F ) SAGAR CEMEN S IM ED
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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 ESG HighlightsESG Highlights 18,14,61518,14,615 MT MT Rs. 121.59Rs. Lakh 121.59 Lakh Cement Cement Spent on Spent on 17,46,589 MT CSR ActivitiesCSR Activities Clinker Produced 17,46,589 MT 29.03% of the Total Clinker Produced Energy Requirement is Met from Green Energy 100% Industrial 29.03% of the Total 100% IndustrialWater Requirement0% HazardousEnergy Requirement is Water RequirementMet by Rainwater Waste to LandfillMet from Green Energy Met by Rainwater 7.80% Reduction7.80% Reduction Zero Hazardous in Specificin Power Specific Power Waste to Landfill ConsumptionConsumption as as ComparedCompared to the to the Base YearBase 2015-16 Year 2015-16 A Strong Bond of Business & Life Sustainability Report FY 2018-19 A Strong Bond of Business & Life Sustainability Report FY 2018-19 06 06 Emission Intensity 4.10% Reduction in tCO2e/T of Cement eq. Direct GHG Intensity Scope 1 : 0.669 (Scope 1/ton of Cement) viz. FY 16 Scope 2 : 0.043 Scope 3 : 0.025 39.74% Conducted LCA for Reduced Freshwater OPC & PPC Consumption viz. FY 16 35% of Fly ash Green & Renewable Energy which is Maximum as per Generated & Consumed: BIS Specification is used Waste Heat Recovery: 26.52% as an Alternative Solar Power: 0.81% to Clinker Mini Hydro Power: 1.70% A Strong Bond of Business & Life Sustainability Report FY 2018-19 A Strong Bond of Business & Life Sustainability Report FY 2018-19 07 07 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 3.65% 3.65% 11.10% 11.10% AlternativeAlternative Raw Raw AlternativeAlternative to to MaterialsMaterials at at the ClinkerClinker at the at the Raw MealRaw Stage Meal Stage CementCement Stage Stage 85% 85% Zero Zero Clinker Clinkerto to FatalitiesFatalities (directly (directly CementCement employed)employed) Zero Zero 1.81 1.81 FatalitiesFatalities (indirectly (indirectlyLTIFR LTIFR employed)employed) 3 3 Lost TimeLost Injuries Time Injuries A Strong Bond of Business & Life Sustainability Report FY 2018-19 A Strong Bond of Business & Life Sustainability Report FY 2018-19 09 09 Message from Chairman We started our journey with the production of cement in the year 1985 with a mission to create value for all our stakeholders. Since then we have followed a path of growth which is inclusive. In all these years, sustainability and social responsibility have always been an integral element of Sagar Cement’s corporate strategy. A Strong Bond of Business & Life Sustainability Report FY 2018-19 10 Dear Stakeholders, conservation, renewable energy, GHG mitigation, water management, etc. It is with great pride that I bring to you Further to this, we also conducted in-depth Sagar Cement Limited’s first Sustainability resource efficiency studies: Thermal and Report for FY 2018-19. This report, developed Electrical in our cement manufacturing as a proactive disclosure of our triple facility located in Mattampally, Telangana. bottom line initiatives, is the first such As a result, we explored various resource report being presented by the company. efficiency opportunities and GHG emission reduction potential. We are confident that We started our journey with the production we will reduce our carbon footprint and of cement in the year 1985 with a mission increase our efficiency in the near future. to create value for all our stakeholders. We have also drafted our Sustainability Since then we have followed a path of Policy, which will act as a guiding tool for growth which is inclusive. In all these years, our future endeavors towards Sustainable sustainability and social responsibility have development. always been an integral element of Sagar Cement’s corporate strategy. We are committed to building a responsible and sustainable business. At Sagar Cements today, the agenda is to Under our Community development achieve Environmental, Social and programme, we work in the area of Economic sustainability. Various initiatives Capacity Building, Education, promotion are being deployed to enhance of Sports and rural development. We will operational performance, create value for continue our efforts in building self-reliant stakeholders, improve quality systems, communities in the years to come. For us, Customer satisfaction, to develop and CSR is a tool for value creation rather than retain talent. We deploy state of the art an act of philanthropy. technologies to provide our customers with a high-quality product and at the same We will continue to monitor, manage and time managing our environmental and communicate our Sustainability social footprint. Our growth parameters are performance to our stakeholders. not limited to profits but include the growth I thank our stakeholders for supporting us of our employees & society at large. in our journey towards sustainability. In the financial year 2018-19, we introduced We seek your continued support to enable new initiatives. We opened ourselves for us to achieve our goals and look forward evaluation under the Green Company to your feedback to improve our Rating system' (GreenCo rating) which performance. evaluates green features of companies against certain performance parameters O.Swaminatha Reddy such as energy efficiency, water Chairman A Strong Bond of Business & Life Sustainability Report FY 2018-19 11 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.