Task Force on Climate-related
Financial Disclosures (TCFD)
FY2022-23 Summary Report
Grasim Industries Limited
Grasim’s Approach to Climate Change and Net Zero
Index
About this Report 2
Message from the Managing Director 3
Message from the Chief Sustainability Officer 4
About the Company 5
Grasim’s Sustainability Journey: Key Milestones 6
Overview 7
GOVERNANCE
Organisational Climate Governance Structure 9
Board Oversight 10
Management Oversight 11
Our Policies 11
STRATEGY
Our Climate-related Risks and Opportunities 13
Transition Risks 14
Transition Risk Scenario Analysis 14
Embracing Sustainability: A Journey Towards
Decarbonisation 18
Physical Risk 20
Physical Risks Scenario Analysis 20
Climate-related opportunities 22
Our Sustainable Products 24
RISK MANAGEMENT
Risk Governance 27
Processes for identifying and
assessing climate-related risks 28
Monitoring and Managing Climate Risk 29
METRICS AND TARGETS
Energy Consumption 31
GHG Emissions 33
Water 35
Way Forward 36
TCFD Mapping Index 37
Abbreviations 38
Further information can be
found online at grasim.com
About this Report
Grasim Industries Limited (hereafter referred to as Grasim, ‘We,’ ‘Our,’ ‘the Company’) is pleased to present the Company’s first Task
Force on Climate-related Financial Disclosures (TCFD) report for Financial Year (FY) 2022-23. This report offers a detailed insight into
our climate-related financial disclosures, including assessments and management of Physical and Transition risks. It also shares a
transparent update on the governance structure and approach to manage climate-related risks, the KPIs we monitor and the progress
we have made in integrating climate risks and opportunities into our business strategy.
The TCFD report is prepared following the recommendations of TCFD. We are committed to disclosing climate-related risks and
opportunities transparently to our stakeholders. A brief of the report for FY2022-23 is included in the “TCFD Summary” section of our
Integrated Annual Report.
REPORTING PERIOD
The report contains information pertaining to our climate-related data, encompassing energy consumption patterns, GHG emissions
and water consumption for the period: April 1
st
, 2022 to March 31
st
, 2023.
REPORTING BOUNDARY
The report covers our operations spread across the following business lines and locations:
• Viscose Staple Fibre (VSF) - Nagda, Harihar, Kharach and Vilayat
• Pulp – Harihar
• Chemicals – Nagda, Vilayat, Veraval, Karwar, Rehla, Renukoot, Balabhadrapuram and Ganjam
• Textiles – Rishra, Malanpur and Kolhapur
• Insulators – Halol and Rishra
• Viscose Filament Yarn (VFY) – Veraval and Kalyan
FORWARD-LOOKING STATEMENT
Some statements in this report regarding our business pertain to future expectations and are based on discussions about our market position, financial
status, business strategy, and objectives for upcoming operations. These forward-looking statements can be recognised by terms like ‘anticipates,’
‘expects,’ ‘intends,’ ‘may,’ ‘will,’ ‘believes,’ ‘estimates,’ ‘outlook,’ and other similar expressions used when discussing future operational, environmental,
social, and financial performance.
Our forward-looking statements are based on our present expectations, reasonable assumptions, and assessments of projected trends. However, they are
subject to risks, uncertainties, and external factors, which might cause actual results to differ from the projections stated in these statements, and we do
not undertake any obligation to update or revise these statements except as required by law.
FEEDBACK
We look forward to your
feedback regarding this report.
You may reach out to us at:
gilcorp.esg@adityabirla.com
2 TCFD Report 2022-23Grasim Industries Limited
Dear Readers,
I am delighted to present our inaugural
Climate Disclosure for the FY2022-23,
which aligns with the recommendations
of the Task Force on Climate-related
Financial Disclosures (TCFD). Financial
Stability Board (FSB), an international
body that was formulated by G20 after
the London Summit in 2009, created the
TCFD and recommended a set of climate-
related disclosures that companies and
financial institutions can use to better
inform investors, shareholders and other
stakeholders regarding their climate-
related financial risks.
