Table of Contents

S. No. Particulars Page No.

1. Scope of the ESG Data Book ……………………………………………………………… 03

2. Governance and Economic Disclosures ……………………………………………… 04
3. Environmental Disclosures ………………………………………………………………… 12
4. Social Disclosures ………………………………………………………………………………. 19
5. Independent Assurance Statement for the Integrated Report …………… 23

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 Scope of the ESG Data Book

In line with our commitment to transparency and accountability, we present our ESG Data Book, which
acts as a supplementary resource to the metrics and statements pertaining to environmental, social,
and governance (ESG) factors in our annual integrated report and other relevant media. The ESG Data
Book offers an encompassing overview of our organizational performance and impact in these crucial
areas, aiming to provide stakeholders with a comprehensive overview of our commitment to
sustainable practices. This document is designed to enhance transparency, instil confidence, and
strengthen accountability regarding our ESG initiatives and progress.

The primary purpose of the ESG Data Book is to augment the information available in our integrated
report and similar media by offering more detailed insights into our ESG performance. By providing
key performance indicators (KPIs), benchmarks, links to company policies, and ESG targets, this
publication facilitates a thorough assessment of our organization's efforts in achieving its ESG goals. It
allows stakeholders, including investors, customers, employees, regulators, and the wider public, to
gain a deeper understanding of our ESG strategies, achievements, and ongoing challenges.

By offering a compilation of data, our ESG Data Book aims to foster informed decision-making among
stakeholders and empower them to evaluate our commitment to sustainability. The information
provided within the book is consistent with the guidelines and frameworks set forth by recognized ESG
reporting standards, ensuring the credibility and comparability of our data.

To further reinforce the credibility and reliability of our ESG disclosures, we have sought an
independent assurance report for the fiscal year 2022-23. The independent assurance report serves
as external validation, conducted by a third-party assurance provider, to assess the accuracy,
completeness, and reliability of the data and information presented in the integrated annual report
and also reflected in the ESG Data Book.

By subjecting our ESG reporting to external scrutiny, we demonstrate our dedication to transparency
and openness. The assurance statement, issued by the independent assurer, is appended to both the
Integrated Report and the ESG Data Book, signifying that the entire reporting exercise has been
subjected to rigorous validation.

As part of our ongoing commitment to continuous improvement, we are proud to announce that we
are transitioning from limited to reasonable assurance for our ESG disclosures. This shift signifies our
dedication to strengthening the credibility and trustworthiness of our reporting. Reasonable
assurance, provided by independent experts, entails a more in-depth examination of data and
processes, providing stakeholders with an even higher level of confidence in the accuracy and
reliability of our ESG disclosures.

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 Governance and Economic Disclosures

➢ The Reporting Boundary

The scope of reporting in the Dalmia Bharat Limited Integrated Report (FY 2022-23), which is also
applicable to ESG Data Book, is defined to encompass all activities that are consolidated for financial
reporting purposes. This delineation ensures that the report provides a consistent, comprehensive
and accurate representation of the organization's performance, commitments, and impact, thereby
adhering to recognized reporting principles and standards such as GRI and IIRC.

The reporting boundary has been defined in the "About the Report" section of the Dalmia Bharat
Limited Integrated Report (FY 2022-23). This dedicated section, accessible on our official website,
provides comprehensive details regarding the scope of reporting, including the criteria used to
determine the entities and activities included, and any exclusionary parameters that have been
applied.

➢ Corporate Governance

At Dalmia Bharat, we uphold a steadfast commitment to the principles of good corporate

governance, recognizing its pivotal role in driving the sustainable growth and success of our
organization. As part of our proactive approach to governance, we conduct a comprehensive self-
assessment of the board's performance, which serves as a vital tool to evaluate the effectiveness and
functioning of our board of directors.

The self-assessment process involves the active participation of all board members, who engage in a
reflective evaluation of their own individual performance as well as the performance of their fellow
directors. This constructive assessment encompasses a broad spectrum of key elements, including
the overall performance of the board as a collective entity, the efficacy of each committee operating
under the Board, and the leadership acumen demonstrated by the Chairman.

By undertaking this self-assessment, we aim to identify and recognize areas of strength within the
board's operations, as well as areas that may benefit from improvement. This introspective exercise
plays a crucial role in fostering continuous improvement and promoting excellence in governance
practices. The insights gleaned from the assessment empower us to refine our decision-making
processes, enhance communication channels, and strengthen the collaborative dynamics within the
board. The self-assessment process is designed to be rigorous and impartial, emphasizing candid and
open feedback from all board members. This approach facilitates a comprehensive and objective
evaluation, ensuring that any challenges or potential issues are highlighted without reservation. It
further encourages a culture of transparency, trust, and accountability among board members.

