f�) SAGAR CEMEN S IM ED - ·------··------·------
Ref:SCL:SEC:2020-21 27th July 2020
The National Stock Exchange of India Ltd., The Secretary "Exchange Plaza", 5th Floor BSE Limited Bandra - Kurla Complex P J Towers Bandra (East) Dalal Street Mumbai - 400 051 Mumbai - 400 001
Symbol: SAGCEM Scrip Code: 502090 Series: EQ
Dear Sirs
Sub: Intimation under Regulation 30 of SEBI (LODR) Regulations 2015
Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements)
Regulations 2015, we are forwarding herewith Sustainability Report of our company which has
just been released for the year 2018-19.
Thanking you
Yours faithfully gar Cements Limited �
Company�� Secretary
e,EJ'l!FI�,-, ,;'(STfM e,tf'llF�,- Q� .t�-''" \ is;,,,,,�c. ,._ l/'"'-....::.'O \ 3 L1G1.11svs. � \.. m J m� [t m 1 Mcrn , c h�, � ,, � Registered Office : Plot No. 111, Road No. I 0, Jubilee Hills. Hyderabad - 500 033 Phone : +91-40-23351571, 23356572 Fax : +9 l-40-23356573 [email protected] www.sagarcements.in Facto�y : Mattampally (Village & Mandal) - 508204, Suryapet - District. Phone : 08683 - 247039 CIN : L26942TG 1981 PLC002887 Sustainability Report FY 2018-19
Report at a Glance
This is the company’s First Sustainability Report; it marks the beginning of a formal process to communicate the Sustainability performance of Sagar Cements Ltd. to its stakeholders. This report has been prepared in accordance with the GRI Standards: Core option.
The information pertains to the period 1st April 2018 to 31st March 2019. The data in the report is limited to the company’s manufacturing plant at Mattampally Suryapet District, Telangana.
Although Sagar Cements has internal mechanisms to ensure the reliability of the data, the report has been Our Vision assured by Libero Assurance (Libero’) thereby enhancing the credibility of the disclosures in the report. To provide foundations for Libero Assurance (Libero’) is an independent third party society’s future that has no financial interest in the operations of Sagar Cements Ltd. other than for the assessment and assurance of this report. The assurance statement thus issued has been included in the report. The company’s Top Management has been proactively involved in the assurance process.
Being the first Sustainability Report, no restatements have been made.
Continuing with its commitment to sustainable development, Sagar Cements will henceforth produce the sustainability report, periodically aligning with its reporting cycle to the extent possible. For your Our Mission suggestions and feedback, kindly write to us at [email protected] To be India's most respected and attractive company in our The development of Sustainability Report for FY 2018-19, industry & creating value for all is supported by International Finance Corporation (IFC) our stakeholders. - a sister organization of the World Bank and member of the World Bank Group, under an advisory program focused on institutionalizing resource efficiency and sustainability. Providing advice is a critical part of IFC’s strategy to create markets and mobilize private investments. IFC’s work for this program is supported by donor partners – Canada IFC Partnership Fund, Government of Canada and The Sustainable Development Investment Partnership (SDIP) under Department of Foreign Affairs and Trade (DFAT), Government of Australia. IFC and Sagar Cements Ltd
thankfully acknowledge the contributions provided. A Strong Bond of Business & Life Sustainability Report FY 2018-19
03
Table of Contents
Chairman’s Message 10
Sagar Cements: 12 A Legacy of Excellence since 1985
Corporate Governance 19
Risk Management 21
Ethics, Values and Integrity 22
Stakeholder Engagement 23
Stewardship in ESG 26
Economic Performance 27
Environmental Performance 29
Occupational Health & Safety 46
People Performance 50
Supply-chain Management 54
Social Performance 55
Assurance Statement 60
GRI Index 62 06 A Strong Bond of Business & Life Sustainability Report FY 2018-19 ESG Highlights Met byRainwater Water Requirement 7.80% 100% Clinker Produced 17,46,589 MT Cement 18,14,615 MT Base Year2015-16 Compared tothe Consumption as in SpecificPower 06 A Strong Bond of Business & Life Sustainability Report FY 2018-19 Industrial Reduction ESG Highlights Met byRainwater Water Requirement 7.80% 100% Clinker Produced 17,46,589 MT Cement 18,14,615 MT Base Year2015-16 Compared tothe Consumption as in SpecificPower Industrial Reduction Waste toLandfill Met fromGreenEnergy Energy Requirementis 0% 29.03% CSR Activities Spent on Rs. 121.59Lakh Hazardous Waste toLandfill Met fromGreenEnergy Energy Requirementis 29.03% CSR Activities Spent on Rs. 121.59Lakh Zero of theTotal Hazardous of theTotal Consumption viz.FY16 Reduced Freshwater 39.74% to Clinker as anAlternative BIS Specificationisused which isMaximumasper 35% 0.025 3 : Scope 0.043 2 : Scope 0.669 1 : Scope tCO Emission Intensity 2 e/T ofCementeq. of Flyash Conducted LCAfor OPC &PPC Mini HydroPower: Solar Power: Waste HeatRecovery: Generated &Consumed: Green viz. FY16 (Scope 1/tonofCement) Direct GHGIntensity 4.10% Reductionin &
Renewable Energy 0.81% 1.70% 26.52% 07 A Strong Bond of Business & Life Sustainability Report FY 2018-19 07 A Strong Bond of Business & Life Sustainability Report FY 2018-19 CSI PerformanceCSI Performance
15,42,36915,42,369 14,62,28614,62,286
tCO2e tCO2e tCO2e tCO2e Gross GHGGross GHG Net GHGNet GHG EmissionEmission EmissionEmission
0.764 gross0.764 gross 0.724 Net0.724 tCO Net2e/ton tCO2e/ton
tCO2e/tontCO2e/ton of Cementitiousof Cementitious of Cementitiousof CementitiousMaterialMaterial MaterialMaterial
3,157 kjoule3,157 /Kgkjoule /Kg 754.54 754.54kcal /Kg kcal /Kg1.59% 1.59% of Clinkerof ClinkerSpecific SpecificAlternativeAlternative Heat ConsumptionHeat ConsumptionFuel RateFuel Rate A Strong Bond of Business & Life Sustainability Report FY 2018-19 A Strong Bond of Business & Life Sustainability Report FY 2018-19
08 08 Lost Time Injuries 3 employed) Fatalities (indirectly Zero Cement Clinker to 85% Raw MealStage Materials at Alternative Raw 3.65% Lost Time Injuries 3 employed) Fatalities (indirectly Zero Cement Clinker to 85% Raw MealStage Materials at Alternative Raw 3.65% LTIFR 1.81 employed) Fatalities (directly Zero Cement Stage the Clinkerat Alternative to 11.10% LTIFR 1.81 employed) Fatalities (directly Zero Cement Stage Clinker atthe Alternative to 11.10% 09 A Strong Bond of Business & Life Sustainability Report FY 2018-19 09 A Strong Bond of Business & Life Sustainability Report FY 2018-19 10 A Strong Bond of Business & Life Sustainability Report FY 2018-19 of SagarCement’s corporatestrategy. have alwaysbeenanintegral element sustainability andsocialresponsibility inclusive. Inalltheseyears, followed apathofgrowthwhich is our stakeholders.Sincethen wehave with amissiontocreatevalue forall production ofcementintheyear1985 We startedourjourneywiththe Message from Chairman such asenergyefficiency,water against certainperformanceparameters evaluates greenfeaturesofcompanies Rating system'(GreenCorating)which evaluation undertheGreenCompany new initiatives.Weopenedourselvesfor In thefinancialyear2018-19,weintroduced of ouremployees&societyatlarge. not limitedtoprofitsbutincludethegrowth social footprint.Ourgrowthparametersare time managingourenvironmentaland a high-qualityproductandatthesame technologies toprovideourcustomerswith retain talent.Wedeploystateoftheart Customer satisfaction,todevelopand stakeholders, improvequalitysystems, operational performance,createvaluefor are beingdeployedtoenhance Economic sustainability.Variousinitiatives achieve Environmental,Socialand At SagarCementstoday,theagendaisto Cement’s corporatestrategy. always beenanintegralelementofSagar sustainability andsocialresponsibilityhave growth whichisinclusive.Inalltheseyears, Since thenwehavefollowedapathof to createvalueforallourstakeholders. of cementintheyear1985withamission We startedourjourneywiththeproduction report beingpresentedbythecompany. bottom lineinitiatives,isthefirstsuch as aproactivedisclosureofourtriple Report forFY2018-19.Thisreport,developed Sagar CementLimited’sfirstSustainability It iswithgreatpridethatIbringtoyou Dear Stakeholders, Chairman O.Swaminatha Reddy performance. to yourfeedbackimproveour us toachieveourgoalsandlookforward We seekyourcontinuedsupporttoenable in ourjourneytowardssustainability. I thankourstakeholdersforsupportingus performance toourstakeholders. communicate ourSustainability We willcontinuetomonitor,manageand an actofphilanthropy. CSR isatoolforvaluecreationratherthan communities intheyearstocome.Forus, continue oureffortsinbuildingself-reliant of Sportsandruraldevelopment.Wewill Capacity Building,Education,promotion programme, weworkintheareaof Under ourCommunitydevelopment responsible andsustainablebusiness. We arecommittedtobuildinga development. our futureendeavorstowardsSustainable Policy, whichwillactasaguidingtoolfor We havealsodraftedourSustainability increase ourefficiencyinthenearfuture. we willreduceourcarbonfootprintand reduction potential.Weareconfidentthat efficiency opportunitiesandGHGemission As aresult,weexploredvariousresource facility locatedinMattampally,Telangana. Electrical inourcementmanufacturing resource efficiencystudies:Thermaland Further tothis,wealsoconductedin-depth mitigation, watermanagement,etc. conservation, renewableenergy,GHG
11 A Strong Bond of Business & Life Sustainability Report FY 2018-19 Sagar Cements: A Legacy of Excellence since 1985
Sagar Cements Ltd. (SCL) is a company present level of 2.65 MTPA. Within a time engaged in the manufacturing of span of 37 years it has carved a niche Cement. Since its inception in 1985 has place for itself in the cement sector grown multi-folds both in terms of across the state of Telangana, Andhra scale and scope. It commenced its Pradesh and its neighboring states in operations with a cement capacity of India. It is a public company incorporated 66000 TPA and has gradually increased on 15 January 1981 and is classified as to 3.30 MTPA, while its Clinker capacity Non-govt company registered at has also witnessed a significant Registrar of Companies, Hyderabad. increase from 66000 TPA in 1985 to the A Strong Bond of Business & Life Sustainability Report FY 2018-19
12 >600 mnTonnes Limestone Reserves: Maharashtra Telangana, Odisha,and Markets Catered:AP, 3.30 MTPA Cement Capacity: Telangana Mattampally, PRADESH ANDHRA TELANGANA HYDERABAD Captive PowerPlant:25MW Tonnes (20YrLease) Limestone Reserves:174.7mn Karnataka, TamilNadu Markets Catered:AP, Cement Capacity:1.25MTPA Gudipadu, AP wholly-owned subsidiary), Sagar Cements(R)Limited(a BMM CementsLtd. Srikakulam, andpartsofOdisha Visakhapatnam, Vizag, Markets Catered: Capacity (grinding):1.5MTPA Visakhapatnam District,AP Bayyavaram Village,
13 A Strong Bond of Business & Life Sustainability Report FY 2018-19 The company which started with its Sagar Cements recently acquired 65% flagship manufacturing plant at equity stake in Satguru Cement Private Mattampally in Telangana, has Limited (SCPL) and is putting up a new broadened its horizons and has line of 7.33 Lakh TPA Clinker and 1 Million Reacquired the grinding unit at TPA Cement production capacity Bayyavaram Village, Andhra Pradesh. respectively. The plant is located at The company doesn’t have any Joint Gursal village in Dhar district, Madhya Ventures and Associate Companies. It Pradesh. The company has 2 Hydel has two wholly-owned subsidiaries BMM power units i.e. Guntur Branch Canal Cements Ltd. (re-named as Sagar Hydel Project, Guntur District, Andhra Cements (R) Limited.) with its cement Pradesh, and Lock-in-Sula- Hydel Project, plant in Gudipadu Village in Ananthapur Kurnool District, A.P. District, Andhra Pradesh and Jajpur The company employs state of the art Cements Private Limited which is in the technology. Its plant at Mattampally is process of setting up a Cement based on Dry Process Rotary Kiln Grinding Plant of 1.5 MTPA capacity at Technology. Jajpur, Odisha.
