GAIL Sustainability Report 2020-21 We have to move towards ‘zero-defect and zero effect’. Zero defect in production with no adverse effect on the environment. Shri Narendra Modi Prime Minister of India

Energizing Growth We as a Business grow when the air around is fresh, when the flora is abundant, when the local community is empowered, when the avian soar high in the sky, when the sound of cicadas and birds hum along with the sound of development, and when the water is clean and blue. Biodiversity is a very important element of sustainable development. It impacts the quality of human life and is an essential part to the sustainability of all human activity, including business. Sustainable development is all about meeting the needs of present generations while safeguarding the ecosystems, species, and genetic components that make up biodiversity, a crucial factor in meeting the needs of future generations. We at GAIL, believe Biodiversity is everyone’s responsibility; definitely ours as a responsible corporate entity. The theme of the report is “Energizing Growth” because we are the catalyst to sustainable growth and believe growth is achieved when various ecosystems are in harmony with each-other.

This report carries images of various Flora, Fauna and Avian species shot at our facilities at Pata, Gandhar, Vijaypur, and Hazira showcasing GAIL’s commitment to coexist and grow along with its rich ecosystem.

thos’kq d#.kk pkfi eS=h rs’kq fo/kh;rke~A Be compassionate and friendly to all living beings Buddhacharitam 23.53 GAIL Sustainability Report 2020-21

Contents

Message from CMD & Directors 2

GAIL Highlights 7

About the Report 31

About GAIL 35

Governance and Risk Management 43

Sustainability at GAIL 61

Stakeholder Engagement and Materiality Assessment 67

Business Growth 79

Operational Excellence 91

Energy and Environment 101

Climate Change 113

Health and Safety 125

Our People 137

Our Community 151

Our Customers 159

Our Suppliers 165

Our Efforts Towards Tackling COVID-19 Pandemic 173

Performance Snapshot 177

Independent Assurance Statement 190

GRI Content Index 195

Linkages to SASB Framework 204

Linkages and NVG SEE Principles 207

Linkages to API/IPIECA, UNGC, ISO 26000 Principles 208

Linkages to Sustainable Development Goals 209

1 Message from CMD

The threats of climate change are evident ever than before. It has become of humanity is priceless and deserves lifelong gratitude on our end. I appreciate the commitment imperative now to reduce our carbon and hard work of GAIL employees also, who emissions for a cleaner environment. despite the challenges, maintained uninterrupted operations of its Petrochemical plant, LPG Plants, pipelines, and other facilities to ensure delivery of essential products such as polymers (for PPE Dear Stakeholders, kits manufacturing) PNG, CNG, LPG, and other With the advent of the COVID-19 pandemic, the hydrocarbons products to the customers. situation around the world continues to affect I would like to present GAIL’s 11th Sustainability the economy with respect to global supply report ‘Energizing Growth’, which shows our chains, wages, and productivity. The year tested efforts towards improving Environmental, Social, the resilience of the organizations in managing and Governance (ESG) performance. Our report the relationship between the employees and is aligned with the Global Reporting standards employers. Organizations whose foundations are of “Comprehensive” reporting. Additionally, it is built on strong values, trust, and a shared vision of also compliant with the updated IPIECA 2020, serving the nation survived during this pandemic. Sustainability Accounting Standards Board (SASB) In this regard; I would like to salute all the COVID requirements, and the Ministry of Corporate Affair’s warriors whose sacrifice for the safety and welfare National Guidelines on Responsible Business

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2 GAIL Sustainability Report 2020-21

Conduct. This year, we have also published our and their family members, GAIL team interacted first integrated report, on which I would like to with and remained in constant contact with all the congratulate all GAIL employees. employees and seniors under the initiative ‘Sparsh’ aimed at ‘bridging the physical distance to let the The threats of climate change are evident and it employees feel GAIL’s Sparsh with our kind words is imperative to reduce carbon emissions for a and care’. As a special measure, GAIL has decided cleaner environment. At GAIL, we are committed to take care of the education, housing, and medical to reduce our carbon footprint by foraying into requirements of the dependent family members of the Renewable Energy Sector through organic the deceased employees. and inorganic routes. We understand that tackling climate change requires a multifaceted approach; As a responsible organization, we are trying to thus, our focus is not only limited to renewable contribute our best in taking GoI COVID-related energy but also extended to promote compressed initiatives to the public. Under the aegis of MoPNG, biogas (CBG), thereby making the GoI SATAT GAIL has set up and commissioned PSA oxygen initiative a success. CBG is aimed at replacing fossil plants in 12 government hospitals across 4 states fuel as well as reducing waste and related emissions, namely, Uttar Pradesh, Madhya Pradesh, Karnataka, thus contributing to a Swachh Bharat. To reduce and Rajasthan. GAIL, on behalf of Oil and Gas import bills to the exchequer, carbon footprint & PSUs, has placed an order for the supply of 25,000 emissions further, GAIL is working on Ethanol and Oxygen cylinders. Further, along with other Oil Hydrogen. GAIL values continuous improvement and Gas PSUs, GAIL is also contributing toward which is reflected in our best-in-sector operational the procurement of 10,000 Oxygen concentrators. efficiency. However, we should not be complacent and continue taking necessary precautions to beat the Our business has a direct positive impact on next surge. environmental and social parameters and our company’s role in energy security is unparalleled. Covid-19 pandemic has taught us the importance of Natural gas, the lifeline of the country, is a key local vendors and suppliers. Aligning with the PM’s raw material for fertilizer and the CGD sector. In vision of ‘Vocal for Local’, we are also committed the industrial sector, apart from giant enterprises, to increase the presence of local vendors and medium and small-scale enterprises are also shifting suppliers in our supply chain. It will not only reduce to natural gas to minimize their environmental and environmental impact but also create a positive GHG impact. We are committed to fulfil the GoI’s social impact through our operations in the long vision of ‘One Nation One Grid’. GAIL is presently term. constructing the ‘Pradhan Mantri Urja Ganga’ GAIL has added another Landmark in its pipeline project and ‘North East Gas Grid’ in Joint Sustainability Journey this year. GAIL Vaghodia and Venture mode to promote a gas-based economy. GAIL Vijaipur have been awarded GreenCO “Silver” At GAIL, we stand focused to maintain world- Rating by CII which reflects how sustainability is class standards for ensuring operational safety, deeply ingrained in our working. performance, and growth. We take various I am happy to announce that GAIL has been measures to ensure the health and well-being of our included in the FTSE4Good Index Series (FTSE employees as well as for the community. We strive ESG Rating) as part of the London Stock Exchange to enrich the lives of thousands of underprivileged Group Sustainability Index 5th year in a row for people by creating social capital across our CSR focus demonstrating strong environmental, social, and areas of education, healthcare, skill development, governance practices of international standards. women empowerment, environment protection, GAIL has been featured in the Forbes list of World’s etc under the GAIL Hriday program. Best Employers 2020, and GAIL remains committed Apart from providing medical consultations in the to do better for its people and society. remotest places across the country, GAIL’s Arogya initiative has also contributed crucially to serve the community by distributing much-needed personal protective equipment and oximeters. We are also supporting vaccination drives through cold chain refrigerator trucks.

During the pandemic, to ensure the well-being of Manoj Jain all employees, including superannuated employees Chairman & Managing Director

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3 Message from Director (Finance)

FY 2021 has been a challenging period for all of us. The COVID-19 pandemic has affected the industry in multiple ways. Globally, the oil and gas sector witnessed supply shock and price drop for a while. The bleak demand outlook created by the nationwide lockdown due to the COVID-19 pandemic has influenced our company’s profitability. However, the Company has taken all its effort to maintain operation and profitability. Despite the impact of pandemic, GAIL has achieved a gross turnover and profit after tax of Rs 56,738 crore and Rs 4,890 crore respectively. The downfall in the operation and financial capital was for temporary period and not held back on delivering our commitment towards building a gas-based economy. The unexpected wake of the pandemic has enabled us to strengthen our operational efficiencies to meet the new normal requirements including cost optimization in our operations across our sites. Our business has rebounded in a short span of time. With concerted efforts, we have witnessed new heights in petrochemical production, made natural gas and LPG transmission pipelines available as per customer demand; and ensured uninterrupted supply during the financial year. In this way, GAIL has made it possible to create value for its stakeholders during this transformational year. During this period, Digital technologies have played an important role in maintaining business continuity and sustainable growth of the Company. We took many digital initiatives in GAIL and most of these initiatives were enabled before the pandemic hit us. The Digital yatra started by the Company, smoothen the business process and technicalities. We have created an enabling environment to access risk and implement mitigation measures to improve the company’s financials in the coming years. The Company has not only taken care of its business but also taken various relief measures for its employees and society. The Company has compliant to all the environmental and regulatory requirements. We have already commenced a transformative sustainable journey to maximize value for our people, offer improved customer service and develop superior products while creating a positive impact on the environment and society. The Company has been marching on the path of moving from being a natural gas Company to an integrated energy Company with global presence. I am confident that we will be able to outperform the current margins and grow sustainably.

A K Tiwari Director (Finance)

4 Message from Director (Marketing)

The year 2020 has changed the world and people’s lives in ways we could never have imagined. It was a tough year for everyone, everywhere. At GAIL, resilience in the face of adversity is our inherent core value. Even during these testing times, while keeping safety as an utmost priority, we have been harnessing efficiency in our operations, enhancing productivity and leveraging digital technologies to bring in transformative measures in our businesses. We as a Company have not stopped working towards our mission i.e. to enhance the quality of life through clean energy and beyond. Energy that is accessible and affordable is the substance of inclusive growth. GAIL has aligned itself strongly with the vision of Government of India to shift the nation towards gas-based economy by increasing percentage of Natural Gas to 15% in the energy mix from the current 6.3%. GAIL currently manages 70% of India’s gas transmission network, and has been expanding the network across the India to presently ~ 13,718 km of natural gas pipelines. We are providing that last-mile connectivity to various industrial consumers which aids them to shift to more sustainable alternate fuels. In the last year, we have transported gas volumes of up to 104 MMSCMD. GAIL takes immense pride to have India’s largest and most diverse LNG portfolio with a volume of around 14 MMTPA. GAIL is further working towards transportation of LNG by truck to augment the reach of this clean fuel in the transport sector. GAIL has presence directly and through its subsidiaries and joint ventures in City Gas Distribution in most of the major metropolitan cities and state capitals. We are currently authorized to operate in 61 geographical areas across India, connecting over 2.4 million vehicles with CNG and 5.08 million households with PNG connections. During this year, we have registered a record addition of 10.10 lakh household PNG connections, 341 CNG stations, which is the highest figure ever achieved. We are fully aware that sustainable growth is only possible when we grow and prosper along with the community we serve. With our Hawa Badlo movement, an initiative spearheaded by GAIL, we are changing mind-sets and encouraging people to adopt to cleaner and more sustainable lifestyle habits. Moving forward, we will continue using the transformative power of clean energy to improve the quality of life, build trust, so that we can energize growth wherever we go by building self- reliant India.

E S Ranganathan Director (Marketing)

5 Message from Director (Business Development)

At GAIL, we acknowledge that sustainable growth is only possible by thoughtfully integrating economic, environmental and social parameters into our growth strategy. Our company’s overall performance is a culmination of all our efforts in this direction. GAIL constantly endeavors to meet the growing energy demand to empower our nation to be self-reliant. We are pushing our limits to achieve energy security while addressing the growing concerns on climate change and carbon emissions to enable a gas-based economy. In an effort to achieve this, we have completed laying of ~ INR 2,400 crore Dhobi-Durgapur pipeline that will bring cheap piped natural gas to Eastern India. GAIL is also setting up a compressed biogas (CBG) plant at Ranchi which would process 150 tons per day Municipal solid waste to produce biogas and bio manure. To support GoI’s ambitious Sustainable Alternative Towards Affordable Transportation (SATAT) scheme, GAIL along with its JVs have issued 200 letter of intents to prospective CBG entrepreneurs to guarantee offtake. GAIL, under guidance of MoPNG, is implementing CGD-CBG synchronization scheme to assist CBG producers. GAIL is also exploring to add 1GW renewable energy in its current portfolio both through organic and inorganic route. Under the aegis of MoPNG, plans are being made to set up a 1G Ethanol plant for Ethanol Blended Petrol Program. GAIL has also forayed in Green Hydrogen business segment. These alternate fuels would be a step towards Atmanirbhar Bharat. These business initiatives would provide a more sustainable business by ensuring that we create no negative impacts on society and the environment. By making conscious business decisions in association with our valued and trusted partners, we are energizing growth and creating long-term value for all our stakeholders.

M V Iyer Director (Business Development)

6 GAIL Highlights 01

Ditch Jewel (Brachythemis contaminate) Location: Vijaipur

7 National Gas Grid (NGG)

GAIL’s Presence

A gas-based economy is crucial for India and GAIL is executing projects to lay around 6,000 km work is being done in the direction of One of gas pipelines across India and another 2,000 km Nation, One Gas Grid'. One Nation, One Gas Grid pipelines through its two JVs to develop National refers to the integration of various regional grids Gas Grid. Despite the COVID-19 pandemic and thus establishing a National Grid for providing related disruptions, 1000 km of pipeline has been energy produced by natural gas to various commissioned in FY 20-21. stakeholders like the central government, the state governments, the public and the private sectors.

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8 GAIL Sustainability Report 2020-21

Pradhan Mantri Urja Ganga

In sync with the Government of India’s vision, GAIL is striving to build a gas-based economy by the expansion of the natural gas grid. GAIL is enhancing our nation’s gas infrastructure from Kutch to Kohima, Kashmir to Kanyakumari, connecting gas sources to major demand centers, removing regional imbalance in access to natural gas.

Pan India Natural Gas Pipeline Length

JHBDPL BGPL Jagdishpur-Haldia-Bokaro- Barauni-Guwahati Dhamra pipeline pipeline

2655 KM 729 KM

IGGL KKBMPL Indradhanush Kochi-Koottanad- Gas Grid Limited Bengaluru-Mangaluru pipeline pipeline

1656 KM 889 KM

9 Energizing Growth Energizing Possibilities GAIL and it’s JV’s Facilitating Cleaner Energy for a Greener India

Enhancing clean energy availability and accessibility for Indians, GAIL has been augmenting its CGD network across India. The company’s PNG and CNG networks are providing people with cleaner, sustainable and aff ordable natural gas.

Strengthening India’s City Gas Distribution Network

PNG CNG INDUSTRIAL 5 MILLION 2.5 MILLION PNG OVER HOMES VEHICLES 16,500 UNITS

10 Towards New Horizon

ÆÆ Memorandum of Understanding (MoU) 2020-21 has been signed between Secretary, Ministry of Petroleum & Natural Gas & CMD, GAIL on 19th October 2020. The signing took place in the presence of JS(GP), Director (HR), Director (Finance) & Director (Marketing) along with other senior offi cials from Ministry. Parameters in MoU include critical aspects like key fi nancial parameters, gas marketing, gas transmission, project implementation, capital expenditure etc. The MoU is majorly aligned towards GOI’s vision of making India a gas-based economy.

ÆÆ GAIL and Ranchi Municipal Corporation (RMC) have signed a Concession Agreement (CA) at Ranchi for setting up Compressed Biogas (CBG) plant in Ranchi. The agreement was signed in the presence of Hon’ble Chief Minister of Jharkhand Shri Hemant Soren, Joint Secretary, Ministry of Petroleum & Natural Gas Shri Ashish Chatterjee, Director (Business Development), GAIL Shri M V Iyer, Executive Director (ER & Projects), GAIL Shri K B Singh, Executive Director (Business Development), Shri Santanu Roy by Ranchi Municipal Commissioner Shri Mukesh Kumar, IAS. As per the agreement, GAIL will setup CBG Plant for processing 150 tons per day of organic Municipal Solid Waste (MSW).

11 Towards New Horizon

ÆÆ Honorable Secretary Ministry of Petroleum and Natural Gas Sh. Tarun Kapoor, IAS visited DT Eloor GAIL Kochi along with Mr. Ranganathan, Director (Marketing) and Senior offi cials of BPCL and Petronet in the backdrop of dedication of the Kochi-Mangalore Section of the KKBMPL PH II pipeline network by Honorable PM of India.

ÆÆ Mr. M V Iyer, Director (Business Development) GAIL reviewing Pata Expansion Plan.

12 Towards New Horizon

ÆÆ Hon’ble Minister Shri Dharmendra Pradhan, Hon’ble Minister of Petroleum and Natural Gas and Steel press interaction and launch of Catalytic Iso-Dewaxing Unit at Halida Refi nery. Dhobi, Durgapur dedicated to Nation.

ÆÆ The signing of the agreement between GAIL Gas Limited and Confi dence Petroleum India Limited for CNG stations in Bengaluru on full DODO model

13 Energizing Growth Energizing Possibilities Excellence in Corporate Governance

ÆÆ GAIL received the ‘Golden Peacock Award for Excellence in Corporate Governance - National category’ in Gas

GAIL has been adjudged as WINNER (PSU category) in United Nations Global Compact Network India (UNGCNI) Sustainable & Innovative HR Practices - Case Study Contest.

GAIL team presented on the topic of “Ensuring Flow through HR Gateway - HR as a Business Partner.”

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CII GreenCo Rating Implementation

ÆÆ GreenCo Rating is the “first of its kind in the world” holistic framework that evaluates companies on the environmental friendliness of their activities using the life cycle approach. In FY 20 and FY 21 Vaghodia and Vijaipur respectively have received a silver rating for its exceptional performance. Further implementation of the GreenCo rating is under progress at different operational sites

15 Energizing Growth Energizing Possibilities Financial Performance

Turnover (Gross)* Gross Margin (EBIDTA)*

80,000 – 74,808 71,886 12,000 – 10,774 70,000 – 9,887 10,000 – 8,649 60,000 – 53,690 56,738 8,450 8,000 – 50,000 – 48,789 7,278 40,000 – 6,000 – 30,000 – 4,000 – INR (crore) 20,000 – INR (crore) 2,000 – 10,000 – 0 – 0 – FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Profit Before Tax (PBT)* Profit After Tax (PAT)*

10,000 – 9,085 7,000 – 6,026 6,621 7,943 6,000 – 8,000 – 4,890 6,958 6,386 5,000 – 4,618 3,503 6,000 – 5,411 4,000 –

4,000 – 3,000 –

INR (crore) INR (crore) 2,000 – 2,000 – 1,000 – 0 – 0 – FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

GAIL witnessed a decline in the financial performance with respect to previous years: • In FY 2021, with gross turnover declining by 21% due to the decline in natural gas marketing and transmission volume • The PAT has shown a decrease of 26% while PBT has registered a decrease of 20% because of lower gas marketing spread *Financial performance of standalone GAIL

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Economic, Social & Environmental Performance

Economic Value Generated Procurement Highlights vs Distributed*

9,000 – 90,000 – 8,000 – 80,000 – 7,000 – 70,000 – 6,000 – 60,000 – 8,630.50 5,000 – 7,922.00 50,000 – 7,201.60 6,769.20 76,710.60 4,000 – 73,327.30 72,883.40 40,000 – 71,455.70

INR (crore) 3,000 – 5,097.00 INR (crore) 30,000 – 58,752.10 56,033.10

2,000 – 4,788.20 20,000 – 1,000 – 10,000 – 0 – 0 – FY 2019 FY 2020 FY 2021 FY 2019 FY 2020 FY 2021

Economical Value Generated Economical Value Distributed Total amount spent on procurement of goods and supplies Total amount spent on procurement of goods and supplies from *Economic value generated, and distributed calculation local suppliers methodology is different from other reported data

R&D Expenditure Operating cost

80 – 67.35 66.40 70,000 – 70 – 65,619.00 64,313.50 60 – 60,000 – 49,996.60 50 – 50,000 –

40 – 40,000 – 30 – INR (crore) 20.12 30,000 – 20 – INR (crore) 20,000 – 10 – 0 – 10,000 – FY 2019 FY 2020 FY 2021 0 – FY 2019 FY 2020 FY 2021

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17 Energizing Growth Energizing Possibilities Economic, Social & Environmental Performance

Health Safety & RTI Application Environment Score

1400 – 1314 1308 95.98 96.98 100 – 94.19 1200 – 1000 – 80 – 768 795 800 – 763 60 – 595 600 – 40 –

HSE Score 400 –

20 – Number of Application 200 – 0 – 0 – FY 2019 FY 2020 FY 2021 FY 2019 FY 2020 FY 2021 Application Received Application Addressed

Customer Satisfaction CPGRAMS Grievances Index

250 – 95 96 201 201 100 – 93.15 200 – 176 176 80 – 150 – 116 116 60 – 100 – Index 40 – No. of Grievances No. 20 – 50 – 0 – 0 – FY 2019 FY 2020 FY 2021 FY 2019 FY 2020 FY 2021

CPGRAMS Grievances Received CPGRAMS Grievances Resolved

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Economic, Social & Environmental Performance

Employee wages Value Add Per Employee and benefits

3.5 – 1,975.10 2.88 2000 – 1,740.40 1,744.20 3 – 1800 – 2.47 2.5 – 2.15 1600 – 2 – 1400 – 1200 – 1.5 – 1000 – INR (crore) 1 – 800 –

INR (crore) 0.5 – 600 – 400 – 0 – 200 – FY 2019 FY 2020 FY 2021 0 – FY 2019 FY 2020 FY 2021

*Employee wages and benefits incl. t/f to CWIP+ contribution to PF & Other fund (Prior Period) & Welfare+ Other income from deputation

Total employee Procurement from turnover rate Government eMarketplace (GeM)

2.87 3 – 2.67 1200 – 1033 2.36 1000 –

2 – 800 –

600 –

1 – INR (crore) 400 – Turnover rate Turnover 200 – 1.32 62 0 – 0 – FY 2019 FY 2020 FY 2021 FY 2019 FY 2020 FY 2021

19 Energizing Growth Energizing Possibilities Economic, Social & Environmental Performance

Energy Consumption Energy Savings

5,00,000 – 7,00,00,000 – 3,90,167 5,77,28,467 4,00,000 – 6,00,00,000 – 5,62,53,394 5,20,29,055 5,00,00,000 – 3,00,000 – 2,36,653 4,00,00,000 – 2,00,000 –

3,00,00,000 – (GJ)Energy 1,10,180

Energy (GJ)Energy 2,00,00,000 – 1,00,000 – 1,00,00,000 – 0 – 0 – FY 2019 FY 2020 FY 2021 FY 2019 FY 2020 FY 2021 Savings are reported based on energy saving initiatives implemented at sites/offices.

GHG Emissions GHG Savings

50,00,000 25,000 – – 43,45,358 23,224

e) 38,20,883 2 e)

40,00,000 37,01,662 2 20,000 – – 16,959 30,00,000 15,000 – – 20,00,000 10,000 – 8,324 – 5,000 –

10,00,000 (tCO GHG Saving GHG Emission (tCO – 0 – 0 – FY 2019 FY 2020 FY 2021 FY 2019 FY 2020 FY 2021

Savings are reported based on energy saving initiatives implemented at sites/offices.

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Economic, Social & Environmental Performance

Water Consumption Water Recycling

3 30 – 25.3 26.2 1 – 0.9

3 0.9 – 25 – 23.1 0.8 0.8 – 20 – 0.7 – 0.6 – 0.5 15 – 0.5 – 0.4 – 10 – 0.3 – 5 – 0.2 – 0.1 – Water Recycling in million m Water Water Consumption in million m Consumption Water 0 – 0 – FY 2019 FY 2020 FY 2021 FY 2019 FY 2020 FY 2021

Tree Plantation Cumulative No. of Tree Plantation (Sites+Township)

5,00,000 – 3,97,210 4,00,000 – 3,86,828 20,000 – 3,52,592 17,992 18,683 18,000 – 17,118 3,00,000 – 16,000 – 14,000 – 2,00,000 – 12,000 – 10,000 – Number of trees 1,00,000 – 8,000 – 6,000 –

Number of trees Number of trees 0 – 4,000 – FY 2019 FY 2020 FY 2021 2,000 – 0 – We are streamlining the process of plantation data collection from various FY 2019 FY 2020 FY 2021 sites/offices in our sustainability portal.

21 Energizing Growth Energizing Possibilities Economic, Social & Environmental Performance

Power & Gas Charges Water Charges

3000 – 25 –

2500 – 2283.19 19.68

2107.67 20 – 14.8 17.69 2000 – 15 – 1500 – 1280.84 10 –

INR (crore) 1000 – INR (crore) 412.49 367.92 500 – 356.34 5 –

0 – 0 – FY 2019 FY 2020 FY 2021 FY 2019 FY 2020 FY 2021 Power Charges Gas Charges

Total Environmental Expenditure

50 –

40 – 36.50 27.3 30 – 24.83

20 – INR (crore)

10 –

0 – FY 2019 FY 2020 FY 2021

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Health and Safety at GAIL

SAFETY AND PERFORMANCE CORPORATE HSE POLICY The health, safety and environmental GAIL endeavors to generate value through management performance of GAIL’s sustainable development by placing Operation & maintenance installations are measured through the “HSE score”, which commitment to occupational health, safety is evaluated every month, considering the and environment of its plants, pipelines key elements of HSE Management System. including CGDs and personnel, and these GAIL achieved “HSE Score” of 96.98 average beliefs are embedded within our core achieved for the FY 21 against the internal organizational values. target of 94.50 in the FY 21.

SAFETY AND TRAINING AWARENESS “Safety Day” is observed on the 10th of every month at each O&M site of GAIL. Short fi lm on the HSE Management system has been developed to enhance awareness among GAIL employees about the HSE management system implemented in GAIL.

OCCUPATIONAL HEALTH In the current scenario of COVID-19 pandemic, awareness sessions and multiple motivational programs were conducted with proper protocols for employees and their family members at GAIL diff erent sites. GAIL has implemented occupational hygiene measures and medical surveillance progress to monitor and control the occupational health of its employees based on defi ned guidelines.

SAFETY AUDITS Audits are performed by PNGRB accredited third-party inspection agencies, other external agencies and our experienced in-house team, in accordance with the applicable national codes and standards. Internal safety audit is being conducted by an in-house team to identify the improvement areas with respect to PNGRB and other regulations, OISD standards, management governance.

23 Energizing Growth Energizing Possibilities

Be the leader in the natural gas value- Enhancing quality of life through clean chain and beyond, with a global presence, energy and beyond creating value for stakeholders with environmental responsibility

55% Operates more than 55% of India’s total CNG stations

65% Operates 65% of PNG connections in India

nd 2 2nd largest player in Indian polyethylene portfolio market

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24 GAIL Sustainability Report 2020-21

GAIL’s Supply Chain India’s Natural Gas Leader

61 Authorized to operate in 61 geographical areas throughout India including the metro cities

55% Supplies gas for about 55% of India’s gas-based power

73% Supplies gas for about 73% of India’s total fertilizers produced

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25 Energizing Growth Energizing Possibilities Our Social Outreach

During this reporting year, GAIL has taken up several projects to meet its commitment towards its society. GAIL has spent INR 147.67 crore in FY 21, exceeding the mandated 2% of INR 141.91 crore.

7 major focus areas of our CSR program- Hriday

SAKSHAM UNNATI HARIT Care of Elderly and Rural Development Initiative: Environment projects: Disabled: INR 4.19 crore INR 1.11 crore INR 3.08 crore

AROGYA KAUSHAL Skill Development and (Health, Drinking Water, UJJAWAL Sanitation): SASHAKT Livelihood Generation Education: Women Empowerment: INR 40.26 crore Initiatives: INR 13.76 crore INR 22.82 crore INR 1.86 crore

Others (disaster management activities, promotion of sports, etc.): INR 60.60 crore

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Creating Value Through Community Initiatives

ÆÆ GAIL’s Project “AVANT” aims to improve and enhance the quality of education for underprivileged and deprived kids in rural areas, through innovative measures and evaluating progress by continuous assessment.

ÆÆ Ration and kits distribution at Rajahmundry

27 Energizing Growth Energizing Possibilities GAIL’s Efforts on COVID-19 Pandemic

out for employees and workers at all levels. GAIL also implemented a weekly roster for employees at offices/plants on 50% rotational attendance based on work exigencies; work-from-home was granted to employees on a rotational basis. In addition, GAIL provided resources to address the social, physical and mental wellbeing of the employees. Well-equipped occupational health centres, ambulances were kept ready for employees with the full-time medical officer. It was ensured that all employees and workers are going through necessary occupational health check-ups at regular intervals.

This global COVID-19 health emergency had a During the initial phase of the pandemic, serious impact on our lives, business and the operations were significantly impacted. As a economy. The GAIL team has been diligently resilient company, within a short period, GAIL has responding to the COVID-19 outbreak from the bounced back to normalcy. To achieve business last year onwards. GAIL’s dedicated working continuity, GAIL has deployed emergency groups and the management has been tirelessly measures and organisational instructions to working to ensure business continuity, the safety ensure continuity of operations according to the of its people and society responsibly. level of risk identified. With improved digital and technological solutions such as the introduction As a responsible corporate citizen, GAIL has of virtual meeting platform, e-note-sheet, secure pledged to utilize and allocate its resources to access of systems for remote working, online improve community well-being as a part of its transactions, mobile apps, etc, GAIL ensured CSR agenda. GAIL has partnered with several business continuity and provided uninterrupted government bodies in conducting vaccination services to its customers. drives, set up PSA oxygen plants in 12 government hospitals and provided several pieces of medical As a response to mitigate the COVID-19 equipment across the nation. challenges, GAIL has spent INR 80 crore to help its people and society. GAIL has contributed GAIL’s efforts reflect on its duty to its people INR 50 crore towards PM CARES Fund, INR 30 and the nation. GAIL has taken utmost care crore on projects to provide oxygen cylinders, of its employees to keep them safe from the concentrators, PSA plants, set up super-speciality outbreak. The necessary safety precautions were ICU unit in Dakshina Kannada, Karnataka and implemented at the workplace to maintain a good supported in setting up quarantine ward in hygiene workplace environment. Awareness Rajahmundry, Andhra Pradesh. sessions on COVID-19 precautions were carried

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Mapping GAIL Initiatives with SDGs

The Sustainable Development Goals (SDG’s) comprises of a set of targets building a framework for leading development for the period till 2030. By endorsing the universal 2030 Agenda for Sustainable Development, including its 17 SDGs and 169 Targets, the global community reaffirmed its commitment to sustained and inclusive economic growth, social inclusion, environmental protection, and fostering peaceful, just and inclusive societies through a new global partnership.

»»Diversity inclusion for the hiring process »»GAIL Kaushal, Unnati and Sashakt »»GAIL Shashakt initiative under Hriday initiatives under GAIL Hriday Program »»GAIL Kaushal intiative under GAIL Hriday

»»Supplies gas for about 73% of India’s »»Water Management total fertilizers produced. »»Waste Management »»GAIL Kaushal, Unnati and Sashakt »»GAIL Arogya initiative under Hriday initiatives under GAIL Hriday. Program

»»Partnership with BHEL for Solar based »»Employee engagement activities power project »»Behaviour-based safety »»Energy Management System »»HSE Management System »»Solar Power System commissioned at »»COVID-19 Precautionary measures Mumbai Pipeline Network »»GAIL Arogya initiative under Hriday »»Development of National Gas Grid Program »»Compressed biogas »»Corporate medical Cell for Regular »»Target of 1 GW of renewable energy health check-ups »»GAIL Emergency Responders and First Aid Training »»Hawa Badlo Campaign

»»GAIL’s contribution to Start-Up India »»Transparency in Doing Business »»Grievance Redressal Mechanism »»Workforce Management »»GAIL Ujjawal, GAIL Kaushal, GAIL Sashakt initiatives under GAIL Hriday »»GAIL Kaushal »»Management Development Program »»Learning Management System

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29 Energizing Growth Energizing Possibilities

»»GAIL’s contribution to Start-Up India »»Green Procurement »»Digital Transformation »»Local Procurement »»Marketplace (GeM) and Trade »»State-of-art Digital Technology to measure the Carbon footprint »»Receivable Discounting System (TReDS) for Procurement »»CNG Mobile Refueling »»Workforce Management »»Afforestation projects following the Miyawaki technique »»GAIL Ujjwal initiative under Hriday Program »»State-of-art Digital Technology to measure »»GreenCo Assessment of the sites the Carbon footprint »»Construction Management Plan (CMP) »»Target of 1 GW of renewable energy »»Coastal regulatory zone clearance »»GAIL Shashakt initiative under Hriday Program »»GAIL Saksham initiative under Hriday Program »»Functional excellence Framework »»General Conditions of Contract »»Biodiversity Management »»Public Procurement Policy at GAIL »»Water Management »»GAIL Indigenization (INDEG) Group Meets »»GAIL Harit initiative under Hriday »»Local procurement Program »»EIA (Environment Impact Assessment)

»»SIA (Social Impact Assessment) »»GAIL Initiatives to tackle COVID-19 »»Environment Management System Impacts »»Biodiversity Management »»GAIL’s contribution to Start-Up India »»Waste Management »»GAIL Arogya »»GAIL Harit initiative under Hriday »»GAIL Unnati Program »»Hawa Badlo campaign »»Green Procurement »»Local Procurement »»Hawa Badlo campaign »»Implementation of the rich lean corridor »»Energy Management System »»Energy-saving initiatives at GAIL sites »»Ethics and Integrity and townships »»Transparency in Doing Business »»Water Management »»Labour Practices »»Waste Management »»General Conditions of Contract »»Contribution to Start-Up India »»Stakeholder engagement »»Total Quality Management (TQM) »»Customer satisfaction survey »»Integrated Management System (IMS)

»»The sustainability Governance Framework »»GAIL’s contribution to Start-Up India and Sustainability Policy »»Partnership with TERI »»Implementation of the rich lean corridor »»GAIL’s support to Sustainable »»Environment Management System Alternative Towards Affordable »»Energy Management System Transportation (SATAT) initiative of GoI »»Biodiversity Management GAIL’s Start-Up Initiative ‘Pankh’ »»Emission Management »»Founding member of the Global Reporting Initiative (GRI) Focal Point » » GAIL’s contribution to Start-Up India India’s Sustainability & Transparency »»Combating Climate Change Risk Consortium

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30 About the Report 02

Lotus (Nelumbo nucifera) Location: Gandhar About the Report

GAIL (India) Limited (hereinafter referred to Reporting Cycle as GAIL) has been disclosing environmental, The reporting cycle is aligned with the fi nancial economic, and social performance since disclosure cycle. The electronic version of the 2011 through annual sustainability reports. report can be found on our website for reporting Through sustainability reporting, we analyze on sustainability. our company’s strategy, set goals and targets, measure and advance our performance, and Please visit. https://gailonline.com/SBReports.html ultimately develop a sustainable business model for more details. that adds value to society. Report Boundaries We report in accordance with the latest version The scope of reporting covers GAIL’s performance of the International Petroleum Industry on various environmental, economic, social and Environmental Conservation Association governance parameters across all the locations. (IPIECA) global oil and gas industry association Company-joint ventures, subsidiaries, leased for environmental and social issues guidelines. facilities, outsourced operations and other We also follow GRI Sustainability Reporting entities have been excluded from the scope. Standards; Sustainability Accounting Standards There is no restatement of information as well Board (SASB) the National Voluntary Guidelines (NVG); Business Responsibility Reporting (BRR), for there has been no change in the reporting Sustainable Development Goals (SDG), guidelines boundaries or the nature of the fi rm in the given of the American Petroleum Institute (API), ISO fi nancial year. The material topics have not 26000:2010, and the United Nations Global changed substantially since our previous report, Compact and its 10 principles covering human we have included climate change and cyber rights, labor, environment, and anti-corruption. security as additional material topics. Whereever applicable, India is our signifi cant location unless Reporting Year and otherwise specifi ed. The word ‘local’ refers to The fi nancial accounting and performance data India, whereever applicable. Unless specifi ed, the provided in the report covers information from last fi nancial year is considered as a baseline for GAIL’s fi nancial year, 01 April 2020 to 31 March calculating reduction in energy & GHG savings. 2021. The same period is used to report Data Management sustainability performance as well. The sustainability report for the fi nancial year This report has been prepared in accordance 2019-20 was published on 22nd September with the GRI standards: Comprehensive option 2020. This is GAIL’s 11th sustainability report, and covers the data from 01 April 2020 to 31 showcasing the environmental, economic, March 2021. We have assigned sustainability and social performance for the fi nancial year coordinators at all plants/offi ces to locally drive 2020-21. and monitor various initiatives and collect

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32 GAIL Sustainability Report 2020-21

Our Sustainability Reports (SRs)

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33 Energizing Growth Energizing Possibilities data for reporting. Sustainability coordinators assurance process helps to refine and improve our submits sustainablity related data such as fuel & processes and data management systems. The electricity consumption /saving, water sourcing, data of material aspects is compiled by each of consumption and discharges , training hours and the process owners from functional departments other relevant parameters at our sustainability and are used to develop the report. It is then portal. The information is verified by various developed by the Sustainability Department irrespective departmental heads for clarity and and approved by the Sustainable Development accuracy. Further to calculate our emissions, Committee of the Board of GAIL. we have used IPCC Guidelines for National The Sustainability Report, in hand, is both a Greenhouse Gas Inventories, 2006 and Central communications tool to all our stakeholders Electricity Authority (CEA) grid emission factor. and an operational document that assists us in informed decision-making. Any feedback or The GAIL Sustainability Report outlines our query related to this report can be communicated company’s engagements with our stakeholders, to Mr. R K Mittal, CGM (SD) rk.mittal@gail.co.in, and the programs and initiatives that were Mr. S K Agarwal, GM (SD) [email protected] . undertaken to achieve our shared mission. Readers can also reach out to us at sustainability@ Details pertaining to the material aspects that are gail.co.in to provide feedback on improving our important to our business and stakeholders are performance and sustainability disclosures. also provided in this report. Additionally, various plans, projects, policies, and strategic frameworks Reporting Boundary of GAIL for sustainability issues have also been covered in »» GAIL’s gas processing units at five locations this report. (Pata, Vijaipur (2), Vaghodia, Gandhar,) The coronavirus pandemic continues to have »» One petrochemical plant at Pata and C2/C3 unprecedented impacts on our economy. We are plants at Pata and Vijaipur focused on creating a safer work environment »» Natural gas compressor stations (Hazira, for our employees, customers, and supporting Vaghodia, Jhabua, Khera, Vijaipur, Dibyapur, communities from the implications unleashed Kailaras, and Chhainsa) by COVID-19. Details about our commitments »» Liquified Petroleum Gas (LPG) pumping/ and initiatives taken to manage the effect of this receiving stations (Loni, Mansarampura, outbreak are also provided in this report. Nasirabad, Abu Road, Samakhiali, Jamnagar, Data Validation and Assurance Kandla, Vizag, G Konduru, and Cherlapalli) External assurance agency has assured this »» GAIL Training Institute Noida, Jaipur. Office report. We do not have working relationship with buildings at the corporate office in New Delhi external assurance agency, no other work order »» E&P business is provided to them. This sustainability report is a »» Info-Hub and Jubilee Tower offices at Noida type 2 moderate level assured report and has been »» Zonal marketing offices conducted based on the AA1000AS v3 standard. »» Regional pipeline offices at NCR, Baroda, The assurance process includes desk review as Mumbai, Puducherry, Rajahmundry, Agartala, well as site visits to multiple locations to validate and Dhabol Bengaluru Pipeline (DBPL) the data provided. Apart from data validation, the

Disclaimer Statements in the GAIL Sustainability Report FY20-21 may be “forward looking statements”, identified by words like ‘plans’, ‘expects’, will’, ‘anticipates’, ‘believes’, ‘intends’, ‘projects’, ‘estimates’ and may be progressive within the meaning of the applicable laws and regulations. The company disclaims any obligation to update these forward-looking statements, except as may be required by law.

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34 About GAIL 03 About GAIL

Incorporated in August 1984, GAIL was models, capitalizing on its market positions and established as a Central Public Sector strengthening areas for value creation. Undertaking (PSU) under the Ministry of With a vision to be a leader in the natural Petroleum and Natural Gas (MoP&NG). gas value chain, our aim is create value On a mission to enhance the quality of life for our stakeholders with an awareness of through clean energy and beyond, GAIL has environmental stewardship. In 2013, we were played a pivotal role in the development of the granted the prestigious ‘Maharatna’ status by Indian energy sector and is the country’s leading the Government of India (GoI) and within a short gas company with diversifi ed interests across the span of time, we have achieved a strong global natural gas value chain including the exploration presence with our subsidiaries in the United and production, processing, transmission, States of America as well as Singapore. distribution, and marketing. Over the years, we have seen a transformation GAIL currently operates 13,718 km of natural gas in the form of rising demands, technological pipeline network and 2,038 Km of LPG pipeline innovations, geopolitical shifts and across India. The business portfolio includes environmental concerns in the Indian energy natural gas, liquid hydrocarbons, petrochemicals, sector, and as a company, it is imperative for city gas distribution, LPG transmission, power, us to adjust and adapt to the ever- evolving and renewables. landscape. We have developed and implemented a long-term strategic action plan - ‘Strategy GAIL commands ~75% market share in gas 2030’ to guide and support us in navigating the transmission and has a gas trading share of challenges and identify opportunities for growth 53% in India. GAIL and its subsidiaries/JVs also and development in a volatile market. have a formidable market share in the City Gas Distribution. We also have a signifi cantly GAIL (India) Limited is headquartered in New large portfolio in the LNG market and being Delhi, India. We are a government-owned cognizant of the environmental impact, we enterprise, in which GoI holds 51.45% of the are expanding our presence in the renewable paid-up equity capital. The company is listed and energy segment with a focus on solar, wind and publicly traded on the BSE as well as the National biofuel. Our aim is to maximize the potential of Stock Exchange. each portfolio company by clarifying its business

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36 GAIL Sustainability Report 2020-21

Business Portfolio

Exploration & Production • Participating interest in 11 E&P blocks • A new gas discovery was made in A-3 GAIL Business Highlights Myanmar off shore block in the 2nd • Contributes 53% of the NG sold in India exploratory well (Mahar-1) • Supplies gas for about 55% of India’s gas- • GAIL’s E&P share of average oil based power production from Cambay blocks is • Operates more than 54% of India’s total 182 BOPD and gas production is 1.45 CNG stations Overseas Presence MMSCMD from Myanmar blocks • 2nd largest player in Indian Polyethylene • Set up wholly owned (A1&A3) Portfolio Market subsidiaries - GAIL Global • Produces every 33rd LPG cylinder in India (USA) Inc. and GAIL Global • Operating 65% of PNG connections in (Singapore) Pte. Ltd. India • Acquired 20% interest in • Operates 70% of total Natural Gas Carrizo’s Eagle Ford Shale transmission in India acreage in the USA • Supplies gas for about 69% of India’s total • Presence in Egypt, China and fertilizer sector consumption Myanmar

City Gas Distribution • Serving over 2.5 million vehicles and 5.08 million households Power & • Operates more than 54% CNG stations through alliances Renewables • Sectorial gas sales of around 67% • 118 MW wind power in CGD capacity • Authorized to operate in 61 • 12.26 MW solar power geographical areas across India capacity • Supplies natural gas to around 65% of the country’s Piped Natural Gas (PNG) connections

LPG & Liquid Natural Gas Hydrocarbons • Around 13, 718 km of Natural gas pipeline network. Adding further • 5 Gas processing plants 6000 Km as a part of National producing LPG, Propane, Gas Grid Pentane, Naphtha, etc. (1.4 Petrochemicals • Long-term import portfolio: 14 MMTPA) • Petrochemical plant at Pata, MMTPA • LPG transport capacity 3.8 Utt ar Pradesh and BCPL plant MMTPA (2,038 Km) at Lepetkata, Assam with a capacity of 810 KTA and 280 KTA respectively • Combined production share of 17.4% of the high density and linear low-density polyethylene (LLDPE) market in the country

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37 Energizing Growth Energizing Possibilities Subsidiaries, JVs & Awards

GAIL Global GAIL Gas (Singapore)- Limited Pte Ltd. (100%) (100%)

GAIL Brahmaputra Global Crackers and (USA) Inc. SUBSIDIARIES Polymers (100%) Limited (BCPL GAIL Global – 70%) (USA) LNG Tripura LLC- (100%) Natural Gas subsidiary of Co. Ltd. GAIL Global (48.98%) (USA) Inc. Konkan LNG Limited (92.15%)

KLL AWARDS AND RECOGNITIONS

CORPORATE JOINT VENTURES » GAIL India limited declared the winner of Golden Peacock award Aavantika Gas Limited (49.99%) for excellence in corporate governance for the year 2020 » GAIL India Limited Pata unit bagged 1st Position in 16th National Bengal Gas Company Limited (50%) award for excellence in Cost management » GAIL has won the Leaders Award in the Mega Large Business, Bhagyanagar Gas Limited (48.73%) Process Sector category in the 11th edition of Frost & Sullivan - MEASA and TERI - The Energy and Resources Institute’s Central UP Gas Limited (25%) Sustainability 4.0 Awards 2020 » GAIL Gas has been awarded as ‘City Gas Distribution- Established China Gas Holding Limited (2.88%) Company of the Year’ by FIPI New Delhi, January 28, 2021 » GAIL, the country’s Natural Gas leader, has featured in the Forbes Fayum Gas Company (19%) list of World’s Best Employers 2020 » GAIL (India) Ltd. conferred with Investor Relation Award under Green Gas Limited (49.97%) Environmental, Social and Governance (ESG) Disclosures Category Indradhanush Gas Grid Limited (20%) » In 2020, Vaghodia became the fi rst GAIL location to get Silver rating by CII GreenCo, followed by Vijaipur which also received Indraprastha Gas Limited (22.5%) a silver rating by CII GreenCo in 2021. GAIL embarked upon Mahanagar Gas Limited (32.5%) the journey of adoption of GreenCo Rating in FY 2019-20

Maharashtra Natural Gas Limited (22.5%) CSR ONGC Petro Additions Limited (OPAL) (49.21%) ‘Project Shikhar’ - GAIL is supporting the functioning of a public library at RK Puram Police Station to promote education and build Petronet LNG Limited (12.5%) a positive interface between the policy and the public. This initiative has won the following awards: Ramagundam Fertilizers and Chemicals Limited » Shiksha Bharti Award 2020 » World Best Brand and Business Award 2020 (14.69%) » Innovative Educator Award’ at Asia Pacifi c Excellence Award 2021 South-East Asia Gas Pipeline Company Limited (4.17%) HSE » “International Safety Award 2020” with Merit from British Safety Talcher Fertilizers Limited (33.33%) Council, UK for GPU Vaghodia and GPU Gandhar » “Safety Innovation Award 2020” by The Institution of Engineers TAPI Pipeline Company (5%) (India) for GPU Vijaipur for implementing Innovative Safety Management Systems.

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38 GAIL Sustainability Report 2020-21

Cost & Profit as a % of Total Revenue

39 2013 yy Achieved Maharatna status yy Commissioned Dabhol Terminal and Dabhol-Bengaluru natural gas Pipeline yy Capacity booking in cove point LNG terminal in the US

2001 yy JLPL, the world’s longest LPG transmission pipeline commissioned 2012 yy 2200 km 1987 Dahej- Vijaipur yy India’s first natural (DVPL) pipeline 2011 dedicated to the gas pipeline- Hazira- yy First public sector nation Vijaipur-Jagdishpur undertaking (HVJ) commissioned (PSU) to acquire shale gas acreage 1999 in the US yy First petrochemical plant at Pata yy Subsidiary in the US

1984 yy Birth of GAIL: Natural Gas Transmission and Marketing Company

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40 2021 yy Target of 1 gigawatt of renewable energy yy GAIL has received GreenCo silver rating for two major sites Vaghodia and Vijaipur yy World record of adding 201 CNG station in a day yy Kochi- Mangaluru Natural Gas Pipeline dedicated to the Nation yy Dobhi- Durgapur Natural Gas Pipeline Dedicated to the Nation 2018 yy Varanasi CGD project inaugurated yy India’s first LNG cargo from USA received in GAIL’s first charter hired vessel yy First LNG cargo under a long-term contract with Russia received

2020 yy Jamshedpur CGD project inaugurated 2016 yy FTSE4Good Index inclusion continues yy Brahmaputra Cracker and Polymer Ltd. yy All the Six CGDs awarded to Petrochemical Complex GAIL under JHBDPL Pipeline 2019 started its operations dedicated to the nation yy Launch of commencement of work of Talcher Fertilizers Limited (TFL) 2017 yy Ranchi CGD project yy Bengaluru CGD and Patna CGD Project project inaugurated inaugurated yy CNG stations 2015 inaugurated in yy Construction work of Cuttack Jagdishpur- Haldia and yy PNG supply Bokaro-Dhamra Pipeline launched in Project launched Bhubaneswar yy Doubled petrochemical production capacity at Pata

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41 Energizing Growth Energizing Possibilities Gas Sourcing & Distribution

42 Governance and Risk Management 04

Dragonflies Location: Gandhar Governance and Risk Management

As a responsible Public Sector Undertaking, GAIL experience in the areas of marketing, business leads the way for ethical corporate behavior development, fi nance and governance and they by placing paramount importance upon place enormous importance on ESG. We also establishing and implementing an eff ective regularly conduct capacity building sessions and strong corporate governance framework. on the evolving ESG landscape which has been The corporate governance framework at GAIL discussed in Our People chapter in detail. Further is designed to identify, analyze and address details pertaining to the composition and profi les the company’s risks and deliver constructive of the Board members are available on our evaluations in order to align the Management’s website and annual report. responsibilities with the Board’s oversight of the organization. We continuously review and update The Board of Directors oversees the the Company’s policies and practices in order to organizational management and ensures that manage systemic risks, which are crucial for the all the stakeholder needs are met promptly. smooth functioning of our business. By responsibly addressing the concerns of the Governance Structure stakeholders in our value chain, the Board of Directors and the senior management team strive The Board of Directors remains at the top of to recognize the long-term interests of multiple the governance structure, inclusive of the parties. The thoughtfully crafted induction and shareholders and multiple committees of the board. GAIL has a unitary board structure, orientation programs assist the newly appointed which is governed by a formal Board Charter Directors to understand the organizational that sets out the composition of the Board, its structure, while enabling them to contribute responsibilities and the process of selection of towards the holistic organizational growth. its members. The Directors on the Board are The welcome kit provided to them during the nominated/ appointed by the Government of induction period contains the detail of its roles India. As on 31 March 2021, there are a total of and responsibilities, including the legal and eight members in the board, that comprise of fi ve regulatory policies it may be obligated to follow. Functional Directors including the Chairman and To enhance and upgrade the skill and expertise the Managing Director, and three Non-Executive of the Board members, we provide them with Directors (comprising two Government Nominee adequate training, based on our training policy. Directors, and one Independent Director). There As a part of this policy, the Board members are two women director’s on our board. The including the Directors are often nominated to average tenure of the Board member is 3-4 year. participate in conferences on industry matters All the board members are over 50 year old. GAIL’s organized by parties such as the Department policy on diversity of board of directors provides that the board of directors shall have an optimum of Public Enterprise (DPE), Standing Conference combination of executive and non executive of Public Enterprises (SCOPE), and other Global directors with at least one woman director. The associations such as the World Economic Forum director’s are nominated/appointed by Govt. (WEF), International Energy Agency (IEA), of India. Our leaders bring multidimensional International Gas Union (IGU), and Bloomberg.

