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Business Responsibility Report

From the CEO’s desk initiatives based on an understanding of the needs of the community. Tata continues to support Coorg At Tata Coffee, magical goodness of nature resides in every Foundation, educational institutions like Akshara School, DARE sip of our delicious Coffee, Tea and Pepper. In delivering the school and Swastha. In addition to residential schools, Swastha goodness of nature, Sustainability is embedded into our conducts community-based rehabilitation in neighbouring core values and our commitment to the core value reflects villages. As part of our Corporate Social Responsibility (CSR) in embracing the sustainable practices followed across our initiative, we work towards restoration of hydrological balance Company, with regard to business, environmental, operational in the districts of Coorg and Hassan with the objective of and social sustainability. We contribute to the well-being of eradicating water shortage faced by the communities there. our employees as well as for every stakeholder within our ecosystem. Operational sustainability Environmental sustainability The 274 water tanks we have built across our plantations have a capacity of 34 lakh cubic meter. Water storage on the estates Water being an essential resource to our business, we have have caused us to plan for complete availability of water for undertaken various water management practices, such as water blossom and backing irrigation needs. To ensure availability conservation, wastewater treatment and rainwater harvesting of solar energy, we installed a large number of solar panels in at our plantations and manufacturing facilities. We conserve recent years. Our digitisation initiatives ensured the easing of water through use of water-efficient technology, wastewater our core operations and support functions, while helping us management systems, create awareness among employees reschedule activities at our plantations, promptly resolving statutory reports about the cause. These actions have significantly reduced the identified problems, simplifying work processes, improving specific consumption of water. The wastewater management staff productivity, and so on. techniques at our Theni plant is Zero-Liquid-Discharge (ZLD). We are stringently checking the discharge treated wastewater To ensure availability of high yield crops, we are using technique out of the Toopran plant and plan on upgrading the system to of clonal propagation. The Elite plants (i.e. high yielding, ZLD. We harvest rainwater at our plantations and have built 274 pesticide resistant plants) are identified, marked and multiplied tanks across the coffee plantations with a cumulative capacity through use of vegetative suckers. This clonal propagation of 35 lakh cubic meter. ensures availability of elite plants with higher yield plants for future. Considering the risks of climate change, our plantations have huge carbon sinks that help us achieve a negative carbon We have fixed weather stations at our plantations for real time footprint of 1.71 lakh tonnes of CO2 equivalent per annum. measurement of temperature, rain, which helps the Company A good percentage of our energy requirement is addressed to reschedule the plantations operations suitably for next 2 through renewable sources in our tea operations and instant days. The Company has also collaborated with IBM weather for coffee units. the app. This app helps us to measure the soil quality, moisture content, weather conditions and rain forecast. This app helps Business sustainability to advance or reschedule the plantations activity to later dates. We have a comprehensive risk management framework in We are equal Opportunity Employer and with philosophy of place. The Enterprise Risk Management process covers risk Inclusivity, we have divergent workforce in respect of gender identification, assessment, development of mitigation strategy, diversity, cultural diversity, religious diversity. This helps us to action plan implementation, monitoring, reporting and update have vocal employee base and culture to challenge the status to Risk Management Committee. quo. As a strategic move, we are pursuing value addition to the As one of our core values, safety of our employees and associates customers through growing allied products to current product is important to us and we are committed to providing safe range such as Avocado, Dragon fruits, Apiculture (Honey Bee work environment. With a vision of Zero Harm and as part of cultivation), Pisciculture (fish farming). our Safety Excellence journey, we have further strengthened Social sustainability our safety practices over the year, creating a robust Safety governance and review structure, building awareness and In line with our commitment to the society, Tata Coffee plays capabilities across the workforce while enhancing operational its role in developing the proximate communities around efficiencies. This has enabled zero fatal incidents during the its operation. We customise our community development year and reduction of injury rate by 18%. 2 of peppe of wo the Into Annual Report 2019-20 the direction of greaterthe direction and accountability transparency of our isastep in Report This editionoftheBusinessResponsibility Consortium. food safety initiatives Retail includeFSSC22000,SQFandBritish such as Halaal,safety certified, Koshar, UTZ and so on. Global To improve ouroperations andsustain performance, are food Business ResponsibilityReport[Contd.] r r ld emphasising socialvalue creation. to leadtheway inwhichsocialinvestments are made, by Company towards isourhonestendeavour itsstakeholders. It Chacko Purackal ThomasChacko Managing Director &CEO 3

SECTION A: GENERAL DISCLOSURES

Corporate Identity Number (CIN) L01131KA1943 PLC000833 Company’s name Tata Coffee Limited Register office Address Pollibetta, Kodagu, 571215, , India website www.tatacoffee.com Email ID [email protected] Financial Year reported 2019-20 Sectors Company engaged in Growing of coffee (SIC – 01272) Manufacturing of coffee products (SIC – 10792) Growing of tea (SIC – 01271) Growing of pepper (SIC – 01280) Key products/services, the Coffee – Green beans Company manufactures/ Coffee – provides Tea Pepper Total number of locations where business activity is undertaken statutory reports International locations  Our Coffee business is largely global in nature where we sell instant coffee and green beans to buyers across the world. Our main markets for Instant are Russia, West Africa, Eastern Europe and South East Asia whereas for green beans our chief destinations are Italy, Germany and Middle East. National locations  17 coffee estates – in Kodagu, Hassan and Chikmagalur districts of Karnataka  1 tea estate – in Kodagu district of Karnataka  1 tea and coffee (mixed) estate – in Chikmagalur district of Karnataka  4 tea estates – in Pachamallai, Pannimade, Uralikal and Velonie in Coimbatore district of  1 coffee estate – in Valparai in Coimbatore district of Tamil Nadu  1 tea estate – in Malakiparai in Thrissur district of Kerala  1 curing works, roasting and grinding factory and pepper processing unit – in Kudige, Kushalnagar, in Kodagu district of Karnataka  1 Instant coffee plant in Theni district of Tamil Nadu  1 Instant coffee plant in Toopran in Medak district of Telangana  Marketing and corporate functions are based out of Bengaluru, Karnataka Markets served by the Company Our coffee business provides instant coffee and green beans to buyers across the world. Our main markets for instant coffee are Russia, West Africa, Eastern Europe and Southeast Asia, whereas for green beans, our chief destinations are Italy, Germany, Middle East and India. 4 of peppe of wo the Into Annual Report 2019-20