Fully integrated and automated facility
Strong network of Strong approx. 2150 Limestone dealers reserves: Over 600mn tonnes at Mattampally
Proximity to coal mines, ports, major markets of south A Strong Bond of Business & Life Sustainability Report FY 2018-19
14 geographical areas. spread across diversesegmentsand been abletocreatealoyal customerbase quality ofitsproducts.As aresult,ithas technology, maintainsa highstandardof The company,withitsstate-of-the-art presence inSouthOdisha Marketstoo. Bayyavaram, SCLhaveincreased its expansion ofthegrindingunitat Tamil Nadu,andMaharashtra.Withthe Telangana, AndhraPradesh,Karnataka, with aspecificfocusonstatesof The companycaterstotheIndianMarket name “Sagar”. products arebeingsoldundertheBrand and SulphateResistantCement(SRC).The Grade, PortlandPozzalonaCement(PPC) Cement (OPC)of53Grade,4333 Cement includingOrdinaryPortland SCL manufacturesvariousvarietiesof Product Portfolio than 5%and(2C3A+C4AF)islower25%. Tricalcium aluminate(C3A)isrestrictedtolower Portland cementinwhichtheamountof Sulphate ResistingPortlandCementisatypeof Sulphate ResistingPortlandcement(SRC) them incertainproportions. materials separatelyandthoroughlyblending grinding theOPCclinker,gypsum,andPozzolanic and pozzolanicmaterialsincertainproportionsor inter-grinding ofOPCclinkeralongwithgypsum Blended Cementisproducedbyeither Portland PozzolanaCement(PPC) work undernormalenvironmentalconditions. This cementisusedforgeneralcivilconstruction 33 GradeOPC It isthemostpopulargeneral-purposecement. 43 GradeOPC the consumerforhigherstrengthconcrete. It isahigherstrengthcementtomeettheneedsof 53 GradeOPC for itsstakeholdersinthe longrun. cement toitscustomers butcreatingvalue not limitedtoproviding high-quality The companyenvisages agrowththatis alliances. neighboring statesthroughstrategic business intheinteriorareasofits Sagar CementsLtd.islookingtoexpandits that initsoperations. their feedbackandtherebyincorporating its customersatregularintervalstotake personnel. Furthertothis,SCLengageswith whom areservedbydedicatedmarketing Distributors, Dealers,C&FAgents,allof comprising ofvariouslayerslike has awell-establishedmarketingnetwork To servetheendcustomer,TheCompany 15 A Strong Bond of Business & Life Sustainability Report FY 2018-19 Our JourneyOur Journey
• Installation of • Installation of 6 stage inline 6 stage inline Calciner with Calciner with • Plant Commissioned• Plant Commissioned pre heater, pre heater, with 200 TPD Kilnwith 200 TPD Kiln cooler cooler with 4 stage pre withheater 4 stage pre heater modification modification & RTKM & RTKM • Added additional• Added additional separator for separator for 1985 1985 cement mill & cement mill & Coal Mill Coal Mill tertiary crusher tertiary crusher 2002 2002 1996 1996
1993 1993
• Expansion by installing• Expansion by installing a separate line Calcinera separate line Calciner with 5 stage pre withheater 5 stage pre heater & adding a jaw crusher& adding a jaw crusher 1998 1998 • Additional Raw• mill,Additional ESP Raw mill, ESP for Kiln and coolerfor Kiln and cooler • Installation of KIDS• Installation of KIDS modification modification cooler, VFDs for Rawcooler, VFDs for Raw Mills and Coal MillsMills and Coal Mills A Strong Bond of Business & Life A Strong Bond of Business & Life Sustainability Report FY 2018-19 Sustainability Report FY 2018-19
16 16 InstallationofKIDS • Mills andCoal cooler, VFDsforRaw Installationof • Coal Mill separator for & RTKM modification cooler pre heater, Calciner with 6 stageinline 2008 FormedaJVwithVicattoset • in Karnataka up a5.5MTPAcementplant 2014 Brownfield • existing Kiln adjacent tothe grinding capacity 2.65 MTPAcement Pendulum cooler& pre heater,Kilnand 6 stageinlineCalciner by addingadditional capacity expansion 2008 upa5.5MTPAcementplant FormedaJVwithVicattoset • in Karnataka 2014 existing Kiln adjacent tothe grinding capacity 2.65MTPAcement Pendulumcooler& preheater,Kilnand 6stageinlineCalciner byaddingadditional capacityexpansion Brownfield ExitedfromVicatJVfor • 2015 of 1MTPAwith25mwCPP SC(R) withacapacity BMM Cenments,now INR 425Cr.Acquired a considerationof 2016 Commissioned • a railwaysiding commissioned 3.30 MTPA.Also the capacityto VRPM taking 2015 of1MTPAwith25mwCPP SC(R)withacapacity BMMCenments,now INR425Cr.Acquired aconsiderationof ExitedfromVicatJVfor • 2016 arailway siding commissioned 3.30MTPA.Also thecapacityto VRPM taking Commissioned 2017 Commissioned • MW SolarPower WHRS &1.25 6.5/7.0 MW 2019 Enhanced • to 8.8MW enhanced WHRS Bayyavaram & to 1.5MnTonnesat grinding capacity 2017 MWSolar Power WHRS &1.25 6.5/7.0 MW Commissioned 2019 enhancedWHRS Bayyavaram& to1.5MnTonnesat grindingcapacity Enhanced to 8.8MW 17 A Strong Bond of Business & Life Sustainability Report FY 2018-19
17 A Strong Bond of Business & Life Sustainability Report FY 2018-19 Cement Manufacturing Process
Cement manufacturing is an etc. used in cement manufacturing energy-intensive process. A mixture of which are bought directly from other Limestone and Clay is ground and burnt sources because of small quantity at a very high temperature to form requirements. Limestone is crushed Clinker. The Clinker is ground to a fine and reduced to a fine powder and it is powder with the addition of Gypsum (up blended with other raw materials in to 5 %) to form Cement. The essential correct proportion. The mixture known components of Cement are Lime, Silica, as kiln feed is heated in a rotary kiln Alumina and Iron Oxide. There are where it reaches a temperature of different types of Cement, which differ about 1400 C to 1500 C. The material based on their chemical composition. formed in the kiln is known as ‘clinker’. However, the manufacturing process The cement mill grinds the clinker to a remains the same. fine powder. A small amount of gypsum - a form of calcium sulphate Limestone is the primary component of - is normally ground up with the cement which is extracted from the clinker. The gypsum controls the quarry. There are other raw materials setting properties of the cement when such as coal, fly ash, petcoke, laterite, water is added. A Strong Bond of Business & Life Sustainability Report FY 2018-19
18 Corporate Governance exceed onehundredandtwentydays. two consecutivemeetingsdidnot met seventimesandthegapbetween During thereportingperiod,board Directors andaNomineeDirector. Managing Director,Independent Chairman, ManagingDirector,Joint The Boardofdirectorsincludes accountability acrosstheorganization. place topromotetransparencyand and hassystemsproceduresin standards ofcorporategovernance committed leadership.Itmaintainshigh team ofwellqualified,diligentand Sagar Cementsisspearheadedbya making onsocialandenvironmentaltopics. committee isresponsiblefordecision Social ResponsibilityCommittee.TheCSR Relationship CommitteeandCorporate Remuneration Committee,Stakeholders’ Audit Committee,Nomination,and function. Thesecommitteesincludethe committees witheachhavingitsspecific approach, theboardconstitutedvarious To dealwithcomplexissuesafocused concerning corporategovernance. Regulations, 2015(SEBIListingRegulations) Obligations andDisclosureRequirements) requirements applicableunderSEBI(Listing The companycomplieswiththe 19 A Strong Bond of Business & Life Sustainability Report FY 2018-19 Board of Directors
Shri O.Swaminatha Reddy Independent and Non-Executive, Chairman
Dr.S.Anand Reddy Managing Director, Promoter
Shri S.Sreekanth Reddy Joint Managing Director, Promoter
Mrs. S.Rachana Non-Executive Director, Promoter
Shri K.Thanu Pillai Independent Director
Shri V.H. Ramakrishnan Independent Director
Shri T. Nagesh Reddy APIDC Nominee
Shri John-Eric Fernand Non-Executive Pascal Cesar Bertrand
Shri Jens Van Nieuwenborgh Alternate Director to Shri John-Eric Fernand Pascal Cesar Bertrand (From 20.11.2018)
Table 1: Board of Directors as on March 31st, 2018 A Strong Bond of Business & Life Sustainability Report FY 2018-19
20 Risk Management
Sagar Cements have been proactive in the entire company and instituting identifying various risks associated with practices that will ensure the highest its business, both internal and external. possible level of compliance. As a precautionary measure, a risk management system has been put in SCL tracks all statutory and regulatory place where in Order to minimize risks compliances applicable to each every proposal of significant nature is department in the organization . A screened and evaluated for the risks responsibility to ensure that SCL is in involved in it and then approved at complaince with a particular law or different levels in the organization regulation lies with the compliance owner before implementation. of that particular law or regulation. Compliance Module generates auto email Various risks including the risk of alert and communicates the same to dependency on a particular market/ owner and approver in time. The Module region for sales, financial risks, etc. are data base is updated with respect to the effectively managed. Internal controls recent amendments in compliance. In such as the audit committee have also addition to the above as part of IMS, legal been put in place. register is also maintained by the departments, where in statutory and It is further ensured that business is regulatory requirements are covered. conducted in full compliance with all The top management of SCL reviews the national and international laws and comprehensive report on compliance regulations that pertain to cement management during monthly review sector, as well as professional meeting. standards, accepted business practices, and internal standards. The compliance During the reporting period, there were officer is charged not just with keeping no cases of non compliance related to the business dealings ethically sound the environment, social, labour, and and legally pristine, but with educating corruption. A Strong Bond of Business & Life Sustainability Report FY 2018-19
21 Ethics, Values and Integrity
