practices in performing CPSEs (Oil & Gas) for sustainable development by commitment, these contribution towards Swachhta Apex India Foundation. focused, innovative, Pakhwada by MoP&NG. Granted ‘FAME Award 2018’ for Received Platinum category value-driven and the best innovative CSR project award by Energy and to MPSPL by Foundation for Mass well-designed Environment Foundation Global Empowerment (FAME), India. developmental CSR CSR Award 2019. Granted ‘Bhamashah Award’ by Received ‘CSR Excellence Award’ projects helped the Government of Rajasthan to by Apex India Foundation. to reach out and Jodhpur Retail & LPG regional Received ‘Swachh Bharat office for CSR activities for the transform the lives Award’ in ‘Sanitation – second consecutive year. Infrastructure Building’. of the marginalised Received the highest recognition and less privileged Received ‘Global CSR by The Economic Times in the Platinum Award’ by World CSR domain, ‘The ET 2-GOOD sections of society. Petrocoal Congress. 4-GOOD’ rating. Granted ‘Apex India Excellence Emerged as finalists at S&P Award’ to MDPL under categories Platts Global Energy Awards. of occupational health &

Sustainability Report 2018-19 127 SDGs and Our Business Practices

Goal No Sustainable Development Goal Page no. End poverty in all its forms everywhere 52-55, 116-126

End hunger, achieve food security and improved nutrition and promote sustainable 119-120 agriculture

Ensure healthy lives and promote well-being for all at all ages 94-95, 103, 119-121, 123

Ensure inclusive and equitable quality education and promote life-long learning 87-92, 119-120, opportunities for all 122

Achieve gender equality and empower all women and girls 86-92, 96, 119-120

Ensure availability and sustainable management of water and sanitation for all 74-75, 123

Ensure access to affordable, reliable, sustainable and modern energy for all 73, 66-69, 111-113, 125

Promote sustained, inclusive and sustainable economic growth, full and productive 52-55, 86-92, employment and decent work for all 96

Build resilient infrastructure, promote inclusive and sustainable industrialisation and 14-21,55, 74-75, foster innovation 107-108

128 Hindustan Petroleum Corporation Limited Goal No Sustainable Development Goal Page no. Reduce inequality within and among countries 116-126

Make cities and human settlements inclusive, safe, resilient and sustainable 74-79, 116-126

Ensure sustainable consumption and production patterns 62-79, 107-108

Take urgent action to combat climate change and its impacts 62-79, 107-108, 123

Conserve and sustainably use the oceans, seas and marine resources for sustainable 74-75 development

Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably 72, 78-79 manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss

Promote peaceful and inclusive societies for sustainable development, provide 23-30, 96-97 access to justice for all and build effective, accountable and inclusive institutions at all levels

Strengthen the means of implementation and revitalise the global partnership for 32, 72, 116-126 sustainable development

Sustainability Report 2018-19 129 NDCs and Our Business Practices

NDC Nationally Determined Contribution Page No. No 1 Sustainable Way of Living 38-40, 62, 123 2 Climate Friendly and Cleaner Path to Economic Development 62, 107-108 3 Reducing Emissions Intensity of GDP by 33-35% 62, 66-73 4 40% cumulative electric power installed capacity from non-fossil fuel based energy resources by 73 2030 5 Creation of Additional Carbon Sink of 2.5-3 BTCO2e 72 6 Better Adaptation to Climate Change 62-79, 116-118 8 Building Capacities for diffusing cutting-edge climate technology 70-73, 107-108

UNGC Principles Connect

UNGC Category Description Reference Page No. Principle 1 Human Businesses should support and respect the Upholding Human Rights 96-97 Rights protection of internationally proclaimed human rights 2 Human Businesses should make sure that they are not Upholding Human Rights 96-97 Rights complicit in human rights abuses 3 Labour Businesses should uphold the freedom of Upholding Human Rights 96-97 association and the effective recognition of the right to collective bargaining 4 Labour Businesses should uphold the elimination of all Upholding Human Rights 96-97 forms of forced and compulsory labour 5 Labour Businesses should uphold the effective abolition of Upholding Human Rights 96-97 child labour 6 Labour Businesses should uphold the elimination of Nurturing Talent, Upholding 86, 96-97 discrimination in respect of employment and Human Rights occupation 7 Environment Businesses should support a precautionary Risk Management, 27, 38-40, approach to environmental challenges Sustainability Ethos, 62-63 Preparing for a Greener Tomorrow