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44 GAIL Sustainability Report 2020-21

Committees of the Board Committees of the board Number of The governance structure of GAIL is comprised meetings held of 12 sub-committees of GAIL’s Board as on in 2020-21 31.03.2021. Since each committee carries out Sustainable Development 02 specifi c functions, the well-defi ned terms-of- Committee reference enable them to function effi ciently, including the swift resolution of concerns. Stakeholders Grievance Nil The combination of independent and non- Redressal Committee independent directors in each committee not only brings in diversity but also becomes Performance Evaluation, instrumental for the board to be fair and just in Remuneration and Incentives their deliberations. While the board works on its GAIL is a Public Sector Enterprise, the Directors of pre-defi ned strategic focus areas, it is committed the Company are appointed/nominated by the to set its targets to improve the operations Government of India, therefore, the performance throughout the year. The Board of Directors evaluation is also to be done by Government assesses and reviews the functioning of the of India being appointing authority. The role committees, in addition to periodically reviewing of Nomination and Remuneration Committee the targets and goals of the team. is as per SEBI (LODR) Regulations, 2015; The The elaborate information about GAIL corporate Companies Act, 2013 and DPE guidelines on governance practices can be found in our Annual Corporate Governance for Central Public Sector Report for FY20-21. The board has constituted the Enterprises, 2010 as amended from time to time. following committees: The Nomination and Remuneration Committee Committees of the board Number of is responsible for examination of issues relating meetings held to pay and perks other than PRP prior to in 2020-21 consideration by the Board. The performance evaluation of members of the Board is done on Audit Committee 11 both fi nancial and non-fi nancial parameters as Business Development and 08 prescribed in the MoU between GAIL and Ministry Marketing Committee of Petroleum and Natural Gas (MoPNG). The performance evaluation of the top management Corporate Social 02 including CMD, Directors, EDs and GMs consists Responsibility Committee of the parametric scoring of the individual, based Empowered C&P Committee 16 on business, fi nancial, CSR, human resource, Empowered Committee 05 and R&D performance of the GAIL during the (Natural Gas, LNG & Polymer) reporting period. This includes fi nancial as well as non-fi nancial targets to holistically improve the Finance Committee 05 ESG performance of the company. Further details HR Committee 04 of the performance target and its equivalent compensation can be found in the annual report Nomination and 02 and the MOU signed with the government. Remuneration Committee The average salaries of female employees at Project Appraisal Committee 05 the management and non-management level Stakeholders Relationship 01 are INR 124,501 and INR 58,948, while the same Committee for the male counterparts at the executive

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45 Energizing Growth Energizing Possibilities and management levels are INR 276,999 and 3. In FY 20-21, the mean compensation of INR 149,730 respectively. The vesting period all employees (except CEO/CMD) was INR for CMD compensation is 5 years or date of 1,32,051.6 superannuation, whichever is earlier. The ratios 4. The ratio between the CEO’s annual (average female salary to average male salary) of compensation and the median of all the management and non-management levels employees’ compensation is 2.60 are 0.82 and 0.92. During this reporting year, GAIL 5. The ratio between the CEO’s annual experienced no delay in the payment of wages to compensation and the mean of all employees’ the employees. Payments are processed promptly compensation is 2.30 based on the determined pay cycle. Avoidance of Conflict of Interest The increase (from FY19-20 to FY20-21) in We strive to create a culture of ethics and trust by annual total compensation for the organization’s setting the right tone at the top. We are promoting highest-paid individual is 44.78%. The median transparency and accountability amongst all increase (from FY19-20 to FY20-21) in annual our stakeholders to ensure that there is no total compensation for all the employees possible way of conflict of interest in workforce (excluding the highest-paid individual) is 6.38%. operations. Besides, we are creating a trustworthy The ratio of the annual total compensation environment, in which the employees are not for the organization’s highest-paid individual afraid to bring up and disclose their conflicts of to the median annual total compensation for interest. Further to properly manage such issues all the employees (excluding the highest-paid and concerns, a board-level deliberation is carried individual) is 2.60. out. In this regard, GAIL policies on conflict of Performance of MoU for financial year 2019-20 interest are provided next: is under evaluation by DPE. GAIL is expected to In case, a director is directly or indirectly interested achieve a ‘Very Good’ MoU rating for the financial in an agenda/matter, the one abstains oneself year 2019-20. GAIL has achieved Excellent rating in from participation in the discussion of such an most of the parameters, in spite of the restrictions agenda. Each director gives the disclosure of his posed in the last month of the financial year due interest in any company or body’s corporate firm, to COVID-19. or other association of individuals by giving a GAIL has made earnest efforts in fulfilling MoU notice in writing; and the same is put up to the obligations despite adverse effects faced due board. to the COVID-19 situation. Self-evaluation The Related Party Transaction Policy at GAIL of MoU FY 2020-21 will be carried out and enables us to deal with all the issues and concerns submitted to Department of Public Enterprises raised on related party transactions. This policy (DPE) in due time. The compensation related follows requirements set by the SEBI (Listing to the performance is assessed based on the Obligations and Disclosure Requirements) performance evaluation score and the composite (Fourth Amendment) Regulations, 2018 and score. Highlights related to the remuneration are The Companies Act, 2013. Additionally, it provided. comprises materiality policies and guidelines for Highlights of Remuneration and managing related party transactions. Our annual Incentives at GAIL Sustainability Report is the medium, through 1. In FY 20-21, the total compensation of the which we disclose our issues pertaining to the CEO/CMD was INR 1,50,42,650 conflict of interest. 2. In FY 20-21, the median compensation of The details of attendance, number of other all employees (except CEO/CMD) was INR Directorships and Chairmanship/ Membership of 1,14,599.4

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46 GAIL Sustainability Report 2020-21

Committees of each Director and stock ownership audit committee of the board is responsible for details are available in our Annual Report. Please approving the annual audit program and reviews refer to Annual report 2020-21 pg. 93-101. the findings of the audit team and the CAG audit. Internal Control System and their Promoters’ audit of subsidiaries, joint ventures, Adequacy and E&P blocks are also carried out by the internal audit team We have developed promising guidelines, frameworks, and policies as a part of our internal Ethics and Integrity control system in order to strengthen operational We are committed to conducting business, using and financial integrity. Improved controls over the highest ethical standards; and GAIL’s code of the financial reporting process help in developing conduct is designed to further that commitment. more accurate and reliable financial statements Our business processes and practices are directed and make audits more comprehensive. GAIL’s to achieving excellence while managing issues Internal Financial Control System (IFC) is useful related to the environment, health and safety, in developing an updated formal, centralized, human rights, etc. and managed internal financial control GAIL’s Code of Conduct and related circulars set documentation for the company. A Risk Control forth our values, principles, and rules, on which Matrix (RCM) was formed in consultation with we base our operations. We develop and enable external consultants after the IFC compliance sustainable growth and build relationships study. of trust with our clients, employees, and business partners. Employees including senior management and board members, contractors, and all company representatives are required to follow this code of conduct policy mandatorily. We, as responsible corporate citizen, including our subsidiaries, comply with anti-corruption, antiboycott, export control, and trade sanctions laws across our sites. In FY20-21, 151 employees (3.23% of total employees) received training on anti-corruption policies and other organizational procedures. Our strong policy frameworks enable us to grow our business sustainably and safeguard us against corruption and other unethical activities. ÆÆ Received ‘NIL’ comments from Comptroller and Our organizational policies are provided below. Auditor General (CAG) for 12th year in a row in FY 21 »» Code of Conduct, Discipline and Appeal (CDA) Rules/Standing Orders Audit Committees play a critical role in overseeing »» Fraud Prevention Policy internal control. Our internal audit team provides »» Whistle Blower Policy advice and recommendations on the potential »» Code of Fair Disclosure and Conduct gaps and risks, including potential efficiencies »» Practices and Procedures for disclosure of and enhancements to business and processes. The professionally qualified audit team members unpublished price sensitive information. have an academic and professional background »» Code of Conduct to Regulate, Monitor and in accounting, IT, and engineering. This team Report Trading by Insiders assesses the risk management system and »» Code of Conduct for Board Members and reports the same to the audit committee. The Senior Management Personnel

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47 Energizing Growth Energizing Possibilities

We have also incorporated a policy for the During FY 20-21, GAIL received zero corruption determination of materiality disclosure for related cases and no significant risk of corruption timely disclosure of our material concerns to our was identified and reported through this risk stakeholders. This policy is in accordance with assessment process. Regulation 30 of SEBI LODR, 2015. The Right to Information, Whistle Blower Policy, We conduct awareness workshops periodically Fraud Prevention Policy and the Integrity Pact to ensure that our employees and suppliers are encourage the employees to report, in good faith, committed to fighting corruption and make us any suspicious, illegal, unethical, or inappropriate 100% corruption free. Additionally, we undergo activities undergoing in the organization. It helps periodic risk assessments to identify the risks strengthen the organization against corruption related to corruption in our operational units. and make the vigilance system more robust.

Governance Mechanisms

Right to Information: In order to promote transparency and accountability, an appropriate mechanism has been set up across the company in line with the provisions of the Right to Information Act, 2005. We have nominated CPIO/ACPIOs/ Appellate Authorities at our units/offices across the company to provide information to the citizens under the provisions of the RTI Act. GAIL has hosted RTI Guidelines and related information on its website and these maybe accessed at http://www.GAILonline. com/final_site/RTI.html. Besides, MIS Report on RTI Applications, Record Retention Schedule and latest RTI Audit Report has also been hosted under the same link. For the Financial Year 2020-2021, GAIL’s Corporate RTI Cell has 100% disposal rate with respect to RTI Applications received. Further, GAIL has received ‘NIL’ penalty/adverse remark from the Central Information Commission for the year 2020-2021 regarding the second Appeals filed by Appellants.

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48 GAIL Sustainability Report 2020-21

Whistle Blower Policy: We encourage our employees, with concerns about the suspected misconduct, to come forward and express without the fear of retaliation. This policy aims to provide a confidential platform for the employees to raise concerns without being victimized or being harassed in any manner.

Fraud Prevention Policy: This policy is put in place for detection, prevention, and reporting of frauds or suspected frauds/fraudulent activities at GAIL. It applies to frauds or suspected frauds in connection with the business transaction(s) with GAIL committed by employee(s), employee(s) working as an advisor(s), the person engaged on ad-hoc/temporary/contract basis, vendor(s), supplier(s), the contractor(s), the customer (s), lender(s), consultant(s), the service provider(s), any outside agency(ies) or their representative(s), employees of such agencies, and/or any other parties.

Related Party Transaction: In line with the requirement of Regulation 23 of SEBI LODR, 2015 and The Companies Act, 2013, the audit committee of GAIL quarterly reviews the details of related party transactions. Approval of the audit committee/or board/or shareholders, as required, is taken for the related party transactions. Initiatives such as e-tendering, e-payments, bill watch system, etc. have been put in place to improve transparency in the system.

Anti-corruption: GAIL strongly upholds the guidelines and circulars of the Central Vigilance Commission (CVC) for dealing with issues related to ethics, bribery and corruption at the organization level. The policy applies to GAIL and its subsidiaries as well as in Joint Ventures having jurisdiction of GAIL Vigilance Department. To sensitize stakeholders of GAIL against corruption, an annual vigilance awareness week is also organized.

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Transparency in Business trade practices, and violations of anti-trust and monopoly legislation; in which GAIL has been We hold regular meetings and communication identified as a participant, is submitted. with our stakeholders, shareholders, policy makers and peer companies to take necessary actions to We submit the status of the following cases up make better approach towards advocacy. This to FY 20-21, which were settled/pending with helps us in making better ethics, improving and regard to unfair trade practices, anti-competitive strengthening anti-corruption practices, in the behavior, monopolization as identified against aspects of our sustainability initiatives. The Board GAIL: of Directors periodically reviews internal policies 1. GSPCL filed a case against GAIL before related to training, implementation, monitoring Petroleum & Natural Gas Regulatory Board actions. Through discussions and forums, we (PNGRB) claiming Restrictive Trade Practice publicly state clear stances, voice our concerns, (RTP) for not allowing to change connectivity moreover, keep ourselves updated with the from GAIL-PLL to GSPL-PLL connectivity. industry best practices to adapt and improve our PNGRB made rulings against GAIL. GAIL initiatives. challenged the same before Appellate Tax Strategy Tribunal for Electricity (APTEL), which decided in favor of GAIL. GSPCL appealed against GAIL is a public sector undertaking. GoI holds that order before Supreme Court, which is 51.45% of the paid-up equity share capital. Policy pending. related to tax strategies are governed by the GoI. We are in compliance with statutory requirements 2. GSPC Gas filed a case against GAIL, claiming including provident fund, employees’ state RTP before PNGRB but the same was held insurance, income-tax, sales-tax, service tax, duty in favor of GAIL. GSPC Gas has filed appeal of customs, duty of excise, value added tax, cess, against the said order before APTEL and the Goods and Service Tax and any other statutory order of PNGRB has been reversed. Now GAIL dues with the appropriate authorities. We strictly has pressed appeal before Supreme Court, adhere to amendments to tax policies notified by which is pending. the GOI. 3. Sravanthi Energy Pvt. Ltd., Beta Infratech Pvt. Anti-competitive Behavior Ltd. and Gamma Infraprop Pvt. Ltd. have filed complaint before PNGRB alleging RTP against The collective efforts of all our stakeholders GAIL, which went against GAIL vide order help us to encourage and maintain clarity in dated 11.04.2016 and imposed a penalty of our business processes. To make our business INR10 lakh, thereby directing GAIL to cease stronger, we ensure to deter anticompetitive RTP and pay a cost of INR 2 lakh each to each behavior. We follow this by lining up our systems of the party. Further directed to return the BG and practices with the national and international and SD to the parties, GAIL has filed appeal norms at all levels of our businesses. For such before APTEL which is pending. kind of wrong practices, GAIL made no payment of fine and/or settlements in the past 5 years. 4. GSPCL filed a complaint against GAIL before Cases, which were brought to attention through PNGRB, alleging restrictive practice while the dispute resolution mechanisms, are yet to be booking of pipeline capacity on RE Basis. resolved. In addition to that, the status reports PNGRB, while disposing of the complaint pertaining to the anticompetitive behavior, filed by GSPCL for booking of capacity on violations of anti-trust, monopoly legislation, RE Basis, held that practice adopted by GAIL and unfair trade practices; where GAIL has been while booking common carrier capacity is identified as a participant, were also submitted. discriminatory and amounts to restrictive The status of causes related to anti-competitive trade practice in as much as it offers bundled behavior, irresponsible advertising, unfair services to its customers without requiring

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50 GAIL Sustainability Report 2020-21

ÆÆ GAIL Vijaipur Successfully Hosted the 3rd Onshore Security Coordination Committee (OSCC) Meeting of M.P State at Bhopal on 23rd February 2021. GAIL-Vijaipur successfully hosted the 3rd OSCC meeting of Madhya Pradesh state at Bhopal. The meeting was convened by Shri Pramod Kumar, Advisor (Security) and Convenor OSCC Madhya Pradesh Shri Vivek Johri, IPS, DGP, M.P. and Chairman of OSCC M.P. chaired the meeting. Senior officials from M.P Police, Intelligence Bureau, Oil & Gas PSU attended the meeting.

ÆÆ Details on current operations, security arrangements, future plans, problem areas and support required from police were presented by O&G companies. ADGP (Int), M.P. Police has given a general review of law and order and security situation in M.P. and DD-SIB has given an overview of the latest threat perception in M.P. Shri Vivek Johri, DGP and Chairman of OSCC M.P. state gave assurance that, all possible necessary police assistance will be provided to O&G companies in the state of M.P, as and when required. The meeting than ended with vote of thanks to the chair proposed by Capt G Nagaraj, GM (Security), GAIL-Vijaipur.

51 Energizing Growth Energizing Possibilities

them to execute standard GTA on ship or held RTP on part of BPCL and not on the pay basis and puts such restriction on other part of GAIL. BPCL has appealed against the gas suppliers. PNGRB directed GAIL to cease judgment in APTEL and has made GAIL a RTP and has also imposed civil penalty of party. Hon’ble APTEL disposed of the case INR1 lakh on GAIL. GAIL challenged the said without any adverse remark against GAIL / order before APTEL. APTEL vide order dated BPCL. 28.11.2014 dismissed the appeal of GAIL, 2. GAIL filed complaint regarding abuse of post which GAIL preferred an appeal before dominant position by M/s Eagle Burgmann the Supreme Court. The Supreme Court vide India Private Limited in Competition order dated 31.01.2016 set aside the order Commission of India (CCI). CCI vide Order of PNGRB and remanded back to PNGRB dated 10.03.2021 ruled that the market for fresh determination, taking the affiliate structure and construct do not appear code of conduct into account. However, to indicate any significant market power the PNGRB once again held RTP against possessed by any of the players including GAIL. GAIL challenged the said order before the Eagle Burgmann. In the absence of any APTEL wherein vide order dated 28.02.2019, dominant position enjoyed by the Eagle the matter was referred back to PNGRB for Burgmann, it is unnecessary to delve into the redetermination as per PNGRB Act. However, issue of increase in the prices of mechanical GSPCL filed appeal in the Supreme Court seals. In view of the above, the Commission is against APTEL order wherein notice has been of the view that no case is made out against issued and status quo to be maintained. The the Eagle Burgmann for contravention of the matter is pending yet. provisions of Section 4 of the Act, i.e., abuse 5. M/s. Pioneer Gas Power Ltd has filed a of dominant position, and the information complaint alleging RTP against GAIL for is hence, ordered to be closed forthwith in charging Ship or Pay charges under the GTA. terms of the provisions contained in Section The said complaint is pending before PNGRB. 26 (2) of the Act. 6. GIPCL- GIPCL had filed complaint against Stakeholder Grievance Redressal GAIL before CCI alleging abuse of dominant position in the market. However, CCI declined GAIL allows its stakeholders to engage with them the complaint. But GIPCL appealed against systemically and to enable them to express their that order before Competition Appellate individual views and opinions by establishing Tribunal’s (COMPAT), which directed various systems and processes. Stakeholder investigation by DGI against GAIL for such Engagement and Materiality Assessment chapter abuse. GAIL has filed appeal against the said describes all those systems and modes of order before the Supreme Court, wherein the engagements in detail. We provide opportunity to direction for investigation has been stayed stakeholders in our value chain to obtain effective and is pending before the Supreme Court. redressal of violation of their rights through enabling them to receive access to relevant and 7. Rathi Special Steel, Rathi Bars and Rathi reliable information regularly. Dakshin Steel and Ors. have filed complaints before CCI alleging anti trade practices under During the reporting period, 351 complaints Competition Act. However, same was rejected were received from all the stakeholders, out vide order dated 08.11.2018. Aggrieved by CCI of which 95.16% complaints were resolved by judgment, Rathi Special Steel, Rathi Bars and the management. The remaining cases will be Rathi Dakshin Steel and Ors. have appealed carried forward to the next period for resolution. before NCLAT. The matter is pending in NCLAT. The complaints were received from various stakeholders including shareholders/investors, Disposal During 2020-21 customers, employees, contractors, suppliers 1. Sabarmati filed a case against GAIL and BPCL (related to Integrity Pact Program) and from the before PNGRB claiming RTP, which PNGRB public.

52 GAIL Sustainability Report 2020-21

Vigilance Initiatives at GAIL »» In order to have uniformity in the tender conditions for the submission of EMD & CPBG Guidelines and circulars of the Central Vigilance in the form of DD/ Bank Guarantee by the Commission are followed while dealing with bidder/ Vendor, provisions have been made, issues related to ethics, bribery and corruption which describes that EMD and CPBG will not at GAIL and its subsidiaries as well as in joint be accepted in case the same has to reference ventures (JVs) having jurisdiction of the GAIL of remitter/financer other than bidder on the Vigilance Department. aforementioned financial instrument of EMD/ In order to ensure transparency, equity and CPBG. competitiveness in procurement, GAIL has »» To avoid the time gap between the date of adopted the provision of Integrity Pact in its complaint uploaded by the complainant tenders of value more than INR 1 crore for works in the Online Complaint system on GAIL’s and undertaken procurement of goods and services as recommended by the Central Vigilance website and the date when Complaint system Commission. Dr Meeran Chadha Borwankar, IPS is accessed by Vigilance Executive, provision (Retd), Mr. Ajit Mohan Sharan, IAS (Retd.) and Mr. for generating auto e-mail alerts have been Sanjeev Bihari, IRS (Retd.) have been appointed as developed. In FY 20-21, we received 101 Independent External Monitors for looking into complaints under vigilance, 114 complaints complaints as per the provision of an integrity (including previous year complaints) were pact. successfully resolved. GAIL Vigilance Department carries out regular Grievance Redressal Mechanism surprise checks, periodic inspections, and Our stakeholder responses and concerns are examination of CAG /internal audit paras for two of our top priorities. The grievance redressal the detection of vigilance angles, if any. Various mechanism allows reception and redressal of system improvements have been undertaken complaints or grievances by our stakeholders, to ensure greater transparency and automation enabling prompt actions on any issue raised by of processes for reducing manual intervention. them, thus allowing for better services. We have Review of policies and procedures has also been developed an online grievance redressal forum carried out, which can minimize corruption and named ‘Samadhan’ that is accessible to all of our ensure all-round good governance. To spread stakeholders to raise their concerns. Complaints vigilance awareness and address grievances; on vigilance, a blatant violation of systems and vendor meets, customer interactive meets, corruption, forgery, cheating, misappropriation, vigilance awareness workshops/sensitization favors, willful negligence, reckless decision programs, and engineer-in-charge coaching are making, procedures, and irregularities in the held periodically for all the stakeholders. exercise of delegated power can be raised and During the period, based on the investigations resolved through our online portal: http:// of the cases, the following system improvements GAILonline. com/onlineComplants.html. At every have been implemented: location of our operation there is also a provision to raise complaints or concerns directly with the »» To ensure greater transparency, additional factory head through the OIC Sampark email. information viz Health and Safety Policy, Information Security Policy, Quality Policy and In order to provide citizens and the public at Risk Management Policy has been published large with a grievance redressal mechanism, on GAIL website. In addition, the list of parties/ all the written complaints received from all vendors banned/ put on holiday by GAIL is the workplaces and centers are uploaded to also being displayed on GAIL’s website. the Centralized Public Grievance Redressal

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53 Energizing Growth Energizing Possibilities and Monitoring System (CPGRAMS), which is During FY 20-21, a total of 201 public grievances accessible to all the citizens, who have lodged through centralized public grievance redress and this complaint. CPGRAMS is a Government of monitoring system (CPGRAMS) were received India Portal, aimed at providing the citizens with during the reporting period. All those received a platform for redress of their grievances, where complaints on CPGRAM portal are resolved under complaints are directly received by the MoPNG. the grievance redressal system. Grievances/complaints received through CPGRAMS - FY20-21

Environment Labor practice Human rights Society Source of grievances/complaints Internal External Internal External Internal External Internal External Total stakeholder stakeholder stakeholder stakeholder stakeholder stakeholder stakeholder stakeholder 0 06 02 41 Nil Nil Nil 152 201 Risk Management we adhere to all the standards and keep pace with our industry peers, we map and manage Our approach towards a sustainable environment both financial and non-financial risks through to work and grow is focused on achieving a Enterprise Risk Management (ERM). zero injury/ fatality/accident environment through preventive precautionary measures. Risk assessment of several factors (climate change, The precautionary approach enables our fuel prices, energy supply security, etc.) that decision-makers to adopt measures when could potentially influence our business growth an environmental or human health hazard is is studied and analyzed through Enterprise Risk uncertain and the stakes are high. Management. As a part of the process, the risk management plan includes business continuity Risk Management is an ongoing process of planning, risk communication, resource identifying, analyzing, and managing risks allocation, etc. within all the operational units of GAIL. While Following framework describes risk management structure and risk management process at GAIL:

Risk Management Framework

Organization and Reporting Structure for Risk Management Risk Management Process

Board of Directors Establishing the context

Risk Management and Review Monitoring Audit Committee Risk Assessment Committee Risk Identification C&MD or Nominated Director

Corporate Level Risk Risk Analysis Chief Risk Officer Steering Committee Risk Evaluation Unit Level Steering Committee Communication and Consultation Communication

(Bottom-up) ------approach ------(Top-Down) ------approach (Bottom-up) Risk Treatment Risk Unit (Site 1) Risk Unit (Site 2) Risk Unit (Site N)

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Overarching Management Approach Our comprehensive policy framework such as the risk management policy is deployed on both the corporate and business levels by our committed and independent Risk Management department to improve our approach to managing risks to meet the demands of an evolving business environment. The risk management policy enables us to take proactive measures to review, report, and mitigate risks at our organization while contributing to the sustainable business growth. The ERM Framework provides an integrated framework to periodically review the organizational risks by the boards by providing ÆÆ We map and manage both financial and non-financial risks through Enterprise Risk an objective view of the overall control system Management (ERM) that leads to the overall risk management at GAIL and its subsidiaries. Additionally, it provides a Unit level risks including Social and Environmental deeper understanding of the possibilities for the risks are mapped and being monitored quarterly improvement in businesses practices related to through Unit level Risk Steering Committee the operations. headed by unit OICs/ Functional Heads. Mitigation measures are also devised and monitored by The ERM has been rolled out across the respective units. GAIL has identified top Corporate organization in all assets including zonal Key Risks which includes Market, Logistic, marketing offices. The highest governance body Strategic, JV Subsidiary and Financial Risks. in reviewing the effectiveness of GAIL’s risk management processes is the Board of Directors. Risk Management and Strategic The board, through the Audit Committee, Risk Initiatives Management Committee, Corporate Level Risk GAIL’s effective risk management initiatives Steering Committee oversees the establishment enable us to achieve our organization’s objectives and implementation of an adequate system of and safeguard operations while complying with risk management across the organization. The legal, regulatory, and societal expectations. By Chief Risk Officer (CRO), site-level risk steering managing risks, we are enhancing our capabilities committee chairman and Corporate Level Risk to better respond and adapt to the changing Steering Committee review various types of environment. risks whether existing and or anticipated in the short, medium and long-term in future. Risk Risk management involves a 3-step assessment Management Department apprises the Corporate consisting of identification, analysis and Level Risk Steering Committee (CLRSC) of evaluation of the possible risks that can impact executive directors chaired by the Director (BD) the business operations. This process helps quarterly, RMC of functional directors chaired oversee the strategic direction and management by the Director (Finance) biannually and Audit of our business operations, including the effective Committee biannually and the Board annually. management of risks. A risk register review report is submitted by the unit risk owners quarterly by the 10th day, following the quarter-end, and a risk database review report is submitted

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55 Energizing Growth Energizing Possibilities

the impact of greenhouse gases and zero waste disposal. Various units are in process of identifying the risk due to climate change. There are specific groups within GAIL HSE coordinating all risks pertaining to environmental and safety issues. The CSR group is responsible for coordinating all risks pertaining to Social and CSR related issues. These groups must ensure all the current and expected exposures of Environmental, Economic and Social risks are identified, qualitatively and quantitatively evaluated, analyzed and appropriately managed by placing effective mitigation plans. Both groups update the Management of GAIL periodically. There are specific groups in GAIL HSE and CSR to coordinate all the risks associate matters. These groups have to ensure that all the current and expected risk exposures of environmental, annually by 15th June, following the financial economic and social risks are identified, year-end through risk management online Risk qualitatively and quantitatively evaluated, Management System (RMS). analyzed and appropriately managed by placing effective mitigation plans. The Company assess all types of risk including business and financial risks as well as the non- The detailed risk are can be referred from financial risks such as climate change, fuel prices, Management, Discussion and Analysis section energy supply security that could potentially of GAIL Annual Report FY 20-21 through GAIL influence and impact the business in future. Website. The identified risks are assigned “Risk Rating” based on their impact on the organisation and the likelihood of the occurrence. “Risk Velocity” is taken into consideration based on basis the time between the occurrence of an event and its impact on the Company. As per approved Risk Management policy, Corporate Level Risk Steering Committee (CLRSC) is required to review the status of all Corporate Level Residual Key Risks including economic, environmental and social, if any, on a quarterly basis. Prior to placing before Audit Committee, the status is deliberated in the Risk Management Committee (RMC). The status is put up to the Board annually for approval. GAIL is very sensitive to the environmental impact of our operations. ÆÆ GAIL Risk management involves a 3-step Efforts are always in place to minimize / neutralize assessment consisting of identification, analysis and evaluation

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56 GAIL Sustainability Report 2020-21

Key Risks and Mitigation Measures Some risks are easier to manage while others often require an adequate amount of time. Hence, it is difficult to bind risks in terms of the financial year. GAIL Corporate Level Risk Steering Committee has identified risks and mitigation actions to improve the operational performance. We are taking appropriate action to resolve/deliberate the identified risks. For detailed risks, stakeholders may refer to MD&A section of AR.

S. Risk Risk Description Major KPI of the Mitigation Plan No. Category Risks 1 Markets Risk Market Risk of LNG Impact on margins Volume risk has largely been linked with HH, due to change in mitigated up through various in case of adverse demand /supply measures such as Destination Swap movement of scenario. of LNG volumes, Sale in International crude oil price, Markets, Time Swap and Hedging. Fluctuation in continuously international Additional efforts for mitigating the suppressed spot risk are also under progress by way prices of crude LNG prices and of ramping up of marketing of LNG oil resulting expected increase volumes in domestic market and / fluctuation in spot in domestic gas or sell LNG in international markets gas prices lower volume. from time to time based on market side trend. conditions. HH linked cargoes are being allocated to existing sales in the Indian market on a case-to-case basis and hedging transactions are also being entered into, to ensure profitability on such transactions. 2 Markets Risk Risk of Pricing comparison Regular initiatives to increase Underutilization of natural gas customer base, promoting use of of pipelines due to to alternate/ gas in new markets including close sluggish growth conventional fuels. interaction with GoI for favourable in gas energy policies for development of gas consumption. market. More customer friendly flexible GTA/GSA for small customers Developed framework agreement for deferred delivery services on gas transportation. Approved guidelines on “Amicable settlement of Disputes with Consumers/shippers under Gas Transportation Agreement” applicable for small Consumers/ shippers up to 0.1 MMSCMD.

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57 Energizing Growth Energizing Possibilities

S. Risk Risk Description Major KPI of the Mitigation Plan No. Category Risks Facilitate prospective customers by online NG capacity booking through website Discussion with Shippers for booking of capacity. Pursue with PNGRB / MoPNG for synchronization and prioritization of CGD bidding along with existing and upcoming pipelines. 3 Markets Risk Risk of reduction Impact on margins Optimization of feedstock and in margin of due to change in Conversion Cost (C2/C3 & Polymer). Petrochemical due demand / supply Close coordination between to lower industry scenario and input operation and marketing for demand, lower sale cost. optimising margins, including price & high input new grades development and cost. marketability. Longer Production runs are planned for reduction in cost of production. Efforts for expanding newer domestic and International markets. 4 Strategy Risk GAIL’s Shift in Efforts are being made for Restructuring Risk. Government monetization of assets and priorities and structuring the same in a manner to Policy changes. ensure maximum value accretion, while minimising operational impact, Asset within provisions of SEBI Regulations monetization. on INVIT and GoI guidelines. Creation of TSO GAIL supports creation of an independent TSO to manage and provide access to common carrier capacities of various pipeline operators.

5 Cyber Inadequate Intrusion attempts The IT systems operate on latest security Risk controls to protect version of software. Software Reporting by the systems against patches and threat definitions are stakeholders on malicious attacks being updated regularly to keep the Phishing attempts. may result in loss of systems less prone to cyber-attack. data and disruption Several layers of cyber security of operations. systems are in place and continuously being monitored through Security Operation Centre (SOC) to protect the systems and data from external/ internal threats.

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58 GAIL Sustainability Report 2020-21

S. Risk Risk Description Major KPI of the Mitigation Plan No. Category Risks Regular audit and updating of the operating systems and software used in operations and plants, for compatibility with OEM systems.

6 Operational Major LPG Leakage Third party Regular monitoring of health & Risk in RT / SV Stations activities near the Integrity of pipeline as per laid down / LPG Pipeline pipeline without Integrity Management System. and in Natural Gas permission. Monitoring pipeline leakages by Pipeline. Online Leak Detection System (LDS) Pipeline Intrusion Detection System (PIDS) has been implemented. Emergency Response and Disaster Management Plan (ERDMP) and Evacuation Standard Operating Procedure is in place. Hot / Mobile flare system is in place.

Advocacy through Coalitions and Associations 13. Indian Society for Training & Development 14. Asian Professional Security Association We continuously engage in public policy debates (APSA) and legislative developments directly through 15. British Safety Council trade and industry associations. In FY 20-21, 16. National Fire Protection Association (NFPA) GAIL was a part of 31 National and International 17. Transparency International India institutions, the list of which is provided below: 18. Pipeline Operators Forum (POF) 1. Indian Wind Power Association (IWPA) 19. Project Management Associates 2. Chemical & Petrochemicals Manufacturer’s 20. Standing Conference of Public Enterprises Association (CPMA) (SCOPE) 3. International Group of Liquefied Natural Gas 21. Global Reporting Initiative India Private Importers (GIIGNL) Limited 4. Indian Centre for Plastics in the Environment 22. Federation of Indian Chambers of Commerce (ICPE) and Industry (FICCI) 5. Natural Gas Society (NGS) 23. TERI CBS & CSO Forum 6. Biogas Indiantech Association 24. Federation of Indian Petroleum Industry (FIPI) 7. International Swaps and Derivatives 25. India Myanmar Chamber of Commerce (IMCC) Association (ISDA) 26. Centre for Battery Engineering and Electric 8. Confederation of Indian Industry (CII) Vehicles (CBEEV) 9. All India Organization of Employers (AIOE) 27. Quality Circle Forum of India 10. National Institute of Personnel Management 28. United Nation Global Compact (UNGC) (NIPM) 29. International Market Assessment CFO Forum 11. World Environment Foundation 30. Society of Petroleum Accountants 12. India Energy Forum 31. Institute of Directors

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GAIL is part of various prestigious industry bodies (FICCI) Executive Committee and Co-Chair of and associations, which provide a platform to FICCI Hydrocarbon Committee. Hydrocarbon discuss industry issues and convey the industry committee endeavors to deliberate on issues voices to the government in a collective way to related to energy security of the country and make better inclusive policies and bring reforms. supplement various efforts of the Government This forms a significant basis for advancement of of India and other bodies engaged in this area public good. To create a positive and nurturing through its intellectual input. CMD, GAIL is also a environment for businesses and stakeholders, member of the Oil Industry Development Board during this reporting year, GAIL has contributed (OIDB). INR 1.9 crore to support various trade association GRI (Global Reporting Initiative) is an independent, and think tank groups. GAIL also regularly international organization that helps businesses interacts with PNGRB, the regulatory body to and other organizations take responsibility update them on current status and industry for their impacts, by providing them with the viewpoint. In FY 2020-21, GAIL was part of the global common language to communicate those following associations impacts. GAIL is a founding member of GRI South GAIL is one of the three full members of Asia Consortium since 2013. As a member, GAIL International Group of Liquefied Natural Gas has strongly contributed to GRI’s mission and Importers (GIIGNL) in India. GIIGNL offers GAIL a further development of the GRI Standards. GRI forum for exchange of information and experience consolidate best practice into the global common amongst industry counterparts to enhance safety, language for sustainability reporting, enabling reliability and efficiency of LNG imports activities companies, investors, policy makers and other and the operation of LNG imports terminals. stakeholders to manage and evaluate corporate activities in support of sustainable development. GAIL is member of the Federation of Indian Petroleum Industry (FIPI) and part of the GAIL is a member of CPMA (Chemicals & Governing Council. FIPI has many specific Petrochemicals Manufacturers’ Association), executive committees of GAIL’s interest, having which is the apex forum, representing the Indian member representations from GAIL. FIPI functions Petrochemical Industry. Established in 1993, as oil industry interface with the Government, the Association offers its members a podium to regulatory authorities, public and representative collectively present their ideas, voice concerns, bodies of traders in India to work on issues such and offer suggestions on relevant issues. It as optimization of resources, promoting safety, provides a linkage between the industry, the tariff, investments, healthy environment and Government, and the society. It interacts with the energy conservation among other issues related policy authorities and industry associations to to industry. develop and maintain harmonious and conducive business conditions. GAIL is an active member of Standing Conference of Public Enterprises (SCOPE), which is the apex GAIL is a member of TERI- Council for Business body, representing the entire spectrum of public Sustainability (TERI-CBS), which is an industry sector enterprises (PSEs) in India. SCOPE has led consortium of sustainability practitioners. representations in various high-level Committees/ GAIL, along with TERI, has developed a document, Boards and helps its member PSUs to reach their which outlines the Indian corporate vision on voice to various platforms. various aspects of tackling climate change and aligning the vision with Government schemes in CMD, GAIL is the member of Federation of this direction. Indian Chambers of Commerce & Industry

60 Sustainability at GAIL 05

Location: Pata (Uttar Pradesh) Sustainability at GAIL

GAIL is committed towards leading the gas Sustainability Governance industry with sustainability anchored at the core Strong governance forms the foundation of our of its strategy and operations. Sustainability sustainability practices and stems from our values for us is managing the available resources to of integrity, ethics, respect, customer, safety, optimize operations for greater safety, reliability, excellence, technology and innovation. We have effi ciency, environmental and social awareness. a robust governance structure with a dedicated Therefore, we strongly emphasize on embedding 4-member board-level Sustainable Development sustainability into our business operations. Committee (SDC), which helps us implement Our sustainability roadmap; created based on our sustainability strategy across the business, stakeholder requirements, national priorities and manage goal setting, reporting processes, the growing natural gas consumption, provides strengthen relations with external stakeholders, us a guidance in ensuring that we have a positive and ensure the overall accountability across impact on the environment. We are intending to the organization. Our sustainability governance develop proactive and transparent sustainability aims to ensure group’s commitments to diff erent strategies by identifying new opportunities stakeholder groups, including customers, arising out of the transition to a low carbon consumers, employees, shareholders, suppliers, economy. decision-makers and representatives of the Sustainability Policy community. The approach towards sustainability is GAIL had a 4-member Board level Sustainable encapsulated in our sustainable development Development Committee in place. As on 31 March policy, which helps us in aligning our 2021, the committee comprises of GAIL’s Chairman sustainability commitments and facilitates and Managing Director (CMD) as its head along business in a responsible manner. Concern for with Director (HR), Director (Finance) and Director the environment and promoting a broader (Marketing) as its members for deliberation sustainability agenda are integral to our business on organization’s sustainability agenda. The and we aim to promote sustainability practices Committee also reviews the emergency response throughout our value chain. Currently, we have plan and the HSE performance of the company. In established a company-wide process to identify, FY 20-21, the SDC met twice. address and report sustainability-related matters. Sustainable Development Steering The policy can be accessed from the Sustainability Committee section on GAIL’s website (https://gailonline.com/ The Sustainable Development Steering SBPolicy.html). Committee comprises of the departmental

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Leapfrogging in Sustainability practical manner, which is why, the other projects in vision under the guidance of the GAIL is on a path to work with the best PSA will be to work towards making GAIL knowledge and expertise holders, by Carbon Neutral or Net Zero GHG Emissions signing an Memorandum of Understanding company by 2035. This can substantialize by (MoU) with the Principal Scientifi c Adviser setting ambitious goals, which will be based (PSA) to the Government of India. This on the capacity of GAIL while at the same collaboration will set stones to the journey time encouraging innovation and creativity. ahead to establish relevant impactful The sharing of ideas and knowledge will projects on topics, which will include setting be a continuous and fruitful collaboration, up Aff orestation projects following the extending to exploring new ways of Waste Miyawaki technique to enhance the carbon Management at GAIL, and mainstreaming sink, preserve biodiversity, mainstream more SDGs with the business actions and nature based solutions to deal with issues of decisions. pollution and ultimately address the fi ght of climate change. Our management is already in action to fulfi ll our carbon neutral ambitions. Our Chairman The importance of decarbonization has been felt across the globe. We recognize the and managing director has announced the urgency of climate change and the need installation of 1,000 MW of renewable energy to work collaboratively in a scientifi c and to make our operations carbon neutral.

