Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Jefferies India ESG Summit 2020
34 slides from Hindalco Industries's conference presentation, Dec 7, 2020
Slide 1: Regulation 30 intimation letter to stock exchanges
07th December 2020 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, 5th Floor Dalal Street Plot No. C/1, G Block Mumbai: 400 001 Bandra Kurla Complex Scrip Code: 500440 Bandra (East) Mumbai – 400 051 Scrip Code: HINDALCO Mr. Daniel Schammo Banque Interna
Slide 2: Presentation on Sustainability @Hindalco
Hindalco Industries Ltd. Jefferies India ESG Summit 2020 Presentation on Sustainability @Hindalco 07th December, 2020 Presented by : Ms. Deeksha Vats, Chief Sustainability Officer, Aditya Birla Group Ms. Vaishali Surawar, Head Sustainability, Hindalco Industries Ltd
Slide 3: Agenda
Agenda 1. Aditya Birla Group Sustainable Business Model 2. Hindalco’s Sustainable Business Strategy, Actions & Performance 3. Hindalco’s Approach To Governance 4. Environmental Stewardship: Approach, Examples 5. Hindalco’s People Focus: Approach, Examples Hindalco Industries Limited GREENER, STRONGE
Slide 4: Determining Ability to Sustain - ABG Businesses
Determining Ability to Sustain - ABG Businesses Sustainable Business Model and Framework Hindalco Industries Limited GREENER, STRONGER, SMARTER 3
Slide 5: Using 4-Dimensional Approach to Navigate ABG Sustainable Business Model
Using 4-Dimensional Approach to Navigate ABG Sustainable Business Model Dimension 1: Industry sector of operation Dimension 2: Geography of operation Dimension 3: Value chain approach to include key stakeholders Dimension 4: Time horizon Operational aspects Strategic aspects from: from: Legal comp
Slide 6: Four Steps Towards Transition To Sustainable Businesses
Four Steps Towards Transition To Sustainable Businesses 1 Identify and understand Value Identify and prioritize material 2 chain aspects across aspects across time horizons geographies for a sector and stakeholders, through: 1. Internal Context = strengths, weaknesses Immediate/ short term Sourcing
Slide 7: Material Issues, Enablers For Sustainability Of ABG Businesses
Material Issues, Enablers For Sustain-ability Of ABG Businesses 1. Environment: ESG ratings Mega-trends: • Climate change –decarbonization, adapt for changed climate agencies, Think tanks, (water – reduce freshwater, flooding risks) regulators, multi-lateral • Waste management, circularity stock age
Slide 8: Aditya Birla Group - Sustainability Policies and Standards
Aditya Birla Group - Sustainability Policies and Standards Technical, Management Standards Focus Areas Group Policies Air Resource Conservation Environmental policy Biodiversity Safety Energy and Carbon Policy Contaminated sites Security Water stewardship policy Responsible Energ
Slide 9: Implementation of ABG Policies, Standards
Implementation of ABG Policies, Standards Platform and tools: Expert help: ENABLON, SAQs on WASH, ENHESA, TSs SMEs working with business teams • ENABLON available across at businesses, sites • Appropriate use of framework at a business and • SAQs filled at sites, scores then reviewed its various sit
Slide 10: Hindalco's Sustainable Business Strategy, Actions & Performance
Hindalco’s Sustainable Business Strategy, Actions & Performance Hindalco Industries Limited GREENER, STRONGER, SMARTER 9
Slide 11: Our Purpose
Our Purpose … Why it exists, why it does what it does ? WE MANUFACTURE MATERIALS THAT MAKE THE WORLD GREENER STRONGER SMARTER 10 Hindalco Industries Limited Hindalco Industries Limited GREENER, STRONGER, SMARTER EXCELLENCE BY DESIGN 10
Slide 12: The 3 R's: What Does Sustainability Mean To Hindalco?
The 3 R’s: What Does Sustain-ability Mean To Hindalco? It is about Hindalco’s ability of sustain in wake of megatrends and stakeholder expectations RESILIENCE RELIABILITY RESPONSIBILITY Resource Security E Operations Environment Sustainability Fully integrated aluminum business Operational excel
Slide 13: The 3 R's: What Does Sustainability Mean To Hindalco?
