ESG action report
Our Company is committed to embedding environmental, social and governance (ESG) principles into its business operations. Sustainability has always been a core focus and we view ESG as the key driver of long-term stakeholder value and a means to improve the quality of life in the communities we serve. Materiality is central to the business strategy of our Company and thus through structured stakeholder engagement, we identify and prioritise ESG issues material to the business and ecosystem. This section offers a comprehensive overview of the ESG commitments, actions and their impacts.
ESG framework
We have integrated environment, social and governance (ESG) framework into the business strategy of our Company based on the belief that ESG and financial performance make a business sustainable. We are continually working towards the ESG and financial objectives to make a positive difference to all the stakeholders. We constituted an internal ESG Committee in May 2023 to oversee the governance of ESG practices and ESG risks, thereby ensuring that the ESG agenda gets the requisite attention and resources of the Management.
ESG governance structure
Environmental
Our Company has been sensitive to the environment since its inception. The natural forest created at the first site makes it one of the greenest chemical complexes of its kind in the world. The environmental commitments undertaken, focus on manufacturing responsible products and addressing their environmental impact throughout their life cycles. These impacts include climate change, resource use (energy and water), waste management and nature conservation. We are committed to creating a sustainable and equitable future for all, striving to achieve a balance between financial value and environmental stewardship.
SDGs impacted
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*consolidated basis
Mitigating climate change and reducing greenhouse gas emissions
We are aware of the growing risks of climate change and recognise the need to mitigate its challenges by reducing greenhouse emissions, adopting sustainable practices across the operations and remaining committed to reducing the carbon footprint through ongoing initiatives.
- Achieved a 25% reduction in steam usage by optimising unit operations and a 29% reduction in power consumption by enhancing utility and operational efficiency in a plant thus reducing the carbon footprint.
- Reduced PNG consumption in a plant by 64%.
- Used 70 TPD steam generated from process heat in a plant and recovered 100 TPD of steam from distillation operations, reducing the use of carbon fuel in production.
SDGs impacted
Conserving water through responsible water management
We are committed to managing water responsibly through efficient usage, recycling and various conservation initiatives.
- Achieved a reduction of 10.74 kL/MT in freshwater consumption during the manufacturing of a product by recycling wastewater.
- Attained a 23% reduction in water consumption in a plant by recycling multi-effect evaporator condensate and vacuum belt filter wash water in process.
- Optimised water consumption by improving the washing process in the manufacturing of select products and recycling condensate water in others.
SDG impacted
Managing pollutants
We effectively managed pollutants through reduction, recycling and reuse, ensuring compliance with sustainability standards and promoting a circular economy.
- Achieved a 20% reduction in solid waste disposal by eliminating the use of Hyflow in filtration process during the manufacturing of a product.
- Introduced process improvement in a few products to decrease generation of pollutants and recovered a product for reuse.
- Optimised raw material usage in a few products, resulting in reduced liquid effluent generation.
SDG impacted
Energy management and energy efficiency
We focused on optimising energy use by enhancing efficiency, adopting renewable sources and implementing decarbonisation plans.
- Increased hybrid power (solar + wind) capacity from 3.96 MW to 6.86 MW and installed a 300 kW solar rooftop at the plant premises, which is expected to generate 4.33 lakh kWh of renewable power annually.
- Replaced pressure reducing desuperheater stations with energy-conserving turbines of 250 kW and 315 kW capacities, improving efficiency and saving 10.56 lakh kWh of power.
- Used an energy-efficient motor for demineralised water transfer pump in a power plant, saving 16,800 kWh of power per year, and installed 500 kW HT variable frequency drives for boiler feed pumps at two power plants, saving 1.38 lakh kWh per year.
SDGs impacted
Biodiversity and its conservation
The green zones, which constitute a significant portion of the Atul and Ankleshwar sites, provide a nurturing habitat for various species of flora and fauna, including indigenous species as well as several migratory birds. A comprehensive biodiversity study of Atul site identified about 330 plant species and 136 faunal species. We take responsible steps to protect the vast flora and fauna diversity in Atul.