Projects Financial and physical savings Dibiyapur - Renovation of Sewage Treatment Plant has 11.89% reduction of Ground been completed at GAIL Vihar colony Water Consumption Vaghodia - Registration and successful achievement 2,20,482 units of electricity of GreenCo rating-SILVER from Confederation of Indian have been generated through Industries after thorough rounds of assessment. the renewable energy source Installation of Rooftop Solar panel 190 KWp in Central 21,460 units saved warehouse Replacement of lightings within plant premises with LED lights Vijaipur - Installation of fl are gas recovery unit Financial savings of INR 12 crores / Annum Samakhiali – Installation of rooftop solar power panel of Total Savings - INR 269,894 40KWp capacity at IPS Samakhiali above Switchgear room Chhainsa – Replacement of traditional irrigation system of Power saved- 127 MWh per lawns with pop-up sprinkler type micro irrigation for lawns year Gandhar – Creation of a rainwater harvesting pond within Approximately 2,000 m3 the premises for collection of natural run-off and recharging Water utilized for horticulture of ground water purpose

63 Sustainability Outlook 2020-21

• INR 4,890 crore - (Profi t After Tax) • INR 56,738 crore - Revenue (Gross sales) • Over 13, 718 km of natural gas pipeline network

ECONOMIC • Total petrochemical production capacity 1090 KTA

• CSR projects- Expenditure of INR 147.67 crore • GAIL achieved an “HSE Score” of 96.98 against the internal target of 94.5 in FY 21 SOCIAL • The customer satisfaction index stood at a remarkable 96 in FY 21 • GAIL has signed 5 investment agreements worth INR 15.30 crore with start-ups focused on CBG • Received ‘NIL’ comments from Comptroller and Auditor General (CAG) • 78.2 lakh domestic PNG connections in the country • GAIL has contributed INR 50 crore to the PM funds and INR 30 crore on acquiring medical equipment, oxygen etc to help in the fi ght against COVID 19

• 130 MW – Renewable energy portfolio (118 MW– Wind and 12.26 MW - Solar) • 40% – Landholding covered by green belt and water bodies • INR 64.9 crore spent on energy conservation equipment • 64 Sustainability projects registered • Renewable energy generation– 151354 MWh of electricity has been generated ENVIRONMENT

• GAIL has commissioned its fi rst FGRU project that reduces emissions of 11100 tCO2 • Engaged in collaboration with RMC to setup compressed biogas plant capacity of 150 tonnes/day • Installations of HRSG to utilize heat from gas turbines exhaust expected to save 1171kg/hr fuel

102-7, 102-26

64 GAIL Sustainability Report 2020-21 heads, HoDs of C&P, HR, SD, F&A, Risk, CSR, Monitoring and Reporting CC, CST, Mktg-PC, Mktg-Gas and HSE, making Sustainability Projects it multidisciplinary and diverse. It assists the Dashboards board level committee in fulfilling its oversight responsibilities concerning sustainability, GAIL has developed dashboards for real-time which include the strategy, operational model, monitoring of essential equipment built with reporting and frameworks. It is also responsible in-house resources. The digitizing initiative for executing the company’s sustainability goals covers significant energy users (SEUs). Gas as well as risk and performance management Turbines, Heavy Duty Steam Turbines, Centrifugal and ensures compliance with the policy through Compressors, Gas Cracking Furnaces, Boilers, direct supervision of all sustainability initiatives. HRSGs, other process heaters, Extruder units, and Annual Sustainability Workplan FY other SEUs are among the key SEUs discussed. 20-21 E-Magazine’ Sanjeevani GAIL, with its futuristic approach and A Sustainable Journey depicting the Environment commitment, towards India’s energy security, is Management at GAIL, Pata released on 01 diversifying its basket. We are actively pursuing January 2021. The theme of the magazine was opportunities for acquisition of shale gas assets ‘Biodiversity’ covering sustainability initiatives at the Pata site. It also included articles, poetry in overseas countries and making efforts to shift paintings and photographs from employees and to a cleaner future. their family members. The objective of the theme During the reporting year, we executed several was to bring sensitivity and commitment towards projects and programs within the Annual protection of the environment. Sustainability Workplan across numerous sites in GAIL Included in FTSE4Good Index order to drive sustainable growth within the firm. Series »» A total of 64 sustainability projects were GAIL’s continuous inclusion in the FTSE4Good registered across sites for FY 20-21 and over Index series over the years as a part of London INR 80 crore. Stock Exchange sustainability index affirms our »» A bilateral power purchase arrangement of strong commitment towards ESG practices in the 20 MW has been finalized for GAIL Pata with Oil & Gas Sector. a leading power trading company through GAIL Publishes First Integrated open tendering. Report »» GAIL and Ranchi Municipal Corporation GAIL is also upgrading the content and quality of (RMC) have signed an agreement for non-financial performance in the annual report setting up Compressed Biogas (CBG) plant and has published its first Integrated Report for processing 150 tonnes per day (tpd) of in alignment with the guidelines of the Organic Municipal Solid Waste (MSW). The International Integrated Reporting Council (IIRC) CBG plant will produce 5 Tons of CBG per day and the SEBI notification of February 2017. and approximately 25 Tons of Fermented Bio GreenCo Assessment of the sites Manure per day. GreenCo Rating is the “first of its kind in the »» We have implemented an energy World” holistic framework that evaluates management system (ISO 50001:2018) across companies on the environmental friendliness major locations. of their activities using life cycle approach. Implementation of GreenCo rating provides

65 Energizing Growth Energizing Possibilities leadership and guidance to companies on how to corporate responsibility and sustainability make products, services and operations greener. landscape to demonstrate their inspirational Industry personnel are trained on the latest Green presence in the sustainability field. Through the concepts and facilitated for implementing better strong multi-stakeholder network of GRI South systems and implementing global best practices Asia, Consortium members ensure that South Asia in green. United Nations Industrial Development insight supports the work of GRI – and helps to Organization (UNIDO) has acknowledged make sustainability reporting standard practice. GreenCo as one of the top 50 best practices in the Some of the ways through which GAIL engaged world promoting green industry initiatives. with GRI GAIL has embarked upon the journey of adoption »» Engagement with GRI Board: Exclusive session of the GreenCo Rating. This rating helps in making and interaction between GAIL & GRI Board products, services and operations greener. Several sites had already initiated the implementation »» SDG Agenda 2030 South Asia Dialogue of the same. Administrative approval for Forums: A breakthrough initiative to implementation of GreenCo rating at GAIL Hazira understand SDGs in a business context in the Compressor Station from CII-Sohrabji Godrej South Asian region through a peer-learning Green Business Centre, Hyderabad completed. platform Vaghodia and Vijaipur have received silver rating »» In-house Consortium workshop for GAIL for their exceptional performance in FY 20 and Board, senior and mid management level FY 21 respectively. staff on sustainability topics Global Reporting Initiative »» GRI Standard Alignment Check service done Community Member on GAIL’s sustainability report GAIL has been a founding member of GRI South »» GAIL representation as a speaker on Global & Asia Consortium since 2013. GRI South Asia National forums of GRI Sustainability and Transparency Consortium is a platform for key players in the South Asian

66 Stakeholder Engagement and Materiality 06

Wedelia urticaetfolia - Nettle-leaved Wedelia Location: Gandhar

102-20, 102-26 Stakeholder Engagement and Materiality

The Indian economy is set to grow faster and has undertaken ‘Rethinking GAIL Sustainability cleaner in this decade, and the country is Aspirations- Engagement Survey 2020-21 as a key embarking on a gas-based clean economic step to gather our stakeholder’s feedback. Around journey. We are witnessing a transition enabled 202 stakeholders from the selected stakeholder by digitization, the COVID-19 pandemic, and the groups have participated in the survey. The ambitious aspirations of the Government of India outcome of the materiality assessment is utilized to achieve the Sustainable Development Goals. in defi ning the report content and the boundaries In addition to that, ESG goals have emerged as of this year’s GAIL sustainability report. a focus area for companies across the world and Strengthening Stakeholder Relations have been increasingly a priority for industry leaders such as GAIL. Creating value for all the stakeholders in our company’s value chain and beyond has always As the leading gas company in India, GAIL, along been our vision. To actualize this vision, we with its valuable stakeholders is catalyzing this communicate our progress towards building a transition while fostering social, economic, and sustainable company and our eff orts to create a environmental progress. To fuel the transition to responsible fi rm for our stakeholders periodically. a cleaner future while taking into consideration We believe that, by actively involving them with of the contemporary sectoral changes, we are us, we are developing a rigid and transparent identifying its impacts on our stakeholders and partnership and enabling us to disclose the vice versa. Hence, determination (materiality challenges and progress made by our company. assessment) of key aspects (material topics) that impact GAIL’s operation as well as our stakeholders Eff ective engagement helps us in identifying remains an important exercise. This enables matters that are material to our business GAIL to align its sustainability and business model and operational geographies. With that objectives with societal needs and expectations, understanding, we realign our business practices thereby ensuring long-term sustainability and with the industry best practices, expectations, enhancement of stakeholder value. interests and concerns of our stakeholders. Integrating the voices of stakeholders into GAIL’s list of GRI Material Topics represents our business strategy results in unexpected the issues that areas of priority to our business opportunities to improve, innovate and operations as well as to our stakeholders. collaborate on shared challenges to upgrade the Considering the dynamic nature of the sectoral company’s overall performance. demands and stakeholder expectations, reassessment of the company’s sustainability We have identifi ed priority stakeholder groups strategy and materiality determination by understanding their relevance and ability to periodically is imperative. During FY21, our team provide value to our business. By considering

102-20

68 GAIL Sustainability Report 2020-21 the parameters and stakeholder attributes to identify material topics that are relevant to defi ned by global standards such as GRI GAIL. Each step is defi ned while taking multiple Sustainability Reporting Guidelines, the AA1000 global reporting standards into consideration. Series including AA100AP and AA1000SES, This comprehensive and strategic materiality National Guideline for Responsible Business assessment framework has enabled GAIL to Conduct (NGRBC), IFC Performance Standards identify, review, and analyze potential ESG issues on Environmental and Social Sustainability, and that could impact GAIL’s operations and its Integrated Reporting , we have mapped stakeholders. Through the materiality assessment our stakeholders as it contributes to the quality this year, we have recalibrated the GAIL materiality and credibility of the materiality process. The six matrix considering contemporary relevance. This parameters of identifi cation and prioritization are information that has been made accessible to all provided below. of our respected stakeholders is a promise to our sustainability vision. At GAIL, we interact with multiple stakeholders throughout the year. By utilizing the The outcome of the materiality analysis was aforementioned processes, we have identifi ed integrated into GAIL’s overall corporate strategy 13 key stakeholder groups including the public to amplify GAIL’s sustainability aspirations. at large while the stakeholder engagement The Right Way to do the Right exercise carried out during the reporting period. They are further classifi ed into external and Things: Materiality Assessment internal stakeholders. The internal stakeholders Methodology [3] comprise all the employees, whereas the key The materiality assessment consists of six external stakeholders include the remaining 12 phases including defi ning, identifi cation and stakeholder groups. prioritization of material topics and development 1. Government and other Regulators of materiality matrix, and review. In FY 2021, we conducted a novel materiality assessment and 2. Financial Institutions the stepwise process is provided. 3. Employees Phase I: Defi ne Purpose & Scope 4. Suppliers This fi rst preparatory phase is to identify and defi ne 5. Customers the boundaries of the materiality assessment. The 6. Joint Ventures and Subsidiaries purpose of the materiality assessment includes: 7. Industry Associations 1. Providing an opportunity for GAIL to identify 8. Community key ESG risks and opportunities 2. Positioning business objectives with 9. Contractors/Implementing Agencies stakeholder expectations and interests 10. Academic and Research Institutions 3. Improving the management practices of 11. NGOs /Civil Society Organizations stakeholder risks and organizational risks 12. Public at large 4. Disclosing relevant outcomes while reporting on ESG aspects 13. Media 5. Identifying future trends that could impact Finding Focus Areas: Materiality the business continuity and set targets Assessment to improve business and sustainability performance A six-phased Materiality Assessment and Stakeholder Engagement process was designed

102-21

69 Energizing Growth Energizing Possibilities

Phase II: Identify Stakeholders and Phase VI: Review Potential Material Topics Relevant policies and organizational practices are Once the boundaries are set, stakeholder groups strengthened to balance the triple bottom-lines were identified and prioritized using the six efficiently. parameters of identification and prioritization as Creating Purpose-led Value- mentioned in the previous section. Prioritization of Material Topics [4] A total of 65 sustainability aspects are evaluated Identification and prioritization of material topics and categorized into broad themes after and development of a materiality matrix are some conducting the detailed sector guidelines and of the most critical steps towards understanding standards review, energy sector analysis, energy a company’s sustainability approach and sector investor focus and best practices, peers and performance. competitors review, government missions and initiatives and digital and social media analysis. The material topics are a direct representation GAIL’s strategic focus lies in creating of business and stakeholder concerns that are purpose-led value for all the generally redressed through our grievance stakeholders and contribute to nation- redressal mechanism periodically. building, environmental protection, Phase III: Prioritize Topics and social empowerment. Twenty material aspects are shortlisted based on discussion with different department heads and We consider materiality as a strategic business relevant internal stakeholders. GAIL’s corporate tool, with implications beyond corporate strategies, policies, risks and opportunities for the responsibility. The material topics are the areas business are taken into consideration during this of interest or the aspects that are important to phase of prioritization. our stakeholders and business. This enables our company to understand how the resources are Phase IV: Stakeholder Engagement & allocated and utilized. An integrated approach Materiality Survey has been used to identify the interdependencies Multiple surveys were shared with stakeholder between the functional/operational units of the and results were obtained. This includes sharing company. an update on GAIL’s expectations and the current Selected seventeen material topics are classified ESG trends in the sector counting a brief about into the capitals under the framework to the importance of sustainability in a changing report on value created by our organization across world. its value chain. The Material topics are plotted Phase V: Materiality Matrix in the matrix under three levels- low, medium Development and Reporting and high based on their relative importance as per the survey results. The sub-topics of Survey results are quantitatively and qualitatively individual material topics are included under analyzed during this phase and the materiality the material topics. Material topics, sub-topics, matrix is created based on the stakeholder boundaries and relevant stakeholder groups that priority. It is further prepared to be reported hold maximum importance are provided in the to the stakeholders through the sustainability upcoming section. report.

102-21

70 GAIL Sustainability Report 2020-21

Prioritizing Sustainability Aspects: based on two aspects – its importance Materiality Matrix to GAIL Management and importance to Stakeholders. »» The Material Issues for GAIL are broadly classified under the categories - Economic, »» The six capitals (of the Integrated Reporting Environmental, Social and Governance Framework), affecting the broad categories, are also mapped. »» These 17 topics were ranked in three categories – High, Medium and Low

Materiality Matrix

Economic & Governance Environment Social

Materiality Matrix Capital ImpactedCapital

Business Growth Climate Health and »» The Material Issues for GAIL Change Safety Product & service are broadly classified under (Carbon quality Stakeholder the categories - Economic, Neutral) relationship Operational Environmental, Social and High management Excellence Governance Human capital »» These 17 topics were ranked in three management categories - High, Importance Asset Utilization Resource to GAIL Management and Optimization Risk Management importance to Stakeholders. Energy Research and Management »» The 6 capitals (of the Integrated development Reporting Framework), affecting Natural Ethics, Integrity and

Medium the broad categories are also Capital Compliance Utilization mapped. Data privacy and cybersecurity New Businesses and Geographies Financial Capital Digital Human Capital Transformation

Manufacturing Intellectual Capital Low Capital

Natural Capital Social and Relationship Capital

102-21, 102-29, 102-47, 103-1

71 Energizing Growth Energizing Possibilities Management Approach and Stakeholder Group for Material Topic

Stakeholder GRI Category Material topic Management Approach group Business GAIL aims to harness economic interests while Customers, Growth and simultaneously achieving better sustainability Employees, Profitability performance. Economic performance for GAIL is Suppliers, the economic value added for both shareholders Contractors, and other stakeholders. The Company ensures NGOs & to utilise their resources in the most efficient and Communities responsible manner. Product and Product and Service quality describes complete Customers, service quality ‘Quality & Quantity’ (Q&Q) checks at various stages Suppliers, of the supply chain. GAIL ensures adherence to Contractors high Q&Q standards till the product reaches the customer. Having effective quality management systems in place and ensuring strict adherence to quality standards Asset The oil and gas sector is quite asset intensive, Customers, Utilization making capacity utilisation one of the most critical Suppliers aspects. GAIL promotes better asset management, efficient utilisation and reliability of operations can Economic reduce costs and enhance efficiency Operational GAIL ensures uninterrupted availability of NG Customers, Excellence pipeline & supply of quality gas to customers Employees, Suppliers, Contractors New GAIL identifies the need of leveraging and Customers, Businesses and capitalising on the various opportunities available Suppliers geographies for achieving accelerated and diversified business growth and foraying into new markets in areas like investments in development/ acquisition of assets, development of renewables and alternate energy sources, promoting the start-up ecosystem for nurturing entrepreneurs in the Oil & Gas sector Digital Digital transformation helps in improving precision, Customers, Transformation process and examine big data sets to draw insights Suppliers , and conclusions about operations, create new value Contractors and competitor differentiation, control operations remotely, break operational silos and preempt conditions and failures.

102-40, 102-42

72 GAIL Sustainability Report 2020-21

Stakeholder GRI Category Material topic Management Approach group Research and New techniques and technologies discovered Customers, Development through research and development (R&D) are vital Suppliers in enabling the industry to meet global energy demand, and will continue to be vital as the industry overcomes current and future challenges Climate GAIL believes that it is their responsibility to NGOs, Change recognise and manage the impact it has created on Communities, the environment due to its business operations, we Customers, understand that its time to minimize the impact of Suppliers climate change and strive to improve performance, energy efficiency and finding more carbon-neutral solutions. Resource GAIL believes businesses should take charge of and NGOs, optimization manage the waste generated by their activities; this Communities, includes identifying opportunities to reduce, reuse Customers, and recycle waste and effluents Suppliers Energy GAIL ensures implementing energy efficiency NGOs, management policies at all the levels of the Company; analysis Communities, and modelling of energy efficiency performance, Customers, measures, policies, outcomes, and impacts; energy Suppliers Environmental management systems (EMSs) and energy services; and approaches to improve energy. It also includes exploring opportunities to invest in renewable energy to supplement the energy needs with cleaner sources Natural capital With an increasing demand for energy and the NGOs, utilization likelihood that oil and gas will be used to meet Communities, much of this demand over the next several decades, Customers, the risk to biodiversity from energy development Suppliers projects is expected to increase. GAIL ensures optimally utilising the natural resources minimizing the impact on environment Health and Developing a safe, healthy and ethical work culture Employees, safety by implementing policies & processes for a safe and Contractors incident-free workplace. Risk Risk management systems will help GAIL identify the Employees, Governance Management risks and security issues associated with its business Suppliers, and risk and assets. They provide protection against project Contractors management failures, legal issues, natural disasters, accidents and national emergencies, and security breaches

102-40, 102-42

73 Energizing Growth Energizing Possibilities

Stakeholder GRI Category Material topic Management Approach group

Data Privacy We focus on assessing the processes and improving Customers, and Security on the technology to secure customer data and Employees, prevent leaks or data losses. Suppliers, Contractors

Ethics, To safeguard the interests of all stakeholders, Employees, Integrity and policies and systems must be implemented to Suppliers, Compliance uphold the highest standards of business integrity Contractors and prevent corruption and fraud

Human capital A workforce that is engaged and satisfied will Employees management be invested in the success of the business and demonstrate a high level of commitment and loyalty

Stakeholder Actively collaborating with partners, suppliers and Customers, relationship vendors motivates further quality and encourages Suppliers, Social management them to strive for excellence and sustainability in Contractors their products, service levels, and operations. I We NGOs & constantly engage with our partners to strengthen Communities strategic relationships, which fosters strong and productive relationships. Resolving grievances of stakeholders under CPGRAMS

102-40, 102-42

74 GAIL Sustainability Report 2020-21

GAIL Stakeholder Mapping and Engagement

Sr. Stakeholder Goals of Engagement Frequency of Mode of Engagement No. Groups Engagement

1 Government »» Support government missions to Annual, »» MoUs and other promote sustainable development Monthly and »» Quarterly Progress Report regulators- goals Need-based »» Annual Report External »» Support government in transitioning to stakeholder a clean gas-based economy »» Relationship building »» Performance appraisal through MoUs »» Submission of progress reports »» Discussions on major investment plans

2 Financial »» Financial performance Annual, »» One on One Meetings with Institutions »» Share broad future strategies Quarterly Investors Internal and »» Get feedback and address concerns »» Attending IR Conferences/ External »» Seek approval from shareholders on roadshows stakeholder major decisions »» Conducting site visits for investment Community »» Arranging Conference Calls for Investment Community »» Conducting Analyst Meets »» Publishing Public disclosures and quarterly results »» Conducting Press conferences »» Communication with Shareholders and ADR holder

3 Employees »» Communication on GAIL’s business Annual, »» Satisfaction surveys Internal goals, values and principles Quarterly, »» Social Media stakeholder »» Action planning on major projects Monthly, »» Grievance Redressal Daily »» Implementation of best practices »» Suggestion schemes »» Facilitating learning and developing »» CMD open house »» Track key performance indicators and »» Various committees action plans »» GAIL Day celebration »» Understand and address concerns Idea »» Emails, Journals, generation, sharing and learning »» Meetings with employee associations and unions

4 Suppliers »» Communicate operational decisions Annual, »» Supplier Meets -External »» Seek their performance data/ Quarterly, »» Industry Conclave stakeholder information Monthly, »» Access to empowered C&P »» Understand and address their concerns Daily committee »» Dispute resolution »» Vendor development program/ »» Review of Contracts Vendor coaching programs »» Hand-holding programs for SC/ ST-owned MSEs »» Pre-tender or pre-bid meeting for all tenders »» Meets with micro and small enterprises

5 Customers- »» To understand their satisfaction levels Annual, »» Annual Customer Meet External »» To address operational concerns Quarterly »» Zonal Customer Meet stakeholder »» To get feedback on new product »» Customer Interactive Meet development »» Customer Satisfaction Survey

102-43, 102-44, 413-1

75 Energizing Growth Energizing Possibilities

Sr. Stakeholder Goals of Engagement Frequency of Mode of Engagement No. Groups Engagement

6 Joint »» Discussions on major investment plans’ Need-based »» Need-based meetings Ventures and »» Sharing of performance data »» Reports and Newsletters Subsidiaries »» Facilitate decision-making on major of GAIL (India) topics Limited -External stakeholder

7 Industry »» Share performance data Inform on keys Need-based »» Seminars Associations decisions and projects »» Conferences -External »» Participate in conferences and seminars »» Industry Expo stakeholder »» Engage in public policy advocacy »» Interviews »» Reports and Newsletters

8 Communities- »» Engaging with communities for Need-based »» Meetings and direct interaction External conducting need assessment and »» Community events stakeholder executing community development »» Needs analysis and Impact projects Assessments »» Understanding and addressing their »» CSR initiatives concerns on critical incidents »» Corporate communications »» Community Grievances Redressal Materials

9 Contractors/ »» Communicate operational decisions Annual, »» Need-based meetings Implementing »» To align their work with company Quarterly, »» Meets Agencies- policies and mandates (Compliance) Monthly, »» Website External »» Seek their performance data/ Daily stakeholder information »» Understand and address their concerns »» Communicate company obligations such as contract renewal, payments etc. »» Dispute resolution »» Review of Contracts

10 Academic »» Partner and participate in GAIL research Need-based »» Project meetings and Research and development activities »» Periodic reviews Institutions- »» Website External »» Social media stakeholder »» Press

11 NGOs / »» Executing community development Need-based »» Project meetings Civil Society projects »» Annual reviews Organizations- »» Understanding and addressing their External concerns on critical incidents stakeholder

12 Public at »» Participate and support GAIL initiatives Annual, »» Social media campaigns/posts large-External for public Quarterly, etc. stakeholder »» Converting passive citizens to an active Monthly, »» Community events consumer Daily »» CSR initiatives »» Brand awareness and improved brand »» Corporate communications recall Materials such as website etc. »» Understanding and addressing their »» Press concerns on critical incidents

13 Media- »» Relationship building Monthly, »» Press Meets External »» Promotion of latest initiatives and Need-based »» Interviews stakeholder events »» Corporate communications »» Increase brand recall value materials »» Appraising on performance highlights and low lights »» Point-of-view on major sectoral developments »» Promote GAIL’s advocacy role in the sector

102-43, 102-44, 413-1

76 GAIL Sustainability Report 2020-21

Boundary and KPI’s with Respect to Material Topic

Material topic Sub Material Topic GRI Topic Boundary KPI

Business Growth Economic Performance Within GAIL Total revenue from and Profitability Market presence Operations in INR Crores Indirect economic impacts Total Procurement of New diversification and Goods & Supplies from seeking new opportunities* Local Suppliers in INR Crores Economic Value Generated and Distributed (INR crore) Economic Value Distributed (INR crore Product and service Stakeholder satisfaction Within & quality Beyond GAIL Asset Utilization Within GAIL Gas transmission in MMSCMD Operational Asset Productivity* Within GAIL Percentage of downtime Excellence Environmental investments in a year 201-Economic Grievance mechanism for Environmental performance impact on society Expenditure 202- Market presence Transport Safety Environmental Grievance mechanism New Businesses and Gas-based economy, Within & Activities, brands, geographies investments across the Beyond GAIL products, & services product value chain, policy Location of operations reforms, Markets served clean energy market, SPAs and purchase contracts

Digital E tendering Within & Transformation E payment Beyond GAIL Research and Research and development, Within GAIL R&D expenditure in INR Development diversification and crore opportunities, technological Start-up fund utilization disbursement in INR crore Climate Change GHG Emissions Within & Scope 1,2,3 emissions Air Emissions Beyond GAIL GHG emissions saved other emissions Air emissions (tons/ 305- Emissions management, annum) Ozone-Depleting Substances (ODS) reduction Resource GHG Emissions Energy Within & Implementation of 301-materials optimization consumption and Water Beyond GAIL GreenCO rating for 303- water consumption resource optimisation at 306-waste major factories Energy Energy consumption Within & Total energy consumption management Renewable energy Beyond GAIL in GJ 302- energy consumption Energy Savings Energy saved

103-1

77 Energizing Growth Energizing Possibilities

Material topic Sub Material Topic GRI Topic Boundary KPI

Natural capital Water Management Within & Water consumption in utilization Biodiversity Beyond GAIL million m3 Water recycling in million 304- biodiversity m3 Trees planted Species saved Health and safety Occupation Health and 403-Occupational Within & Lost Time Injury Rate Safety health and safety Beyond GAIL Total number of fatalities Customer Health and Safety 403-7 Prevention Asset Integrity and process and mitigation of safety occupational health and safety impacts directly linked by business relationships 416- customer health and safety, Risk Management Within & Disclosure of risk and its Beyond GAIL mitigation in the Annual 102-15, 29,30,31 Report Key impacts, risks and opportunities Data Privacy and Data Privacy Within & Data breaches Security Cyber security Beyond GAIL Ethics, Integrity and Anti competitive behaviour Within & Employees receiving 102-16 &17 Compliance Anti corruption Beyond GAIL training on anti- 205-Anti-corruption Business ethics corruption 206- Anti-competitive policies and other behavior organizational 307- Compliance procedures.

Human capital Employment 401- employment, Within GAIL Training hours per FTE management Labour/Management 402-labour Attrition Relations management, Number of employees Training & Education 404- training and Diversity education, 407- Human Rights freedom of collective Non-discrimination bargaining, 408-child Equal Remuneration for labour, 409- forced men & women labour, 410-security Grievance Mechanism practices, 412-human Security Practices rights assessment; 405- Diversity and equal opportunity

Stakeholder Procurement Practices Within & Total number of relationship Supplier Environmental Beyond GAIL operations with local management Assessment community engagement, 411- rights of Supplier Human Rights impact assessments and indigenous Assessment development programs people, 413- local Indigenous Rights communities, Local community Total number of 414- supplier social Procurement Practices operations with assessment,418- Community Engagement significant actual and customer privacy Customer relationship potential negative management impacts on local communities

Natural or Man-made Calamity Risk Various risks are associated with gas transportation and distribution like blowout of pipelines, earthquake, tsunami, terrorist activities, etc. These risks are being mitigated right from the designing stage of these projects. However, such natural or man- made risks are emergent events and cannot be totally eliminated. If such an event occurs, it will incur significant liabilities for the Company.

103-1

78 Business Growth 07

Peacock Location: Vijaipur

102-9 Business Growth

India is among the fastest growing economies A Gas-based economic system is India’s need, and in the world. It will contribute to 1/4th of the ‘One nation One Gas Grid’ is an important project projected rise in the global energy by 2040. India’s to meet this requirement. As a part of the initiative, energy use has increased compared to the past in GAIL completed laying a INR 2,433-crore Dhobi- 2000; however, per capita energy consumption Durgapur pipeline that will bring cleaner fuel to is still 1/3rd of the global average. Over 230 the state that is cheaper than LPG and CNG. The million Indians do not have access to clean and 348-kilometer pipeline from Dobhi in Bihar to aff ordable energy for their use. Energy security is Durgapur in West Bengal is part of the Pradhan crucial for the country; and hence, GAIL is pushing Mantri Urja Ganga project to take environment- its targets and strategies towards the goal of friendly natural gas to India’s eastern parts, which achieving energy security while considering the hereto was left untouched by the benefi ts of gas- environmental issues, i.e., air pollution, carbon emissions and climate change. based economy. During the Paris climate agreement, India The Company manages its capital structure committed to ambitious targets of 40% and makes adjustments in light of changes in electricity-generation from non-fossil sources economic conditions and the requirements of and a 33-35% reduction in emissions intensity the fi nancial covenants. To maintain or adjust the by 2030 from 2005 levels. Thus, the Government capital structure, the company may adjust the of India has a broad energy strategy to increase dividend payment to shareholders, return capital the availability of aff ordable clean energy to to shareholders, or issue new shares. No changes all the consumers leading to the emergence of were made in the objectives, policies or processes an alternate energy market with a mission to during the reporting year. This information is establish a low carbon economy. covered under annual report. For reference Please GAIL is a public-sector enterprise with GoI refer to pg 291 of Annual report 2020-21. holding the largest share in paid-up equity Economic Performance of GAIL capital at 51.45%, while FPIs hold 15.52%, Mutual Funds hold 8.46%, ONGC has 4.91%, LIC holds GAIL has registered a gross turnover of INR 8.87%, Indian Oil Corporation Limited (IOCL) 56,738 crore and Profi t of INR 4,890 Crore in 2.45%, and others at 8.3% as on 31 March 2021. FY 21-21. The PAT has shown a decrease of 26% while PBT has registered a decrease of 20% The Government of India is focusing on increasing the share of natural gas in the Indian primary because of lower gas marketing spread. The energy mix from the present level of Natural current market capitalization of the company is Gas to 15% by 2030. GoI has proposed various INR 60,189 crore as on 31 March, 2021 refl ecting initiatives such as ‘Pradhan Mantri Urja Ganga’, strong investor confi dence in the Company. No ‘North East Gas Grid’, CGD projects under 9th and political contribution was made by GAIL during 10th round bidding by PNGRB, MoU with Indian this reporting year. No fi nancial assistance Railways for providing clean fuel, etc. This impetus is received from the government in the last has provided GAIL with the space for expansion. fi nancial year.

102-7, 102-9, 102-10, 103-2, 201-4, 415-1

80 GAIL Sustainability Report 2020-21

Table 1: Financial Performance

FY 19-20 vs. FY 20-21 Sl. No. Particulars (Unit) FY 19-20 FY 20-21 Growth % I TRANSMISSION/SALES 1 Natural gas transmission (MMSCMD) 108.37 104.2 (3.85) 2 LPG transmission (TMT) 3,909 4,163 6.5 3 Natural gas sales (MMSCMD) 96.26 89.2 (7.3) 4 Petrochemicals (TMT) 737 871 18 5 LHC (TMT) 1,263 1,138 (10) II PRODUCTION (TMT) 1 Petrochemicals 788 813 03.17 2 LHC 1,266 1137 (10.19)

Table 2: Economic Value Generated and Distributed* (INR crore)

Economic Value Generated FY 18-19 FY 19-20 FY 20-21

Total revenue (net of ED) 76,710.60 73,327.30 58,742.25

*Economic value generated, and distributed calculation methodology is diff erent from other reported data

Table 3: Economic Value Distributed* (INR crore)

Economic value distributed FY 18-19 FY-19-20 FY-20-21 Employee wages and benefi ts 1,975.10 1,740.40 1,744.20

Operating cost 65,619.00 64,313.50 49,996.60

Payments to providers of capital 1,873.70 3,422.20 2,569.20 Payment to government 3,415.60 1,979.60 1,723.10

*Employee wages and benefi ts incl. t/f to CWIP+ contribution to PF & Other fund (Prior Period) & Welfare+ Other income from deputation

Key Business Initiatives » GAIL and Ranchi municipal corporation signed an agreement for setting up a GAIL continues to be a preferred supplier for compressed biogas plant end users and has tied-up a substantial volume of new/renewal contracts with key customers » GAIL set to kick off asset monetization in the during the fi nancial year. GAIL is also prioritizing oil sector the CGD industrial sector, refi neries and units » GAIL India seeks to buy out the entire using alternate fuels like LPG/furnace oil to supply 26% stake of Greater Calcutta Gas Supply them natural gas as alternative fuel. Further, Corporation (GCGSCL) in its joint venture, GAIL is looking for avenues to supply gas in new Bengal Gas company (BGCL) to make it its segment like LNG trucking, i.e., LNG for long haul own 100% subsidiary transportation.

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»» GAIL (India) Limited has signed a Share »» Bank Communication Management Module Purchase and Shareholders Agreement »» ANANT Dashboard for Real-Time Monitoring (SPSHA) with Indian Gas Exchange Limited of MoU Parameters and Capex HR (IGX) and Indian Energy Exchange Limited (IEX), for acquisition of 5% equity stake in IGX. »» Medical Reimbursement App GAIL is striving for moving India towards a »» Reimbursement under LTC Lieu Portal gas-based economy. »» Permission for WFH during quarantine Since the commencement of RLNG supply in the module HRD country in 2004, GAIL has always spearheaded »» Document Verification System the development of new RLNG/LNG markets in the country and has been working towards »» Web based ePMS for E0 to E7 the development of a gas-based economy. The »» ANJANI E-measurement & E-billing Portal following initiatives being taken by GAIL for »» G-Board Meeting Solution promoting gas markets in new cities and new market: »» Vidhi Mobile app for C&P documents »» CGD DPR Mobile App »» Pradhan Mantri Urja Ganga under the execution for connecting the eastern part of »» CGD Meter Reading Mobile App the country Financial Management »» GAIL was authorized to take up CGD projects Improvement Initiatives in FY 20-21 in six cities as part of PM URJA Ganga project, at GAIL namely, Varanasi, Bhubaneshwar, Cuttack, Patna, Ranchi and Jamshedpur Company has taken several initiatives which are as given below: »» GAIL Gas is executing and operating CGD (City Gas Distribution) projects in 14 GAs, »» Bharat Bill Pay System (BBPS) implemented including Bengaluru in CGD business to enable customers for smooth payment of PNG bill through mobile »» GAIL CGD Entities have been authorized for payment apps. 61 geographical areas in 9th and 10th bidding round for city gas distribution by PNGRB. »» Digitalization of Travel Bill claim reimbursement through Mobile application »» To promote LNG as a transport fuel in India, & PRMS claim through Golden retirement GAIL along with other OMCs has been working portal. closely with the Ministry of Petroleum and Natural Gas for setting up LNG/ LCNG stations »» NG trading and transmission Invoice along golden quadrilateral and other national generation through BOT successfully tested highways. for NCR under robotic process automation »» The gross block in renewable energy (Wind »» The Company has managed its liquidity Power and Solar) as on 31 March 2021 is INR requirement through a prudent mix of 828 crore. borrowings and internal accruals. Financial management Initiatives in »» Fresh borrowing at very competitive and FY 20-21 at GAIL refinancing of old loans at much lower rate leading in bringing down the overall cost of »» RPA Digital Initiatives for FICO funds. »» Centralized TDS/TCS

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Business Outlook consumption of 30 kg, presents tremendous growth opportunities for petrochemical Owing to a stable growth over the past few segments years across all the business segments, GAIL has continued to thrive due to the recognition from A detailed overview of each business segment various agencies and regulatory bodies during of GAIL is given in subsequent sections of this the reporting period. report.

GAIL also received ‘NIL’ comments from Natural Gas Marketing Comptroller and Auditor General of India (CAG) During the FY 20-21, GAIL clocked a sales figure for its financial statement for FY 2020-21 during of 89.20 MMSCMD (which included sales within the reporting period. The company has been India of 80.28 MMSCMD and overseas sales of prepared with the second position under the 8.92 MMSCMD) as against 96.26 MMSCMD during category manufacturing in Public Mega in the FY 19-20. Gross revenue of GAIL from Natural Gas 17th National awards for excellence in cost Marketing in FY 20-21 was INR 43,846 crore as management 2019 from the Institute of cost against INR 59,955 crore in FY 19-20. accounts of India. Additionally, the company Fertilizer sector: We market gas for the majority received the National Award for Excellence in of the fertilizers produced in our country. During Cost Management-2019 from the Institute of Cost this reporting year, GAIL firmed up gas supply Accountants of India (ICAI). The stable outlook agreement with upcoming fertilizer plants for and potential business growth of GAIL during more than 12 MMSCMD volume. the reporting period resulted in a credit rating of During this FY, GAIL has commenced gas ‘AAA’ at the domestic level, and at an international supply to Hindustan Urvarak & Rasayan Limited level, ‘Baa2’ by Moody’s and ‘BBB’ by Fitch, tenth (HURL), Gorakhpur w.e.f. November 2020 for year in a row. pre-commissioning of the plant and Mangalore Chemicals & Fertilizers Limited (MCFL), Mangalore Opportunities for GAIL for commissioning of the plant and production of »» Energy consumption grows by 4.6% per Urea using natural gas as feedstock. annum in India, which is the highest among Power sector: GAIL supplies around 55% of the all major economies in the world gas consumed by gas-based power plants in »» GoI has targeted to increase the gas share the country. Over the past few years, we have from 6.2% to 15% in the Primary Energy (PE) successfully partnered with various power mix of the country producers to operationalize their stranded units. We continue to explore opportunities for supply »» Significant investments are being made of natural gas to gas based power generation across the natural gas value chain units at affordable prices and are currently • Gas pipelines: INR 60,000 crore to INR supplying around 2.40 MMSCMD of RLNG to 70,000 crore power plants apart from allocated domestic gas. • LNG terminals: INR 25,000 crore During this FY, GAIL has commenced gas supply to Karnataka Power Corporation Limited (KPCL) • Gas-based fertilizer sector: INR 30,000 w.e.f. September 2020 for commissioning of the crore plant. Currently, KPCL is under commissioning. • CGDs: INR 70,000 crore to INR 80,000 crore GAIL is committed to increase the length of its »» According to the recently recorded data, natural gas pipeline infrastructure by developing India’s per capita consumption of plastics at new natural gas pipelines as well as by expansion/ just 11 kg vs. the average global per capita extension of its existing natural gas pipelines. We

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83 Energizing Growth Energizing Possibilities have taken steps to provide Tie-in connections of 280 KTA. The marketing rights of the BCPL with its natural gas pipelines to the upcoming plant are with GAIL, taking the total marketing new gas sources, including in KG Basin, Cauvery portfolio to 1,090 KTA. Basin and Coal Bed Methane (CBM) discoveries Overall production from the Pata Petrochemicals to enable more and new gas injections into our complex In FY 20-21 was 813 KTA. A combined pipelines. Furthermore, we also provide Inter- volume of approx. 1,177 KTA (which includes 871 Connections (ICs) with the natural gas pipelines KTA of GAIL and 306 KTA of BCPL) was marketed of other pipeline entities in the country. by GAIL during the year. GAIL also exported 9 In addition to providing Last Mile Connectivity KTA of polymers to various Asian markets. GAIL (LMC) to various industrial consumers so as to successfully maintained its market share in the enable them consume natural gas and shift from domestic polyethylene market and remained the other alternative fuels, GAIL is also providing second largest player in the Indian petrochemical Hooking-up connectivity (i.e. connectivity from market with a portfolio of over 1,000 KTA of the trunk natural gas pipeline to CGD network) to polyethylene. GAIL and BCPL together have a more than 100 new CGD Networks in various parts combined production share of 17.4% of the High of the country. Eight new Last Mile Connectivity Density and Liner Low Density Polyethylene and sixteen Hook-ups were completed to supply/ (HDPE & LLDPE) market in the country. transport gas during FY 2020-21. GAIL has achieved more than 100% capacity GAIL has also firmed up modality with the newly utilization from pata plant in FY 20-21. BCPL has established Gas Exchange in the country for achieved 100% capacity utilization in FY 20-21 smooth transportation of gas traded in the Gas also, making it two consecutive years in a row. Exchange. Also, GAIL is the only gas pipeline LPG and other Liquid Hydrocarbon company in the country that is successfully Production operating an online pipeline open-access portal for easier and transparent booking of Common GAIL has five Gas Processing Plants (GPUs) at four Carrier Capacity in its natural gas pipeline. More locations in the country having LHC production than 3,000 Capacity Tranche (CT) requests have capacity of 1.137 Million MT. During 2020-21, been processed through the portal during total liquid hydrocarbon production was about FY 20-21, while total CT requisitions processed 1.14 Million MT as against 1.26 Million MT in FY till 31 March 2021, since the launch of the online 2019-20 of which almost 90% constitutes LPG portal in 2018 is over 5,900. and Propane. LPG Transmission Exploration and Production GAIL owns and operates a 2,038 km LPG pipeline GAIL has participated in 11 E&P blocks, of which network for LPG transportation, namely, JLPL and nine blocks are in India and two blocks are VSPL. Jamnagar-Loni and the Vizag-Secunderabad in Myanmar. Out of these, GAIL is operator in pipeline networks achieved a throughput of two on land blocks CB-ONN-2010/11 and CB- 4.16 MMTPA during the year FY 20-21 against ONHP-2017/12 in Cambay basin awarded during 3.91 MMTPA in the previous year FY 19-20. NELP-IX and OALP-I bidding rounds respectively. These eleven E&P blocks hold an acreage of Petrochemicals 2,170 km2 as per its Participation Interest (P.I.) in GAIL has a polymer production capacity of 810 various consortiums. Kilo Tons per annum (KTA) at Pata complex. Revenue from sale of hydrocarbons is being GAIL’s subsidiary (70% equity share) Brahmaputra generated from four producing blocks, namely, Cracker & Polymer Limited (BCPL) has a capacity

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84 GAIL Sustainability Report 2020-21

A-1 and A-3 in Myanmar and CB-ONN-2000/1 and project in Kolkata through its JV - Bengal Gas CB-ONN-2003/2 (Cambay onshore blocks) in India. Company Limited. Revenue of INR 838 crore has been generated GAIL is executing and operating CGD (City from E&P activities during FY 20-21 as against Gas Distribution) projects in 14 GAs, including INR 968 crore in FY 19-20. Lower revenue from Bengaluru. Currently, GAIL Gas has seven JVCs Myanmar is mainly due to lower gas production and they are implementing CGD projects in nine (8 % lower i.e. 486 MMSCM vs 528 MMSCM in GAs. GAIL Gas along with its JVCs is providing previous year) and lower gas price (11% lower i.e. DPNG to 6.51 Lakhs households and catering to US$6.53/MMBtu vs US$7.35/MMBtu in previous clean fuel requirements for vehicles through its year). 250 CNG stations spread across various GAs. Field Development activities in Myanmar offshore During FY 20-21, GAIL Gas along with its Joint blocks A1 & A3, including drilling campaigns of Venture Companies (JVC) has achieved around eight development wells in Shwe and Shwe Phyu 1.87 lakh domestic PNG connections, the field, are in progress. Simultaneous appraisal of highest figure ever achieved by GAIL Gas since additional gas discovery and further exploration its formation. During the same period, GAIL Gas, in A-3 block is in progress. along with its JV companies, has also set up 84 Development activities are in progress in two CNG stations. blocks in India (i) CB-ONN-2010/11 (In Gujarat Bengaluru remained a major focus for GAIL for State) and (ii) AA-ONN-2000/1 (in Tripura State). CGD expansion. Eleven CNG stations were set Exploratory activities continued in two domestic up and 44,382 domestic PNG connections were blocks (i) NELP-IX block AA-ONN-2010 and (ii) provided in the Bengaluru CGD area during FY OALP block CB-ONHP-2017/12. 20-21. City Gas Distribution Coal Gasification GAIL (including group companies) is currently GAIL is in the process of setting up a coal authorized to operate in 61 Geographical Areas gasification-based Urea project through a JV- throughout India including metro cities of Talcher Fertilizers Limited (TFL), formed with Delhi, Mumbai, Hyderabad, Bengaluru, Kolkata, Coal India Limited (CIL), Rashtriya Chemicals etc. These CGD networks together cater to and Fertilizers (RCF), each having 31.85% stake around 65% of total 78.20 lakhs domestic PNG and Fertilizer Corporation of India Limited connections in the country. Out of the total 3,101 (FCIL) having 4.45% equity. The project, with CNG stations in the country, GAIL group operates an estimated cost of around INR 13,277 crore, is 1,689 CNG stations representing 54% share. This envisaged to produce 2,200 MTPD Ammonia and year, GAIL registered a record addition of 10.10 3,850 MTPD Urea. The coal for the project shall be lakhs household PNG connections and 341 CNG sourced from a captive mine of North Arkhapal in stations. Talcher region, which has been allotted to TFL by the Ministry of Coal. TFL has already signed the GAIL was authorized to take up CGD projects mine allotment agreement with the Coal Ministry. in six cities as part of PM URJA Ganga project, Pet coke, which is the second feedstock, shall be namely, Varanasi, Bhubaneshwar, Cuttack, Patna, sourced from IOCL Paradip refinery, for which TFL Ranchi and Jamshedpur. Supply of gas has has already executed an MoU with IOCL. already commenced to CNG, PNG customers in Varanasi, Bhubaneswar, Cuttack, Patna, Ranchi The project has received investment approval and Jamshedpur. GAIL is executing the CGD from all the JV partners in August 2019 and

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85 Energizing Growth Energizing Possibilities project activities have already commenced with building a closer strategic partnership between the award of two major LSTK tenders of coal the two companies by jointly exploring business gasification and ammonia/urea at a cumulative opportunities in Trigeneration business segment cost of approx. INR 8,000 crore to M/s Wuhuan in India. Under this MOU, GAIL and EESL shall Engg. Co. Ltd., China. Further, debt syndication jointly undertake studies and if found viable, of the project is also completed. Selection of 50:50 joint venture between GAIL & EESL will other vendors is in progress along with other pre- be incorporated for undertaking Trigeneration project construction activities at site. The overall projects. Shri Santanu Roy, Executive Director project progress achieved till March 2021 is 11%. (Business Development & Project Development) Cabinet Committee on Economic Affairs (CCEA) signed the MoU on the behalf of GAIL, while Shri has approved the exclusive subsidy policy for Amit Kumar Kaushik, Executive Director (Strategic urea to be produced by TFL on 20th April 2021. Growth) (on the behalf of EESL) inked the MoU in Industry Events and Engagements the presence of Shri Manoj Jain, C&MD - GAIL and Shri Saurabh Kumar, MD - EESL through video Dobhi-Durgapur Pipeline conference. On 8 February 2021, the Prime Minister dedicated Opening of India Energy Office in Moscow, the LPG import terminal to the nation, 348 km Russia Dobhi – Durgapur Natural Gas Pipeline section, To promote the interests of Indian Oil and Gas which is part of the Pradhan Mantri Urja Ganga PSUs; GAIL along with OVL, IOCL, OIL, and EIL is project. Dobhi-Durgapur Pipeline stretched 350 taking steps to open an India Energy Office in km will directly benefit not only West Bengal but Moscow, Russia. A Summary of Understanding also 10 districts of Bihar and Jharkhand. Locals (SOU) in this regard has been signed among the were employed for 11 lakh man days as a result of parties on 25 March 2021. the construction work. This will also provide clean piped LPG to the kitchens and enable clean CNG Natural Gas Supply and Distribution Project vehicles in addition with continuous gas supply in New Yangon to Sindri and Durgapur Fertilizer factories. GAIL and IGL are jointly pursuing a natural gas Kochi - Mangaluru Natural Gas Pipeline supply and distribution project in New Yangon, Myanmar. A Principle of Cooperation between Prime Minister Shri Narendra Modi on 5 January the two parties was signed on 02.06.2020. 2021 dedicated Kochi - Mangaluru Natural Gas Pipeline to the nation through a video Initiatives taken for Engaging with Investors conference. The event marks an important in FY 20-21 milestone towards the creation of ‘One Nation The motto of Investor Relations Management in One Gas Grid'. Governors and Chief Ministers of GAIL is to reach maximum number of Investors Karnataka and Kerala, along with Union Minister from both Domestic & Global Markets and to for Petroleum and Natural Gas were also present ensure dissemination of financial and non- on the occasion. financial information about the company at Trigeneration project regular intervals to the concerns of stakeholders. GAIL (India) Limited and Energy Efficiency Services Investor Relations (IR) is playing an increasingly Limited (EESL) have signed a Memorandum of important role in today’s volatile world in enabling Understanding (MoU) on 3 June 2020 in New companies to meet investors’ expectations. Gone Delhi for cooperation in the development of are the days when investor used to take interests in Trigeneration projects in India. The MoU aims at only in financial results of any company. In current

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86 GAIL Sustainability Report 2020-21 times, investors look beyond financial numbers Besides organizing such meets & conferences, and seek for initiatives taken in Corporate Social company arranged one to one virtual meetings Responsibility, Sustainability, and Health Safety based on investors requirements. Environment (HSE) etc. FY 2021 was a mixed bag of achievements and With the spirit to interact with investors on concerns for GAIL. Inspite of severe stress on regular basis, GAIL organized Analyst Meet for the profitability during the Q1 of FY 21 due to FY 21 through Audio Visual (AV) mode owing to nationwide lockdown due to COVID-19, the ongoing limitations due to COVID-19 Pandemic. company achieved a PAT of Rs 4,890 crore. GAIL Senior management also participated in Petrochemical production has seen new highs in 9 IR events organized by top brokerage houses current financial year. Even during the COVID-19 of the country such as B&K, Emkay Global, ICICI Pandemic situation, company made its natural Securities, MOSL, JP Morgan etc. to cover as many gas and LPG transmission pipelines available Investors through virtual mode. Conference calls to meet full customer demand. GAIL is focused for Q1 FY21, Q2 FY21 and Q3 FY21 were organized towards cost optimization in its operation and immediately after quarterly financial results. processes.

ÆÆ Top Management interacting with Investors and Analysts after Annual Result of FY21

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GAIL Investor Meet »» Development of National Gas Grid (NGG)- To develop National Gas Grid, GAIL is executing During FY 20-21, GAIL organized “Analysts’ Meet- projects to lay around 6,000 km of gas 2020” through Virtual mode from Corporate pipelines across India and another 2,000 km office, New Delhi in the wake of COVID-19, pipelines through its two JVs. Despite hugely organized three conference calls to discuss challenging times of COVID-19 pandemic, quarterly results and participated in nine investor 1000 kms of pipeline has been commissioned conferences and conducted multiple one on one in FY 20-21. meetings for maintaining engagement with the »» We shall also continue to grow our gas investor community. All these meetings/calls/ transmission business by laying important conferences were attended by Top Management/ sections of National Gas Grid (NGG), i.e., Senior Executives of the Company. Analysts Jagdishpur - Haldia - Bokaro - Dhamra Presentations and their transcripts are provided Pipeline, Kochi - Koottanad - Bengaluru in the following link of our website- https:// - Mangalore Pipeline Phase-II, Vijaipur gailonline.com/IZ-GeneralInformation.html Auraiya Pipeline, Barauni Guwahati Pipeline, North East Gas Grid (through Joint Venture All such initiatives by GAIL towards disseminating company Indradhanush Gas Grid Limited information to investors and analysts at the with IOCL, ONGC, OIL, NRL); aligning with right time and from the right people have been Government priorities and by providing last recognized and appreciated by the Investor mile connectivity. and Analyst Community from time to time. In the recent past, GAIL also took an active role on »» GAIL is the largest LNG portfolio holder the ground in sensitizing its employees about in India having diverse price linkages and handling of the Unpublished Price sensitive shall be looking to offer value and reliable Information (UPSI). supply to consumers by selling right mix in domestic and international geographies. We are consistently looking for new international GAIL won Investor Relations Award 2020 geographies to sell LNG volumes. under ESG disclosures category organised by IR Society in collaboration with BSE & KPMG. »» GAIL will be selectively making investment in the Renewable Energy domain, given the future growth potential and to partner GAIL Strategy 2030 and Advocacy with the Government in meeting India’s Initiatives NDC (Nationally Determined Contributions) commitments on climate change. GAIL is In the year 2019, GAIL framed ‘Strategy 2030’ exploring the opportunity of acquiring stakes to define the journey through the next decade. in renewable energy assets of the existing It aims at building a strong business portfolio players and looking towards participating in and organization structure, which are not only solar park tenders as Solar Power Producer. robust enough to respond to the fast-changing business scenario but also unlock long-term »» GAIL is continuously exploring new business growth opportunities of the Company and in opportunities, which have the potential to turn deliver long term value to stakeholders. offer future growth engine and substantially GAIL is continuously exploring new business add to the portfolio. To promote new technologies, GAIL has invested in startups opportunities, which have the potential to offer focusing on new technologies like Electric future growth engine and substantially add value to the portfolio. Vehicles, digitization, etc.