8 Environment Businesses should undertake initiatives to promote Sustainability Ethos, 38-40, 62-63 greater environmental responsibility Preparing for a Greener Tomorrow 9 Environment Businesses should encourage the development and Preparing for a Greener 62-63, 106- diffusion of environmentally friendly technologies Tomorrow, Product 108 Stewardship 10 Anti - Businesses should work against corruption in all its Corporate Governance, 23-30 Corruption forms, including extortion and bribery Internal Systems and Controls

130 Hindustan Petroleum Corporation Limited NDCs and Our Business Independent Assurance Practices Statement

Introduction and objectives of work BUREAU VERITAS has been engaged by Hindustan Petroleum Corporation Ltd. (HPCL) to conduct an independent assurance of its Sustainability Report for the year 2018-19. This Assurance Statement applies to the related information included within the scope of work described below.

This information and its presentation in the Sustainability Report 2018-19 are the sole responsibility of the management of HPCL. Bureau Veritas was not involved in the drafting of the Report. Our sole responsibility was to provide independent assurance on its content.

Scope of work The assurance process was conducted in line with the requirements of the Assurance Standard AA1000AS 2008 (with 2018 addendum) Type 2 assurance. The scope of work included:

Data and information included in Sustainability Report 2018-19 for the reporting period 1st April 2018 to 31st March 2019; Appropriateness and robustness of underlying reporting systems and processes, used to collect, analyse and review the information reported; Evaluation of the Report against the main principles of the AA1000 Assurance Standard (2008)1 Inclusivity Materiality Responsiveness Impact

Evaluation of the Report against the principles of Accuracy, Accessibility, Balance, Clarity, Comparability, Reliability, Timeliness and Stakeholder Inclusiveness, as defined in the GRI Sustainability Reporting Standards2 “In accordance-Comprehensive”; The level of assurance has been applied as “Moderate” for all sections of the report.

Methodology As part of its independent assurance, Bureau Veritas undertook the following activities:

1. Visited selected locations of HPCL and interviewed relevant management personnel of HPCL. Corporate HSE Dept., Mumbai Lubes Blending Plant, Silvassa Retail Outlet, Bandra Kurla Complex, Mumbai Pipelines, VVSPL- Ghatkeswar, Hyderabad Mumbai Refinery OD & E, Lucknow IRD LPG Plant, Panagarh Kolkata Aviation Service Facility, Goa

1 Published by Accountability: The Institute of Social and Ethical Accountability http://www. accountability.org.uk (AA 1000 AS 2008 is the latest version of the assurance standard with 2018 addendum) 2 GRI Standards are published by the Global Reporting Initiative, P.O. Box 10039, 1001 EA, Amsterdam, The Netherlands and can be downloaded from the GRI web site www.globalreporting.org

Sustainability Report 2018-19 131 Independent Assurance Statement

We interviewed Plant Operations & Maintenance, Health, Safety & Environment managers and also the Sustainability team of HPCL:

2. HPCL had submitted performance data on reported disclosures of GRI standard topics. The data management at the above locations visited was assessed by Bureau Veritas.

3. The data management systems and procedures were assessed on a sampling basis. Data on various GRI standard disclosures was verified.

4. Bureau Veritas reviewed stakeholder engagement activities that had been undertaken by HPCL as a part of its stakeholder engagement process. Various records of the stakeholder engagement activities were reviewed to confirm how topics material to HPCL’s stakeholders had been determined had been determined.

Our work was conducted against Bureau Veritas’ standard procedures and guidelines for external Assurance of Sustainability Reports, based on current best practice in independent assurance.