Sagar Cements has imbibed a culture The company has implemented a Whistle where decisions are governed by its Blower Policy giving employees a fair values and beliefs. Driven by a strong opportunity to raise a voice against any value system at the core, each employee unethical and improper practices or any abides by the organizations' policies and other wrongful conduct in the Company. procedures. The presence of a Corporate Social Responsibility Policy reflects SCL's A well written Code of Conduct aims at commitment towards society. It acts as a maintaining uniformity, transparency and guiding source to conduct community fairness in dealing with its stakeholders. In development initiatives responsibly. addition to the code of conduct, Sagar Cements has implemented various other Occupational Health & Safety Policy of the policies including Whistle Blower policy, company demonstrates its commitment Corporate Social Responsibility Policy, towards Health & Safety of its Employees. Environment, Occupational Health & The company has also established an Safety policy, etc. as a measure to Environment Policy to work towards strengthen its governance system and conserving natural resources and operate its to conduct its business with high business in an environment-friendly manner. ethical standards. A Strong Bond of Business & Life Sustainability Report FY 2018-19
22 dialogues withthecommunity, etc. each stakeholdere.g.we conductopen engagement mechanism differsfor To derivevaluefromtheprocess, emails, onetodiscussion,etc. on differentforumsincludingsurveys, We engagewithvariousstakeholders engagement isastrategicprocess. At SagarCements,Stakeholder deliver valuetoourStakeholders. improve andfollowourmission“to process helpsustocontinuously business decisions.Theengagement consideration andarereflectedinour and expectationsaregivendue stakeholders periodically.Theirconcerns operations. Weengagewithour Cements itisanintegralpartofour amongst thestakeholders.AtSagar transparency andasenseofownership An effectiveengagementbuildstrust, factor inthesuccessofanybusiness. Stakeholder Engagementisacritical Stakeholder Engagement
dynamic relationshipwithourstakeholders. period aregiveninthefigure.Wemaintaina stakeholders engagedduringthereporting and powertoinfluenceourbusiness.The were thenprioritizedbasedontheirinterest comprehensive listofstakeholders,which The Processcommencedbyidentifyinga concerns raisedbyourstakeholders. engagement mechanismstomapthe During thereportingperiod,weusedexisting INFLUENCE Community Suppliers INTEREST Customers Employees 23 A Strong Bond of Business & Life Sustainability Report FY 2018-19 Stakeholder Group Method of Frequency of Key Sustainability Reference Pg. No. Engagement Engagement Concerns Identified
Employees Appraisal Annually Training & Development, 46,50 Occupational Health & Safety
Customers Customer Feedback Quarterly Regular Feedback 15
Suppliers Business Annually Health & Safety, 46,54 Partners Meet Green Practices Local Communities As Required Community Development, 55 infrastructure Development
The issues prioritized by our stakeholders substantively influence the assessments and were presented before the management decisions of stakeholders. The outcome was team which further discussed the other a list of 11 significant Material Topics that are relevant topics reflecting the relevant for the organization. The topics in organization’s significant economic, “high” Category are the most significant. environmental, and social impacts in These topics are covered in the report in addition to those topics which terms of data and DMA in various chapters.
Materiality Matrix
Diversity & Equal Opportunity Training & Development
Biodiversity Employment Local Communities Occupational Health & Safety Compliance
Importance for Stakeholder Importance Grievance Mechanism Economic Performance Emission Customer Health & Safety Energy Water Material Indirect Economic Impact
Anti-Competitive Behaviour
Supplier Assessment Customer Privacy Public Policy Marketing Communication Indirect Economic Impact
Importance for Business
High Medium Low A Strong Bond of Business & Life Sustainability Report FY 2018-19
24 from thevaluechainentitiesbutincludes contain anydataonthematerialtopics illustrated below.Thereportdoesn’t created acrossthevaluechainare The materialaspectsandtheirimpacts Local Communities Health &Safety Development Occupational Performance Employment Compliance Training & Economic Emission Material Energy Water Management) (Employees & Sagar Cements Impact acrossStakeholders Customers Sagar CementsplantatMattampally. The Topicboundariesarelimitedtothe wherever requiredtomanagethesame. the necessarymanagementprocedures Suppliers Community 25 A Strong Bond of Business & Life Sustainability Report FY 2018-19 Stewardship in ESG
Sagar Cements measures its performance We have extended our effort in our supply chain and on Environment, Social & Governance are encouraging our suppliers to adopt green criteria. It takes into account its impact on practices in their businesses. the environment and society while taking key decisions. In our endeavour to be a To develop a sustainable and environmental-friendly responsible corporate citizen, we have culture throughout the company, we have implemented various initiatives across implemented the GREENCO certification process our operations. across all the manufacturing units.
Improving energy efficiency is one of our key At Sagar Cements employees are encouraged to focus areas. We have implemented develop new skills through various internal and state-of-the-art technology to achieve external training programmes. We are making optimum efficiency. Significant investments conscious efforts to improve gender parity. have been made to reduce dependence on non-renewable sources of energy. Sagar Cements strongly believes that adherence to good corporate practice leads to transparency in its To reduce our emissions, we have planted operations and facilitates building a strong 4,23,739 trees in an area of about 210 relationship with all its stakeholders. hectares sequestering about 6,356 tons of
CO2 per year. The tree plantation and nursing The company from its very inception is voluntarily them is a continuous activity and we intend committed to practicing good corporate governance to add about 20,000 tree plantations in an enabling us to earn trust and goodwill of our investors, additional area of 15 hectares. business partners, employees and the community at large. Water conservation is another area of strategic priority. We are proud to claim that As a responsible organization, we adhere to all we are a water positive organization. applicable compliances and regulations. For Sagar Cements it is mandatory and non-negotiable. Senior We made conscious efforts and significant management regularly reviews and monitors the progress in the use of alternative raw status of compliance. materials, alternative fuels, and cementitious materials thereby preserving natural The details of our performance on ESG parameters
A Strong Bond of Business & Life Sustainability Report FY 2018-19 minerals. Our marketing efforts are also are available in subsequent chapters of this report. targeted towards promoting green products. 26 Economic Performance
The financial year 2018-19 (stand-alone significant extent, at least in the near future. including Bayyavaram unit) has been Further, these markets are witnessing heavy successful in terms of production, sale, competition resulting in wide fluctuations in revenue and average net sales realization the price thereby impacting the margins. per ton of cement. Total cement To mitigate this risk associated with the production was 24,20,567 MT. We have dependency on existing markets where the achieved an increase of 24.70% and 24.16% demand-supply gap is increasing, we are in the cement production and sales respectively in terms of volume over the looking for opportunities to expand our reach previous year. However, the EBDITA to central and eastern parts of the country as dropped to 12% from 18% in the previous demand for cement is expected to grow year. The reason being an increase in input relatively at a faster rate in those areas. costs and a marginal fall in the average Our expansion model will include setting up sales realization per ton of cement. of integrated cement plants/grinding stations. The current markets do not offer much scope to increase our sales volume to any A Strong Bond of Business & Life Sustainability Report FY 2018-19
27 Direct Economic Value Generated & Distributed (INR crore)
Particulars FY 2017-18 FY 2018-19
A. Direct Economic Value Generated
Revenues from Operations 776.01 902.01
Revenues from Other Sources 18.60 15.06
Total 794.61 917.07
B. Economic Value Distributed
Operating Expenses (Excluding Employee Wages and Benefits 643.85 794.78
Employee wages and benefits 44.94 52.00
Payment to providers of Capital 39.56 36.91
Payment to government: 16.41 8.74
Total 744.76 892.43
Economic Value Retained (A-B) 49.85 24.64
Particulars
Profit before tax 76.09 37.07
Profit after tax 49.39 26.62
Share Holding Pattern
Shareholding pattern as on 31st March 2019 Market Capialization 1,88,608 32% 2,00,000 1,62,190 1,33,396 44% 1,50,000 67,222 18% 1,00,000 51,332
50,000 28,690 6% - FY14 FY15 FY16 FY17 FY18 FY19 Rs (Lakhs) Individuals/Hindu Undivided Family Non-Institutions Cement sales: 2489033 MT Public Shareholding (Institutions) Total Revenue: 917.07 INR Crore Bodies Corporate (Indian) Debt & Equity Ratio: .20 A Strong Bond of Business & Life Sustainability Report FY 2018-19
28 Environmental Performance continue intothecoming years.Atthe cement. Thisgrowthstory islikelyto growth, thusdrivingupthedemandfor active roleinenablinginfrastructure government policiesandtheState’s this pushcomesbecauseoffavorable last fewyears.Infact,alargepartof has seenphenomenalgrowthinthe development ofthecountry.Thesector significant roleintheeconomic oldest sectorsinIndiaplayinga The cementindustryisoneofthe It iscertifiedforISO14001 :2015. environmental management system. The plantatMattampallyhasasound to limititsimpactsontheenvironment. organization hastakenvariousmeasures Sagar Cements,asaproactive material, energy,etc. including emissions,extractionofraw associated withenvironmentalimpacts sustainable ascementmanufacturingis same time,thegrowthmustbe
Figure 1: Plantation and Lawn near Coal Crusher Ramp 29 A Strong Bond of Business & Life Sustainability Report FY 2018-19 Raw Material
Cement manufacturing requires externally. State-of-the-art mining non-renewable raw materials with the equipment has been deployed at all our limestone being the primary raw mines for mineral extraction and material in addition to other materials development which is executed strictly such as clay, iron ore, etc. We have a following mining plans and schemes captive limestone mine near our plant approved by statutory authorities. The at Mattampally. The other raw raw material consumed at Mattampally materials including iron ore, bauxite, plant during FY 2018-19 is as follows: laterite, and gypsum are sourced