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»» Development of Natural Gas Pipeline- GAIL portfolio holder in India having diverse price is executing natural gas pipeline projects to linkages and shall be looking to offer value and facilitate clean energy access across various reliable supply to the consumers by selling parts of India. Supply of natural gas will right mix in the domestic and international lead to sustainable development across the geographies. GAIL is consistently looking for country and protect the environment. Some new international geographies to sell LNG of the natural gas pipelines projects fueling volumes. India’s sustainable progress include JHBDPL »» GAIL will be selectively making investment - 2655 km, BGPL- 729 km, IGGL- 1656 km, in the Renewable Energy domain, given the KKBMPL- 935 km. future growth potential and also to partner »» CNG Mobile Refueling with Government in meeting India’s NDC (Nationally Determined Contributions) An innovative effort by GAIL group companies commitments on climate change. GAIL has to boost consumer convenience, the MRU been looking for opportunities to scale up acts as mobile CNG station and will provide RE portfolio from 130 MW through bidding doorstep, round-the-clock delivery of CNG. route and also through inorganic route like »» In petrochemicals, GAIL is setting up a 500 mergers and acquisitions. On the renewable KTA Polypropylene plant, a first of its kind side, our targets are that we would like to be project in India, which would be using 1 Gigawatt Solar and Wind both together or Propane Dehydrogenation technology for any other renewable part in next three to four the production of Propylene integrated with years. the downstream Polypropylene unit. GAIL GAIL is continuously exploring new business has selected Licensors for the PDH and PP opportunities, which have the potential to offer units during the Year. We are also taking up future growth engine and substantially add to feasibility studies to set up specialty chemical the portfolio. GAIL is exploring the possibility of plants for select chemicals, which have high setting up a 500 KLPD Ethanol Plant for ethanol import dependency and high future growth blending Purpose. This is also a steps towards potential. Further, In Renewables as well, meeting the target of 20% ethanol blending in GAIL has been looking for opportunities to petrol by 2025. To promote new technologies, scale up RE portfolio from 130 MW through GAIL has invested in startups, which focus on new bidding route and through inorganic route technologies like Electric Vehicles, digitization, like mergers and acquisitions. etc. »» Development of Indian gas market is a major GAIL continues to be a preferred supplier for focus area of GAIL. To grow the gas market end users and has tied-up a substantial volume share, GAIL shall be pushing for higher gas of new/renewal contracts with key customers usage in the industrial segment, transport during the financial year. GAIL is also prioritizing segment using CNG and LNG, trigeneration the CGD industrial sector, refineries and units etc., ensuring off take of envisaged additional using alternate fuels like LPG/furnace oil to domestic gas production and increasing pace supply them natural gas as an alternate fuel. of activities in the fast growing CGD sector GAIL group companies are installing over 23 LNG through GAIL Gas and JVs. Further, GAIL is stations along Golden Quadrilateral and other looking for avenues to supply gas in new major highways, of which construction activities segment like LNG trucking i.e., LNG for long have commenced for six LNG stations. haul transportation. GAIL is the largest LNG

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Initiatives taken for Advocacy of Natural More recently, GAIL and Power sector stakeholders Gas are exploring options to include natural gas as a preferred option for blending with Renewable GAIL had undertaken a number of studies on the power to meet grid flexibility requirements. areas of gas advocacy, few of which are as follows: Over the years, GAIL has been a part of industry »» Use of natural gas in power sector through events organized to propagate gas as a better FIPI environmental fuel, market opportunity available »» Potential of natural gas as replacement for for gas in India, support from international solid and liquid polluting fuels consumption bodies for domestic gas market development. in industries GAIL is interacting with various Indian industry »» Assessment of gas demand in Refinery Sector associations including FIPI, CII, FICCI, etc. on and Steel Sector economic and sectorial reforms required by Indian gas sector post COVID-19 and the need for »» Analysis on competitiveness of natural gas policy support for clean and sustainable energy. with view of GST inclusion for industries GAIL has been consistently engaged with global »» Unbundling in Natural Gas sector in India and associations like International Gas Union on its impact, study of gas markets hubs and Sustainable energy policy and reforms required strategic imperatives for GAIL in the gas sector. »» Opportunity Mapping for GAIL in Battery GAIL also partnered with Interdependence, a Value Chain global campaign *patronized* by United Nations »» Potential of natural gas as replacement for and organized by Art for the World- an NGO solid and liquid polluting fuels consumption associated with United Nations Department of in industries under any CGD Gas and price Public Information (UNDPI), Switzerland. sensitive demand assessment

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90 Operational Excellence 08

Harvester Ants Location: Usar Operational Excellence

We review and reframe our operational systems & a trajectory of decarbonization and inclusive procedures to keep abreast with new changes in development in our core value delivery chain the world and provide best quality products and to ensure high standards of governance and services to stay ahead of our competitors. Our integrity in all our production and transmission business is defi ned by some major forces which activities. We make endeavor and promote a are the uncertainty of the oil markets, increased cultural change to integrate sustainability in our competition, and climate change. We have well operation. organized our operations and are responsibly At GAIL, reliable and dependable operation becoming more trusted, reliable, fl exible, and and maintenance philosophy has been capable of delivering marvelous results. Our adopted which has been devised keeping the overall strategic intent is to improve quality and most stringent provisions as mandated by maximize the performance through innovation national and international standards. Our O&M and responsiveness and create a greater value for Philosophy is developed and reviewed through our customers and other stakeholders. a comprehensive internal consultation and due Our Approach diligence process. GAIL has certifi ed Subject Matter Experts (SMEs) of international repute on We constantly attempt to identify and look for panel and utilizes their services for developing new opportunities for improving and taking and reviewing the above philosophy. In addition, ahead our operational performance throughout we have established a 3-level investigation the year. We strive to reduce costs related to mechanism for carrying out root cause analysis of operations, decrease lead times and enable incidents. long-term business growth through continual improvements by taking necessary eff orts in Our Leadership Responsibility a challenging environment. The aim of our Our commitment and leadership are the main corporate strategy objectives is based on aspects pillars for success and drivers of achieving to create competitive advantage for the business operational excellence. Our framed strategies of GAIL. and visionary plans are guided by the top As the Leading Natural gas company in India, GAIL management which follows a rigorous approach is conscious of its role in tackling the challenge of to consult all internal and external stakeholders providing clean and sustainable energy to all parts with involvement of expert agencies. The of the country. To win over this challenge, GAIL implementation of those strategies and plans has invested in creating a structured approach are led by department heads at all the GAIL sites to pursue effi ciency, resilience, and growth while with due support from corporate offi ce. We aim integrating sustainability consideration into its to provide consistent and smooth experience to operational footprint. We also strive to follow all our customers throughout the country and to

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92 GAIL Sustainability Report 2020-21 fulfi l the same our leadership commitment and » Design, Engineering, Construction, involvement of stakeholder at various levels help Commissioning and Operation & Maintenance a lot. of GAIL Installations are being carried out in Integrated Management System accordance with National and International Codes and Standards like ASME, API, OISD, (IMS) PNGRB, PESO, NFPA etc. and as per best To emphasize and achieve Operational Excellence, engineering practices. our leadership has adopted an integrated » HAZOP study and Risk Analysis is carried approach for the management of our plant & out during design stage to identify various pipeline operations, equipments/assets integrity hazards and implement risk mitigation management and HSE aspects. This integrated measures. Further HAZOP study and Risk approach combines the following aspects: Analysis is also carried out in regular intervals » Asset Integrity Management System; and suitable risk mitigation measures. » Quality Management System; » Operations of GAIL Pipelines and Process Plants are monitored at RGMC/NGMC and » Environment Management System; Plant Control rooms manned round the clock » Energy management system. by qualifi ed personnel. Further, Maintenance This integrated approach framework is effi cient Activities of equipment and instruments at to make our business fl awless and uninterrupted these installations are carried out through and helps achieving operational goals with qualifi ed and experienced engineers quality and effi ciency. following proper work permit system and safety procedures. Asset Integrity Management System » Centralized Application Software (APPS) To extract long life, greater utilization of its assets, system with Leak detection system has been achieving operational effi ciencies, reducing risks implemented for Trunk Gas Pipeline networks. and enhancing safety, GAIL has invested in the Further, OFC based pipeline leak & intrusion establishment of Asset Integrity Management detection (PLIDS) are also being deployed at Plan. The key highlights of our asset management vulnerable locations for real time monitoring program are: of any intrusion detection in pipeline ROU.

ÆÆ LLDPE-II Control Room visit

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»» Integrity Management System is in place tracker. Aerial Patrolling is also being carried and followed for entire Cross Country out. Any abnormality identified during these Pipelines in accordance with PNGRB surveillance practices are promptly reported (Integrity Management System for Natural and suitable measures are taken. Gas Pipelines) Regulations 2012 and duly »» A Centralized Integrity Management Group approved by PNGRB. (CIMG) has been established to closely monitor »» Standard Operating Procedure (SOP) & maintain comprehensive pipeline database are in place for safe upkeep, operation & and coordinate the integrity management maintenance of plant facilities, equipment of pipelines across the Company. Within this and instruments. Necessary Safety interlocks group, various sub-groups have also been are also inbuilt in operational systems for safe formed to cater to specialized areas such shutdown of the equipment/facilities in case as In-line inspection, Corrosion Control etc. of abnormal situation. Standard Operating The Regional Integrity Management Group Procedures (SOPs) reviewed through (RIMG) has also been formed in all pipelines international reputed agency M/s. British Headquarters and working in tandem with Safety Council, UK for Process Plant and M/s. the CIMG. DNV GL for pipelines. Regular review of SOP’s »» Empanelment of Subject matter Experts is also undertaken. for expert services with regard to Pipelines »» GAIL’s O&M guidelines for equipment, pipeline Corrosion, Cathodic Protection (CP), in line and assets have been formulated based on Inspection (ILI), Coating, metallurgy and various national and international standards welding. incorporating best engineering practices »» CCTVs have been installed at strategic and exceeding statutory requirements. These locations in plants, compressor stations, guidelines are periodically reviewed and pipeline installations, offices etc. for updated to incorporate regular technological monitoring of these installations. upgradation and changes in standards. »» In main trunk pipelines, majority of valves »» The preventive and predictive maintenance are remotely operable. Further, Manual of equipment are carried out as per OEM valves near urban areas are also converted to recommendations, OISD guidelines, PESO, Remote operable valves. CEA regulations, IBR, PNGRB and other applicable statutory requirements. All these »» Auto Closure facility of valves in pipelines requirements are encapsulated in the form near the city area. This will ensure that in case of task lists for the specific equipment. of any leak, burst etc., the valves will close Inspection and maintenance activities on automatically thereby reducing chances of equipment are performed as per the task lists further damage. and records are maintained in ISO formats. Pipeline Integrity Management »» All equipment of GAIL are mapped in SAP for System monitoring their maintenance schedule and GAIL’s pipeline networks comprise predominantly all the repair & maintenance activities are carbon steel pipelines of sizes ranging from 4” also maintained in SAP for historical record up to 48” diameter and steel grades up to API keeping for further analysis. 5LX 80. The integrity of pipeline starts with the »» Pipeline patrolling is being carried out design and construction stage. These pipelines through line walk by the patrolman with GPS are constructed to stringent quality specifications

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94 GAIL Sustainability Report 2020-21 in accordance with different codes and System as per ASME 31.8 S from 27th to 29th standards such as PNGRB – Technical Standards Sept 2020; Organized Gas Transmission & & Specifications including Safety Specifications Distribution Piping System as per ASME B31.8 for Natural Gas Pipelines – 2009 and ASME B from 09th Feb to 11th Feb 2021. 31.8 Gas Transmission and Distribution Piping »» Obsolete non-functional CCVTs of various Systems. The pipelines are coated with Three Pipeline Installations have been disposed Layer Polyethylene (TLPE) on the external surface and indigenous Gas Engine Generators backed up with Impressed Current Cathodic (GEG) have been installed to improve the Protection (ICCP) system to protect them from availability of power. Which has resulted in external corrosion and are buried. reduced downtime of SCADA/RTU. The pipelines are operated and maintained to »» Pitting at PSP measuring cable point on the best of industry standards and the operations the pipelines have been noted at Agra and are monitored round-the-clock through state- Firozabad Terminals and reports of the same of-art communications and telemetry systems has been forwarded to RIMG for further from regional control rooms at the headquarter of each network and from a central control recommendations. Upon review of the same room at Noida called National Gas Management by RIMG and CIMG, the defect has been Center (NGMC). All GAIL pipelines are having categorized under Immediate category Pipeline Integrity Management Program as per and purchase order has been placed for the PNRGB Regulations and ASME B31.8S / API 1160. rectification of the same. Other sites of the Integrity Management system comprises of 3-tier central region have been asked to check Governance mechanism with Central Integrity the same at their resp. sites in IMS review Management Group (CIMG) at Corporate meetings and other technical Pipeline forums. O&M, Regional Integrity Management Groups »» GAIL O&M and HSE Executives participated (RIMG) at all Pipeline headquarters backed with in various Sub Committee Meetings of Maintenances bases. The implementation of PNGRB Regulations on Emergency Response Operation and Maintenance Policy & Guidelines and Disaster Management Plan, Retail for Pipelines is strictly monitored with its regular Outlet Dispensing, Integrity Management review. Various Pipeline Integrity web applications System for Natural Gas Pipelines & City Gas and databases have been developed for analysis Distribution Networks, Gas Processing Plants and managing the huge data related to pipelines. and Refineries etc. as part of development/ Integrity assessment through the tools such amendment of Technical Codes & Standards. as In-line Inspection (ILI), Direct Assessment (DA) and Hydrotest is carried out as per defined »» GAIL has also initiated a concept of virtual frequencies or at more intervals as required and pipelines in CGD which was approved timely mitigation actions are taken accordingly as by MoPNG to allocate domestic gas to where required. External Corrosion management geographical areas (GAs). This mode enables by Cathodic protection system monitoring & the transportation of CNG and PNG to CGD maintenance, Internal Corrosion management by entities through cascades in a compressed cleaning pigging, gas source quality monitoring is form, or through LNG tankers in a liquid form. done along with coupons and probe monitoring. Public Awareness Program on Initiatives taken for pipeline integrity Pipeline Safety management system: GAIL conducted public awareness programmes »» Organized Pipeline Integrity Management on pipeline safety under the corporate guidelines

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95 Energizing Growth Energizing Possibilities for public awareness on pipeline safety at various Highlights of TQM Department sites of GAIL. Below mentioned programmes The basic aim of TQM department is to inculcate were conducted during FY 20-21 the quality culture in the mind of the employees. »» ERDMP Offsite Mock drill successfully carried A definite set of tools are being implemented out on 15th December, 2020 at VSPL Pipeline across GAIL, and controlled centrally from Chainage 6.30 Km near Narava village, Corporate TQM department. Pendurthi Mandal in Vizag Jurisdiction. Tools like Customer Satisfaction Index, Quality »» Rally, awareness programs conducted in Circles Projects and ISO 9001 are being nearby places for spreading awareness implemented at all Work Centers. regarding gas pipelines and hydrocarbons. - There are two types of surveys conducted in Vaghodia Site GAIL to capture the feedback from customers on product quality and services offered by GAIL. »» Nukkad Natak was conducted at various villages along Pipeline for creating awareness One is the Customer Satisfaction Index (CSI), is an on Safety and Security of Natural Gas Pipelines in-house attempt by GAIL to collect the feedback amongst the villagers. – Dibiyapur Site from customers. A link is provided to all active customers of GAIL through their registered email »» During the Workshop, CO-O&M/HSE made id. Customer are giving feedback on some pre- presentations on amendments in Integrity defined parameters on quality and services. Their Management System Regulations for Natural feedback is collected through SAP and analyzed. Gas Pipelines and Emergency Response and The observation are mitigated appropriately by Disaster Management Plan Regulations. GAIL, and after mitigation of the observations, Total Quality Management customers are being informed to complete the loop. GAIL is committed to enhance customer One of the prime tool to inculcate Quality in the satisfaction and standardizing business processes mind of the employees of GAIL is the Quality Circle through the implementation of a Quality (QC). It is a cultural and process change attempt Management System. GAIL endeavours for in the Company. Employees are encouraged to continual and sustainable improvement through form a small group of 3-4 person to undertake the implementation of effective quality practices, the improvement / modification project with in innovation and standardization. In this line, we their work area only. The modification may be in have implemented Quality Management System process, in service, procedure and work system. and Energy Management System along various The journey of QC is proved successful in GAIL. Pipelines and Process units at Corporate and Number of QC projects taken by employee are Marketing offices. GAIL undertakes Quality Circle increasing per year. Average QC project taken Projects with engagement of its employees, across the GAIL is +200 numbers, however in resulting in high employee morale and increased year 2020-21 due to the pandemic, the QC productivity. project registered was 135 nos. and 75 nos. were We capture voice of customers to through successfully implemented. Customer Value Management and Customer There are motivational scheme associated with Satisfaction Index surveys. GAIL is proud to share QC project in GAIL. The in-house scheme is CMD that Customer Satisfaction Index for FY 2020-21 Trophy award for best QC projects. Quality Circle is 96. Forum of India (QCFI) is propagating quality

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96 GAIL Sustainability Report 2020-21 concepts in India also hold the competition help of environmental management systems. among the Industries towards encouragement. Our environmental management systems serve There are three encouragement from QCFI; at as guidance in helping us reduce environmental (i) Regional Level impact and costs related to our operations. (ii) National Level Additionally, our EMS, through our “plan-do- check-act” approach helps us in proactively (iii) International Level reducing the risk of non-compliance and in QC teams first participate in Regional Level holistically improving our operations, thus Chapter convention held across around 32 nos. leading to continuous business improvement. Regional Centers of QCFI. GAIL team from specific Initiatives to protect biodiversity, waste, water Work Centre participated in Regional meet. Teams qualified or getting higher marks get qualified management, etc. are discussed in depth in the for National Chapter. Event is held once in a year chapter on ‘Energy and Environment’. at one place in India where all the teams from Additionally, to initiate any projects, the following private and public industries compete with each measures are undertaken and executed other. »» EIA (Environment Impact Assessment) Team getting higher rank in National Chapter qualify for International Competition held every »» SIA (Social Impact Assessment) year in affiliated countries. There are 14 countries »» RRA (Rapid Risk Assessment) apex bodies associating with quality. Teams from India compete with teams from Countries like »» CCOE clearance (Chief Controller of Japan, China, Indonesia, Malaysia, Bangladesh Explosives) etc. Best team awarded as Platinum, Gold and »» HAZOP (Hazard & Operability study) Silver. We are proud to announce that teams from GAIL are regularly participating in all the »» Market study three events. In FY 20-21, the ICQC event was »» Coastal regulatory zone clearance held at Bangladesh wherein 4 teams from GAIL participated in the event and all the four teams »» Construction Management Plan (CMP) got highest award i.e. Platinum award. »» Adopting the state-of-the-art technology TQM department is also undertaking the job of for construction projects requiring minimal implementation of ISO 9001 (QMS) across Zonal resources and minimizing wastages offices and department at Corporate Office. All EIA/EMP report for Proposed Production In addition to above jobs, GAIL undertakes the Operations are available on http:// activities towards observation the Oil and Gas environmentclearance.nic.in. conservation. It is a one-month activity mandated by PCRA /MoPNG under Saksham program. No fines and non-monetary sanctions for non- Various activities like conducting Cyclothon, compliance with environmental laws and/or Walkathon and Talk Show etc. are being arranged regulations were issued against the company. and monitored by GAIL. In the FY21 Cyclothon Energy Management System (EnMS) was arranged successfully in 12 no. of cities GAIL’s Energy Management System’s (EnMS) Environmental Management System objective is to reduce the overall energy (EMS) consumption by monitoring, analyzing, and GAIL improves operational efficiency by adhering setting targets to minimize environmental to environmental policy and adherence to impacts and directly reducing our company’s governmental regulations. It is achieved with the carbon footprint.

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Through effective energy management, operation implementation of the adopted standards. costs can also be reduced in the long run. Through Internal audit teams and the HSE teams conduct metering energy consumption, forecasting such audits. The process involves inspection of opportunities for energy conservation, improving the facilities, employee interviews, review, and efficiency, and recommending cost-efficient and status updates of the regulatory frameworks, environmentally sustainable alternatives, the EMS and its adherence to regional, national, and local helps to conserve energy for a brighter future. regulations. The compliance-level of the projects All major sites have implemented ISO 50001 is assessed by the board-level audit committees Energy Management System (EnMS). Further while the responsibility lies on the departmental details about EMS can be found in the chapter of heads. As a result of our extensive efforts, none of ‘Energy and Environment’ of this report. our products or services was banned across any market/geography. Also, no monetary or non GAIL always strives to look for ways and means monetary sanctions related to non-compliance to improve the energy efficiency in its operations were incurred by GAIL during FY 20-21. by adopting the best engineering practices and carrying out periodic servicing and maintenance Business Information System and of all operational systems as per OEM Digitalization recommendations. In the reporting year 2020- Information security/cybersecurity risks are 21, GAIL has taken multiple initiatives to increase formal components of the overall risk energy efficiency through effective management management framework. processes including the adoption (replacement We have successfully implemented the and retrofitting) of efficient technologies, the information security management system (ISO: best practices, training/ workshops involving 27001:2013) on our systems. To disarm any cyber energy efficiency, energy management and threat, we have established a Security Operations ‘climate change adaptation and mitigation’ Centre (SOC) with an advanced persistent measures. Our highly efficient Integrated Energy threat-mitigation system. Besides, we have Management System aids us in monitoring initiated multiple projects and a private cloud energy consumption, conducting energy audits infrastructure to improve network connectivity and implementing energy efficiency measures. and information security. We have developed All our major installations are ISO 50001 Countering Cyber Attacks and Cyber Terrorism certified for Energy Management System. As an (GAIL/ISMS/CMP: Crisis Management Plan for organization, GAIL remains committed to NDC Countering Cyber Attacks and Cyber Terrorism). (Nationally determined contribution) set by the We are in the process of implementing a Crisis Government of India to address climate change Management Plan to counter Cyber Attacks and and taking possible measures to reduce its Cyber Terrorism, for which we have created an environmental footprints. Incident Handling Team. The disaster handling team will consist of the following teams from the Compliance Management Incident Handling Team to handle and manage We ensure to comply with, and effectively any disaster affecting the Data Centre at Sector-1, implement and adopt applicable national and Noida: international regulations and policy frameworks. »» Crisis Management Cell (CMC) and This is made possible by our internal Legal »» Level II Incident Resolution Team Compliance Systems (LCMs). We carry out periodic audits to ensure failsafe compliance We have the mechanism to review and update with applicable regulations and to ensure proper information security/cybersecurity strategy on

98 GAIL Sustainability Report 2020-21

monthly basis in Apex cybersecurity meeting, Number of Records digital based on the inputs discussed in the fortnightly 450,000 398,284 400,000 meeting. The board of directors are engaged in 332,388 350,000 the review of information security/cybersecurity 300,000 249,784 250,000 strategy. 181,465 191,014 200,000 We have a specific cyber-threat intelligence team 150,000 100,000 (e.g. Cyber Emergency Response Team) in place 50,000 0 for necessary actions. FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

We have implemented the policies and Activities and Initiatives taken for business procedures related to information security/ information system and digitalization: cybersecurity for the employees with an access to critical information in order to ensure that they 1. GAIL has always been at the forefront in are aware of threat issues and the importance of adoption of new technology solutions for information security/cybersecurity. continual enhancement of its business processes. With a vision to be a digitally No information security breaches, or other cyber empowered organization for the operational security incidents or IT incidents occurred at GAIL excellence and stakeholder value creation, in FY 20-21. GAIL has adopted several path-breaking

ÆÆ Operations and Maintenance (O&M) work at GAIL Khera, Madhya Pradesh

99 Energizing Growth Energizing Possibilities

technologies in its technology stack. State-of- 5. GAIL has implemented several web-based the-Art Energy Trading and Risk Management applications like (i) Risk Management System (ETRM) system has been implemented in to monitor key risks and their mitigation the Energy Trading vertical, which has given plans, (ii) Online verification of documents complete visibility of the business segment of candidates, (iii) Jahajrani Web application under one platform. Hyper Convergence for tracking various post-award activities of Infrastructure based Private Cloud setup contracts etc. for enhancing the transparency with latest software and highest level of and completeness of business processes. reliability, availability and efficiency has been established to cater to the business workload. 6. In the CGD segment, GAIL has implemented CGD DPR Mobile App for monitoring 2. During the unprecedented COVID-19 penetration of PNG and CNG facilities by pandemic, GAIL could function well with the its JVs/ subsidiaries. App based CGD Meter help of several technological solutions like Reading functionality as well as BBPS collaboration and virtual meeting platform, based payment system has provided lot of e-Note-sheet, secure access of systems for convenience to the CGD customers. remote working, online transactions, mobile apps, etc. There have been approximately GAILTEL (Telecom & Telemetry) 156,000 man-hours usage of collaboration 1. GAIL has successfully resolved the AGR and virtual meeting platforms in the last one issue with DoT and subsequently DoT has year. withdrawn all the demand notices, amounting 3. GAIL has seamlessly integrated its ERP of about INR 1.83 lakh crore. system with several external applications 2. GAIL is in the process of upgrading the such as (i) Bharat Bill Pay System (BBPS) for Centralized SCADA system with the latest receipt of payment from PNG customers, (ii) technology for monitoring and controlling of Government eMarketplace (GeM) portal for exchange of PO, Bill and Payment details, (iii) the cross-country NG & LPG pipelines. GSTIN portal for submission of monthly GSTIN »» Other initiatives returns, (iv) TCS, e-Invoicing and e-Way bill 1. Regular contact with customers and key portal for online and end-to-end integration decision makers for ensuring customer with Statutory System (v) Gas trading connect; in the pandemic period when platform of IGX for invoicing and payment (vi) physical visit to customer premises is not Banks for auto-reconciliation, etc. for faster and reliable exchange of information. possible, Customer interactions taken up through digital mode rigorously 4. GAIL has adopted Robotic Process Automation (RPA) technology for easing out 2. Regular contact with customers through the repetitive tasks in very large volumes. digital medium like phone calls, mails, Similarly, GAIL has developed several Mobile etc. JZO PC Marketing was able to achieve Apps for employee claims processing, other the highest ever Annual sales in FY 20-21 Business Transactions as well as Reporting 3. Finance: RPA Digital Initiatives for FICO functionalities to facilitate ease of use and access through handheld devices. These 4. Digitization of logbooks so as to do away implementations have resulted in enhanced with manual logbook hard copies and productivity, efficiency and accuracy in the reducing the paper consumption by workplace. going digital.

100 Energy and Environment 09

Eurasian Spoonbill Location : Pata Energy and Environment

Safeguarding the environment is our priority operational activities & company’s supply chain. given that our operations and those in our value GAIL is committed to avoid operational activities chain have impacts on the environment. Through in close proximity to World Heritage areas and a intense review of our operations and existing IUCN Category I-IV protected areas & apply controls, we fi nd opportunities to improve and mitigation hierarchy (avoid, minimize, restore & introduce changes to our strategy. We take this as off set) when operating in areas in close proximity a high priority. We assess our impact across the to critical biodiversity. value chain and implement stringent standards Therefore, GAIL undertakes proactive measures to for ourselves while periodically reviewing and protect the local biodiversity, and to ensure that identifying areas for improvement. This is the core local habitat in the regions where GAIL operates component of GAIL’s environment management are not negatively aff ected by its operations. GAIL agenda. also performs environmental impact assessments We believe in taking conscious steps to minimize before new plants are established. At GAIL, our environmental footprint and reduce we understand the importance of biodiversity the impact through achieving operational management in maintaining the ecological excellence. Our continuous eff orts include sustainability of the area. We have a well-defi ned designing initiatives and mitigation measures Environment Management Plan (EMP) that chalks that can positively infl uence the environment out guidelines and procedures for undertaking around us. To minimize the impact of LHC/ various initiatives for green-belt and biodiversity polymer production, gas fl aring and venting, gas management at GAIL sites. Development of green- transmission and wastewater production, we belt areas is one such initiative which highlights have adopted multiple standards and operating GAIL’s eff orts in preserving the biodiversity and practices. We are working to defi ne a reliable and maintaining ecological balance of the regions in inclusive approach that prevents and manages which it operates. These greenbelt areas comprise direct and indirect environmental impacts of diverse and indigenous species of fl ora and that arise out of our operations and business fauna. There are also huge water reservoirs within activities. It is our constant endeavor to go above these green-belt areas that harbor a variety of and beyond the legal requirements to make this aquatic species. A scientifi c approach is adopted possible. for undertaking maintenance and preservation Biodiversity Management of these green-belt areas in association with the local management. In line with the legal requirements, GAIL is committed to maintain, enhance, or conserve We conduct regular surveys as well as studies biodiversity/ecosystems for company’s own pertaining to environment and ecology of the area

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102 GAIL Sustainability Report 2020-21 in and around GAIL units to ensure prevention and timely mitigation of issues. This system has contributed meaningfully to Goal 14 and Goal 15 of the SDG and are positively impacting life, both, under the water and on the land. It also helps to identify the mitigation measures and preventive actions that need to be undertaken. As a part of our eff orts to safeguarding biodiversity, we have ensured that there are no protected habitats within 10 km of any operating site of GAIL. The pipelines that are laid in the green cover areas Enhancement of Biodiversity and Habitat Development in and around Ecological have a lifespan of 25-30 years. A bare minimum Pond area is used for this purpose. Once the pipeline is laid, necessary actions are taken to restore/reclaim the forest area and it is generally untouched until the requirement of maintenance arises. To limit the negative impact of the pipelines on the environment, we utilize less than one-third of the RoU for the pipelines passing through the forest area. Biodiversity Initiatives at Various Sites Pata

Roadmap for development of Eco Park for Conservation of Biodiversity at GAIL Gaon (Pond Area in Phase-3) has been approved by GAIL Pata has nearly 500-acre land (around 33% the competent authority and an area of ~17Ha of total area) that accounts for Green belt size. A has been demarcated as Biologically Conserved total of ~81460 number of trees were planted at Zone. Activities identifi ed under the roadmap for the operational site and a total of ~63685 number development of Eco Park have been completed of trees were planted in the residential area till FY under phase -I. 20-21. Birdhouse cum feeder at Pata Vijaipur GAIL Vijaipur has a total of 321-acre land (> 30% of total area) that accounts for Green belt size. A total of ~74,500 trees were planted at the operational site and a total of ~15,000 trees were planted in the residential area till FY 20-21. Dibiyapur GAIL Dibiyapur site has undertaken various green initiatives in the year 2020-21 during

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World Environment Day & SAKSHAM-2021, (FGRU) has been commissioned at a cost which includes development of Vertical Garden of around Rs 8.1 crores during the year. The at Dibiyapur Compressor Station. The site has recovered Natural Gas is being used for low- completed the planting of 250 nos. of useful trees pressure fuel demand in Utility Boiler and at its Compressor Station and also 250 trees were HRSGs in the plant. Around 320 MT of Natural planted at GAIL Vihar colony. Gas recovery per month is estimated which translates to fuel cost saving of approx. Rs 12 Vaghodia crore annually. Its environmental benefits are Vaghodia site has undertaken Dharohar project also significant with an annual reduction of under GREEN GAIL initiative for distributing native around 11100 tCO2 emissions equivalent to plant sampling/tree to nearby schools, colleges, CO2 sequestration by more than 7400 fully hospitals, residential areas to enhance the green grown trees plantation. belt in the surrounding areas. b. Installation of 2 Nos of HRSG for DVPL Energy Management Compressors: GAIL has commissioned one of the two units GAIL always strives to look for ways and means of HRSG (Heat Recovery Steam Generation) to improve the energy efficiency in its operations project being implemented at a cost of by adopting best engineering practices and approx. Rs 58 crores for utilizing waste heat carrying out periodic servicing & maintenance available from Gas Turbine Exhaust at Dahej of all operational systems as per OEM Vijaipur Pipeline (DVPL) Gas Compressor recommendations. In the reporting year 2020- Station Vijaipur. The design capacity of each 21, GAIL has taken multiple initiatives to increase HRSG unit is 17.5 TPH Steam. Utilization of energy efficiency through effective management waste heat for each HRSG unit is expected to processes including the adoption (replacement save around 1171 Kg/hr fuel gas equivalent & retrofitting) of efficient technologies, best to around 12 MMSCM Natural Gas saving practices, training/ workshops involving energy annually and reduction in 27000 tCO2 emission equivalent to CO sequestration by efficiency, energy management and ‘climate 2 18000 trees annually. The other HRSG unit is change adaptation and mitigation’ measures. Our also ready and will be commissioned soon. highly efficient Integrated Energy Management Accordingly, the benefits will multiply. System aids us in monitoring energy consumption, conducting energy audits and implementing c. Rich-Lean Gas Corridor Project for integrated energy efficiency measures. HVJ pipeline network:

All our major installations are ISO 50001 In order to operate HVJ-DVPL pipelines as an integrated system in optimal & cost- certified for Energy Management System. As an effective manner, implementation of rich organization, GAIL remains committed to NDC -lean gas corridor project by creating (Nationally Determined Contributions) set by the interconnection facilities in HVJ, DVPL-I/II Government of India to address climate change pipelines between Vaghodia to Vijaipur was and taking possible measures to reduce its taken up at an estimated project cost of Rs environmental footprints. 60 crores. This arrangement will facilitate a. Installation of flare gas recovery unit (FGRU) the transport of approx. 77-78 MMSCMD at GAIL Vijaipur: without the requirement of any intermediate To recover gas flared through dry gas seals compression between Vaghodia and Vijaipur. of various compressor units in C2C3 recovery The modification will also prove beneficial in Plant at GAIL Vijaipur, Flare Gas Recovery Unit efficient utilization of installed compressors on

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integrated HVJ pipeline networks. Previously »» Installation of isolation valve to facilitate a similar modification was implemented at RLNG Intake from HLPL Hazira into HVJ Jhabua Compressor Station, which facilitated compressors discharge instead of compressor transportation of Natural Gas between suction line at Hazira Compressor station has Jhabua and Vijaipur without compression at resulted in fuel gas saving on account of no intermediate compressor station at Khera. additional compression required for RLNG for mixing in HVJ pipeline network. With completion of modification work at IP station Vaghodia, rich-lean corridor project is »» For maintaining cooling water outlet almost complete and is expected to be taken temperature within desired range, 02 in line very soon thus providing the benefits numbers of VFDs have been procured for as enumerated above. controlling ID fan operations of cooling tower of C2C3 Recovery Plant, Vijaipur. d. Other major initiatives for saving Energy Renewable Energy at GAIL sites »» Replacement of 02 numbers of 280 KW old & less efficient electrical motor with new energy »» GAIL has ventured into renewable energy efficient motor for cooling water circulation space and already has the installed capacity pumps at LPG recovery plant Vijaipur. Total of 12.3 MWp solar power and 118 MWp wind annual saving from this project is approx. energy through its mega projects. In addition 1.47 Lac electricity units as it brings motor to these mega projects, GAIL has installed efficiency improvement from 91% to 94%. smaller capacity solar power plants at its As a result, a monetary saving of Rs 9.58 Lac pipeline installations Plants and Townships to annually is estimated by this measure. reduce the requirement of Grid Power, thus making the installed solar capacity of 12.6 »» To meet the electrical power requirement at MWp. During the year also, GAIL has taken the GAIL complex at Vijaipur, the company has following steps for utilization of solar energy contract demand of 13500 KVA for Grid Power further. supply with MPMKVVCL. To contribute for efficient grid operation, GAIL has maintained »» Successfully commissioned 40 KWp Rooftop a power factor above 0.99 throughout the Solar Power System each at GAIL Samakhiali year and has got Rs 3.49 crores Rupees as and GAIL Kandla with an investment of incentive in electricity bills. approx. Rs 33 lacs. »» Optimization of Molecular Sieve Dryer »» GAIL’s Mumbai region has also commissioned running cycle has been done at LPG recovery Roof top solar power plants of combined plant Vijaipur from 40 hrs to 60 hrs which has capacity of approx. 44 KWp at various pipeline resulted in fuel gas saving during the dryer installations in the region with an investment regeneration. of approx. Rs 16.5 Lacs.

»» Enhanced capacity utilization of GPU Vijaipur »» The company is implementing a 1.8 MW has resulted in reduction in specific energy solar power plant at GAIL Vijaipur complex consumption to the tune of 4.3% over with a project cost of approx. Rs 8.3 crores. previous year. The project was expected to be completed »» There is a constant drive at various GAIL during 2020-21. However, due to supply installations including pipeline stations to disruption and restriction in movement of replace conventional Lights with energy man & machinery amid COVID-19 pandemic, efficient LED lights and replacement of old the project is slated for completion during FY ACs with high star rated energy efficient ACs. 2021-22.

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»» GAIL has also undertaken to implement roof MT against the IMOU Target of 93 MBG/MT top solar power plants at various installations for FY 2020-21. Open Access Power Import across the country with a combined capacity started through IEX (Indian Energy Exchange) potential of around 3.2 MW. The project w.e.f. 01.01.2021. Saving on account of activities were hampered due to COVID-19 Energy Bill in FY 2020-21 is 2.9 crore. Pata has pandemic and it is expected that we will start also implemented the Energy Management reaping some of the partial project benefits System (ISO: 50001:2018) for the first time. from FY 2021-22 onwards. Emission Management Capital investment on energy conservation As a responsible corporate striving to augment equipment the Government of India’s capacity to meet their The capital investment on energy conservation commitments in the Nationally Determined equipment by the company during the year on Contributions (NDCs) and commitments to the the completed projects is approx. Rs 64.9 crores Paris Accords, we understand our role to achieve as per the following details: a low-carbon economy by controlling emissions arising out of our operations. The key impactful Project Capital areas from an emission point of view within the Investment gas transmission, liquid hydrocarbon, Natural Gas (INR Lakhs) processing and polymer production are primarily Installation of 2Nos of HRSG for 5420 air emissions and greenhouse gas emissions. DVPL compressors at Vijaipur To ensure effective emission control, we Installation of Flare Gas Recovery 810 monitor and regulate emissions in line with the Unit at GAIL Vijaipur Greenhouse Gas Reporting Standards by World Business Council for Sustainable Development Installation of LED Lighting at 124.3 (WBCSD), ISO 14064- 2006 and American Various locations Petroleum Institute (API), a compendium of GHG Replacement of old inefficient 71.3 emissions methodologies for oil and Natural Gas motors industry –2009. To further strengthen emission control, we undertake various initiatives to reduce Procurement of VFDs for CW ID 12.0 and monitor GHG Emissions. fans Our emission management initiatives are Solar PV Plants 49.3 categorized into core areas. Replacement of old ACs/geysers/ 3.3 Reducing Methane Emissions Fans Methane, which is one of the components Other Projects and Achievements of Natural Gas, has a higher global warming potential and a lower emission rate during »» CO is generated in the Gas Sweetening 2 burning. During Natural Gas transmission, unit upstream of the C2/C3 recovery unit at particularly between the pumping and storage GAIL Vijaipur. To reduce carbon footprint, PD operations and between the storage station and department has been working on feasibility the end-user, some amount of gas escapes into of supply of CO from GAIL Vijaipur plant to 2 the atmosphere, thus reducing the amount that NFL Vijaipur for Urea production. is sold by operators to the market. For a Natural »» GAIL Pata achieved lowest yearly average Gas marketing and distribution company like Specific energy Consumption of 88.5 MBG/ GAIL, it is prudent to manage emission rates

106 GAIL Sustainability Report 2020-21 due to environmental and economic impact. We Water Management continuously strive to reduce leakage during Water scarcity has become a crucial problem transmission with the assistance of our industry across the globe. More and more areas are being peers to establish effective strategies to detect covered under water stress. We, at GAIL, believe and reduce potential leaks. that water is a lifeline for our society. Hence, over Reducing production related GHG these years, we have set-up systems and explored Emissions technological advancements that are having a Our direct emission is primarily from burning of quantifiable impact on conserving water through Natural Gas , diesel and LPG. Natural Gas and LPG innovation. We are monitoring and reporting are also vent out in miniscule quantities in some water consumption at water stress areas. In FY processes causing methane emissions. Electricity 2020, we have also conducted assessment of purchased for operational purposes including water-stress sites to understand the impacts of manufacturing and transmission contributes to our operations. There were no negative impacts indirect emissions. We follow certain practices found on water bodies. to reduce the production related GHG emissions In 2020-21, we consumed 21.3 million m3 of water, such as: out of which, nearly 93% of water is sourced from »» Monitoring and tracking our energy surface water (having TDS < 1000 mg/l), 6.4% consumption from municipal and only 1.3% of water from ground water. Water consumption at water stress »» Setting internal targets to reduce the area is around 4% of total water consumption. consumption We are encouraging innovative approaches »» Energy generation through renewable to conserve water at our sites through sources i.e. Solar, wind etc. various water conservation initiatives such as Reducing Other Air Emissions rainwater harvesting, fresh-water consumption minimization, monitoring and management of At GAIL, emission management is carried out waste-water discharge, wastewater treatment through the cloud-based monitoring system connected to our emission analyzers. It is then and recycling based on our Environmental policy, linked to the Central Pollution Control Board national, local, and regional guidelines. (CPCB) and State Pollution Control Board (SPCB) The discharge of water at manufacturing sites is websites. With consistent efforts, we have monitored to validate compliance with Central significantly managed to reduce our emissions Pollution Control Board (CPCB)/ State Pollution from GAIL plants, offices, pipeline installations, Control Board (SPCB) effluent limit. Wastewater townships, and training centres pan India. from processes is treated, through effluent Ozone Depleting Substances (ODS), which are treatment plants (ETP). The treatment includes prohibited by our internal policies, are a common adjusting pH, removing suspended solids and component in household electronics such as reducing Biological Oxygen Demand (BOD), if any refrigerators, air conditioning systems, etc. They No water bodies were affected by the discharge. are characterized by their long atmospheric Most GAIL facilities are zero liquid discharge. In lifetimes, during which they act as precursors 2020-21, total water discharge was 1.46 million to deplete the stratospheric ozone layer. m3. GAIL Pata alone contributes 95% in total Additionally, ODSs are also strong greenhouse water discharge which being discharge in Sengar gases. To reduce scope 3 emissions, we encourage river (having TDS<1000 mg/L) as per regulatory our team to conduct video conferencing rather discharge limits and permissions. We as well than business travel. as respective regulatory agencies (SPCB/CPCB)

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107 Energizing Growth Energizing Possibilities monitor effluent water quality at the plant outlet the above, work of Rainwater Harvesting is also and for the final water body. under progress at Dibiyapur Compressor Station Water Management Initiatives at GAIL Sites which is expected to be completed by Sept’2021. Vijaipur Gandhar GAIL Gandhar has created a rainwater harvesting »» Pure condensate from HVAC system was pond within the premises for collection of being drained locally, resulting in loss of natural run-off and recharging of groundwater. water and energy. Hence to conserve the Approximately 2000 m3 Water utilized for MST-B & energy and water losses, initiatives were C inspection was reused for horticulture purposes taken and Pure condensate line at MCR & after appropriate treatment. SS11 HVAC were back flushed and condensate pumps were commissioned for exporting the Vaghodia condensate to CPU (DM Plant) for reusing. »» Treated wastewater is being recycled to As per calculation, water saving in tune to use for make-up of Fire water storage. No amount Rs. 80 lakhs per year (approximately) wastewater is discharged outside the plant was realized. In addition to this, leakages premise. from steam traps were also attained to save »» Reject water from the Centralized RO plant approx. 2 TPH steam on account of arresting installed at Plant is being utilized in FW leakages. Initiative also have been taken to makeup and horticulture purposes. stop condensate waste from PRDS (PRU TR- 11) by attending control valve operation »» Installation of additional water flow meters for better water accounting and reconciliation. philosophy. »» Regular maintenance of rainwater harvesting »» Carrying out feasibility study for reclamation reservoirs for capturing more water during & reuse of treated effluent & DM n-pit effluent rainy season for improving the water table. for cooling water make-up & treated sewage for horticulture purpose for Gail-Vijaipur Chhainsa complex (Project Cost: 4053300). Micro irrigation project for lawns was completed. Dibiyapur Sensor based taps have been installed to reduce water wastage in bathrooms and kitchens. There »» Regular monitoring of water consumption is is currently zero water discharge from plant as all being done using water meters. water discharged is being used in irrigation »» Renovation of Sewage Treatment Plant has Waste Management been completed at GAIL Vihar colony and the same is in operation (Project cost: INR 63.70 We aim to minimize the generation of waste from Lakhs). our facilities and try to reuse/recycle to the extent possible. The waste generated in our operation »» Cooling Towers of HVAC System of Admin can be both hazardous and non-hazardous. Building & Control Building have been As a part of our waste management process, replaced with new one (Project Cost: INR 6.28 we aim to minimize both hazardous and non- Lakhs). hazardous waste. We follow the 3R process of All of the above efforts have resulted in 11.89% Reducing, Re-using, and Recycling of the non- reduction of Ground Water Consumption in FY hazardous waste generated at GAIL sites. Our 2020-21 as compared to FY 2019-20. Apart from polymer packing is being recycled through the

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108 GAIL Sustainability Report 2020-21 secondary and tertiary markets. No waste related Non-Biodegradable household wastes has impacts of business operations or product were been arranged. Organic Waste Decomposing found as per the waste audits carried out interally Machine has been procured to convert and external agencies (SPCB, third party audits). biodegradable waste to fertilizers. Waste Management Initiatives at »» Use of PET bottles has been discouraged at GAIL Sites Compressor Station. Instead use of copper/ Pata steel/glass water bottles has been encouraged and implemented at Compressor Station. »» A dedicated Waste Storage Area for scientific »» Awareness brought among the employees waste storage and collection before dispatch about standard operating procedure for to Common Hazardous Waste Treatment, production of Vermicompost. Storage and Disposal Facility (CHWTSDF) and Recyclers commissioned. »» Awareness session on waste segregation imparted to GAIL Vihar residents. Training »» 88 MT of organic waste processed in Organic session provided to sweepers for collection Waste Composter (Plant and Township) in FY & disposal of segregated waste. Residents 2020-21. of GAIL Vihar segregate biodegradable and »» GAIL’s Petrochemical Plant at Pata generates non-biodegradable wastes separately and Oily WWTP Sludge, Used Oil, Waste Oil, Tar, then the sweeper collects the waste for their Tar Ash, Spent Carbon and Molecular Sieves appropriate disposal. which are handled and disposed as per rules »» Waste Lube Oil disposal as per Schedule 1 Cat following environmentally sound procedures 5.1 of Hazardous and other Waste Rules, 2016. as below: Gandhar 1. Oily Wastewater Treatment Plant sludge is sent to external Treatment Storage & »» GAIL Gandhar is carrying out timely and Disposal Facility (TSDF) for incineration & suitable disposal of both hazardous and non- landfilling. hazardous waste i.e. Disposal of O&M Scrap at GAIL Gandhar, Disposal of Slop Oil, Disposal 2. Waste and Used oil is collected in drums of Biomedical waste, E-waste etc. which are kept at demarcated location in yard area and sold to approved recyclers/ »» Separate dustbins have been placed at both re-processors registered with MoEFCC / township and plant for segregation of dry and CPCB/SPCB. wet waste. Employees, family members and contractual workers are being continuously 3. Tar, Spent Molecular Sieves and spent made aware about the importance of carbon are stored in earmarked Storage segregation of waste during various Swachh Yard and sent to external Treatment Bharat programmes. Storage & Disposal Facility (TSDF) for »» Awareness to the local community and disposal. other stakeholders in various ways was also Dibiyapur imparted during the year. »» Disposal action was taken by the unit to sell Vaghodia wastes generated during the year through »» Hazardous wastes are segregated and stored M/s MSTC. Total 140.605MT of Metal Scrap in dedicated storage space. Later they are has been disposed off during FY 2020-21. disposed off through approved recyclers. »» Separate collection of Biodegradable and Plastic waste, bio-medical wastes and

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e-wastes are segregated and given to third Chhainsa party recyclers. »» The scraps, which included Mild steel »» GAIL Vaghodia has also launched a PAPER scraps, plastic, used oil, drums, GI sheets etc. RECYCLING PROJECT whereby wastepaper amounting to about Rs. 2.59 lakhs including from various departments are being GST were sold off to M/s TKJ Infrastructure Pvt collected, shredded, weighed and exchanged Ltd, Delhi. with a local vendor for fresh white paper rim. »» Dry waste (eg. Paper, plastic, metal etc) and »» Used Oil, Waste oil and empty Mercaptan, wet waste (kitchen waste) are segregated at methanol, etc. drums are the only hazardous source and disposed of separately. Recyclable waste generated at site. dry waste like plastic, metal etc. are sent to »» Campaigns for Swachh Bharat Abhiyan recycler were conducted. Various awareness related activities were restricted due to the spread Hazardous Waste Management of COVID-19. Although all efforts were »» Hazardous waste is toxic, and it can be made for making the public aware through potentially harmful to human health and wall paintings and message boards in the environment. At GAIL, hazardous waste nearby places. Awareness on cleanliness for is treated in compliance with the applicable employees with emphasis on segregation norms and regulations. Type of hazardous of waste (dry and wet) and also regarding waste generated will vary from site to site. maintaining personal hygiene at home and For example, at GAIL Pata site, Tar, oily WWTP workplace. sludge, slop oil, molecular sieves, used oil, waste mineral oil, spent carbon, ashes Samakhiali etc. are identified hazardous whereas at »» Separate dustbins provided for dry and wet Vijaipur asbestos, glasswool, ceramic, empty waste awareness programs organized at barrels/containers/liners contaminated nearby areas. with hazardous chemicals /waste, used or »» Conversion of food wastes and plant tree spent oil, waste or residues containing oil leaves to organic fertilizer. are considered are identified as hazardous Vijaipur waste. Waste oil is generated at most of the sites. The disposal of such waste is carried »» Hazardous waste generated at the site out by the State Pollution Control Board are Asbestos, Glasswool, Ceramic, Empty (SPCB) authorized recyclers or sent to SPCB barrels/Containers/Liners Contaminated with authorized Treatment Storage and Disposal Hazardous Chemicals /Wastes, Used or Spent Facilities (TSDFs). In this reporting year 2020- oil, Waste or Residues Containing oil. These 21, there was no significant spill. wastes are disposed as per Hazardous Waste Management Rules 2016. All the Hazardous Research and Development waste disposed of through the TSDF facility. Initiatives »» Dry & Wet waste is being segregated at Natural Gas is a critical fuel source for propelling GAIL Township, Vijaipur & being disposed the Indian economy. The share of Natural Gas appropriately. in the country’s energy basket is consistently »» Organic Waste composting plant operation improving, due to increased use of Natural Gas was maintained throughout the year except both as a fuel and feedstock for industry and lockdown period. as a fuel for electric power generation. GAIL, as