The work was planned and carried out to provide a “Moderate” level of assurance and we believe it provides an appropriate basis for our conclusions.

Our findings On the basis of our methodology and the activities described above, it is our opinion that:

Nothing has come to our attention to indicate that the reviewed statements within the scope of our verification are inaccurate and the information included therein is not fairly stated;

It is our opinion that HPCL has established appropriate systems for the collection, aggregation and analysis of quantitative data such as Environmental, Health & Safety, Human Resource, Labour as well as Product and Investor related data.

Alignment with the principles of AA1000AS (2008) Inclusivity HPCL has processes in place for engaging with a range of key stakeholders including socially responsible investors, Government officials, local community representatives and has undertaken stakeholder engagement activities that have served as inputs for its Sustainability report 2018-19, covering a range of topics such as Customer satisfaction, Employee welfare, Supply Chain, Community Welfare and Environment.

Materiality The Report addresses the range of environmental, social and economic issues of concern that HPCL and its stakeholders have identified as being of highest material importance. The identification of material issues has considered both internal assessments of risks and opportunities to the business, as well as stakeholders’ views and concerns. The material issues were identified by a process of stakeholder engagement and interaction and the entire process was conducted through a survey in which the stakeholders were requested to provide their feedback relating to various issues.

Responsiveness HPCL is responding to those issues it has identified as material and demonstrates this in its policies, objectives, indicators and performance targets. The reported information can be used by the organisation and its stakeholders as a reasonable basis for their opinions and decision-making. The company has taken various initiatives towards delivering environmentally friendly services along with occupational health and safety, appropriate measures for emergency handling, control and risk management in its operations.

Impact There is no finding from our assessment that HPCL had not monitored, measured or has not been accountable for its actions related to its material topics and their effect on the broader ecosystem

Evaluation against Global Reporting Initiative (GRI) Sustainability Reporting Standards Bureau Veritas undertook an evaluation of HPCL Sustainability Report 2018-19 against the GRI Sustainability Reporting Standards 2016. This included cross checking the GRI index table against all the reference documents to provide an opinion on the self-declared GRI reporting option.

132 Hindustan Petroleum Corporation Limited Based on our work, it is our opinion that the Sustainability Report 2018-19 has been prepared in accordance with the GRI Standards including appropriate consideration of the Reporting Principles and necessary indicators to meet the requirements of GRI Reporting Option “In accordance- Comprehensive”.

Limitations and Exclusions Excluded from the scope of our work is assurance of any information reported by HPCL relating to:

Activities outside the defined assurance period stated hereinabove;

Positional statements (expressions of opinion, belief, aim or future intention) by HPCL and statements of future commitment;

Competitive claims in the report claiming “first in India”, “first time in India”, “first of its kind”, etc;

Our assurance does not extend to the activities and operations of HPCL outside of the scope and geographical boundaries as well as the operations undertaken by any subsidiaries or joint ventures of the Company.

Our assurance of the economic and financial performance data of HPCL is based only on the audited annual report 3 of HPCL for the Financial Year 2018-19 and our conclusions rely solely upon that audited report

This independent statement should not be relied upon to detect all errors, omissions or misstatements that may exist within the Report.

Statement of independence, impartiality and competence Bureau Veritas is an independent professional services company that specialises in Quality, Health, Safety, Social and Environmental management with almost 180 years history in providing independent assurance services, and an annual turnover in excess of € 4.60 billion.

Bureau Veritas has implemented a Code of Ethics across the business to maintain high ethical standards among staff in their day to day business activities. We are particularly vigilant in the prevention of conflicts of interest.

No member of the assurance team has a business relationship with HPCL, its Directors or Managers beyond that required of this assignment. We have conducted this verification independently, and there has been no conflict of interest.

The assurance team has extensive experience in conducting assurance over environmental, social, ethical and health and safety information, systems and processes and has over 5 years combined experience in this field and an excellent understanding of Bureau Veritas standard methodology for the Assurance of Sustainability Reports.

