#IndiaAdoptsIR Edition 02 / December 2020 INTEGRATED REPORTING IN INDIA INSIGHTS TRENDS BEST PRACTICES Prologue

Disclaimer The paradigm of ‘value’ has shifted over the In this context, AICL Communications Ltd. (AICL) This publication is aimed at demystifying some years to include both tangibles and intangibles. launched its #IndiaAdoptsIR publication series key issues surrounding Integrated Reporting and creating awareness about its components, for With Environmental, Social and Governance in early 2019. This, the second edition, builds on those that wish to adopt it. AICL Communications Limited (AICL) has collated information from (ESG) considerations in evaluating business the research to gauge the scale of Integrated publicly available material, and applied its own understanding to create this document. performance becoming mainstream, corporates Reporting adoption in India while highlighting the Every care has been taken to attribute sources, and use non-IP protected information. worldwide are increasingly focusing on long-term best practices and providing recommendations This publication is purely meant for information resilience and relevance. for Indian companies to take their reporting purposes, and does not claim to be an authoritative guide to Integrated Reporting. Readers should to the next level. exercise due care and caution while implementing Integrated Reporting is one of the leading recommendations contained herein, and seek relevant professional advice. AICL assumes no frameworks which has seen a growing adoption We hope that this document serves as a handy responsibility whatsoever for any issues arising out of actions implemented on basis of this publication. across the world, by facilitating a concise yet guide for organisations to adopt Integrated The copyright of this publication is held by AICL holistic approach to reporting. Much like their Reporting in letter and spirit, and contribute Communications Limited. Its content may be reproduced, distributed or quoted with due global counterparts, Indian corporates too are more effectively to the improvement of attribution, purely for non-commercial purposes. Prior written permission must be obtained for leaning towards the framework to demonstrate reporting practices. substantial reproduction, or usage. their ability to create, preserve and grow value for © AICL Communications Limited, 2020 a diverse stakeholder base.

www.aicl.in/ir/indiaadoptsir/ 1 What’s inside?

How to navigate Index the document This is the navigation panel. Foreword: Introduction: An introduction Integrated Reporting You can use this to switch Charles Tilley Arvind Agrawal to Integrated in India to different chapters of this CEO, IIRC Founder and CEO, Reporting document. The orange colour AICL Communications Koushik Chatterjee highlights the chapter you are ED and CFO, Tata Steel currently in. Pg 02 Pg 05 Pg 07 Pg 16 You can directly access a specific chapter from this navigation bar. More information in some Analysing Indian Evaluating an Industry-wise Glossary cases are provided by way integrated reports integrated report best reports of hyperlinks in the text. Alternatively, the navigation panel will guide you to the specific links. Pg 21 Pg 22 Pg 62 Pg 63 All reports referenced in this document has been linked to their original source. Please click on the icon in the respective pages to access them.

www.aicl.in/ir/indiaadoptsir/ 2 Foreword Charles Tilley OBE CEO, International Integrated Index Reporting Council (IIRC) Now more than ever integrated reporting is social and corporate governance factors. important for organisations’ long-term success By being more transparent in their practices 02 Foreword and sustainable development. The Covid-19 and culture, organisations gain the trust of 02 Charles Tilley OBE pandemic has led to businesses across the their many different stakeholders, which in turn world prioritising the health and safety of their contributes to sustainable development and 03 Koushik Chatterjee employees, customers and local communities responsible capitalism. 05 Introduction over financial profit, radically changing I am very encouraged to see in their business models to evolve with these 07 An introduction to AICL Communications’ #IndiaAdoptsIR challenging times. Integrated Reporting publication that nearly 80 Indian companies are Businesses need to show their stakeholders now voluntarily incorporating the International 16 Integrated Reporting that they create value and report on not Framework into their business models in India just financial capital but also intellectual, and strategies. Not only does this reflect the 21 Analysing Indian environmental, manufactured and human accelerating adoption of integrated reporting Integrated Reports capitals to name a few. The International globally, but that India is making great strides in Framework helps organisations to gain leading the way to sustainable value creation in 62 Industry-wise best reports I am very encouraged to see in a holistic view of their business by providing South Asia. 63 Glossary AICL Communications’ a clear overview of all their capitals, which #IndiaAdoptsIR publication that are more wide-ranging than environmental, Best regards, nearly 80 Indian companies are Charles Tilley now voluntarily incorporating the International Framework into their business models and strategies.

www.aicl.in/ir/indiaadoptsir/ 3 Foreword Koushik Chatterjee Executive Director and Index Chief Financial Officer, Tata Steel In recent years, the world has been experiencing As a developing country, India has the aspiration a seismic shift in the geopolitical and economic to become a 5 trillion dollar economy in the 02 Foreword balance, which is going to define the global foreseeable future. However, this growth is 02 Charles Tilley OBE agenda in the future. India will play an important also targeted to be inclusive and diverse to role in this transition, and if foreign direct raise the quality of lives of the population, 03 Koushik Chatterjee investments are an indicator, the record fund conserve and optimally use natural resources, 05 Introduction flows into India at the peak of the pandemic deploy capital prudently and drive the climate reinforce the country’s attractiveness as an agenda very strongly through technology, 07 An introduction to investment destination. digital strategy and policy response. Therefore, Integrated Reporting as Indian companies grow in size and scale, As investors worldwide decisively move towards 16 Integrated Reporting the need to capture and communicate this sustainable value creation in harmony between in India sense of purpose and responsibility will be even capital, community and natural resources, more pronounced, with clear alignment with 21 Analysing Indian ‘impact investing’ is gaining strong traction with national and global priorities. In this context, Integrated Reports capital finding its way into businesses having the Integrated Reporting framework comes measurable impact on environmental, social and 62 Industry-wise best reports The purpose of the corporation as a powerful vehicle for corporates to report governance (ESG) issues. their long-term resilience and relevance story to 63 Glossary is also getting redefined, from The purpose of the corporation is also getting prospective and existing stakeholders. merely creating shareholder redefined, from merely creating shareholder While financial performance remains the value to a much broader and value to a much broader and inclusive theme bedrock of sustainability, the correlation inclusive theme of sustainable of sustainable stakeholder value. The issue of between market performance, organisational stakeholder value is now moving to the front stakeholder value. priorities and ESG considerations is occupying and centre of the Board of the corporation centre-stage. In letter and spirit, the as strategies, risks and opportunities and framework is uniquely positioned to establish integration of capital to deployment becomes linkage among these aspects and apprise the the key agenda. stakeholders holistically about the 'real value' being created.

www.aicl.in/ir/indiaadoptsir/ 4 Foreword (Contd.)

Index The publication reflects the In India, Tata Steel was one of the very first more significance with India’s growing stature in the world order with demonstrated scale and breadth and depth of Integrated companies to adopt the framework in 2016 with a view of communicating its sustained capabilities, putting the spotlight on domestic Reporting in India ever since 02 Foreword value creation through cyclical ebbs and flows corporates to align themselves with best-in-class the market regulator SEBI to a diverse stakeholder base. Since then, our global standards. 02 Charles Tilley OBE reporting practices have continuously evolved called for voluntary adoption of I congratulate AICL for putting together this first and have been received well by our investors and 03 Koushik Chatterjee the framework. This assumes even of its kind publication in India. I believe this will independent directors, and appreciated by the serve as a reliable guide for organisations in their 05 Introduction more significance with India’s regulators and other bodies. integrated reporting journey. growing stature in the world order 07 An introduction to I am pleased to write this foreword for the Integrated Reporting with demonstrated scale and second edition of #IndiaAdoptsIR. The Best regards, 16 Integrated Reporting capabilities, putting the spotlight publication reflects the breadth and depth of Koushik Chatterjee in India on domestic corporates to align Integrated Reporting in India ever since the themselves with best-in-class market regulator SEBI called for voluntary 21 Analysing Indian adoption of the framework. This assumes even Integrated Reports global standards. 62 Industry-wise best reports 63 Glossary

www.aicl.in/ir/indiaadoptsir/ 5 Introduction Arvind Agrawal Founder and CEO, AICL Communications Index We live in interesting times. While there is Reporting in India widespread uncertainty on the shape of the 02 Foreword There is a definite focus on India as a global post-pandemic world, the capital markets seem investment destination. For investors and 05 Introduction to be on steroids. The decoupling of market other stakeholders, effective disclosures play a performance with the shape of economic 07 An introduction to significant role in augmenting trust and building trajectory notwithstanding, there is increased Integrated Reporting better connect with an organisation. convergence about the significance of this 16 Integrated Reporting transient period for companies to reflect on their In the past, while there had been significant on- in India resilience and future strategy. ground actions taken by Indian corporates with regard to philanthropy, environmental practices 21 Analysing Indian Today, businesses are being increasingly and corporate governance, the strategic reporting Integrated Reports considered as social entities; responsible business of these elements had not witnessed a wide conduct is under a massive spotlight. The 62 Industry-wise best reports adoption. Companies did publish sustainability symbiotic relationship between organisations and reports, but most of them contained largely 63 Glossary their stakeholders is thus more relevant today historical information and less strategic and than ever before. As a result, stakeholder-centric An outcome of AICL’s rigorous in-house forward-looking disclosures. The articulation communications have emerged as a priority for of how Environmental, Social and Governance research, the publication in its second organisations globally. (ESG) aspects dovetail into organisational value- edition continues to provide insights into Integrated Reporting has emerged as a true creation also seemed lost in translation. how Indian organisations are reporting platform of consolidation, guiding organisations It is in this context that about four years ago ‘value‑creation’ and how is playing a shift to a more unified and value-based reporting integrated reporting made its first mark in India. framework. The pace of adoption of the key role in achieving this. What started with 2-3 companies soon became framework across the world stands as a testimony the preferred reporting framework for several of to its relevance. And the recent intent to merge India’s large corporates. Today, ~50% of Nifty50 the IIRC and the SASB is a decisive step towards companies have adopted integrated reporting, streamlining global reporting frameworks. It is and from our standpoint, more are on the expected to lend further credibility to disclosures, way. Equally fascinating is the fact that nearly clarity to performance indicators and enhance 40% of Indian companies that have embraced intra-industry comparability in reporting.

www.aicl.in/ir/indiaadoptsir/ 6 Introduction (Contd.)