SDGs impacted
Common Kingfisher
Social
Our Company is committed to creating a positive social impact since its founding 78 years ago. We place the communities, people, supply chain partners and other stakeholders at the centre of all that we do. The social responsibility goals include, ensuring clean, safe, healthy and fair working conditions for the team members and business partners. We strive to be a trusted community partner in the locations where we operate and actively support their equitable and inclusive development. To fulfil these commitments, we have established comprehensive policies, including Corporate Social Responsibility Policy, Employee Health and Safety Policy, Stakeholder Relationship Policy, Equal Opportunity Policy and Human Rights Policy. We remain dedicated to enhancing the well-being of the people and contributing to a fairer and more inclusive world.
SDGs impacted
People
With the business landscape constantly evolving, a future-ready workplace capable of navigating the challenges and leveraging opportunities of tomorrow is crucial for sustainable growth. We believe that nurturing a culture of high performance and engagement, while empowering team members to be the best version of themselves, is key to achieving inclusive growth. The aim is to bring the right blend of capabilities, skills and talent to the forefront, while also prioritising the health and well-being of the people of our Company.
Occupational health and safety
Health and safety are deeply embedded in the business systems and processes. We believe that occupational illnesses and injuries are preventable and that prioritising the safety and well-being of the people is essential for sustainable growth. We have a well-defined Environment, Health and Safety Policy in place, which promotes conducting all activities in an environmentally friendly and sustainable manner while ensuring health and safety for all.
- Developed an advanced centrally addressable fire alarm system to reduce emergency response time and procured a new multipurpose fire tender with advanced technology to strengthen emergency response resources.
- Implemented AI-based safety monitoring system at 11 critical workplace areas.
- Strengthened man-machine and man-chemical interface controls and conducted HIRA reviews.
SDGs impacted
Employee development
Our Company places a strong emphasis on cultivating a diverse and inclusive workspace, providing the right set of skills, opportunities and an enabling environment to thrive. We continued with the existing skills and competency development programs and further improved them this year.
- Enhanced the onboarding experience through Udaan program that helped in induction and cultural assimilation of 160 new management trainees and executive trainees into our Company. The Neev program, catering to team members preparing to transition into roles with people management responsibilities, supported their effective shift from individual contributors to managers.
- Organised cultural programs, sporting events, marathons and more for team members to pursue their passions, refine their talents and improve engagement.
- Provided equal growth opportunities for all team members through regular performance and career development reviews and filled critical positions internally by adopting a structured role rotation framework.
SDGs impacted
Key performance indicators
242 team members
R&D function (2023-24: 248)
2.91 training days
per team member (2023-24: 2.8)
14%
voluntary attrition (2023-24: 14%)
₹ 0.19 cr
manpower productivity = PBT/total strength of team members (2023-24: ₹ 0.16 cr)
93%
suppliers assessed on ESG criteria (2023-24: 92%)*
70% of total spend
ISO 20400 certification coverage (2023-24: 57%)*
*consolidated basis
Serving the society
Atul Foundation, the CSR arm of our Company, actively undertakes projects aligned with national priorities under six broad programs, namely, education, empowerment, health, relief, infrastructure and conservation, all of which are in line with the United Nations Sustainable Development Goals. Through a holistic approach, we aim to uplift underprivileged communities, bridge socio-economic gaps and foster sustainable growth. By collaborating with government bodies, NGOs and local stakeholders, we ensure the effective implementation of programs that create a lasting impact.
Nurturing young minds through quality education
Education is a key driver of social transformation. By fostering learning opportunities and improving the quality of education, we managed to upgrade the standard of primary education in villages, increased enrolment and reduced school drop outs.
- supported 19,503 children through 112 adhyapikas in villages
- promoted science through mobile science lab to 3,029 students
- provided quality education to 3,426 students through four schools
SDG impacted
Atul Adhyapika teaching through flash cards in a village school
Transforming lives through empowerment
We believe in empowering individuals, enhancing financial stability and self-reliance among marginalised groups by equipping them with skills, resources and opportunities to lead independent and dignified lives.
- provided 20 types of government schemes to 28,308 people
- supported 221 SHGs with 2,498 women, collectively saving over ₹ 125 lakhs
- trained 2,133 individuals in vocational skills
SDGs impacted
Ensuring health and well-being
Healthcare remains a fundamental need of the villages in and around Atul. We have contributed to improving health and awareness through wellness programs, with a special focus on maternal and child care, anaemia prevention and providing medical support to underserved communities.