Bureau Veritas (India) Private Limited 72 Business Park, 9th Floor, MIDC Cross Road ‘C’, Opp. SEEPZ Gate #2, Andheri (East) Mumbai-400 093 India.

Jitendra Kadam Rupam Baruah Lead Assuror Technical Reviewer General Manager, Eastern Region, India Date: 11-Aug-2019 Mumbai

3 The Annual Report of HPCL is available for public reference at the web link http://www.hindustanpetroleum. com/financial and can be downloaded from that link

Sustainability Report 2018-19 133 GRI Content Index

Omission GRI Status of Ref No. Status Disclosure Page No. Part Standard Assurance Reason Explanation Omitted GRI 101: Foundation 2016 General Disclosures Organisational profile 102-1 Mandatory Name of the organisation Cover Page Assured 102-2 Mandatory Activities, brands, products, and services 14-21 Assured 102-3 Mandatory Location of headquarters Inside Cover Assured 102-4 Mandatory Location of operations 14-21 Assured 102-5 Mandatory Ownership and legal form 12, 54 Assured 102-6 Mandatory Markets served 16-21 Assured 102-7 Mandatory Scale of the organisation 14-21, 52-55, Assured 84-85 102-8 Mandatory Information on employees and other 84-85 Assured workers 102-9 Mandatory Supply chain 31 Assured 102-10 Mandatory Significant changes to the organisation 2, 14-21, 55 Assured and its supply chain 102-11 Mandatory Precautionary Principle or approach 27-30 Assured 102-12 Mandatory External initiatives 2, 32 Assured 102-13 Mandatory Membership of associations 32 Assured Strategy 102-14 Mandatory Statement from senior decision-maker 4-7 Assured 102-15 Mandatory Key impacts, risks, and opportunities 27 Assured Ethics and integrity 102-16 Mandatory Values, principles, standards, and norms 22-26 Assured of behavior 102-17 Mandatory Mechanisms for advice and concerns 30 Assured about ethics GRI 102: General Governance Disclosures 102-18 Mandatory Governance structure 23-30 Assured 2016 102-19 Mandatory Delegating authority 28 Assured 102-20 Mandatory Executive-level responsibility for 26, 38-40 Assured economic, environmental, and social topics 102-21 Mandatory Consulting stakeholders on economic, 41-46 Assured environmental, and social topics 102-22 Mandatory Composition of the highest governance 23-30 Assured body and its committees 102-23 Mandatory Chair of the highest governance body 23-30 Assured 102-24 Mandatory Nominating and selecting the highest 23-30 Assured governance body 102-25 Mandatory Conflicts of interest 28 Assured 102-26 Mandatory Role of highest governance body in 23-30 Assured setting purpose, values, and strategy 102-27 Mandatory Collective knowledge of highest 23-30 Assured governance body 102-28 Mandatory Evaluating the highest governance 23-30 Assured body’s performance 102-29 Mandatory Identifying and managing economic, 27-30, 47-49 Assured environmental, and social impacts 102-30 Mandatory Effectiveness of risk management 27 Assured processes 102-31 Mandatory Review of economic, environmental, 47-49 Assured and social topics 102-32 Mandatory Highest governance body’s role in 40 Assured sustainability reporting

134 Hindustan Petroleum Corporation Limited Omission GRI Status of Ref No. Status Disclosure Page No. Part Standard Assurance Reason Explanation Omitted 102-33 Mandatory Communicating critical concerns 40 Assured