Index Nearly 40% of Indian companies integrated reporting are in the . An outcome of AICL’s rigorous in-house 07 An introduction to research, the publication in its second edition The total market capitalisation to a few key drivers such as: Integrated Reporting continues to provide insights into how Indian • A consistent regulatory thrust directed of companies adopting organisations are reporting ‘value-creation’ and 16 Integrated Reporting at more strategic and holistic reporting, in India is approximately how is playing a key role in achieving this. in India including encouragement of Top 100 21 Analysing Indian companies to voluntarily adopt Integrated Acknowledgement Reporting Integrated Reports US$ 1 tn I congratulate my colleagues Akhil Anilkumar, 62 Industry-wise best reports • The mainstreaming of Environmental, Social Raj Mitra, Rahul Sureka, Suvarna Sohoni, and Governance (ESG) Prasad Taware and Shitij Sharma for their 63 Glossary efforts in making this research document • Foreign and Indian investors seeking a reality. enhanced disclosures We hope that you find this guide to be useful • Independent Directors and Board members and insightful. We look forward to your emphasising contemporary reporting feedback and opinions at [email protected] • The popularity of a ‘single report’ capturing all information for all stakeholders Happy reporting!

Arvind Agrawal

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Index An introduction to 02 Foreword 05 Introduction Integrated Reporting 07 An introduction to Integrated Reporting 08 A three‑tiered approach Corporates globally are increasingly converging Integrated Reporting helps organisations 09 Integrated Reporting on their views about financial capital not being overcome the limitations of traditional financial the sole driver of success. The interplay of both reporting in providing a holistic view of 10 Guiding Principles financial and non-financial capitals such as performance and progress. The International 11 Content Elements natural, intellectual, social and human enables an Framework is designed to also capture enterprise to grow and succeed. information and insights in the larger context of 12 What’s inside an opportunities and risks. Integrated Report? These capitals are all interconnected and interdependent, implying that the inputs of one 13 The changing ‘value’ Globally, more than 2,500 corporates impact the outcomes of the others and vice-versa. paradigm Thus, to stay relevant in the long run and deliver in ~65 countries have adopted the 16 Integrated Reporting sustainable financial returns, businesses need to International Framework. In India, in India look at value creation through the broader prism over 80 companies have already of stakeholder returns. 21 Analysing Indian transitioned into Integrated Reporting. Integrated Reports

62 Industry-wise best reports 63 Glossary

www.aicl.in/ir/indiaadoptsir/ 8 Integrated Reporting follows a three-tiered approach Index Organisation 02 Foreword 05 Introduction Philosophy Process Product 07 An introduction to Integrated Reporting Integrated thinking Integrated reporting or Integrated Report (IR) 08 A three‑tiered approach Active consideration by an organisation The underlying process leading from The most visible and tangible product regarding: integrated thinking that: of integrated reporting, which is: 09 Integrated Reporting • Various operating and functional • Aligns organisational functions in • A concise communication about 10 Guiding Principles units communicating value creation how an organisation’s strategy, governance, performance and 11 Content Elements • Capitals (resources and relationships • Results in the creation of a periodic prospects, in the context of its that the organisation uses or affects) integrated report 12 What’s inside an external environment, lead to value Integrated Report? • Multiple stakeholders for whom it • Sets in motion a mechanism to creation over time creates value define KPIs, collect information and 13 The changing ‘value’ • Prepared in accordance with the regularly review and communicate paradigm International Framework value creation 16 Integrated Reporting in India 21 Analysing Indian Stakeholders Integrated Reports

62 Industry-wise best reports Investors Employees Media 63 Glossary Communities Supply chain and and their Governments Customers and other and NGOs partners shareholders families influencers

www.aicl.in/ir/indiaadoptsir/ 9 Integrated Reporting

Index

02 Foreword 05 Introduction Financial reporting Strategy Non-financial 07 An introduction to Capitals Statutory reports reporting Integrated Reporting Governance Standalone financial Environmental, people and 08 A three‑tiered approach statements Performance social performance 09 Integrated Reporting Consolidated financial Prospects Mapping to indicators 10 Guiding Principles statements Key initiatives and 11 Content Elements interventions 12 What’s inside an Integrated Report?

13 The changing ‘value’ paradigm

16 Integrated Reporting in India Concise communication on value‑creation 21 Analysing Indian Integrated Reports

62 Industry-wise best reports over time for all stakeholders using the 63 Glossary multi‑capital approach

www.aicl.in/ir/indiaadoptsir/ 10 Guiding Principles*

Index

02 Foreword Strategic focus and Connectivity of Stakeholder Materiality 05 Introduction future orientation information relationships 07 An introduction to An integrated report should An integrated report should Into the nature and quality of An integrated report should Integrated Reporting provide insight into the show a holistic picture of the the organisation’s relationships disclose information about organisation’s strategy, combination, interrelatedness with its key stakeholders, matters that substantively 08 A three‑tiered approach and how it relates to the and dependencies between including how and to what affect the organisation’s ability 09 Integrated Reporting organisation’s ability to create the factors that affect the extent the organisation to create value over the short, value in the short, medium and organisation’s ability to create understands, takes into medium and long term. 10 Guiding Principles long term and to its use of and value over time. account and responds to their 11 Content Elements effects on the capitals. legitimate needs and interests. 12 What’s inside an Integrated Report?

13 The changing ‘value’ paradigm

16 Integrated Reporting in India Conciseness Reliability and Consistency and 21 Analysing Indian completeness comparability Integrated Reports An integrated report should An integrated report should The information in an integrated 62 Industry-wise best reports be concise without being include all material matters, report should be presented burdened with less relevant both positive and negative, in on a basis that is consistent 63 Glossary information. a balanced way and without over time and in a way that material error. enables comparison with other organisations to the extent it is material to the organisation’s own ability to create value over time.

*Source: International Integrated Reporting Framework, IIRC www.aicl.in/ir/indiaadoptsir/ 11 Content Elements*

Index An integrated report should answer the following questions across these content elements.

02 Foreword 05 Introduction 07 An introduction to Organisational Basis of preparation Strategy and Risks and General reporting Integrated Reporting overview and external and presentation resource allocation opportunities guidance environment 08 A three‑tiered approach How does the organisation Where does the organisation What are the specific risks and Preparation of integrated What does the organisation do determine what matters to want to go and how does it opportunities that affect the reports should keep in mind 09 Integrated Reporting and what are the circumstances include in the integrated report intend to get there? organisation’s ability to create the guidance on disclosures of 10 Guiding Principles under which it operates? and how are such matters value over the short, medium material matters and capitals; quantified or evaluated? and long term, and how is the time frames for short, medium 11 Content Elements organisation dealing with them? and long terms; and aggregation 12 What’s inside an and disaggregation of Integrated Report? information as explained in the International Framework 13 The changing ‘value’ paradigm

16 Integrated Reporting in India Performance Outlook Governance Business model 21 Analysing Indian Integrated Reports To what extent has the What challenges and How does the organisation’s What is the organisation’s organisation achieved its uncertainties is the governance structure support business model? 62 Industry-wise best reports strategic objectives for organisation likely to encounter its ability to create value in the 63 Glossary the period and what are its in pursuing its strategy, short, medium and long term? outcomes in terms of effects on and what are the potential the capitals? implications for its business model and future performance?

*Source: International Integrated Reporting Framework, IIRC www.aicl.in/ir/indiaadoptsir/ 12 What’s inside an integrated report?