Particulars in MT 2016-17 2017-18 2018-19 Type of Material (Renewable/ Non Renewable)
Limestone 18,05,500 23,66,302 25,12,146 Non Renewable Al. Laterite 54,041 1,07,303 81,722 Non Renewable Dolamite 0 3,293 0 Non Renewable Laterite (Iron) 0 0 6,443 Non Renewable Iron Ore 33,819 26,947 37,111 Non Renewable Iron Sludge 0 778 4,751 by-product of pharmaceuticals Pond Fly ash 0 1,302 0 by-product of power plant Fossil fuel 1,73,208 2,01,308 2,05,390 Non Renewable ATF 1,219 426 3,320 by-product of pharmaceuticals Fly ash 1,60,047 1,75,497 1,89,690 by-product of power plant Phospho gypsum 39,521 36,654 60,500 by-product of Fertilizer plant Natural gypsum 17,708 18,500 10,687 Non Renewable Grease 8 9 9 Non Renewable Lubricant oils 47 59 65 Non Renewable Grinding Media 53 57 25 Non Renewable Refractory 1,034 1,012 680 Non Renewable Bags 1,982 2,160 2,229 Non Renewable Total 22,88,187 29,41,606 31,14,768
As a part of our conservation initiatives, To reduce/eliminate mining rejects, SCL we are using CBX, Ramco mine increases its Low grade limestone management software to blend the consumption significantly with each various types of low-grade limestone passing year by utilizing the high-grade with high-grade in required proportions coal/pet coke as a fuel for clinker to conserve the mineral. manufacturing. A Strong Bond of Business & Life Sustainability Report FY 2018-19
30 Energy
Cement industry being an The plant at Mattampally is based on energy-intensive industry, is heavily Dry Process Rotary Kiln Technology. dependent on two sources of energy i.e. The Mattampally plant uses 100% petcoke. Thermal and electricity for its processes. Thermal energy is used in the kiln, We have installed 1.25 MW Solar, 6.5/7.0 captive power plant, etc., whereas MW Waste Heat Recovery System (WHRS) electricity is primarily used for crushers, and 18.0 MW Thermal. WHRS helps serves grinding mills and for transporting a dual purpose—it is not only the materials. The potential for energy cheapest source of power generation, savings in the cement industry is but it also helps in reducing the carbon considerable. footprint. In addition we have included renewable energy in our energy mix Sagar Cements is using state-of-the-art including solar, hydel and wind energy. technologies to improve the energy The implementation of an energy efficiency of its processes. SCL is management policy has facilitated in implementing ISO 50001 system and is in improving energy efficiency. the process of obtaining Certification. A Strong Bond of Business & Life Sustainability Report FY 2018-19
31 S. No. Type of Energy Installed Capacity Location
Sagar Cement
1. Solar 1.25 MW Mattampally, Telangana 2. Solar 80 KW Corporate office, Hyderabad, Telangana 3. Hydel 4.3 MW Guntur, Andhra Pradesh 4. Hydel 4.0 MW Kurnool, Andhra Pradesh 5. Waste Heat Recovery System 6.5/7.0 MW Mattampally, Telangana 6. Thermal 18 MW Mattampally, Telangana (under implementation and expected to be commissioned by June 2019) Sagar Group Companies
7. Wind 4.65 MW Theni, Tamil Nadu 8. Wind 0.85 MW Satara, Maharashtra 9. Thermal 25 MW Gudipadu, Andhra Pradesh
Table 2: Installed Energy Capacity
We have also proposed an 11 MW solar power plant at our Plant in Mattampally. A Strong Bond of Business & Life Sustainability Report FY 2018-19
32 3% ofourrequirementwasmetby energy consumptionwas60,70,611.91GJ. During thereportingperiod,ourtotal kWh =0.0036 GJ 7. Thermal Energy Thermal 7. .Captive thermal 2. .Fo rd9,7.022,689.83 94,975.10 From Grid 1. 8. Thermal Energy Thermal 8. Hydel 3. .N.ElectricalEnergy No. S. oa lcrclEeg G)43,6.710,2.553,6.412,5.355,1.91,33,407.28 5,58,416.19 1,28,856.43 5,39,367.24 1,03,029.45 4,31,260.67 Total ElectricalEnergy(GJ) oa nrycnue G)452665 ,9,9.5588665 ,9,7.1587755 1,401,821.76 5,867,745.54 Table 3: TotalEnergyConsumption 1,397,270.91 5,848,696.59 1,097,194.45 4,592,636.54 Total Energyconsumed(GJ) Energy consumed Total Thermal 6. 5. 4. fuels(GJ) through fossil Gudipadu, AP Power Plantat Gpwr43 .41.546 03 2.47 10.35 4.69 19.65 1.04 4.36 DG power WHRS Solar fuels(GJ) through Alternate ,3,4.9 ,8802 ,0,8.2 127382 ,0,8.2 1,267,328.23 5,304,782.526 1,267,328.23 5,304,782.526 9,88,830.26 4,139,045.697 ,2588 9473 ,7920 1683 ,8138 59,291.86 2,48,183.85 61,618.34 2,57,922.05 79,437.35 3,32,508.87 ,6,7.799,6.0539393 ,6,1.8539393 1,268,414.48 5,309,329.35 1,268,414.48 5,309,329.35 9,94,165.00 4,161,375.87 .000 ,2.3832 ,0.91,076.21 35,377.48 1,48,083.07 4,504.79 23,131.97 843.29 96,825.81 3,529.83 0.00 0.00 0.00 0.00 ,7.5912 ,8.31450 ,7.32,263.99 9,476.63 1,405.07 5,881.33 901.23 3,772.35 2301 ,3.54568 ,8.54568 1,086.25 4,546.82 1,086.25 4,546.82 5,334.75 22,330.18 GJ 2016-17 Million KCal energy inthetotalmixhasincreased. percentage substitutionofrenewable/green renewable energy.Overtheyears ,5185 41,853.07 1,75,188.57 GJ 2017-18 Million KCal ,8175 35,395.26 1,48,157.50 GJ 2018-19 Million KCal 33 A Strong Bond of Business & Life Sustainability Report FY 2018-19 Total Energy ConsumptionTotal Energy (GJ) Consumption (GJ)
95.2 99.1 95.2 80.3 99.1 70.9 80.3 70.9
26.5 26.5 4.7 0.87 4.717.9 1.7 0.87 2.517.9 1.7 2.5 2015-16 2016-172015-162017-182016-172018-19 2017-18 2018-19
Renewable GreenRenewableNon RenewableGreen Non Renewable
Energy consumptionEnergy from consumption alternate sources from otheralternate than sources fossil fuels other than fossil fuels
1,60,000 1,60,000 1,40,000 1,40,000 1,20,000 1,20,000 1,00,000 1,00,000 1,48,083.07 1,48,083.07 80,000 80,000 40,000 40,000
20,000 20,000 96,825.81 96,825.81
10,000 10,000 9,476.63 9,476.63 5,881.33 5,881.33 4,504.79 4,504.79 3,772.35 3,772.35 3,529.83 3,529.83 19.65 19.65 10.35 10.35 - 4.36 - 4.36 2016-17 2017-182016-17 2017-182018-19 2018-19
Hydel Solar HydelWHRS SolarDG PowerWHRS DG Power
Table 4: RenewableTable Energy 4: Renewable Consumption Energy in GJ Consumption in GJ
Further to this SagarFurther Cements to this Sagar has utilized Cements have utilizedin the kilns of itsin cement the kilns plant. of its Usecement of plant. Use of waste materialswaste from materialsother industries from other as industriesalternate as fuel isalternate one of key fuel levers is one in of key levers in an alternate fuelan to alternate coal/pet-coke fuel to coal/pet-cokeburned burnedsustainable effortssustainable in cement efforts sector in cement sector
Some of our energySome conservation of our energy and conservation efficiency measuresand efficiency include: measures include:
Limestone LimestoneOne of the very firstOne companies of the very to adapt first companies to this method. to adapt By locatingto this method. the Limestone By locating the Limestone Crusher near mine, Crusherthe raw materialsnear mine, haulage the raw distance materials became haulage very distance minimal became thereby very minimal thereby Crusher locatedCrusher saving located the transport saving vehicle the fuels, transport minimizing vehicle the fuels, dust minimizing generation theby movingdust generation vehicles. by moving vehicles. in Mines in Mines
Limestone LimestoneThe Limestone crusherThe isLimestone placed below crusher the isground placed inside below the the pit. ground This arrangementinside the pit. is This arrangement is avoiding the constructionavoiding of the constructionramp, vehicles of climbingthe ramp, steep vehicles ramp climbing thereby steepsaving ramp thereby saving Crusher locatedCrusher fuel located and minimizing fuelthe andwear minimizing & tear of the the vehicles. wear & tear of the vehicles. A Strong Bond of Business & Life Sustainability Report FY 2018-19 in PitA Strong Bond of Business & Life Sustainability Report FY 2018-19 in Pit 34 34 Secondary Secondary Crushing operation is much more energy-efficient compared to grinding. The secondary crusher is installed to reduce the size of the limestone reaching grinding mill. Crusher for Crusher for This helped in the reduction of specific energy while increasing the out but from the mill. Limestone Limestone This way bi-dimensional benefit is achieved.
ON-LINE PromptON-LINE Prompt This instrument is the Bulk Material analyzer and is installed on the Limestone transport conveyor belt. It gives the complete elemental analysis of the Limestone gamma neutrongamma neutron moving on the conveyor. In combination with the PILE EXPERT software, it ensures activation activation that the pile is prepared just meeting the quality requirement of the desired product analysis analysis thereby helping proper blending of all grades of mineral and mineral conservation. With the help of this system and managing the fuel, all grades of minerals including (PGNAA) (PGNAA) overburden are used in the process and rejection of mineral is totally avoided. Analyzer Analyzer
Stage Stage SCL modified the Pre-heater system from 4 stage to 5 stage and again to 6 stage low-pressure drop high efficient cyclone system to reduce both electrical energy Pre-Heater Pre-Heater thermal energy consumption.
Static CoolerStatic Cooler One of the very first companies to install static grades in the clinker cooler plant. This helps in increasing the cooler recuperation efficiency and thereby reducing the specific fuel consumption.
CFD AnalysisCFD Analysis Advancement of software utilization in process simulation provided an attractive opportunity to study the dynamic behavior of various process equipment like Cyclones, separators, ducts, etc. One of the very first companies to make use of this technology. A significant reduction in specific electric energy is realized by making use of this software tool.
Automated Automated One of the very first companies in India to possess an ON-LINE ROBOT operated laboratory system. The whole process of product quality check, starting from collection of a Laboratory Laboratory representative sample, sample transport to laboratory, sample preparation, feeding to analytical equipment, receipt of results, analysis & treatment of results and consequent control of plant machinery in all sections of the manufacturing cycle is totally automated without any human intervention. This helps in very consistent quality benefiting the end-user with very minimum use of all resources like minerals, fuel, electricity and human resource.