Climate change, among various
dimensions, poses significant financial
risks to the global economy, making
it imperative to provide clear and
comprehensive information about its
impact. The TCFD recommendations serve
as a guide for companies worldwide to
disclose their climate change-related
risks and opportunities while also urging
governments to address this critical issue.
This report is a testament to Grasim’s
unwavering commitment to sustainable
business practices.
We acknowledge the risks and
opportunities associated with rising
temperatures, climate-related policies,
and emerging technologies in our
ever-changing world. We believe that
understanding the potential impact of
future climate scenarios, coupled with
proactive mitigation and intervention
plans, will future-proof our businesses.
It is crucial to comprehend the climate
change risks that may affect our
workforce, local communities, and assets.
By adopting a preventive approach, we
aim to minimise reactive behaviour and
reduce disruptions caused by extreme
weather events across our operations and
value chain.
Climate scenario analysis is an evolving
iterative process, and we anticipate that
the approaches, tools, and data quality
for climate risks and opportunities will
mature over time. As we continue to
transform our business processes, these
assessments will be integrated into
our strategic planning and enterprise
risk management frameworks, thereby
strengthening our resilience and
adaptation to climate change.
Message from the
Managing Director
We extend our gratitude to all stakeholders for their
unwavering support and trust in our commitment to
sustainable practices. Together, we can contribute to
creating a better, more resilient future for our planet.”
We extend our gratitude to all
stakeholders for their unwavering
support and trust in our commitment to
sustainable practices.
Together, we can contribute to creating
a better, more resilient future for
our planet.
Sincerely,
Harikrishna Agarwal
Managing Director
3 TCFD Report 2022-23Grasim Industries Limited
I am delighted to present the first
summary report for Task Force on
Climate-related Financial Disclosures
(TCFD). This report demonstrates our
steadfast dedication to transparency,
responsible business practices, and
sustainable development.
At Grasim, we recognise climate change as
a threat to our planet, communities, and
the global economy. As an organisation,
we firmly believe that addressing climate-
related risks and opportunities is crucial
not only for environmental health but also
for ensuring a resilient and prosperous
future for generations to come.
Throughout this report, we have
aligned our disclosures with the
TCFD’s recommendations, providing
a comprehensive overview of our
governance, strategy, risk management,
and targets concomitant with prevention
of environmental damage. Our disclosures
highlight the concrete steps we are taking
to integrate climate considerations into
our decision-making processes. We
acknowledge that low carbon future
presents significant opportunity for
innovation and growth.
This report reflects our progress towards
a more resilient and sustainable future.
We are currently in the process of
developing a roadmap to achieve our
target of Net Zero GHG emissions that
align with the Aditya Birla Group’s Net
Zero goals. Grasim Industries Limited, a
Company with a diverse products and
businesses portfolio, has set businesswise
targets. The man-made cellulose fibre
business has set a target to achieve
net-zero emissions across all operations
by year 2040. The Chemicals business
aims to procure 25% of its electricity
from renewable sources by FY2024-25
and reduce 30% of Scope 1 and Scope 2
emissions by 2030 over the baseline of
2017. Additionally, the Textile business
strives to increase the share of renewable
power to 70% by 2030.
In the past year, we have achieved 17%
reduction in energy intensity and a 15%
reduction in freshwater withdrawal
intensity compared to the previous
financial year. About 8% of our total
power consumption is now sourced from
renewable sources. We are conducting
studies to measure and map processes
that are key contributors of our total
emissions’ and we are identifying various
levers to reduce our emissions. Majority
of our products like man made cellulosic
fibre, linen and wool drives the agenda
of consciously fashionable. Moreover, we
are investing in various technologies to
make our processes more sustainable and
minimise our environmental impact.
Message from the
Chief Sustainability Officer
We are currently in the process of developing a roadmap
to achieve our target of Net Zero GHG emissions that align
with the Aditya Birla Group’s Net Zero goals.”
We recognise that transitioning
to net-zero emissions will require
collaborative efforts, and we highly value
the opinions and insights provided by
our investors, customers, employees,
suppliers, and communities, as they guide
and strengthen our approach to efficiently
address climate-related challenges.
We are optimistic about our targets as
we continue to find creative solutions for
protecting the environment while creating
long-term value for our stakeholders.