Index Sections Associated Guiding Principles (GP) and Content Elements (CE) of the Framework About the report Basis of presentation 02 Foreword Materiality 05 Introduction Reliability and completeness 07 An introduction to Corporate overview / Organisational overview and Integrated Reporting company profile external environment 08 A three‑tiered approach External/market environment Organisational overview and external environment 09 Integrated Reporting Megatrends Risks and opportunities Opportunity landscape 10 Guiding Principles Materiality and stakeholder engagement Materiality 11 Content Elements Stakeholder relationships 12 What’s inside an Conciseness Integrated Report? Value-creation model Business model 13 The changing ‘value’ paradigm Capital trade-offs Connectivity of information Strategy Strategy and resource allocation 16 Integrated Reporting in India Strategic focus and future orientation

21 Analysing Indian Outlook Integrated Reports Key performance indicators Performance

62 Industry-wise best reports Capital-wise discussions Consistency and comparability Governance/Board Governance 63 Glossary and management Risk management Risks and opportunities

Content Elements Guiding Principles

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From shareholder primacy to stakeholder responsibility Index

20th Century 21st Century

02 Foreword Environment 05 Introduction Business Business Society 07 An introduction to Business Integrated Reporting Environment Society Environment Society 08 A three‑tiered approach 09 Integrated Reporting

10 Guiding Principles 1970s Late 1990s 2020 Shareholder value Shared value System value 11 Content Elements Objective to maximise shareholder return Addition of holistic risk management Achieving integrated management 12 What’s inside an Integrated Report? The way corporates think, act and behave has changed ”A strong sense of purpose and a 13 The changing ‘value’ paradigm commitment to stakeholders helps a 1970 2020 Market Market and company connect more deeply to its 16 Integrated Reporting Resources in India customers and adjust to the changing Management goal Maximising profit Optimising value demands of society. Ultimately, purpose is 21 Analysing Indian Integrated Reports Capital focus Financial capital Multi capital the engine of long-term profitability.”

62 Industry-wise best reports Timing considered Short term Short term and long term Larry Fink Chairman & CEO, Blackrock 63 Glossary Company behaviour Reactive Proactive Excerpt from his 2020 annual letter to CEOs

Business Society

Shareholders Environment

Source: Integrated Thinking & Strategy - State of play report by IIRC www.aicl.in/ir/indiaadoptsir/ 14 The changing ‘value’ paradigm (Contd.)

Index ESG investing gains significant traction globally In India, Nifty100 ESG index has outperformed Nifty100 since 2014 Investors today are keen to evaluate the 02 Foreword US$ 71.1 bn long‑term impact of exposures to ESG risks Global net inflows to funds that align 2500 05 Introduction such as climate change, resource pressures, with ESG principles between April and June in 2020, the peak growth period of data privacy, demographic shifts, regulatory 2000 07 An introduction to COVID-19 (Source: Morningstar) pressures and most recently, pandemic. Integrated Reporting Further, there is a visible correlation between a 1500 08 A three‑tiered approach company’s ESG focus, its market performance US$ 1 tn Global Assets Under Management 1000 and financial returns. (AUM) of ESG-led products 09 Integrated Reporting (Source: Morningstar) In this context, ESG parameters are playing a key 500 10 Guiding Principles 2014 2015 2016 2017 2018 2019 2020 role in investment decisions. It is evidenced by a US$ 89 tn Nifty100 Nifty100 ESG Sector Leaders 11 Content Elements large-scale flight of capital to more responsible Global AUM by 2,500 signatories to the and long-term focused investment opportunities. United Nations-supported Principles of (Source: National Stock Exchange) 12 What’s inside an Responsible Investing (Source: UN PRI) Integrated Report?

13 The changing ‘value’ Resulting in the need to align ESG paradigm parameters with performance reporting 16 Integrated Reporting ESG investing is becoming the zeitgeist of today’s comparability between reports and consistency in India capital markets. However, in a bid to integrate ESG in reporting. 21 Analysing Indian into stakeholder communications, at least a dozen 88% What makes Integrated Reporting truly unique is Investor respondents in a recent Integrated Reports frameworks have emerged with varying abilities to EY survey confirmed integrated its ability to accommodate disclosures required capture information. This proliferation has stymied reports to be very useful sources of 62 Industry-wise best reports by other standards, frameworks and goals. It non‑financial information comparability and consistency in reporting. enables companies to publish a single report with 63 Glossary Integrated Reporting assumes significance comprehensive disclosures, mapped to different in this context, as a holistic framework that external reporting frameworks. An integrated

lays down clear guiding principles and content report can also present and highlight information 1. DJSI - Dow Jones Sustainability Index 1 2 elements, prepared with the objective of ensuring sought by ESG rating agencies (such as DJSI , MSCI , 2. MSCI - Morgan Stanley Capital International Sustainalytics) etc. www.aicl.in/ir/indiaadoptsir/ 15 The changing ‘value’ paradigm (Contd.)

Index It accommodates Key Performance Indicators (KPIs) It helps map disclosures with 02 Foreword from indicator-based reporting principle-based reporting frameworks frameworks 05 Introduction 07 An introduction to Integrated Reporting 08 A three‑tiered approach 09 Integrated Reporting

10 Guiding Principles 11 Content Elements An integrated report can act as a single platform to include 12 What’s inside an various disclosure requirements of multiple agencies. Integrated Report?

13 The changing ‘value’ paradigm 16 Integrated Reporting It helps indicate contributions It helps ESG rating agencies in India to the Global Goals access key information to assess, score and rank organisations 21 Analysing Indian Integrated Reports

62 Industry-wise best reports 63 Glossary

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Index Integrated Reporting 02 Foreword 05 Introduction in India 07 An introduction to Integrated Reporting

16 Integrated Reporting India is one of the most attractive investment in India “Today, investors are moving towards destinations. As Indian companies seek top-tier 17 adoption trends companies which have a high global capital and high-quality investors, there is a in India greater need for transparency and benchmarked Environmental, Social & Governance reporting for both financial and non-financial 18 Notable trends score. India already has systems and performance. 20 Organisations using companies which rank high on this. In this context, Integrated Reporting has emerged framework by India believes in following the path as an important tool for communicating the market cap of growth with equal focus on ESG.” holistic value creation process factoring in all 21 Analysing Indian capitals. Encouraged by India's market regulator Shri Narendra Modi Integrated Reports Securities and Exchange Board of India (SEBI) Honourable Prime Minister of India* to voluntarily adopt the Framework, many 62 Industry-wise best reports Indian companies are using it to tell a more 63 Glossary cohesive story of purpose and performance.

Source: *PM's address during the Virtual Global Investor Roundtable 2020. www.aicl.in/ir/indiaadoptsir/ 17 adoption trends in India 2020

Index Organisations reporting using the Framework continuously for over 3 years

02 Foreword 80IRs published in India+ 23Nifty 50 companies 16Sensex companies 05 Introduction published IRs published IRs 07 An introduction to 75 27 49 Integrated Reporting Growing traction of Integrated IRs published within Externally assured Average number of Reporting in India the BSE 500 group integrated reports pages dedicated to 16 Integrated Reporting within the report in India Application of Framework in different report formats 17 adoption trends in India 66 4 5 Full annual reports Standalone reports Sustainability reports 18 Notable trends made as per the made as per the made as per the Framework Framework Framework 20 Organisations using 80 framework by Framework adoption by sectors within BSE 500 group market cap Industry/Sector Reporters using the International Framework 21 Analysing Indian 64 Fast-Moving Consumer Goods (FMGC) Integrated Reports 14 Banking and financial services 11 62 Industry-wise best reports Power/Energy/Renewables 8 34 Automotive 63 Glossary 8 Chemicals and industrial products 8 Technology, telecom and media 6 Number of companies using Framework using companies of Number 8 4 Metals and mining 5 Cement and building products 5 0 Conglomerate 3 Pharmaceuticals and healthcare 3 ~USD 1 tn Total market cap of companies FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Infrastructure and engineering 3 adopting in India (E70 lakh crore+ Travel and hospitality Reporting year 1 as on Sept 30, 2020)

Note: Most companies in India follow an April to March financial year with a few exceptions that follow calendar year. www.aicl.in/ir/indiaadoptsir/ 18 Notable trends

Index How Indian companies are faring 02 Foreword 05 Introduction 3.5x increase in the number of companies Companies have progressively included more 07 An introduction to using the International Framework in their disclosures in their reports and have evolved Integrated Reporting annual reports between 2018 and 2020 their reporting practice over the years 16 Integrated Reporting in India Integrated Reporting has ushered in a culture of ~40% of companies publishing IRs 17 adoption trends strategy-led reporting in India with 100% of all belong to the framework by Driven by the ease of access and the need market cap to overcome restrictions imposed by the 21 Analysing Indian pandemic, most reports have now shifted Integrated Reports from the print formats to the digital formats 62 Industry-wise best reports (microsites, interactive PDFs and videos). 63 Glossary Today, ~30% of all integrated reports published in India have an online version.

www.aicl.in/ir/indiaadoptsir/ 19 Notable trends

Index Where can Indian reporters improve?