Transactions. forDetermination ofMateriality Disclosures, Document Retention Policy, Policy andPolicy onRelated Party MaterialSubsidiary Non-Executive Directors, investor-related Policy, policieslikeDividend Distribution Prevention ofInsider Trading Policy, Policy for Policy,Quality CSRPolicy, Prevention Harassment ofSexual (POSH)Policy, HumanResource (HR)Policy, Code for ofConduct local laws, Tata Coffee hasestablishedpolicies,various suchas Whistle Blower Policy,Safety HealthEnvironment (SHE) Policy, Tata Coffee hasadopted the Tata Code of aConduct, level policy. Basedontheoperating geographies andapplicable Nine Principles by the our operations. At Tata Coffee, ourmissionis to create long-term distinctive value for allstakeholders by embracing across sustainable practices PRINCIPLE WISE (AS PERNVGs) (REPLY BRPOLICY/POLICIES IN Y/N) Email ID Telephone number Designation Name DIN number ofDirector responsibleDetails for implementation ofBRpolicy D:BUSINESSRESPONSIBILITY(BR)INFORMATIONSECTION entities? [Less than 30%,30-60%,over 60%] of theCompany? yes, If thenindicate thepercentage ofsuchentity/ the Company intheBRinitiatives doesbusiness with,whoparticipate Are there any other (e.g.entity/entities suppliers, distributors, etc.) that Companyindicate (ies)? thenumberofsuchsubsidiary (BR)initiativesResponsibility oftheparent company? yes, If then Company/Companies in the Business the Subsidiary Do participate theCompanyDoes have Company/Companies? any subsidiary C:OTHERSECTION DETAILS inwhichCSRexpenditureList ofactivities hasbeenincurred Total spendingonCSRasapercentage ofaverage Netprofit for last3 Financial Years Total profit taxes after Total turnover Paid upcapital B:FINANCIALDETAILSSECTION OF THE COMPANY Business ResponsibilityReport[Contd.] r National Voluntary Guidelines r ld Principle 9:Customer Value [P9] Principle 8:Inclusive Growth [P8] Principle 7:Policy Advocacy [P7] Principle 6:Environment [P6] Principle [P5] 5:HumanRights Principle 4:Stakeholder Engagement [P4] Principle 3:Employees’ Well-being [P3] Principle 2:Product [P2] Lifecycle Sustainability Principle 1:Ethics, Transparency andAccountability [P1] [email protected] +91 8023561976/81 Managing Director &CEO Purackal Thomas Chacko 05215974 are to expected abideby ourpolicies. onissuesrelated topartners businessresponsibility. All our suppliers communities around our operations, customers and other business Yes, we engagewithourkeystakeholders, actively suchassupplier, our BRinitiatives inlinewithourpolicies. in policies areOur to extended and they participate our subsidiaries • Tata Coffee Vietnam Company Limited, Vietnam • Eight O’ ClockCoffee Company, USA • Eight O’ ClockHoldingsInc., USA • Consolidated CoffeeInc., USA We have 4subsidiaries: Please refer to Annexure -DofBoard’s for details Report 2.00% (`1.36Crore) `775.75 Crore `73.21 Crore `18.68 Crore 5

Questions P1 P2 P3 P4 P5 P6 P7 P8 P9 Do you have policy/policies for# Y Y Y Y Y Y Y Y Y Has the policy been formulated in consultation with the relevant Y Y Y Y Y Y Y Y Y stakeholders? Does the policy conform to any national/international standards? If Y Y Y Y Y Y Y Y Y yes, specify? Has the policy been approved by the Board? If yes, has it been signed Policies, as required by the applicable statutes, are approved by the by MD/Owner/CEO/appropriate Board Director? Board/Committee, and other internal policies are approved by the Managing Director. Does the Company have a specified Committee of the Board/Director/ Y Y Y Y Y Y Y Y Y Official to oversee the implementation of the policy? Indicate the link for the policy to be viewed online All our policies are made available to respective stakeholders. Some of our policies are available on the Company’s website at www.tatacoffee. com Has the policy been formally communicated to all relevant internal and Y Y Y Y Y Y Y Y Y external stakeholders? Does the Company have an in-house structure to implement the Y Y Y Y Y Y Y Y Y policy/policies? Does the Company have a grievance redressal mechanism related to Y Y Y Y Y Y Y Y Y statutory reports the policy/policies to address stakeholders’ grievances related to the policy/policies? Has the Company carried out independent audit/evaluation of the All policies undergo regular monitoring and review by respective working of this policy by an internal or external agency? policy owners. Our management systems are also externally certified. Our policies comply with all applicable local laws. They are also aligned with the principles of the National Voluntary Guidelines. In addition to this, we have externally certified management systems.