Various other equipment’s such as VRPM for Clinker grinding, VFD for all process fans, etc. have been installed leading towards reduction in specific energy consumption. A Strong Bond of Business & Life Sustainability Report FY 2018-19
35 Emission
In cement manufacturing, air emissions Controlling Emissions: Dust, SO2 and NOx are generated by the usage and storage of intermediate and finishing SCL efforts are not just limited to materials, and by the process of kiln meeting the new stringent emission systems, clinker coolers, and mills. These standards but also to strive hard to emissions are immense because of the improve its performance beyond chemical process required in the compliance. To gear for various types manufacturing process. About of emission challenges imposed by the two-thirds of the polluting gases that regulatory body, number of measures come from cement production stem are being implemented across all from burning limestone. It is a significant operations to control stack emissions source of greenhouse gas emissions by replacing the conventional bag filter resulting in various environmental and with polytetrafluoroethylene (PTFE) health hazards. Emissions include coated filter bags in identified areas. nitrogen oxides, sulphur dioxides, particulate matter, greenhouse gases, SCL has already installed the latest and other air pollutants. generation Reverse Air Bag House (RABH) for the main stack to handle Kiln Sagar Cements is committed to reducing and Raw Mill (VRM) gases. the environmental impact of its operations including a reduction in GHG To control the emissions, SCL adopted emissions. Various measures have been NOx control pre-heater technology for implemented including usage of line-2 kiln, which creates a reduction alternate fuels, installation of atmosphere in a part of the PC duct by energy-efficient equipment, Green belt diverting the Tertiary Air partly and joins development, etc. In addition we also at below the gooseneck. NOx generated conduct awareness programmes for from main burner and PC burner travel employees. through reduction atmosphere and a reaction will take place resulting in the Maintaining a GHG inventory facilitates reduction of NOx compare to normal pre us in identifying areas of improvement. heaters. We measure and monitor Scope 1, scope 2 and scope 3 emissions. Where scope 3 The NOx, SOx emissions are within emissions include cement acceptable limits. transportation (road, rail, tanker), raw material receipts (road, rail, tanker), employee commute (two-wheeler). During the reporting period scope 1, scope 2 and scope 3 emissions were
13,74,788 MT CO2, 87,499 MT CO2, and
64,049 MT CO2 respectively. The emission intensity has reduced over the years. A Strong Bond of Business & Life Sustainability Report FY 2018-19
36 Emission intensity (tCO2/T of cement eq)
0.8
0.7 0.698 0.000 0.676 0.669 0.6
0.5 Scope 1 0.4 Scope 2 Axis Title 0.3 Scope 3 0.2
0.1 0.069 0.066 0.04 0.053 0.043 0 0.033 0.028 0.023 2015-16 2016-17 2017-18 2018-19
In line with Sustainability Development as compared to the base year 2014-15. target, SCL achieved reduction its net SCL plans to reduce its specific CO2 specific CO2 emissions per ton of emission by 15.77% by 2022-23. cement by 11.61% in target year of 2018-19
Some of our initiatives to reduce our carbon emissions include:
Reducing the Clinker Factor:
SCL has identified the key levers for the limestone mining, less crushing, less reduction in CO2 emissions that include grinding which are finally burnt in cement inter alia clinker substitution. SCL is kilns. Apart from this, there is also less fuel already utilizing 35% Fly ash in its PPC consumption which together result in production which is a max limit as per lower CO2 emissions. During the year BIS, as there is no scope to increase 2017-18, SCL utilized 175 thousand tons of further, SCL is also trying to increase its fly ash and targeted to use 61 thousand PPC share from existing 30% to further tones of performance improver (Crushed maximum possible extent by motivating Limestone) and 219 thousand tons of Fly Masons, Engineers, Builders, and Dealers, Ash during the year 2022-23, providing etc., by organizing public meetings. sustainable environment-friendly services to the nation. We expect to As a matter of fact, the production of enhance the overall share of blended blended Cement lowers the requirement Cement and thus lower the clinker factor of clinker, as some part of clinker is leading to lower specific CO2 emissions. replaced with fly ash or performance improvers at the final grinding stage. Lower clinker consumption leads to less A Strong Bond of Business & Life Sustainability Report FY 2018-19
37 Alternative Fuels & Raw Materials (AFR):
SCL has taken appropriate initiatives to the FY 2019, 2020, 2021, 2022 & 2023 replace part of fossil fuels by using respectively. We expect our TSR
alternative fuels to reduce CO2 emissions. percentage to increase in the long run, thus enabling the company to cut its The use of AFR essentially serves to move carbon footprint even further. away from dependence on fossil-based fuels and other mineral resources. The Adequate space for alternate Fuel company succeeded in co-processing storage has been provided at the site, 0.87%, 0.63%, 0.54% & 0.09% of TSR in FY with proper concrete floor, concrete walls 2015, 2016, 2017 & 2018 respectively. SCL and roofing, which enables prevention of targets to achieve 0.75 %, 1.0%, 1.5%, 2% and hazardous waste contaminating the 2.5% of Thermal Substitution Rate (TSR) in soil while handling.
Overall CO2 Reductions Achieved (Scope 1 & 2) 2018-19 2017-18 2016-17 2015-16
On Account of Thermal Savings1(Tonnes of CO2) 3,437 391 1,854 2,210
On Account of Electrical Savings2 (Tonnes of CO2) 39,638 25,672 Nil Nil
On Account of Clinker Factor Improvement3 (Tonnes of CO2) 48,099 23,334 35,412 Nil
Note:
• CO2 emission reductions on account of thermal energy are calculated value.
• CO2 Emission Factor (CO2 Baseline Database for the Indian Power Sector - Jun 2018- by Central Electricity Authority) was used
for calculating the CO2 emissions on account of electrical savings.
• CO2 emission reductions on account of clinker factor improvement are calculated by considering the CO2 emission factor
derived from CSI protocol V3. (GRI 302-4)
Logistics and Transport
This is one area that is responsible for tarpaulins prior to leaving cement plant
CO2 emissions mainly because of fuel premises in order to minimize dust consumption. To minimize the emissions pollution while trucks move on the roads. from transportation, SCL promotes SCL also promotes bulk transport of awareness programs among cement which is not only cost-effective transporters for regular maintenance of but also environment-friendly. Similarly, vehicles. SCL makes sure that cement rail movement is preferred for long trucks are de-dusted and covered in distances as a more sustainable mode. A Strong Bond of Business & Life Sustainability Report FY 2018-19
38 generated fromCPPisusedinPPC conserved effectively.Flyashwaste maintained andrawmaterialscanbe so thatcleanenvironmentcanbe BFs thenreinjectedbackintotheprocess is re-collectedbymeansofRABH,ESPand clinkerization, andcementgrindingprocess generated duringRawmealgrinding, In cementmanufacturingsolidwaste negative impactontheenvironment. adopt sustainablemeasurestoreduceour management policyencouragesusto viable technologies.Ourwaste the bestpossibleextentbymakinguseof i.e. toreduce,reuse,recycleandrecover a hierarchalapproachtomanagewaste non-hazardous wastes.Wehaveadopted manage bothhazardousand efficient wastemanagementsystemto Sagar Cementshasputinplacean Waste Management .Tr ca O 603. 403. SoldtoThirdParty 37.0 34.0 38.0 SoldtoThirdParty 36.0 NOS 273.8 and generatedfrom WHRprojectwork. PPScrap 1,031.7* * Metalscrapdisposed during2017-18iscomparatively highersideduetoaccumulation frompreviousyear Tyre Scrap 131.6 5. inCalcinerand Third Burning 417.4 4. 1,885 Office,In-House MT 1,348 BeltScrap 3. Metal Scrap 2. 938 1. 995 B -Total Non-HazardousWaste Disposed Kgs E-Waste 3. Waste Grease 2. 1. No. S. A -Total HazardousWaste Disposed Cotton Packing &Socked Waste LubricantsOil Type ofwaste T74754. 88SoldtoThirdParty 28.8 49.7 SoldtoThirdParty 7.5 7.3 7.4 MT 6.1 SoldtoAuthorizedAgencyfor 10.5 220 15.6 1,127 MT 0 713 Kgs MT 4.7 5.7 6.6 8.7 Burned inKiln Burned 8.7 6.6 5.7 4.7 MT Ltrs Unit 11,897 2015-16 12,514 2016-17 follows: The detailofthesolidwastegeneratedisas any hazardouswastetolandfills. a responsiblemannerandwedidnotsend and non-hazardouswastewasdisposedofin During thereportingperiod,bothhazardous wherever necessary. installing new/upgradingexistingSTPs new regulations,wearealsointheprocessof bodies oranywhereelse.Complyingwiththe discharge anyprocesseffluentinwater respect ofallouroperationsandwedonot At SCL,westrivefor“ZeroDischarge”statusin as perregulatoryguidelines. scrap isdisposedoffinresponsiblemanner& plant maintenancelikeusedoilandmetal manufacturing. Otherwastegeneratedfrom 22,101 2017-18 21,234 2018-19 Disposal/Reprocessing Agency Authorized External and OtherAreas/Soldto Re-used inReclaimer Chains Disposal Mechanism Party Sale Party 39 A Strong Bond of Business & Life Sustainability Report FY 2018-19 Being in the cement industry, it gives us encourage co-processing wherein we an opportunity to not only manage our utilize waste generated from industries waste but utilizes waste generated from such as pharma, steel, etc. into our other industries into our process. We processes.
S. No. Description Type of waste UOM 2015-16 2016-17 2017-18 2018-19
1. Solid Pharma waste Hazardous % 2.36 0.7 0.21 1.59 utilization to reduce fossil fuel (coal) consumption.
Water
Sagar Cements, since long is mindful of integrated water resource management critical importance of water for production plan. Some of the key features include process, employees, neighbourhood rainwater harvesting, recycling, and communities and to well being of all living reusing of treated water, etc. The bodies. By systematic and sustained company has a well-documented water efforts, company became water positive management policy acting as a guiding and wish to strive hard to keep improving further. With this self committed objective, tool towards efficient management of this the company has implemented an very critical resource.
