ESG: Paving the way for a positive future

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ESG: Paving the way for a positive future

At the heart of our mission is a deep responsibility to drive change. We integrate Environmental, Social, and Governance (ESG) principles into every aspect of our business, aligning with the United Nations Sustainable Development Goals (UN SDGs). This alignment equips us to address key global challenges like climate change, water scarcity, biodiversity loss, and social inequities.

Environmental Leadership

Environmental stewardship is at the core of APAR’s strategy, practices, and operations. With a focus on promoting the circular economy through increased recycling, the company actively reduces waste and conserves resources. It drives efforts to lower Scope-1 and Scope-2 Green House Gas (GHG) emissions within its operational boundaries to help combat climate change.

Recognizing the importance of collaboration, APAR partners with suppliers to
reduce resource intensity and procure sustainable products. This reduces the company’s environmental footprint and encourages eco-friendly practices throughout the supply chain. APAR efficiently manages waste with robust systems, prioritizing responsible disposal and innovative recycling methods. Strategic planning, process optimization, and employee engagement ensure sustainable resource management and minimize environmental impact.

APAR’s commitment is recognized by the ‘Carbon Disclosure Project’ (CDP), which awarded the company a ‘B’ score in 2023 for its environmental initiatives. Thus, exemplifying how responsible business practices and
environmental stewardship drive long-term success and a better future for all.

APAR’s holistic ESG roadmap

Aligning with the UN SDGs through below 8 transformative focus areas

Renewable Energy Consumption:

The share of renewable energy consumption increased from 4% in FY 2022-23 to 7.3% in FY 2023-24. Additionally, two wind-solar hybrid projects are being commissioned, ensuring a significant increase in the share of renewable energy consumption by June 2025.

Energy Intensity Reduction

A 4% reduction in energy intensity was observed in the manufacturing processes of our cable and conductors, decreasing the energy intensity from 0.56 MWH/MT to 0.54 MWH/MT. This improvement is attributed to various measures undertaken at the plants, including energy audits and the implementation of energy audit findings.⁵
Despite an increase in energy consumed due to higher manufacturing output, the energy intensity has decreased.

Pathways to Sustainability:

Leading with Green Manufacturing At APAR, sustainability is an endto-end mission, encompassing everything from sustainable manufacturing processes to delivering products that support the global green energy transition. Key highlights include implementing cleaner manufacturing practices, sourcing sustainable raw materials, and partnering with responsible suppliers.

APAR share of renewable energy consumption

Water Consumption Reduction

Absolute water consumption reduced from 385,974 KL in FY 2022-23 to 376,139 KL in FY 2023-24.

In addition, water intensity reduced by over 13%, from 26.89 KL/ Rs. Cr. turnover to 23.29 KL/ Rs. Cr. turnover.

We have taken various initiatives at all our facilities, which include reduction in demand through process improvement, recycling through increased usage of Sewage and Effluent Treatment Plants (ETP and STP) and Rainwater Harvesting (RWH). Consequently, there has been a significant reduction in our water footprint intensity over the past two years.

Emission Intensity Reduction

Scope-1 and Scope-2 emission intensity, in terms of physical output, has decreased from 0.289 tCO2e/ MT to 0.275 tCO2e/ MT * (4.84%) due to various measures taken at the plants. This is in line with our journey following a low carbon pathway. Our Scope-1 and Scope-2 emissions were assessed by
external independent third-party assurance agency, M/S DNV Business Assurance India Private Limited, India during FY 22-23 and FY 23-24.

Scope 1 Emissions: Direct GHG emissions from company owned or controlled sources like boilers, vehicles, and production processes.

Scope 2 Emission: Indirect GHG emissions from purchased electricity, steam, heat, or cooling, accounted for in the company’s GHG inventory due to its energy consumption.

At APAR, we believe investing in our people and community is the foundation for lasting change. Our mission is to build organizational capability and capacity, focusing on employee well-being, health and safety, and gender diversity.

We are proud to be certified as a Great Place to Work (GPTW) from February 2024- 25, a recognition that is based solely on employee feedback and assessment. By fostering a culture that encourages continuous skill development, we create a dynamic workplace that attracts top talent.

Our commitment to social responsibility earned us a Silver Medal from EcoVadis* in 2023, placing us in the 79th percentile. EcoVadis is a globally recognized platform that rates businesses’ sustainability based on four key categories: environmental impact, labour and human rights, ethics, and procurement practices.

APAR is dedicated to empowering our people and transforming lives through employee development, community engagement, and social impact initiatives, building a stronger organization and a better world for all.

Our mission is to build organizational capability and capacity, focusing on employee well-being, health and safety, and gender diversity.

Employee Engagement:

Events fostering belonging and enthusiasm: such as Safety Week, festival celebrations, Sports Day, and domestic/international visits.
Reward and recognition programs: run monthly to acknowledge outstanding contributions.
Employee engagement surveys: proactive initiatives to enhance the work experience.

Governance Excellence

At APAR, we uphold the highest standards of governance, ensuring transparency, accountability, and ethical conduct across all levels of our organization.

APAR recognizes that strong governance is the bedrock upon which sustainable practices are built and maintained. To ensure that sustainability remains at the forefront of its operations, the company has adopted a three-tiered Governance Architecture that harnesses the collective expertise and dedication of its workforce.

At the foundation of this framework are the Sustainability Champions, a team of passionate individuals drawn from various geographies, businesses, factories, and functions. These champions are the driving force behind the actual implementation of sustainability initiatives, ensuring that the company’s vision is translated into tangible action on the ground.

The middle layer of this governance structure is the Sustainability Steering Committee, a team of seasoned leaders from APAR’s three core businesses. This committee is responsible for planning and executing sustainability initiatives, leveraging their deep understanding of the company’s operations and the industry landscape to chart a course towards a more sustainable future.

Overseeing this entire framework is APAR’s Board of Directors, who provide strategic guidance and oversight to the company’s sustainability efforts. The board sets ambitious targets, reviews progress, and ensures that sustainability remains a key priority in the company’s decision-making process.

Overseeing this entire framework is APAR’s Board of Directors, who provide strategic guidance and oversight to the company’s sustainability efforts.

To further strengthen its commitment to sustainability, APAR has established a dedicated board-level committee, the Corporate Social Responsibility and Sustainability (CSR & S) Committee. This committee is tasked with reviewing sustainability goals, assessing ESG risks and opportunities, setting ESG targets, and monitoring performance against established metrics. It also oversees the development and implementation of sustainability related policies, programs, and initiatives.

The company’s dedication to sustainability is also reflected in the personal commitment of its leadership. APAR’s Chairman and Managing Director has completed a specialized course on ‘Business and Climate Change: Towards Net Zero Emissions’ from the prestigious Cambridge Institute for Sustainability Leadership (CISL).

Our robust governance framework is designed to foster trust and integrity, driving long-term value for our stakeholders. By implementing stringent compliance measures and fostering a culture of ethical decision-making, we reinforce our commitment to responsible business practices and sustainable growth.