Confidentiality Confidential being a 102-34 Mandatory Nature and total number of critical Assured Constraints business information concerns 102-35 Mandatory Remuneration policies 26 Assured 102-36 Mandatory Process for determining remuneration 26 Assured 102-37 Mandatory Stakeholders’ involvement in 26 Assured remuneration 102-38 Mandatory Annual total compensation ratio 26 Assured 102-39 Mandatory Percentage increase in annual total 26 Assured compensation ratio Stakeholder engagement 102-40 Mandatory List of stakeholder groups 41 Assured 102-41 Mandatory Collective bargaining agreements 96-97 Assured 102-42 Mandatory Identifying and selecting stakeholders 41-46 Assured 102-43 Mandatory Approach to stakeholder engagement 41-46 Assured GRI 102: 102-44 Mandatory Key topics and concerns raised 41-46 Assured General Reporting practice Disclosures 2016 102-45 Mandatory Entities included in the consolidated 2 Assured financial statements 102-46 Mandatory Defining report content and topic 2, 47-49 Assured Boundaries 102-47 Mandatory List of material topics 47-49 Assured 102-48 Mandatory Restatements of information 2 Assured 102-49 Mandatory Changes in reporting 2 Assured 102-50 Mandatory Reporting period 2 Assured 102-51 Mandatory Date of most recent report 2 Assured 102-52 Mandatory Reporting cycle 2 Assured 102-53 Mandatory Contact point for questions regarding 2 Assured the report 102-54 Mandatory Claims of reporting in accordance with 2 Assured the GRI Standards 102-55 Mandatory GRI content index 134-138 Assured 102-56 Mandatory External assurance 131-133 Assured Material Topics GRI 200 Economic Standard Series Anti-corruption 103-1 Material Explanation of the material topic 49 Assured GRI 103: and its Boundary Management 103-2 Material The management approach and its 23-30 Assured Approach 2016 components 103-3 Material Evaluation of the management approach 23-30 Assured

205-1 Material Operations assessed for risks related to 27-30 Assured corruption GRI 205: 205-2 Material Communication and training about anti- 27-30 Assured Anti-corruption corruption policies and procedures 2016 205-3 Material Confirmed incidents of corruption and 27-30 Assured actions taken

Sustainability Report 2018-19 135 GRI Content Index

Omission GRI Status of Ref No. Status Disclosure Page No. Part Standard Assurance Reason Explanation Omitted Anti-competitive Behavior 103-1 Material Explanation of the material topic and its 49 Assured Boundary GRI 103: 103-2 Material The management approach and its 106 Assured Management components Approach 2016 103-3 Material Evaluation of the management approach 106 Assured

GRI 206: Anti- 206-1 Material Legal actions for anti-competitive 106 Assured competitive behavior, anti-trust, and monopoly Behavior 2016 practices GRI 300 Environmental Standards Series Energy 103-1 Material Explanation of the material topic and its 49 Assured Boundary GRI 103: 103-2 Material The management approach and its 66 Assured Management components Approach 2016 103-3 Material Evaluation of the management approach 66 Assured

302-1 Material Energy consumption within the 66 Assured organisation 302-2 Material Energy consumption outside of the 67 Assured GRI 302: organisation Energy 2016 302-3 Material Energy intensity 67 Assured 302-4 Material Reduction of energy consumption 68-69 Assured 302-5 Material Reductions in energy requirements of 107-108 Assured products and services Water 103-1 Material Explanation of the material topic and its 49 Assured Boundary GRI 103: 103-2 Material The management approach and its 74 Assured Management components Approach 2016 103-3 Material Evaluation of the management approach 74 Assured

303-1 Material Water withdrawal by source 74 Assured GRI 303: 303-2 Material Water sources significantly affected by 74 Assured Water 2016 withdrawal of water 303-3 Material Water recycled and reused 75 Assured Emissions 103-1 Material Explanation of the material topic and its 49 Assured Boundary GRI 103: 103-2 Material The management approach and its 70 Assured Management components Approach 2016 103-3 Material Evaluation of the management approach 70 Assured

305-1 Material Direct (Scope 1) GHG emissions 70 Assured 305-2 Material Energy indirect (Scope 2) GHG 70 Assured emissions 305-3 Material Other indirect (Scope 3) GHG emissions 70 Assured GRI 305: 305-4 Material GHG emissions intensity 71 Assured Emissions 305-5 Material Reduction of GHG emissions 70-72 Assured 2016 305-6 Material Emissions of ozone-depleting 64 Assured substances (ODS) 305-7 Material Nitrogen oxides (NOX), sulfur oxides 71 Assured (SOX), and other significant air emissions

