Material Issues Impacting our Strategy

As we define our goals and strategic priorities, we identify and analyse material matters that may impact our value creation and stakeholders over the short, medium and long term. They provide better understanding of our business impact on stakeholders and vice versa.

Materiality study and process

We conduct extensive materiality study every four years by engaging with all our internal and external stakeholders. We regularly update the position of these material aspects in the materiality matrix, as we keep analysing their status with our management committee. We address highly critical aspects through a structured roadmap and increased engagement with respective stakeholders. In FY 2019-20, we adopted a new approach to finalise material matters for the study carried out in previous years that consists of the following:

  • Internal strategy workshops and calls with all locations to analyse the progress of each material topic
  • Discussing and prioritising issues in monthly Management Review Committee
  • Analysis of global trends and local environment, chemical sector and social challenges

Importance of material issues in business context and how we address them

Material aspects

Its context for now and future

The chemical industry being energy-intensive, it is significantly impacted by volatility in energy prices and macro-economic uncertainty. There is also a growing demand for cleaner fuels.

Impact on our value creation

Inefficient production processes can increase our costs and carbon footprint, diminishing our competitive advantages.

How are we managing

We are working towards transitioning to cleaner fuels. We continuously focus our efforts in energy audits and energy saving drives across geographies.

Its context for now and future

Dealing with twin issues – handling of hazardous chemicals and employee occupational health & safety (OHS). Complacence in individual behaviour creates more vulnerability.

Impact on our value creation

Any process safety gaps and OHS incidents may lead to loss of life, lost days and damage to assets, environment and business reputation. It may lead to discontinued business relationships, increase in insurance premium, etc.

How are we managing

We are committed to continual improvement in responsible manufacturing to achieve Zero Harm to people, assets and environment. We are promoting a safety culture through felt leadership and stakeholder engagement.

Its context for now and future

Rising focus on climate change and Nationally Determined Targets and a shift from disaster recovery to climate resilience.

Impact on our value creation

Climate change can impact the operations directly and indirectly. From operational efficiencies to logistics, the whole value chain can be impacted.

How are we managing

We have conducted several vulnerability studies, including the extreme 2-Degree Scenario analysis at our Mithapur plant, located near coast, to protect the operations and local communities.

Its context for now and future

Increased expectations from stakeholders and community. Biodiversity is also our focus to preserve the ecosystem.

Impact on our value creation

Our extensive work in the vicinity of our operations has led to a positive impact on the local environment and our reputation.

How are we managing

Focus and alignment on:

• Responsible mining/supply chain

• Species conservation

• Elimination of commodity-driven deforestation in supply chain

• C-SCAPES Centre at Mithapur

Its context for now and future

Rising concern about plastic waste and unprecedented threats to land and marine ecosystems

Impact on our value creation

Water and waste management are two critical areas we are working on with our value chain partners, government, and the community.

How are we managing

Focus and alignment on:

• Integrated watershed management and rainwater harvesting

• Water recycling and reuse

• Use of plastic waste as fuel in cement plant

• Recyclable packaging material

• Bulk transportation to reduce consumption of packaging materials

Medium Critical Material Aspects

M6

Customer Engagement

Being an innovative science-led company, our business depends on understanding the needs of existing and potential customers. This assists in developing products that provide a value-added proposition. Higher engagements with customers happen through satisfaction surveys, contact programmes, e-customer care, ChemConnect call centre, senior leadership visits, annual distributors’ conference, COO club, etc.

M7

Community Engagement

A focus on the community in our territories enables society and our business to grow. It enhances our reputation among global investors and helps us meet regulatory requirements. We undertake interventions in building economic capital, ensuring environmental integrity, providing enablers for development and cross-cutting themes of diversity, empowerment and affirmative action.

M8

Product Stewardship

There is an increasing demand for sustainable products, from both regulators and customers to tackle climate change. We, together with our value chain ensure that our products are manufactured, stored, transported, used, disposed of and recycled with high regard for human health, safety and environmental stewardship. This makes our products competitive in a strictly regulated scenario.

M9

Performance Standards for Contractors / Suppliers

Our business performance and that of our contractors, suppliers, and partners are interdependent. We have set high onboarding standards and ensure they have appropriate skills to do business with us. We conduct Suppliers Audit programme for critical suppliers and sustainability assessments during preboarding of new ones. Further, we support them in building robust systems.

M10

Spills

Oil and chemical spills can cause serious damage to the environment and our business. We have set high standards for product handling, storage, transportation, and distribution, and also train and inform distribution value chain. Incidents related to product spills, transport accident, bad products and packaging quality are tracked and assessed for continuous improvement.

M11

Diversity

Diverse perspectives within organisations lead to faster problem-solving and higher innovation. Our commitment to sustaining a diverse workforce is helping us expand our global operations. We embrace programmes like Tata LEAD and Tata Affirmative Action and undertake employment, entrepreneurship and education initiatives.

M12

Ethics and Governance

We are renowned for our integrity and ethics. Our employees ensure integrity and ethics in all business conduct and dealings. We also encourage value chain partners to raise the bar on human rights, anti-bribery and anti-corruption measures. We are constantly striving to improve our governance framework and policies by benchmarking to best practices. Deployment of ethics policies is done through our Ethics Counsellor. Greater awareness of Tata Code of Conduct is created during Ethics Month.

M13

Employee Engagement

It is essential to nurture the passion and commitment of our workforce, as their interactions with stakeholders have a direct bearing on our business outcomes. We provide learning opportunities, cross-geography deputations, reward and recognition, and feedback platforms. Developing team management skills is another area of focus.