- facilitated diagnosis and treatment of 23,347 individuals at Atul Foundation Health Center
- conducted 63 eye check-up camps, reaching out to 19,531 patients and 53 blood donation camps, collecting 6,088 units of blood
- screened and conducted consultations for 9,315 adolescent boys, adolescent girls and women
SDG impacted
Providing relief to the needy
In times of distress, we extended support to vulnerable people, ensuring that those in need receive timely assistance. The initiatives under relief cater to children, the persons with disabilities and the disaster-affected communities, fostering resilience and rehabilitation.
- supported 249 children living in difficult conditions on a need-based approach
- facilitated 200 brick kiln workers by setting up a community toilet
- established community-based rehabilitation services for 94 persons with disabilities
SDGs impacted
Building infrastructure in rural and semi-urban localities
Robust infrastructure is key to driving progress and enhancing lives. We are engaged in building and upgrading essential facilities such as schools, sanitation systems and drinking water stations to improve living standards in rural and semi-urban areas.
- upgraded school infrastructure of two schools, benefiting 1,850 students
- renovated six anganwadis, reaching 230 children and developed a park for children in a village
- upgraded a cricket ground benefiting youth of nearby villages
SDGs impacted
Conserving the environment
Environment lies at the core of human existence and thus we are committed to conserving it. We actively promote sustainable practices, afforestation projects, waste management and the adoption of renewable energy sources, ensuring a greener future.
- planted 1,25,019 trees as a part of the Sanjeevani project in a single day across the country and nurtured six Miyawaki forests
- planted 82,200 mangroves in the coastal belt of Valsad
- implemented waste management programs in 78 villages and seven colleges
SDGs impacted
Governance
Transparent and ethical governance forms the foundation of the business strategy and shapes the organisational culture with strong corporate governance practices. It ensures that ESG commitments are integrated into the decision-making, fostering transparency, accountability and ethical leadership. By embedding governance at the core of ESG initiatives, we aim to enhance trust, strengthen resilience and contribute to sustainable growth. This section explores the governance structures, policies and frameworks that guide responsible business practices, mitigate risks and drive long-term value creation.
SDGs impacted
Innovation and technology
We believe in continuous improvement with a focus on innovation in everything we do. The R&D team is dedicated to developing new products and innovating processes, while the Technology team continuously enhances its methods and adopts advanced technologies to achieve the sustainability goals of our Company.
- Commissioned 14 new products
- Improved the yield of 29 products
- Debottlenecked one product
SDGs impacted
Process and chemical safety
We prioritise process and chemical safety right from the product development stage. This begins with the careful selection of synthesis route, minimisation of toxic and hazardous solvents and reagents, reduction of hazardous waste generation and the use of process intensification tools to miniaturise equipment sizes for safer operation. The state-of-the-art process safety laboratory is fully equipped to study all aspects of process safety, supporting key objectives such as process intensification, emission and effluent reduction and plant footprint minimisation. Every process is thoroughly evaluated by the process safety team before being scaled-up.
SDGs impacted
Quality assurance
We aim to create paperless laboratories by implementing various digital solutions, including in-process sample applications, digital document management system and quality management system modules. Techniques like spectroscopy and chromatography deliver consistent results with minimal sample preparation and processing. Additionally, the shift towards reduced testing aims to eliminate redundant checks without compromising product quality. By identifying critical control points and focusing testing efforts accordingly, we aim to deliver consistent quality as well as conserve resources such as energy, materials and time.
SDGs impacted
Product stewardship
We are committed to incorporating product stewardship into every aspect of the product development process. This involves: product identification, laboratory development, validation, scaling up at pilot and plant levels and ultimately, commercialisation. The primary focus is on developing products and processes with minimal environmental and social impact.
- Developed six products | formulations which have zero waste generation
- Performed product carbon footprint evaluations for 12 products.
- The membership of responsible care further reinforces the commitment to delivering sustainable products to the customers.
SDGs impacted
Digitalisation
We are in the process of establishing a secure and resilient operational technology network to leverage artificial intelligence, machine learning and internet of things technologies to improve manufacturing processes.
- Arranged organisational data in a unified data layer and enabled tableau visualisation to generate insights for data-driven decision-making across businesses and functions.