136 Hindustan Petroleum Corporation Limited Omission GRI Status of Ref No. Status Disclosure Page No. Part Standard Assurance Reason Explanation Omitted Effluents and Waste 103-1 Material Explanation of the material topic and its 49 Assured Boundary GRI 103: 103-2 Material The management approach and its 76 Assured Management components Approach 2016 103-3 Material Evaluation of the management approach 76 Assured

306-1 Material Water discharge by quality and 74-75 Assured destination

GRI 306: 306-2 Material Waste by type and disposal method 76-77 Assured Effluents 306-3 Material Significant spills 74 Assured and Waste 2016 306-4 Material Transport of hazardous waste 76-77 Assured 306-5 Material Water bodies affected by water 74 Assured discharges and/or runoff Environmental Compliance 103-1 Material Explanation of the material topic and its 49 Assured Boundary GRI 103: 103-2 Material The management approach and its 62-63 Assured Management components Approach 2016 103-3 Material Evaluation of the management approach 62-63 Assured

GRI 307: 307-1 Material Non-compliance with environmental 77 Assured Environmental laws and regulations Compliance 2016 GRI 400 Social Standards Series Occupational Health and Safety 103-1 Material Explanation of the material topic and its 49 Assured Boundary GRI 103: 103-2 Material The management approach and its 98-99 Assured Management components Approach 2016 103-3 Material Evaluation of the management approach 98-99 Assured

403-1 Material Workers representation in formal joint 99 Assured management–worker health and safety committees 403-2 Material Types of injury and rates of injury, 99 Assured GRI 403: occupational diseases, lost days, and Occupational absenteeism, and number of work- Health related fatalities and Safety 2016 403-3 Material Workers with high incidence or high risk 99, 103 Assured of diseases related to their occupation 403-4 Material Health and safety topics covered in 97 Assured formal agreements with trade unions Customer Health and Safety 103-1 Material Explanation of the material topic and its 49 Assured Boundary GRI 103: 103-2 Material The management approach and its 106 Assured Management components Approach 2016 103-3 Material Evaluation of the management approach 106 Assured

Sustainability Report 2018-19 137 GRI Content Index

Omission GRI Status of Ref No. Status Disclosure Page No. Part Standard Assurance Reason Explanation Omitted 416-1 Material Assessment of the health and safety 106 Assured GRI 416: impacts of product and service Customer categories Health and 416-2 Material Incidents of non-compliance concerning 112 Assured Safety the health and safety impacts of 2016 products and services Marketing and Labeling 103-1 Material Explanation of the material topic and its 49 Assured Boundary GRI 103: 103-2 Material The management approach and its 106 Assured Management components Approach 2016 103-3 Material Evaluation of the management approach 106 Assured

417-1 Material Requirements for product and service 106 Assured information and labeling GRI 417: 417-2 Material Incidents of non-compliance concerning 106 Assured Marketing product and service information and and Labeling labeling 2016 417-3 Material Incidents of non-compliance concerning 106 Assured marketing communications Socioeconomic Compliance 103-1 Material Explanation of the material topic and its 49 Assured Boundary GRI 103: 103-2 Material The management approach and its 116 Assured Management components Approach 2016 103-3 Material Evaluation of the management approach 116 Assured

GRI 419: 419-1 Material Non-compliance with laws and 26, 126 Assured Socioeconomic regulations in the social and economic Compliance area 2016 Oil and Gas Sector Supplement (OGSS - GRI G4) OG 2 Material Total amount invested in renewable 73 Assured energy GRI G4 OGSS - OG 3 Material Total amount of renewable energy 73 Assured Oil and generated by source Gas Sector OG 8 Material Benzene, Lead and Sulphur content in 15 Assured Supplement fuels OG 14 Material Volume of Biofuels produced and 16-21, 107 Assured purchased

