Material Issues Impacting Value Creation

We analyse various environmental, social and governance issues impacting our businesses, value creation and stakeholders. These help us define strategic priorities, mitigate actions and better understand our effect on the environment and the stakeholders’ impact on our value-creation.

Materiality analysis

We conduct a thorough analysis of the external and internal environment through a quadrennial materiality exercise involving all internal and external stakeholders. The position of material issues are updated in the materiality matrix basis these findings along with continuous status analysis by the Management Review Committee (MRC). A structured roadmap and increased engagement with respective stakeholders helps address critical aspects.

In FY 2020-21, we conducted product value chain analysis for TCL India and Rallis operations in a phase-wise manner which includes extraction, inbound logistics, production, outbound logistics and customer. Each part of this value chain was assessed on multiple parameters with the relevant team members. Based on this, criticality screening was conducted to understand the degree (high, medium, low) of economic, environment, social impact and identify actionables to strengthen the value chain.

Identifying material issues

  • Study of internal and external factors
  • Product value chain and SWOT (all group companies) analysis

Evaluating current status

  • Engaging with internal cross function team
  • Evaluating the long-term strategy plan for SBTi
  • Progressing to net Zero Carbon emission

Mapping ambitions

  • Prioritising actionable themes for now and for 2030
  • Revamping the strategy to align with all geographies

Identifying critical and key action areas

  • Prioritising the key areas into short, medium and long-term needs as per internal and external stakeholders’ relevance

Approach to finalise material matters

  • Internal Strategy workshop
  • Team calls / meetings

to analyse progress of material issues

  • Discussion
  • Prioritising

by Leadership team

  • Global trends
  • Local environment
  • Sector
  • Social


Material topics

Highly Critical Areas

  • Circular Economy (water & waste)
  • Biodiversity
  • Climate Change
  • Health & Safety
  • Energy

Medium Critical Areas

  • Customer Engagement
  • Community Engagement
  • Product Stewardship
  • Performance Standards for Contractors / Suppliers
  • Spills
  • Diversity
  • Ethics and Governance
  • Employee Engagement

Low Critical Areas

  • Logistics
  • Employee Benefits

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

Material aspects and its context

A valuable economical model to maximise natural materials usage by recycling them during the value chain processes

Impact on our value creation
  • Inefficient production processes can increase our costs and carbon footprint, diminishing our competitive advantages
Mitigating actions
  • Emphasis on continuously enhancing recycling of water and waste materials
  • Soda Ash transported in bulker to reduce plastic packaging
  • Using plastic waste as fuel in Cement Kiln
  • Watershed management and rainwater harvesting

Biodiversity and ecosystem preservation directly contribute to primary development and community well-being

Impact on our value creation
  • Biodiversity loss may lead to irregular water supply, food availability, reduced natural resources, temperature rise, etc. which may impact business operations and life on earth
Mitigating actions
  • Biodiversity policy launched in June 2020 to strengthen commitment and link it across the value chain
  • Biodiversity Conservation and Restoration programmes

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 directly and indirectly impact the operations across the value chain right from operational efficiencies to logistics
Mitigating actions
  • Committed SBTi to reduce absolute carbon emission and progress to Net Zero Carbon emission
  • Completed climate adaptation study for Mithapur
  • TCE (UK) to commission carbon capture plant to become a net zero carbon Sodium Bicarbonate manufacturer

Our employees face risks of working with hazardous chemicals at power plants, occupational health & safety (OHS) and complacent individual behaviour

Impact on our value creation
  • Adverse incidents (loss of life, lost days, damage to assets, environment) due to safety gaps may impact business operations, reputation, relationships and lead to increase in insurance premium
Mitigating actions
  • Continual improvement in responsible manufacturing and lead indicator tracking
  • Felt leadership and stakeholder engagement to promote safety culture
  • Digitalisation and data analytics
  • Safety risk assessment and audit

Being energy-intensive, chemical industry is impacted by volatility in energy prices and availability and the growing concern for the environment (cleaner fuels)

Impact on our value creation
  • Inefficient production processes can increase our costs and carbon footprint, diminishing our competitive advantages
Mitigating actions
  • Constantly transitioning to cleaner fuels
  • Energy audits
  • Energy efficiency projects across sites
Customer Engagement

We constantly engage with customers to meet their needs of value-added products and responsive services. This ensures high customer satisfaction and retention.

Community Engagement

We undertake social initiatives globally to drive socio-economic development, protecting the environment and biodiversity and towards supporting the community during emergencies. This ensures business and societal growth and adherence to regulatory requirements, thereby enhancing our reputation among global investors.

Product Stewardship

We, along with our supply chain, are undertaking initiatives to make our operations safer and more sustainable across the value chain (manufacturing, storage, transport, consumption, disposal and recycling). This enhances our competitiveness and enables us to meet the growing expectations for sustainable products from regulators and customers.

Performance Standards for Contractors / Suppliers

We have robust processes (conducting audits and sustainability assessments) to onboard contractors, suppliers and partners having appropriate skills and following robust practices. Further, we support them in building robust systems. This enables us to execute operations efficiently and ensures win-win relationships.


We follow global best practices for product handling, storage, transportation and distribution. We also encourage and train our distribution value chain to adopt similar practices. We have put systems to track and assess incidents related to product spills, transport accidents and product and packaging quality. This prevents serious incidents and protects our reputation.


We undertake programmes such as Tata LEAD and Tata Affirmative Action alongside employment, entrepreneurship and education initiatives to drive diversity across race, sex and age. Presence of diverse perspectives is enabling problem-solving and innovation across the organisation, positioning us to grow global operations.

Ethics and Governance

As a Tata Group company, we have high standards of ethical practices. We ensure integrity and ethical practices across all our dealings as well as those involving our supply chain partners who are required to follow practices on human rights, antibribery and anti-corruption. We are constantly improving our governance framework and policies by benchmarking to best practices and creating awareness of the Tata Code of Conduct.

Employee Engagement

Our people focus on nurturing their passion and commitment through multiple wellness, learning and development, engagement, building team management skills, reward and recognition initiatives. We encourage cross-geography and cross-functional deputations to rejuvenate enthusiasm. These initiatives make us a great place to work with high level of employee engagement and satisfaction index, resulting in higher work productivity to achieve desired goals together.