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➢ Risks Identification and Reporting

Dalmia Bharat follows a comprehensive approach to risk identification and reporting to ensure
effective risk management across its operations. We recognize the importance of identifying and
addressing risks associated with its business activities, including environmental, social, and governance
(ESG) risks. Dalmia Bharat enables a proactive approach among individual employees to identify and
report potential risks organization wide, this approach cultivates a culture of risk awareness among
everyone at Dalmia Bharat and empowers timely reporting for effective risk management.

➢ Enterprise Risk Management

Dalmia Bharat maintains a robust risk monitoring system to track identified risks. This includes
monitoring key risk indicators, industry trends, regulatory changes, and emerging risks. The company
has established reporting mechanisms to ensure timely reporting of relevant risks to the appropriate
management levels and stakeholders. A combination of top-down and bottom-up approaches is used
to identify, assess, monitor, and mitigate risks by risk professionals and owners across the group. Risk
Management Committee (RMC) is structurally independent of Dalmia Bharat's business line, with Chief
Risk Officer (CRO) appointed to drive ERM initiatives and regularly ensuring risk management
education for non-executive directors. We review our company's risk exposure at least twice a year or
as and when required.

We implement risk mitigation strategies to minimize the likelihood and impact of identified risks. This
involves implementing controls, policies, and procedures, as well as conducting regular audits and
inspections to ensure compliance with risk management protocols. In the event of significant risks, the
company develops response plans and communicates them to relevant stakeholders.

We consider feedback from stakeholders, evaluate industry best practices, and evolving risk landscape
to strengthen our risk management framework. This ensures that the company remains proactive in
identifying and addressing emerging risks.

ESG is an important reporting indicator for firm sustainable firm performance. The impact of mitigating
the ESG risk means a positive impact on environmental and social sustainability. It is crucial to ensure
sustainability. The incorporation of ESG risk into companies’ planning implies the transition of
companies to corporate sustainability and to reducing the ESG risk, which is critical in the context of
strategic action. We recognize that ESG risks can significantly impact our long-term sustainability and
reputation. Therefore, we ensure that ESG-related risks, such as climate change, environmental
impacts, health and safety, and supply chain risks, are adequately identified, assessed, and reported
in our annual integrated reports.

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▪ Risk Exposure Review

The risk exposure is assessed and reviewed on a yearly or annual basis to ensure that the organization
stays up-to-date with the changing risk landscape and can make informed decisions about risk
management strategies. This regular review allows the organization to identify any new or emerging
risks, reassess the likelihood and impact of existing risks, and adjust risk mitigation measures
accordingly. By conducting an annual risk exposure review, we are able to proactively identify potential
threats and opportunities, enhance their risk resilience, and align risk management efforts with their
overall business objectives. This iterative process ensures that we remain adaptive and responsive to
the dynamic risk landscape and helps in building a culture of risk-awareness and proactive risk
management.

▪ Risk Culture

Dalmia Bharat places a strong emphasis on building a robust risk culture within the organization. The
company recognizes that a strong risk culture is crucial for effective risk management and overall
business success. Here are some key aspects of Dalmia Bharat's risk culture:

Risk Awareness: Dalmia Bharat promotes a culture of risk awareness among all employees, from top
management to frontline workers. Employees are educated about various types of risks and their
potential impact on the organization.
Accountability: The company encourages a culture of accountability, where each employee
understands their role in managing risks and takes ownership of risk-related responsibilities.
Transparent Communication: Dalmia Bharat fosters open and transparent communication about risks
across the organization. Employees are encouraged to report risks and potential issues without fear of
reprisal.

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Risk Governance: The company has well-established risk governance structures, including risk
committees and risk management teams, which are responsible for overseeing and managing risks at
different levels of the organization.
Risk Assessment: Dalmia Bharat conducts regular risk assessments to identify and evaluate potential
risks. These assessments help in understanding the likelihood and potential impact of risks on the
business.
Risk Mitigation Strategies: The company develops and implements comprehensive risk mitigation
strategies to address identified risks effectively. These strategies are aligned with the organization's
overall goals and objectives.
Training and Development: Dalmia Bharat invests in training and development programs to enhance
risk management capabilities among employees. This includes workshops, seminars, and skill-building
initiatives.
Continuous Improvement: The company believes in continuous improvement and regularly reviews its
risk management processes to identify areas for enhancement and refinement.
Incentives for Risk Management: Dalmia Bharat recognizes and rewards employees who actively
contribute to risk management and adopt risk-aware behavior.
Integration with Business Strategy: Risk management is integrated into the company's overall business
strategy, ensuring that risks are considered when making strategic decisions.