PRINCIPLE WISE DETAILS Company had 8 Directors, of which 2 are Executive Directors and 6 are Non-Executive, of which 4 are Independent Directors. Principle 1: ETHICS, TRANSPARENCY AND ACCOUNTABILITY The Chairman and 75% of the Members on the Board are BUSINESSES SHOULD CONDUCT AND GOVERN THEMSELVES Non-Executive Directors. The Board of Directors along with WITH ETHICS, TRANSPARENCY AND ACCOUNTABILITY its committees provide leadership and guidance to the Tata Coffee has a strong legacy of fair, transparent and ethical management and directs and supervises the performance governance practices and it forms an integral part of our pursuit of the Company, thereby enhancing stakeholder value. The Company has Audit Committee, Nomination and Remuneration towards excellence, growth and value creation. Committee, Stakeholders Relationship Committee, Risk Corporate Governance Management Committee and Corporate Social Responsibility At Tata Coffee, we are committed to the highest standards of Committee. corporate governance based on transparency, accountability, Our strong governance mechanism ensures that the affairs values and ethics. We have adopted Governance Guidelines, of the Company are managed in the best interest of all which encompass all the aspects relating to the governance stakeholders. The Company is following the requirements of of the Company, such as composition and role of the Board, Corporate Governance stipulated in SEBI (Listing Obligations Chairman and Directors, Board diversity, definition of and Disclosure Requirements) Regulations, 2015 (SEBI Listing independence, term of Directors, retirement age, Committees Regulations). of the Board and mandates of the Board Committees, among others. Risk Management Tata Coffee has adopted a comprehensive Risk Management We have constituted our Board of Directors with an optimum Policy to ensure that there are sound practices in place to combination of Executive and Non-Executive Directors, address business risks and concerns. We have constituted a including a Woman Director. As on March 31, 2020, the Risk Management Committee, which is entrusted with the 6 of peppe of wo the Into Annual Report 2019-20 areas ofimprovement. experience foron the practices and potential ethical conduct and Employee Engagement Survey, whichseekemployee’s is evaluated through Leadership BusinessEthics Survey The effectiveness ofthe implementationCode of Conduct Committee. concern isnotresolved within90days, itisescalated to Audit In casethe duration. responsible personswithinapre-defined stakeholders to register theirconcerns, whichare addressed by them. A24*7multilinguisticEthics Helplineisavailable for all to enhance theunderstanding of the guidelines among sessionsare sharing trainings conducted andknowledge and regularly communicated to allstakeholders. Regular The Tata Code is translated of Conduct into regional languages Counsellors and Estate Ethics Counsellors. bottom through Company Ethics Counsellor, Location Ethics the Principal Ethics Officer. The iscascaded tothe responsibility responsibility ofimplementing theCode rests ofConduct with The Audit Committee hasBoard-level oversight and theprimary stakeholders andourgroup companies. venture orotherbusinessassociates, financial partners providers,including suppliersandservice consultants, joint the environment in which we operate and value chain partners, Managing &Executive Directors), customers, thecommunities, to isextended of Conduct allouremployees (includingthe guides usonvalues, ethicsandbusinessprinciples. The Code The Company hasadopted the Tata Code ofConduct, which Tata Code ofConduct controls. bears additionaloversight inthearearisks and offinancial oncontinuingmitigating basis. actions The Audit Committee are systematicallybusiness andfunctions addressed through reviewedperiodically by theBoard. The identified risks by the and health and safety, ismaintained by the Company andis social- andenvironment-related risks, suchasclimate change registerA risk to listingthe major risks business, including plan,monitoring andreporting. implementation ofaction assessment, development ofmitigation strategy, The management risk process covers identification, risk reputational that andotherrisks have beenidentified. such asstrategic, financial, liquidity, security, regulatory, legal, and (c)overseeing that alltherisks organisation faces, (b) approving theCompany’s Framework; Management Risk management comprehensive; ourrisk practices in making responsibility ofassistingtheBoard in(a)providing insights Business ResponsibilityReport[Contd.] r r ld highest levels ofvalues and businessethics. drive excellence that we do, ineverything whileupholding We have alsoadopted the Tata BusinessExcellence Model, to Audit Committee. the Company have beendeniedaccess to ofthe theChairman of employees.victimisation that is affirmed no personnel of It the Directors and provides adequate safeguards against violations to orsuspected actual to report opportunities and POSHPolicy inplace. Whistle Blower Policy provides stakeholders, we have the Whistle Blower Policy, Policy Gift To strengthen across ethicalconduct theorganisation and Conduct Complaints related to Tata Code of withstand changescausedby globalwarming. across ourplantations to ensure ofcrops sustainability to At Tata Coffee, we continue to focus onadvanced agronomy Sustainable agriculture Procedures. ofour Standard Operatingdisease management isalsoapart the ecological balance at ourlocations. Integrated pestand usage ofvaluable natural resources. This enablesusto sustain andcroppingsoil nutrition patterns, coupled withan optimal unique cultivation are practices based on scientific mapping of soil, water andbiodiversity inandaround ourplantations. Our technologies eco-friendly and work towards the enriching followed at Tata Coffee.It is our constant endeavour to use isembeddedintoSustainability theagricultural practices atSustainability ourplantations processing facilities. energy andwaste management at all ourplantations and on water energy efficiency, conservation, useof renewable to ensureefforts that ouroperations are sustainable. We focus as changesinenvironment regulations. We maketremendous we are cognisant to ofoursusceptibility climate changeaswell the questionofbusinesscontinuity of Tata Coffee. As abusiness, change is a threat to of coffee, the production thereby posing for coffee.critical ofquality thesustainableproduction Climate A balance ofnumerous environmental is andsocialfactors LIFECYCLETHROUGHOUT THEIR THAT ARESAFEANDCONTRIBUTE TO SUSTAINABILITY BUSINESSES SHOULDPROVIDE GOODSANDSERVICES PRINCIPLE 2:PRODUCTS LIFECYCLE SUSTAINABILITY Tata Code concerns ofConduct for FY2019-20: Received No. ofstakeholder complaints 6 Resolved 5 Pending 1 7

Some of the key sustainable cultivation practices are listed here. We have adopted a structured water management programme spanning water conservation, waste water treatment and • We use soil nutrient analysis, leaf diagnostic analysis and rainwater harvesting, among others. We have invested in the Soil Nutrient Index to maintain soil health. The results water-efficient technologies to achieve these objectives. Our are used to optimise fertiliser recommendation and soil approach to water conservation also includes programmes amendment. that help spread awareness and build capacities across all • We employ intercropping – growing coffee along with stakeholders. other crops like pepper, vanilla, oranges and areca nuts, amid lush canopies of shade trees – to promote It is imperative to not use groundwater for irrigation and biodiversity and ensure optimal usage of valuable natural during the processing of coffee/pepper. We have installed resources. Our estates are extensively intercropped with reservoirs/tanks in the catchment areas of the plantations that pepper vines, producing about 1,000 MT of pepper. are excavated/desilted or extended to meet the irrigational requirements. The present capacity is 34 lakh cubic metre, • We use the Varietal Trial Experiment of coffee, pepper and capable of catering to our entire Robusta crop for its blossom cardamom to identify a selection of location-specific, high- and backing irrigation needs, as well as watering our pepper yielding and pest-, disease- and drought-tolerant plants vines. for sowing in our estates. We monitor and track the quantum of water used through • We implement agro-waste management and recycling, water flow meters. Although control operations constitute a