- Generated savings through analytics on manufacturing process data.
- Introduced industrial internet of things-based health monitoring of critical equipment to avoid breakdown.
SDGs impacted
Marketing and customer relations
We prioritise customer satisfaction by delivering sustainable products and services of high quality and build long-term partnerships by understanding and addressing customer needs.
- Added 188 new B2B customers and 465 new B2C customers
- Commenced sales in one new geography
- Conducted customer satisfaction survey and took corrective actions based on the feedback received.
SDGs impacted
Logistics and supply chain
Through collaboration with suppliers, the adoption of sustainable practices, optimisation of transportation, reduction of emissions and promotion of responsible sourcing, we strive to minimise the impact on environment, build a responsible and resilient supply chain and contribute to a socially responsible business ecosystem.
- Adopted multi-modal transport by shifting import clearance operations to inland container depot via cargo rail, resulting in a 7.04 kg CO2 reduction per metric ton transported and a 77% decrease in transport-related emissions.
- Increased ISO 20400 certification coverage from 57% to 70% of the total spend. The ISO 20400-aligned procurement strategy helps in mitigating environmental risks, enhancing brand reputation and optimising supply chain resilience.
- Introduced intermediate bulk containers (IBCs) that are 5 cm shorter than the previous design, increasing container capacity from 18 to 20 IBCs per 20 ft container. This enhancement improved space utilisation, optimised logistics and significantly reduced transport-related emissions.
SDGs impacted
Information security and data privacy
We have a robust Information Security Policy in place and well-defined processes to ensure the confidentiality, integrity and availability of digital information.
- Initiated information security operations center
- Developed multifactor authentication for network security
- Identified vulnerable users through a phishing simulation software and offered awareness training to them
SDG impacted
Governance philosophy
The name 'Atul' is a unique asset, which represents a rich heritage of Values. In an environment where change is a way of life, continuity of Values provides stability and is fundamental to us. We have therefore formalised key Values and are committed to institutionalising them. We will seek to create an environment wherein these Values are consistently practised and nurtured and ensure that they are not compromised.
Values
Integrity
Working with honesty, following the highest standards of professionalism. Integrity is when our decisions and actions remain consistent with our thoughts and words, written or spoken.
Understanding
How well we work with others depends on our ways to connect and this in turn is based on our level of understanding of human relationships. This certainly does not mean that we accept poor performance, but that we do it the right way. Understanding is the external manifestation of internal realisation.
Unity
Working together and taking advantage of synergy while harnessing unique abilities of each of us to achieve a larger goal. Unity is the realisation that though we may work in different areas, we are finally interconnected, and that interdependence is a higher order of living than independence. Though we may be many, we share a common purpose.
Responsibility
Delivering value and taking ownership of actions. Responsibility must also give us the realisation that what is good for the business must be in the overall good. In essence, we must work with a spirit of trusteeship for the shareholders and other stakeholders. What comes to us must be returned many times over.
Excellence
A drive that is more from inside than outside; it is about us seeking to continuously improve and develop an eye for innovation even in day-to-day work. Excellence is about excelling in everything we do and not giving up. Excellence is also a journey, not simply a destination.
As team members of a responsible corporate entity, we remain steadfast in the commitment to enhancing the governance framework to foster accountability and transparency. The proactive efforts are to instil Values across our Company and endeavouring for sustained excellence in all that we undertake to create long-term value for the stakeholders.
Stakeholders
- Consumers
- Customers
- Team members
- Suppliers and business partners
- Planet
- Government
- Society
- Shareholders
Governance structure
The governance structure of our Company is multi-tiered, comprising the Board of Directors, Board Committees, CEO and the Management Committee.
The Board is responsible for and committed to the principles of corporate governance in our Company. It discharges some of its responsibilities directly and others through the Board Committees. In addition to the Board Committees, the Board is supported by the CEO and Executive Directors.
Board of Directors
Board Committees
| Audit Committee | Corporate Social Responsibility Committee | Investment Committee | Nomination and Remuneration Committee | Risk Management Committee | Stakeholders Relationship Committee |
CEO, Executive Directors and Management Committee
Board oversight
Management accountability
100%
Members of Audit Committee and Nomination and Remuneration Committee are Independent Directors
83%
Committees are led by Independent Directors