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110 GAIL Sustainability Report 2020-21 a pioneer of the Natural Gas economy in India, duty high speed direct injection Compression operates and maintains pan India Natural Gas Ignition engine, and to minimize NOx, Particulate transmission pipeline networks, comprising high- Matter (PM) and CO2 emissions coupled with fuel strength steel pipes of varying diameters, for efficiency improvement, is being pursued with supplying Natural Gas to various consumers. In IIT-Bombay. this direction, one of our research thrust areas is In addition to the above initiatives, GAIL on the “Pipeline Asset Monitoring and Integrity research efforts are also directed towards Management” for enhancing the reliability, public “Waste valorisation” aspects towards zero waste safety, and operational efficiency of Natural discharge. In this direction, GAIL is pursuing Gas infrastructure. Under this initiative, GAIL in collaborative research works with IIT-Madras collaboration with IIT-Kanpur have developed for “Wastewater Purification and Recycle using a Prototype of “Adoptive Intelligent Pipe Health Gas Hydrate Process” as the development of Monitoring Robot” for Fuel transporting systems. optimized hydrate-based processes is supposed Currently trials incorporating the new sensors, to be energy efficient as compared to RO based Long range communication and Speed control wastewater purification. systems are being carried out with the prototype. Further, for aerial monitoring of pipeline ROU Expenditure for Research and for early identification and prevention of Development activities encroachments, GAIL in association with IIT- GAIL consistently earmarks adequate R&D Kanpur is also developing a “Low Altitude Long budget to pursue various collaborative research Endurance (LALE) Unmanned Aerial System initiatives with reputed research and academic (UAS) for Surveillance, Reconnaissance and Asset institutes and to carry out new developmental Monitoring (SRAM). Vertical take-off and landing, works, involving Technology upgradation and auto navigation system, auto-pilot, beyond visual Modernization works, at various GAIL facilitates. flight, electrical propulsion, gas leak detection, GAIL has incurred a total R&D expenditure of low weight (11kgs) etc. are the salient features Rs. 20.12 crore in the financial year 2020-21. of UAS. A trial run within IIT- Kanpur has been This includes Rs.10.92 crore on Developmental successfully completed with the prototype projects; Rs. 9.20 crore on Sponsored Collaborative and now works involving integration of high- R&D works with various Research Institutes & resolution gas sensing cameras for identification Contribution to Centre of Excellence in Oil, Gas & of leaks are in progress. Energy (CoE-OGE) established at IIT-Bombay by Under the thrust areas of “Natural Gas utilization/ Oil & Gas CPSU’s. Value addition”, the following collaborative Developmental works include various Technology research works are being pursued at various upgradation and Modernization works carried research institutes. out at various Process Plants and Pipeline O&M GAIL in association with IIT-BHU, is developing a facilities. ‘Membrane Reformer’ for the production of fuel The Collaborative R&D works are carried out in cell grade ultra-pure hydrogen by utilizing Natural the Thrust areas of Pipeline Asset Monitoring and Gas as a fuel. In addition, a novel heterogeneous Integrity Management; Natural Gas Utilization/ catalyst for oxidative coupling of methane to Value addition, CO2 and Waste Valorisation’s etc. ethylene production is also being pursued with GAIL has contributed Rs. 2.18 crore as first CSIR-IIP, Dehradun. Further, a research work, instalment to Centre of Excellence in Oil, Gas and to investigate the combustion and emission Energy (CoE-OGE) set up at IIT-Bombay along phenomena of dual fuel (CNG & Diesel) light- with other Oil & Gas PSUs, to carry out Industry

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relevant R&D works in the area Gas Hydrates, IIT-Delhi. A pilot project for direct fixation of CO2 Pipeline management, Wealth from Agricultural using microalgae in a raceway reactor is also residue, Water and wastewater management etc. being implemented at PATA. in the seed and mission mode. Under the clean energy initiative, GAIL is Initiatives to promote low carbon exploring various potential alternatives for energy generation. One option is the use of bio technology including CO2 utilization, clean energy etc. organic waste feedstock for the production of biogas through anaerobic digestion. Food waste, Global CO emissions in 2020 fell by 2.6 billion 2 for instance, due to their relatively high starch and tonnes due to COVID-19 pandemic lockdowns. protein contents and high biodegradable nature, During this period India’s emissions fell 9.7% to a is a suitable organic source for bio-methanation. little more than the world average of 9.6%. Even In this direction, GAIL in collaboration with though, Indian efforts to cut CO emissions, since 2 CSIR-IICT, Hyderabad, is developing a high rate the Paris Agreement are showing positive results, bio- methanation process for the generation of but still concerted research efforts are required methane enriched biogas (more than 90%) from to find feasible solutions for bulk utilization of food waste. The main emphasis of the project is CO . Valorization of CO for chemical synthesis is 2 2 on development of an anaerobic digester system still very challenging as the CO molecule is very 2 for generation of enriched Methane. inert and requires immense energy and versatile catalysts for reactions. In this aspect, GAIL is Start-up Initiatives taken by GAIL developing novel and cost-effective catalysts GAIL’s Start-Up initiative ‘Pankh’ was launched for production of carbon dioxide-based poly to build a strong eco-system for nurturing carbonate diol polymers in association with IISER, innovation and the spirit of entrepreneurship. Tirupati. This project also aims to find an optimal GAIL has created a corpus of Rs. 100 crores for condition to incorporate a maximum of 45 - 47 investing in Start-Ups. Investment Proposals wt. % CO in the polymeric product under milder 2 from Start-Ups are received on the Start-Up web reaction conditions with minimal additional Portal. GAIL has made investments in 29 Start- energy input and less by-product formation. Ups operating in various Focus Areas of GAIL. The Thus, any success in the development of the amount disbursed to various Start-Ups in FY 20- above versatile catalyst for the conversion of CO 2 21 is Rs. 17.01 crore. GAIL has signed 5 investment to Polycarbonate Polymer can provide immense agreements worth INR 15.30 crore with Start-Ups benefit and mitigation of CO emissions. Further, 2 operating in the area of Compressed Bio Gas the research project on development of thermally (CBG) in FY 2020-2021. stable, water tolerant novel heterogeneous catalysts for direct hydrogenation of CO2 to Methanol and Dimethyl Ether is continued with

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Climate Change 10

Sparrows & Weavers Location : Pata

113 Climate Change

Climate Change is the biggest threat facing humanity over the long term today

United Nations Framework Convention on pre industrial level by the end of this Century Climate Change (UNFCCC) defi nes climate and attempting to limit it to 1.5 degrees. India change as “a change of climate which is attributed submits its Nationally Determined Contributions directly or indirectly to human activity that alters to the UNFCCC mentioning its goals for the action the composition of the global atmosphere and against climate change. The NDC’s bind all the which is in addition to natural climate variability citizens of the country to the responsibility of observed over comparable time periods”. The ensuring that the goals are met. GAIL being a impact of emissions added into the atmosphere responsible company recognizes the signifi cance by human activities has led to a gradual trigger of mitigation and adaptation goals set by India in for enhanced greenhouse eff ect. The intentions its NDC’s. of development gave rise to an unprecedented alteration in the cycles of Nature. The changes The Sustainable Development goals (SDG’s) are such that many systems of the nature have comprises of a set of targets building a framework undergone drastic alterations and are standing on for leading development for the period till the verge of tipping points. The most concerning 2030. By endorsing the universal 2030 Agenda of all changes are the extreme weather events, for Sustainable Development, including its 17 threat to ecosystem, chronic weather changes; SDGs and 169 Targets, the global community which get aggravated by uneven distribution of reaffi rmed its commitment to sustained and impacts, unequal opportunities and adaptation inclusive economic growth, social inclusion, ability. This calls for an urgent mitigation and environmental protection, and fostering peaceful, adaptation plan by every individual so that just and inclusive societies through a new global present and future harm to nature and its partnership. The prospected 2020 Sustainability ecosystems are reduced, ultimately ensuring pathway could be summarized into three broad betterment of all species on earth. categories of reducing transmission of virus, Climate Change and Sustainable helping the socio-economic conditions recover Development from pandemic loss and align the development with SDG 2030 framework while addressing India along with over 190 countries is a part of the climate action. Paris Agreement which brings us together to take action against the changing climate so that the If the goals of the SDG are to be met and temperature rise is limited within 2 degree Celsius sustainable development is to be fully achieved

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114 GAIL Sustainability Report 2020-21 then the action against climate change is a key » Protecting our forests, peat lands and oceans factor and driver to actully meet the SDG targets. means we and future generations will be able Achieving Sustainability by Action against to enjoy nature and their ecosystem services, Climate Change like a healthy life under water and livelihoods for millions of people, cities and villages that The 2030 Agenda’s Sustainable Development are protected from storm surges or sand Goals include the SDG 13: “Take urgent action storms (SDGs 14, 15). to combat climate change and its impacts” as a stand-alone goal on climate action, but it is Vision and Action key to mention that climate change aff ects all The importance of decarbonization has been dimensions of sustainable development. Climate felt across the globe. We recognize the urgency change and climate action are intrinsically of climate change and the need to work connected to all sustainable development goals. collaboratively in a scientifi c and practical manner. The crosscutting areas of the various SDG’s with Thus, GAIL under the guidance of the Government Climate change are : of India’s Principal Scientifi c Adviser (PSA) will » SDG 12: Responsible Consumption and work towards making our operations carbon Production: The production of goods and Neutral or achieve Net Zero GHG Emissions. This services today not only depletes natural can substantialize by setting ambitious goals, resources and causes environmental which will be based on the capacity of GAIL while degradation including soil, water and air at the same time encouraging innovation and pollution but also generates huge amounts creativity. The sharing of ideas and knowledge of GHGs, therefore contributing to climate will be a continuous and fruitful collaboration, change throughout their life cycle. extending to exploring new ways of waste management at GAIL, and mainstreaming more » SDG 7: Aff ordable and Clean Energy : An SDGs with the business actions and decisions. immediate increase in renewable energy technologies and increased energy effi ciency Our management is already in action to fulfi ll our is an essential part of reaching Paris goals carbon neutral ambitions. stated under the NDC of India. Cleaner fuels GAIL has set a remarkable target to install 1 GW than the conventional high carbon emitting capacity of Renewable Energy in the coming ones will serve as a transition platform to years, to signifi cantly contribute to India’s NDC as reach complete Carbon neutrality. well as help in making GAIL Carbon neutral at the » Climate action on energy effi ciency can earliest along with more explored benchmarking increase energy access and reduce energy eff orts and initiatives. The members of GAIL across expenditure (SDGs 1, 7), can improve health all departments’ shares the following vision for (SDG 3), can reduce water pollution (SDGs action against climate change which assist us 11, 14), and increase economic productivity in working in a collaborative and coordinated (SDGs 8, 9). manner towards achieving Sustainability and Carbon Neutrality: » Reduction in burning dirty fossil fuels like oil and coal means cleaner air in our cities and » To ensure greater public access to aff ordable, homes (SDGs 11, 12). This will lead to less reliable and modern energy services which people suff ering and dying from respiratory are low on carbon footprint through the diseases, especially children and elderly, accelerated cost-eff ective provision of clean and will enhance everyone’s well-being and energy, renewable energy and an Eff ective quality of life (SDG 3). Carbon Neutral business plan.

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»» Exploring potential of decentralized The area of transition in technology, management renewable energy incorporation, alternative as well as finance tools for climate change fuels such as Compressed-Biogas, and adaptation are evolving every day, a dedicated innovative technology to reduce emission by R&D team at GAIL is motivated to carry out applying scientific rationale and testing. research for bringing out best practice which will contribute to Sustainability and Climate Change »» Enable and promote cooperation and action. partnership towards the implementation

of Goal 7 by transitioning to net-zero CO2 The transition to cleaner sources of energy emissions by mid-century so as to meet the require the proper capacity in terms of financial goals of the Paris Agreement including by tools along with accountability being taken for introducing carbon pricing. the activities which contribute to emission. The strategy to deal with both these requirements has »» Increase awareness, capacity and knowledge been believed to be achieved by Carbon Pricing. sharing, while also strengthening the ability GAIL is positive to bring internal carbon pricing of the supply chain of the company to take within its business activities to uncover new areas stronger action against climate change. of climate adaptation and mitigation. The action against climate change include GAIL has assessed the risk potential of various Adaptation and Mitigation. The adaptation will sites to sea storm surges, cyclone, excessive rains increase the resilience against the present or & flood and suggested important actions for predicted changes of climate while mitigation is each department and individual before, during aimed at reducing the greenhouse gases such and after such events. Additionally, mitigation that the source of increasing global average measures are also taken into consideration at temperature is effectively addressed. GAIL is design stage prior to construction. Currently dedicated to performing both adaptation and all the sites located in the coastal parts of India mitigation to climate change by taking up various are incorporating flood mitigation measures. initiatives and actions. With the entire world GAIL has also setup a Crisis Management Plan dedicated to set targets for carbon neutrality in -for safe shutdown. As per our assessment, Cost their business boundary of reporting, we have of the plant shutting down one of our major acknowledged the need to carry out a target plant in PATA for one day due to climate risks setting for making GAIL carbon neutral, which will such as flooding would be INR 8 crore. Cost of contribute to the NDC’s of India, set a benchmark the response of the risk is estimated around iNR for fossil fuel companies while also opening up 10 crore for making flood defense system at various opportunities for the company to become Pata. Please refer to carbon disclosure project resilient for tomorrow. (CDP) report for more details. We are working Adaptation on building more comprehensive plan to adapt The impact of climate change on the availability against climate change impact. of crucial natural resources such as water Mitigation are quite evident. That is why at GAIL, we In Paris climate agreement, India has pledged to have implemented water conservation and reduce the emissions intensity of its GDP by 33 to management systems at all the sites to use 35 percent by 2030 from 2005 level. water judiciously and incorporate circularity in its use, wherever possible. The plantations and »» To achieve about 40 percent cumulative expansion of green belt across several sites of electric power installed capacity from no GAIL are aimed to contribute to replenishment fossil fuel based energy resources by 2030 of ground water level while acting as carbon sink.

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with the help of transfer of technology and the Natural gas has a higher global warming low cost international finance including from potential and a lower emission rate during Green Climate Fund (GCF). burning. During natural gas transmission, particularly between the pumping and storage »» To create an additional carbon sink of 2.5 to operations and between the storage station and 3 billion tonnes of CO equivalent through 2 the end-user, some amount of gas escapes into additional forest and tree cover by 2030. the atmosphere, thus reducing the amount that Natural gas being the cleanest fossil fuel, when is sold by operators to the market. For a natural burned, releases 50% less CO2 than that of coal gas marketing and distribution company like and 20-30% less than oil. By virtue of inherent GAIL, it is prudent to manage emission rates characteristics of natural gas, being a cleaner due to environmental and economic impact. We alternative to other polluting fuels. Further, it will continuously strive to reduce leakage during help in generating clean power in tandem with transmission with the assistance of our industry renewable energy. peers to establish effective strategies to detect GAIL has been consistently working on and reduce potential leaks. accelerating and optimizing the effective and Initiatives/Strategies to reduce methane economic use of natural gas and its fractions for emissions the benefit of the national economy. The Indian »» LEL Gas detectors are installed at various government is committed to moving toward a locations under Agra region so as to check gas-based economy by raising the share of natural any gas leakage at the stations. Moreover, gas in India’s energy basket from the current 6.2% 20 number of hand held LEL meters were to 15% by 2030 to support the transition to a low- procured for the line patrollers so as to check emission future. any gas leakage in the pipeline section. These Reducing Methane Emissions detectors will help mitigate direct release of Methane that is one of the components of gas, hence mitigating emission.

ÆÆ Voltaic Solar Power Project at Suvali Gram Panchayat. GAIL Hazira, under its Corporate Social Responsibility initiative successfully completed the Installation of Photo Voltaic Solar Power Project at Suvali Gram Panchayat. A small inaugural function was hosted at Suvali Gram. Shri Satish Geda, CGM (O&M)/OIC of GAIL Hazira Compressor Station, and Suvali Gram Panchayat were present for the ceremony. Shri Satish Geda inaugurated the function and started with ribbon cutting. Suvali Gram Panchayat expressed their gratitude towards GAIL (INDIA) LIMITED for a gesture as magnanimous as this. They were happy to have a solar panel in their village. The assistance by GAIL for installation of PV grid would assist them in the day-to-day aspects. This assistance not just limited to financial but also included keen involvement of the GAIL officers in ensuring that the project was complete on time. Similarly, GAIL expressed their feeling of satisfaction in being a part of a new initiative that will pave a path of success for Suvali Gram.

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»» Leak Detection System (LDS) has been Agencies like SECI, NTPC, etc. for developing implemented for Kailaras-Malanpur Pipeline. green field projects, mainly solar projects as Reducing Energy consumption: Independent Power Producer (IPP). At our sites number of initiatives are taken to GAIL shall Participate in solar tenders with the reduce electricity and fuel consumption. These minimum capacity of 100 MW and continue to intiatives are covered in details in Energy and participate till the cumulative awarded capacity Environment Chapter. In FY 2020-21, we sold 89.2 reaches 500 MW. MMSCMD of natural gas to our customers. It can GAL is committed to reduce its carbon footprint considered as energy consumption outside the and implement renewable projects and it has a organisation. However, it should be noted that total installed capacity of 130.6 MW of alternative usage may vary as per customers i.e. fertilizer energy. Further, we have announced the primarily uses natural gas for feedstock, whereas installation of 1000 MW of renewable energy to as sectors are for direct heating and electricity. Our pipelines are reaching upto far remote meet our carbon neutral efforts by 2035. areas which is reducing cost as well as emission Ambitious target for renewable associated with LPG/CNG transportation. energy Natural gas being the cleanest fossil fuel helping industries to reduce their emission by replacing Our target is to add 1 gigawatt of renewable solid polluting fuel through natural gas. energy through solar and wind both together Renewable energy or any other renewable part. And towards that we are doing both inorganic and organic In the Paris Agreement, India has committed efforts to achieve the same. We have chalked to Nationally Determined Contributions (NDC) out around 4000 to 5000 crores to achieve target of reducing India’s emissions intensity by our target, if we get good projects we can 33-35% from 2005 levels by 2030 by achieving even exceed this target. 40% of its total electricity generation from non- GAIL needs 800 MW of renewable energy to fossil fuel sources. Accordingly, Government of become carbon neutral. Through 1 GW of India (GoI) has set a target of installing 175 GW of renewable energy we can go beyond net zero RE capacity by the year 2022, which includes 100 carbon emissions. GW from solar, 60 GW from wind, 10 GW from bio- power and 5 GW from small hydro-power. GAIL’s ‘Strategy 2030’ also recommended for building Biodiversity: new businesses with long term potential and Trees are the lowest hanging fruit when it comes investing in renewables through Mergers and to mitigating direct emissions. GAIL recognizes Acquisitions (M&A) and or developing renewable the importance of Nature based solutions to deal energy plants through bidding route wherever with climate change. GAIL is on a path to work investment would fetch reasonable returns. with the best knowledge and expertise holders, GAIL intends to set up solar PV projects in order to by signing an Memorandum of Understanding reduce carbon footprints and contribute to clean (MoU) with the Principal Scientific Adviser (PSA) energy mechanism at National level. In line with to the Government of India. This collaboration above, GAIL is exploring various opportunities in will set stones to the journey ahead to establish solar with an objective to have a sizeable solar relevant impactful projects on topics, which portfolio. will include setting up Afforestation projects For organic growth in solar sector, GAIL is following the Miyawaki technique to enhance the participating through bidding in the forthcoming carbon sink, preserve biodiversity, mainstream Solar Tenders floated by various Government nature based solutions to deal with issues of

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Renewable Energy Project In GAIL is exploring various opportunities in Operation RE with an objective to have a sizeable RE portfolio. For organic growth in RE, GAIL is A. Solar Projects: exploring the opportunity of participation in 1. 5 MW Solar Project at Rajasthan: GAIL greenfield solar power tenders. In this regard, had set up a 5 MW ground mounted in 2019, GAIL executed Memorandum of Solar PV project at Jaisalmer, Rajasthan Understanding (MoU) with M/s Bharat Heavy under Phase-I, Batch-II of NSM and is Electricals Limited (BHEL) for development of successfully running. solar power projects. For inorganic growth, 2. Captive 5.76 MW Solar Project at Pata: various M&A opportunities in RE are being 5.76 MW Solar PV plant at rooftops of evaluated. LLDPE / HDPE warehouses had been set Site wise initiatives for renewable energy: up at GAIL Pata in 2017 and is successfully running. »» Installation of Rooftop Solar panel 190 KWp in Central warehouse at Vaghodia. A 3. Captive 1.8 MW Solar Project at Vijaipur: total of 2,20,482 units of electricity have Investment Approval has been obtained been generated through the renewable from the Competent Authority for setting energy source. up of 1.8 MW ground mounted Solar project at Vijaipur with a project cost of Rs »» Installation of Solar PV System at Aonla 11.69 cr. for captive consumption in 2019. Terminal is happening at full pace in this The Project is under implementation financial year along with Installation of Solar PV System at Jagdishpur Terminal. 4. Captive 2.64 MW Solar Project at Pata: Investment Approval has been obtained »» A 236 kWp Solar Power plant is expected from the Competent Authority for setting to be commissioned by end of 2021 at up of 2.64 MW roof top solar project for Gandhar. captive consumption at Pata in August, »» Successfully commissioned 40 KWp 2020 with a project cost of Rs.12.97 crores. Rooftop Solar Power System each at The Project is under implementation. GAIL Samakhiali and GAIL Kandla with an B. Wind Projects: investment of approx. Rs 33 lacs.

1. Captive 19.2 MW Wind Project set up in »» GAIL’s Mumbai region has also Gujarat and is successfully running commissioned Roof top solar power plants of combined capacity of approx. 2. 38.1 MW Wind Project set up in Karnataka 44 KWp at various pipeline installations in and is successfully running the region with an investment of approx. 3. 60.65 MW Wind project set up in Tamil Rs 16.5 Lacs. Nadu and is successfully running

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119 Energizing Growth Energizing Possibilities pollution and ultimately address the fight of Compressed Biogas is exactly similar to the climate change. In FY20-21, 6,000 trees planted commercially available natural gas in its under CSR activities. composition and energy potential. With calorific Alternative fuels value (~52,000 KJ/kg) and other properties similar to CNG, Compressed Biogas can be used Compressed biogas (CBG): as an alternative, renewable automotive fuel. To provide sustainable alternative towards Given the abundance of biomass in the country, affordable transportation as a developmental Compressed Biogas has the potential to replace effort that would benefit everyone; GAIL and its CNG in automotive, industrial and commercial CGD JVs, and GAIL Gas Limited and its JVs have uses in the coming years. The potential for invited expression of interest and issued letters Compressed Bio-Gas production from various of intent for Sustainable Alternative Towards sources in India is estimated at about 62 million Affordable Transportation (SATAT) Initiative of tonnes per annum. GoI. GAIL is part of SATAT’ (Sustainable Alternative Understanding the benefits of CNG, GoI Towards Affordable Transportation) initiative announced Sustainable Alternative Towards launched by the Ministry of Petroleum and Affordable Transportation (SATAT) scheme an Natural Gas to promote Compressed Biogas (CBG) initiative aimed at setting up of Compressed as an alternative, green transport fuel. Bio-Gas production plants and make it available Biogas is produced naturally through a process in the market for use in automotive fuels by of anaerobic decomposition from waste / bio- inviting Expression of Interest from potential mass sources like agriculture residue, cattle entrepreneurs. The initiative was launched in dung, sugarcane press mud, municipal solid October 2018 by the Ministry of Petroleum & waste, sewage treatment plant waste, etc. After Natural Gas in association with Public Sector purification, it is compressed and called CBG, Undertaking (PSU) Oil Marketing Companies which has pure methane content of over 95%. (OMC).

Supporting SATAT transformation As an attempt to support the MOEFCC waste feedstock for the production of biogas and SATAT vision of setting up 5000 CBG through anaerobic digestion. Food waste, for (Compressed Bio-gas) plants, GAIL has instance, due to their relatively high starch worked towards setting up this Carbon and protein contents and high biodegradable friendly technique of energy supply, GAIL’s nature, is a suitable organic source for Start-Up initiative ‘Pankh’ which was launched biomethanation. In this direction, GAIL in to build a strong eco-system for nurturing collaboration with CSIR-IICT, Hyderabad, innovation and the spirit of entrepreneurship is developing high rate bio- methanation has signed 5 investment agreements worth process for the generation of methane INR 15.30 crore with Start-Ups operating in enriched biogas (more than 90%) from food the area of Compressed Bio Gas (CBG) in FY waste. The main emphasis of the project is on 2020-2021. In the similar direction GAIL is also development of an anaerobic digester system exploring options for the use of bio organic for generation of enriched Methane.

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GAIL has taken the decision of venturing into CBG of reducing oil import and has fixed a target of business by setting up CBG production plants. 10% blending by 2022 and 20% by 2025. In line GAIL is setting up its first CBG plant of 5 TPD CBG with GoI’s vision, GAIL is exploring business production capacity in Ranchi and has signed opportunity in setting up ~ 500 KLPD 1G (first concession agreement for 22 years with Ranchi generation) grain-based Ethanol Plant for Ethanol Municipal Corporation for supply of Municipal Blended Petrol (EBP) Programme. Use of this E20 Solid Waste (MSW) and associated infrastructure (Ethanol – 80% and Petrol – 80%) fuel is expected for setting up CBG plant at Ranchi. This will enable to reduce carbon monoxide emission by 30-50%. provision and supply of Compressed Biogas (CBG) Hydrogen as an Alternative Fuel from the plants processing biomass/waste to In India, usage of Hydrogen as an alternative various Retail Outlets of CGD companies across fuel is a relatively new area for which companies India. from various domains are evaluating the business GAIL is also executing the CBG plants where we potential. GAIL is also exploring the possibilities are arranging the marketing agreement with to blending green Hydrogen with natural the manufacturer of the CBG, and these will gas in pipelines at pilot scale, which is a path be the private entrepreneurs, and our City Gas breaking step in CGD sector. In future, Hydrogen companies will be buying that natural gas from can provide a supplementary role to fossils, those entrepreneurs. GAIL will be implementing a renewables and batteries, in a transition towards synchronization scheme of this natural gas which carbon neutral economy. is produced from CBG with City Gas. So, we will R&D for Climate Change be mixing and synchronizing both the gases and The research and development team of GAIL supplying to the individual CDG companies. is working to investigate the combustion and Potential positive benefits of CBG emission phenomena of dual fuel (CNG & »» Stubble/Agro-residues can be utilized for CBG Diesel) light-duty high speed direct injection which can reduce stubble burning hence air Compression Ignition engine, and to minimize pollution NOx, Particulate Matter (PM) and reduce

CO2 emissions coupled with fuel efficiency »» Additional revenue source for farmers improvement, with IIT-Bombay. »» Boost to entrepreneurship, rural economy To take forward research efforts in the direction and employment of developing feasible solutions for bulk

»» Responsible waste management, reducing utilization of CO2, GAIL is developing novel and waste related emissions cost-effective catalyst for production of carbon dioxide-based poly carbonate diol polymers in »» Replacing fossil fuel in vehicles, reducing association with IISER, Tirupati. This project also direct GHG emissions aims to find an optimal condition to incorporate »» Reduction in import of natural gas and crude maximum of - 45 - 47 wt. % CO2 in the polymeric oil product under milder reaction conditions with »» Support to national commitments in minimal additional energy input and less by- achieving climate change goals product formation. Thus any success in the development of above versatile catalyst for the Ethanol Blended Petrol conversion of CO2 to Polycarbonate Polymer can

Government of India (GoI) has resolved to supply provide immense benefit and mitigation of CO2 Ethanol Blended Petrol (EBP) with the objective emissions. Another great innovation is being

121 Energizing Growth Energizing Possibilities performed at GAIL Pata Site with A pilot project digital and radio. This was followed by on-ground for direct fixation of CO2 using microalgae in a consumer engagement activities such as tie-ups raceway reactor is being undertaken to absorb with resident welfare associations, schools and the carbon from the atmosphere and combat media groups. climate change. »» # Hawabadlo Campaign is GAIL’s sustained Clean Energy for Clean Air advocacy campaign to create awareness As per World Health Organization (WHO) among netizens and the public to make report 2018, 11 of the 12 cities with the highest informed decisions and induce voluntary particulate pollution in the world are in India. behavior changes regarding our energy Natural gas is one of the cleanest fossil fuels and it needs towards cleaner options like Natural is an emerging fuel alternative. According to the Gas National Energy Technology Laboratory (NETL), »» Online campaigns #CleanBhiConvenientBhi, ‘Natural gas emits 50-60% less carbon dioxide #FuelingIndiasGrowth, #NewIndiaNewEnergy (CO ) when combusted in a new, efficient natural 2 were done on GAIL’s online properties gas power plant compared with emissions from a especially Twitter and Facebook typical new coal plant’. »» Testimonial Videos, where customers talked GAIL, as nation’s flagship organization to deliver about voluntarily shifting to Natural Gas and accessible and affordable natural gas to citizens the benefits thereof, were put on all GAIL’s pan-India, strives to enable behavioral change digital platforms through various initiatives. Hawa Badlo campaign is such an initiative that further our efforts in this A. #Hawabadlo Anthem regard. The pinnacle of the campaign was the Hawa Badlo #HawaBadlo Anthem sung by Javed Ali and Harshdeep Kaur. #HawaBadlo has today In 2016, GAIL launched digital advocacy campaign become an anthem for unifying people; #Hawabadlo to create awareness among netizens to come together to fight one of the most and the public to make informed decisions and dangerous enemies of our times – air induce voluntary behavior changes regarding pollution, motivating them to adopt natural their energy needs. With the #HawaBadlo gas and its variants, PNG and CNG, among initiative, GAIL has succeeded in building a mass other measures, to fuel sustainable lifestyles, movement towards a cleaner energy mix and and in the process, also become warriors to a better environment, which are in sync with fight climate change. the vision of Hon’ble Prime Minister of India for B. #HawabadleHassu increasing the share of Natural gas to 15% by 2030, in the energy basket. Under the overarching #HawaBadlo Campaign, the first of its kind web series #HawaBadlo was launched adopting creative is to be sponsored by any corporate, the storytelling formats in the form of digital media #HawaBadleHassu web series was aired on posts, teasers and videos. The content featured SonyLiv in June 2019. people from all the occupations; from Indian cinema celebrities to people at large, including The series heavily hinged on entertainment, school and college students. Short videos conspicuously conveying the messages that and clips were carefully planned for multiple the company stands for- crusade against air platforms and consumer touchpoints including pollution and environment conservation. An

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Hawa Badlo

Hawa Badlo (Change the Air) campaign by GAIL envisions driving behavioural changes in making our cities air pollution-free. The campaign has garnered a reach of over 100 million and enabled people to make a direct link between their energy consumption patterns and the impact on their health and the environment. The campaign aims to encourage people to voluntarily switch to more economic and environmentally friendly ‘natural gas’.

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Environmental Sci-Fi thriller, the series had at Rome, Italy. The film can be viewed on actors from mainstream Hindi cinema cast in youtube channel of GAIL. roles. The #Hawabadlo campaign has touched C. #Megha’sDivorce more than 100 million lives (digitally) as of now. It has enabled people to make a direct GAIL partnered with Interdependence, a link between the environment challenges global campaign *patronized* by United and their daily habits; understand the long- Nations and organized by Art for the World- term economic and health benefits of an NGO associated with United Nations switching to natural gas; and motivated them Department of Public Information (UNDPI), to voluntarily switch to the economic, socially Switzerland. Among the eleven short films viable and environmentally friendly natural compiled together for raising awareness gas. In the last 6 years about 300 media on environment and climate change, articles – across Print, TV, radio and digital India’s entry Megha’s Divorce – was made have been dedicated to it. The movement has specifically in the Indian context on Delhi’s Air brought the conversation on environment, Pollution, raising awareness on environment sustainability and climate change to the and climate change, both nationally and forefront. internationally. The world premiere screening of the Interdependence project was also The success of the campaign demonstrates taken as an opportunity to engage with how improving knowledge on the subject International stakeholders for showcasing and seeking voluntary participation can scale GAIL’s commitment towards environmental up citizens’ interest, influence and actions. sustainability. More than 35 present and The campaign provides a template for custom prospective International customers/partners replication by countries worldwide as one of were invited for world premier screening of the means for successful energy transition. “Interdependence” and networking dinner

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Pink Water Lily Location: Gandhar Health and Safety

At GAIL, we are highly committed to the health Corporate HSE Policy and safety of our workforce, stakeholders and the GAIL endeavors to generate value through public at large. We consider health and safety as sustainable development by placing commitment an integral part of our operations; thus, we always to occupational Health, Safety and Environment strive up to improve our safety performance with of its plants, pipelines including CGDs and utmost importance. personnel, and these beliefs are embedded The occupational health and safety of every within our core organizational values. individual at GAIL are of paramount importance GAIL is Committed to: and these attributes are embedded within our core organizational values. Chairman and » Be a leader in Safety, Occupational Health Managing Director endorses Health, Safety and and Environment Protection by adopting the Environment Policy of GAIL with a commitment latest technology and digitization. to deliver and promote the health and safety » Design, construct, operate and maintain agenda, while identifying and mitigating risks, and its facilities as per national/ international fi nding opportunities to improve the operations standards to ensure adequate safety of all in aspects of health and safety. The continual Stakeholders, Plants, Pipelines, Projects and improvement in our processes helps us to reduce related surroundings. risks to safety, health and the environment and to » Comply with applicable statutory rules and achieve the same, strong leadership is inevitable. regulations of the country where we operate. A monthly review of the safety performance » Optimize the HSE resources and provide is undertaken at the level of director. These structured trainings on HSE Management reviews are considered as inputs for further System including Behaviour Based Safety strategic planning and decisions. As a part of (BBS) and ensure eff ective emergency our commitment to continuous improvement, preparedness at all installations. we ensure 100% compliance with the legal and safety procedures. All health and safety aspects » Implement occupational hygiene measures are formally recognized by the trade unions and & regular medical surveillance and risk-based suppliers through formal agreements and terms monitoring to ensure good health & well- of contracts We provide in-depth job specifi c being of GAIL’s employees. training and demonstrative workshops to the » Make use of eff ective Waste Management employees and contractors and other industry System including e-waste. partners to re-emphasize safety as our top priority » And bio-medical waste as applicable for a while providing them with globally world-class clean & green environment. facilities.

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» Share HSE Policy and HSE performance with System in Petroleum Industry”. It is an all interested Stakeholders. integrated system for managing workplace We encourage all employees including contract safety covering all aspects of plant and workmen to adopt safe working habits and facilities to minimize the losses with behaviour to create a positive HSE culture within respect to personnel, equipment, material the organization. They have the responsibility and environment. Accordingly, the HSE and authority to notify and stop any unsafe work/ Management System of GAIL has incorporated act, as deemed fi t. 18 elements, which are applicable to all HSE Management System activities of GAIL. The HSE document provides a set of requirements against each element Health, Safety and Environmental Management and guidelines for implementation across the System (HSEMS) is an integral aspect of our HSE GAIL installations. Policy. It is the guiding principles for managing HSE-related risks across all our operational » For constant monitoring and ensuring locations. Our HSEMS covers areas including implementation of HSE Management system, Leadership & Commitment, Operational & it is necessary that the performance of sites Maintenance Procedures, Work Permit Systems, w.r.t implementation of HSE Management Third party services, Training, Incident Reporting, System and Safety compliances is measured Investigation and Analysis, Occupational Health, periodically. To measure HSE performances Environmental Management etc. We continually a “HSE Score” has been formulated. HSE work towards the eff ective implementation of our Score System is further strengthened by HSE Management System to improve operational incorporating management governance safety standards and performance. Our on compliance of OISD/PNGRB Audits. Management is committed to provide adequate resources and deploying skilled manpower to Incident Reporting System (IRS) and abide by our HSE Policy and HSEMS requirements. accreditation of Emergency Response and Disaster Management Plans (ERDMPs) for Site level Safety Committees comprises of timely submission to OISD/Other Statutory both management and non-management Authorities etc. representatives, lead overall responsibility of safety at our operational sites. Site level Safety » This system helps in eff ectively monitoring Committees review matter pertaining to health the implementation of elements like and safety performance of respective sites at Leadership & Commitment, Employees least quarterly and decides the corrective and Participations, Work Permit System, Risk preventive actions. GAIL has continually excelled Analysis, Maintenance & Inspection of Critical in health and safety performance as a result of Safety Appliances/Equipment, Occupational robust HSE framework. To develop an effi cient HSE Health, Emergency Preparedness, Compliance framework spanning across our operational sites, Audit etc. which gets refl ected in the form of we carefully identify focus areas that hold the increased productivity and morale of all those potential for performance improvement and lay associated with the business activities. These out interventions for continuous improvement. benefi ts refl ect a reduction in workplace Our detailed approach to HSE Planning and accidents, injuries and illness. identifying priority areas for action is showcased below: HSE Score Implementation in GAIL » HSE Management System was formulated » “Safety Day” is observed on the 10th of every in GAIL, in-line with Oil Industry Safety month at each O&M site of GAIL. On this day, Directorate Standard on “Safety Management the Offi cers In-Charge (OIC)/ Work In-Charge

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(WIC) of all installations review all the safety- during the year, which is summarized below. related aspects of their installations under Investigation of all incidents are conducted by their jurisdiction. a multi-disciplinary committee to find out the »» All applicable GAIL sites submit their Annual root causes and mitigation actions, to prevent HSE Plan and Annual Training Calendar duly reoccurrence.

approved by site OIC/ WIC. Based on the Year Natural LPG Gas Processing CGDs Total annual plan, Fire & Safety In-Charge and O&M Gas Pipelines Plants/ In-Charges of respective sites shall perform. Pipelines Petrochemicals 2020-21 6 1 4 13 24 »» Entry of Site HSE Performance by Nominated Executive preferably by HOD (Fire & Safety) in Transport Safety GAIL Intranet HSE Score Entry System. We are involved in business of transportation of »» Approval of Site HSE Performance Report by Natural Gas and LPG through our Cross Country Respective OIC/WIC. Pipeline System, which is considered as one of »» Computation of HSE Score by Corporate the Safest Mode of Transportation. In addition HSE Department is being done on monthly with above, transportation of hydrocarbons like basis. Based on the Score earned by Sites in LPG, Propane, Pentane, Propylene etc. also being accordance with the prescribed guidelines, carried out by Rail/Road mode by Oil Marketing monthly. HSE Score achieved by site are Companies like IOCL, BPCL , HPCL and GAIL. discussed in Monthly Safety Day at every Transport safety assessment enables us to identify sites and necessary action are taken for the possible hazards, risks, injury or harm with its improvement of the same. categorization of severity that can potentially »» The exceptions report on Monthly Safety Day arise during the transportation and distribution Observations along with HSE Performance is of gas. Standard operating procedures and reviewed at the level of Director. processes are followed to eliminate and reduce the risk to as low a level as reasonably practicable »» Sites having high HSE Score achieved are also and for further continual improvement. physically verified for their HSE Performances by Corporate HSE official at sites. Additionally, we also provide support/assistance required for the recovery/cover of inflammable Health, Safety and Environment liquid hydrocarbon products due to in-transit Performance accidents in the vicinity of GAIL’s supply plant(s) The Health, Safety and Environmental which is always rendered by GAILs fire and safety Management Performance of GAIL’s Operation & department. Maintenance Installations is measured through Transportation Safety Initiatives the “HSE Score”, which is evaluated every Undertaken at GAIL Sites month, considering the key elements of the HSE Management System. GAIL achieved an “HSE Cross Country Pipelines Score” of 96.98 average achieved for the FY 2020- »» Risk Assessment of Cross Country Pipelines 21 against the internal target of 94.50 in the FY are being carried out to determine the 2020-21. Individual Risk Per Annum (IRPA) and NIL’ Major Incident Reported at GAIL Installations mitigation measures taken to minimize risk as during the year 2020-21, in accordance with low as reasonably practicable. Incident Categorization of PNGRB, OISD & MOPNG. »» Public awareness through FM Radio Jingle However, 24 Nos. of Minor Incidents reported started by GAIL to bring awareness about the

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gas pipelines and safety of pipeline. Safety Road Transportation awareness campaign for nearby inhabitants »» Trucks are allowed inside the plant for loading along the pipelines on a regular basis for only after proper documentation and visual propagating information regarding pipeline inspection. The trucks are inspected by CISF location, informing them about Do’s & Don’ts before entering the plants. in the ROU area, potential consequences »» Online SAP based ‘Dangerous Goods of damage, company contact information Authorization’ is place to ensure healthiness for reporting leakage and informing before of hydrocarbon tankers by reviewing the carrying out any excavation etc. safety aspects, prior to loading. »» Guidelines for Public awareness issued for »» Physical checking of hydrocarbon tankers by Incentives to Farmers / Land owners and GAIL regular Fire & Safety Personnel are carried out. Sahayogi for the protection of Markers & Test »» Training is provided to the workers involved Stations are being finalized. in the loading of hydrocarbon products »» Nukkad Natak on Pipeline Safety is being periodically to make them aware about the organized at villages passing by Cross hazards associated with operation and its Country Pipelines. mitigation measures. »» Safety Pamphlets on do’s and don’ts are being »» Road Safety/Personal Hygiene training distributed among the villages to make them provided to LHC tanker and truck driver on a aware on pipeline hazards and action in case regular interval of any emergency. »» Transport Emergency Card (TREM) has been issued to all Hydrocarbon Drivers to provide »» In order to have faster communication during them information of Emergency Management any emergency, All India Toll-Free short key and Communication. no.15101 has been started apart from existing 1800118430. SAP-based Environment, Health and »» National Gas Management System at Noida Safety Management (EHSM) has been declared as Nodal Centre for SAP-based EHSM is in place having Emergency Management. functionalities i.e. Incident Management System (Safety Observation, Never Miss and Incident/ »» Daily foot patrolling in populated/ urban Accident), Risk Assessment and Job Safety centers and monthly foot patrolling of Lines Analysis, Management of Change and Safety at other locations are carried out to identify Audit/Activity Monitoring has been implemented encroachments / suspicious activities, if any. across the GAIL. »» GPS based online tracking system for Impacts and benefits of the EHSM SAP foot patrolling implemented across the include the following: organization. »» Establishing uniform procedures across GAIL »» Integrity Management System is in place for the incident management, job safety and followed for entire Cross Country analysis, risk assessment and management of Pipelines in accordance with PNGRB change (Integrity Management System for Natural »» Improving clarity and accountability Gas Pipelines) Regulations 2012 and duly by introducing workflow transformed approved by PNGRB. compliance approach

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»» Generation of incident reports for institutions/ meets on a quarterly basis to monitor the statutory bodies like PNGRB, OISD, PESO, occupational health program in and the Factory Directorate and GAIL specific through effectiveness is evaluated based on the outcome a single portal of the Occupational Health Audit undertaken »» Strengthening the Work Permit System at through in-house multi-disciplinary teams. GAIL by linking Job Safety Analysis The guidelines on occupational health have »» Increasing the efficiency of monitoring been formulated to give thrust on occupational and analytical reporting by introducing a health. The guidelines thoroughly include various user-friendly dashboard to OICs / WICs / aspects including requirements of occupational coordinators health infrastructure at sites, occupational health Safety Audits committees, medical surveillance programs, documentation and analysis of health data and Safety Audits are periodically conducted to ensure bio-medical waste management, etc. Medical the implementation of the HSE Management surveillance is carried out periodically to assess System Guidelines and Emergency Preparedness the health of employees. Permanent employees and its performance. These audits are performed are assessed annually for their well-being by by PNGRB approved Third Party Inspection conducting occupational health check-ups. Agencies , other external agencies and our Awareness programs are also periodically experienced in-house team, in accordance with organized with demonstrations to ensure the applicable National Codes and Standards. improvement in lifestyle-related habits. The Suggestions and recommendations given during health scores of each employee are calculated and various audits are being compiled within a recorded based on the predefined parameters and specific time-bound manner. further those are made aware and motivated for Internal Safety Audit (Proactive Audit & Internal improving the health score. Every site calculates Audit-CO) is being conducted by an in-house their cumulative health index based on the health team to identify the improvement areas with score of individual employees for the analysis and respect to PNGRB and other regulations, OISD improvement of employees’ wellbeing. Standards, Management Governance etc. Besides, In the current scenario of COVID-19 pandemic, a specific Internal Audit on Occupational Health awareness sessions and multiple motivational and Environment Management is also being programs were conducted with proper protocols conducted periodically to determine specific for employees and their family members at GAIL potential improvements considering various different sites in FY 20-21 which mainly includes health and safety standards. related to COVID-19. Initiatives covered subjects Employee Safety: Occupational such as general awareness and preventive Health, Training, and Emergency measures of COVID-19, psychological effects and Preparedness disturbance due to pandemic, mental wellbeing, etc. Also, medical surveillance is carried out to GAIL has implemented Health and Safety assess the health of employees for this year. Practices for employees including contract Medical facilities and service provided at GAIL workers that are primarily driven by Health, Safety sites to ensure the emergencies in the pandemic and Environment Management System. situations. Occupational Health Occupational Health and Safety at GAIL The Corporate Occupational Health Committee Installations i.e Petrochemicals, Gas Processing

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Plants, Natural Gas Compressor Stations and »» ‘Behaviour Based Safety Advance’ has been associated pipelines, LPG Pumping Station and implemented to reinforce positive behavior associated pipelines and CGDs are primarily of employees including contract workers. driven through Occupier and Factor »» Online Reporting System for Safety Management. Site specific HSE Policy is in Observation has been established to provide place in accordance with Corporate HSE Policy. platform for employees to report Unsafe Act/ Some of key Occupational and Health Practices Condition for necessary and time bound undertaken for permanent employees are as action. follows »» Medical Surveillance is carried out to assess »» Safety Committee Meetings chaired by the health of employees every year. Occupier/Factory Manager are organized »» Case studies on Worldwide Industrial once in three months to discuss Occupational Incidents (occurred in the past) are Health and Safety Issues of employees circulated to employees every Month to GAIL including contract workers. employees, and Key Learning from case »» Work Permit System is in place to carry out studies are being discussed at GAIL non-routine jobs in safe manner. Job Safety Installation during Monthly safety Day Analysis of all non-routine critical activities meeting on every 10th day of the month. are carried out ensure safety to employees. »» Structured HSE Training System is in place. »» Standard Operating Procedures have been Well-equipped training grounds have been developed for all routine works and it is developed for live demonstration of various being adhere to. System is in place to ensure scenarios expected to arise within the compliance of following Standard Operating complex for training of employees. Procedures. »» Awareness sessions were held at various »» Illumination, Noise and Toxic releases installation for GAIL Employees for the monitoring are done periodically to provide prevention of spread of COVID-19 as per CO- safe place to work. HR Guidelines. »» Material Safety Data Sheet (MSDS) of »» Animated Learning case study videos on all chemicals handled at various GAIL various incidents occurred in GAIL has been installation has been prepared as per PNGRB prepared by corporate HSE and it has been (Codes of Practices for Emergency Response kept in HSE Webpage in GAILNet which is and Disaster Management Plan (ERDMP) easily accessible for all employees. Amendment Regulations, 2020 and displayed »» Short film on HSE Management system has at prominent locations to understand the been prepared to enhance awareness among hazards and their mitigation methodologies. GAIL Employees about HSE Management »» Hazard Control Hierarchy at workplace system implemented in GAIL. adopted in accordance with Codes and Contractor Safety Standards. Mandatory Personal Protective Contractors are bound with the health and Equipment is being issued to all employees. safety policies of GAIL. Every contractor needs Personal Protective Equipment Matrix has to follow health and safety practices, rules and been displayed at workplace. Sufficient guidelines provided by GAIL. All contractor’s. are number of identified Personal Protective required to submit a health check-up certificate Equipment is made available and its use is of a new employee at the time of joining work. ensured.