02 Foreword • View materiality from a more holistic • Provide equal emphasis in disclosing 05 Introduction perspective with an emphasis on positive and negative information 07 An introduction to value creation • Comprehensive discussions on climate risks, Integrated Reporting • Avoid repetition of information across the aligned with TCFD recommendations 16 Integrated Reporting in India narrative section and statutory disclosures • Articulate how boards shape and influence 17 adoption trends such as Management Discussion and Analysis, corporate behaviour in India Directors’ Report and Report on Corporate 18 Notable trends Governance • Place ‘purpose’ at the heart of reporting 20 Organisations using framework by • Make long-termism a core focus area market cap

21 Analysing Indian Integrated Reports

62 Industry-wise best reports 63 Glossary

www.aicl.in/ir/indiaadoptsir/ 20 Organisations using Framework by market cap Index Within BSE 500 Notable companies outside BSE 500 using the Framework 02 Foreword `5,00,000 crore+ `25,000 crore+ `5,000 crore+ y Sagar Cements Limited 05 Introduction y SBI Funds Management Pvt. Ltd. y Reliance Industries Ltd. y Tata Steel Ltd. y Metropolis Healthcare Ltd. y Tata Long Steel Products y Tata Consultancy Services Ltd. y Vedanta Ltd. y Solar Industries (India) Ltd. 07 An introduction to y Equitas Small Finance Bank y HDFC Bank Ltd. y Marico Ltd. y Minda Industries Ltd. Integrated Reporting y Chalet Hotels y IndusInd Bank Ltd.* y JSW Energy Ltd. y Thomas Cook (India) Ltd. ` y Tata Motors Ltd. y Thermax Ltd. 16 Integrated Reporting 1,00,000 crore+ y Vakrangee Ltd. y Hindustan Unilever Ltd. y Havells India Ltd. y KEC International Ltd. in India y Bharti Airtel Ltd. y Ambuja Cements Ltd. y Tata Chemicals Ltd. y y Bharti Infratel Ltd. y Apollo Tyres Ltd. 17 adoption trends ICICI Bank Ltd. y ITC Ltd. y Adani Transmission Ltd. y Blue Star Ltd. in India y Maruti Suzuki India Ltd. y Kansai Nerolac Paints Ltd. y Westlife Development Ltd. y Wipro Ltd. y ACC Ltd. y Rallis India Ltd. 18 Notable trends y Axis Bank Ltd. y YES BANK Ltd. y Gujarat Fluorochemicals Ltd. y Larsen & Toubro Ltd. y Abbott India Ltd. y Jyothy Labs Ltd. 20 Organisations using y Titan Company Ltd. framework by `10,000 crore+ `1,000 crore+ market cap `75,000 crore+ y Power Finance Corporation Ltd. y Ceat Ltd. y Adani Green Energy Ltd. y Voltas Ltd. y V-Mart Retail Ltd. 21 Analysing Indian y Hindustan Zinc Ltd. y Bharat Forge Ltd. y Lux Industries Ltd. Integrated Reports y NTPC Ltd. y Mindtree Ltd. y Balrampur Chini Mills Ltd. y Dabur India Ltd. y Tata Power Company Ltd. y Sudarshan Chemical Industries Ltd. 62 Industry-wise best reports y SBI Life Insurance Company Ltd. y Emami Ltd. y Mahindra Logistics Ltd. y Indian Oil Corporation Ltd. y Mahindra & Mahindra Financial Services Ltd. * y JK Paper Ltd. 63 Glossary y Mahindra & Mahindra Ltd. y ICICI Securities Ltd. y GHCL Ltd. y Tech Mahindra Ltd. y Dalmia Bharat Ltd. y Tata Metaliks Ltd. y Schaeffler India Ltd. ` y L&T Finance Holdings Ltd. 50,000 crore+ y The Indian Hotels Company Ltd. y Adani Ports and Special Economic Zone Ltd. Notes: y Vinati Organics Ltd. y Godrej Consumer Products Ltd. y Navin Fluorine International Ltd. • Conversion rate US$ 1 = D75; market capitalisation as on y JSW Steel Ltd. September 30, 2020 y ICICI Prudential Life Insurance Company Ltd. • The above list includes companies that have either adopted all y Cipla Ltd. or specific elements of the Framework. y Tata Consumer Products Ltd. *Yet to publish their FY 2020 Integrated Report as on Nov 30, 2020

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Index Analysing Indian 02 Foreword 05 Introduction Integrated Reports 07 An introduction to Integrated Reporting In 2020, various Indian companies across sectors Methodology 16 Integrated Reporting and sizes chose to report using the International Our coverage universe comprises reports of 75 in India Framework. This section aims to analyse BSE 500 companies BSE 500 constituents (as on September 30, 2020). analysed the reports published in both qualitative and 21 Analysing Indian The analysis was conducted with the objective of quantitative terms and present the best case Integrated Reports understanding the trajectory of adoption in examples that may be used as benchmarks for India, and assessing relevant indicators. 22 Evaluating an each aspect of . Integrated Report We also reviewed the quality of Integrated 50+ Reporting in India, by scoring the reports on parameters 62 Industry-wise best reports Considered across aspects 50+ parameters across various aspects of the for analysis 63 Glossary Framework. We also listed the top scorers on each aspect, outlining the positives and identifying the improvement areas. The industry-wise best reports arising from this analysis are provided on Page 62.

Identifying Selecting Analysing Reviewing Scoring Ranking reports Integrated Reports parameters for the reports as per the analysis the reports (industry-wise) under BSE 500 analysis set parameters

www.aicl.in/ir/indiaadoptsir/ 22 Evaluating an integrated report

Index A well-structured integrated report is characterised by 13 key aspects that truly reflect the content elements and guiding principles of the International Framework.

02 Foreword 1/ 2/ 3/ 4/ 5/ 05 Introduction Basis of Profile of the Purpose External Materiality 07 An introduction to presentation organisation environment Integrated Reporting

16 Integrated Reporting Pg 23-25 Pg 26-28 Pg 29-31 Pg 32-34 Pg 35-37 in India

21 Analysing Indian Integrated Reports 6/ 7/ 8/ 9/ 10/ 22 Evaluating an Stakeholder Strategy and Capitals Value creation Performance Integrated Report engagement capital allocation model 62 Industry-wise best reports 63 Glossary Pg 38-40 Pg 41-43 Pg 44-46 Pg 47-49 Pg 50-52

11/ 12/ 13/ Risks and Governance Interconnectivity opportunities

Pg 53-55 Pg 56-58 Pg 59-61

www.aicl.in/ir/indiaadoptsir/ 23 1 Basis of presentation Index

Basis of presentation, or ‘About This Report’ We recommend Trends from BSE 500 companies 02 Foreword is commonly presented at the very start • Use basis of presentation as a tool to of the report to communicate the report’s 05 Introduction outline the background of the organisation’s scope and boundary, frameworks used in its reporting process 59 29 07 An introduction to preparation, materiality process and internal and Companies referenced Mapped other leading the IIRC and the frameworks to Integrated Reporting external assurances. • Links to other official publications of the Framework in their report their disclosures company, such as separate annual reports, 16 Integrated Reporting This aspect can be achieved by featuring the sustainability reports and presentations in India following elements: can be provided to lead the readers to gain a 21 Analysing Indian • Referencing the usage of the International holistic perspective 54 27 Integrated Reports Framework in the report Defined their reporting Included a third‑party • A legend can be included mapping all the scope and boundary assurance for 22 Evaluating an • Defining the materiality determination icons and indicators used within the report their report Integrated Report process*, reporting scope and boundary to aid navigation of the report 62 Industry-wise best reports • Signatures of board members or key • Referencing multiple frameworks and managerial personnel, along with the 63 Glossary guidelines such as the Global Reporting responsibility statement can be given, to Initiative (GRI), the Sustainable Development emphasise responsibility for the report Goals (SDGs), Task Force of Climate-related Financial Disclosures (TCFD), etc. • Identifying the audience for the report • Assuring/undertaking the responsibility of the integrity of the report by those charged with governance

www.aicl.in/ir/indiaadoptsir/ 24 1/ Basis of presentation (Contd.)

Index Standout report

JSW Steel Limited 02 Foreword Integrated Report 2019-20 05 Introduction Industry: Metals and mining 07 An introduction to Integrated Reporting Why it stands out 16 Integrated Reporting • Checks all the boxes • Provides legends, in India in terms of scope and cross‑referencing and other 21 Analysing Indian boundary, frameworks and tools for easy navigation Integrated Reports guidelines, and internal and external assurances 22 Evaluating an Integrated Report • Describes the application of strategic, financial and 62 Industry-wise best reports non‑financial disclosures to 63 Glossary various entities under the JSW Steel universe, clearly outlining materiality

www.aicl.in/ir/indiaadoptsir/ 25 1/ Basis of presentation (Contd.)