with the help of large-scale production of quality compost statutory reports miniscule portion of our total water use, we have adopted all with improved technology. We are incorporating a possible measures to optimise water consumption during the beneficial microbial concoction, prepared in-house, to spraying of fertilisers, pesticides and weedicides. Not just the enhance the soil fertility status and manage soil-borne water used for spraying, we take measures as per stipulated diseases. guidelines of our certification standards in discharging the • We are culturing beneficial fungus for integrated disease wastewater and ensuring that surface water sources around the management. estates are not contaminated. • We conduct an irrigation study to understand drip and Some of the other initiatives undertaken to manage water basin irrigation for our Robusta crop. efficiently are listed here. • We adopt apiculture and pisciculture practices. • We introduced the Global Positioning System (GPS) • We undertake shade management, assessing light to enhance the operational efficiency of our irrigation intensity that is critical to our agronomic practices. We process. have over one million shade trees in our plantations. • We recycle and reuse water, completely preventing the • We participate in collaborative research to develop less discharge of pollutants to natural water bodies. hazardous, environment-friendly agro-chemicals and pheromones for sustainable agriculture. • We track domestic water usage to understand the water usage pattern of our employees. • We ensure the preservation of the environment, through surface water analysis, pesticide residue analysis and so • We supply all our residential colonies with septic tanks on. to prevent negative impact on groundwater. Wastewater from the washing of the machinery/Personal Protective • Our coffee and pepper cultivation follow organic farming Equipment (PPE) post the use of agro-chemicals is standards, such as the National Programme for Organic collected separately. Production (India) and the National Organic Program (USA). • We use advanced systems such as eco-pulpers and high- efficiency sprayers to minimise water consumption. Water management Water is very critical for our business and our sustainable Energy efficiency and renewable energy irrigation practices allow us to mitigate and partially manage Sustenance of large green vegetative cover at plantations the vagaries of the weather. Our rainwater harvesting assets contributes to our negative carbon footprint of 1.71 lakh serve a complete range of pre- and post-blossom irrigation tonnes of CO2 equivalent annually, making it a source of huge requirements. carbon sink. 8 of peppe of wo the Into Annual Report 2019-20 reduction inspecific reduction water consumption, amongothers. work environment inenergy likereduction consumption and improvement round projects the year to create aneco-friendly solid waste management andsoon. There are continuous harvesting, useofrenewable energy likewindandsolar, allocate resources focus. and sharpen These includerainwater andlongterm to over reduction protection andcarbon short At Tata Coffee, we have initiativesvarious onenvironment • • of climate changeinouractivities. follow multi-fold approach inourendeavour to offset theeffect change by adoptingenvironment technologies. friendly We Tata Coffee is committed to playing aleading role inclimate atSustainability ourfacilities technology.management andpost-harvest current/new trends incultivation practices, pestanddisease Circulars to estates andto ourcustomers onupdated migrant labouronaregular basis. We issuemonthly Advisory plantations are for conducted estate personnel including Trainings onawareness related to operations critical at schools ontopics related to environment protection. (RFA) certification. trainings We also at neighbourhood conduct fauna, andwaste management alignedForest to Rain Alliance ofecosystems,communities onconservation water, flora and We regular conduct awareness sessions for the local Knowledge sharing least hazardous anddo notuseany prohibited chemicals. We useagrochemical, ofthe WHO classcategory, whichare Use ofleasthazardous/organic fertilisers and windenergy to 18.4%in overall power pattern. resulted inimprovement ofrenewable energy, including solar increasing the overall to 1000kWp. solarcapacity This has Theni unitaddedadditional500kWp solarplant capacity, exhibit thesameto drive behavioural changes. We consumption onamonthly basisand monitor electricity engines usedto pumpwater withenergy efficient motors. mounted solarPVs at theestate. At Coorg, we replaced diesel in thecurrent Financial Year. Also, we roof installed200-kilowatt power at Anamallais andwe units planto scaleitupto 4lakh thelastFinancialIn Year, we procured unitsofwind 2lakh Business ResponsibilityReport[Contd.] r naig ciey n doaig n saig climate shaping and change regulations. advocating in actively Engaging in pioneers being by plantation industry. footprint carbon our Measuring r ld reduction consumptionreduction of5000KLand900MT coal. recovery from factor 62%to 79%withanannualized water System.Recovery This initiative led to anincrease ofcondensate Theni Coffee UnitofInstant Divisioninvested on Condensate and windenergy generation to biomass. renewable facilities, energy from at ourmanufacturing solar for lines. allourproduct We have aggressively promoted processes andreducing thespecific consumption of resources We have been successful in improving of our the efficiency we are cognisant ofourrole incombating climate change. As a Tata Company andanenvironment-friendly organisation, andEnergy renewable efficiency energy initiatives, with UTZ andRFA theunitsare certified as well. ofthesame.norms Focusing onenvironmental sustainability System i.e., ISO14001:2015complying withthestringent underlatest certified versions ofEnvironmentalManagement theunitsofinstantBoth coffee division at Theni and Toopran are organisation. into dashboard at various levels to aid in decision- the making designed to capture relevant data at source andtranslate them Performance (SuPM)Sustainability Management software, to drive excellence insustainability. We have alsoimplemented incorporates all systems and processes in one unified framework facilitiesarefor IMSwhich The certified manufacturing demonstrated consistent improvement. facilities in winning manufacturing Toopran and Theni andwe improvementsleadership through performance at ouraward- goalistoOur establishaculture ofcare, demonstrating Environmental management intheinstant coffee division aspects are governedaspects by overarching ISO14001:2015standards. areas andoperationalfunctional Environmental aspects. safety into acommon enablingalignment framework, across environmental management andoccupational healthand international standards, assurance, combining quality IntegratedOur Systems Management (IMS)adhere to indicators –energy, emissions water andwaste, amongothers. measurable targets for keyenvironmental performance We have institutionalised anEnvironmental Policy to articulate a holistic view of the arena to continuously improve the same. A systematic approach to environment management requires practices to adopt environmentallyand partners sound and sustainable and we andencourage educate, actively ourvendors support environmentOur stewardship beyond extends ourpremises 9

