Conserve energy and reduce emissions

A systematic GHG Emissions inventory (covering Scope 1, 2 and 3 emissions), risk-assessment and mitigation strategies, transition to renewables and a multitude of energy conservation initiatives have created a strong foundation for us to achieve our commitments towards our goals.

GHG EMISSIONS INTENSITY (tCO₂e/unit crore revenue)

SCOPE 3 EMISSIONS

Our value chain3 accounts for 95% of the overall Scope 3 emissions. In order to have complete transparency and accountability towards our value chain emissions, we completed inventory of Scope 3 emissions for all the categories applicable for Marico India.

In FY21, the Scope 3 GHG emissions for India operations stood at 516,146 tCO₂e resulting in a ~2% intensity reduction as compared to FY20. Change in manufacturing footprint landscape, operational shifts induced by the pandemic and enhancement of reporting boundaries as compared to the last two years resulted in the reduction.

FUTURE FOCUS AREAS

To guide our efforts going forward, we have identified several key actions across our operations and value chain to minimise the climate change impact. The interventions include:

CARBON NEUTRALITY AND ECOSYSTEM RESTORATION

Marico’s Perundurai facility was certified as ‘Carbon Neutral’ by external assurance agency DNV GL. The plant completely operates on renewable energy sources and has been upgraded with smart energy installations that enhance its overall operational efficiency. Further, this plant has a Miyawaki forest comprising of 1100 trees within the premises. The forest provides a natural sink for carbon sequestration and restores the ecosystem.

The facility has been awarded the prestigious GreenCo Platinum rating certification. This facility also received ‘Platinum’ level certification for achieving the Green Building Standards by CII - Indian Green Building Council (IGBC).

CII’s Green Built Environment publication (Volume IV) recognises Marico’s Perundurai unit as a Champion redefining India’s Sustainability Landscape

CDP CLIMATE CHANGE DISCLOSURE

Marico responds to the CDP India Climate Change disclosure on an annual basis. In FY21, Marico was proud to receive A- rating, making its place among the top 16 Indian companies to receive the rating in 2020.

Climate Change

ENERGY INTENSITY (gigajoule/unit cr. Revenue)

Tech-based interventions to improve energy efficiency

In FY21, a host of tech-enabled energy efficient measures were implemented across Marico’s facilities that led to total energy savings of 3,79,123 kWh/annum. Some of the key interventions deployed across facilities include improving operational efficiency of copra crushing process, installation of high-speed machinery that optimise consumption patterns, elimination of energy-intensive grinders and installation of automatic streetlight sensors, motion sensors for LED lights and photoconductivity principle-based Light Dependent Resistor (LDR) lighting units.

Offsetting water consumption

MEASURING OUR WATER FOOTPRINT

WATER NEUTRAL OPERATIONS

We have been harnessing the power of technology and scientifically advanced practices towards transitioning to water neutral operations. Marico’s Perundurai plant is a water neutral operation. By adopting a host of operational excellence measures such as water efficient systems, recycling processes and infrastructure towards substantial rainwater harvesting, this plant has been able to reduce water intensity by 68% in FY21 as compared to base year FY14.

CDP WATER DISCLOSURE

In line with our commitment towards securing shared water resources for business and community sustenance, Marico has been responding to the CDP India Water Security disclosure. In 2020, our CDP water security scores improved to B+. Our water stewardship program, Jalaashay was also recognised as an industry best practice towards addressing water security challenges in low rain-fed areas around workplace and factories.

Water Security

OPTIMISING PROCESSES

A continual focus area is to optimise processes to reduce consumption intensity of water. We measure our consumption intensity using accurate metering facilities and maintenance of monthly logbooks at every facility. Based on our consumption patterns, we identify, formulate, and implement cost-efficient and innovative technologies that lead to an overall efficiency of using water as a resource.

Managing sustainability footprint of products

PSI ASSESSMENTS

The PSI study for Parachute Coconut Oil, Saffola oil and Saffola Oats were aimed at quantification of environmental impacts across the life cycle (cradle to grave) aligned with Product Environmental Footprint (PEF) guidelines. The studies were undertaken in association with Sphera Solutions.

Estimation of environmental footprint using Life Cycle Approach

Mitigate environmental risks in operations

Interventions to mitigate Operational, Environmental and Social Risks

Sustainable Waste Management

As on FY21, most Marico facilities in India have adopted the ‘Zero Hazardous Waste to Landfill’ policy and is striving to implement the same by 2025. Currently, the entire quantum of waste generated during production and administrative functioning of the facilities is handed over to Central Pollution Control Board authorised vendors for recycling or scientifically appropriate disposal methods.

Self waste consumption

Driven by the principles of circularity, we are diligently pursuing the goals of making our operations waste neutral. This means that the waste generated within our operational boundaries (raw material handling and segregation, production, packaging etc) are either treated in-house for reuse or handed over to authorised recyclers for creating plastic pellets that can be added back into the material value chain. In line with our goal to make our operations 100% pellet loss free, we are working with our key partners towards ensuring that there is no leakage of micro-plastics or flakes.

Mapping environmental footprint of international operations

As part of Marico’s sustainability framework, we are committed to transforming the environmental performance of our international operations. This process was commenced in FY20 with the collection, analysis and reporting of environmental performance data on the three critical parameters – Energy, GHG Emissions and Water. Going forward, we will be measuring all KPIs that attribute to Marico’s group sustainability framework.

Integrate circularity into packaging

Key pillars of the Upcycle initiative

Enhance recyclability and recycled plastic use

Continuing our endeavour to use recycled plastic and improve the recyclability quotient of our packaging portfolio, we undertook a wide range of initiatives that enhance circularity. Some of the key ones include:

RECYCLED PET IN HAIR OIL BOTTLES

In our effort towards increasing the quantum of recycled materials in product primary packaging, we successfully ran a commercial trial of recycled PET (r-PET) for one of our value-added hair oil brands. To implement this pilot initiative, we tied up with a key strategic vendor and a converter partner, to provide us with a regular supply of r-PET bottles at our Sanand unit which primarily manufactures value-added hair oil brands. The success of this initiative has propelled us to strategise future interventions for other brands in this category.

POST-CONSUMER RECYCLED FILMS

In FY21, we formed a tripartite strategic partnership with Dow and Lucro Plastecycle, a homegrown Indian recycling company, to collect plastic waste in the form of films from the market, scientifically segregate and then reprocess into recycled polymers. These recycled polymers were later converted to more than 23,000 kg of plastics material in only three months, achieving an emission reduction of 486 tCO₂e.

Reducing use of packaging material

As a part of our efforts to reduce consumption of packaging materials, we leveraged the power of design innovation based on various concepts of dematerialisation. During the year, the projects under design change and innovative efforts coupled with modern techniques saved substantial quantity of packaging material. Some of the key interventions undertaken in FY21 include optimisation of carton dimensions, removal of partitions and leaflets and jar weight reductions. Our Parachute Coconut Oil HDPE bottle and Hair Oil PET bottle are industry benchmark for being the lowest in weight (bottle and cap included).

Extended producer responsibility

Marico, in-line with the Plastic Waste Management (PWM) rules 2018, and the subsequent amendments, has undertaken the Extended Producer Responsibility (EPR) towards collection and environmentally safe disposal of post-consumer plastic waste. The activity was carried out across several states in India along with approved agency partners. During FY21, we completed collection and environmentally safe disposal of 16,30,000 kg of plastic waste as compared to 7,55,000 kg in FY20.

Transform value chain sustainability

KEY THRUST AREAS UNDER MARICO’S RESPONSIBLE SOURCING FRAMEWORK