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Under Occupational health check-up of contract 7. Counselling and advice on dietary employees including canteen workers is carried management, weight management, regular out periodically. First aid centers are providing exercise, stress management & follow up for facilities and Outpatient department (OPD) optimal health. treatment to contract employees. Sensitization 8. Assessment of work-related illness and on health aspects in daily activities of life is injuries for workplace safety. executed for contract employees by conducting 9. Industrial hygiene survey every 5 years by lectures on important health topics. 3rd party RLI/CLI in the plant as per OISD The structured HSE training matrix includes guidelines. GAIL employees as well as contract workers. The 10. Periodic workplace environment monitoring internal safety training system is in place at O&M and industrial hygiene survey by measuring installations, where training chapters including noise, illumination and indoor air quality. behaviour-based safety, etc. are imparted to 11. Compliance of all legal statutory requirements employees and contract workers to upgrade their like Bio-medical waste disposal. skills, knowledge and competence, to perform COVID-19 related health initiatives: their HSE functions effectively and develop 1. COVID-19 health risk assessment to all an effective safety culture. Safety training is contract employees and vendors coming regularly provided to the contract employees as from outside due to ongoing COVID-19 per the training calendar utilizing various safety pandemic. training modules. Tool box talk is conducted for 2. Awareness on PPE, Social distancing and contract workers before the start of any activity frequent hand washing to all contract workers of work. Contract employees are covered under and vendors. the behaviour-based safety initiative of GAIL. We 3. Maintaining the highest degree of hygiene at ensure that 100% of contract workers participated OHC with all precautionary safety measures in health and safety awareness workshops and for prevention of COVID-19. training and it resulted the same during this 4. Maintaining Contact tracing, Testings and reporting year. Quarantine. Health-related Initiatives at GAIL Pata 5. Developing Isolation facility in JP Kunj and 1. Pre-employment and bi-annual health Dhanwantri Hospital and Apollo Hospital kit checkup of all contract employees as per U.P arrangement. Factory Act. 6. Introduction of e-prescription and 2. Health education and promotion by telemedicine. conducting various health awareness 7. Mass fogging and sanitization and Thermal programs like: scanning at entry points. 3. Prevention of ergonomic hazards in desktop 8. Distribution of Masks, sanitizers and PPE kits. workers. 9. In-house preparation of Sanitizers and No- 4. Role of good sanitization & personal hygiene Touch Sanitizer Dispenser. in control of infectious disease like today’s 10. Mass sampling camps with District pandemic scenario. administration coordination. 5. Prevention of various occupational health 11. Visitors permitted after RAT, RT-PCR test & hazards in petrochemical plants. health risk assessment. 6. Prevention of lifestyle disease and its 12. Considering Covid-19 Safety, Thermal management. Scanning is done by all the employees on a

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daily basis. Apart from Temperature Scanning workers and employees to spread safety every day, employees may check their Oxygen awareness. Do’s & Don’t have been displayed level by a Pulse Oximeter, which has been at various locations for contract personnel. kept in the OHC/ HR department. »» Contract personnel participation is being 13. Sanitization of offices and vehicles has ensured in reporting of incidents / unsafe act also been done regularly, considering the / unsafe conditions in SAP. pandemic situations of Covid-19 at the »» Initiative taken to motivate workers to work community level. safely during shutdown where large numbers 14. Allowing work from home to the employees of contract workers were involved through a reward scheme. Reward given to workers in order to maintain social distancing at the who perform their job with utmost safety. workplace. »» Mandatory firefighting training is imparted 15. To avoid crowding office time is made flexible. after each job specific training module in the 16. Introduction for quarantine leave and special F & S department. casual leave for covid-19 »» Scheme for Best safe worker started at 17. Treatment of the period away from the GAIL Pata for contract workers to develop workplace of posting as work -from home safety culture through encouragement and during the nationwide lockdown. motivation. 18. Tie-up with leading hospitals for providing »» Introduction of Training kiosk system at GAIL treatment to isolation cases. Pata for imparting initial F&S training to Health and Safety Practices and Initiatives contract workers. being undertaken at GAIL, Pata for Contract »» Safety awareness programs (incident / Employees and Suppliers accident sharing, unsafe Act / condition) are »» It is being ensured that skill and qualified being shared to contract personnel through contract personnel are being engaged as per pictorials / visual display. Initiatives are also being taken to inculcate safety through the job requirement. Behaviour Based Safety. »» It is being ensured that all the contract »» Behaviour Based Safety system has been personnel undergo occupational health introduced for all the contract employees to check-up once in a six month as per Factory identify the safe behaviour, at risk behaviour Act. and on the spot correction. »» Initial fire & safety awareness training is being »» To motivate contract employees and given to all the contract personnel. Thereafter contractors, they are encouraged to job specific training is also being given to the participate in various competitions like safety personnel. quiz, safety slogan etc. and suitably rewarded »» Toolbox meeting / talk is a mandatory also. requirement for carrying out any job inside »» Token reward given for reporting of near the plant on a daily basis. miss to each employee as part of employee »» Mandatory PPEs & job specific PPEs are being engagement initiative. Also, three Best near ensured for all contract personnel. misses of the year are rewarded in safety »» All the work is being carried out through the week. work permit system. »» Basic fire and safety training given to LPG »» Pamphlets of Do’s and Don’ts inside the plant tanker drivers to spread awareness about have been especially prepared for contract safety during transportation and firefighting.

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»» Visitors are given initial fire and safety 15. Compressed air must not be used for blowing instruction/awareness though Visitors’ Safety dust out of clothing. film before entry into the plant. 16. Never look directly into the ace produced General Safety Regulations while welding without proper eye protection. 1. Smoking is not allowed inside the plant. 17. Sufficient distance shall be maintained from 2. Contract as well as GAIL employees are not suspended loads at all times. allowed to enter into the plant under the 18. Firefighting equipment shall be kept free of influence of alcohol. obstruction as these are required to be used 3. Polyester (Terene / terylene) or nylon or any in emergency. other synthetic fiber clothing shall not be 19. If any gas leak occurs, information shall be worn while on duty. There are chances of given to the supervisor and Fire Station. It is static charge in these clothing. Only Cotton to be ensured that all sources of ignition are dangri shall be used while working inside the kept away from the contaminated area. plant. 20. In case of flammable/ toxic gas leak, wind 4. It is mandatory to follow traffic rules inside direction shall be observed with the help of the plant and drive below 20 km/Hour Speed windsocks installed at various locations inside limit. It is mandatory to wear Safety helmet the plant and evacuate the area by following while driving a two-wheeler. the opposite direction of wind. 5. Necessary permit to work is to be obtained 21. Operators must always stand on the before starting any job. downwind side while taking samples or draining lines or equipment. 6. When any dangerous /unsafe condition is observed it should be immediately reported 22. It is strictly prohibited to enter any vessel without obtaining a valid permit to work to the supervisor and F/S Department. inside the vessel/ Confined space permit. 7. Use of Personal Protective Equipment 23. When a person is working in any vessel, one according to job requirement is mandatory person must be stationed at the opening of during execution of job. the vessel as a watcher/buddy. 8. Employees should be careful to clean the 24. Vehicles of all types must be equipped with job areas as soon as the job is completed. a good exhaust and muffler systems before Good housekeeping will eliminate many entering the plant area. unnecessary hazards, causing accidents. 25. Protective valve caps must always be placed 9. Walkways should be used instead of shortcuts. on all gas cylinders when not in use (Oxygen, 10. All stairways, platforms and walkways must LPG etc.) Gas cylinders should never be be kept clean at all times. dropped, especially from trucks or platforms. 11. Making shift arrangements of any kind are Always use a special carrier for carrying the strictly prohibited. gas cylinders. 12. Walking on pipelines is prohibited. 26. All bolts, couplings and moving parts of a 13. It is prohibited to work without authority or S. machine must be securely guarded at all W. permit. times (as covered under Factory Act.) 27. It is strictly prohibited to use gasoline or any 14. It is mandatory to prepare a close fire booth other highly inflammable liquids or corrosive with a good quality fire blanket to carry out chemicals such as caustic soda or acid for any hot job inside the plant.

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cleaning purposes. »» Conducting Off-site and On-site mock drill to 28. For maintenance work inside vessels or tanks check emergency preparedness and response which are gas free, low voltage lamps not to the situation. exceeding 24 volts must be used. »» Surprise checking and SOP compliance to 29. All storage containers such as tanks, drums ensure safety during all works. etc. containing corrosive chemicals must be »» Augmentation of fire water network and clearly marked indicating the nature of the a new fire water pump house to maintain content. resources for handling major fires inside the 30. It is mandatory to use a double lanyard safety plant. harness while working at height. »» Rally awareness programs conducted in 31. Even while working with a valid permit to nearby places for spreading awareness work if any Hazardous condition is noticed, regarding gas pipelines and hydrocarbons. the job shall be immediately stopped, and »» Residual life assessment (RLA) and Fitness for information shall be given to the control Service (FFS) and LRUT being conducted at room/supervisor. Vaghodia for asset integrity assessment. 32. Wearing a safety helmet is a must for all the »» Periodic overhaul and inspection of engines, employees working in the battery limit area, storages being done. in shut down and in the areas declared as hard hat area. »» HRSG Boiler system integrity assessment carried out. Health and safety related Initiatives at GAIL Vaghodia (OG13) »» Installation of lightning isolation transformer to enhance safety of GREP. GAIL Vaghodia has a well laid out HSE policy in line with the corporate HSE guidelines. »» Replacement of Mercaptan dosing system and associated pipings with SS material to »» SAFETY KIOSK installed at plant CISF gate improve integrity. for awareness of all persons entering plant premises. Health and safety related Initiatives »» Ensuring PPEs and safety training with live at GAIL Dibiyapur and GPU Gandhar demonstration for all. (OG13) »» Various events related to health and safety »» Air quality monitoring report, Hazardous like Fire Service Week, National Safety week, Wastes authorization details are displayed at Oil & Gas conservation Month are celebrated. Compressor Station main gate. These events are being well organized, and »» Occupational Health Check-up is conducted competitions held to spread awareness to all. for contract employees who are working in »» Toolbox talks given before commencing any plant areas. work. »» Regular fire & safety training is imparted to »» Medical records of all employees, contract and bring awareness among contract employees. cooperative labours are being maintained »» Personal Protective Equipment are ensured through a Medical officer in a well-equipped with all contract employees who are working Occupational Health Centre. in the plant area. »» Safety training being imparted to all as per »» Mechanism has been established for the HSE safety calendar and also through GTI timely reporting of near Miss and safety nominated training programmes. observations.

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»» Behavior Based Safety training has been and Emergency Response and Disaster imparted to contract employees. Management Plan Regulations. »» Potable /RO water, toilet, canteen facilities are Awards and Appreciations provided to Contract Employees. GAIL has won the following safety awards in 2020- »» Workmen Compensation Policy is taken for 21 from the National Safety Council, India and the Contract Employees. British Safety Council for excellent occupational »» Plant safety related information is shared/ safety and health (OSH) performance and awareness is imparted to the visitors at the commitment to reduce hazards, workplace entrance gate itself. incidents and injuries, implementations of the »» Medical test of contract employees is carried best OSH practices and encourage continual out before employing or assigning any job at improvements. our Occupational Health Centre. »» “International Safety Award 2021” with HSE Trainings and initiatives Merit from British Safety Council, UK for FY 20-21 Petrochemicals Pata, GPU Vaghodia and GPU Gandhar. »» Nine (09) Nos. of Behaviour Based Safety »» “Safety Innovation Award 2020” by The with COVID-19 Webinar have been Institution of Engineers (India) for GPU conducted, in association with GAIL Vijaipur for implementing Innovative Safety Training Institute. Employees participated Management Systems in a drive for reinforcing Positive Behaviour enthusiastically. »» Safety Awards 2020 from National Safety Council, India for various installations for »» EHSM SAP Familiarization Programs were displaying exemplary Occupational Safety & conducted on Incident Management System, Health (OSH) performance, commitment to Management of Change, Risk Assessment reduce workplace injuries, implementations & Safety Audit organized through Team of the best OSH practices and encourage Meeting for Operation, Maintenance and Fire continual improvements: - Safety personnel across the GAIL. • SURAKSHA PURASKAR (BRONZE TROPHY) »» GAIL’s O&M and HSE Executives participated for GPU, Gandhar under Category Group in various Sub Committee Meetings of A (Petroleum Refineries, Gas Processing PNGRB Regulations on Emergency Response Units and Petro-Chemical Complexes). and Disaster Management Plan, Retail Outlet Dispensing, Integrity Management • PRASHANSA PATRA for GPU, Vijaipur System for Natural Gas Pipelines & City Gas under Category Group A (Petroleum Distribution Networks, Gas Processing Plants Refineries, Gas Processing Units and and Refineries etc. as part of development/ Petro-Chemical Complexes). amendment of Technical Codes & Standards. • PRASHANSA PATRA for GPU, Vaghodia »» 6th Capability Building Workshop organized under Category Group A (Petroleum by PNGRB on 28th January 2020. During the Refineries, Gas Processing Units and Workshop, CO-O&M/HSE made presentations Petro-Chemical Complexes). on amendments in Integrity Management System Regulations for Natural Gas Pipelines

136 Our People 12

Butterfly Location: Gandhar Our People

At GAIL, we believe that a committed and and maintain an enabling environment technically sound workforce forms the bedrock for learning, innovation and sharing of of any successful organization. At the core of knowledge our success lies a hardworking pool of dedicated » Retain, nurture and develop employees and employees and associates. Employees play a plan for succession in critical roles. Respect signifi cant role in strengthening our competitive human rights in all operations edge and help us in growing a strong and versatile business. It is our constant endeavor to attract » Maintain diversity, access variety of human and retain the best talent through comprehensive talent and eliminate discrimination. Ensure training and development opportunities and the health and safety of all employees good long-term career prospects. We seek to » Provide fair remuneration for employees enhance professional development of high and business partners and adopt fair labor potential and managerial staff through our standards, including avoidance of forced or systematic career management. This enables us child labor to fi ll the key positions at all our locations with qualifi ed specialists. Going beyond compliance: At GAIL, we have taken several progressive Human Capital management at GAIL is geared HR initiatives including proactive review of to enable our employees to realize their full HR policies on continuous basis to align the potential while contributing to the company to Corporate HR Strategy with the Organizational generate value. Our Human capital incorporates Strategy in Company’s endeavor to meet the the health, knowledge, skills, intellectual outputs, evolving business requirements and to maintain motivation and capacity for relationships of the competitive advantage. GAIL’s policy broadly individual. In an organizational context, it includes covers Human Resource Acquisition (General the elements needed for people to engage in terms and Conditions of Service, Recruitment productive work and the creation of wealth, Policy and Procedure etc.), Employee thereby achieving a better quality of life. We are Compensation (Pay Scales, DA, Transfer Benefi ts dedicated to enable a culture that encourages etc.), Employee Benefi ts (Leave Rules, Medical our people to advocate and champion our Attendance, House Building Advance Rules etc.), vision. We put our best foot forward in providing Motivation and Development (Performance equal opportunities to everyone. We invest in Management System, Incentive for acquiring our employee’s career development, learning Higher Education etc.), General (Grievance and promotions and reward their hard work Redressal Procedure, CDA Rules), Other Schemes throughout the year. We are committed to: (Sports Promotion Policy, Whistle Blower Policy, » Provide employees with training, etc.). development and life-long learning

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Eff ective policies to tackle the (ii) Review of several policy provisions related pandemic to leave, claims procedures, travel, etc. During the year, review of various HR Policies (iii) Special dispensation in the form of on Employee Compensation, Welfare, extra leave and issuance of appreciation Social Security and General Terms and letters to the employees, who performed Condition of Service was undertaken. Being continuous duty at plants/installations an unprecedented year amid challenges (iv) Facilitating the employees in procuring on account of COVID-19 Pandemic, several sanitizers, masks, face shields and preventive measures including but not preventive medical equipment, etc. was limited to are undertaken: also undertaken during the fi nancial (i) Allowing Work From Home (WFH) year for ensuring safety, well-being, and arrangement at various Work Centers/ business continuity of GAIL. Offi ces in order to maintain social distancing protocols at the workplace

GAIL introduces many employee benefi ts that go Diversity & Inclusion (D&I) has been on the radar above and beyond compliance requirements like of GAIL for a few years now and in the recent GAIL Employees, e.g., Children Higher Education months, the impetus has grown signifi cantly to Advance Scheme, GAIL Medical Attendance Rules, work on various initiatives in this space across Relief Measures for dependent family members all its sites. A diverse workforce is an essential of deceased employees. driver to deliver better results. Our transparent Talent Acquisition and sound recruitment policies empower us to hire candidates from diverse backgrounds so As part of our human resources (HR) planning, that we provide equal opportunities to everyone on a yearly basis, we assess and determine skill regardless of their gender, caste or their physical sets needed with regard to our corporate and abilities. We follow the principle of diversity and locational strategies. We then align our young inclusion during our recruitment process and all talent, training programs and hiring plans candidates are assessed objectively during the accordingly. Providing a favorable environment hiring process. To have a more multi-cultural and for our workforce to realize their full potential inclusive workforce, we invest time and eff ort to and grow in their career paths is of paramount scout talent from the local communities, where importance for us. In this regard, GAIL hiring we operate. and the recruiting team plays an integral part Recruitment policy as approved by GAIL Board is in implementing the industry best practices continuously updated for keeping it in sync with for workforce management. We aim to build a the changing times. Recruitments of executives cohort of development-oriented, productive and are primarily carried out at the entry-level, i.e., at motivated employees, who are willing to grow the level of Executive Trainee and Sr. Offi cer/Sr. with us together. Opportunities for career growth Engineer level as we believe in providing ample are based purely on individual excellence. For career growth opportunities to our employees. eff ective management of the workforce, we focus Recruitment of executives at entry-level is carried our eff orts in the following key areas:

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139 Energizing Growth Energizing Possibilities out through both the campus selection process The Minimum Wages Act, 1948. Actual payment and open recruitment exercise. Recruitment is much higher than the minimum wages process through various modes viz. Open requirement and it varies from state to state. GAIL recruitment, GATE, Campus for executives and demonstrates its commitments towards human Non-Executives completed/under process. We rights and labor practices including the provision give equal preference to candidates apply from of the minimum wage by regular interaction with various states in India. employee collectives, coordination with labor A total of 156 new employees (including authorities, settlement of industrial disputes, CVO) joined GAIL during the FY 2020-21. Total recording and analysis of work center level issues manpower of the Company as on 31 March 2021 and long-term settlement with Unions. Other stood at 4,705 (including Whole-time Directors & provisions related to employee remuneration and CVO), out of which 4,401 were male and 304 were benefits are as follows: female employees. Out of the total employees, »» The Performance Related Payment (PRP) 16% of its employees belong to the Scheduled Incentive Scheme is one such that is in line Caste (SCs) category, 7% to the Scheduled Tribes with DPE guidelines and ranges from 40- (STs) category, 23% to the Other Backward Castes 200% of basic pay of an executive during a (OBCs) category, 8% to the Minorities and 2.1% to financial year. the Persons with Disabilities (PWDs) category. »» PF, gratuity, pension and PRMS - As per the Our workforce also includes a total of 12,997 DPE guidelines, O.M. No. W-02/0028/2017- male and 382 female contractual workers DPE (WC)-GL-XIII/17 dated 3 September working across various operational sites. There 2017, a ceiling of 30% of the basic and DA are 1,878 male and four female security staff has been put towards contribution to these employed across our units. During this year, superannuation benefits. the total number of Apprentice in GAIL reached »» Most of our practices and initiatives are 545, in which 444 are male and 101 are female aimed at providing our workforce with a apprentices. Significant portion of temporary workplace conducive to productivity. We workers are involved in the non-core activities of also provide two-year childcare paid leave to the organisation such as housekeeping, security, female employees. Additionally, we provide etc. incentives to our employees for attaining To build and strong motivating environment higher qualification to improve their expertise and to create effort towards ethical workforce and efficiency in their field of work. management, along with suitable compensation, »» We have also leveraged IT to a great extent for GAIL provides employee benefits. We also improving workforce management strategies. contribute to Superannuation Benefit Fund All the information related to the workforce Trust and Provident Fund Trust apart from is monitored and captured through SAP ERP the aforementioned perquisites. This practice system and is systematically analyzed to is in complete compliance with the Equal improve our workforce strategies. Remuneration Act, 1976 and there is no discrimination in wages based on gender. Details of employee benefits have been provided in page 169 of annual report 2020-21. The organization’s pension benefits cover 100% of the employees at GAIL and fullfil all the Employee Engagement applicable requirements. GAIL ensures that all the Employee engagement is a prerequisite for us to facilities located in different states across India achieve our goal of industry leadership and long- comply to minimum wage requirements as per term profitable and sustainable growth. The key

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140 GAIL Sustainability Report 2020-21 to creating a vibrant and sustainable company is routine to maintain good health. Further, we to find ways to get all the employees—from top arrange for social gatherings on special occasions executives to assembly line workers—personally for all the employees by maintaining social engaged in day-to-day corporate sustainability distance. efforts. To keep the spirit going, we host celebrations, At GAIL, employee engagement initiates at rejoice festivals and occasions as a family. During the beginning of the employee lifecycle, from this reporting year, we have celebrated GAIL the recruitment process, continuing through Foundation Day, Indian festivals, Republic Day, onboarding, learning and career planning till etc. Apart from that, various competitions in the exit from the organization. To make our vigilance awareness week observation, hindi workforce’s experience and journey better, all fortnight celebration, world environment day GAIL facilities are equipped with sports, gyms celebration, fire week, etc. were also organized. and other recreational facilities. We promote an Capability Building active lifestyle through sports. Hence, we have introduced the Sports Promotion Policy for our We believe that capability building and enhancing employees. Some of the key initiatives taken for competency of employees is the key to successful employee engagement at GAIL sites are: execution of GAIL’s strategic plans. In GAIL, we have established processes for effective G Konduru: Badminton and volleyball court capacity building of the existing resource base facility have been provided for recreation for GAIL and its consequent development. The capacity and contract employees. building of our employees is primarily aimed at Samakhiali: Motivation talks, arrangement of their holistic development. We encourage our Yoga & Morning walk, cricket match on holidays. workforce to improve their leadership potentials Vaghodia : Employees are encouraged to take- and technical skills. This is enabled by providing up “Delta” projects like reducing BMI, regular our workforce with a wide range of engaging workouts, brisk walking, etc., along with various training programs, skill development programs, sports activities. Gym equipment for office performance appraisal and feedback sessions to premises along with a control room are being further the career growth of our people. procured centrally to encourage employees to A few capability initiatives undertaken by GAIL devout more time towards health. (India) Ltd include: Kailaras: We have procured TT table to motivate 1. Organizing Master Class for Directors the employees in Agra region towards health Under this initiative, senior level officials of and sports. Instructions and suggestions for GAIL are nominated to attend the program improvement in physical and mental health titled Master Class for Directors with a view of employees are shared during various HSE of grooming the future leaders of GAIL, which trainings conducted by F&S Dept. A cricket includes Board Room Development and tournament between Agra region and Kailaras organization wise transformation as a whole. region has also been organized. 2. Trainings relating to Strategy-2030 Initiative Cherllapally: We organize a number of sports competitions at GAIL. Yoga and meditation In line with global business environment classes are also conducted on a regular basis. All and India’s future growth trajectory, GAIL employees are encouraged to make a habit of has formulated a Strategy-2030 to capture regular walking / utilizing the recreation facilities emerging opportunities in different fields, available at RT Cherlapally as a part of their daily relevant for GAIL. Some of these areas are

141 Energizing Growth Energizing Possibilities

a) Renewable and Alternate energy GAIL Training Institutes are located at Noida and Jaipur. Annual Training Need Assessments b) Water Value Chain (TNA) are carried out to learn and understand c) Specialty Chemicals segment the training needs of the employees across d) Mobility Future, various domains and functions. Based on this assessment analysis, an annual training schedule e) Industry 4.0 & Automation is rolled out by the GAIL Training Institutes (GTI). Around 240 GAIL executives have been trained in All the employees are allotted at least one of the the upcoming business areas. Functional / Cross functional / Behavorial training 3. Senior Management Development Centre based on their Annual Training Schedule. (SMDC) Exercise During this reporting year, GAIL has incurred an Senior Management Development Centre (SMDC) expenditure of INR 7.9 crore on all these training Exercise is carried out by HRD Department programs. The total training hours of Permanent with an objective to assess the potential and and Contractual employees are 1,11,964. In FY developmental needs for senior executive (Chief 20-21, 38.3 average hours or 4.8 days per Full-Time Manager and above grades). In SMDC exercise Employee (FTE) of training and development were the potential of executives are evaluated based given. Additionally, an average of INR 17,552 was on seven competencies namely Managing spent on each FTE on training and development. Relationship, Analytical Problem solving, The training hours and training costs include Building Capability (Developing self and others), activities related to the development of employee Achievement Orientation, Execution Excellence, skills. Planning, Organizing & Foresightedness and It is vital that all newly hired employees receive Communication. Through the above exercise, training suitable for their role, specifically in key development areas on the above-mentioned adapting to technological advancements and seven competencies are identified for all the to align them with GAIL’s vision. Our strategy participants and Individual Development Plan of developing the skillsets at the initial period (IDP) is formed for all such executives. Under of employment of the recruits has been proven Individual Development Plan the Executives are effective in developing a highly competent then provided with E- Learning modules under workforce. Our proven training framework the above competencies. provides our workforce with the expertise that Training and Development is required for efficient management of GAIL’s business. The training program for recruits is At GAIL, we facilitate personal and professional comprised of technical, functional, managerial as development opportunities of our employees through a plethora of training programs well as behavioral learning at major work centers. conducted periodically. The focus of such During this reporting period, a comprehensive training is to assist our employees to develop induction, orientation and on-the-job training new skills and to create awareness about the program was undertaken for 156 recruits. recent developments in the oil and gas industry. A comprehensive list of all the major initiatives This ongoing and continuous process, which undertaken by GTI Noida during the reporting involves learning and development on the part period is given below: of both the employees and the management, will »» A Role based Training (RBT) was conducted in contribute in improving their performance and the second fortnight of February 2021 for the competencies while keeping them up to date junior level executives (E2-E4) of Operations with current industry scenarios.

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Department of Pata in the Petrochemicals Job Training for Strategy 2030 Family. The program is aimed at Unique Roles A total of 240 participants attended the following (URs) of Executives in Gas Processing Unit programs, which were conducted under Strategy (GPU), Gas Cracker Unit(GCU), High Density 2030 initiatives Polyethylene (HDPE) plant, Linear Low Density Polyethylene (LLDPE), IOPS (Integrated Offsite »» Lecture on Water Value Chain was conducted Plant & Storage) and Boiler. through virtual online mode during 27 to 29 July 2020. The Program was conducted by »» Organized the MDP program from 29 June Indian Institute of Technology (IIT) Bombay, to 3 July 2020 and 14 to 16 September where the sessions were delivered by the 2020 and specialized MDP from Manushuo faculty from Education for Sustainable Energy Uthan (A Society for Sustainable Human Development (ESED), IIT Bombay, NEERI Development), Delhi, for the development of Nagpur, EIL and other Industrial Experts from women executives (E4 and above) during 7 to organizations like L&T and SMS Envocare 11 December 2020. Limited, Nagpur. »» Organized lectures of persons of eminence »» Lecture on Solar PV Systems was conducted on topics such as – “Leading with emotional through virtual online mode during 22 to 24 intelligence” by Dr. R D Mohan on 6th June June 2020 by Delhi Institute of Solar Energy 2020, “Importance of Cyber Security” by Shri and Technology, New Delhi Vinit Goenka on 29th Oct 2020 and – Green »» Lecture on Wind Energy Technology & Energy: The Search of an Equilibrium” by Prof. Business was conducted by National Institute Vinayshil Gautam on 10 February 2021. of Wind Energy (NIWE), Chennai during 7-9 »» Leadership talks by eminent women leaders- October 2020 “Mythology Principles and Management »» Lecture on Renewable Energy (RE) Growth Mantras” by Ms Mona Verma on 25 February opportunities for GAIL was organized by 2021, Ms Sunita Bhuyan on International GTI, Noida under the aegis of Business Women Day ie on 8 March 2021. Development Directorate. Further a 5-day »» Gender Sensitization Workshops were comprehensive module was also launched conducted by M/s BCM Training Academy, from 18 to 22 January 2021 in association with Centre of Excellence, Oil Gas and Energy, Surat (Two batches) and M/s Linking Tree, IIT Bombay Delhi (Two batches) during December 20 – January 21 for employees of Eastern, »» Lecture on Electric Vehicles and Battery Southern, Western Region and Vijaipur Technology was conducted during 6th and Work Centres. A Total of 94 employees were 7th January 2021 in association with domain covered. experts of Electric Vehicles and Battery Technology M/s Esmito Solutions Pvt Ltd., »» On-Line quiz on “World Day of the Fight Chennai in association with IIT Madras Against Sexual Exploitation” – 4 March and Online quiz on “International Women Day” – 8 »» Compressed Biogas (CBG) – City Gas March 2021. Distribution (CGD) synchronization: The 1st program of the series on the topic »» Shiv Nadar University supported GAIL in its Synchronization of CBG into CGD Networks proposed external training programs on was delivered on 23.02.2021 Petrochemicals by providing its faculty. Apart from the training programs mentioned above, GAIL has a specific Mentorship Program for

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143 Energizing Growth Energizing Possibilities its Executive Trainees. In this program, Executive training and development programs, we can Trainees are assigned with senior officials for achieve the important objective of employees’ getting necessary guidance and mentorship for development, which is so vital in today’s their career growth at GAIL environment. During the reporting period: GAIL Training Institute is consistently serving as a platform, providing opportunities to train our »» GAIL trained 3.23% of the employees in valuable human resources by imparting necessary the anti-corruption policies and procedure knowledge and expertise in different fields. We including senior management. also sponsor our employees for attending training »» To provide continued support to increase programs, conference and seminars within the employability of retired employees, India and abroad on contemporary subjects we conducted 72 programmes skills to provide them opportunity of learning and management and lifelong learning programs. interaction with the experts of various technical »» 1.9% of employees participated in human and management fields. For having a systematic rights training approach for selecting the individuals to attend training program, the need for a sound policy on »» About 4.3% employees received training on training has been felt for quite some time. GAIL’s sustainability e-learning Management System (LMS) enables »» Multiple in-house sustainability training was all the GAIL officials to have access to relevant conducted during this reporting year. INR standards and updates while providing them 6.55 lakhs was spent on environment-related with the latest updates about the oil and gas training and education sector. The objective of introducing the LMS is to improve the reach and flexibility of learning »» GAIL Received 16 complaints from the across GAIL. The Learning Management System employees and 100% of the complaints are (LMS) platform manages the overall training and resolved successfully skill development. While selecting the employees »» No employee engagement/ satisfaction to undergo training and skill development, survey was conducted during this reporting there is strict adherence to our policy of non- year discrimination. Table 1: Average hours of training LMS has a vast repository of e-learning contents such as ASME/API standards, OSID standards, Average hours of Training Per Year FY 20-21 PNGRB regulations, SOPs, etc., which are essential Per Employee for GAIL operations. The learning materials are Management - Male 19.79 designed to cater to the reader’s requirements; Management - Female 25.81 hence, it should be reader friendly. To facilitate an interactive eLearning experience, learning Non-Management - Male 14.43 materials are provided as presentations, Non-Management - Female 15.39 animations, audio-visuals, etc. Permanent Employees - Total 18.85 Value Added per Employee Learning Management System Value Added per Employee reflects its emphasis Learning is a continuous and on-going exercise. In to make the optimal and productive use of the today’s highly competitive business environment, available resources and business opportunities. training and re-training of our human resource For the year under review, Value Added per become necessary. Through well-conceived Employee was INR 2.15 crore.

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Innovative methods to improve learning and launched on GAIL Foundation Day: »» To make the learning process more • e/kqLe`fr;ka : collection of Short Stories inclusive and efficient, and inculcate a • GAIL ke Ghalib: collection of Poems culture of self-learning, GAIL’s maiden in-house publication of four e-books • Dawat-e-GAIL collection of Cooking has been collated and compiled with Recipes employee’s inputs under various • >jks[kk : Articles related to General categories. The initiative was launched Management and Operations on 10 April 2020 till 03 May 2020. Total »» 13th Knowledge and Experience Sharing 403 entries have been shortlisted for Seminar conducted in December 2020. publication and the book was published Also, a total of 100 Papers were received under four categories in eBook format under 5 different categories.

Table 2: Value added per employee We aim to meet our personnel requirements for our positions of responsibilities through Subject 2018-19 2019-20 2020-21 our existing workforce spread across various No. of 4529 4682 4705 functions within the company. This is achieved employees through the GAIL guidelines on promotions and Value-added in 13058 11567 10115.75 transfers. These guidelines assist the internal team crore to ensure that personnel suitable experience, Value add per 2.88 2.47 2.15 capability and qualifications are handed over the employees in management responsibilities of GAIL. crore As part of our preparedness for future challenges, GAIL has put in place Integrated Leadership Performance Management Development Framework and Succession We provide our employees with the opportunities Planning Framework for facilitating leadership to develop their performance, recognize their development and career planning. work, and reward their accomplishments. GAIL Succession Planning Framework is an Periodically, we conduct performance and Executive Development oriented initiative. It is career development evaluation and feedback aimed to put in place a structured framework of the employees through 360-degree feedback to ensure the adequacy of talent pool/ skill set exercise. This enables them to receive feedback availability, both in terms of quantity and quality and comments from their co-workers, superiors of potential successors, in line with Company’s and subordinates. business plan. Leadership and Succession Planning The Development strategy comprises multi- pronged Talent Development Interventions, At GAIL, we consider all our employees as valuable which include: assets of our organization. We operate with a »» 360 Degree Feedback Exercise, vision of becoming a workplace that provides a platform for all the employees to develop »» Senior Management Development Centre their professional skillsets through engaging in (SMDC) Exercise, training programs and career planning systems. »» Focused development programs

145 Energizing Growth Energizing Possibilities Master Class of Directors & Boardroom Effectiveness

360 Degree Feedback is aimed to provide an Program, we continued to undertake effective feedback to concerned executive (s) SMDC exercise with great emphasis on the via his/her peers, subordinates and seniors. developmental aspects of individual executive. Senior Management Development Centre As on date, almost all the senior executives in E-6 (SMDC) exercise has been undertaken for senior Grade and above have been covered under the executives in E-5 Grade and above. SMDC is an program. To percolate the benefit of the SMDC aid to ensure better and inspiring leadership in Program, our Company has extended the same the organization. Post SMDC, the executives are to executives in E-5 grades as well. In an initial provided with books, e-learning modules and spell during the year, over 300 executives were covered. competency specific training in premier B-schools. Customized Management Development Programs Labor Practices on Leadership have also been conducted for E-5 As part of our commitment to become a true and above Women executives. Additionally, a socially responsible organization, we are structured Management Development Program committed to advancing fundamental human is also imparted to all the newly promoted E7 and rights and responsible labor practices throughout E8 Executives. our operations. We comply with local laws as GAIL is grooming the senior level executives of well as international frameworks (including ILO convention) for human rights and labor practices GAIL at the level of Executive Director and Chief related matters. Additionally, we also work General Manager for the Board Position through towards the abolishment of the unacceptable capability building programs like Master Class for practices of child labor and forced or compulsory Directors and Board Room Effectiveness, wherein labor. Directors of GAIL Board also conducted sessions. In line with the global business environment At GAIL, we believe that our people have the right and India’s future growth trajectory, Capability to have their voices heard while raising concerns, building programs on the emerging areas such as either openly or anonymously, without any Renewable and Alternate energy (Solar and Wind negative consequence. We provide our workforce the freedom to join employees or workers Energy), Water Value Chain, Specialty Chemicals associations and form labor unions within the Segment and other upcoming areas such as ambit of statuary provisions and code of conduct. Mobility Future, Industry 4.0 and Automation Our organizational values ensure equitability are being conducted regularly for meeting the and non-discrimination in the remuneration, objectives of GAIL’s Strategy-2030. which is grounded on performance-based and GAIL gives priority to develop its Leadership competency-based principles. All the workers are capability. As part of the Leadership Development covered under collective bargaining.

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Human Rights Corporate Office in Delhi. As on 31 March 2021, 881 regular employees, i.e., 18.77% of GAIL’s total We strictly adhere to our policy of having no child employee strength are the members of GEA and labor and forced labor. All the security personnel GKS. have been trained to ensure no underage worker enter the plant/office premises and even our Periodic meetings with both the employees’ contractors prohibited from employing underage unions are held at Unit level and Corporate level to workers. For any operation, the only exceptions address the genuine employees’ related issues We to the 18 years age bar are those, who are part adhere to Section 9A of the Industrial Dispute Act of the government approved apprenticeship 1947 w.r.t notice of change. The contractors are schemes and internships. We conduct training on also required to ensure all the applicable statuary human rights periodically for all the employees social security benfits including provident fund and security personnel. in respect of the contract workers engaged by them. The contract workers are covered under GAIL upholds a zero-tolerance policy towards any the Employee’s Compensation Act, 1923 and an act that leads to the violation of human rights. We Insurance Policy is obtained by the Contractor also have ratified a zero-tolerance policy for the regularly for the grant of Death/Disablement prevention of child and forced labor and ensure Benefits wherever Employees’ State Insurance that no such employment occurs at any of our Act (ESI),1948 is not applicable; and wherever operation. During this reporting year, no incident ESI Act,1948 is applicable, the contract workers of engagement of child or forced or compulsory are ensured benefits under ESI Act,1948 through labor has been recorded. the contractor. Further, the contract workers are We comply with the Presidential Directives and covered under Occupational Health Check-Up other instructions and guidelines issued by the at major work centers. Additionally, we ensure Government of India for providing reservation, coverage of all of the applicable health and safety relaxations, concessions, etc. for Scheduled Castes compliance for permanent employees at all its (SCs), Scheduled Tribes (STs), Other Backward operational sites. Classes (OBCs) and Persons with Disabilities We believe that decent work underpins peace and (PWDs) in Direct Recruitment. security in communities and societies. We have We recognize the rights of the workers to join, form put our best foot forward to ensure decent work or not to join trade unions of their choice without condition including accommodation facilities for any fear of reprisal or harassment. We uphold all of our employees. Entire GAIL operations are our workforce Rights to Freedom of Association subjected to regular human right reviews and and Collective Bargaining by recognizing and impact assessment. Additionally, no employee supporting various employee associations such was laid-off and received no discriminatory as Workers’ Unions, Women’s Forums, SC/ ST employment complaint during this financial year. Employees Association, etc. Presently, there are Company’s Industrial Relations climate remained two employee associations operational in GAIL, congenial and constructive. There was no Man i.e., GAIL Employees Association (GEA) and GAIL Day or Man Hour lost on account of any sort Karamchari Sangh (GKS). of Industrial conflict/unrest. Discussions with GEA is a representative body of Non-Executives employee collectives are being held both at posted at various offices, plants and installations Work Centre and Corporate levels. In Company’s across the country except for Non-Executives endeavor to keep pace with the rapidly changing posted at Corporate Office in Delhi. GKS is a business requirements, employees’ aspirations representative body of Non-Executives posted at and to maintain sustainable competitive

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147 Energizing Growth Energizing Possibilities advantage, we review the HR policies at regular employees, are expected to abide include the intervals to align the Corporate HR Strategy with following: the Organizational Strategy. • Code of Conduct Some of the industry best practices being • CDA Rules followed by GAIL when it comes to respecting Human rights or ILO convention are as under: • Standing Orders »» Collective Bargaining: • Fraud Prevention Policy GAIL upholds the Freedom of Association • Whistle Blower Policy and Collective Bargaining by recognizing Further, employees are expected to abide several and supporting the Workers’ Unions, Officers’ instructions/directions issued in this regard by Associations, Women’s Forums, SC/ST Employees the company from time to time. Association, etc. There are two unions that have We create awareness and sensitization programs been recognized by the management, namely, towards this issue by conducting several training GAIL Employees Association (GEA), representative programs on labor laws and human rights. This is body of non-executives posted at various field generally organized at GAIL Training Institutes as a offices/plants/installations across India except part of our annual training plan for our executives, the corporate office; and GAIL Karamchari Sangh non-executives and contractual employees. (GKS), representing the non-executives posted at Corporate Office. In FY 20-21, 1.9% of employees availed 5,000 hours training on policies and procedures »» Grievance Redressal System: concerning human rights. Additionally, 100% In GAIL, Employees Grievance Redressal of security personnel have also been trained on Mechanism is ensured through an online specific procedures on human rights related to Grievance Redressal portal. The portal follows a security services. As a part of our commitment three-tier process and ensures speedy disposal towards creating a safe workplace to all the of grievance and aids in prompt monitoring of employees, we take necessary steps to ensure the system. An aggrieved employee can register that our employees are not subjected to any form one’s grievance with the concerned HR in Charge, of harassment. Hence, we have a defined policy in who is expected to settle the same within a place for the prevention of sexual harassment at period of 10 days from the date of registration of the workplace. the grievance. If not satisfied, the employee may In terms of GAIL’s policy for prevention, prohibition raise the matter again through the same portal/ and redressal of sexual harassment of women at system to the Corporate HR Department, which is the workplace, the Internal Committee in terms required to respond to the employee concerned of the sexual harassment of women at workplace within a period of 15 days. If the issue remains (Prevention, Prohibition and Redressal) Act,2013, still unresolved, the employee may appeal to the prepares an annual report submitted to the Director (HR), who will respond to the employee Company Secretary. concerned within a period of 15 days. Settlement »» Number of complaints of sexual harassment of grievance by Director (HR) is final and binding received during the year to all the concerned. »» Number of complaints disposed of during the »» No unfair labour practices year Internal control procedures such as policies »» Number of cases pending for more than and/or regulations, which the company and its ninety days

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148 GAIL Sustainability Report 2020-21

Awareness Program on subject to gift “Doll” badges handcrafted by fisher ‘Sexual Harassment of Women at women from coastal villages of India to their Workplace’ at NCR (O&M) Noida colleagues. On-Line quiz on “World Day of the Fight Against Sexual Exploitation” – 4 March. Inspired by Prime Minister’s vision of promoting #NariShakti and as a tribute to its women employees of the organization, GAIL (India) Ltd. celebrated International Women’s Day at corporate office, Delhi. A video was launched by GAIL on its social media platforms with the hash tag #EveryDayHerDay showcasing how women are an important part of our lives every day. The event saw a high turnout and engagement activities, where GAIL employees enthusiastically participated

»» Number of workshops or awareness This committee is important in creating programme against sexual harassment awareness about the health and safety issues. To carried out ensure safety and efficiency at the workplace, we »» Nature of action taken by the employer provide 15 days’ notice period to our workforce »» During the FY 20-21, only one complaint of in the event of any operational change. Our Sexual harassment was filed and the same Corporate Medical Cell (CMC) conducts regular has been disposed of as after the inquiry health checkup for our employees and tracks conducted by the Internal Committee, where individual employee health. A doctor is always the charge of sexual harassment was not available within the reach of any GAIL employee, proved against the respondent. Presently, no both at the corporate base and at operational complaint of Sexual harassment is pending in sites. Annual occupational health checkup is GAIL. being done for the employee health. Ergonomic Employee Wellbeing survey is conducted for employee welfare. Physical and mental well-being of employees is Health awareness sessions such as fitness, yoga, non-negotiable at GAIL. We believe, maintaining stress management, lifestyle management and the health of our workforce and community is nutrition sessions for our employee and carry out fundamental to business longevity. various events such as Sporting events such as We are committed to providing a full health slow cycling, badminton and rangoli competitions checkup menu for both the permanent and were organized at colony Special precaution and contractual employees. We have a 100% special awareness lectures at both plant and representation of our workforce at formal joint colony were organized for prevention and spread management health and safety committees. of COVID-19.

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Awards:

GAIL (India) Limited, the country’s Natural Gas leader, has featured in the Forbes list of World’s Best Employers 2020. There are only 31 Indian companies in the list, out of the total feature of 750 companies from 45 countries, with just nine Indian Public Sector Entities making the cut. Out of 750 Companies across the Globe in Forbes Best Employers 2020 list, GAIL’s ranking is 403. It is ranked 5th among Indian PSEs.

Employee Care during COVID-19: »» During the early weeks of Lockdown last year, the Corporate Communications team »» Tie-up with Apollo Group of Hospitals for the in collaboration of employees of other Stay I @Home services under Project Kavach departments across various locations, came for GAIL employees to combat COVID-19. up with two music videos to boost the morale »» As part of SPARSH, a team of 55 Executives of all employees and enhance the feeling of from HR Directorate tele-called 4614 active togetherness during those tough times. employees spread across 200+ locations »» Corporate Communications team also came Pan India and USA/Singapore and 600 + up with a series of informative videos as part superannuated employees during COVID-19 of #HumKadam campaign. These videos Lockdown. The Initiative was launched on 30 had interviews from COVID-19 recovered March 2020 and completed on 3 April 2020 employees and many other COVID-19 wherein we could contact 5,200 + employees prevention measures as well as tips to engage (regular/superannuated). A video message positively and productively to mitigate stress, from the Director (HR) was also shared with increase immunity, pursue hobbies that could the employees to drive home the message of be taken up by the employees. togetherness and solidarity in this situation.

150 Our Community 13

Peela Gulmohar Location: Pata Our Community

For an organization to truly fl ourish, its community Building mutual trust and respect for the must also progress. Inclusive development has indigenous people in the areas where we operate never been an afterthought in our philanthropy, is part of our commitment. Stakeholder viewpoints but rather a core component of our business are important to us in project planning, design, strategy. Our vision and strategic objective are execution, and operational planning. While to be a leader in natural gas while transforming beginning any project, we consider addressing the concerns and issues of the local communities thousand lives. and this is one of our top priorities. There was Our close interactions with local communities no case of substantial disagreement with local have equipped us to identify the most pressing communities or violation of indigenous people’s needs, understand lives of underprivileged rights documented during this reporting year. people and provide suitable remedies. We have CSR Policy pioneered various CSR initiatives to empower GAIL aims to enhance value creation in the weaker, less privileged and marginalized sections community, in which it operates, through its of the society recognizing the diversity of each services, conduct & initiatives. The operating community in terms of ideology, expectations, guidelines to CSR policy allow us to undertake concerns, and demands. CSR projects specifi cally focusing on targets Regularly engaging with the local communities groups recognized in the clause including BPL, through various channels helps us to be aware SCs, STs, OBCs, PwDs, and communities around about the progress of the intervention and obtain work centres of GAIL etc. feedback for them. The active participation of the Our community engagements and initiatives are community plays a critical role in the formulation, designed and implemented under the corporate execution of various CSR projects, facilitates us in social responsibility (CSR) initiative “Hriday”. Our building trust and lays the foundation for positive team strives to socioeconomically empower socio- economic outcomes for both the company people from all disadvantaged groups and create and the communities. a positive impact in the society. A list of activities carried out under the ‘Hriday’ program is provided Social Commitments in the following section. GAIL acknowledges the positive and negative At GAIL, the CSR activities are eff ectively designed impact caused by its business operations on and implemented by our internal CSR committee. the local communities and strives to minimize The committee was formed in compliance with it. During the reporting period, no incident of the provisions of Section 135(1) of the Companies signifi cant negative impacts of our operations on Act, 2013. It provides guidance and leads the CSR local communities were reported. initiates with utmost care.