Managing water and waste In line with our objective of promoting inclusive development, Effective water management is critical to the overall sustainability we promote local sourcing. Some of the products and services of our operations and we seek to progressively reduce the procured locally are: quantity of water consumption, expand water conservation • Agri briquettes (used as a primary fuel for our instant measure at our facilities and replenish groundwater levels at our coffee factory in Toopran) communities. Coffee processing is carried out using advanced Columbian and Brazilian pulping technologies, which ensure • Agro-chemicals minimum water usage, thereby bearing a direct impact on • Maintenance and civil works as well as procurement of water consumption and pulping discharge. Indigenous pulping material units with low water consumption have been commissioned to • Transport of green coffee from our estates to Kushalnagar reduce and recycle the treated water for irrigation. Through and tea from Anamallais to Kochi measures to improve water conservation and efficient use, we have reduced our specific water consumption consistently. We also undertake business with small traders at our estates in remote areas. Personnel for security and other facility An on-site Effluent Treatment Plant (ETP) and a Reverse Osmosis management services are sourced locally. (RO) system ensures that our wastewater and liquid effluents are effectively treated following the Reduce, Recycle and Reuse PRINCIPLE 3: EMPLOYEES’ WELL-BEING (3R) principle. Our plant at Theni is a Zero-Liquid-Discharge BUSINESSES SHOULD PROMOTE THE WELL-BEING OF ALL statutory reports (ZLD) facility and has systems in place to reduce, reuse and EMPLOYEES recycle the wastewater generated. ~26 kilo litres per day (KLD) Tata Coffee aims to create a working environment which of effluent water is treated and reused in the boiler and other supports the holistic development of its employees. We have utility equipment at Toopran. developed different programmes to cater to the development needs of our employees. Waste management practices are implemented across our operations, divisions and supply chain, based on the 3R A profile of our employees is given below. principles. We continually seek opportunities to minimise waste and conserve resources, leading to a reduction in the specific Employee category < 30 30 – 50 > 50 Total years years years Nos. waste generated. We have installed electrostatic precipitators Permanent employees 195 3266 2226 5687 (ESPs) for our boiler operations to control and improve boiler Retainers 0 0 1 1 stack emissions, unique to this industry. Casual/Temporary 2565 3816 985 7366 Theni Unit of Instant Coffee Division invested on Condensate Contractual employees 172 353 44 569 Recovery System. This initiative led to an annualized water Total 2932 7435 3256 13623 reduction consumption of 5000KL. Employee well-being Sustainable procurement Tata Coffee provides a host of benefits and services to At Tata Coffee, we select our suppliers and service providers its employees and most of this is well beyond statutory fairly and transparently and expect them to adopt ethical requirements to meet the needs of different categories of standards comparable to our own. Our value chain partners, employees. Tata Coffee also has robust employee health and including suppliers, service providers and distributors, are wellness initiatives in place, which cut across geographies and bound by the Tata Code of Conduct. segments of workforce.

We expect our suppliers to adhere to environmental and For staff and workers, periodic health check-ups, de-addiction social standards as mentioned in the Tata Code of Conduct. and ‘Art of Living’ programmes are conducted across locations. We conduct vendor/supplier meets, where we discuss the Talent development expectations of the Code of Conduct. We also prefer to source Our Company focuses on welfare and improving skills products/services, which are environmentally sustainable. For and knowledge of employees by providing training and example, we procure energy-efficient motors, other electrical development. We study the training needs of our employees, accessories and appliances. All IT assets are sourced from including non-management staff at locations and business companies complying with sustainability standards. levels and provide relevant training programmes. 10 of peppe of wo the Into Annual Report 2019-20 race, caste, religion, colour, ancestry, status, marital gender, not promote any onany unfairpractices grounds, including We to allouremployees provide anddo equalopportunities Diversity andinclusion provided ofthisprogramme. to theemployees aspart rewards as well areas non-monetary engagement. Monetary Excellence’ inorder to encourage andfoster employee recognition andhasdeployed practices aportal ‘Blending The Company focuses reward onbuildingbest-in-class and where comes everyone together andhave agoodtime. intheCSRinitiatives.participate We celebrate major festivals, We celebrate CSRweek where allemployees proactively growth and –learning Learning opportunities well Execution excellence to dojob –authority Effective communication Leadership effectiveness index Overall loyalty Overall advocacy Overall satisfaction (on ascaleof0–5) Critical engagement factors improvement engagement incritical factors. the employees. The recent YOU hasindicated significant survey surveys, programmes are planned to improve themorale of levels.and satisfaction Based on thefeedback from the to engagement assessemployee surveys conduct engagement withbusinesses. inpartnership HR department We regularly conversations andexit interviews, are implemented by the managementperiodic andHRconnects, review meetings, open reflecting communication. suchas actions, Structured Tata Coffee deploys robust processes fostering aculture Employee engagement changesthat canaffectourbusiness.of thestatutory amongst others, inourtraining calendarto address theneeds trainings. We have introduced likePlantation subjects Law, process. This includes technical, behavioural and functional appraisal oftheperformance employees andmanagersaspart We also organise various trainings based on the feedback of Safety &health,Hygieneworkplace training, amongothers. identified inthebeginning ofthe year e.g. Food safety and The course includesorganisation-wide behavioural training like ethics management.and values and animal conflict subjects matters andfuture strategic needs. We alsodevote focus on We train our employees current on critical operations-related Business ResponsibilityReport[Contd.] r r ld YOU 2017 3.90 3.52 3.52 3.70 3.96 3.89 4.47 YOU 2019 4.35 4.01 3.95 4.12 4.37 4.31 4.70 Occupational Health(OHS) andSafety • • listed here: thefiscal during year are undertaken ofthe key activities Some to assessandensure healthandwelfare facilitiesofworkmen. coveringthrough and labour lines agency workplace external well trained. Welfare andsafety annually auditisconducted orotherchemicalsubstancesencounter are agro-chemicals any emergency. All workers whoapply, or handle, transport are facilitiesto wash equippedwitheye-wash eyes incaseof and locations where agrochemicals are mixed anddistributed proper mitigation planfor allofthese. Chemicalstorage areas andfire andirrigation hazards are(HEC), identified, and we have at conflict height (WAH),including working human-elephant trainings andregular medicalcheck-ups. All majorhazards, based onoperational control plan(OCP), mockdrills, firstaid Analysis orHIRA),and Risk safety training, systematic trainings We regular assessment conduct risk (Hazard Identification commitment to thewell-being ofourworkforce. Social tofor be certified Accountability 8000, invigorating our agro-chemicals. We are theonlycoffee plantation company and safely and withaspecialfocus onhandling ofmachinery educate outtheirwork correctly workers onhow to carry and rulesare followed, includingtraining programmes to the sites/location who ensure the required safety procedures management system, there are safety coordinators at eachof month Also, ofoursafety every our SHEperformance aspart Safety, Health and Environment (SHE) Council which reviews in ouroperations gets hurt. one working We have adedicated ofSafety excellence onajourney embarked withaimthat no Safety, beingoneofour Values andwithvisionofZero Harm, TCL management team. presence ofonedifferently-abled representative inthetalent employee, inaccordance withourpolicy, whichspecifiesthe thefiscal In year 2019-20, we onboarded onedifferently-abled competence merit, performance, andpotential. promoting our employees, our decisions are based solely on management. performance When recruiting, developing and provide clearterms ofemployment, training, development and protectedany by othercategory applicablelaws. policies Our sexual orientation, age, nationality, or ethnicorigin, disability eiw n Rl ot f H ad od Diig Safety Driving & Road Policy and SHE of out Roll and Review leadershipteam withSenior starting locations all across mechanism governance SHE Robust 11