Index Standout report

Mindtree Limited 02 Foreword Integrated Report 2019-20 05 Introduction Industry: Technology, telecom and media 07 An introduction to Integrated Reporting Why it stands out 16 Integrated Reporting • General aspects of reporting, • Identifies the in India such as reporting period target audience 21 Analysing Indian and boundary, materiality • Provides a brief introduction Integrated Reports approach and board to the capitals deployed for responsibility well captured 22 Evaluating an value creation Integrated Report 62 Industry-wise best reports 63 Glossary

Global benchmark Santam Integrated Report 2019

www.aicl.in/ir/indiaadoptsir/ 26 2 Profile of the organisation Index

02 Foreword The profile of the organisation is generally We recommend Trends from BSE 500 companies presented as ‘Corporate Overview’ or as ‘At a 05 Introduction Glance’. It provides a broad introduction, scale • Capturing the most important highlights that 07 An introduction to and capacity, credos, presence and offerings, reflect the Company's true character 61 17 Integrated Reporting among others. Articulated their corporate Mapped their journey • Using the section as an effective tool to credos – Vision, Mission through the years 16 Integrated Reporting This aspect can be achieved by featuring the present the change in an organisation’s general and Values in India following elements: outlook, e.g., transformation from a B2B business to a B2C business 21 Analysing Indian • Showcasing what the organisation does, Integrated Reports where does it operate and what are its • Cross-referencing other sections with the products and services overview to guide readers looking for more 22 Evaluating an 69 59 detailed discussions on offerings, strategy, Presented their Outlined their Integrated Report • Communicating the organisation’s credos – performance, etc. product suite geographic presence Vision, Mission and Values 62 Industry-wise best reports • Presenting the external environment and 63 Glossary megatrends and the organisation’s response to them

www.aicl.in/ir/indiaadoptsir/ 27 2/ Profile of the organisation(Contd.)

Index Standout report

Reliance Industries 02 Foreword Limited 05 Introduction Integrated Annual Report 2019-20 07 An introduction to Industry: Conglomerate Integrated Reporting

16 Integrated Reporting Why it stands out in India • Simplifies and presents • Depicts the value Reliance 21 Analysing Indian the profile of a large creates for each stakeholder Integrated Reports conglomerate with six group, what drives the 22 Evaluating an verticals and multiple value conglomerate and a brief Integrated Report drivers description and highlights of its key business verticals 62 Industry-wise best reports 63 Glossary

www.aicl.in/ir/indiaadoptsir/ 28 2/ Profile of the organisation(Contd.)

Index Standout report

Tata Consumer 02 Foreword Products Limited 05 Introduction Integrated Report 2019-20 07 An introduction to Industry: FMCG Integrated Reporting

16 Integrated Reporting Why it stands out in India • Defines the new identity of • Explains the different 21 Analysing Indian the company in a clear and product brands it houses, Integrated Reports concise manner and the Company’s 22 Evaluating an geographic reach and • Articulates what the new Integrated Report market presence entity aspires to do and 62 Industry-wise best reports what it stands for 63 Glossary

Global benchmark Solvay Integrated Report 2019

www.aicl.in/ir/indiaadoptsir/ 29 3 Purpose Index

Purpose explains an organisation's raison We recommend Trends from BSE 500 companies 02 Foreword d'etre, and is a key driver to organisational • Basing reporting on the core theme of value creation. Increasingly, organisational 05 Introduction purpose, creating an anchor around purpose statements are becoming voices of the which the organisational value-creation 12 4 07 An introduction to impact companies strive to create and the larger Articulated purpose Used purpose as a key story revolves tool to narrate value- Integrated Reporting value they seek to deliver. The rise of purpose also creation mandates the need for companies to consider • Presenting key stories, along with 16 Integrated Reporting multiple capitals and non-financial indicators in quantitative indicators to showcase in India their business conduct and reporting. alignment with purpose 21 Analysing Indian This aspect can be achieved by featuring the Integrated Reports following elements: 22 Evaluating an • Presenting the Company’s purpose statement Integrated Report • Linking the organisation’s approach to 62 Industry-wise best reports value‑creation to its purpose 63 Glossary • Discussing corporate strategy under the larger ambit of purpose, outlining how strategic focus areas will help the company achieve its purpose

www.aicl.in/ir/indiaadoptsir/ 30 3/ Purpose (Contd.)

Index Standout report

Hindustan Unilever Limited 02 Foreword Integrated Annual Report 2019-20 05 Introduction Industry: FMCG 07 An introduction to Integrated Reporting Why it stands out 16 Integrated Reporting • Clearly outlines how • Bases reporting on the in India value creation is an outcome of core theme of its purpose, a relentless pursuit of purpose 21 Analysing Indian ‘Making Sustainable Living Integrated Reports Commonplace’

22 Evaluating an • Aligns strategy with the Integrated Report organisation’s purpose and beliefs, ‘Brands with purpose 62 Industry-wise best reports grow’, ‘Companies with 63 Glossary purpose last’ and ‘People with purpose thrive’

www.aicl.in/ir/indiaadoptsir/ 31 3/ Purpose (Contd.)

Index Standout report

HDFC Bank Limited 02 Foreword Integrated Report 2019-20 05 Introduction Industry: Banking and 07 An introduction to financial services Integrated Reporting

16 Integrated Reporting Why it stands out in India • Introduced its corporate • Presents the five core values 21 Analysing Indian purpose ‘We exist to help of the Bank centred around Integrated Reports every Indian make better this purpose and how they money choices, today take centre-stage in the 22 Evaluating an and tomorrow’ in its 2020 value-creation model Integrated Report integrated report 62 Industry-wise best reports 63 Glossary

Global benchmark Philip Morris Integrated Report 2019

www.aicl.in/ir/indiaadoptsir/ 32 4 External environment Index

The external environment defines the We recommend Trends from BSE 500 companies 02 Foreword circumstances in which the organisation • Providing a comprehensive view of functions, including the trends shaping 05 Introduction the market dynamics under which an its industry. organisation operates 27 20 07 An introduction to Analysed market Outlined organisational This aspect can be achieved by featuring the trends response to the trends Integrated Reporting • Showcasing the organisation’s awareness following elements: of its fast-paced environment and 16 Integrated Reporting • Discussing the aspects of external preparedness to adapt and change in India environment 21 Analysing Indian • Presenting the megatrends shaping the Integrated Reports industry or the economy 22 Evaluating an • The organisation’s response to key Integrated Report developments and trends 62 Industry-wise best reports 63 Glossary

www.aicl.in/ir/indiaadoptsir/ 33 4/ External environment (Contd.)

Index Standout report

Adani Ports and Special 02 Foreword Economic Zone (APSEZ) Limited 05 Introduction Integrated Annual Report 2019-20 07 An introduction to Industry: Ports and infrastructure Integrated Reporting

16 Integrated Reporting Why it stands out in India • Provides an overall • Outlines responses specific to 21 Analysing Indian context to the Company’s each trend, discussing how the Integrated Reports operating environment company is optimised to align 22 Evaluating an with them • Identifies key trends Integrated Report impacting port infrastructure 62 Industry-wise best reports in India and globally 63 Glossary

www.aicl.in/ir/indiaadoptsir/ 34 4/ External environment (Contd.)

Index Standout report

Tata Metaliks 02 Foreword Limited 05 Introduction Integrated Report 2019-20 07 An introduction to Industry: Metals and mining Integrated Reporting

16 Integrated Reporting Why it stands out in India • Lays down its overall • Analyses the key impacts 21 Analysing Indian approach to monitoring the on the Company’s business Integrated Reports external environment performance owing to 22 Evaluating an the developments in the • Explains key developments Integrated Report macro environment in the macro environment 62 Industry-wise best reports and identifies associated opportunities or risks 63 Glossary

Global benchmark Clariant Integrated Report 2019

www.aicl.in/ir/indiaadoptsir/ 35 5 Materiality Index

Traditionally, materiality principle was used We recommend Trends from BSE 500 companies 02 Foreword in financial reporting to handpick and present • Plotting issues according to ‘importance relevant information that can aid in shareholder 05 Introduction to the organisation’ and ‘importance to decision-making. Similarly, core sustainability stakeholders’ as a starting point for prioritising 22 44 07 An introduction to issues were mapped in GRI-based reports. in an Conducted and presented Identified material issues ESG-related issues material issues centred Integrated Reporting integrated report, however, the focus is on issues around value creation that can substantively affect the ability of the • Focusing on issues having a material bearing (specific to ) 16 Integrated Reporting organisation to create value over time. on the organisation’s value-creation process in India This aspect can be achieved by featuring the • Linking the material issues with the risks and 21 Analysing Indian following elements: opportunities to explain the temporal nature of Integrated Reports 31 9 those issues Prioritised material Categorised material • Providing a summary of materiality 22 Evaluating an issues issues under various heads determination process Integrated Report • Indicating how material issues are prioritised 62 Industry-wise best reports and presenting the most material issues 16 2 63 Glossary affecting value-creation abilities Linked material issues Presented material issues to strategy in a separate report • Showing material issues and their linkages with strategy, risks and opportunities and business model • Outlining all issues that can have a material impact, as opposed to only ESG issues (similar to GRI-based reporting)

www.aicl.in/ir/indiaadoptsir/ 36 5/ Materiality (Contd.)

