Sustain-ability 2.0: Decoding our ESG journey

As curtains draw close on the challenges of the pandemic and post-pandemic years, companies are becoming acutely aware of the need to balance human welfare, economic prosperity and environmental health.

Growing awareness of the dangers of climate change and consumer preference for sustainable products and processes has led to an increased focus on the decarbonisation of energy, raw material and supply chain securitisation, reducing ecological footprints, and safer workplaces.

Cognisant of these factors, the Aditya Birla Group is committed to creating a meaningful  shift in group businesses through a sharper focus on Environmental, Social, Governance (ESG) criteria. In an evolving business landscape, the Group believes that operating with a ESG vision must a growth driver for companies.

Among the first to adopt ESG

In 2013, Chairman Kumar Mangalam Birla called on the Group to become the leading Indian conglomerate for sustainable business practices across its global operations. The Sustainable Business Framework is based on Responsible Stewardship, Stakeholder Engagement and Future Proofing. Group companies equipped themselves with relevant tools, provided access to credible information, and put systems and processes in place to achieve this vision. The framework has gained plaudits through peer reviews and third-party certifications to 16 different international standards.

The sustainability journey was supported by the IT-enabled, evidence-based approach called ENABLON, a global information management system that was used to standardise, monitor, report and improve performance.

Transitioning to ESG: Sustain-ability 2.0

The post-pandemic era has reinforced how businesses must incorporate long-term resilience into their strategic vision and goals. In keeping with its vision that resilience is a dynamic concept, the Group embarked on its Sustain-Ability Journey 2.0. The Group’s sustainability framework was finetuned via a four-dimension approach to prioritise its ‘ESGbility’. This comprised:

• Identifying and understanding Value Chain Aspects across geographies
• Identifying and prioritising material ESG aspects across time horizons and stakeholder expectations
• Developing sustainable business strategies with measurable, time-based targets and annual action plans
• Measuring, monitoring progress through the deployment of annual plans

Aditya Birla Group uses stakeholder engagement to minimise the factors that might put its businesses at risk. From identifying stakeholders with the right expertise to interacting with global subject matter experts on global megatrends, Group businesses learn and share their knowledge. There’s also a fortnightly ‘Expert Conversation Series’(ECS), a bouquet of interactive online talks and panel discussions with global experts, thought leaders, and sustainability practitioners. The focus is on gathering an external perspective on how to build sustainable businesses and to hone the businesses’ ability to ‘sustain'.

Key learnings

This continuing interaction has enabled Aditya Birla companies to map out 16 material areas to form a common minimum ESG agenda at Group level. These include:

Environment

• Decarbonisation: Net-zero carbon emissions by 2050
• Circularity: Zero waste into landfill; Alternative raw materials
• Water resilience: Reduce freshwater consumption; Water positive at mining locations
• Climate change adaptation: Identify and mitigate climate-related physical risks
• Biodiversity management: No net loss approach

Social

• Employee and contractor safety: Zero-harm approach – no fatalities and 20% YoY reduction in injury rates
• Occupational health: Prevent chronic occupational illness; care for psychological health; support medical emergencies, employee wellness, etc.
• Empowering communities: Foster inclusive growth – engage, uplift and empower underserved communities
• Respect and protect human rights, including Diversity and Inclusion
• Supply chain management: Responsible procurement
• Talent management: Professional growth with humane care
• Sustainable products and services

 

 

Governance

• Strategic stakeholder engagement: Understanding stakeholder expectations and building effective relationships
• Transparency and reporting through use of latest global frameworks
• Corporate governance
• IT Enabled MIS and assurance system: Using digital tools to ensure accuracy and transparency

 

This extensive and focused efforts through Sustain-ability Journey 2.0 reinstates Aditya Birla Group’s commitment to enhance its ESG quotient and align all its businesses to maintain the ‘ability to sustain’.

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