Through this letter I would also like to
take an opportunity to thank you for your
unwavering belief and support for our
journey towards sustainable future.
Sincerely,
Surya Valluri
Chief Sustainability Officer
4 TCFD Report 2022-23Grasim Industries Limited
Grasim Industries Limited, a flagship Company of the Aditya Birla
Group, is one of India’s leading producers of Viscose Staple Fibre,
Diversified Chemicals, Linen Yarn and Fabrics. With a rich history of
more than 75 years, we began as a textiles manufacturer. Over time,
we have evolved into a formidable diversified player, boasting a
robust presence in various sectors.
Grasim Industries operates within three primary business verticals:
Viscose, Chemicals and Textiles. The Company is one of the global
leading players in production of Viscose Staple Fibre. The production
capacity of 824,000 TPA is spread across four facilities in India.
Additionally, we have one dedicated facility for pulp production.
The Company is the largest Caustic Soda producer and Speciality
Chemicals (epoxy resins and curing agents) producer in India with
a capacity of 1,311,000 TPA spread across 9 locations and 123,000
TPA at Vilayat respectively. The Company is also one of the leading
producers of Linen Yarn and Fabric, Woollen Yarn and Premium
Cotton Fabrics in India. The textile production is spread across
three locations.
In 2021, the Company announced foray into paints business with a
capital allocation of H10,000 crore, establishing six plants at different
locations across India. The capacity is the second largest production
of decorative paints in India. Additionally, to leverage large B2B
ecosystem within the Group, the Company allocated H2,000 crore
to establish B2B E-commerce platform for building materials. The
Company's key subsidiaries also include UltraTech Cement Limited
(UTCL) - India’s largest manufacturer of grey cement and ready-mix
concrete, Aditya Birla Capital Limited (ABCL)- one of the leading
diversified financial services player and Aditya Birla Renewables
Limited (ABReL) - clean energy solutions provider.
About the Company
5 TCFD Report 2022-23Grasim Industries Limited
Grasim’s Sustainability Journey:
Key Milestones Achieved
2019
2020
2021
2022
2023
• Published the first Sustainability Report
• Disclosed GHG Scope 1 and 2 emissions for VSF and Chemicals business
• Participated in DJSI, achieving a score of 54, higher than the industry average score of 45
• Chemicals business sets a target to reduce GHG emissions of the main product (Scope 1 & 2) by
30% by 2030 (over the base year of FY2016-17)
• Published the first Integrated Report detailing business-wise GHG Scope 1 and 2 emissions
• VSF business ranked #1 globally with “Dark Green Shirt” in Canopy’s Hot Button Report 2020
• DJSI score improved to 68
• Participated in CDP Climate Change disclosure, achieving a score in line with the global average
• Released energy and carbon policy
• Total renewable power capacity at 23.2 MW
• Birla Cellulose’s Grasim Cellulosic Vilayat site achieves EU BAT compliance
• Achieves MSCI Rating BB
• Aditya Birla Group announces its aim to become Net Zero by 2050
• The VSF business announces its goal to become Net Zero by 2040
• Became a TCFD Supporter
• Performed a Climate Risk Assessment (Physical and Transition)
• Disclosed GHG Scope 3 Emissions for 8 categories
• DJSI score improved to 69. CDP score “In-line” with the global average
• Total renewable power capacity at 30.2 MW
• MSCI rating improved to BBB
• Included in FTSE4Good Index
• Publishing maiden TCFD Report
• Total renewable power capacity at 44.2 MW
6 TCFD Report 2022-23Grasim Industries Limited
CRUCIAL COMPONENTS OF HOW BUSINESSES OPERATE
Governance
Strategy
Risk Management
Metrics &
Targets
Overview
Climate change-induced extreme
weather events pose unprecedented
risks, including substantial financial
risks to businesses. Identification and
mitigation of climate-related risks is
critical for ensuring business continuity
and long-term value creation. Towards
this end, stakeholders, including
shareholders, are expecting organisations
to disclose clear, comprehensive,
and high-quality data on the impacts
of climate change on business. This
encompasses the risks and opportunities
posed by rising temperatures,
climate-related policies, and emerging
technologies. The recommendations of
the TCFD are guiding businesses globally
to disclose and address the risks and
leverage opportunities posed by climate
change. The key goal of the task force
was to make recommendations for
consistent Company disclosures that
will help stakeholders understand the
financial impacts of climate-related risks
and opportunities.
