At Godrej Industries Limited (GIL), we are committed to the Godrej Group’s ‘Good & Green’ vision of creating a more inclusive and greener India.
Our strategic Corporate Social Responsibility (CSR) initiatives actively work towards the Good & Green Goals and have helped us carve out a reputation for being one of the most socially and environmentally responsible companies in India.
The Key Purpose of this policy is to:
- Define what CSR means to us and the approach adopted to achieve our Good & Green goals
• Define the kind of projects that will come under the ambit of CSR
• Identify broad areas of intervention in which the company will undertake projects
• Serve as a guiding document to help execute and monitor CSR projects
• Elucidate criteria for partner implementation agencies
• Explain the manner in which the surpluses from CSR projects will be treated
- Policy Statement The CSR Policy focuses on addressing critical social, environmental and economic needs of the marginalized/underprivileged sections of the society. Through this policy, we align our CSR strategy with the Godrej group’s Good & Green vision and goals. We adopt an approach that integrates the solutions to these problems into the strategies of the company to benefit the communities at large and create social and environmental impact.
- Scope of CSR activities in GIL As a practice, we classify only those projects that are over and above our normal course of business as CSR. This policy applies to all our CSR projects and it will be further reviewed and updated. 4.1 Normal Course of Business GIL manufactures industrial chemicals that are used for a variety of product categories, ranging from cosmetics and tyres to pharmaceuticals and toothpastes. We are the country’s leading manufacturer of Oleochemicals & Surfactants. We pride ourselves for delivering high quality products at competitive prices in several countries. Our differentiated manufacturing processes and supply chains enable us to be the preferred supplier of chemicals to many markets in India and abroad. As a company, we are committed to providing quality products to our customers, creating economic value for all our shareholders, and we assign high priority to ensuring that we fulfill all regulatory requirements.
- Good & Green Goals of Godrej By 2020, the Group aspires to create a more employable Indian workforce, build a greener India, and innovate for ‘good’ and ‘green’ products. The Godrej group’s Good & Green goals for 2020 are:
• Train 1 million rural and urban youth in skills that enhance their earning potential through employability training programs
• Achieve zero waste to landfill, carbon neutrality, a positive water balance, 30% reduction in specific energy consumption, increase utilization of renewable energy sources through the Greener India projects
• Generate a third of our portfolio revenues from ‘good’ and/or ‘green’ products and services – defined as products that are environmentally superior or addresses a critical social issue (e.g., health, sanitation, disease prevention) for consumers at the bottom of the income pyramid Our CSR policy contributes to the Group-wide goals of Godrej by adopting projects in the following areas of intervention defined in Schedule VII: livelihood enhancement projects· ensuring environmental sustainability, promoting education, others as maybe identified in the future.
Key focus areas of Good & Green in GIL
6.1 Employability India has 600 million people below the age of 25 out of which only 80 million (13%) are employable. Recognizing the seriousness of this problem, GIL has undertaken projects that impart training to enhance the employment potential of underprivileged students by equipping them with core technical skills and safety inputs while providing them with a broader industry perspective.
6.2 Greener India We recognize the fact that in order to truly embed sustainability into our business, it is crucial for us to manage and reduce the environmental impacts of our operations. The Greener India initiative aims to do this through its innovative projects that focus on achieving 5 time-bound goals linked to the environmental performance of the company.
6.3 Innovating for Good & Green We define a ‘Good’ product/service as one which addresses a critical issue for marginalized sections of society. The issue addressed could be related to health, hygiene, water, sanitation, housing, education or livelihoods. A ‘Green’ product/service is that which reduces energy, GHG emissions, water or material consumption, eliminates toxic materials or uses recyclable, renewable and/or natural material. We continuously undertake efforts to develop good and green products or services. Research & Development activities support incubation and innovation.
6.4 Brighter Giving We place great emphasis on including our employees in CSR initiatives. To this end, Brighter Giving has been launched as a structured employee volunteering programme that provides our employees the flexibility to leverage their skills and volunteer for the cause they are passionate about. A typical Brighter Giving project helps address a non-profit organisation’s specific needs. 7. Governance Structure We have constituted a robust and transparent governance structure to oversee the implementation of our CSR Policy, in compliance with the requirements of Section 135 of the Companies Act, 2013.
7.1 Board-level CSR Committee At GIL, our CSR governance structure will be headed by the Board Level CSR committee that will be ultimately responsible for the CSR projects undertaken. The committee will report to our Board of Directors 7.1.1 Members Mr. N. B. Godrej· Ms. T. A. Dubash· Mr. K. N. Petigara· Mr. Amit B. Choudhary·
7.1.2 Responsibilities Formulate and update our CSR Policy, which will be approved by the Board of GIL· Suggest areas of intervention to the Board of GIL· Approve projects that are in line with the CSR policy· Put monitoring mechanisms in place to track the progress of each project· Recommend the CSR expenditure to the Board of GIL who will approve it· Meet atleast once a year to review the progress made· 7.2 Reporting by Good & Green Team The Good & Green Team and the business teams will report / give feedback to the CSR Committee for all CSR projects undertaken. 8. CSR Budget The total budget for the CSR projects will be decided by the CSR Committee. 9. Treatment of Surpluses Any surplus generated from CSR projects undertaken by us will be tracked and channelized into our CSR corpus.
These funds will be further used in development of the CSR projects and will not be added to the normal business profits.