• ‘Felt Leadership’ workshop for senior leadership and PRINCIPLE 4: STAKEHOLDER ENGAGEMENT: certification programme for safety coordinators across locations BUSINESSES SHOULD RESPECT THE INTERESTS OF, AND BE RESPONSIVE TOWARDS ALL STAKEHOLDERS, ESPECIALLY • Focus and roll out of Proactive Safety Indicators (PSI) THOSE WHO ARE DISADVANTAGED, VULNERABLE AND MARGINALISED • Focus work group created on work on mitigation on risk At Tata Coffee, we believe in being responsible and sensitive activity to our stakeholders. We strive to be caring, respectful and • Safety Campaigns initiated: i-Drive Safe and Zero Harm compassionate to our employees and customers around the Pepper world, and always work for the benefit of the communities we serve. Our objective is to ensure that we return to the people • Executed safety audits process improvement much more than what they have invested in us – in every • Use of technology and various improvement projects on country, community and environment where we work. safety Depending on a direct relationship of impact, influence and • Focus on emergency planning and mock drills proximity or relevance, we have identified the following stakeholder groups for engagement: • Increased safety trainings and communication on safety • Customers • Focused awareness for employees on HEC

• Employees statutory reports There has been no fatality in our operations and overall 18.8% • Investors reduction in total recordable injuries in this FY with respect to • Suppliers and other value chain partners last year and ~31% increase in manhours training. • Local communities, especially the disadvantaged and the Details on key performance indicators are listed below: vulnerable sections • NGO partners Safety & Health Performance 2017-18 2018-19 2019-20 Number of unsafe situations 14368 20841 21624 In running our businesses, we consider the interests and observed – behaviours, concerns of our stakeholders. We have different mechanisms conditions, near misses through which we engage with them and understand their concerns. Details of mode of engagements and stakeholder Total Training manhours 74238 82017 107137 concerns are discussed below. Number of health awareness 555 690 890 sessions conducted We have developed organisation-wide processes to ensure that stakeholder interests are attended to and concerns are Number of fatalities 4 1 0 addressed. We regularly communicate on our policies and Number of total recordable cases 134 96 78 processes to stakeholders and have provided avenues to raise (TRC) concerns or queries in good faith, or report instances of actual Number of Lost Time Injuries (LTI) 103 78 67 or perceived violations of our Code. Number of major fires 2 0 1 We also developed targeted programmes to contribute to the Number of HIPO (High Potential) 2 4 26 well-being of our stakeholders. incidents PRINCIPLE 5: HUMAN RIGHTS Details on the percentage of employees given safety and skill BUSINESSES SHOULD RESPECT AND PROMOTE HUMAN upgradation training last year are listed here. RIGHTS Tata Coffee respects human rights and upholds its highest Employee category Percentage principles. Permanent employees (PE) 93% Gender Diversity Permanent women employees 92% Out of the workforce base of 13623, we have ~53% of female employees across the Company and across all the Business Casual/Temporary/Contractual employees 100% Units, including Corporate functions. 12 of peppe of wo the Into Annual Report 2019-20 home to about 3,049 native species of flora and 496 species of Tata Coffee’s estates, areas, alongwith neighbouring are Forest andwildlife conservation estates. existing natural ecosystems, both inside andoutsideour of theregion. heritage the rich We identify, protect andrestore Ghats – and therefore, for usto importance protect itis of prime operate. We operate inabiodiversity hotspot–the Western and we takeduecognisance oftheecosystem inwhichwe environmentOur stewardship beyond extends ourpremises TO RESTORE THE ENVIRONMENT BUSINESS SHOULDRESPECT, PROTECT ANDMAKE EFFORTS PRINCIPLE 6:ENVIRONMENT appropriate taken. actions sexual harassment, 5ofwhich have beendisposed of and FY 2019-20, the CompanyDuring received 6 complaints on sexual harassment andrecommend appropriate action. asthePOSHCommittee,known to enquire into complaints of We have alsoconstituted Complaints anInternal Committee, a safe environment, working where employees feel secure. or connected incidental thereto, of providing with the objective and redress complaints ofsexual harassment andfor matters aims to provide protection to employees at theworkplace and Redressal Harassment ofSexual at workplace. The policy andhaveworkplace adopted aPolicy onPrevention, Prohibition We, at Tata Coffee, have zero tolerance for sexual harassment at POSH union. and laws. 90%ofouremployees ofthisrecognised are part andinaccordanceConduct withapplicable Company policies Interest of asper the Conflicts clause of theactivity Tata Code of our employees to approval notifyandseekprior for any such potential withtheinterests conflict ofour Company. We expect capacities, provided donotcreate or suchactivities anactual involve themselves incivicorpublicaffairstheirpersonal We recognise therightofemployees to joinassociations or Freedom ofassociation andcollective bargaining These auditscover likechild, forced aspects orbondedlabour. agencies to assess the external welfare index of the estates. Once inatwo-year period, we welfare conduct auditsemploying laidoutinthe principles Tata Code ofConduct. associated with theCompanybusiness partners to follow the and encourage oursuppliers, vendors, contractors andother We donotdeploy forced labourofany form inouroperations work towards puttingchildren backinschools. At Tata Coffee, prohibited. childlabourisstrictly We actively Child andforced labour Business ResponsibilityReport[Contd.] r r ld • • are associated bodies. withthefollowing industry relevant to theindustry, the Company anditsstakeholders. We Tata Coffee in various forums participating hasbeenactively legislation. representatives andofficials, aimed atinfluencing regulation or required for initiating any between theCompany, contact its interact with these organisations. Prior internal approval is andappropriatelyOnly authorised trained individualscan fairness, andincompliance transparency withapplicablelaws. legislators, regulators orNGOsmustbedonewithethics, the Company oritsbusinessassociates withgovernment, Code ofConduct. The Code provides that any by contact Company’sOur approach isguidedby to the advocacy Tata MANNER REGULATORY POLICY, SHOULDDOSOINARESPONSIBLE BUSINESSES, WHEN ENGAGED ININFLUENCING PUBLICAND ADVOCACYPRINCIPLE 7:POLICY areas.at selected rejuvenating lakes, thereby maintaining hydrological balance programme. We withthe partner Water Project Literacy for ofourCSR We water aspart projects conservation undertake Water conservation Competition. IQNational Safety the Confederation Industry ofIndian Safety’ trophy for project,at itselephant conservation The Company was awarded the ‘Excellence in Work Place CSR andvolunteering program inthisyear. the landslideprone ofour areas across Coorg aspart district forInitiated aproject greening andplanting ofvetiver plant in forests. potential HECand create feeding sites for theanimalsinreserve prohibited ontheestates. Our Wildlife Cells helpmitigate wildanimals are strictly andtrafficking capturing, extracting on ourestates register. through awildlife-sighting Hunting, We maintain aninventory ofwildlife andwildlife habitats found anderosion ofchemicalstodrift water bodies. steps. We water analysis to annualsurface checkthe conduct substances emanating from ouragricultural orprocessing and reduce of agrochemicals,impact, the drift dust and other order to promote biodiversity, minimiseany negative visual by planting permanent native vegetation (Acalypha) bushesin endangered plants ortree species. We establishedabuffer zone wildlife. As astandard practice, threatened we do not harvest or antk Patr’ soito ad oau Planters’ Kodagu and Association Association Planters’ Karnataka United Planters’ Association India ofSouthern 13