138 Hindustan Petroleum Corporation Limited Abbreviations

ALDS Auto LPG Dispensing Stations GeM Government e-Marketplace ALPG Auto Liquefied Petroleum Gas GHG Green House Gas AMTA Asset Master Transfer Application GJ Gigajoule APC Advanced Process Control GRI Global Reporting Initiative API Application Program Interface GSA Gram Swaraj Abhiyan ASFs Aviation Service Facilities GST Goods and Services Tax BDEP Basic Design Engineering Packages GTG Gas Turbine Generator C&B Compensation & Benefits HDPE High-Density Polyethylene CAAMS Continuous Ambient Air Monitoring Station HFHSD High Flash High Speed Diesel CCR Continuous Catalytic Reformer HGU Hydrogen Generation unit CDCMS Centralised Distributor & Consumer HPCL Hindustan Petroleum Corporation Limited Management System HPGRDC Hindustan Petroleum Green Research & CDP Career development Policy Development Centre CDU Crude Distillation Unit HP-SOW HP-Safety on Wheels CEMS Continuous Emission Monitoring System HQO Head Quarters Office CFA Clearing and Forwarding Agents HR Human Resource CFD Committee of Functional Directors HRSG Heat Recovery Steam Generator CGD City Gas Distribution HSD High Speed Diesel CMMI Capability Maturity Model Integration HSE Health, Safety & Environment CMP Crisis Management Plan HSN/SAC Harmonized System of Nomenclature/ Service CNG Compressed Natural Gas Accounting Code CPCB Central Pollution Control Board ICC Internal Complaint Committees CPGRAMS Centralised Public Grievances Redress and IGBC Indian Green Building Council Monitoring System IMM Integrated Margin Management CPM Certified Petroleum Manager IMO International Maritime Organisation CPO Central Procurement Organisation IPCC Intergovernmental Panel on Climate Change CPSEs Central Public Sector Enterprises IRD Inland Relay Depot CRM Customer Relationship Management, ISO International Standards Organisation Certified Reference Material IT Information Technology CSR Corporate Social Responsibility IVRS Interactive Voice Response System CVC Central Vigilance Commission KPI Key Performance Indicators DCS Distributed Control System kWh KiloWatt hour DHDS-ARU Diesel Hydrodesulfurisation-Aromatics KYC Know Your Customer Recovery Unit LED Light Emitting Diode DHT Diesel Hydrotreating Unit LFA Leave Fare Assistance EBITDA Earnings Before Interest, Tax, Depreciation LPG Liquefied Petroleum Gas and Amortisation MBLC M B Lal Committee EGP Education Growth Plan MBN MMBTU/Barrel/NRGF EQMS Enterprise Quality Management Software MCP Machine Care Programme ER Employee Relations MDPL Mundra Delhi Pipeline ERP Enterprise Resource Planning MERC Management Employee Relations Committee ESI Employees' State Insurance MMT Million Metric Tonne ETP Effluent Treatment Plant MMTPA Million Metric Tonne Per Annum EV Electric Vehicle MoEF&CC Ministry of Environment, Forest & Climate FCC Fluid Catalytic Cracking Change FII Foreign Institutional investors MoP&NG Ministry of Petroleum & Natural Gas FO Furnace Oil MOU Memorandum of Understanding FY Fiscal Year MPCB Maharashtra Pollution Control Board GDP Gross Domestic Product MPSPL Mumbai Pune Solapur Pipeline

Sustainability Report 2018-19 139 Abbreviations

MR Mumbai Refinery SPCB State Pollution Control Board MREP Mumbai Refinery Expansion Project SPM Suspended Particulate Matter,Single Point MS Motor Spirit Mooring MSEs Micro and Small Enterprises SRFT Standard Refinery Fuel Tonnage MSMEs Micro, Small and Medium Enterprises STP Sewage Treatment Plant