The 3 R’s: What Does Sustain-ability Mean To Hindalco? Resilient Responsible Reliable Operations, Strategy and People and External Resource base Technology and Demand Operating model workforce Relationships Innovation Strategic Technical Governance Stakeholder Engagement People enablers Operational
Slide 14: Hindalco's ESG Ratings: S&P Global's DJSI and MSCI
Hindalco’s ESG Ratings: S&P Global’s DJSI and MSCI Leader Topped rank in DJSI 2020 ESG Index with a mention in the DJSI Emerging Markets Index Company Name Overall Score Governance & Economic Environment Social Hindalco Industries Limited 75 72 90 64 Norsk Hydro ASA 69 70 70 67 Alcoa Corporation 68
Slide 15: Hindalco's Approach To Governance
Hindalco’s Approach To Governance Hindalco Industries Limited GREENER, STRONGER, SMARTER 14
Slide 16: Hindalco Code Of Conduct
Hindalco Code Of Conduct Available on Hindalco’s website: http://hindalco.com/Investor-centre/Governance/Code-of-conduct Framed and adopted by Hindalco in compliance with the provisions of Clause 49 of the Listing Agreements entered into by the Company with the Stock Exchanges. The Code applie
Slide 17: Governance and Compliance
Governance and Compliance As per Governance and Compliance Policy of the Company, Governance and Compliance shall take place at three interlinked levels, namely: 1. Strategic supervision by the Board of Directors 2. Strategic Management by the Corporate Management Committees 3. Executive Management
Slide 18: ABG and Hindalco Values
ABG and Hindalco Values Acting and making On the foundation of An energetic, intuitive zeal Thinking and working Responding to internal and decisions in a manner Integrity, doing all that is that arises from emotional together across functional external customers with a that is fair and honest. need
Slide 19: Environmental Stewardship: Approach, Examples
Environmental Stewardship: Approach, Examples Hindalco Industries Limited GREENER, STRONGER, SMARTER 18
Slide 20: Environmental Stewardship Position for Green Aluminium
Environmental Stewardship Position for Green Aluminium Value Chain of Aluminium Power Mining Refining Smelting Downstream Production Generation Prioritized Aspects and Actions For Environmental Stewardship for Hindalco Waste Air Emissions Water GHG Emissions Biodiversity Management Control Managemen
Slide 21: Environmental Stewardship: Example of Waste Management
Environmental Stewardship: Example of Waste Management Hindalco has become 1st first-ever company worldwide to achieve 100%* red mud utilisation at 3 out of its 4 refineries. Solid Wastes: Bauxite Residue (BR) Management Plan – 5R + 1S Inventory all hazardous and non- hazardous wastes Approach T
Slide 22: Environmental Stewardship: Example of Water Management
Environmental Stewardship: Example of Water Management Water consumption: Liquid Effluents: Use of water balance as tool; alternative sources of water Segregate different types, focus on recycle, reuse e.g. treated sewage Targets: Zero Liquid Discharge for a closed loop water Targets: Reduct
Slide 23: Leading Practices on Water @ Hindalco
Leading Practices on Water @ Hindalco Hindalco Industries Limited GREENER, STRONGER, SMARTER 22
Slide 24: Environmental Stewardship: Towards Decarbonization
Environmental Stewardship: Towards Decarbonization PROS CONS Aluminium is infinitely recyclable Aluminium smelting is energy intensive Life cycle of an aluminium product is a renewable (Al2O3 bond to be broken) "cradle-to-cradle" Process GHG emissions - PFCs + use of carbon as anode 95% le
Slide 25: Recycling As A Lever To Reduce Hindalco's Carbon Footprint
Recycling As A Lever To Reduce Hindalco’s Carbon Footprint Leading Global Industry Player Hindalco Industries Ltd Aluminium Aluminium Flat Rolled Products (FRP) Alumina 2.7 Mt #1 Rolled Products Supplier Worldwide Primary Metal 1.3 Mt Global Presence VAP (FRP) 3.4 Mt VAP (excluding 319 Kt Global lea
Slide 26: Product Stewardship for Lowering Carbon Footprint
Product Stewardship for Lowering Carbon Footprint Aluminium Railway Aluminium Trailer Aluminium Foil- Aluminium LPG Aluminium Bulker Wagon Laminated Jute Bags Cylinder Hindalco Industries Limited GREENER, STRONGER, SMARTER 25
Slide 27: Environmental Stewardship: Biodiversity Management
Environmental Stewardship: Biodiversity Management Working with International Union for Target : NO NET LOSS using the Conservation of Nature (IUCN) at 3 mitigation hierarchy of AVOID, locations to cover bauxite mining, coal MINIMISE, RESTORE/ REHABILITATE mining, alumina refining, smelting and and
Slide 28: Hindalco's People Focus: Approach, Examples
Hindalco’s People Focus: Approach, Examples Hindalco Industries Limited GREENER, STRONGER, SMARTER 27
Slide 29: Occupational Safety & Health
Occupational Safety & Health Safety is the language spoken Inherently Safer Processes State of art, latest technology at all new facilities No use of bulk chlorine for water treatment Attention to minuscule details when it comes to safety Benchmarked and at par with best in industry Un
Slide 30: Human Rights Policy
Human Rights Policy Committed to respect the human rights of workforce and community around operations: Maintaining positive legal compliance Due diligence process aimed to Identify, assess & manage human right risks Diversity & Equal opportunities Respect the rights of all workers Barring
Slide 31: Respecting Rights - Actions at our Sites during COVID
Respecting Rights - Actions at our Sites during COVID Our Resilience Pre Operations Planning Compliance Management under DMA Secure Permissions to run operations Apprx. 1.5 Lakhs Thermal Santizers Establish - Standard Operating Procedures scanning Apprx 4000 masks Steering, Taskforce Committ
Slide 32: Respecting rights - Actions around our Sites during COVID
Respecting rights - Actions around our Sites during COVID 3.8 Lakhs masks 2466 Litres Awareness distributed in 6500 Isolation Handwash Camps: 930 in 431 villages . Sanitizers in centres = 51 in 46 322 villages 75% SHG 69 villages villages Health Leaflets – Soap People 29981 in =71175 in Bleaching Ch
Slide 33: Community Engagement by Hindalco
Community Engagement by Hindalco Key focus areas in Social Vision is integrated into Business Vision CSR activities All projects are identified in consultation with the community in a participatory manner. Baseline and other need assessment results are discussed with the community and consensually
Slide 34: Thank you
Thank you Hindalco Industries Limited GREENER, STRONGER, SMARTER 33
Hindalco Industries — Jefferies India ESG Summit 2020 on 6ix