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As on 31st March 2021, the CSR Committee Need Analysis: comprises of the following members: GAIL CSR Committee reviews and approves » Mr. Manoj Jain, Chairman of the Committee the implementation of CSR projects based on – C&MD the requirements and requests of the local » Mr. P K Gupta – Director (HR), Member communities. The need analysis is conducted through the following steps: » Mrs. Banto Devi Kataria- Independent Director, Member » Needs identifi ed by the local CSR team through fi eld assessment In the fi nancial year 2020-21, the Corporate Social Responsibility department has taken up a total » Requests received from villages, local of 231 projects. GAIL has spent INR 147.67 crore, authorities and district administration which is nearly 2.05% of average net profi t of » Third-party need assessment studies preceding 3 years. All the projects taken up under » Reports or publication or surveys published the GAIL Hriday umbrella are in line with the by the international organizations and activities detailed in Schedule VII of Companies ministries Act, 2013 and its amendments. Additionally, GAIL has spent INR 70.16 lakh on internal administrative » Requests received from people representatives activities such as capacity building activities for for their respective constituencies the employees. Impact Assessment: Need Analysis and Impact To achieve maximum impact in a sustainable and Assessment participatory way, monetary provisions are made available to conduct impact assessments. The We are taking conscious eff orts for community value ranges from INR 50 lakh to INR 2 crore. The development by creating various opportunities impact assessments are carried out by GAIL’s CSR through focused and proactive projects. The department and site coordinators in association projects are based on extensive need assessment with various agencies and academic institutes and focus on providing sustainable solutions. The impact assessment includes a SWOT Our social impact projects are thoroughly (Strengths, Weaknesses, Opportunities of assessed and monitored to gauge their impact improvement/ augmentation/ modifi cation and collect feedback. We also undertake third- and Threats) analysis that enables the CSR party impact assessments of our major projects team to identify the viability, sustainability and and identify interventions to ensure that the improvement areas of the projects. This is assessed projects achieve sustainability. by an external agency. During this process of Our CSR activities are in line with our expertise impact assessment, case studies, success stories and competencies. As a result, we have made a and feedback from concerned stakeholders positive diff erence in the lives of the recipients. are also collected. This helps in recognizing the We recognize that no amount of secondary data project impact on the concerned site. on a community can confi rm the community’s » Total number of operations with local requirements as well as they can. As a pre- community engagement, impact assessments requisite, for initiating any CSR project, a and development programs were 100% mandatory preliminary baseline survey/need assessment report is generally conducted. GAIL » Total number of operations with signifi cant CSR policy can be accessed at http://gailonline. actual and potential negative impacts on com/pdf/CSR/fi nal_policy2010.pdf local communities were zero

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Stakeholder perspectives are important to us »» To undertake water conservation and in project planning, design, execution, and community nutrition-related initiatives operational planning. While beginning any »» To support and advocate the Government’s project, we consider addressing the concerns and efforts in developing infrastructure for health issues of the local communities to be one of our and sanitation top priorities. GAIL Hriday »» To operate Mobile Medical Units (MMUs) across multiple states including Madhya We strive to enrich the lives of thousands of Pradesh, Uttar Pradesh, Gujarat, Haryana, underprivileged people by creating social Uttarakhand, Andhra Pradesh and Punjab capital across our seven CSR focus areas of education, healthcare, skill development, women »» To improve accessibility and increase the empowerment, environment protection, etc., availability of potable water in the selected which are identified by understanding the needs regions and requirements of the local communities. These Events under GAIL Arogya initiative programs are executed through partnerships in 2020-21 with communities and NGOs, staff volunteerism, and direct corporate donation. Driven by passion Initiatives to fight COVID-19 and propelled by commitment; these focused, »» GAIL delivered 732 personal protective value-driven developmental CSR projects will equipment (PPE) kits to the Gautam Buddh help us reach out and transform many lives. Nagar Government Hospital in Noida. CSR expenditure »» GAIL has partnered with Sudhaaya Dance Foundation and traditional artists from indigenous and tribal groups, utilizing the narrative power of art forms like Gond and Warli. To reinforce information about the 160 147.67 pandemic, aged 8 to 12 in Government 140 124.79 schools across Delhi NCR as part of the project. 120 119.29 100 »» GAIL CSR has pledged to assist in the 80 60 provision of COVID-19 vaccine cold chain

(in INR crore) 40 equipment. Madhya Pradesh has received 20 0 23 deep freezers (small) and one refrigerator FY 2019 FY 2020 FY 2021 truck, while Tripura has received 16 ice lined refrigerators (small). Details about the initiatives undertaken within »» GAIL Karaikal procured 220 Pulse Oximeters these seven focus areas of the Hriday initiative are for the benefit of the public in Karaikal provided below. District, in response to the District Collector’s Hriday as an umbrella concept has 7 major focus request to bolster the District’s Public Health areas. They are: Emergency Response. GAIL Arogya Support towards STI & HIV Prevention, testing and treatment for truckers GAIL Arogya Initiatives are: The project’s goal is to help GAIL Vijaipur’s truckers »» To improve the health and sanitation facilities and cleaners live a healthy lifestyle by providing of the local communities

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154 GAIL Sustainability Report 2020-21 high-quality healthcare services with a focus on quality products at two centers in Noida from preventing sexually transmitted infections and the waste flowers. HIV. Awareness activities/sessions, interpersonal »» Campaigning/Marketing of the initiative and discussions with beneficiaries, street plays, sale for the end products through various mobile exhibitions, counselling services, and free platforms-digital/exhibition, etc. food were all used to achieve the goal. GAIL Ujjwal Support for Distribution of Aids & Assistive Devices to Divyangjans GAIL Ujjwal Initiatives are: The implementing agency, Artificial Limbs »» To facilitate infrastructure development for the Manufacturing Corporation of India, provides education of children from underprivileged prosthetic limbs, wheelchairs, tricycles, hearing and marginalized sections of the society aids, and other items to identified and selected »» To renovate various government school recipients under this flagship project of GAIL CSR facilities and assist in improving IT facilities, (ALIMCO). The process begins with a district-wide science labs, provision for the supply of assessment camp to determine the number of equipment and stationeries beneficiaries and the appropriate assistive aids »» To encourage and facilitate the education that will be necessary. The Assessment camp is of meritorious students from marginalized followed by a Distribution camp where the aids sections of society through scholarships, are distributed to the identified beneficiaries. specialized residential coaching and Combating pollution caused by floral mentoring for competitive examinations disposal from temples in water bodies in such as IIT JEE, etc.; this is achieved through and around Noida the Project Utkarsh under the GAIL Ujjwal The project began with the goal of improving initiative. health and well-being indices by minimizing Events under GAIL Ujjwal initiative in pollution caused by floral waste disposal from 20-21 temples and other places of worship through recycling. Floral recycling is accomplished by GAIL Rajahmundry launches 2nd phase of teaching people with disabilities (PwD) on how to quality education program in Anganwadi make items such as dried petals (for Holi colour), Centres under ICDS program hand rolled Agarbatti, seed bombs, compost, and The first phase of this CSR initiative began in seed poop. The project involves: January 2020 and ended in March 2020. Sh. K P »» Sourcing and Collection with the aid of Noida Ramesh, CGM (O&M) & OIC, GAIL Rajahmundry, Authority from 12 Temples and other places formally began the second phase operations of worship in and around Noida. on 29 December 2020 at the CDPO office in Rajahmundry. GAIL is covering 60 Anganwadi »» Collaboration with the NGOs working with (ICDS) Centers in Rajahmundry as part of the persons with disability (PwD) in Noida for initiative, where special sessions on Yoga will be involving PwDs in recycling the flowers into held with special focus on pregnant and lactating green products. women. »» Providing skill training to 130 PwDs, women Classes in craft creation, dancing, and music, and NGOs in recycling of approx. 700 kg of among other things, are taught to Anganwadi floral waste. children using specially devised “play-way” »» Development/creation of consumer-friendly methods. Furniture was also provided based on

155 Energizing Growth Energizing Possibilities the needs of Anganwadi Centers to improve basic GAIL Kaushal amenities and the ambiance of ICDS Centers. GAIL Kaushal initiative focuses on the skill GAIL officials, as well as Anganwadi teachers from development and livelihood generation of the the 60 ICDS centres that are part of the project, poor and marginalized communities in the were in attendance. society. Other objectives of the initiatives are Support towards renovation work in given below: Primary and Upper Primary Schools in It provided opportunities to the women and Salhupur Village, Auraiya youth to improve their income through skill Hon’ble Agricultural State Minister Shri Lakhan development. This is achieved through GAIL Singh Rajput inaugurated the project on 29 August Institute of Skills, which is located at Guna (MP), 2020, in the presence of Shri Ajay Tripati, ED (PC- and Nagaram (Andhra Pradesh). These institutes O&M) & OIC. Officials from GAIL, the Executive provide skills training in auto CAD, web designing, Engineer, UPSCIDCL workers, and members of domestic BPV/BPO, welding, industrial electrician, the public were also in attendance. Renovation of CNC operator, instrument technician, retail an old building, construction of two classrooms associate, masonry to youth from the remote and and toilets at a government primary school, and backward districts. renovation of an existing structure are all part of this project. Events under GAIL Kaushal initiative in 2020-21 Support for construction of Indoor stadium at Balangir Support of Atal Innovation Mission GAIL is financing the construction of an indoor Through Atal Tinkering Labs in GAIL’s Aspirational stadium at P R High School in Balangir, Odisha, Districts, GAIL CSR has teamed with UNISED, as part of its CSR effort. The stadium will feature a startup founded by IIT graduates, to foster a large hall with four badminton courts, one innovation and entrepreneurship in the country. table tennis practice room, gallery space, players’ Through the ATL programme, GAIL takes great dressing rooms, and other amenities. This delight in nurturing the next generation of infrastructure will play a vital role in identifying, innovators. fostering, and promoting rural sports talent The project collaborates with ten schools in from the remote rural areas of the country and Assam (4 in Barpeta and 1 in Mangaldoi) and have limited access to sports equipment and Madhya Pradesh (District Guna) on the initiative. infrastructure. It is being constructed utilizing In the ATLs of all schools, a full tracking exercise pre-engineered construction techniques to of all activities was completed. Regular teacher ensure speed and quality. training workshops are held to guarantee that The stadium will incorporate rainwater collection the spirit of ATL is preserved and that it does not capabilities and solar-powered outdoor devolve into a rehash of classroom lectures. lighting in order to promote and encourage the GAIL Institute of Skills, Guna protection of natural resources. Every year, the project is expected to benefit more than 10,000 GAIL Institute of Skills is one of the renowned students and others with a sporting bent as the initiatives implemented as part of GAIL Guna’s infrastructure built, as part of the project will CSR projects. The goal of this effort is to discover service the appropriate population. needed candidates, who have been unable to find work owing to a lack of education, skills, or direction, and to train them in their areas of

156 GAIL Sustainability Report 2020-21 interest and market jobs as well as to connect program for impoverished women in Andhra them with paid employment. Pradesh’s East and West Godavari districts. As part of the CSR program, 110 women were chosen and Since its inception in 2010, the program has given training in how to sew school uniforms and benefited 5,433 candidates from over ten Madhya women’s clothing. In the presence of Women- Pradesh districts. On the Agra-Bombay National Internal, certificates of training completion were Highway, the Institute is located on a 2-acre site. handed to women beneficiaries. The training infrastructure comprises five high- end technical workshops for practical training GAIL Saksham and a 120-bed dormitory facility to accommodate GAIL Saksham initiatives are: candidates from outlying areas, and it is capable »» To recognize and address the need for of training candidates from all over the world. attention and care for differently abled The institute offers counselling programs at the persons and elderly Panchayat level, Industrial Training Institutes, »» To provide the provision of hearing aids and Polytechnics, and Employment Offices to bring other assisted aids for students with special awareness and benefit to as many individuals as needs possible. In addition, a ‘Rozgar Rath’ travels across GAIL Harit the GAIL Vijaipur catchment region to reach the GAIL Harit Initiatives are: district’s interior communities. The National Skill »» To contribute towards restoring the planet by Development Corporation is linked with and protecting the environment accredits the institute, as are all its programs. GAIL Unnati »» To mitigate the negative impact of GAIL’s operations The objective of GAIL Unnati initiative is to During this reporting year, GAIL has spent INR implement initiatives to contribute to the overall 50 lakh on tree plantation and afforestation rural development. initiatives. During this reporting year, GAIL has spent Events under GAIL Harit initiative in INR 455.68 lakh on developing/supporting 2020-21 infrastructure for communities and public good under the Unnati Initiative. Conversion of diesel boats to CNG in River Ganges, Varanasi GAIL Sashakt As many as 1,700 small and large boats with The objective of GAIL Sashakt initiative is to diesel engines will be replaced with CNG engines empower women from economically weak and under this initiative to considerably reduce water, marginalized sections air, and noise pollution in the Ganges while also All interventions undertaken are in alignment improving scenic attractiveness. In addition, 51 with the guidelines of the Department of Public boats will be equipped with CNG engines in the Enterprise (DPE) and the rules of the Companies first phase. Act, 2013. On 27 March 2021, Shri Dharmendra Pradhan, Women empowerment- Training program Minister of Petroleum, Natural Gas and Steel, in Stitching and Sewing observed the development of GAIL’s CNG boat conversion project at Khidkiya ghat in Varanasi. As part of its CSR initiatives, GAIL, Rajahmundry, During the evaluation, Varanasi Nagar Nigam launched a 45-day stitching/sewing training

157 Energizing Growth Energizing Possibilities signed the project implementation agreement in engage with our communities on regular intervals his presence. in order to understand their distress and give Distribution of Solar Home Lights to them a means to voice their concerns, address Beneficiaries their complaints, and find solutions to the issues addressed. We have set up a grievance cell at each The project’s goal is to bring lights to distant of our offices for this purpose. All the complaints villages in Uttar Pradesh’s Auraiya district. A total are collected and stored in a central system and of 1,000 Solar Home Lights are being installed as investigated individually with equal importance. part of this project. Further, necessary actions are taken in this regard Community Grievance Redressal as quickly as possible. During this reporting year, GAIL received 152 complaints from the public at We feel that strengthening community links large and 100% of the complaints were resolved contributes to greater transparency and promptly. accountability among us. We make it a point to

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158 Our Customers 14

Queen’s flower Location: Gandhar Our Customers

At GAIL, we have set up systems to communicate GAIL’s Customers with our customers about our operation, our Currently, GAIL has a domestic gas customer products, and handling their grievances in the number of 354 and RLNG customer number of most eff ective way. Customer experience is at 298. Sector-wise breakup is provided below: the core of our business. We strive to improve the customer satisfaction level by promptly grasping Sectors Domestic RLNG customer needs through better business delivery, market research and customer engagement Fertilizer 15 20 initiatives. To evaluate customer experience, we Power 34 10 conduct customer feedback survey periodically through various modes. This enables us to CGD 172 38 improve our products, services and approach, thereby ensuring customer satisfaction and Others 133 230 building a long-term relationship that positively Total 354 298 infl uence our business growth.

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Customer Privacy Product labeling All stakeholders, from peers to investors to Product labelling provides information about authorities to daily transactional partners products to a prospective customer. It is an and to courts, who comes in contact with an effi cient medium for consumers to access organization, is relying upon the ability of that accurate information about the social, economic organization to establish the trustworthiness and and environmental impact of the products they accuracy of the stored documents, records and consume. We have taken adequate measures information. GAIL recognizes the responsibility; to address this issue appropriately so that our thus, we have dedicated Document preservation customers can make an informed decision about policy to assure that their business records are their purchase. being created, captured, stored and disposed in GAIL’s approaches to providing product a secure and trusted manner. information are provided below: Customer privacy is integral part of our In the case of Polymers, the following product agreements, which include matters such as the information is displayed on 25 kg strong bags protection of data, the use of information or made of woven fabric: data for their original intended purpose, the obligation to observe confi dentiality and the » Grade Name protection of information or data from misuse » Batch Nos or theft. Customers are understood to include » Manufacturer details end-customers (consumers) as well as business- » Made in India to-business customers. No complaints received concerning the breaches of customer privacy » Symbols for storage, during the last fi nancial year. » Recyclable, RLNG: The agreements with the customers, » Handling of bags i.e., GSAs / GSPAs contain Confi dentiality » Net Weight clause wherein both the sellers and the buyers » BIS Logo are obligated to keep the information i.r.o. transactions/business pursuant to the said » Contact e-mail for customer support agreements confi dential except for the purposes No incidence of non-compliance with regulations as allowed by the law. and/or voluntary codes concerning the health Domestic Gas: GAIL has a very vast and diverse and safety impacts of products and services customer base and is supplying gas to various within the reporting period. entities across the natural gas value chain. Customer Grievance Redressal Considering the signifi cance/ importance of unique selling propositions (USP) of customers, We believe in providing great customer service the contractual provisions/ fi nancial agreements while recognizing the importance of accessible /clauses are kept confi dential with all customers and eff ective grievance mechanisms in addressing including end-customers (consumers) as well our impacts. Any dissatisfaction or concerns our as business-to-business customers. Several customers have can be resolved through our measures concerning the protection of Grievance Redressal process. Upon receiving the information or data from misuse or theft are feedback from all GAIL business units, we develop taken in consultation with domain experts on the action plans to address the issue and resolve it subject matter. immediately.

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During this reporting year, 107 complaints »» To actively participate and represent GAIL in were received at various zonal offices, all the technical forums and business association for which were resolved satisfactorily. Further, all awareness and policy advocacy purposes the technical complaints received at GPTC were »» Application development and promotion for satisfactorily resolved to customer satisfaction. customer benefits We have also taken necessary actions to resolve Some of the complaints received at GPTC: physical complaints. »» GAIL polymer grades: In technical quality, Total 1,981 customer complaints are received in the customers mainly raised the issue of flow CGD segment, of which 85% of these complaints lines in B52A003/B63A003, roughness in were resolved satisfactorily by the management. inner surface/low strength in P52A003, low Customer Satisfaction strength/elongation in W50A009 and low MI in R36A050U. We believe that customer satisfaction and customer loyalty are imperative for long-term »» BCPL polymer grades: In technical quality, business growth. Hence, we review and redefine the customers mainly raised the issue of gels/ the strategies to provide better service through unmelted particles in F20S010I. our business initiatives. GAIL’s zonal offices are In-house tests, additive analysis, customer visits constantly in touch with the customers of their and virtual meetings were undertaken to address respective regions to gather information related the customer quality concerns. Based on the trials to their natural gas requirements, any existing conducted at customer premises and supported issue pertaining to supply, Gas Supply Agreement by in house studies carried out at GPTC, a feedback (GSA), etc. In order to retain these customers, was given to the Pata plant to produce modified GAIL offers contractual flexibilities and tries to trial lots suiting the end-product requirements of increase overall customer responsiveness. In the customers, especially in GAIL grades, namely, case any existing contract/GSA is expiring, the P52A003A, B52A003, W50A009 and in BCPL Zonal offices, reach out to the customers for namely F20S010I. contract renewal, and based their then prevailing requirement, enter new contract after internal Complaints received in CVM offline deliberation with GAIL Corporate Marketing. survey FY 20-21 GAIL Polymer Technology Centre (GPTC) in Noida »» Product quantity needs consistency, stability (Delhi NCR) is one of our endeavors for our and Impurities-Dust / Water in APM Natural petrochemical business segment. Through this Gas Supply. service, GPTC provides technical assistance to »» LNG is odorless and its leakages cannot be resolve product-related concerns of consumers identified on polymer grades. This customer service and »» Pressure fluctuation in APM & RLNG gas feedback interface carry below-mentioned supply activities: »» Due date for the payment of invoices need to »» Consumer/customer complaint redressal be increased, where GAIL needs to reduce gas »» Assistance on the proper selection of GAIL prices grades Marketing departments have provided »» Entrepreneurial guidance mitigations against these observations / »» Development and modification of GAIL feedbacks of CVM-Survey. Accordingly, customers petrochemical grades to meet market needs have also been informed.

162 GAIL Sustainability Report 2020-21

CSI online survey 2020-21: building trust and support. We focus on delivering the best end-to-end customer experience. We We have received a total of 39 of customer have multiple focused initiatives under our observations in NG segment through online CSI- customer engagement programs. It provides Survey in FY 20-21, out of which the major ones them with solutions to their queries about are: products and product portfolios and attempts to »» Product Quality: Variation in Calorific Value, create awareness about our services. In the long Liquid Condensate and Impurities-Dust / run, such initiatives help GAIL to enhance brand Water in APM Natural Gas Supply credibility while reaching out to more potential »» Delivery of Products: Availability of desired customers. quantity, pressure fluctuation in APM & RLNG Customer Meets and Other Events gas supply Customer meets are generally a platform for our »» Technical support: GAIL Representative Visits customer raised concerns about product quality, need to increase for Technical Support process, etc. During the reporting year, GAIL team Marketing and Corporate O&M departments have has attended multiple customer meets and other provided mitigations against these observations relevant events to interact with our customer / feedbacks of CSI-Survey. base. Due to ongoing pandemic, we emphasize Petrochemical Customer Interactive Meet strongly on virtual meetings. We have held virtual on 12.03.2021 at Indore meetings with major and new customers for Bhopal Zonal Office organized an initiative for technical support, product feedback and new engaging with polymer customers in FY 20- product development. 21. The meet was chaired by ZCGM and other Our consistent efforts towards achieving customer officials from Bhopal ZO, Vijaipur and GPTC, satisfaction have helped us in achieving the Noida were present during the occasion. A overall, Customer Satisfaction Index of 96 for the total of 165 participants attended the customer FY 20-21: interactive meet with great fervor, which includes »» Effective management and retainment of 145 Petrochemical customers from Indore and customers through increased customer nearby industrial areas of Dewas, Ujjain, Ratlam, loyalty Khargone, Burhanpur, Khandwa, Bhopal and Vidisha. The interactive session was organized »» Improving GAIL’s brand value and customer with a view to elucidate the customers about preference future demand in the polymer industry, discuss »» Tapping into previously untapped markets about GAIL supply mechanism to the polymer »» Expanding our customer base industry and to receive feedback from customers »» Recognizing critical customer concerns regarding our services and quality of products. This customer interactive meet helped GAIL »» Timely resolution of customer Identifying in understanding customer requirement and areas of customer dissatisfaction and their expectations, thus contributing to increase in timely mitigation customer satisfaction. This will aid in the retention Customer Engagement of existing customers and help GAIL in increasing Throughout the year, our team engages with customer base by adding new customers to our our customers through various platforms while portfolio.

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Gas Customers interactive meet at Indore, from GAIL Side so as to improve the customer Vijaypur and Gwalior satisfaction. This, in turn, would help GAIL in customer retention, especially when majority of Bhopal Zonal Office successfully organized the customers already fall under GAs of existing 3 Gas Customer Interactive Meets at Indore, authorized CGD entities. Vijaypur and Gwalior on 19, 22 and 24 March 2021 respectively. ED (O&M-CR) and OIC-Vijaypur Saksham 2021 graced the occasion at Indore and Vijaypur A virtual technical meet was organized under as Chief Guest. The interactive sessions were Saksham 2020 for all the three marketing organized with a view to elucidate the customers segments, i.e., NG, PC and LHS under ( Jaipur Zonal about the current development in the gas Office) JZO on 5 February 2021. The customers industry, discuss about various portfolios of gas were informed about the marketing initiatives sourced and offered by GAIL and advantages of taken by JZO, supply started to new CGD entities, continuing with GAIL. The occasion was also used past one-year performance of JZO, tie up of new to receive feedback from customers regarding the customers, the introduction of a new grade in the services and other issues. GAIL Team addressed PC segment etc. Further, virtual meetings were the queries regarding different types of contracts, also organized with different CGD entities to mitigation of various contractual issues and expedite the Business opportunities and extend addressed other apprehensions of the customers. GAIL support for expanding their network in the Our main strategic intent was to address their authorized GA. Similar events under Saksham concerns and continue to improve the services 2021 were held by other zones also.

ÆÆ BHZO Customer Meet March 2021

164 Our Suppliers 15

White-throated Kingfishers Location: Vijaipur

102-9 Our Suppliers

Our suppliers at GAIL are an indispensable aligning with the law of land. The General element of our success story by equipping us Conditions of Contract (GCC) form an integral part with the essential materials and services to carry of the tender document and once awarded with a on our business operations. They play a vital contract, vendors and suppliers are mandated to role in ensuring business continuity through the comply with the conditions covered in GCC. supply of goods and services related to both our According to the GCC provisions, GAIL expects core and non-core operations. the suppliers and vendors to follow the guidelines We enable an environment of shared prosperity explicitly. For initial screening, we have inserted and long-term stability by constantly engaging the human rights clause for all the investment with our stakeholders through fair and agreements and contract with suppliers. This transparent interactions. By doing so, we work fi nancial year, none of our suppliers created any towards garnering long-term partnerships for the signifi cant social or environmental impact. benefi t of our business as well as our suppliers. No Child Labour Procurement Practices We do not endorse or promote child labour The value of ethical procurement lies in both within our premises or supply chain as a tangible and intangible gains for a company. responsible organization. To ensure the same, It eliminates uncertainties, enables security we have developed strict guidelines to guide us and brings transparency into our business. To in engaging with our suppliers. Our agreements promote sustainable development, we ensure with contractors have mandatory clauses binding that our procurement practices are conducted contractors against the use of child labour. The in an ethically and morally responsible manner labour supply contractors are required to obtain while reducing impacts and focusing on labour permission from the GAIL authority. We environmental and societal benefi ts. Through work in accordance with the government’s rules risk-free supplier selection, we ensure that all while considering the age limit for employment our suppliers are willing to comply with all the across all our units. As per the government’s rules, applicable regulations and standards set by GAIL. the minimum age limit for the employment of More information/procedures about the supplier contract labour is 18 years of age. selection are described in the upcoming sections. General Conditions of Contract Supply chain Management Green Procurement We qualify our vendors and suppliers through the tender bidding process, to identify and eliminate We recognize our suppliers as our business confl ict of interests and other violations of our partners. They play a crucial role in our ability procurement policies and ethical standards to deliver high-quality products and services.

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We actively engage with suppliers to improve No ICB tenders below Rs 200 crores the quality of our products and improve our Tenders on International Competitive Bidding sustainability performance. We ask our suppliers (ICB) basis not invited for tenders up to Rs. 200 to live up to strict requirements, preferably having crores (except OEM / Proprietary/Emergency certifi cations on their quality, environmental, and cases). In exceptional cases where there are special work environment management systems in place. reasons for inviting International Competitive All the bidders are required to confi rm acceptance Bidding (ICB) tender upto Rs. 200 crores, prior to our General Conditions of Contracts wherein approval of competent authority is obtained they confi rm abiding to all provisions relating to while recording detailed justifi cation for resorting impact on society environment, labor practice to ICB Tender. Secretary (Coordination), Cabinet and human rights aspects. In order to procure Secretariat shall be the Competent Authority to energy effi cient and sustainable products, GAIL accord the approval for processing tenders on has introduced the following provisions: ICB basis upto Rs. 200 crores in exceptional cases » Loading criteria in tenders for procurements mentioned above. of compressors or turbines or generators etc. Implementation of Purchase for fuel consumption Preference Policy » Star rating of electrical equipment. Various purchase preference policies have been » Green building concept in all new building implemented in GAIL in order to promote the projects local vendors: » Compulsory Buy Back of Old PCs, laptops, a) Public Procurement Policy 2021 for MSEs Cartridges etc. by Supplier supplying such new items b) Policy for Purchase Preference (linked with » Procurement of new lighting and lighting Local Content) (PP-LC) fi xture of LED only. c) Policy to provide Purchase Preference to » Automatic switching off the light in utility Domestically Manufactured Electronic area to avoid extra consumption of power. Products in Furtherance to Public » Buy back of batteries by approved suppliers Procurement Policy (Preference To Make In only India), Order 2017 Minimum 3 star rating in the specifi cation while d) Policy to Provide Purchase Preference procuring electrical items and ACs more than 10 to Domestically Manufactured Products years old to be replaced after doing a cost benefi t of Petroleum and Natural Gas Sector in analysis. Furtherance to Public Procurement Policy Promoting local procurement (Preference To Make In India), Order 2017 e) Policy for Preference to Domestically Most of the requirements are met locally. Approx. Manufactured Products, Services or works 94% goods are sourced from the local suppliers Relating to Telecom in Furtherance to Public ‘Local supplier’ here means products/services Procurement Policy (Preference to Make In from India, equal preference is given to all the India), Order 2017 states. GAIL has adopted various measures as a part of Atma-Nirbhar Bharat (Self Reliant India) to f) Policy for Providing Preference to Domestically promote the participation of the local domestic Manufactured Iron & Steel Products bidders. Some of the measures are highlighted as GAIL has implemented Public Procurement below: Policy for Micro and Small Enterprises (MSEs).

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The policy targets 25% of procurement from MSEs The objective of INDEG Groups is to take initiative with a sub target of 4% from MSEs owned by the to develop indigenous source of materials/ Scheduled Caste or the Scheduled Tribe and 3% services, import substitution and reserving from Women entrepreneurs for the Goods and materials/ services to be supplied by domestic Services rendered by such organizations. vendors only. In addition, GAIL implements all policies of the MoP & NG has constituted a technical group Government which contributes sustainable consisting of representative (s) of EIL, ONGC, sourcing such as Domestically Manufactured IOCL,GAIL, BPCL, HPCL & OIL for development Iron & Steel Product, Purchase Preference (Link of Make in India- Exhaustive portal. GAIL with local content) (PP-LC), Policy for Preference associated in development of Portal for “MAKE to Domestically Manufactured Products, Services IN INDIA OPPORTUNITIES IN OIL & GAS SECTOR”. or works Relating to Telecom, Domestically GAIL Actively Participating in development of Manufactured Electronic Products (DMEP)- “Make in India - Exhaustive portal” covering Preferential market access policy, Preference the opportunities in Oil & Gas sector for Indian under PP-LC policy of MoPNG etc. Apart from Manufacturers & Foreign Manufacturers this GAIL has also introduced the startup policy interested in setting up manufacturing base in wherein registered Startups are exempted from India. mandatory requirement of meeting the Technical Initiatives taken for Engaging with BEC. Vendors, Suppliers Uploading of Annual Procurement In this difficult time of COVID-19, GAIL has Plan for next five years taken following extraordinary initiative to ease GAIL regularly upload the Annual Procurement and facilitate the business with our vendor and Plan for MSEs on its GAIL tender website. suppliers: In addition to above, Procurement plan for »» Payment of labour charges to contractors for next five years has been uploaded on the GAIL’s lockdown period. website to help domestic manufacturers to set up »» Faster Payment to Contractor to provide production. Details of link has been shared with liquidity. all domestic vendors. »» Consideration of COVID-19 as Force Majeure Qualification of Indian Bidder Based and extension of contract period by 3 to 6 on Experience of Foreign Supporting months. Company »» Reduction of CPBG to 3% from existing 10% In order to boost Make in India & Atmanirbar in ongoing and new contract. Bharat and enhance the participation by Indian »» Relaxation of timelines for submission of bidders, policy has been introduced in GAIL to CPBG. consider qualification of Indian bidders based on experience of foreign supporting bidders. GAIL endeavors to procure material or services following transparent procedure and guidelines INDEG Group constituted for & policies of the company and Govt. of India. development of Import substitution In all tenders pre-tender or pre-bid meeting is INDEG Groups at Apex level and Site level have conducted to ensure wider participation and to been constituted in GAIL. Meetings of Apex level educate vendors on the tendering process. In and Site level committee are being held regularly. addition to above, vendor meets, MSEs meets,

168 GAIL Sustainability Report 2020-21 representing GAIL in Industry Conclave are few and ease of doing business. GCC is no longer other initiatives taken by GAIL to effectively being made part of tender documents. engage with the suppliers. GAIL has introduced the Document Transmittal GAIL has also conducted various meets with System for signing and countersigning of the Micro and Small Enterprises including SC or bulky contract documents in Projects. In which ST entrepreneurs across India. In this financial the bulky documents are signed by the GAIL year, GAIL has conducted fifteen (15) Vendor official via digital means without taking out the Development Programs across various work printout of the documents. This digitally signed centres. contract document is transmitted online to the contractor, who in-turn countersigned the In order to develop GAIL vendors and coach document and send it back to GAIL. them for long term association, Vendor Coaching Further, following initiatives were taken towards Program are being held with aim to eliminate ease of doing business at different stages of a the gaps in understanding by coaching vendors project: on the common lapses in tender process and contract execution. A. Pre –Award Stage C&P Department annually conducts the Pre-Tender Meeting: For better understanding Vendor Interactive Meet, the last such meet of technical & financial qualification criteria, was conducted on 01.11.2019 and attended by specifications / scope of work, etc. of tender. approx. 150 vendors. Feedback from prospective bidders to Avoid complexity during evaluation stage. Pre-tender Ease of Doing Business: meetings details are uploaded on GAIL’s website Digital Transformation for wide publication. GAIL has introduced e-tendering which is based Uploading of Tenders on GAIL’s and Govt. on the principle of competitiveness and such Website: All tenders uploaded on GAIL’s tender procurement practices are executed in a manner website, Govt. website and GeM for wider that is transparent, fair, competitive and cost circulation. Any bidder who meets the Bid Evaluation Criteria (BEC) can download and effective. The threshold value of e-tendering has participate. Ensures transparency and equal been reduced to Rs. 2 Lakhs from existing Rs. 7 opportunity to all the eligible bidder. Lakhs. This process also contributes towards saving of paper and is a green initiative of the Uploading of General Conditions of Contract organization. Further, in order to ease the process on Website of GAIL and Non Inclusion in Tender of submission of CPBG, GAIL has introduced the Documents: To minimize the consumption of option of submitting the same through Online paper in terms of the size/volume of tenders/bids. Banking. All our tenders are hosted on our • GCC will be available on GAIL’s tender website. website which is available in public domain and E-Tendering : Secure platform for sending & whosoever is interested can participate in those receiving tenders by electronic means. The tenders without even visiting the tender issuing threshold value of E-Tendering has been lowered site. GAIL has also done away with the requirement to INR 2 Lakhs of publishing the same in the newspapers. Implementation of SAP: SAP allows all In order to reduce the size / volume of a tender transactions & reviews of various business document and reduction in the use of paper, a activities on one platform. standard document GCC is already available on Model Instructions to Bidders (ITB) for all GAIL’s tender website, as a part of Digital initiative Tenders : Bring uniformity in tendering across all

169 Energizing Growth Energizing Possibilities work centers of GAIL and also facilitate bidders in Bill Watch System: Helps in tracking Vendors bills submitting their bid. and ensuring timely payment to them. Vendors can keep watch on their bill & know the status. Document Transmittal System: For signing and countersigning of the bulky contract documents Review of CPBG in Work Contracts & Time Period in Projects. Submission of Security Deposit/ for Submission of CPBG Contract Performance Security & EMD through CPBG in work contracts modified as 5% initially Online Bank transaction to facilitate bidders. & deduction of remaining 5% from Running Qualification of Indian Bidder based on Bills. Time period of submission of CPBG has Experience of Foreign Supporting Company: To rationalized. boost Make in India & enhance participation of Measures taken in Pipeline Laying Contracts Indian bidders, policy to qualify the Indian bidder based on experience of foreign supporting Mobilization advance in two instalments of 5% company introduced. each. Rate of interest reduced to MCLR for one year charged by SBI plus 2.0% p.a. on reducing Verification & Certification of Documents balance basis. Release of 70% Running bill About the Bid Evaluation Criteria: Provision of payment within a period of 07 days. Extended authentication of BEC documents by empanelled stay compensation to the contractor. third party agency has been introduced. Methodology for Transaction on Trade Relaxation Norms for Startup : Prior turnover & Receivable Discounting System (TReDS) experience criteria relaxed for all Startups in the procurement of goods/works/services. TReDS addresses challenges faced by MSMEs to maintain their working capital due to delayed Bid Capacity of Pipeline Projects & CGD Projects payments from buyers . TReDS is an online To avoid over booking of contractors and timely electronic institutional mechanism for financing execution of projects of national important .Bidder of trade receivables of MSMEs. GAIL is already whose available bid capacity is not optimum to registered on all the three TReDS platforms. take up the GAIL’s work shall be rejected. Vendor Feedback Portal: For any organization to Procurement through GeM : All the items/ grow, feedback from stakeholders is important. To services available on GeM are being procured capture the feedback of suppliers and contractors through GeM only. Efforts are being made to in an effective way, a Vendor Feedback portal bring all the items/ services of GAIL on GeM. Till launched. date GAIL has procured more than Rs. 130 crores through GeM. Vendor Grievance Portal: To capture the grievances of suppliers and contractors have B. Post –Award Stage been developed which is known as ‘Samadhan’. Kick Off Meeting: After award of contract, EIC Health Monitoring of Contracts: Monthly Health organises a kickoff meeting with the Contractor. monitoring of contracts implemented to ensure Aspects covered during the Kick off meeting contracts managed and executed with the includes signing of agreement, submission of CPS, satisfaction of stakeholders. It includes various Schedule for submission / approval of drawing/ contract management aspects including claims, document, work schedule and sub-milestones, deviations, amendments, and issues/disputes etc. etc. Reports in prescribed format are to be submitted on a monthly basis to Management.

170 GAIL Sustainability Report 2020-21

Quarterly Closure of Contracts: Implemented resolution of the dispute(s) and communicate the in GAIL to resolve all the issues on quarterly view of each party to the other(s). basis. To ensure that contracts are managed and Revised Dispute Resolution Mechanism Clause executed with satisfaction of all the stakeholders GAIL simplifi ed its Dispute Resolution Mechanism & resulting in ease in contract closure. provisions. The party invoking the Arbitration have Pre-Dispute Resolution (Samadhan) the option to either opt for Ad-hoc Arbitration or Mechanism: During execution of contracts, Institutionalized Arbitration. Dispute(s)/issue(s) disputes arise with Contractors due to lack of involving claims below Rs 25 lakhs and above Rs clarity in contracts, diff erent interpretations etc. 25 crores. To strengthen the relations suppliers, Samadhan Mechanism was developed so the procedure for vendor performance evaluation for no. of disputes turning into arbitrations / legal suppliers was reviewed and concept of issuance disputes can be minimized. of yellow card (watch list) has been introduced instead of Red Card (Holiday) provision. Settlement Advisory Committee (SAC): The issues/disputes are mutually resolved within a Contract Management Document (COMAND): reasonable time, through SAC. SAC consist of For better contract management, COMAND was Conciliators who are persons of unquestionable launched for EICs containing the various aspects integrity and good public standing. Settlement and procedures for a better contract execution. Advisory Committee facilitate voluntary

171 Energizing Growth Energizing Possibilities

ÆÆ Shri A.K. Tiwari, Director (Finance) visited GAIL-Varanasi on 6th & 7th March, 2020. He was welcomed by CGM (Construction) Varanasi, Shri S.N. Yadav along with other Senior Officials. On 6th March 2020 he inaugurated the Finance Executive Meet and addressed to Finance-HODs participated from various sites. Director (Finance) expressed his views on the Financial, Taxation and Accounting related issues and also informed about the latest development in the Company. He also stressed upon Cost Optimization and ideas to improve the profitability of the Company with “Cost Optimization Culture". He also advised to be vigilant about the developments in their surroundings, maintain good relations with their juniors, peers and brainstorm on important issues at site level, before seeking Corporate Office intervention. Director (Finance) also visited GAIL Varanasi office for review of CGD & JHBDPL ac​​​​​tivities. CGM (Const.) Varanasi briefed about the progress of CGD and JHBDPL Sector. A presentation on the various activities of CGD business was given in the meeting. He advised to implement efficient billing and collection system for CGD. During his review, Director (Finance) appreciated the team Varanasi CGD for their dedication and hard work under challenging circumstances. Director (Finance) also Inaugurated GAIL's 8Th CNG Station at Pandeypur Varanasi.

172 GAIL Sustainability Report 2020-21

Our Efforts Towards Tackling 16 COVID-19 Pandemic

Indian Robin Location: Vijaipur

173 Our Eff orts Towards Tackling COVID-19 Pandemic

Business operations were impacted by COVID-19 and conducting meeting through virtual pandemic in FY20-21, not only in GAIL but across platforms all the companies globally. In the beginning 6. Extensive usage of E-Note Sheet System for of FY20-21, national lockdown was imposed, approvals and release of payments to vendors/ when mainly essential services were operated, service providers utilizing electronics means particularly during the fi rst quarter of FY 2020- for receipt of invoices/bills and other relevant 21. Though, subsequently restrictions were eased details, etc. out slowly, normal business operations remained a distant achievement. 7. Arrangement of COVID-19 testing and vaccination camps for all the employees Despite the above challenges, GAIL O&M has including outsourced staff maintained uninterrupted operations of its pipelines, plants and other facilities and delivery of 8. Establishment of COVID-19 control room for essential products such as Natural Gas (NG), PNG, employees and their family residing in NCR CNG, LPG & Other Hydrocarbons and Polymers to facilitate and expedite logistic support for (for PPE kits manufacturing) to the customers. To their treatment including tie up with hospitals ensure the above, various measures and eff orts for beds, procurement and distribution of were undertaken to combat and tackle COVID-19 oxygen concentrators, oxygen cylinders and situation at O&M sites, which were: their fi llings 1. Strict Implementation of Access Control to 9. Support through CSR means local operational facilities and restriction of entry administration for combating COVID-19 to only authorized personnel spread among the communities in the vicinity of GAIL’s operational areas 2. Strict Visitor Management with compulsory and contactless scanning of all the visitors to 10. Strict implementation of various guidelines GAIL premises issued from time to time by the Government of India, State governments, District and local 3. Periodic Sanitization of plant premises administration on COVID-19 pandemics and offi ce complexes including residential townships Prioritizing health of GAIL employees, we implemented the following mentioned actions 4. Allowing work from home for personnel as immediately: per requirement 1. Tie-up with Apollo Group of Hospitals for the 5. Extensive usage of digital technologies Stay I @Home services under Project Kavach

174 GAIL Sustainability Report 2020-21

for GAIL employees to combat COVID-19 in and Warli. To reinforce information about the GAIL pandemic, Khushiyon Ka Pitara, a child-friendly 2. A dedicated Task Force in GAIL has been kit that educates youngsters on COVID-19 and formed at Corporate Offi ce to coordinate all other infectious diseases, was created as part of the matters relating to the management of the initiative. the pandemic across GAIL All the components of the kits are designed 3. Implemented a weekly roster for employees at with a storytelling element to both educate and offi ces/plants on 50% rotational attendance reinforce knowledge through entertainment. based on work exigencies; Work From Home A total of 1,000 kits would be distributed to was granted to employees on a rotational youngsters aged 8 to 12 in Government schools basis. across Delhi NCR as part of the project. 4. To keep employees motivated to adhere GAIL’s part in the Nation’s COVID-19 to COVID-19 rules, appreciation letters for Vaccination drive around 575 COVID-19 warriors identifi ed GAIL CSR has pledged to assist in the provision of across GAIL, were prepared and sent to COVID-19 vaccine cold chain equipment. Madhya concerned work centers duly signed by the Pradesh has received 23 deep freezers (small) and concerned Functional Director/CMD one refrigerator truck, while Tripura has received 5. Nine (09) nos. of Behavior Based Safety with 16 ice lined refrigerators (small). In the presence COVID-19 webinar have been conducted, of Dr. Siddharth Shiv Jaiswal, IAS-MD, Natio, GAIL in association with GAIL Training Institute, handed over 16 units of ice coated refrigerators where employees participated in a drive for to the Tripura Government on 4 February 2021 reinforcing positive behavior enthusiastically GAIL handed over the Cold Chain Refrigerator Our Contribution to the Society in Truck to authorities from the National Health 2020-21 Mission in Bhopal on 8 March 2021. Dr. Prabhu Support for providing PPE kits at Ram Chaudhary, MP Government’s hon’ble Government Hospital, Noida Minister of Health, fl agged off the vehicle. In his remarks, the Minister thanked GAIL and stated On 2 February 2021, GAIL delivered 732 personal that this truck will be essential in progressing the protective equipment (PPE) kits to the Gautam COVID-19 Vaccination campaign. Buddh Nagar Government Hospital in Noida. All the essential sanitization and social distancing Distribution of Pulse-Oximeters in Karaikal standards were followed while providing the PPE district kits. The event was graced by Sh. Surendar Singh GAIL Karaikal procured 220 Pulse Oximeters for Nagar, Hon’ble MP & Panel of Vice-Chairman the benefi t of the public in Karaikal District, in (Rajya Sabha). Dr Deepak Ohri Ji, CMO (Noida), Dr response to the District Collector’s request to Sanjeev Manglik Ji, ACMO, staff of District hospital bolster the District’s Public Health Emergency and media were also present. Response. On 30 September 2020, Shri. N Fighting COVID-19 indigenously Selvaraju, General Manager (O&M) and OIC, In the fi ght against COVID-19, GAIL has partnered Carvery Basin, presented the Pulse-Oximeters to with Sudhaaya Dance Foundation and traditional the District Collector. Karaikal’s District Collector artists from indigenous and tribal groups, utilizing has expressed his dissatisfaction with the current the narrative power of art forms such as Gond situation.

175 Energizing Growth Energizing Possibilities

In the current scenario of COVID-19 pandemic, 8. Distribution of masks, sanitizers and PPE kits awareness sessions and multiple motivational 9. In-house preparation of sanitizers and No- programs were conducted with proper protocols Touch Sanitizer Dispenser for the employees and their family members at different GAIL sites in FY20-21. Initiatives 10. Mass sampling camps with District covered subjects such as general awareness and administration coordination preventive measures of COVID-19 mainly along 11. Visitors permitted after RAT, RT-PCR test and with psychological effects and disturbance due health risk assessment to the pandemic, mental wellbeing, etc. Also, 12. Considering COVID-19 Safety, Thermal medical surveillance is carried out to assess the Scanning is done by all the employees on a health of the employees for this year. We offer daily basis. Apart from Temperature Scanning medical facilities and service at the GAIL sites every day, employees may check their Oxygen to handle the emergencies in the pandemic level by a Pulse Oximeter, which has been situation. kept in the OHC/ HR department COVID-19 related health initiatives at various 13. Sanitization of offices and vehicles has sites of GAIL: also been done regularly, considering 1. COVID-19 health risk assessment to all the pandemic situations of COVID-19 at contract employees and vendors coming community level. from outside 14. Allowing work for homes to the employees 2. Awareness on PPE, social distancing and in order to maintain social distancing at frequent hand washing to all the contract workplace. workers and vendors 15. Allowing staggered timings to avoid 3. Maintaining the highest degree of hygiene at crowding. OHC with all precautionary safety measures 16. Introduction of quarantine leave and special for prevention of COVID-19 casual leave for COVID-19. 4. Maintaining Contact tracing, Testing and 17. Treatment of the period away from the Quarantine place of posting as work for home during 5. Developing isolation facility in JP Kunj and nationwide lockdown. Dhanwantri Hospital and Apollo Hospital kit 18. Tie-ups with leading hospitals for providing arrangement treatment. 6. Introduction of e-prescription and telemedicine 7. Mass fogging and sanitization and Thermal scanning at all the entry points

176 Performance and 17 Standards

Elephant Creeper Location: Usar Performance Snapshot

Material Consumption Unit 2018-19 2019-20 2020-21

NG Processed MMSCM 24,408 19,647.82 17,499

NG to Product MMSCM 1,769 1,855.87 1,807

Lean NG to Pipeline MMSCM 21,383 16,577 14,533

Material Consumption Unit 2018-19 2019-20 2020-21

Alum MT 413.42 418.28 497.66

Chlorine MT 2.81 2.17 3.12

Lube oil and grease MT 389.14 207.39 175.66

Mercaptan MT 21.37 17.91 20.9

Methanol MT 111.84 171.01 308.84

Other chemicals and catalysts MT 6533.64 7456.55 7929.89

Sulphuric Acid MT 202.77 364.96 249.56

Water treatment chemicals MT 9034.72 9552.65 10993.32

Packaging Material MT 4038 4100 4231

Total Associated Material MT 16709.89 18190.92 20178.95

Recycled Material MT 16.8 17.16 12.1

Energy Consumption* (GJ) 2018-19 2019-20 2020-21

Direct Energy 5,29,56,206 5,31,72,066 48,652,359

Indirect Energy 17,41,141 17,00,595 1,929,828

301-1, 301-2, 302-1

178 GAIL Sustainability Report 2020-21

Energy Consumption* (GJ) 2018-19 2019-20 2020-21

Renewable Energy 1,28,738 95,903 81,049

Energy from NG Flaring 8,43,620 8,83,787 9,24,846

Energy from LPG Flaring 5,987 16,064 18,201

Energy from NG Venting 5,74,962 18,57,622 4,22,113

Energy from LPG Venting 2,740 2,430 659

Total Energy Consumption 5,62,53,394 5,77,28,467 5,20,29,055

*Energy calculation as per fuel quantity reported from various sites . Indirect energy is from grid electricity only. No other form of energy is purchased.

Energy Savings (GJ) 2018-19 2019-20 2020-21

Diesel saved 24.63 329.74 281.02

Electricity saved ( GJ ) 649.06 21139.11 8148.54

NG saved (GJ) 96311.17 215184.17 381738.0

Total energy saving 110227.45 236478.80 390167.56

Electricity Sold* ( GJ ) 2018-19 2019-20 2020-21

Electricity sold 12498.96 29847.79 18775.97

*No other form of energy is sold.

Direct Energy Consumption Sources (GJ) 2018-19 2019-20 2020-21

Diesel 15,090 17,042 13,368

Natural Gas 3,93,21,635 3,86,17,623 33,787,609

Residual Fuel 1,36,16,537 1,45,37,400 14,851,382

Total Direct Energy 5,29,56,206 5,31,72,066 48,652,359

Total Energy Intensity (Total Energy 20 22 16.6 Consumption of production plants/ total production of LHC+PC)

Renewable Energy Generation (GJ) 2018-19 2019-20 2020-21

Wind 6,58,924 5,98,938 513,559

302-1, 302-3, 302-4, 302-2

179 Energizing Growth Energizing Possibilities

Renewable Energy Generation (GJ) 2018-19 2019-20 2020-21

Solar 52,080 30,348 31,318

Total Renewable Energy 7,11,004 6,29,286 544,877

Air Emissions* (Tons/Annum) 2018-19 2019-20 2020-21

SPM 391 314 291

NOx 1,800 1,350 1,367

CO 1,810 1,639 241

SOx 276 294 201

VOC 63 72 70

R-134a 278 451 507

*Data Source: Exhaust Monitoring Report, Environment test report monthly data, SPCB reports. All the relevant air emissions are disclosed per process emissions and SPCB/CPCB regulatory requirements.

ODS Gas Consumption 2018-19 2019-20 2020-21

R22 (Kg/Annum) 3,481 2,727 2,846

GHG Emission* (tCO2e) 2018-19 2019-20 2020-21 Scope 1 Emissions 34,24,266 39,56,930 32,81,058

Scope 2 Emissions 3,96,616 3,87,358 419,125

Scope 3 Emissions 989 1070 1,479

Total GHG Emissions 38,20,883 43,45,358 37,01,662

GHG Intensity (GHG Emissions (Scope 1 & 51 60 65.2

Scope 2) in tCO2e/ turnover in INR crore)

*We have used the Emission Factors of Central Electricity Authority (CEA), India and IPCC Guidelines for National Greenhouse Gas Inventories, 2006 Greenhouse Gas Inventories for the estimation of direct and indirect emissions from scope 1 and scope 2. Methane emissions are included in Scope-1 emissions. Scope 3 emission includes CO2 emission related to business travels. Scope 3 emissions are reported by following sites: Manasrampura, Vijaipur, Vizag, Pata, Jamnagar, Benguluru, Khrea, Cherallapally.

GHG savings (tCO2 Equivalent ) 2018-19 2019-20 2020-21

Diesel 73.37 24.43 20.84

Electricity 2,813.64 4,862.08 1,788.11

NG savings 5,427.64 12,071.83 21,415.00

Total GHG savings 8,314.65 16,958.34 23,224.62

305-1, 305-2, 305-3, 305-4, 305-5, 305-6, 305-7

180 GAIL Sustainability Report 2020-21

Water Performance (million m3) 2018-19 2019-20 2020-21

Total water consumption 25.3 26.2 23.1

Total waste water generated 1.7 2.34 2.2

Total waste water discharged 1.2 1.6 1.5

Water recycled /reused 0.5 0.8 0.88

Water Consumption by Sources (Parameter) 2018-19 2019-20 2020-21 million m3

Municipal water supplies 0.88 0.47 1.5 (or from other water utilities)

Fresh surface water (lake, rivers, etc.) 24.16 25.40 21.3

Fresh groundwater 0.28 0.34 0.3

Total water withdrawal from all areas with 2018-19 2019-20 2020-21 water stress (Gandhar, Jamnagar, Jhabua,) (million m3)

Groundwater 0.02 0.03 0.02

Municipal water supply 0.00 0.00 1.06

Surface water (river, sea, lake, stream) 1.06 1.33 0.00

Total water consumption 1.08 1.36 1.08

*At these sites all the waste water generated is recycled . No waste water is discharged outside plant boundary.