▪ Emerging Risk Management

The company employs several strategies and practices for emerging risk management. We conduct
thorough risk assessments and scenario planning exercises to anticipate and understand emerging
risks By integrating emerging risk management into its overall risk management framework, Dalmia
Bharat aims to enhance its ability to anticipate, understand, and respond effectively to evolving risks.
This proactive approach helps us in maintaining the competitive advantage, protect stakeholder
interests, and sustain long-term value creation. Following are the identified key emerging risks for our
organization –

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 Geopolitical Contestation of Strategic Resources

• As a company with significant operations and interests in strategic resources such as

minerals, fuels, and other critical raw materials, any geopolitical instability or conflicts in
regions where these resources are abundant could impact our supply chain and operational
continuity.

• Geopolitical contestation can impact the stability and security of supply routes for these
resources, leading to potential transportation and logistical challenges. In extreme cases, it
may even pose risks to the safety and security of our personnel and assets operating in these
regions.

• To address this emerging risk, Dalmia Bharat closely monitors geopolitical developments
and adopts proactive measures to diversify sourcing locations, build strategic partnerships,
and invest in technologies that enhance resource efficiency and reduce dependency on
critical resources that are prone to geopolitical volatility. Implementing robust risk
management strategies and contingency plans are crucial to mitigate the potential impacts
of geopolitical contestation on our operations and ensure long-term resilience and
sustainability for the company.

• While some geopolitical events may have more immediate effects on the supply chain and
operations, the full ramifications of such contestations may take several years to unfold. To
effectively address this emerging risk, Dalmia Bharat has adopted a forward-looking
approach that considers potential geopolitical scenarios and their implications on strategic
resources for the next 3 to 10 years and beyond.

Natural Disasters and Extreme Weather Events

• As climate change continues to impact the frequency and intensity of extreme weather
events, such as hurricanes, floods, droughts, and heatwaves, the potential for disruptions to
Dalmia Bharat's operations and supply chains increases significantly.

• The time horizon for this risk is both medium-term and long-term. In the medium-term
(3 - 10 Years), Dalmia Bharat may face immediate challenges and disruptions from sudden
natural disasters, such as severe storms that could damage facilities, disrupt transportation,
and cause power outages. These short-term impacts can lead to production delays,
increased costs, and potential revenue losses.

• In the long term (10 - 30 Years), the increasing frequency of extreme weather events can
have more profound and sustained effects on Dalmia Bharat's operations. For instance,
recurring droughts can impact water availability for cement production, affecting
production capacities and increasing water-related costs. Similarly, rising sea levels and
coastal flooding could threaten facilities located in vulnerable areas, leading to potential
relocations or substantial investments in infrastructure protection.

▪ Climate Risks and Control Mechanisms

Dalmia Bharat's proactive approach to addressing these climate risks involves a combination of short-
term and long-term strategies, incorporating best practices from sustainability standards, climate
science, and industry peers. Through continuous monitoring, evaluation, and adaptive planning,
Dalmia Bharat aims to enhance climate resilience, minimize potential impacts, and maintain its
commitment to sustainable practices.

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 Table 1: Climate Risks and Control Mechanisms for Dalmia Bharat

Key
Description including potential Likelihood and
S. No. Climate Mitigation Strategy
impacts Magnitude
Risks
Dalmia Bharat is susceptible to
extreme weather events such as
hurricanes, floods, and heatwaves.
These events can cause damage to Implementing disaster
High likelihood
facilities, disrupt transportation and preparedness plans, improving
Extreme with increasing
supply chains, and result in facility resilience, diversifying
1. weather severity due to
production delays and shutdowns. sourcing locations, and
events climate change
investing in climate-resilient
impacts.
Potential Impacts: Infrastructure infrastructure.
damage, increased operational costs,
supply chain disruptions, revenue
losses, reputational damage.
Dalmia Bharat's cement production
relies significantly on water, and
water scarcity or stress in critical Adopting water conservation
Medium to high
regions could hinder operations and measures, implementing water
Water likelihood,
increase costs. recycling and reuse practices,
2. Scarcity depending on
engaging with local
and Stress water availability in
Potential Impacts: Reduced communities for sustainable
specific locations.
production capacity, increased water water management.
procurement costs, reputational risk,
regulatory challenges.
Shifting regulatory landscape and the
introduction of carbon pricing
mechanisms could impose financial
Medium likelihood, Continuously monitoring and
penalties on emissions, affecting
Regulatory but high complying with evolving
Dalmia Bharat's operational costs and
Changes magnitude impact climate-related regulations,
3. competitiveness.
and Carbon if stringent investing in energy-efficient
Pricing regulations are technologies, and transitioning
Potential Impacts: Increased
enforced. towards low-carbon operations.
operating costs, potential penalties
for non-compliance, competitiveness
challenges.