Index Standout report

Tata Steel Limited 02 Foreword Integrated Report 2019-20 05 Introduction Industry: Metals and mining 07 An introduction to Integrated Reporting Why it stands out 16 Integrated Reporting • Categorised the material • Material issues have been in India issues under Economic, mapped to specific measures 21 Analysing Indian Environmental, Social initiated to manage them, and Integrated Reports and Governance key performance indicators used to track their progress 22 Evaluating an • Linked each category Integrated Report with specific capitals and strategic objectives 62 Industry-wise best reports 63 Glossary

www.aicl.in/ir/indiaadoptsir/ 37 5/ Materiality

Index Standout report

Godrej Consumer 02 Foreword Products Limited 05 Introduction Annual & Integrated Report 2019-20 07 An introduction to Industry: FMCG Integrated Reporting

16 Integrated Reporting Why it stands out in India • Details the Company’s • Provided a materiality matrix 21 Analysing Indian approach to materiality and that separates the issues on Integrated Reports methodology the basis of disclosure levels 22 Evaluating an (mandatory/supplementary/ • Laid out the top priority Integrated Report no disclosures) issues post stakeholder 62 Industry-wise best reports consultations and linked those with the 63 Glossary strategic pillars

Global benchmark Redefine Properties Integrated Report 2019

www.aicl.in/ir/indiaadoptsir/ 38 6 Stakeholder relationships Index and engagement 02 Foreword 05 Introduction As part of regular business activities, We recommend Trends from BSE 500 companies an organisation interacts with several 07 An introduction to • Listing the key stakeholders, their concerns stakeholder groups, including financial capital Integrated Reporting and engagement methods providers, suppliers, customers, regulators 61 51 16 Integrated Reporting and communities. Value-creation ability of an • Highlighting the material issues that are closely Identified stakeholder Presented stakeholder groups engagement in India organisation is closely associated with its ability linked with the respective stakeholder groups mechanisms to identify and address the legitimate needs and 21 Analysing Indian • Demonstrating how the organisation responds requirements of these stakeholder groups. Integrated Reports or plans to respond to the concerns of This aspect can be achieved by featuring the stakeholder groups 22 Evaluating an following elements: 28 16 Integrated Report Presented stakeholder Discussed organisation’s concerns response to the concerns • Communicating the organisation's 62 Industry-wise best reports understanding of stakeholders’ requirements 63 Glossary and needs • Showing the various platforms and means through which the organisation engages with different stakeholder groups • Mentioning the organisation’s response to stakeholders’ demands and concerns

www.aicl.in/ir/indiaadoptsir/ 39 6/ Stakeholder relationships and engagement (Contd.)

Index Standout report

Marico Limited 02 Foreword Integrated Report 2019-20 05 Introduction Industry: FMCG 07 An introduction to Integrated Reporting Why it stands out 16 Integrated Reporting • Takes a unique approach to • Articulates stakeholder in India weave the overarching narrative engagement mechanisms, 21 Analysing Indian using the value Marico creates explains the initiatives specific Integrated Reports for its various stakeholders to each stakeholder group

22 Evaluating an • Distils approach to creating Integrated Report value and performance across various metrics 62 Industry-wise best reports 63 Glossary

www.aicl.in/ir/indiaadoptsir/ 40 6/ Stakeholder relationships and engagement (Contd.)

Index Standout report

NTPC Limited 02 Foreword Integrated Annual Report 2019-20 05 Introduction Industry: Power/Energy/Renewables 07 An introduction to Integrated Reporting Why it stands out 16 Integrated Reporting • Outlines a well-structured, in India groups under four major four-step stakeholder categories (Keep satisfied, 21 Analysing Indian engagement process Monitor, Manage closely and Integrated Reports • Explains the outcome of Keep informed) 22 Evaluating an this process through a • Describes the key stakeholder Integrated Report 2x2 Power-Interest matrix, groups and the Company’s which plots stakeholder 62 Industry-wise best reports modes and frequency of engagement with them, their 63 Glossary concerns and linkage with material topics

Global benchmark Vodacom Integrated Report 2019

www.aicl.in/ir/indiaadoptsir/ 41 7 Strategy and capital Index allocation 02 Foreword 05 Introduction How is the organisation moving towards realising We recommend Trends from BSE 500 companies its vision? What factors influence strategy 07 An introduction to • Using capital linkages to indicate formulation? How is the value-creation process, Integrated Reporting resource allocation the performance and resource allocation aligned 54 78 16 Integrated Reporting to the strategic framework of the organisation? • Presenting announced capex plan and Discussed the strategy Outlined the strategic formulation process focus areas in India These are the fundamental questions answered value to be created across financial and by this aspect. non‑financial parameters 21 Analysing Indian Integrated Reports This aspect can be achieved by featuring the • Identifying a set of KPIs that can be tracked following elements: year-on-year and reporting on the same, with a 19 31 22 Evaluating an Presented capital Associated KPIs with short note explaining the relevance of the KPIs allocation each focus area Integrated Report • Explaining the organisation’s strategic and the rationale for the performance level framework and objectives over short, medium 62 Industry-wise best reports and long terms 63 Glossary • Laying down an action plan, including capital 32 14 Established enablers Included sustainability allocation, to achieve the strategic objectives supporting the as a part of the focus area corporate strategy • Involving ESG as a core facet of the strategic framework, and embedding sustainability as a strategic priority • Linking performance to the strategic objectives Providing the organisation’s near- and long‑term outlook

www.aicl.in/ir/indiaadoptsir/ 42 7/ Strategy and capital allocation (Contd.)

Index Standout report

JSW Steel Limited 02 Foreword Integrated Report 2019-20 05 Introduction Industry: Metals and mining 07 An introduction to Integrated Reporting Why it stands out 16 Integrated Reporting • Presents a strategy-driven • Strategic discussions in India narrative; provides interspersed with case 21 Analysing Indian a six-pillared strategic studies (Feature Stories) Integrated Reports framework that anchors that substantiate the the narrative and lays progress made during the 22 Evaluating an down key performance year under review Integrated Report areas, and future outlook • Linked each strategic focus 62 Industry-wise best reports area with material matters, 63 Glossary key risks and performance indicators, with an operating context • Explains the organisation’s strategy-making process, and capitals deployed and enhanced by each focus area

www.aicl.in/ir/indiaadoptsir/ 43 7/ Strategy and capital allocation (Contd.)

Index Standout report

Indian Hotels 02 Foreword Company Limited 05 Introduction Integrated Report 2019-20 07 An introduction to Industry: Travel and hospitality Integrated Reporting

16 Integrated Reporting Why it stands out in India • Provides updates on • Outlines measurable 21 Analysing Indian Aspiration 2022 strategy outcomes against each Integrated Reports subset of the strategy, and • Discusses key initiatives and explains how the company 22 Evaluating an developments, including exceeded the targets ahead Integrated Report spotlight stories under each of schedule strategic lever 62 Industry-wise best reports 63 Glossary

Global benchmark Sasol Integrated Report 2019

www.aicl.in/ir/indiaadoptsir/ 44 8 Capitals Index

02 Foreword 05 Introduction Multi-capital thinking is the very heart of We recommend Trends from BSE 500 companies integrated thought process. The capitals, 07 An introduction to • Providing clear quantitative indicators namely Financial, Manufactured, Intellectual, Integrated Reporting supporting qualitative capital definitions Human, Social & Relationship and Natural are 65 2 16 Integrated Reporting resources and relationships the organisation • Reframing/adding/subtracting capitals based Defined their Used capitals other capitals than the standard in India draws from and impacts while creating and on the nature of business, using the six capitals six specified enhancing value. indicated by the Framework as a base 21 Analysing Indian Integrated Reports This aspect can be achieved by featuring the • Using trade-offs to explain business following elements: decisions, linking them to material issues 22 Evaluating an and their prioritisation 47 35 Integrated Report • Identify and define the capitals the Supported capital Provided capital definitions with trade‑offs and/or organisation depends upon and considers 62 Industry-wise best reports data points strategy linkages most material for value creation. 63 Glossary • Explaining trade-offs between different capitals. Capital trade-offs can be between: • Different capitals or between components of capitals • Impact of capitals over time • Capitals owned and not owned by the organisation

www.aicl.in/ir/indiaadoptsir/ 45 8/ Capitals (Contd.)

Index Standout report

Tata Power Company Limited 02 Foreword Integrated Report 2019-20 05 Introduction Industry: Power/Energy/Renewables 07 An introduction to Integrated Reporting Why it stands out 16 Integrated Reporting • Takes a capital-first approach • The discussions under each in India in its maiden integrated capital also includes a note on 21 Analysing Indian report; defines the capitals the key interdependencies, in Integrated Reports specific for the company the form of impacts induced by and presents a detailed a specific capital on other forms 22 Evaluating an performance review under of capital Integrated Report each capitals 62 Industry-wise best reports 63 Glossary

www.aicl.in/ir/indiaadoptsir/ 46 8/ Capitals (Contd.)