Description UOM 2015-16 2016-17 2017-18 2018-19
Harvested Rain Water (KL) KL 2,14,342 1,59,989 1,56,381 1,71,614 (Consumed in Plant)
Bore well (KL) KL 25,462 47,738 89,603 88,929 (Domestic water consumption)
Water at Sagar Cements is required for gearboxes and for conditioning towers etc. industrial and domestic usage. 100% of During the reporting period from 2015-16 to industrial water requirement is met by 2018-19, specific water consumption has rainwater and underground water is utilized reduced from 0.17 to 0.14 KL / Ton of to fulfill the domestic requirement. Since the plant is based on dry process the water cement while net surplus water has
A Strong Bond of Business & Life Sustainability Report FY 2018-19 requirement is low. It is required to cool increased from 26,260 KL to 3,47,984 KL. bearings, compressors, after-coolers, 40 Figure 2:NetSurpluswaterinKl process internalspraying,roadwetting, treated waterforlowgradeuseslike installation ofsoftenerplant,STP,using measuring andmonitoringsystem, various measuresincludinganefficient water, SagarCementshasimplemented In itsendeavortoconserveandreuse Figure 3:WaterConsumption Total HarvestedWater(KL) 0.17 2015-16 2,66,064 2,39,804 26,260 2015-16 26,260 Total WaterConsumed(KL) 0.17 2016-17 3,67,085 2,07,727 1,59,358 2016-17 1,59,358 Net SurplusWater(KL) 2,58,700 2017-18 compared tothebaselineyear2015-16. by 39.74%duringtheyear2018-19 result, freshwaterconsumptionreduced programmes foremployees,etc.Asa horticulture, conductedawareness 0.14 2017-18 5,05,684 2,45,984 2,58,700 3,47,984 (KL/ tofCement) Specific WaterConsumpt 2018-19 0.14 2018-19 6,08,527 2,60,543 3,47,984 41 A Strong Bond of Business & Life Sustainability Report FY 2018-19 SCL aims to reduce its freshwater this objective we are focusing on the withdrawal by 30 % by 2030. To achieve following initiatives.
Conservation of water by rain harvesting Upgrading of in plant, mine, water-efficient colony and technologies sustainable and process water optimization harvesting where ever measures feasible
Zero liquid discharge through effective utilization of waste water treated in the sewage treatment plant
Life Cycle Analysis
The objectives of the study were: LCA evaluates the ecological impacts resulting from materials, manufacturing, • To monitor the environmental impacts usage, and disposal of a product. It caused due to the manufacturing of identifies environmental hotspots and various types of cement facilitates in improving the overall • Establish environmental profiles for sustainability of the product. OPC & PPC • To determine hot spots and key The study was conducted for our environmental parameters between products OPC and PPC respectively. It is cradle to gate operation in the in compliance with ISO 14044: manufacturing process Environmental management — Life cycle assessment standard. The scope • Compare the processes so as to establish the one with the least included from acquiring raw material i.e. potential environment impact mining of limestone till the packaging of the cement. • To understand the effect of alternate fuels in the fuel mix and its impact on the environment A Strong Bond of Business & Life Sustainability Report FY 2018-19
42 the typesoffuelusedinmanufacturing average valuesanditmaybedueto values werehigherthantheIndian was observedthatthegateto clinker withtheIndianaveragevalue,it On comparisonoftheresultsSagar’s 100% 10% 20% 30% 40% 50% 60% 70% 80% 90% 0% Acidification (fate not incl.)
Percentage 100 120 20 40 60 80
0 Eutrophication kg SO2eq/unit Acudufucatuib Global warming 100
64 (GWP 100a)
Photochemical Eutrophication
kg PO4... oxidation 100 eq/unit depletion (ODP)... 64 Ozone layer Impacts pertonofPPCVsOPC Abiotic depletion Global warming (GWP 100a) 100 eq/unit Impact Categories kg CO (optional) 64 2 Results g C2H4eq/unit Photochemical oxidation 100 Alloc Def, U Industrial machine,heavy, unspecified{GLO} |marketfor Petro leumcoke{GLO} |marketforAllocDef, U Sagar Hardcoal{ID}|marketforAllocDef, U Electricity, mediumvoltage{IN}|marketforAllocDef, U Refractory, basic,packed{GLO} |marketforAllocDef, U Sagar Bauxite,withoutwater{GLO} |marketforAllocDef, U Refractory, fireclay, packet{GLO} |marketforAllocDef, U impacts causedbytheproduct. aspects wouldhelptoreducethe equipment used.Bettermentofallthese materials andefficiencyofthe clinker, lessutilizationofalternateraw 64 depletion (ODP) Ozone layer g CFC-11 100 eq/unit 66 g sbeq/unit depletion 100 Abiotic 69 PPC OPC 43 A Strong Bond of Business & Life Sustainability Report FY 2018-19 Environmental impact reduction based on LCA (Carbon/Material/Water/Toxicity)
S. No. Impact Category Unit PPC OPC % Reduction of Impacts
1. Acidification (fate not incl.) kg SO2 eq 0.90 0.58 36 2. Eutrophication kg PO4 eq 0.17 0.11 36
3. Global Warming (GWP100a) kg CO2 eq 881.81 563.66 36
4. Photochemical Oxidation kg C2H4 eq 0.07 0.05 36
5. Ozone Layer Depletion kg CFC-11 eq 0.0000122 0.0000080 34 (ODP) (Optional)
6. Abiotic Depletion (Optional) kg Sb eq 0.000060 0.0000413 31
Some of the other projects executed based on LCA study and benefits realized are as follows: 1) Fly ash consumption in PPC increased from 31% to maximum limit of 35 % to conserve the clinker. 2) PPC production increased from 25 to 30% and further targeted to produce above 40% to conserve both electrical energy and thermal energy. 3) Refused Derived Fuel (RDF) fuel pumping system installed to increase the ATF consumption. 4) Alternative fuel consumption increased to improve thermal substitution rate (TSR) from 0.63% to 0.75 % further targeted to achieve 10 % in future. 5) Conducting of Energy audits by third party at every three year to identify the areas of energy losses and to take up the actions to improve.
GHG reduction by implementing following projects
S. No. Description UOM 2015-16 2016-17 2017-18 2018-19
1. Fly ash consumption MT 1,06,251 1,60,047 1,75,497 1,89,690
2. Performance improver MT 0 0 0 11,683 consumption in OPC
3. Total consumption MT 1,06,251 1,60,047 1,75,497 2,01,373
4. Specific GHG Emission kg CO2/t clinker 789.53 780.84 780.42 787.13 (Scope-1&2)
5. CO2 Reduction due to t/year 83,888 1,24,971 1,36,961 1,58,506 Mineral Components (MIC) A Strong Bond of Business & Life Sustainability Report FY 2018-19
44 Biodiversity
SCL understands its mining footprint around our quarry sites, manufacturing and takes every possible measure in units, residential colonies, and nearby preserving the biodiversity of the area. villages. As a result, the area has become We follow sustainable mining practices the best nesting and breeding habitats including controlled blasting to reduce for migratory and local avifauna. dust and noise, planting native species, controlling our emissions, etc. Further Strategy to mitigate the impact of mining we continue to work passionately to on Biodiversity. enhance the green spread in and
Before mining begins During the life of mine When the mines are use strategic offset any unavoidable closed, we rehabilitate assessments that look at impacts on biodiversity mine sites not just to re biodiversity impacts by supporting establish vegetation caused by regional conservation activities cover but, to develop a developments elsewhere in the region self-sustaining ecosystem that interacts positively with the surrounding landscape
SCL has been mining SCL has conducted a 3rd party assessment of SCL has developed a sump Limestone for the past the mining area before the commencement of in the bottom benches in 35 years. Our plant and mines the project. the mine for storing the follow comprehensive plans rainwater. When the mineral and undertake rehabilitation Tree Plantation: Our plantation activities focus on is exhausted proposals will planting native and local species best suited to of available areas of mines be made to develop a the local ecology. and by supporting the self-sustaining ecosystem conservation activities Rainwater Harvesting: SCL has constructed like aquaculture that elsewhere in order to protect about 49 rainwater harvesting pits in the mines, interacts positively with the the biodiversity and nature plant and colony areas to recharge the surrounding landscape. around. groundwater. Apart from the above, bottom benches of the mine pit has developed to harvest the rainwater which helped to enhance the self-sufficiency of water for the plant.
Top Soil Preservation and Utilization: Black Cotton Soil present in the top benches 1 – 2
mtrs is being used for making bed for plantation. A Strong Bond of Business & Life Sustainability Report FY 2018-19 45 Occupational Health & Safety
Sagar Cements gives paramount associated with each such hazard importance to providing a healthy thereby taking preventive measures and safe working environment to its wherever applicable. In case of an employees. A culture of safety is incident, we have implemented a quick promoted by our top management response system, where the incident is that flows down the hierarchy and investigated with 48 hrs. Innovative each employee has imbibed this in its solutions have been implemented to workplace. The presence of a prevent a prospective hazard e.g. to dedicated HSE policy further bolsters avoid fugitive dust emission, we have our commitment towards safety. installed air filter cleaning arrangements, automatic water sprinklers, etc. In the cement manufacturing plant, workers are exposed to various safety In addition, the plant is also certified to hazards due to operating heavy international standard ISO 45001. machinery, exposure to chemicals, etc. They are susceptible to various We have constituted a dedicated safety diseases related to eye, skin and Lungs. committee which is spearheaded by the Therefore it becomes important to take Chairman. The prime responsibility is to preventive measures to ensure a safe oversee the occupational health and workplace. We have conducted a safety aspects of the workplace. The detailed audit to identify various committee has an equal representation hazards across the plant and risks of management and workers. A Strong Bond of Business & Life Sustainability Report FY 2018-19
46 Following are objectives of the Safety committee:
• To identify and suggest control measures for the hazards in their department /sections. • To suggest improvements/modifications, if any, to ensure safe working conditions. • To identify the requirement of any specific personal protective equipment and suggest steps for the procurement. • Review of corrective and preventive actions regarding accidents/incidents in the concerned departments. • Review and upkeep of internal housekeeping. • General review of occupational health and hygiene of the employees. • Review of environmental pollution and control measures. A Strong Bond of Business & Life Sustainability Report FY 2018-19
47 Senior Management at SCL is equally Events such as these have significantly involved in maintaining a safe working improved our safety performance. In line culture. They interact directly with the with this, we have also introduced toolbox shop floor personnel, and discuss a talk, periodic trainings, gate safety meets, prospective hazard at their workplace. and motivational programs.
2016-17 2017-18 2018-19
S. No. Particulars On Roll Contractual On Roll Contractual On Roll Contractual Employees Employees Employees
1. Fatalities 0 0 0 0 0 0
2. LTIFR 0 1.4 0 0.84 1.6 1.94
3. Injury Rate 0 4.04 0 4.88 4.67 5.696
4. Man-day Lost Day Rate 0 0.562 0 1,019.08 0.64 0.77
5. Absentee Rate 1.62 4.1 1.54 3.95 1.2 3.6
6. First Aid cases 0 11 5 29 3 16
7. Occupational Health Rate 0 0 0 0 0 0
Table 9: Occupational Health & Safety data
A number of training programmes related to handling specific chemicals, materials, first-aid, emergency response, etc. are conducted. A Strong Bond of Business & Life Sustainability Report FY 2018-19
48 examined everysixmonths. hazardous conditions.Theyare specifically thosewhoareexposedto the healthofouremployees health careinneed.Further,wemonitor first aidkits,etc.ensuresaccessible centers, ambulance,traineddoctors, Well-equipped occupationalhealth facilities forouremployees. availability ofthebesthealthcare topmost priority.Weensurethe The healthofouremployeesis Occupational Health ideas aresuitablyrewarded. appreciated fortheirefforts.Innovative valued fortheircontributionandare company culture.Eachemployeeis Employee recognitionisapartofour Recognition 49 A Strong Bond of Business & Life Sustainability Report FY 2018-19 People Performance
Sagar Cements takes pride in its Their perspectives, ideas, and solutions diverse workforce, as it is their are respected and valued. We have a dedication and commitment that has family of 827 talented individuals who taken the organization forward. The are working diligently to meet company has a strong value system customer requirements. where each employee is given an equal opportunity to grow.