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 Climate-related risks can disrupt
Dalmia Bharat's supply chain, Medium likelihood,
Diversifying sourcing locations,
affecting the availability of critical raw with moderate to
Supply building resilient supply chains,
materials and transportation logistics. high impact
4. Chain engaging with suppliers to
depending on the
Disruptions assess and manage climate
Potential Impacts: Delayed severity of
risks.
production, increased costs, reduced disruptions.
operational efficiency.
Increasing awareness and concern
about climate change may impact
Dalmia Bharat's reputation and
stakeholder perception if the Medium likelihood, Transparent reporting of
Reputation
company is perceived as not taking with potentially climate-related initiatives,
and
5. sufficient action. significant communication of sustainability
Stakeholder
reputational efforts, and active engagement
Perception
Potential Impacts: Loss of investor damage. with stakeholders.
confidence, difficulty in attracting
customers and talent, negative media
coverage.

➢ Information Management
At Dalmia Bharat, we acknowledge the threat of ever evolving Cyber-attacks and we are continuously
improvising the Information and Cybersecurity posture by defining and implementing right set of
policies, procedures and controls to manage these 'new age' Risks by adopting Global Standards and
leading practices. We have implemented a series of Cybersecurity controls in the organization that
cover the People, Process and Technology layers. The key aspects of our IT and Information Security
Policies are:

- Be Aware
We organize continuous training and awareness programs on Information and Cybersecurity for our
talents. Our focus remains on sharing the best practices that will not only help our talents at workplace
but also helps to protect from cyber frauds in our personal lives.

- Defence in Depth
We design policies and controls to protect our technology layers including but not limited to
Infrastructure, Business Applications, Communication and Accessibility. We strive to adopt leading
cybersecurity controls that are ‘fit-for-purpose’ and scalable to meet the requirements of our business
ambitions.

- Early Detection and Interception

We perform 24x7 Cybersecurity Monitoring on our mission critical technology infrastructure. Relevant
actions are taken based on findings to mitigate the risks. We also integrate the threat intelligence to
prevent the potential cyber-attacks.

- Data Protection
We have put in various controls to protect enterprise data from external and internal data leakage
attacks and continuously improvise the data protection program.

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- Test of Effectiveness
Our technology environment undergoes periodic systems' testing, both internal and external. In
addition, we perform ethical hacking and other threat simulation exercises to derive upon focused
action plan to mature our Cybersecurity posture.

- Secured Ecosystem
Design, build and acquire safe and secure IT systems, including infrastructure and business
applications. Our endeavour is to build a strong cybersecurity partner ecosystem and continuously
improve the supplier security posture.

We have a detailed Cyber Security roadmap aligned with our business vision and we will continue to
focus on building a robust and sustainable Cyber Secure environment, keeping ‘People First’ approach
on our mind.

➢ Materiality Assessment

Dalmia Bharat recognizes the importance of materiality assessment as an integral part of its Enterprise
Risk Management (ERM) process. Materiality assessment helps the company identify and prioritize
risks based on their potential impact on the organization's strategic objectives, financial performance,
reputation, and stakeholder interests. By integrating materiality assessment into its ERM process, we
ensure that risks with the highest potential impact are given appropriate attention and resources. This
helps us to make informed decisions, allocate resources effectively, and strengthen its resilience to key
risks that could affect its long-term sustainability and success.

Our Integrated Report contains information that is material to our stakeholders and our ability to
create value. The materiality assessment is conducted and reviewed once in every 2-3 years. We have
provided information on how we strategically address the material issues that is verified by a third-
party assurance provider. The Group Management as well as external stakeholders are involved in the
identification and assessment of the material issues. We started the materiality assessment in the
financial year FY23 and the results of the same would be implemented in FY 24. A third party has been
identified and involved to carry out materiality assessment as per the Global Reporting Initiative (GRI)
latest standard materiality assessment guidelines. The results the analysis would be available and
implemented in the next reporting cycle (FY 24).

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 Environmental Disclosures

➢ Climate change mitigation

Our/ commitment is to achieve carbon negativity business operation by 2040.

We are committed to the Science-Based Targets initiative (SBTi) in accordance with the 1.5-degree
scenario outlined in the Paris Agreement and we already have below 2-degree Science Based Target
approved for both Scope 1 and Scope 2 emissions. To translate our carbon-negative roadmap into
actionable and measurable objectives, we have developed the Dalmia Determined Contributions
(DDC). These contributions align with the Paris Climate Agreement and Sustainable Development
Goals and consist of a combination of existing and innovative strategies. To successfully meet our
ambitious targets, we emphasize continuous growth, sustainability, and decarbonization efforts across
our operations.

In terms of transitional risk, we have created both short-term and net-zero (long-term) roadmaps,
which have been endorsed by the Science-Based Target Initiative (SBTi). These roadmaps outline the

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strategies and financial planning required to achieve our targets over the coming years. Our roadmap
includes specific actions to reduce emissions while considering our business expansion and growth.
Moreover, we have implemented an internal carbon pricing mechanism to support additional carbon
reduction initiatives.