Tata Coffee is a member of the Confederation of Indian Industry the pressing need of skilling India’s youth for employment, (CII) that works to create and sustain an environment conducive entrepreneurship and community enterprise. The programme to the Indian industry’s growth, partnering industry and develops skills of people from financially challenged government alike through advisory and consultative processes. backgrounds and acclimatises them with the changing work Being a member of such a prestigious industrial development environment. wing, Tata Coffee demonstrated the best practices of effective In association with Tata STRIVE, we work for the cause of women environmental management. empowerment by skilling them to enhance their employability We are also associated with Federation of Telangana and Andhra and bring forth positive change. This Financial Year, we provided Pradesh Chambers of Commerce and Industry (FTAPCCI) and automobile sale consultant training to women from the local have actively participated in the industrial improvement community in Coorg. activities organised by the Federation. Site-specific programmes PRINCIPLE 8: INCLUSIVE GROWTH: Tata Coffee implemented several community initiatives at different geographies where our plantations and factories are BUSINESS SHOULD SUPPORT INCLUSIVE GROWTH AND located. Details of the programmes are listed here. EQUITABLE DEVELOPMENT At Tata Coffee, we believe in inclusive growth and thus Coorg community care and development form an integral part of • Coorg Foundation: It was established in 1994 and is a our agenda. We are committed to making lasting difference separate and independent social wing to better shape and statutory reports through our Corporate Social Responsibility initiatives. scale our community initiatives at Coorg. The Foundation promotes welfare of the local community through a host We promote inclusive growth and equitable development by of economic, environmental and social initiatives. working towards the socio-economic and environmental well- • Swastha: This Centre for Special Education caters to the being of the communities in which we operate. We focus on a needs of the differently abled in the district of Kodagu. The multitude of areas, such as education, health care, ecosystem school imparts special education and vocational training to restoration and skills development. the differently abled children in the age group of 6 through Our approach 18. Students are trained in tailoring, book binding, paper Our programmes are aligned to the critical needs of the bag making, painting hoardings, Artefacts and paper cup communities where we operate. All the programmes are making and are provided with placement opportunities. implemented on the ground through partnerships in different The community-based rehabilitation programme under capacities with credible NGOs in the space. Swastha evaluates the inclusion and normalisation of the differently abled by providing them services in the areas of CSR programmes and initiatives health and education. Tata Coffee identified health, children with disabilities, restoration of hydrological balance and skill development as • Rural India Health Project (RIHP) Hospital at Ammathi: key focus areas for the Company-wide CSR programme, in line Rural India Health Project (RIHP) Hospital situated in the with Tata group’s ideologies. Ammathi village of the Kodagu district was established in 1964. Owned by a charitable trust, it is currently Restoration of hydrological balance managed by Tata Coffee. The vision of the hospital is to One aspect of Tata Coffee’s core value, ‘Responsibility’ is provide the best possible healthcare facilities and advice restoration of hydrological balance. We work to restore lakes round-the-clock at affordable cost to the local community using an innovative lake-in-lake method, in which we are by extending the facility of emergency investigations and supported by our NGO partner – Water Literacy Foundation. treatments. The objective of the programme is to eradicate water shortage faced by the communities in selected geographies and to ensure This hospital has 57 beds and is well-equipped with water security. This prevents migration of local communities ultramodern facilities. In FY 2019-20, health awareness, due to water stress and mitigates the risk of labour shortage in health/nutrition and general health check-up programmes our business. were conducted for various schools in and around Ammathi, Kodagu. Free off-site medical camps and Skill development for women first-aid awareness programmes for common accidents Tata STRIVE, the first Tata group CSR programme is an initiative and protocols to shift patients were also part of 2019-20 of Tata Community Initiatives Trust and is intended to address programme. 14 of peppe of wo the Into Annual Report 2019-20 • • Anamallais • • • • Theni Panchayat. upon verification ofthesanitation facilitiesprovided by the unhygienic areas. The Company provides financialsupport cleaning ofdrain lines, sludgeremoval, dustbinsandother body that oversees thesanitation ofthevillages, including Toopran. Brahmanpally Grama Panchayat asthegoverning acts villages of Venkatapur, Brahmanpally andPadalapally) in and environment ofBrahmanpally Panchayat (covering the of ourCSRproject,whichfocuses onimproving thehygiene Swacha Gramam: This isacleanlinessinitiative that forms part • • • • Toopran Business ResponsibilityReport[Contd.] r the Company inAnamallais, which provides free medical by run hospital 50-bedded a is It Hospital: Central Uralikal of therespective children. arethese products deposited into thepostoffice accounts Proceeds activities. games andsupervised from thesaleof officemaking, covers andbasket weaving,from apart stitching, embroidery, washing candlemaking, powder physiotherapy (for and craft, the children who need it), art take place at thecentre includemeditation, exercises, the workers’ population. that The various activities the well-being ofchildren withspecialneedsfrom among Education orDARE in1996,to work towards was started Rehabilitative for Activities Developmental Project: DARE waste awareness plastics around volunteering and campaign Cleanliness groups. Providing machines amenities toand tailoring the women 560 for adolescent girls medicine and supplement nutritious Providing elderly medicine, providingretinopathy check-up andgeneral healthcampfor the camp, health diabetes Organising government 5 to schools students ofClass10. scholarships merit-based Providing conceptual multi-level matters various subject multi-grade a education for project overall development of students on of Launching coverlamps withexternal box LED using programme conservation energy an up Setting using folk songsorstreet play program awareness de-addiction alcohol an Conducting r ld • in theregion. Group-level welfare community initiatives inbuilding2Anganwadi for children’s inKodagudistrict support warehousing ofrelief suppliesandpostfloodproviding local Tata Group, Sustainability to help withpurchasing, and packing employeesOur too volunteered theirtimeandresources with Kodagu, visited therelief campsandoffered aidandadvice. Health Project Hospital, themedicalCentre at Ammathi, near India attheRural school children. Officer ChiefMedical Our food. We alsoraised fundsto assistintherehabilitation of bedsheets, bath towels, blankets, woollen caps, clothingand and distributed relief kitchen a community supplies such as relocated themto campswhenneeded. Swastha operated provided firewood, dieseland water to thosedisplaced; and estates. teams Our intheestate cleared blockedroadways; Company’s quickresponse prevented any lossoflife inthe the at Kodagu, Karnataka, rains andaminorearthquake Post devastating landslidesandfloodsonaccount ofheavy in PostKodagu support flood schoolstudents from thecommunity.also supported around ourestates to undergo training at theUnnati centre. We sponsored students belonging to inand SC/STcommunity and an eyecare camp for the people of Valparai. We also We medicalcampfor conducted theindigenouscommunity Valparai at avillagepanchayat. with water purifiers, anewpumpset, andpipeline was installed to thelocal community. Ahospitalandaschoolwere provided water initiatives Hassan,we toIn undertook supplydrinking Hassan • with the objective ofsensitising with theobjective Tata employees to Tata Engage: This is a group level volunteering programme and musicclasses. the school has a computer laboratory, yoga besides art, classfacilities. additionto this, In syllabus andhassmart to Class5. kindergarten The schooladoptstheCBSEBoard Wives’ caters Association. to It thechildren from lower The schoolisrunonanot-for-profit basis, by Tata Coffee aim ofproviding education at affordable quality cost. its opened school doors to thechildren ofAnamallais in2007,withthe primary This Vidyasharam: Akshara estate hospitalslocated inourestates intheAnamallais. subsidised rates. This is the main referral hospital for the 6 holds medicalcamps. aidisoffered Medical to outsiders at ofourestates and in thesettlements ontheperiphery freeextends medicalaidto theindigenouspopulation aid to our6,000-plusstrong workforce. The hospitalalso 15