Employee Category Employees during the Reporting Period by Age Group and Gender (2018-19)
< 30 30-50 >50
F M F M F M
Executives 0 10 0 98 0 28
Staff 0 7 0 25 0 13
Workmen 0 3 0 54 0 17
Trainees 0 15 0 2 0 0
Contract Workmen 0 242 4 278 0 31
Total 0 277 4 457 0 89
Table 5: Total Workforce
During the reporting period, 15 the same time, 19 employees bid adieu to employees joined the organization. At pursue their career goals and aspirations. A Strong Bond of Business & Life Sustainability Report FY 2018-19
50 Employee Category New Hires during the Reporting Period by Age group & Gender 2018-19 < 30 30-50 >50 F M F M F M Executives 0 1 0 4 0 3 Staff 0 0 0 1 0 0 Workmen 0 0 0 3 0 0
Trainees 0 3 0 0 0 0 Total 00 04 00 08 00 03
Table 6: No. of Employees joined the organization
Employee Category Employees Leaving during the Reporting Period by Age Group and Gender 2018-19
< 30 30-50 >50 F M F M F M
Executives 0 00 0 05 0 06
Staff 0 0 0 02 0 03
Workmen 0 0 0 0 0 02
Trainees 0 01 0 0 0 0
Total 00 01 00 07 00 11
Table 7: No. of Employees resigned from the organization
We lack diversity in terms of gender due Freedom of Association to various factors such as the nature of the business, location, etc. However, we 100% of the non-management staff, are working to incorporate female Shop Floor and Office associates employees in other functions such as categories are unionized employees. administration at our corporate office. The management ensures their Appraisals provide the opportunity to participation in all the management recognize and reward employees and to decisions and events and accordingly ensure they feel valued for the work that updates them on major decisions as they do. During the reporting period, well as operational changes. The trade 100% of our on roll employees went unions are used as a platform for through the appraisal process. constructive dialogue. A Strong Bond of Business & Life Sustainability Report FY 2018-19
51 Education and Training
Sagar Cements has adopted a holistic approach for employee development. Various training programmes are organized to hone their skills and keep them abreast of the latest developments in the industry. In addition, employees are encouraged to attend specific training programmes organized by other organizations to develop technical capabilities and financial support is provided for the same. During the reporting period, workshops on issues such as energy efficiency, waste management, fire safety, etc. were conducted.
Work Life Balance
SCL lays emphasis on maintaining a healthy work-life balance. It serves a dual purpose of improving productivity and hence boosts employee morale. We have initiated a number of programmes to ensure that our employees have high work satisfaction, such as family health care, availability of essential services including school, market etc.in the township premise, recreational clubs as a means to reduce stress, Leisure tours at a nominal cost, etc. A Strong Bond of Business & Life Sustainability Report FY 2018-19
52 Total categories) (*maintain same Employee Category Contract Workmen Staff &Workmen Executives Table 8:Avg.traininghoursperemployee family pensionschemewhereevery organization. Furthertothis,wehavea of yearshisassociationwiththe The amountvariesasperthenumber granted toanemployeeonretirement. benefits, anassuredsumofmoneyis after retirement.Inadditiontoretirement during theirperiodofservicebutalso We supportouremployeesnotonly personal accidentinsurancescheme. a groupmediclaimpolicyand All employeeson-rollarecoveredunder special needsoftheemployee,etc. health, retirement,loanstomeetthe attractive schemescoveringeducation, regular employeesbenefitfrom In additiontocompetitivesalaries, Employee Welfare 8596 1990 1729 4858 Male Training Hours 0 0 0 0 Female Male 827 555 119 153 Total Employees time orpermanentstaff. social welfarelegislationsalongwithfull But theydogetcoveredundervarious compare wellwithlocalmarketpractice. permanent staff,thoughtheirbenefits receive thesamebenefitsasfull-timeor Temporary orpart-timestaffdonot run bytheCompanyinitspremises. school andotherrecreationalactivities services includingahealthcarecentre, accommodation facilityalongwithother Mattampally areprovidedwithadecent Employees stationedatourplantin receive monthlypensiononretirement service of10yearsunderFPS,1995will employee whocompletedeligibility Female 0 0 0 0 10.39 3.59 14.50 31.75 employee male hour per training Average - - - - employee female hour per training Average 10.39 3.59 14.50 31.75 2018-19 hours training Average Total 53 A Strong Bond of Business & Life Sustainability Report FY 2018-19 Supply Chain Management
An effective supply chain management Further, we work towards reducing the can reduce environmental degradation environmental impact across our supply and production costs. It can also spur chain. A number of initiatives have been economic growth, create a competitive implemented. Some of them include: advantage in terms of greater customer satisfaction, positive image, reputation • Increase in bulk transport ratio and provide better business opportunities. • Use of an alternate mode of transport (Rail is given priority over the road) Sagar Cements works closely with its suppliers on various issues including • Promoting the use of environment-friendly energy efficiency, waste management, packing materials. Increase the use of resource conservation, health, and safety, Non-HDPE Bags for product packing. etc. Our green procurement policy applies • Purchasing better quality materials only to all our suppliers. We give priority to those which are expected to give longer life. suppliers & dealers who have integrated • Reducing the transport distance of good environmental and social practices materials procurement and product into their operations while maintaining the sales etc. quality of the product. Our critical suppliers are expected to follow sustainable practices.
We conduct various training programmes to build the capacity of the suppliers. These programmes are conducted in their premises by Sagar cement experts or are outsourced to external experts. They are encouraged to implement green practices including the use of renewable energy, rainwater harvesting, etc. and are A Strong Bond of Business & Life Sustainability Report FY 2018-19 rewarded for their actions. 54 Social Performance Itlooksforwardtocollaborating with • Itbelievesthatgrowthand • Toconduct itsoperationswith • following principles: CSR policy.SCL'sPolicyisguidedbythe projects whoseactionsareguidedbythe identification andimplementationofvarious The CSRcommitteeisresponsibleforthe procedure tomonitoritsCSRactivities. The companyhasastructuredgovernance impact ofouroperations. reducing thenegativeenvironmental create apositivesocialimpactwhile initiatives aredesignedwithanobjectiveto disadvantaged groupofthesociety.Our value forstakeholdersspecificallythe social responsibilityisatooltocreate Sagar Cementsunderstandsthatcorporate faced bysociety. Distributors to tacklethechallenges Governments, NGOs,Suppliers,and different stakeholdersincluding and hand. environment shouldgo in hand view theinterestofallitsstakeholders. integrity andresponsibility,keepingin 55 A Strong Bond of Business & Life Sustainability Report FY 2018-19 Education Our focus areas remain sports, education, health, etc. During the reporting period, we spent Rs. 121.59 Lakh on various projects including preventive healthcare, CSR Focus Rural sanitation, availability of Health areas Development portable drinking water, promotion of educational infrastructure, development of rural infrastructure and organizing sports events. All our programmes were Sports limited to local areas of Nalgonda Dist, Telangana.
Education
We provide quality education at no cost of Sagar Vidya Vihar. In addition, we to children of daily working labours from also support various government-run surrounding villages through our schools with amenities such as utensils, educational institution under the name furniture, etc. A Strong Bond of Business & Life Sustainability Report FY 2018-19
56 Skill Development by SagarCements. these plantsaremaintained approx. 3000families.Further Gram panchayatbenefiting Pedaveedu &Mattampally 1000 LPHRoWaterplantin Cements hasinstalledtwo Considering thesame,Sagar leading tovariousdiseases. has highfluoridecontent Suryapet Districtasthearea is achallenge,specificallyin Availability ofportablewater Safe drinkingwaterandirrigation along withastipend. educated youthunderitsCSRInitiatives skills developmentprogrammeto SCL providestwoyearsofemployability employment inotherindustries. Most ofourtrainedyouthareabletoget exposure, on-jobtraining,andsoftskills. The focusisonprovidingindustrial 57 A Strong Bond of Business & Life Sustainability Report FY 2018-19 Lift Irrigation
In our surrounding communities, 70 % of the population earns their livelihood through agricultural activities. However, due to the unavailability of mechanisms to channel river water for irrigation, farmers faced water issues. Considering this Government of Telangana has constructed Lift Irrigation for channeling the water for agriculture. Despite this effort, several issues related to operation and maintenance surfaced, as a result, the farming community suffered and migration to urban areas increased.
SCL through the lift irrigation committee took the initiative and assured the farming community of its support to the project. The company has facilitated the maintenance of the project which has become the heart for paddy cultivation by the farmers.
As a result, there is an average of INR 4,000 per month increase in income of beneficiary farmers and simultaneously there was less migration to urban areas. A Strong Bond of Business & Life Sustainability Report FY 2018-19
58 development throughtheconstruction SCL hassupportedinfrastructure Infrastructure Development bus shelters,watertanks,etc. of roads,drainagesystems,streetlights, 59 A Strong Bond of Business & Life Sustainability Report FY 2018-19 Assurance Statement
ΠΡΟΣ ΕΘΝΙΚΗ ΤΡΑΠΕΖΑ
Independent Assurance Statement
Introduction Libero Assurance (Libero’), has been entrusted by the management of Sagar Cements Limited (SCL, the Company), to conduct independent assurance of SCL Financial year 2018-19 Sustainability Report, (the report) for its India operations. All contractual contents of this assurance agreement rest entirely within the responsibility of SCL. Our task was to give fair and adequate judgement on the SCL Report. This assurance engagement is based on the assumption that the data and information provided to us is authentic and complete. The intended users of this assurance statement are stakeholders having relevance to SCL’s overall sustainability performance and impact of its business activities during 1st April 2018-31st March 2019. Libero Assurance (the Agency), headquartered at Greece, is an international certification body accredited by two Accreditation bodies, IAS (USA based) and E.SY.D. (EU based). The agency has experienced and qualified professionals in the field of quality, sustainability services and environment. We maintained complete impartiality and independence during the assurance engagement and were not involved the preparation of report contents.