Dalmia Bharat has set carbon emission reduction targets, validated by the Science Based Targets
Initiative (SBTi), aiming to reduce Scope 1 CO2 emissions by 32% and Scope 2 CO2 emissions by 61.9%
by FY34, using FY19 as the baseline year. Additionally, our long-term goal is to achieve carbon neutrality
by 2040, which surpasses the ambitions of the global cement sector. To achieve this, we have already
established a well-structured roadmap and strategy in place, outlining our path to carbon neutrality
by 2040. We have achieved carbon footprint of 463 KgCO2/t cementitious material (FY 23) against
baseline of 546 KgCO2/t cementitious material (FY 19).

Parameters Unit FY-22-23

CO2 emissions
Total direct CO2 emissions – gross (Cement) Million tCO2/year 12.41
Total direct CO2 emissions – net Million tCO2/year 11.85
kg/t of cementitious
Specific CO2 emissions – gross material 485
kg/t of cementitious
Specific CO2 emissions – net material 463
Improvement Rate (Over 1990) 44%

Emissions
Overall coverage rate % 100%
Coverage rate continuous measurement % 100%
PM Emission Absolute Tons/year 468
PM Emission Specific g/tonne clinker 31
NOx Emission Absolute Tons/year 11,182
NOx Emission Specific g/tonne clinker 745
SOx Emission Absolute Tons/year 3,202
SOx Emission Specific g/tonne clinker 213
Average Mercury (Hg) Emission Tons/year 0.01

Fuels and Raw Material

Kiln fuels million Tons/year 1.89
Total Energy from fuels used in clinker production TJ 46,714

Alternative fuels Tons/year 5,22,986

Energy from alternative fuels TJ 7,177
Alternative fuel rate (kiln fuels) % 15%

Biomass fuels Tons/year 39,698

Energy from biomass fuels TJ/year 795
Biomass fuel rate (kiln fuels) % 2%

Total raw materials for clinker produced million tons 22.43

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 Total alternative raw material for clinker produced
(ARM) million tons 0.86
Total Raw Materials for cement produced million tons 10.57
Total Alternative Raw Materials for cement produced
(ARM) million tons 10.13
Total Alternative Raw Materials for cement produced
(% ARM) as per GCCA % 42%
Specific heat consumption for clinker production MJ/tonne 3,112
Clinker/cement (equivalent) factor Number 58.5

Energy consumption
Total Renewable Energy Consumption MWh 9,53,531
Total Non-Renewable Energy Consumption MWh 1,63,47,922

Safety
Number of fatalities, directly employed Number Zero
Number of fatalities, contractors and sub-contractors Number Zero
Number of fatalities, third parties Number Zero
Number of lost time injuries (LTI), directly employed Number 1
Number of lost time injuries (LTI), contractors and
sub-contractors Number 7
LTIFR, directly employed - 0.17
LTIFR, contractors and sub-contractors - 0.21
LTI severity rate, directly employed - 14.5

Water
Total Water withdrawal million m3/year 4.59
Water discharge million m3/year -
Water Consumption (Total Water withdrawal – Water
Discharge) million m3/year 4.59
Litres/tonne of
Amount of Water Consumption per unit of product cementitious material 179.4
Number of sites Number 14
Number of sites with a water recycling system Number 14

Gross GHG emissions as per GRI definitions

Scope I Emission (GRI) million tCO2/year 13.06
Scope II Emission (GRI) million tCO2/year 0.59
Scope III Emission (GRI) million tCO2/year 1.32
We have Zero fatality and Zero harm as a running safety target for every year

➢ Biodiversity

Dalmia Bharat Limited performs biodiversity risk assessment and Environmental Impact Assessment
(EIA) periodically and before the acquisition of new sites for setting up manufacturing units. We
perform environmental impact assessment (EIA) before we acquire any plants or during expansion of
plants and ensure there are no biodiversity risks. We also periodically assess our operations' impact
on biodiversity which includes pollution check, noise check, water availability, programs for protection
of wildlife, etc. All the sites assessed have no risks related to biodiversity loss or degradation. However,
we have biodiversity protection and management plans at all sites as part of our environment
management system, which are periodically reviewed.

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 Biodiversity Impact Assessment Indicators Number of Sites Area (Hectare)

Total number and the total area of our own

14 4,200
operational sites

Coverage for biodiversity impact assessments

14 176,0001
for our own operational sites

Of the sites assessed, sites having a significant

biodiversity impact, or are in proximity to
0 0
critical biodiversity, and the total area of
these sites

Of those sites that have a significant

biodiversity impact, or are in proximity to
critical biodiversity, sites having a biodiversity 14 0
management plan, and the total area of these
sites

Dalmia Bharat is deeply committed to biodiversity management and assessment. We recognize the
importance of protecting biodiversity and ecological balance in the areas where we operate. As part
of our sustainability efforts, we have implemented biodiversity management plans at all our operating
sites. These plans are designed to safeguard and enhance biodiversity and ecosystem health around
our facilities. Biodiversity impact assessments have been carried out at all our mines and seven cement
plants. The assessments have revealed that none of our mining sites or plants are located near critical
biodiversity areas. To proactively protect and enhance biodiversity, we have developed comprehensive
biodiversity management plans that encompass a 10 km radius from the boundaries of our facilities.