Index Standout report

ACC Limited 02 Foreword Integrated Report 2019-20 05 Introduction Industry: Cement and 07 An introduction to building materials Integrated Reporting

16 Integrated Reporting Why it stands out in India • Emphasises the role of its six • Clearly defines the resources 21 Analysing Indian capitals in its approach to and relationships and lists Integrated Reports creating value out the key outcomes 22 Evaluating an • Provides a summary of value • Describes key initiatives Integrated Report creation based on the six and presents qualitative capitals upfront and quantitative data 62 Industry-wise best reports on performance within 63 Glossary capital‑wise disclosures

Global benchmark Kumba Iron Ore Integrated Report 2019

www.aicl.in/ir/indiaadoptsir/ 47 9 Value-creation model Index

02 Foreword 05 Introduction The value a company creates either for the We recommend Trends from BSE 500 companies business or for its stakeholders in the short, 07 An introduction to • Keeping the ‘Octopus Model’ prescribed in the medium or long term forms the basis of its Integrated Reporting Framework as a base and customising it purpose. It is important for the stakeholders to to the organisation 64 26 16 Integrated Reporting be aware of the entirety of the organisation’s Followed the IIRC’s Cross-linked aspects of suggested business the business model to in India inputs, value-creation process, business outputs • Categorising inputs and outcomes under model framework other sections and outcomes for different capital components. different capitals 21 Analysing Indian Integrated Reports This aspect can be achieved by featuring the • Providing both quantitative and qualitative following elements: outcomes 22 Evaluating an 45 Integrated Report • Factoring in all the capitals defined by the • Providing cross-referencing to various sections Mapped the organisation’s value organisation in the business model from the value-creation model 62 Industry-wise best reports chain as part of the activities • Mapping all the activities undertaken by the Note: Outputs denote products, services, 63 Glossary organisation to produce goods and services by-products and waste generated by an organisation’s activities. Hence, they do not • Listing out the output of business activities, require a capital-wise classification. using defined metrics • Highlighting the outcomes by capitals • Integrating the operating context in the value-creation model, and embedding the organisational vision and mission • Linking the business model with strategy and resource allocation, risks and opportunities, performance and outlook

www.aicl.in/ir/indiaadoptsir/ 48 9/ Value-creation model (Contd.)

Index Standout report

Hindustan Unilever Limited 02 Foreword Integrated Report 2019-20 05 Introduction Industry: FMCG 07 An introduction to Integrated Reporting Why it stands out 16 Integrated Reporting • A great example of how large- • Defines each step in the in India scale companies can use simple value‑creation process; 21 Analysing Indian business model representations guides the readers looking for a Integrated Reports to effectively communicate deep dive to relevant sections value creation 22 Evaluating an Integrated Report • Clearly maps the resources and relationships the company 62 Industry-wise best reports depends on; the activities 63 Glossary it undertakes and the value it creates

www.aicl.in/ir/indiaadoptsir/ 49 9/ Value-creation model (Contd.)

Index Standout report

ICICI Bank Limited 02 Foreword Integrated Report 2019-20 05 Introduction Industry: Banking and 07 An introduction to financial services Integrated Reporting

16 Integrated Reporting Why it stands out in India • Captures the scale of • Outlines the four key growth 21 Analysing Indian operations, outcomes drivers and the Bank’s Integrated Reports and key drivers in its strategic priorities to deliver value‑creation model its products and services; 22 Evaluating an presents the key outcomes Integrated Report • Defines the inputs using the under different capitals six capitals, each of which 62 Industry-wise best reports leads into specific value 63 Glossary drivers (key initiatives)

Global benchmark MTN Integrated Report 2019

www.aicl.in/ir/indiaadoptsir/ 50 10 Performance Index

02 Foreword 05 Introduction An integrated report should convey the extent to • Environmental: Emissions, wastewater Trends from BSE 500 companies which the organisation has achieved its strategic 07 An introduction to recycled, energy mix and usage objectives for the reporting period and what are Integrated Reporting the outcomes in terms of effects on the capitals. • Social: CSR expenditure, customer satisfaction 16 Integrated Reporting score, gender diversity, age diversity, training 16 51 This aspect can be achieved by featuring the Identified KPIs under each Provided comparable in India hours per employee, Lost Time Injury strategic focus area KPI data for three or following elements: Frequency Rate (LTIFR) more preceding years 21 Analysing Indian • Mapping KPIs to strategic focus areas Integrated Reports • Governance: Number of independent directors • Presenting both financial and non-financial KPIs and women directors, stakeholder complaints 22 Evaluating an received vis-à-vis resolved, ESG scores/ratings 50 20 Integrated Report • Showcasing performance across past years from third parties Provided Discussed the rationale (three or more immediately preceding years is a non‑financial KPIs for the performance 62 Industry-wise best reports good thumb rule) 63 Glossary • Ensuring capture of both positive and We recommend negative performance • Providing an industry benchmark for every KPI, 22 25 • Complementing quantitative disclosures with a enabling better comparability and improved Used GRI-linked Presented both positive KPIs and negative performance qualitative explanation performance disclosures • Presenting performance highlights upfront in Examples of KPIs the report • Financial: Revenue, EBITDA, PAT, debt to equity ratio, debt to EBITDA ratio, free cash flow, ROCE

• Operational: Goods produced, efficiency, throughput, sales, plant availability, profitability per unit of product www.aicl.in/ir/indiaadoptsir/ 51 10/ Performance (Contd.)

Index Standout report Maruti Suzuki India Limited 02 Foreword Integrated Report 2019-20

05 Introduction Industry: Automotive and auto-ancillaries 07 An introduction to Integrated Reporting Why it stands out

16 Integrated Reporting • Conducts a detailed and social aspects of triple in India performance analysis of the bottom line; highlights specific company across multiple levels topics, strategy and initiatives 21 Analysing Indian and records performance under Integrated Reports • Presents the key highlights different aspects under its six capitals 22 Evaluating an • Includes a dedicated Integrated Report • Performance highlights sustainability performance includes markers that provide 62 Industry-wise best reports section, presented as per positive, neutral or negative GRI indicators 63 Glossary performance trend y-o-y

• Divides performance discussion under economic, environmental

www.aicl.in/ir/indiaadoptsir/ 52 10/ Performance (Contd.)

Index Standout report HDFC Bank Limited 02 Foreword Integrated Report 2019-20

05 Introduction Industry: Banking and financial services 07 An introduction to Integrated Reporting Why it stands out 16 Integrated Reporting in India • Captures and categorises the metrics and dedicates Bank’s performance across specific sections to gauge the 21 Analysing Indian operational aspects and impact in these areas Integrated Reports key capitals • Maps the ESG action areas 22 Evaluating an • Reviews quarter-wise to the United Nations Integrated Report developments and provides Sustainable Development 62 Industry-wise best reports key qualitative and Goals (UN SDGs) to depict quantitative highlights direct or indirect contribution 63 Glossary to the Global Goals • Elucidates the Bank’s ESG performance across key

Global benchmark Teleperformance Integrated Report 2019

www.aicl.in/ir/indiaadoptsir/ 53 11 Risks and opportunities Index

02 Foreword 05 Introduction An integrated report identifies the key risks We recommend Trends from BSE 500 companies and opportunities that are specific to the 07 An introduction to • Discussing both internal and external risks organisation and its ability to create value. Integrated Reporting It also identifies the organisation’s ability and • Cross-linking risks with the external 57 56 16 Integrated Reporting strategy to mitigate the risks and capitalise on environment and strategy disclosures Presented key risks under Mapped mitigation various categories measures for each risk in India the opportunities. • Indicating which capitals are expected to be 21 Analysing Indian This aspect can be achieved by featuring the impacted due to the risk Integrated Reports following elements: • Maintaining materiality as an important 22 Evaluating an • Identifying the key risks and opportunities an aspect while identifying risks and 21 31 Linked risks to Presented key Integrated Report organisation faces or is expected to encounter potential impact strategic focus areas opportunities in the in the short, medium and long terms and/or material issues external environment 62 Industry-wise best reports • Assessing the probability of occurrence of 63 Glossary various risks and opportunities 20 15 • Communicating an action plan to mitigate the Mapped the Identified the risks or capitalise on the opportunities organisation’s probability and/or response to the severity of • Indicating risk movement over the opportunities occurrence of risk reporting periods or opportunity • Presenting the risk management framework

www.aicl.in/ir/indiaadoptsir/ 54 11/ Risks and opportunities (Contd.)

Index Standout report

Tata Motors Limited 02 Foreword Integrated Report 2019-20 05 Introduction Industry: Automotive and auto-ancillaries 07 An introduction to Integrated Reporting Why it stands out 16 Integrated Reporting • Provides a detailed account • Maps the specific capitals in India of how the company manages likely to be impacted due to 21 Analysing Indian its principal risks and builds on the possible occurrence of the Integrated Reports key opportunities; identifies identified risks key risks after analysing their 22 Evaluating an • Highlighted key opportunities significance and likelihood Integrated Report arising from the dynamic of occurrence external environment 62 Industry-wise best reports • Explains the nature of the risk 63 Glossary and possible consequences, and outlines mitigation strategy for each risk

www.aicl.in/ir/indiaadoptsir/ 55 11/ Risks and opportunities (Contd.)