MT Metric Tonne tCO2e Tonnes of Carbon Dioxide Equivalent MTO Mineral Turpentine Oil TDS Tax Deducted at Source MW MegaWatt TKL Thousand Kilo litre MWp MegaWatt peak TMT Thousand Metric Tonnes NABL National Accreditation Board for Calibration TOA Trans-shipment Order and Advice and Testing Laboratories TReDS Trade Receivables Discounting System NDC Nationally Determined Contributions UNGC United Nations Global Compact NFCCU New Fluid Catalytic Cracking Unit VR Visakh Refinery NGT National Green Tribunal VRMP Visakh Refinery Modernisation Project NOx Nitrogen Oxides VRS Vapour Recovery System NRI Non-Resident Indian VTS Vehicle Tracking System NSCI National Safety Council of India VVSPL Visakh Vijayawada Secunderabad Pipeline OD&E Operations, Distribution & Engineering WIPS Women in Public Sector OEM Original Equipment Manufacturer OISD Oil India Safety Directorate OMC Oil Marketing Companies ONGC Oil and Natural Gas Corporation PAT Perform, Achieve and Trade PCMM People Capability Maturity Model PDA Propane De-Asphalting PM Performance Management PME Periodical Medical Examination PMUY Pradhan Mantri Ujjwala Yojana PSA Pressure Swing Adsorption PSPB Petroleum Sports Promotion Board PSU Public Sector Undertakings PV Photo Voltaic PWD Persons with Disabilities QA Quality Assurance QC Quality Control QR Quick Response R&D Research & Development RLNG Regasified Liquefied Natural Gas RMSC Risk Management Steering Committee RON Research Octane Number ROU Right Of Use RTI Right to Information SBCC Social Behavioral Change Communication SBU Strategic Business Unit SDG Sustainable Development Goals SDI Skill Development Institute SEBI Securities and Exchange Board of India SEU Solvent Extraction Unit SOx Sulphur Oxides

140 Hindustan Petroleum Corporation Limited Sustainability Report 2018-19 Feedback Form

Your feedback is important for continuously improving our Sustainability performance and reporting. Please take a few minutes to answer the following questions:

1. How would you rate the overall report quality? Excellent Good Average Poor

2. Which aspect/(s) did you like the most in the report? Coverage of topics Design & Layout Data Representation Readability

3. Which section/(s) did you like the most in the report? The World of HPCL Sustainability Ethos Fuelling Growth and Prosperity

Preparing for a Greener Tomorrow Our People, Our Strength

Product Stewardship Creating Shared Value

4. What additional information would you like to see in our future reports?

5. Any other comments/suggestions?

Fill, Tear, Scan, E-mail Fill, Tear,

Kindly provide us your contact information for further correspondence:

Which of the following best describes your occupation/industry? Academia Corporation Customer Financial Analyst

Government Media NGO Shareholder

Others, please specify

Name: Company:

Address:

Phone: Email:

Mail your responses to: Sustainability Division – Corporate HSE Hindustan Petroleum Corporation Ltd. Mumbai Refinery, Lube Admin Building B D Patil Marg, Chembur, Mumbai – 400 074 Email ID: [email protected]

Online Feedback can be given at: https://hindustanpetroleum.com

Sustainability Performance 2018-19

Economic `2,98,564 Total Revenue `6,029 Crore Crossed 6,000 mark in Net Profit for 3rd consecutive year `73,350 Crore Contribution to Exchequer Environment 18.4 MMT Highest Ever Crude 30,710 SRFT Oil Processing Energy Conservation at Refineries 38.7 MMT 22.6 MWp Highest Ever Sales Volume Doubled solar power capacity 19 Crore kWh Wind energy generation 21.5 MMT Highest ever pipeline throughput 5.5% Social Ethanol Blending achieved 24.59 Million Safe Man-Hours Best ever safety record at Mumbai Refinery 1.01 Crore New LPG Connections Released under the PMUY programme `159.81 Crore Expenditure on CSR Activities Project Akshayapatra: 15,000 Children provided with mid-day meals across India Project Nanhi Kali: 13,000 Girl Children Supported in backward areas Project Unnati: 12,000 Students trained with basic computer education Delivering Happiness

Hindustan Petroleum Corporation Limited

Petroleum House, 17, Jamshedji Tata Road, Churchgate, Mumbai – 400 020

Visit us at: www.hindustanpetroleum.com | Like us at: www.facebook.com/hpcl | Follow us at: www.twitter.com/hpcl