We conduct thorough biodiversity impact assessments across our mining sites and cement plants to
understand their potential impacts on the surrounding environment and biodiversity. These
assessments help us identify any risks and develop effective mitigation measures to minimize our
ecological footprint.

The preservation of environmental balance and biodiversity is of utmost importance in maintaining

the ecosystem's value within any region. During the early stages of industrialization, the impact on
ecosystem health was considerable, necessitating the implementation of rigorous mitigation and
management plans for industrial projects. In alignment with sustainable development goals set by
national and international biodiversity authorities, conducting environmental impact assessments and
obtaining prior approval have become mandatory for establishing industrial projects.

1
As per the guidance provided in the DJSI, the assessment for the critical and high biodiversity area
identification carried out based on maximum 2 km radius proposed for the biodiversity assessment:
2 km radius of each site gives an assessment area of 12.57 Sq. km* 14 sites, which would be 176 km 2 = 176,000
Hectares

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• Biodiversity Exposure Assessment (FY 2022 – 23)

In FY 2022-23, Dalmia Bharat conducted biodiversity exposure and assessment study on the
environmental baseline survey conducted within the 10 km buffer zone of Dalmia Bharat Cement
Limited, situated in Thamaraikulam Village, Ariyalur district, Tamil Nādu. The study indicates that the
cement industry's operations may potentially have significant impacts on the water, air, and land
environments, prompting a need for thorough environmental protection measures. The main
objectives of the study were –
• To prepare a land use/ land cover classification map for the study area covering the 10-kilometre
radius of the cement factory site. The prime idea behind deriving the land use classification is to
ensure the current land ecological status of the nearby locations of the factory and to check if
there are any vulnerable sites that need to be mitigated in accordance with the nature of
prevalent stress.
• To identify and represent the major land use land cover features of the study area.
• To prepare an ecological sensitivity map for understanding the ecological sensitivity of the
region.
• To make a detailed assessment of risks to biodiversity from the project as well as to understand
the risks to project arising from these. Based on these observations, to prepare suitable
mitigation plans for the conservation of the buffer area around the factory.

Based on the field observations conducted within the 10 km buffer of the project site, no species listed
in the IUCN (International Union for Conservation of Nature) scheduled list were recorded. Within this
buffer zone, a total of 53 plant species were identified and documented based on visual observations
in the field and secondary information obtained from local residents. Regarding the faunal diversity,
33 different groups were identified and recorded, including 12 mammalian classes, 7 reptilian classes,
2 amphibian classes, 11 insecta classes, and 1 archnidae class. It is important to note that none of the
identified plant species in the study area are listed in the IUCN red list. Notably, among the faunal
diversity, the Peacock has been identified in the study area, which is categorized as a schedule-1 animal
according to the IUCN red list.

To improve the environmental health quality and biodiversity around the project area Dalmia Bharat
Limited will implement the conservation plan along with budgetary allocation. All above activities will
be carried out with the consultation of local forest department and Gram Panchayat of respective
villages.
The following conservation measures are being undertaken during the operation phase-
• Increasing the tree cover in the buffer area for shelter and roosting of peacocks. This will be
achieved by planting of tree groves in buffer area.
• Wildlife protection display boards/signage will be displayed along the roadside. New sign
board with better nighttime vision will be installed in corridor roads.
• Measures will be undertaken to sensitise the kitchen personnel about the presence of peafowl
in the area so that no kitchen waste is found scattered around the camp site.
• Creation of awareness programme among working personnel involved in the project activity.
• Discharge of wastewater and dumping of solid waste will be undertaken after proper
treatment to minimize the contamination in water-soil system in the vicinity of the project site.

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 • Conduction of awareness programme for project personnel associated with transportation, to
ensure that he follows the rules properly and drive slowly in the Peafowl habitat area
particularly during night-time.
• Distribution of pamphlets, booklet, T-Shirts, Hats containing information, pictures and
conservation message about the Peafowl during awareness programs like rally, student
competition, community meeting, training workshop.
• Created awareness among local people, villagers, district administrative staff and forest
personnel, NGOs and educational institutes for the protection, research and monitoring of
Peafowl.

➢ Supply Chain Sustainability

At Dalmia Bharat, as part of our commitment to sustainability and responsible business practices, we
recognize the importance of identifying and addressing material risks that are present in our supply
chain. Our Supplier's ESG Program is under development, and we are actively working on aligning our
purchasing practices with Supplier Code of Conduct and ESG requirements. We also conduct regular
reviews of our purchasing practices to make sure that they are in line with our sustainability objectives.