Waste Generation 2018-19 2019-20 2020-21

Hazardous

Basket filter waste (MT) 499.88 214.7 2.57

Bio-medical waste (MT) 1.00969 0.57 0.25

Empty drums (MT) 9343 6855 7557

ETP Sludge (MT) 0 0 0

E-waste (MT) 20.927 94.48 13.44

Oily sludge (Ltr) 3114.67 1906 3670

303-1, 303-2, 303-3, 303-3, 303-4, 303-5, 306-1, 306-2, 306-3, 306-4, 306-5

181 Energizing Growth Energizing Possibilities

Waste Generation 2018-19 2019-20 2020-21

Slop Oil (Ltr) 943486.6667 590170.4 2526144

Tar (MT) 17.361 12.2 14.8

Used batteries (Nos.) 3365 1853 1585

Used lube oil (Ltr) 125328 90776.5 78148

Used oil (Ltr) 75241.12284 86643 95340

Non Hazardous

Cables (MT) 11.85 46.47 21.64

Canteen waste (MT) 18.77 532.60985 16.058

Ceramic Material (MT) 0.05 6.21 0

Metal scrap (MT) 1220.78 1248.87 667.18

Misc Waste (MT) 11.43 55.81179 193.4

Molecular Seive (MT) 5.025 189.7 115.91

Paper Consumption (MT) 44950.4 23093.14 19832.69

Plastic scrap (MT) 5.44 40.2 134.73

Silica Gel (MT) 16.51 75.5 51.27

Spent Alumina (MT) 1367.33 1135 1237.3

Tyre (Nos) 228.23 0 466

Used bag filters (Nos) 3896.15 3349 4087

Used consumables (MT) 1.03 1.14 0.39

Wooden scrap (MT) 416.04 568.55 263.88

2018-19 2019-20 2020-21 Type of waste disposal Liquid Solid (MT) Liquid Solid (MT) Liquid Solid (MT) (Litres) (Litres) (Litres)

Incineration 0.00 3488.00 0.00 2157.48 0.00 4003.28

Landfill 0.00 2.86 0.00 127.10 0.00 216.05

Onsite Storage 7077.00 129.00 7860.00 22.60 2360.00 105.67

306-4, 306-5

182 GAIL Sustainability Report 2020-21

2018-19 2019-20 2020-21 Type of waste disposal Liquid Solid (MT) Liquid Solid (MT) Liquid Solid (MT) (Litres) (Litres) (Litres)

Recycle 6597657.50 10718.00 759689.40 3169.81 2697272.00 6191.89

Disposal (FY 20-21) Hazardous Non-hazardous Incineration (MT) 3685.01 318.27 Landfill (MT) 0.05 216 Onsite Storage Liquid (Litres) 2360 0 Solid (MT) 51.65 54.02 Recycling Liquid (litres) 2697272 0 Solid (MT) 2706.95 3484.94

Applicable State/Central regulations are followed for onsite storage and disposal of waste. Some of the wastes (battery, tyres etc) are monitored in numbers at site/offices and converted in MT by average weight of the material.

Environmental Expenditure (INR million) 2018-19 2019-20 2020-21

Treatment and disposal of waste 43 21.54 69.79

Depreciation and maintenance cost of equipment 60 31.7 37.68 used in pollution control

External services for environmental management 13 18.57 7.33

External Certification of management system 2 3.07 1.05

Personnel for general environmental management 56 72.6 71.94 activities

Extra expenditure for installing cleaner 18 14.85 101.72 technologies

Insurance for environmental liability 53 53.55 41.93

Other Environmental Costs 28 32.5 33.64

Total Environmental Expenditure 273 248.38 365.07

Environmental Fines 0 0 0

Cost of Total Energy (Particulars) (INR crore) 2018-19 2019-20 2020-21

Power Charges 356.34 367.92 412.49

403-1, 403-2, 403-3, 403-4, 403-5, 403-6, 403-7, 403-8, 403-9, 403-10

183 Energizing Growth Energizing Possibilities

Cost of Total Energy (Particulars) (INR crore) 2018-19 2019-20 2020-21

Gas used as fuel 2283.19 2107.63 1,280.84

Water Charges 14.80 19.68 17.69

Total Cost 2663.33 2495.23 1711.02

Health & Safety of Permanent Employees Unit 2018-19 2019-20 2020-21

Management representatives in safety Numbers 330 293 264 committees

Non-Management representatives in safety Numbers 223 215 190 committees

Near miss cases-Male Numbers 1,458 1,399 1,050

Near miss cases-Female Numbers 8 16 3

Minor injuries - Male Numbers 2 0 0

Minor injuries - Female Numbers 0 0 0

Reportable injuries - Male Numbers 0 0 0

Reportable injuries - Female Numbers 0 0 0

Lost days due to reportable injuries - Male Numbers 0 0 0

Lost days due to reportable injuries - Female Numbers 0 0 0

Fatalities – Male Numbers 0 0 0

Fatalities – Female Numbers 0 0 0

First aid cases - Male Numbers 9 42 17

First aid cases - Female Numbers 0 0 0

Man-Hours worked -Male Million-man- 6.4 6.09 5.7 hours

Man-Hours worked -Female Million-man- 0.3 0.28 0.3 hours

Occupational diseases–employee - Male Numbers 0 0 0

Occupational diseases – employee - Female Numbers 0 0 0

403-1, 403-2, 403-3, 403-4, 403-5, 403-6, 403-7, 403-8, 403-9, 403-10

184 GAIL Sustainability Report 2020-21

Health & Safety of Permanent Employees Unit 2018-19 2019-20 2020-21

LTIFR – Male Reportable 0 0 0 injuries per million-man- hours worked

LTIFR – Female Reportable 0 0 0 injuries per million-man- hours worked

Severity Rate – Total Lost Days per 0 0 0 million- man- worked

Fatality Rate – Male Fatalities per 0 0 0 million- man- hours worked

Fatality – Female Fatalities per 0 0 0 million- man- hours worked

Health & Safety of Contract Employees Unit 2018-19 2019-20 2020-21

Near miss cases – Male Numbers 531 312 215

Near miss cases – Female Numbers 0 4 4

Minor injuries – Male Numbers 15 0 0

Minor injuries – Female Numbers 0 0 0

Reportable injuries – Male Numbers 1 1 1

Reportable injuries – Female Numbers 0 0 0

Lost days due to reportable injuries – Male Numbers 18 11 16

Lost days due to reportable injuries – Female Numbers 0 0 0

Fatalities – Male Numbers 0 0 0

Fatalities – Female Numbers 0 0 0

First aid cases – Male Numbers 56 212 187

First aid cases – Female Numbers 0 0 11

403-1, 403-2, 403-3, 403-4, 403-5, 403-6, 403-7, 403-8, 403-9, 403-10

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Health & Safety of Contract Employees Unit 2018-19 2019-20 2020-21

Man-hours worked – Male Million- 23 24.2 24.3 man-hours

Man-hours worked – Female Million- 0.44 0.41 0.35 man-hours

Occupational Diseases – contract employees - Numbers 0 0 0 Male

Occupational Diseases – contract employees - Numbers 0 0 0 Female

LTIFR – Male Reportable 0.04 0.04 0.04 injuries per million- man-hours worked

LTIFR – Female Reportable 0 0 0 injuries per million- man-hours worked

Severity Rate – Total Lost days 0.7 0.45 0.7 per million- man-hours worked

Fatality Rate - Male Fatalities 0 0 0 per million- man- hours worked

Fatality Rate - Female Fatalities 0 0 0 per million- man-hours worked

Permanent Employee Distribution (Numbers) 2018-19 2019-20 2020-21

Senior Management (E7-E9) - Male 279 303 322

Senior Management (E7-E9) - Female 7 7 8

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Permanent Employee Distribution (Numbers) 2018-19 2019-20 2020-21

Middle Management (E4-E6) - Male 1,621 1680 1,707

Middle Management (E4-E6) - Female 80 85 94

Junior Management (E0-E3) - Male 1,480 1485 1,511

Junior Management (E0-E3) - Female 158 171 163

Non – Management (S0-S7) - Male 860 905 856

Non – Management (S0-S7) - Female 38 40 38

Senior Management (E7-E9) - <30 years age 0 0 0

Senior Management (E7-E9) - 30 to 50 years age 41 56 66

Senior Management (E7-E9) - > 50 years age 245 254 264

Middle Management (E4-E6) - <30 years age 1 0 1

Middle Management (E4-E6) - 30 to 50 years age 1,112 1199 1,193

Middle Management (E4-E6) - > 50 years age 588 566 607

Junior Management (E0-E3) - <30 years age 334 444 496

Junior Management (E0-E3) - 30 to 50 years age 873 781 713

Junior Management (E0-E3) - > 50 years age 431 431 465

Non – Management (S0-S7) - <30 years age 187 239 186

Non – Management (S0-S7) - 30 to 50 years age 582 580 587

Non – Management (S0-S7) - > 50 years age 129 126 121

New Employee hired during FY: Male 134 242 146

New Employee hired during FY: Female 20 33 10

*Above table includes employee data up-to senior management i.e. Head of the department or Officer-in-charge of respective department, it does not include our executives directors. GAIL does not have part-time employees.

Region-wise and Gender wise Management Non Management (Permanent Employee) FY 20-21 Male Female Male Female North 2082 189 467 26 South 217 20 73 4 West 951 40 319 15 East 244 7 33 3

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Region-wise and Gender wise Management Non Management (Permanent Employee) FY 20-21 Male Female Male Female Outside India 15

Contract Employee Distribution (Numbers) 2018-19 2019-20 2020-21 Security staff male 3,733 1,872 1,878 Security staff female 4 4 4 Regular Contract Worker - Male 10,367 11,842 12,997 Regular Contract Worker - Female 376 382 382 Total number of Apprentice - Male 1003 912 444 Total number of Apprentice - Female 165 161 101

Permanent Employee Turnover (Numbers) 2018-19 2019-20 2020-21 Employee turnover – Age <30 – Male 17 12 10 Employee turnover – Age < 30 – Female 0 1 2 Employee turnover – Age 30 to 50 years age – 13 19 10 Male Employee turnover – Age 30 to 50 years age – 2 1 1 Female Employee turnover – Age > 50 years age – Male 70 76 104 Employee turnover – Age > 50 years age – Female 5 11 8 Employee turnover – Management 88 109 104 Employee turnover – Non- Management 19 11 31 Total employee turnover rate 2.36 2.67 2.87 Voluntary employee turnover rate 0.64 0.62 0.45

Training (Hours) 2018-19 2019-20 2020-21 Management Employees (Direct) –Male 1,50,844 1,38,976 97,963 Management Employees (Direct) –Female 9,696 11,600 8,997 Non-Management Employees (Direct) –Male 35,152 33,280 34,214 Non-Management Employees (Direct) –Female 1,328 1,752 680 Contractual Labour (Operations) –Male 51,334 69,031 57,360 Contractual Labour (Operations) –Female 1,469 1,534 1,270 Permanent Employee – Physically Disabled 3,512 3,296 1,630 Total training hours GTI Noida and Jaipur 2,046,24 1,88,832 1,11,964 (Permanent and Contractual employee)

204-1, 401-2, 401-3, 403-5, 404-1, 412-1, 412-3, 403-4

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Employees Returned Work After Parental Leave Gender 2018-19 2019-20 2020-21

Number of employees entitle to parental leave Male 4,245 4,710 4,424

Female 271 307 308

Number of employees that took parental leave Male 138 136 153

Female 20 10 15

Number of employees who returned to work after Male 138 133 149 parental leave ended Female 20 15 9

Employee returned to work after parental leave Male 138 136 132 ended who were still employed 12 months after Female 20 14 9 their return

Retention rates of employees who returned to Male 100% 98.5% 99.24% work after parental leave Female 100% 70% 60.%

Procurement Highlights 2018-19 2019-20 2020-21

Total Procurement of Goods & Supplies in INR Million 86,305 50,970 72,016

Total Procurement of Goods & Supplies from Local Suppliers 79,220 47,882 67,692 in INR Million

% of new suppliers that has been screened through 100 100 100 Environmental Criteria

% of new suppliers that has been screened through Labour 100 100 100 Practice Criteria

% of new suppliers that has been screened through Human 100 100 100 Rights Criteria

% of new suppliers that has been screened through Criteria 100 100 100 for impacts on Society

% of suppliers identified having significant actual & potential 0 0 0 negative impacts on society.

% of suppliers identified having significant actual & potential 0 0 0 negative impacts on society with which relationship has been terminated

204-1, 308-1, 308-2, 414-1, 414-2, 401-3

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Independent Assurance Statement Introduction GAIL (India) Limited {“GAIL”} engaged Emergent Ventures India Pvt. Ltd. (“EVI”) for carrying out an independent assurance of their Sustainability Report (“Report”) for the reporting period from 1st April 2020 to 31st March 2021. The assurance has been conducted in accordance with the requirements of Assurance Standard AA1000AS v3 and GRI Standards including the Oil and Gas Sector Disclosures (OGSD). The facilities covered for this assurance are GAIL’s Gas Processing units at five locations (Pata, Vijaipur, Vaghodia, Gandhar, Usar), one Petrochemical Plant at Pata, Natural Gas Compressor stations (Hazira, Vaghodia, Jhabua, Khera, Vijaipur, Dibiyapur, Kailaras & Chainsa), LPG pumping / receiving stations (Loni, Mansharampura, Nasirabad, Abu Road, Samakhiali, Jamnagar, Kandla, Vizag, G Konduru and Cherlappali), Regional pipeline offices at NCR, Baroda, Mumbai, Puducherry, Rajahmundry, Agartala and DBPL, office buildings at Corporate office New Delhi, GAIL Training Institute (GTI) at Noida & Jaipur and Offices at Jubilee Tower, Info-Hub at Noida, Zonal Marketing offices. Limitations Assurance is subject to no physical verification of inventory of material consumed, waste generated, emissions and effluents etc. Assurance relied solely on the documentation maintained and provided by the company. The scope of assurance does not cover the statements in the Report that describe company’s approach, strategy, aim, expectation, aspiration or beliefs or intentions. Independence The verification has been carried out by experts from environment & energy management, climate change and sustainability areas. No member of the verifier team is involved in the preparation of the Report for the reporting period under this assurance. GAIL’s responsibility GAIL is responsible for preparing the Report in accordance with GRI Standards and for maintaining effective internal controls over the data and information disclosed. Verifier’s responsibility In performing the assurance activities, verifier’s responsibility is to the management of GAIL only in accordance with the terms of reference agreed between EVI and GAIL. EVI do not therefore accept or assume any responsibility for any other purpose or to any other person or organization. The assurance statement should not be taken as a basis for interpreting the GAIL’s overall performance. Scope and level of assurance EVI has been engaged to provide Moderate Level Type 2 Assurance for the following: »» Adherence to the principles of inclusivity, materiality, responsiveness and impact laid out in AA1000AS v3

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»» Adherence to the principles of accuracy, balance, clarity, comparability, reliability and timelines laid out in the “In Accordance- Comprehensive” reporting requirements of GRI standards. »» Adherence to General disclosures and Topic specific disclosures for “In Accordance- Comprehensive” reporting requirements of GRI standards. Activities undertaken A number of activities have been undertaken for this assurance: a. Review of the Report to check alignment of reported data under respective economic, environment & social topics mentioned in GRI Standards. b. Review (sample check) of the data provided in the Report and related worksheets; c. Review (sample check) of data monitoring, recording and reporting process including other internal processes and controls; d. Site visits / Video conferencing with Gas Processing unit and Petrochemical Plant at Pata, Gas Processing unit and Compressor station at Vijaipur and Vaghodia, Gas Processing unit at Gandhar, Natural Gas Compressor station at Chainsa, LPG pumping / receiving station at G Konduru, Corporate office New Delhi, Jubilee Tower & Info-Hub at Noida, and Chandigarh Zonal Marketing office. e. Identify gaps on data monitoring, recording and reporting process and review of responses. Conclusion Based on the Moderate Level Type 2 Assurance procedures conducted and evidence obtained, nothing has come to our attention that causes us to believe that, in all material aspects the GAIL’s Sustainability Report is not in conformance with the reporting requirements of GRI Standards and AA1000AS v3. The report meets the requirement of reporting as specified by GRI Standards "In Accordance – Comprehensive” Option. Observations and Recommendations

»» Principle of Inclusivity: GAIL has applied the principle of inclusivity in engaging with its stakeholders. Different departments engage regularly with their relevant stakeholders through multiple engagement channels. »» Principle of Materiality: GAIL has followed a structured process of materiality determination to report key material issues. »» Principle of Responsiveness: GAIL has applied the principle of responsiveness with respect to its stakeholders. Company has well defined system for responding to any concern raised by key stakeholders. »» Principle of Impact: GAIL has identified, measured and disclosed the impact related with some of the key environmental, social and governance topics.

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Without affecting the overall conclusions on the Report, the following recommendations are made: »» GAIL may set site specific targets on sustainability topics like water, waste etc. and develop roadmaps for achieving long term goals identified. »» GAIL may also plan on setting Science based targets (SBT) for emission reduction. »» GAIL may plan on taking up initiatives to evaluate its internal carbon price. Putting a price on carbon will help in channelizing investments towards low carbon technology. »» GAIL may consider undertaking climate scenario analysis and risk assessment as per leading protocols such as IPCC, TCFD etc. which can further help in the identification and mitigation of climate related risks. »» GAIL may develop software for detailed analytics on critical risks monitoring and for prediction of possible risk actualization in advance. »» GAIL may develop a matrix to identify and monitor key suppliers with critical environment and social risks. »» Energy efficiency study of the data centers may be conducted to understand the amount of energy used by the center and scope for improvements. »» GAIL may carry out third party studies on biodiversity and related aspects including the review of IUCN List species and national conservation list species present in its area of operations. »» GAIL may conduct life cycle assessment of its products which will help in identifying critical products at risk and its related environmental impacts. »» GAIL may plan on incorporating a process to keep a track on the growth and survival rate of trees planted at site. Geo tagging of trees may be implemented. »» GAIL may take initiatives to conduct awareness and knowledge sessions on sustainability related aspects like energy, emissions etc. across its supply chain. »» GAIL may develop guidelines to standardize the process of calculation for sustainability parameters like energy savings, rainwater harvesting, etc. This includes selection of valid assumptions and base line for reporting. »» Data categorization and reporting may be standardized across GAIL. It may be ensured that there is clarity is reporting data under each indicator. »» Training may be conducted for employees on base lines and calculation methodology so that sustainability data is consistent across all sites. Awareness level of onsite personnel towards updated GRI standard reporting requirements may be further enhanced through regular training. For Emergent Ventures India Private Ltd.

Atul Sanghal Business Head – Sustainability & Climate Change Emergent Ventures India Private Ltd. Magnum Tower-1, 8th Floor Sector – 58, Golf Course Extension Road, Gurugram – 122001, Haryana, India Date: 16/08/2021

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Annexures List of policies and websitelinks

GAIL Policy Weblink

Environment

Heath, Safety and Environment Policy https://www.gailonline.com/pdf/others/ CorporateHSEPolicy.pdf

Sustainability Policy https://www.gailonline.com/pdf/Sustainability/ Sustainability%20Policy10-02-2020.pdf

Social

CSR Policy https://gailonline.com/pdf/CSR/final_policy2010.pdf

Policy for Prevention, Prohibition and https://www.gailonline.com/pdf/others/Sexual%20 Redressal of sexual harassment of Women Harassment%20of%20Women%20at%20Work%20 at workplace Place_Circular_5.2.2018-new.pdf

Governance

Whistle Blower Policy https://www.gailonline.com/pdf/others/Circular_ Whistle%20Blower%20Policy_12.02.2019-english.pdf

Fraud Prevention Policy https://www.gailonline.com/pdf/others/Fraud%20 Prevention%20Policy-%20Gail.pdf

Procedure For Evaluation of Performance https://www.gailonline.com/pdf/others/Annexure-I.pdf of Vendors / Suppliers / Contractors / Consultants

Procedure For Action In Case Corrupt https://www.gailonline.com/pdf/others/Annexure-II- Fraudulent Collusive Coercive Practices updated.pdf

Dividend Distribution Policy https://www.gailonline.com/pdf/InvestorsZone/ GAIL%20Dividend%20Distribution%20Policy.pdf

Policy on Diversity of Board https://www.gailonline.com/pdf/InvestorsZone/ Policy%20on%20Diversity%20of%20Board.pdf

GAIL Material Subsidiary Policy https://www.gailonline.com/pdf/InvestorsZone/ GAIL%20Material%20Subsidiary%20policy%20%20 Final%202019.pdf

GAIL Related Party Transaction Policy https://www.gailonline.com/pdf/InvestorsZone/ Revised%20RPT%20Policy.pdf

GAIL Policy for Determination of Materiality https://www.gailonline.com/pdf/InvestorsZone/GAIL%20 and Disclosure Policy%20for%20Determination%20of%20Materiality%20 and%20Disclosure%20-Amended%20as.pdf

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GAIL Policy Weblink

Principles of fair disclosure https://gailonline.com/pdf/InvestorsZone/GAIL- Principles-of-Fair-Disclosures.pdf

Code of conduct to regulate, monitor and https://gailonline.com/pdf/InvestorsZone/GAIL- report, monitor and report trading by Insider%20Trading%20Code%202018-10.04.2019.pdf insiders-Insider Trading code

Quality Policy https://www.gailonline.com/pdf/others/QUALITY%20 POLICY.PDF

ISO Quality Policy 9001:2015 https://www.gailonline.com/pdf/others/CO_O&M_ ISO_2019.pdf

Risk Management Policy https://www.gailonline.com/pdf/others/ RiskManagementPolicyRev4.0.pdf

Information Security Policy https://www.gailonline.com/pdf/others/Information- Security-Policy-Statement-12-feb-21.pdf

Document Preservation Policy https://www.gailonline.com/pdf/others/Document%20 Preservation%20%20Policy.pdf

Grievance redressal mechanism and website links

Stakeholders Content Website Link

Vendor/Suppliers Vendor Grievance https://gailebank.gail.co.in/grievance/ welcome.aspx

Vendors/Suppliers Vendor/Contractor Feedback https://gailebank.gail.co.in/ Form vendorfeedback/Login.aspx

Customers CRM: Customer Relationship https://ecrm.gail.co.in/icss_b2b/init. Management: do?confi guration.xcm=gail_lhc

All (Public/ Vigilance Complaint https://gailebank.gail.co.in/vigilance/ Community) login.asp

All (Public/ RTI https://www.gailonline.com/RTI.html Community)

All (Public/ Centralized Public Grievance https://pgportal.gov.in/ Community) Redressal and Monitoring System (CPGRAMS)

194 GRI Content Index

For the GRI Content Index Service, GRI Services reviewed that the GRI content index is clearly presented and the references for all disclosures included align with the appropriate sections in the body of the report

Omission GRI Standard Disclosure Report Section Page No Reason Explanation GRI 101: Foundation 2016 102-1 Name of the organization 32 102-2 Activities, brands, products, & services 37 102-3 Location of headquarters 36 102-4 Location of operations 37 102-5 Ownership and legal form 36 102-6 Markets served 8 37, 64, 80, 102-7 Scale of the organization 140 Information on employees and other 32, 33, 140, 102-8 workers 187 102-9 Supply chain 24, 25, 80 GRI 102: General Signifi cant changes to the organization 37, 40, 41, 102-10 Disclosures 2016 and its supply chain 79, 80, 165 102-11 Precautionary Principle or approach 54 59, 81, 82, 102-12 External Initiatives 87, 88, 90, 103, 104, 107 102-13 Membership of associations 59 102-14 Statement from senior decision-maker 2, 3 102-15 Key impacts, risks, and opportunities 54-59 Values, principles, standards, and norms 102-16 47-50 of behaviour Mechanisms for advice and concerns 102-17 47-50 about ethics

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Omission GRI Standard Disclosure Report Section Page No Reason Explanation 102-18 Governance structure 44, 45, 62 102-19 Delegating authority 44, 45 Executive-level responsibility for 102-20 economic, environmental and social 44, 62 topics Consulting stakeholders on economic, 102-21 44, 68-71 environmental and social topics Composition of the highest governance 102-22 44, 45 body and its committees 102-23 Chair of the highest governance body 44 Nominating and selecting the highest 102-24 44 governance body 102-25 Conflicts of interest 46 Role of highest governance body in 102-26 45, 64, 67 setting purpose, values, and strategy Collective knowledge of highest 102-27 44 governance body Evaluating the highest governance 102-28 45 body’s performance Identifying and managing economic, 102-29 62, 71 environmental, and social impacts Effectiveness of risk management 34, 54- 102-30 processes 56,62 Review of economic, environmental, 34, 55, 56, 102-31 and social topics 62 Highest governance body’s role in 102-32 34, 62 sustainability reporting 102-33 Communicating critical concerns 53, 54, 55 Nature and total number of critical 102-34 53, 54 concerns 102-35 Remuneration policies 44, 45, 140 102-36 Process for determining remuneration 45 Stakeholders Involvement in 102-37 45 remuneration 102-38 Annual total compensation ratio 46

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Omission GRI Standard Disclosure Report Section Page No Reason Explanation Percentage increase in annual total 102-39 46 compensation ratio 102-40 List of stakeholder groups 72-74 102-41 Collective bargaining agreements 147 102-42 Identifying and selecting stakeholders 72-74 102-43 Approach to stakeholder engagement 75-76 75-76, 68, 126, 138, 102-44 Key topics and concerns raised 152, 160, 166 Entities included in the consolidated 102-45 32,34 financial statements Defining report content and topic 102-46 32,34 boundaries 102-47 List of material topics 71 102-48 Restatements of information 32 102-49 Changes in reporting 32 102-50 Reporting period 32 102-51 Date of most recent report 32 102-52 Reporting cycle 32 Contact point for questions regarding 102-53 34 the report Claims of reporting in accordance with 102-54 32 the GRI Standards 102-55 GRI content index 195-203 102-56 External assurance 190 Material Topics The material topics include Health and Safety, Operational Excellence, Stakeholder Relationship Management, Climate Change, Digital Transformation, Business growth, Asset utilization, Product and service quality, Risk management, R&D, Resource optimization,Natural capital utilization,Ethics, integrity and compliance, Data privacy and cybersecurity, Human capital management, New businesses and geographies, Energy management GRI 103: Explanation of the material topic and its Management 103-1 71, 77, 78 boundary Approach 2016

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Omission GRI Standard Disclosure Report Section Page No Reason Explanation Health and Safety Operational Excellence 29, 30, 53, Business Growth 54, 62, 80, Stakeholder Engagement and 92, 102, 103-2 Materiality Assessment 114, 126, Climate Change 138, 152, Stakeholder relationship management 160, 166 - (our people, customers, suppliers, community) Health and Safety Operational Excellence Business Growth Stakeholder Engagement and 103-3 Materiality Assessment 55, 115 Climate Change Stakeholder relationship management - (our people, customers, suppliers, community) Direct economic value generated and 201-1 17, 32, 81 distributed Financial implications and other risks 201-2 and opportunities due to climate 54-56, 116 GRI 201: Economic change Performance 2016 Defined benefit plan obligations and 201-3 140 other retirement plans Financial assistance received from 201-4 80-87 government Ratios of standard entry-level wage by 202-1 gender compared to local minimum 140 GRI 202: Market wage Presence 2016 Proportion of senior management hired 202-2 32 from the local community GRI 204: Proportion of spending on local 32, 167, Procurement 204-1 suppliers 188, 189 Practices 2016

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Omission GRI Standard Disclosure Report Section Page No Reason Explanation Operations assessed for risks related to 205-1 48 corruption GRI 205: Anti- Communication and training about 47, 48, 50, 205-2 corruption 2016 anti-corruption policies and procedures 144 Confirmed incidents of corruption and 205-3 47-48 actions taken GRI 206: Anti- Legal actions for anti-competitive competitive 206-1 behaviour, anti-trust, and monopoly 47-48 Behavior 2016 practices 301-1 Materials used by weight or volume 178 GRI 301: Materials 301-2 Recycled input materials used 178 2016 Reclaimed products and their 301-3 32, 109 packaging materials Energy consumption within the 32, 178, 302-1 organization 179 Energy consumption outside of the 302-2 32, 34, 179 GRI 302: Energy organization 2016 302-3 Energy intensity 104 302-4 Reduction of energy consumption 119 Reductions in energy requirements of 302-5 119 products and services 303-1 Water withdrawal by source 181 GRI 303: Water Water sources significantly affected by 303-2 181 2016 the withdrawal of water 303-3 Water recycled 181 Interactions with water as a shared 303-1 107-109 resource Management of water discharge-related 303-2 107-109 GRI 303: Water impacts and Effluents 2018 303-3 Water withdrawal 181 303-4 Water discharge 181 303-5 Water consumption 181 Operational sites owned, leased, GRI 304: managed in, or adjacent to, protected 304-1 102-104 Biodiversity 2016 areas and areas of high biodiversity value outside protected areas

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Omission GRI Standard Disclosure Report Section Page No Reason Explanation Significant impacts of activities, 304-2 products, and services on biodiversity Not within Not 304-3 Habitats protected or restored 10km of GAIL 102-104 Applicable site IUCN Red List species and national Not within Not 304-4 conservation list species with habitats in 10km of GAIL Applicable areas affected by operations site 305-1 Direct (Scope 1) GHG emissions 180 Energy indirect (Scope 2) GHG 305-2 180 emissions 305-3 Other indirect (Scope 3) GHG emissions 180 GRI 305: Emissions 305-4 GHG emissions intensity 180 2016 305-5 Reduction of GHG emissions 180 Emissions of ozone- depleting 305-6 180 substances (ODS) Nitrogen oxides (NOx), sulfur oxides 305-7 180 (SOx), and other significant air emissions Waste generation and significant waste- 306-1 109, 181 related impacts Management of significant waste- 306-2 109, 181 GRI 306: Waste related impacts 2020 306-3 Waste generated 181 306-4 Waste diverted from disposal 181, 182 306-5 Waste directed to disposal 181, 182 GRI 307: Non-compliance with environmental Environmental 307-1 97 laws and regulations Compliance 2016 New suppliers that were screened using GRI 308: Supplier 308-1 189 environmental criteria Environmental Negative environmental impacts in the Assessment 2016 308-2 189 supply chain and actions taken GRI 401: New employee hires and employee 401-1 187 Employment 2016 turnover

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Omission GRI Standard Disclosure Report Section Page No Reason Explanation Benefits provided to full-time 132, 401-2 employees that are not provided to 140,147, temporary or part-time employees 188 401-3 Parental leave 188 GRI 402: Labor/ Minimum notice periods regarding Management 402-1 147, 149 operational changes Relations 2016 Occupational health and safety 127, 183- 403-1 management system 185 54, 127, 128, 130, Hazard identification, risk assessment, 403-2 131, 132, and incident investigation 146, 183- 185 127, 128, 403-3 Occupational health services 183-185 Worker participation, consultation, and 128-132, 403-4 communication on occupational health 183-185 GRI 403: and safety Occupational 132-135, Health and Safety Worker training on occupational health 403-5 188, 183- 2018 and safety 185 132-135, 403-6 Promotion of worker health 183-185 Prevention and mitigation of 126, 127, 403-7 occupational health and safety impacts 132-135, directly linked by business relationships 183-185 127, 131, Workers covered by an occupational 403-8 132, 183- health and safety management system 185 403-9 Work-related injuries 183-185 403-10 Work-related ill health 183-185 Average hours of training per year per GRI 404: Training 404-1 144, 188 employee and Education Programs for upgrading employee skills 2016 404-2 142-144 and transition assistance programs

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Omission GRI Standard Disclosure Report Section Page No Reason Explanation Percentage of employees receiving 404-3 regular performance and career 142-144 development reviews Diversity of governance bodies and 44, 139, GRI 405: Diversity 405-1 employees 186,187 and Equal Ratio of basic salary and remuneration Opportunity 2016 405-2 32, 46 of women to men GRI 406: Non- Incidents of discrimination and 139, 140, Discrimination 406-1 corrective actions taken 147 2016 GRI 407: Freedom Operations and suppliers in which the of collective 407-1 right to freedom of association and 146-148 bargaining 2016 collective bargaining may be at risk GRI 408: Child Operations and suppliers at significant 408-1 146, 166 Labor 2016 risk for incidents of child labor GRI 409: Forced or Operations and suppliers at significant Compulsory Labor 409-1 risk for incidents of forced or 146 2016 compulsory labor Security personnel trained in human GRI 410: Security 410-1 rights policies or 146 Practices 2016 procedures GRI 411: Rights Incidents of violations involving rights of Indigenous 411-1 of 152, 154 Peoples 2016 indigenous peoples Operations that have been subject to 412-1 human 188 rights reviews or impact assessments Employee training on human rights GRI 412: Human 412-2 148 policies or procedures Rights Assessment 2016 Significant investment agreements and contracts 412-3 that include human rights clauses or 188 that underwent human rights screening Operations with local community GRI 413: Local 75, 76, 97, engagement, Communities 413-1 152, 153, impact assessments, and development 2016 158 programs

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Omission GRI Standard Disclosure Report Section Page No Reason Explanation Operations with significant actual and 413-2 potential 153 negative impacts on local communities New suppliers that were screened using 414-1 189 GRI 414 :Supplier social criteria Social Assessment Negative social impacts in the supply 2016 414-2 chain and 189 actions taken GRI 415: Public 415-1 Political contributions 80 Policy 2016 Assessment of the health and safety 94, 95, 96, 416-1 impacts of GRI 416: Customer 126 product and service categories Health and Safety Incidents of noncompliance concerning 2016 416-2 the health and safety impacts of 161, 126 products and services Requirements for product and service 417-1 161 information and labelling GRI 417: Incidents of noncompliance concerning Marketing and 417-2 product and service information and 161 Labelling 2016 labelling Incidents of noncompliance concerning 417-3 161 marketing communications Substantiated complaints concerning GRI 418: Customer 418-1 breaches of customer privacy and losses 161 Privacy 2016 of customer data GRI 419: Non-compliance with laws and Socioeconomic 419-1 regulations in the social and economic 97 Compliance 2016 area

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203 Energizing Growth Energizing Possibilities Linkages to Sustainability Accounting Standard Board (2018)

Report Section/ Topic Code Accounting Metric Page Chapters

Greenhouse EM-MD- Gross global Scope 1 emissions, Climate change 119 Gas Emissions 110a.1. percentage covered under emissions- limiting regulations

EM-MD Discussion of long-term and short- Climate change 119 -110a.2 term strategy or plan to manage Scope 1 emissions, emissions reduction targets, and an analysis of performance against those targets

Air Quality EM-MD- Air emissions of the following Performance 180 120a.1 pollutants: (1) NOx (excluding Snapshot N2O), (2) SOx, (3) volatile organic compounds (VOCs), and (4) particulate matter (PM)

Ecological EM-MD- Description of environmental Energy and 103 Impacts 160a.1 management policies and practices Environment for active operations -Biodiversity

EM-MD- Percentage of land owned, leased, Energy and 103 160a.2. and/or operated within areas of Environment protected conservation status or -Biodiversity endangered species habitat

EM-MD- Terrestrial acreage disturbed, Energy and 103 160a.3. percentage of impacted area restored Environment -Biodiversity

EM-MD- Number and aggregate volume of Energy and 111 160a.4. hydrocarbon spills, volume in Arctic, Environment volume in Unusually Sensitive Areas (USAs), and volume recovered

Competitive EM-MD- Total amount of monetary losses as a Operational 98 Behaviour 520a.1. result of legal proceedings associated Excellence with federal pipeline and storage regulations

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Report Section/ Topic Code Accounting Metric Page Chapters

Operational EM-MD- Number of reportable pipeline Operational 128 Safety, 540a.1 incidents, percentage significant Excellence Emergency Preparedness & Response

EM-MD- Percentage of (1) natural gas and (2) Operational 94 540a.2. hazardous liquid pipelines inspected Excellence

EM-MD- Number of (1) accident releases and Operational 94 540a.3. (2) non-accident releases (NARs) from Excellence rail transportation

EM-MD- Discussion of management systems Operational 93 540a.4. used to integrate a culture of safety Excellence and emergency preparedness throughout the value chain and throughout project lifecycles

Water EM-MD- (1) Total water withdrawn, (2) total Water sourcing, 181 Management 140a.1 water consumed, percentage of each Performance in regions with High or Extremely snapshot High Baseline Water Stress

EM-MD Number of incidents of non- Operational 97 -140a.3 compliance associated with water Excellence quality permits, standards, and regulations

Hazardous EM-RM- Amount of hazardous waste Waste Management 181 materials 150a.1 generated; percentage recycled management EM-RM- (1) Number of underground storage Operational 93 150a.2. tanks (USTs), (2) number of UST Excellence releases requiring cleanup, and (3) percentage in states with UST financial assurance funds

Workforce EM-RM- (1) Total recordable incident rate Health and Safety 184, Health & Safety 320a.1. (TRIR), (2) fatality rate, and (3) near 185 miss frequency rate (NMFR) for (a) full-time employees and (b) contract employees

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Report Section/ Topic Code Accounting Metric Page Chapters

EM-RM- Discussion of management systems Health and Safety 126 320a.2. used to integrate a culture of safety

Product EM-RM- Percentage of Renewable Volume Performance 180- Specifications 410a.1. Obligation (RVO) met through: (1) Snaphshot 181 & Clean Fuel production of renewable fuels, (2) Blends purchase of “separated” renewable identification numbers (RIN)

EM-RM- Total addressable market and share Climate change 120 410a.2. of market for advanced biofuels and associated infrastructure

Pricing EM-RM- Total amount of monetary losses as a Operational 98 Integrity & 520a.1. result of legal proceedings associated Excellence Transparency with price fixing or price manipulation

Management EM-RM- Discussion of corporate positions Governance and risk 57 of the Legal 530a.1. related to government regulations management & Regulatory and/or policy proposals that address Environment environmental and social factors affecting the industry

Critical EM-RM- Process Safety Event (PSE) rates for Operational 95 Incident Risk 540a.1. Loss of Primary Containment (LOPC) Excellence Management of greater consequence (Tier 1) and lesser consequence (Tier 2)

EM-RM- Challenges to Safety Systems indicator Operational 93 540a.2. rate Excellence

EM-RM- Discussion of measurement Operational 92 540a.3. of Operating Discipline and Excellence Management System Performance through Tier 4 Indicators

206 GAIL Sustainability Report 2020-21

Linkages with NVG SEE Principles

Principle NVG-SEE FY 2020-21 Sections No.

1 Businesses should conduct and govern themselves Corporate Governance; Risk with Ethics, Transparency, and Accountability Management

2 Businesses should provide goods and services that are Our Customers; Suppliers safe and contribute to sustainability throughout their life cycle

3 Businesses should promote the wellbeing of all Our People employees

4 Businesses should respect the interests of, and be Our Community responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalized.

5 Businesses should respect and promote human rights Our People

6 Business should respect, protect, and make efforts to Operational Excellence; restore the environment Energy and Environment

7 Businesses, when engaged in influencing public Business Growth and regulatory policy, should do so in a responsible manner

8 Businesses should support inclusive growth & Business Growth equitable development

9 Businesses should engage with and provide value Our Customers; Suppliers to their customers and consumers in a responsible manner

207 Energizing Growth Energizing Possibilities Linkages to API/IPIECA, UNGC, ISO 26000 Principles Section API/IPIECA Guidelines UNGC Principles ISO 26000:2010 Clause Governance SE 11, SE 12 Principle 10 4.3, 4.4, 6.2, 6.3.5, 6.3.6, 6.6.1, Principle 7 6.6.3, 6.6.5, 6.6.6, 7.4.3, 7.7.5 Risk Management SE11, SE12 Principle 10 4.3, 6.2.3, 6.3.5, 6.3.4 Principle 7 Stakeholder SE1, SE2, SE4, SE14, Principle 1 4.2, 4.5, 5.2, 5.3, 6.3.6-6.3.7, Engagement and SE16, HS1, HS2, HS4, Principle 6 6.3.10, 6.7.1-6.7.6, 6.8.1-6.8.3, Materiality HS14 Principle 7 7.3.2- 7.3.4, 7.5.3, 7.8 Business Growth SE4, SE5, SE7, SE13 Principle 9 6.6.1-6.6.2, 6.6.4, 6.6.6, 6.8.1– 6.8.3, 6.8.1-6.8.9 Operational E1, E2, E3, E4, E5, E6, Principle 8 4.6, 6.5.3-6.5.6, 6.6.6 Excellence E7, E8 Principle 9 Energy and E1, E2, E3, E4, E5, E6, Principle 7 6.5.1, 6.5.2, 6.5.3, 6.5.4, 6.5.5, Environment E7, E8, E9, E10, E11 Principle 8 6.5.6 Principle 9 Climate Change E1, E2, E3, E4, E5 Principle 7 6.5.5 Principle 8 Principle 9 Health and Safety HS1, HS2, HS3, HS5 Principle 6 6.4.5, 6.4.6, 6.5.3, 6.8.8 Our People SE6, SE8, SE10, SE15, Principle 1 4.5, 4.8, 5.2, 5.3, 6.3.1-6.3.8, SE16, SE17, SE18 Principle 2 6.3.10, 6.4.1,6.4.7,6.5.1-6.5.2 Principle 3 6.7.8 – 6.7.9, 6.8.1-6.8.9 Principle 4 Principle 5 Principle 6 Our Community SE1, SE2, SE3, SE4, SE5, Principle 1 5.2.1, 5.2.2, 5.2.3, 6.8.1 – 6.8.9, SE6, SE7 Principle 2 6.6.7 Our Customers HS4, SE8, SE10 Principle 1 6.7.1 – 6.7.9 Principle 2 Suppliers SE8, SE9, SE10 Principle 1 4.4, 4.5, 4.6, 4.7, 6.3.1-6.3.8, Principle 2 6.3.10, 6.6, 6.7.3, 6.7.4, 6.7.6, Principle 7 6.7.9, 6.7.1-6.7.2, 7.3.1 Principle 10 Performance E1, E2, E3, E4, E6, E7, Principle 7 4.6, 6.4.3, 6.4.4, 6.4.6, 6.5.3- Snapshot E8, E10, HS3 Principle 8 6.5.5, 6.5.8 Principle 9

208 GAIL Sustainability Report 2020-21

Linkages to Sustainable Development Goals Sustainable (SDGs) GAIL Initiatives SR Coverage Development Description (Chapters) Goals SDG 01. No End poverty GAIL Kaushal, Unnati and Sashakt Our Community poverty in all its forms, initiatives under GAIL Hriday everywhere SDG 02. Zero End hunger, »» GAIL Kaushal, Unnati and Sashakt Our Community hunger achieve food initiatives under GAIL Hriday security and improved nutrition, and promote sustainable agriculture SDG 03. Good Ensure healthy lives »» Employee engagement activities Operational health and and promote well- »» Behaviour-based safety Excellence, being for all at all Health and well-being »» HSE Management System ages Safety, Our »» COVID-19 Precautionary measures Community, Our »» GAIL Arogya initiative under Hriday people, Program Our Efforts to »» Corporate medical Cell for Regular tackle COVID-19 health check-ups SDG 04. Quality Ensure inclusive and GAIL Ujjawal, Kaushal, and Sashakt Our Community education equitable quality initiatives under GAIL Hriday education and promote lifelong learning opportunities for all SDG 05. Gender Achieve gender »» Diversity inclusion for the hiring Our Community, equality equality and process Our People empower all women »» GAIL Shashakt initiative under and girls Hriday Program SDG 06. Clean _ Ensure available »» Water Management Energy and water and and sustainable »» Waste Management Environment, management of Our Community sanitation »» GAIL Arogya initiative under Hriday water and sanitation Program for all SDG 07. _ Ensure access to »» Partnership with BHEL for Solar Energy and Affordable and affordable, reliable, based power project Environment, clean sustainable and »» Energy Management System Climate Change modern energy »» Solar Power System commissioned energy for all at »» Mumbai Pipeline Network »» Development of National Gas Grid »» Compressed biogas

209 Energizing Growth Energizing Possibilities

Sustainable (SDGs) GAIL Initiatives SR Coverage Development Description (Chapters) Goals SDG 08. Decent Promote sustained, »» GAIL’s contribution to Start-Up Energy and work and inclusive and India Environment, economic sustainable »» Transparency in Doing Business Our People, economic growth, Our Customers, growth »» Grievance Redressal Mechanism full and productive Our Suppliers, »» Workforce Management employment, and Business Growth decent work for all »» GAIL Kaushal »» Management Development Program »» Learning Management System SDG 09. Build resilient »» GAIL’s contribution to Start-Up GAIL Highlights, Industry, infrastructure, India Energy and innovation, and promote inclusive »» Digital Transformation Environment, and sustainable Our people, infrastructure »» Marketplace (GeM) and Trade industrialization, and »» Receivable Discounting System foster innovation (TReDS) for »» Procurement »» Workforce Management »» GAIL Ujjwal initiative under Hriday Program »» GreenCo Assessment of the sites »» Construction Management Plan (CMP) SDG 10. Reduce inequality »» GAIL Shashakt initiative under Our Community, Reduced within and among Hriday Our people, inequalities countries »» Program Our Suppliers, Governance »» GAIL Saksham initiative under and Risk Hriday management »» Program »» General Conditions of Contract »» Public Procurement Policy at GAIL »» GAIL Indigenization (INDEG) Group Meets »» Local procurement SDG 11. Make cities and »» SIA (Social Impact Assessment) Operational Sustainable human settlements »» GAIL CSR Initiatives to tackle Excellence cities and inclusive, safe, COVID-19 resilient communities »» Impacts and sustainable »» GAIL’s contribution to Start-Up India »» GAIL Arogya »» GAIL Unnati »» Hawa Badlo Campaign

210 GAIL Sustainability Report 2020-21

Sustainable (SDGs) GAIL Initiatives SR Coverage Development Description (Chapters) Goals SDG 12. _ Ensure sustainable »» Implementation of the rich lean Operational Responsible consumption and »» corridor Excellence, consumption production patterns »» Energy Management System Energy and Environment, and production »» Energy-saving initiatives at GAIL Climate Change sites »» and townships »» Water Management »» Waste Management »» Contribution to Start-Up India »» Total Quality Management (TQM) »» Integrated Management System (IMS) SDG 13. Climate Take urgent action »» Sustainability Policy Operational action to combat climate »» Implementation of the rich lean Excellence, change and its corridor Energy and impacts »» Environment Management Environment, System Climate Change »» Energy Management System »» Biodiversity Management »» Emission Management »» GAIL’s contribution to Start-Up India »» Combating Climate Change Risk »» Green Procurement »» Local Procurement »» State-of-art Digital Technology to measure »» the Carbon footprint »» CNG Mobile Refueling »» Afforestation projects following the Miyawaki technique »» State-of-art Digital Technology to measure »» the Carbon footprint »» Target of 1 gigawatt of renewable energy »» Coastal regulatory zone clearance SDG 14. Life _ Conserve and »» Functional excellence Framework Operational below water sustainably use the »» Biodiversity Management Excellence, oceans, seas and Energy and »» Water Management marine Environment, »» GAIL Harit initiative under Hriday resources for Climate Change, sustainable »» Program Our community development »» EIA (Environment Impact Assessment)

211 Energizing Growth Energizing Possibilities

Sustainable (SDGs) GAIL Initiatives SR Coverage Development Description (Chapters) Goals SDG 15. Life Protect, restore »» Environment Management Operational on land and promote System Excellence, _ sustainable use of »» Biodiversity Management Energy and terrestrial Environment, »» Waste Management ecosystems, Climate »» GAIL Harit initiative under Hriday sustainably Change, Program manage Our forests, combat »» Green Procurement Community, desertification, »» Local Procurement Our suppliers and halt and »» Hawa Badlo Campaign reverse land degradation, and halt biodiversity loss

SDG 16. Promote peaceful »» Ethics and Integrity Operational Peace, justice and inclusive »» Transparency in Doing Business Excellence, and strong societies for Our »» Labour Practices institutions sustainable community, »» General Conditions of Contract Our people, _ development, provide access to »» Stakeholder engagement Our suppliers, justice for all, and »» Customer satisfaction survey Governance build e_ective, and Risk management accountable and inclusive institutions at all levels

SDG 17. _ Strengthen »» GAIL’s contribution to Start-Up Stakeholder Partnerships the means of India Engagement for the goals implementation »» Partnership with TERI and and revitalize the Materiality, »» GAIL’s support to Sustainable global Climate »» Alternative Towards Affordable partnership Climate, Transportation (SATAT) initiative for sustainable Governance of GoI development and Risk »» GAIL’s Start-Up Initiative ‘Pankh’ managment »» Founding member of the Global »» Reporting Initiative (GRI) Focal Point »» India’s Sustainability & Transparency Consortium

212 Any feedback or query related to this report can be communicated to Mr. R K Mittal, CGM (SD) [email protected], Mr. S K Agarwal, GM (SD) [email protected] . Readers can also reach out to us at [email protected] to provide feedback on improving our performance and sustainability disclosures.