Assurance Standard The independent Assurance was carried out generally in accordance with the Global Reporting Initiative (GRI) Standard (2016) “In Accordance-Core”, AccountAbility, U.K Standard AA1000AS (2008) with 2018 addendum, AA1000AP (2018) and AA1000SES (2015)
Scope, Boundary and Limitations of Assurance The scope of the assurance includes the verification of the content of the Report, prepared based on GRI Standard “in accordance-Core”. In particular the assurance covers following: • Verification of the application of the Report content, principles set out in GRI Standards and quality of information presented in the Report covering reporting period from 1 April 2018 to 31 March 2019; • Review of the disclosures with respect to policies, initiatives, practices and performance described in the Report; • Review of the Report against the requirements of Type 1, Moderate level assurance based on Accountability’s Assurance Standard AA1000AS (2018); The reporting boundary is as set out in the Report, covering sustainability performance of Sagar Cements Limited. During the assurance process, we did not come across limitations to the scope of the agreed assurance engagement. No external stakeholders were interviewed as part of this assurance engagement. The assurance was based on the data provided in the report, online meetings and documents provided by the company, assuming they are true and complete.
Verification Methodology Libero Assurance challenged the report contents and assess the process undertaken by SCL from source to aggregate in disclosure of information/data related to their sustainability performance.
A Strong Bond of Business & Life Sustainability Report FY 2018-19 Our judgement is based on the objective view of reported information as per criteria defined under Assurance standards. 60 reflected intheReport. its policiesandmanagementsystems,allocationofresourcesincludinggovernanceasfairly Responsiveness: WeconsiderthattheCompany’sresponsetokeystakeholderconcerns,through issues areadequatelycoveredintheReport. Materiality: TheCompanyhasreporteditsmaterialissuesofsignificance.identified channels werefairlycollectedandprioritized,theresultsarereflectedinReport. developing thisreport,materialissuesthatemergedfromstakeholderconsultationthroughvarious issues throughdifferentchannels.Although,nospecificconsultationwasdoneforthepurposeof Inclusivity: TheCompanyengagesindirectdialoguewithkeystakeholderstoidentifyemerging to aconclusionmentionedbelow: We areoftheopinionthatourworkoffersasufficientandsubstantiatedbasistoenableuscome Conductedinterviewsonlinewithkeyrepresentativesincludingdataownersand • Examinedandrevieweddocuments,dataotherinformationmadeavailable; • Verifiedthesustainability-relatedstatementsandclaimsmadeinReportassessed • identified issuesofhighmaterialrelevancetoCompany’sbusinessanditsstakeholders. the materialissuesofcompany,weadoptedarisk-basedapproachandverifiedeffortson correctness ofreporteddataandcontentsinlightthecontractualagreement.Forunderstanding We usedanalyticalmethodsandtheperformanceofinterviewstoverifyvalidate 15 Lead Verifier Gayathri R. For LiberoAssurance, - Management planandtargetfornext3-5yearscanbeincludedinreportwithmoredetails. - Opportunities forFurtherImprovement CSR activitieswiththecommunitybyprovidingjobs,drinkingwater,doctoradvice,educationon - - Life cycleanalysisoftheproducttounderstandimpactsinvariousphaseslifecycle - Positive Observations presents afaithfuldescriptionoftheCompany’ssustainabilityactivities. demonstrate theoriginandinterpretationofdataitsreliability.WeobservedthatReport data includedintheReportwasfoundtobeidentifiable.Thepersonnelresponsiblewereable for itssustainabilityperformancereportingtobeappropriateandthequalitativequantitative We considerthemethodologyandprocessesforgatheringinformationdevelopedbyCompany Specific evaluationoftheinformationonSustainabilityPerformances th &16 decision-makers fromdifferentfunctions; robustness ofthedatamanagementsystem,informationflowandcontrols; Management approachcanbemadeclearbygiving processdetails Sagar CementsLimited. rainwater harvesting,wastesegregationandproject forutilizingthewasteinprocessof Strong thrustfromoneandall,withintheOrganization, onSustainableDevelopment th May2020 61 A Strong Bond of Business & Life Sustainability Report FY 2018-19 GRI Index
GRI Standard Disclosure Disclosure Page no. 2016
Organization Profile
102-1 Name of the Organization 3
102-2 Activities, Brands, Products, and Services 12-15
102-3 Location of Headquarters Back Cover
102-4 Location of Operations 13
102-5 Ownership and Legal form 12,28
102-6 Markets Served 13
102-7 Scale of the Organization 6, 13, 50, 28
102-8 Information on Employees and other Workers 50
102-9 Supply Chain 54
102-10 Significant Changes to the Organization and its Supply Chain No Significant Changes have been Made
102-11 Precautionary Principle or Approach 21
102-12 External Initiatives Doesn’t Subscribes to Externally Developed Charters
102-13 Membership of Associations 62
Strategy
102-14 Statement from Senior Decision-maker 10-11
Ethics and Integrity
102-16 Values, Principles, Standards, and Norms of Behavior 22
Governance
102-18 Governance Structure 19-20 A Strong Bond of Business & Life Sustainability Report FY 2018-19
62 GRI Standard Disclosure Disclosure Page no. 2016
Stakeholder Engagement
102-40 List of Stakeholder Groups 23
102-41 Collective Bargaining Agreement 51
102-42 Identifying and Selecting Stakeholders 23
102-43 Approach to Stakeholder Engagement 23
102-44 Key Topics and Concerns Raised 24
Reporting Practice
102-45 Entities Included in the Consolidated Financial Statements 3, 12
102-46 Defining Report Content and Topic Boundaries 24
102-47 List of Material Topics 24
102-48 Restatements of Information 3
102-49 Changes in Reporting This is the First Report
102-50 Reporting Period 3
102-51 Date of Most Recent Report This is the First Report
102-52 Reporting Cycle 3
102-53 Contact Point for Questions Regarding the Report 3
102-54 Claims of Reporting in Accordance with the GRI Standards 3
102-55 GRI Content Index 62
102-56 External Assurance 60 A Strong Bond of Business & Life Sustainability Report FY 2018-19
63 Material Topic Disclosure Page No.s
Economic
103-1 Explanation of the Material Topic 24-25 and its Boundaries
GRI 103: Management GRI 103-2: The Management Approach 27 Approach 2016 and its Components
GRI 103-3: Evaluation of the 27 Management Approach
GRI 201: Economic Disclosure 201-1 Direct Economic 28 Performance 2016 Value Generated and Distributed
103-1 Explanation of the Material Topic 24-25 and its Boundaries
GRI 103: Management GRI 103-2: The Management Approach 30 Approach 2016 and its Components
GRI 103-3: Evaluation of the 30 Management Approach
GRI 301: Materials Disclosure 301-1: Materials Used by 30 2016 Weight or Volume
103-1 Explanation of the Material Topic 24-25 and its Boundaries
GRI 103: Management GRI 103-2: The Management Approach 31 Approach 2016 and its Components
GRI 103-3: Evaluation of the 31 Management Approach
GRI 302: Energy 2016 Disclosure 302-1 Energy Consumption 31-33 within the Organization
103-1 Explanation of the Material Topic 24-25 and its Boundaries
GRI 103: Management GRI 103-2: The Management Approach 40-41 Approach 2016 and its Components
GRI 103-3: Evaluation of the 40-41 A Strong Bond of Business & Life Sustainability Report FY 2018-19 Management Approach 64 2016 GRI 401:Employment Approach 2016 GRI 103:Management Compliance 2016 GRI 307:Environmental Approach 2016 GRI 103:Management GRI 303:Water 2016 Material Topic Health &Safety2016 GRI 403:Occupational Approach 2016 GRI 103:Management by ageGroup,Gender, andRegion new EmployeeHiresandTurnover Disclosure 401-1Total NumberandRates of Management Approach GRI 103-3:Evaluationofthe and itsComponents GRI 103-2:TheManagementApproach and itsBoundaries 103-1 ExplanationoftheMaterialTopic Environmental LawsandRregulations Disclosure 307-1Non-compliancewith Management Approach GRI 103-3:Evaluationofthe and itsComponents GRI 103-2:TheManagementApproach and itsBoundaries 103-1 ExplanationoftheMaterialTopic by Source Disclosure 303-1Water Withdrawl Disclosure Work-related Fatalities and Absenteeism,Number of of Injury, OccupationalDiseases,LostDays, Disclosure 403-2Types andRates ofInjury Management Approach GRI 103-3:Evaluationofthe and itsComponents GRI 103-2:TheManagementApproach and itsBoundaries 103-1 ExplanationoftheMaterialTopic 50-51 50-51 50-51 24-25 21 21 21 24-25 40-41 46-49 46-49 46-49 24-25 Page No.s 65 A Strong Bond of Business & Life Sustainability Report FY 2018-19 Material Topic Disclosure Page No.s
Training and Education
103-1 Explanation of the Material Topic 24-25 and its Boundaries
GRI 103: Management GRI 103-2: The Management Approach 50-53 Approach 2016 and its Components
GRI 103-3: Evaluation of the 50-53 Management Approach
Disclosure 404-1 Average Hours of 53 GRI 404: Training and Training per year per Employee Education 2016 Disclosure 404-3 Percentage of Employees 51 Receiving Regular Performance and career Development Reviews
Local Communities
103-1 Explanation of the Material Topic 24-25 and its Boundaries
GRI 103: Management GRI 103-2: The Management Approach 55-59 Approach 2016 and its Components
GRI 103-3: Evaluation of the 55-59 Management Approach
GRI 413: Local Disclosure 413-1 Operations with Local 55-59 Communities 2016 Community Engagement, Impact Assessments, and Development Programs
Socioeconomic Compliance
103-1 Explanation of the Material Topic 24-25 and its Boundaries
GRI 103: Management GRI 103-2: The Management Approach 21 Approach 2016 and its Components
GRI 103-3: Evaluation of the 21 Management Approach
GRI 419: Socioeconomic Disclosure 419-1 Non-compliance with Laws and 21 Compliance 2016 Regulations in the Social and Economic Area A Strong Bond of Business & Life Sustainability Report FY 2018-19
66 Abbreviations
MT : Metric tonne TPA : Tonnes per annum MTPA : Million Tonnes per annum mn Tonnes : Million tonnes TPD : Tonnes per day C : Centigrade KJoule/Kg : Kilojoule per kilogram KCal : Kilocalories KCal/Kg : Kilocalories per kilogram TCO2e : Tonne of CO2 equivalent TCO2e/Ton : Tonne of CO2 equivalent per tonne J : Joules KJoule/Kg : Kilo Joules per kilogram GJ : Giga Joules KL : Kilo liters KWh : Kilo watt hour MW : Mega watts LTIFR : Lost time Injury frequency rate ISO : International organisation for Standardization TSR : Thermal substitution Rate Ltrs : Litres Kgs : Kilograms OPC : Ordinary Portland Cement PPC : Portland Pozzalana Cement eq : Equivalent
Conversion Factors Memberships
1 kWh 0.0036 GJ Confederation of Indian Industry
1 kCal 4.18 kJ Federation of Telangana and Andhra Pradesh 1 J 1 W-Sec Chambers of Commerce and Industry. Corporate and Registered Office: Sagar Cements Ltd. Plot No. 111, Road No. 10 Jubilee Hills, Hyderabad - 500 033