We have integrated ESG (Environmental, Social, and Governance) principles into our supply chain
management strategy. As part of this effort, we have revised our existing supplier code of conduct to
include comprehensive coverage of all ESG parameters. Both our existing suppliers and new suppliers
will be required to comply with this updated supplier code of conduct.

Furthermore, we have developed a detailed plan to identify our most critical suppliers from based on
factors such as the highest expenditure and reliance on a single source supplier. We are actively
engaging with these suppliers, conducting self-assessment exercises and plan to provide them with
dedicated training sessions during the current financial year to improve their ESG performance. We
have integrated our self-assessment questionnaires with our newly launched digital supplier platform
ARIBA.

Moving forward, we will be setting up specific targets for ESG performance in the subsequent year.
Our goal is to screen 100% of new suppliers for ESG criteria and increase awareness through effective
training sessions for our tier 1 suppliers in coming years.

Supplier Screening - We have started the supplier screening through ESG Vendor evaluation process
through online portal, in which supplier need to fill the questionnaire and accordingly they get the
scored.

S. No. Supplier Type Description

1. Total number of tier-1 suppliers 189 suppliers
Total number of significant
2. 15 suppliers
suppliers in tier-1
Percentage of total spend of
3. 67.4%
significant suppliers in tier-1

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 Supply Chain Sustainability Evaluation Score Assessment Guideline
1 This process shall be applicable to all the vendors.
This Assessment is purely Based on response (documents) received from Vendor along with the
2
self-assessment score sheet.
Our In-house Auditor will check the documents shared by the vendor and provide his score on
3
the basis of received information.
The Vendor shall be marked on the basis of the following parameters.
Compliance Marking
Not initiated 0
Not complying 0
4
Initiated 25% of particular parameter weightage
Partially Complying 50% of particular parameter weightage
Moderate Complying 75% of particular parameter weightage
Fairly complying 100% of particular parameter weightage
The Vendor shall be rated on the basis of the following parameters.
Criteria Score Rating
When score is between 9 – 10 A
5
When score is between 7.5 – 9 B

When score is between 6 – 7.5 C

When score is Below 6 Unacceptable

➢ Supplier Code of Conduct

At Dalmia Bharat Limited ("the Company"), our core belief is in generating value for all stakeholders
involved. We are dedicated to our Company's guiding business philosophy of 'Clean & Green is
Profitable and Sustainable', which drives us to create positive economic, environmental and social
impact. We recognize the crucial role played by our suppliers in our success, and thus, we aim to build
enduring partnerships with suppliers who share our commitment to sustainable development.
To ensure responsible and ethical practices, we expect our Suppliers to conduct their businesses in
accordance with the applicable law and adhere to relevant regulations. Our Supplier Code of Conduct,
which can be found on the Dalmia Bharat website, sets forth these principles.

The Code serves as a common standard for ethical conduct while promoting a mutually beneficial long-
term relationship with our suppliers. It addresses important issues outlined in the United Nations
Global Compact (UNGC), covering areas such as human rights, labour, environment, and anti-
corruption. By following this Code, together, we contribute to the purpose of a more sustainable and
responsible business environment for a better future.

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 Social Disclosures

➢ Stakeholder Engagement Procedure

We refer to AA1000 Stakeholder Engagement Standard for the guidance to follow the stakeholder
engagement process. We have identified and prioritized the stakeholders based on their level of
influence over the organization and the extent to which they are affected by our actions. This step
helps us to allocate the resources and efforts more effectively by focusing on engaging with key
stakeholders who are most affected by operations either way.

With the stakeholders identified and prioritized, department-wise engagement plan is developed and
subsequently carried out at corporate and plants as per the need for the reporting year with the
identified objectives through channels and frequency of engagement. It ensures that engagement
process is well-structured at local intervention level and aligned with the goals of engagement. The
forms of engagement may include face-to-face meetings, surveys, focus group discussions, public
consultation inputs, and through social media, mainstream media and other online platforms.

As stakeholders are engaged, their feedback, concerns, and suggestions are collected and carefully
analysed by the organising department level and subsequently communicated to the corporate
executive group or plant executive team, as relevant, for actions and decision. The information
collected is then integrated into the organization's decision-making processes, strategies, and
operational practices to ensure that stakeholders' interests are considered and adequately addressed
as per the relevance.

Stakeholder Engagement Review –

Key performance indicators (quantitative or qualitative) typically used to measure and report the
success of our local Stakeholder Engagement activities back to the department responsible for
Stakeholder Engagement at group level includes (1) Engagement Method and (2) Value for
stakeholders. The company identified its key stakeholders, including local communities, employees,
customers, suppliers, investors, regulators, NGOs, and other relevant groups. The review evaluated the
company's responsiveness to stakeholder feedback and whether it led to any changes in policies or
practices. Overall, the stakeholder engagement review provided valuable insights to the cement
company, enabling it to strengthen its relationships with stakeholders, enhance transparency, and align
business practices with stakeholder expectations.