social causes, encouraging them to get involved in the convert dissatisfied customers into delighted ones. The community, and providing them with the opportunity to complaint management process follows a detailed protocol contribute to community. As part of this programme, Tata involving registration of complaints, conducting a root-cause Coffee employees contributed 14,687 volunteering hours. analysis under the concerned department, directly engaging We remain among the top 3 in the Tata group with highest with the customer via multiple stake-holders if necessary and recorded hours spent on volunteering activities across consequently closing the feedback from the customer. sites. Through our customer-centric approach and quality Other community welfare activities management focus, we have achieved a continuous reduction The senior leadership of the Company is involved in different of customer complaints year on year. For our instant coffee community activities. We are associated with the Little Sisters of division, the number of customer complaints received in FY the Poor, Karnataka Association for the Blind and Karunashraya 2019-20 were 47, of which 4 complaints are pending to be Bangalore Hospital Trust, and our leaders volunteer at these resolved as of March 31, 2020. For our green coffee division, three organisations, besides supporting them financially. we received 6 complaints in FY 2019-20 and one complaint is PRINCIPLE 9: CUSTOMER VALUE: pending resolution. BUSINESS SHOULD ENGAGE WITH AND PROVIDE VALUE TO Our emphasis on innovation is demonstrated by the large THEIR CUSTOMERS AND CONSUMERS IN A RESPONSIBLE number of new products commercialised in the last Financial

MANNER Year. A total of 13 new products and 45 modified products statutory reports Customer centricity is one of the core pillars of our business were developed by the New Product Development (NPD) and it is cascaded to every Tata Coffee employee. The intricate department of our instant coffee division. system that we have in place to listen to and anticipate customer requirements has helped us deliver a range of new, Driving operational excellence through various certifications improved and customised products. Our food safety certifications, Halaal and Kosher, specifically address concerns of different customs. Our UTZ certification is We have different mechanisms to build relationships with for our sustainable farming and sourcing of beans from farms to our customers and we continuously engage with them to understand their concerns and be more responsive to their produce soluble coffee. needs. Key mechanisms to capture customer inputs are Global Food Safety Initiative (GFSI) is another organisation customer meets and the customer satisfaction survey. which plays an important role in food safety systems. GFSI Our Company has a robust system for tracking customer has benchmarked existing food safety schemes. The current grievances and complaints, the Complaint Management list of GFSI schemes includes FSSC 22000, SQF, British Retail System. Its objective is to manage feedback effectively and Consortium (BRC) and others. It does not include ISO 22000.

The Business Responsibility Report can be viewed on the Company’s website at https://tatacoffee.com/sites/default/files/ collaterals/Business-Responsibility-Report-2019-20.pdf