Index Standout report

Dabur India Limited 02 Foreword Integrated Report 2019-20 05 Introduction Industry: FMCG 07 An introduction to Integrated Reporting Why it stands out 16 Integrated Reporting • Provides a detailed • Discusses key challenges in India section that lays down under each risk category, 21 Analysing Indian the Company’s risk and the possible impacts Integrated Reports management process, risk on various aspects of the governance structure, and business and capitals; 22 Evaluating an the overall responsibilities of explains mitigation strategy Integrated Report risk management for each risks category 62 Industry-wise best reports • Explores the risk appetite of 63 Glossary the company and the broad risks it considers

Global benchmark Old Mutual plc Integrated Report 2019

www.aicl.in/ir/indiaadoptsir/ 56 12 Governance Index

02 Foreword 05 Introduction An integrated report explains how the We recommend Trends from BSE 500 companies organisation’s governance structure supports 07 An introduction to • Summarising committee memberships its ability to create value in the short, medium Integrated Reporting and key decisions taken during committee and long term. meetings to define the responsibility and 31 14 16 Integrated Reporting Illustrated their Discussed key This aspect can be achieved by featuring the ownership of each member governance framework Board decisions in India following elements: • Referencing how governance parameters 21 Analysing Indian • Outlining ‘Those Charged With Governance’ are linked with the compensation of TCWG Integrated Reports (TCWG) for the organisation, the organisation’s to convey organisational commitment to 22 Evaluating an leadership structure and the overall good governance 20 62 Presented their Board/ Presented profile of the Integrated Report governance framework TCWG diversity Board and relevance across facets of appointment 62 Industry-wise best reports • Explaining the role TCWG plays in giving strategic direction or in creating and 63 Glossary conserving value • Diversity of the board in terms of gender, 26 Discussed key experience, independence, background or on corporate behaviour any other parameter issues such as human rights and ethics • Relevance of each director on the board and the value they add to the organisation • Board’s stance in mainstreaming ESG in the organisation’s operations

www.aicl.in/ir/indiaadoptsir/ 57 12/ Governance (Contd.)

Index Standout report

Adani Transmission Limited 02 Foreword Integrated Report 2019-20 05 Introduction Industry: Power/Energy/Renewables; Infrastructure and engineering 07 An introduction to Integrated Reporting Why it stands out 16 Integrated Reporting • One of the most comprehensive nuances of Board evaluation in India corporate governance and compensation, its key 21 Analysing Indian sections presented by responsibilities and independence Integrated Reports an Indian company in its • Showcases the diversity of the integrated report 22 Evaluating an Board in terms of gender, skills, Integrated Report • Details its overall governance independence, experience philosophy and governance and expertise 62 Industry-wise best reports framework, and highlights • Lists key Board oversight 63 Glossary principles based on which it priorities and links them with the is governed key decisions taken and the key • Talks about the role of capitals impacted the Board in maintaining oversight and taking decisions; articulates the

www.aicl.in/ir/indiaadoptsir/ 58 12/ Governance (Contd.)

Index Standout report

Vedanta Limited 02 Foreword Integrated Report 2019-20 05 Introduction Industry: Metals and mining 07 An introduction to Integrated Reporting Why it stands out 16 Integrated Reporting • Presents key governance • Provides extensive profiles in India information in a concise of the Company’s Board 21 Analysing Indian format; outlines the and management Integrated Reports Company’s governance philosophy, the key values 22 Evaluating an that guide it and the Integrated Report governance framework 62 Industry-wise best reports 63 Glossary

Global benchmark Nedbank Integrated Report 2019

www.aicl.in/ir/indiaadoptsir/ 59 13 Interconnectivity Index

02 Foreword 05 Introduction An integrated report becomes truly integrated We recommend Trends from BSE 500 companies when its content elements interact with each 07 An introduction to • Linking existing information from statutory other to present a cohesive narrative. No content Integrated Reporting reports such as Board’s Report, Management element of an integrated report is sufficient in its Discussion and Analysis, Corporate 56 27 16 Integrated Reporting own capacity to present the entire value-creation Effectively used Linked external Governance Report, Business Responsibility cross‑referencing to disclosures for the in India story, if not interconnected with the relevant Report and Financial Statements connect information reader to access sections of the report. spread through the report 21 Analysing Indian • Using materiality and identified issues as the Integrated Reports This aspect can be achieved by featuring the base for interconnecting all information following elements: 22 Evaluating an • Using page referencing and icons to aid the Integrated Report • Cross-referencing content elements, 53 reader in navigating the interconnectivities Used graphic specifically external environment, materiality, devices/icons to 62 Industry-wise best reports strategic priorities, value-creation model, indicate cross-linkages in the report 63 Glossary performance and risks • Discussing both quantitative and qualitative disclosures • Disclosing both financial and non‑financial information • Interlinking information within the integrated report, information within the organisation’s other communications and information from any other reliable sources • Presenting information over periods of time

www.aicl.in/ir/indiaadoptsir/ 60 13/ Interconnectivity (Contd.)

Index Standout report

Hindustan Zinc Limited 02 Foreword Integrated Report 2019-20 05 Introduction Industry: Metals and mining 07 An introduction to Integrated Reporting Why it stands out 16 Integrated Reporting • Showcases the • Makes effective use of in India interconnectivity between the cross‑referencing to avoid 21 Analysing Indian various content elements in its repetition of information, Integrated Reports maiden integrated report especially in the value-creation model spread 22 Evaluating an • Links strategic priorities, KPIs Integrated Report and contribution to UN SDGs with its materiality discussion 62 Industry-wise best reports • Maps capitals impacted 63 Glossary against key risks

www.aicl.in/ir/indiaadoptsir/ 61 13/ Interconnectivity (Contd.)

Index Standout report

Marico Limited 02 Foreword Integrated Report 2019-20 05 Introduction Industry: FMCG 07 An introduction to Integrated Reporting Why it stands out 16 Integrated Reporting • Describes the components • References each of these in India of value creation and outlines components to specific 21 Analysing Indian the company’s strategic sections of the report for Integrated Reports pillars and enablers, capitals, detailed discussions and key stakeholders as an 22 Evaluating an interconnected ecosystem Integrated Report that drives value 62 Industry-wise best reports 63 Glossary

Global benchmark Standard Bank Integrated Report 2019

www.aicl.in/ir/indiaadoptsir/ 62 Industry-wise best reports

Index Based on our extensive research, we have arrived at an industry-wise selection of best Indian integrated reports for FY 2020.

Automotive and auto-ancillaries Banking and financial services Cement and building products 02 Foreword 05 Introduction 07 An introduction to Integrated Reporting

16 Integrated Reporting Chemicals and industrial products Conglomerates Consumer in India

21 Analysing Indian Integrated Reports

62 Industry-wise best reports 63 Glossary Infrastructure and Engineering Metals and mining Pharmaceuticals and healthcare

Adani Ports and Special Economic Zone Limited Vol.01 | Integrated Annual Report 2019-20

Power/Energy/Renewables Technology, telecom and media Travel and hospitality

Tr ansmission Adani Transmission Limited Adani Green Energy Limited Integrated Report 2019-20

Notes: 1. Alphabetical order followed 2. AICL has scored the Top 500 BSE companies on the basis of its internal scoring methodology. To know more and understand your organisation's scoring and ranking, please get in touch with us at [email protected] www.aicl.in/ir/indiaadoptsir/ 63 Glossary

Index AR Annual Report Integrated Reporting and AICL BRR Business Responsibility Report AICL is a communications consultancy actively involved in helping its clients adopt Integrated Reporting . From explaining the concept, to executing the full report development, AICL's 02 Foreword BSE Bombay Stock Exchange work covers a broad spectrum of activities and initiatives aimed at growing the number of 05 Introduction CDP Carbon Disclosure Project organisations that use to communicate with their stakeholders. From research, thought leadership, training, materiality exercises, internal workshops, to full-scale design and content 07 An introduction to DJSI Down Jones Sustainability Index development, AICL has partnered with leading Indian organisations to create over 80 globally- Integrated Reporting ESG Environmental, Social and Governance recognised integrated reports. 16 Integrated Reporting FMCG Fast-Moving Consumer Goods For more information, visit www.aicl.in/IR in India GRI Global Reporting Initiative 21 Analysing Indian Integrated Reports IIRC International Integrated Reporting Council 62 Industry-wise best reports IIRC-approved training Integrated Reporting programmes and 63 Glossary workshops IR Integrated Report NGRBC National Guidelines on Responsible Business Conduct Thought Full-fledged stakeholder leadership in engagement and NVGs National Voluntary Guidelines on materiality assessments Social, Environmental and Economic Responsibilities of Business, 2011 AICL and SDGs Sustainable Development Goals SEBI Securities and Exchange Board of India SR Sustainability Report Influencing and End-to-end capabilities evangelising in creating and delivering TCFD Task Force on Climate-related adoption integrated reports Financial Disclosures

UNGC United Nations Global Compact www.aicl.in/ir/indiaadoptsir/ AICL is India’s leading stakeholder communications consultancy and corporate design studio offering a unique suite of services.

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