Our commitment to giving back to the society has been an integral part of our business philosophy for
over eight decades. We believe in conducting our operations in a responsible manner and creating a
positive impact on all our stakeholders.
1) Collaborative Approach for Global Parli Project - The project aims to provide training to farmers on
various aspects including crop management, optimal water use, organic farming, and other related
topics. The company shifted its approach from merely informing stakeholders to actively collaborating
with them.
2) Cultural Sensitivity Training for the Tribal Development Project - The objective of the project, being
implemented in partnership with NABARD, is to develop orchards (Wadi) as a means of livelihood to
uplift the socio-economic status of tribal households. We provided training to our staff involved in
stakeholder engagement to increase their awareness and understanding of the tribal community's
cultural values and needs.

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In Dalmia Bharat, lessons learned from both good and bad Stakeholder Engagement experiences are
disseminated systematically across the group through a structured and proactive approach.
1) After every Stakeholder Engagement initiative, the company encourages teams to document the
process, outcomes, and lessons learned. This includes capturing both positive outcomes and
challenges faced during the engagement process. These reports are then compiled and shared across
relevant departments and stakeholders.
2) The company conducts training sessions and workshops on effective Stakeholder Engagement
practices. These sessions not only educate employees about the importance of engagement but also
provide practical examples and case studies, including both successful and challenging experiences.
3) Senior leaders encourage open discussions about Stakeholder Engagement experiences and actively
participate in knowledge-sharing sessions.

➢ Key Social Indicators and Metrics

S. Social
Sub-Indicator FY 2021-22 FY 2022-23 Remarks
No. Indicator
Percentage of
open positions
filled by internal 8.4% 10.9%
1 Hiring candidates
(internal hires)
Average hiring
9,984 10,407 Excluding Promoters
cost for FTEs
Excluding
% of FTEs
Promoters. Only Skill
participating in
upgradation training
the employee 49.8% 61.5%
has been factor
development
Training and excluding Health &
2 programs.
Development Safety training
Average amount This is overall
spent per FTE on amount for all types
6,019 6,193
training and of training including
development. health, safety etc.

Employee Voluntary Employee Turnover

3 17.4%
Turnover Rate Rate

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➢ Workforce Breakdown by Gender

Percentage
S. No. Diversity Indicator
(%)

1. Share of women in total workforce (as % of total workforce) 4.09

Share of women in all management positions, including junior,

2. 3.40
middle and top management (as % of total management positions)

Share of women in junior management positions, i.e. first level of

3. 3.36
management (as % of total junior management positions)

Share of women in top management positions, i.e. maximum two

4. levels away from the CEO or comparable positions (as % of total top 9.01
management positions)

Share of women in management positions in revenue-generating

functions (e.g. sales) as % of all such managers (i.e. excluding 1.89
5.
support functions such as HR, IT, Legal, etc.)

Share of women in STEM-related positions (as % of total STEM

6. 2.16
positions)

➢ Gender Pay Indicators

Average Women Salary Average Men

S. No. Employee Level
(INR) Salary (INR)

1. Executive level (base salary only) 8,965,501 16,582,936

Management level (base salary

2. 1,248,049 1,304,894
only)

Non-management level (base salary

3. 240,218 407,479
only)

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➢ Human Rights

We, Dalmia Bharat Limited (“the Company”), recognize our responsibility towards operating with
respect to human rights. Respecting and protecting human rights form a fundamental part of our
Company’s values and is vital for our business to operate sustainably.

The Company commits to respect the human rights in our operations, value chains and communities,
in which it operates. The Company have integrated all aspects of human rights in its business
operations, policies and governance structure. Dalmia Bharat Limited recognizes individuals and
communities as holders of human rights and:

• Integrates an approach that respects and protects Human Rights in Business Strategy and
Risk Framework
• Promotes awareness of the human rights with our employees at various levels through
training and communication.
• Respects individual’s human rights and shall not discriminate or harass anyone on the basis
of race, sex, colour, national or social origin, ethnicity, language, religion, caste, age,
disability, sexual orientation, gender identity or expression, citizenship status, political
opinion or any other status protected by applicable laws.
• Is an equal opportunity employer, in all aspects of employee life cycle like Hiring, Placement,
Development, Training, Advancement, Compensation, Relieving etc. Decisions related to all
these aspects are based on the Organization & Role requirements along with the
Performance and Potential of the person.
• Prohibits all forms of child labour, forced / trafficked labour, discrimination and harassment.
• Provides our employees with a safe and healthy work environment and comply with all
safety and health laws and regulations.
• Undertakes an extensive due diligence process to identify, assess and manage potential risks
and impacts.
Any person violating human right policy means he/she is also acting against the Company’s Code of
Conduct and shall be considered for appropriate action as defined in Dalmia Code of Conduct.

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