The suggestions of the TCFD are
structured around four widely-adoptable
recommendations that reflect crucial
components of how businesses operate:
Governance, Strategy, Risk Management,
and Metrics & Targets. These areas are
intended to support and enhance one
another. Further, the task force developed
11 recommended disclosures around
four recommendations.
This report provides information on each
of these four pillars as relevant to our
operations and how the incorporation of
TCFD recommendations into our overall
business strategy and risk management is
making Grasim more resilient.
7 TCFD Report 2022-23Grasim Industries Limited
Governance
a) Board’s oversight of climate-related risks and
opportunities
b) Management’s role in assessing and managing
climate-related risks and opportunities
8 TCFD Report 2022-23Grasim Industries Limited
Grasim’s governance framework represents the goals of all its business entities.
The Board of Directors provides strategic direction and oversight on climate-related
issues. A robust governance led by an experienced and empowered Board is critical
to identifying and managing environment-related risks and opportunities to create
long-term value for all our stakeholders. Our governance mechanism facilitates
seamless coordination among the Board of Directors, Management, Business Heads
and Unit-level Committees to manage climate-related issues effectively.
Board of Directors
Sustainability-related Inputs
ORGANISATIONAL CLIMATE GOVERNANCE STRUCTURE
Sustainability-related Inputs
Audit
Committee
Stakeholders
Relationship
Committee
Nomination and
Remuneration
Committee
Corporate
Social
Responsibility
Committee
Finance
Committee
PIT Regulation
Committee
Group Sustainability Cell (ABG)
Risk
Management
and
Sustainability
Committee
Chemicals TextilesViscose
Chief Sustainability Officer
Business Heads
Unit level Safety and Sustainability Committees
9 TCFD Report 2022-23Grasim Industries Limited
BOARD OVERSIGHT
We uphold a strong commitment to good
governance processes. The Company’s
Board of Directors, represented by its
Risk Management and Sustainability
Committee, provides essential guidance
and direction to the management
concerning the Company’s sustainability
and climate change-related risks. They
actively collaborate on action plans to
effectively mitigate these risks.
The Chief Sustainability Officer (CSO)
collaborates closely with both the
Risk Management and Sustainability
Committee and various business units
within the Company. Together, the CSO
and the Sustainability teams in the
business units conduct regular reviews
of the progress made on all sustainability
initiatives and ensure the implementation
of necessary actions.
Key issues overseen by Board
through Risk Management and
Sustainability Committee:
• Guiding and directing the management
to effectively implement strategies
and plans for sustainable
business operations.
• Monitoring and reviewing the progress
made towards achieving targets related
to climate-related issues.
• Reviewing and guiding risk
management policies to ensure
comprehensive risk mitigation
throughout the organisation.
10 TCFD Report 2022-23Grasim Industries Limited
OUR POLICIES
Grasim has adopted relevant sustainability and climate-change policies
which act as a guiding light for all our sustainability actions. The key policies
are listed below.
Environment Policy
The policy highlights Grasim’s commitment to manage environmental
impact effectively and integrate sound business practices to minimise
negative impact. Link to the Environment Policy.
Energy & Carbon Policy
The policy covers Grasim’s aspirations to reduce energy consumption and
carbon emissions and develop strategies to enhance these parameters. The
policy also highlights our commitment to take appropriate actions within our
operations and supply chain. Link to the Energy & Carbon Policy.
Water Stewardship Policy
The policy underlines the importance of water as a key resource for
continuing our business operations. It outlines the steps we undertake
toward water conservation and responsible water management. Link to the
Water Stewardship Policy.
Biodiversity Policy
The policy establishes Grasim’s commitment to biodiversity preservation by
adhering to all laws and actively working towards conservation goals. This
includes setting goals to protect species, habitats, and ecologically sensitive
areas. Link to the Biodiversity Policy.
Risk Management Policy
The policy establishes a common risk management framework across
the Company. Further, it defines procedures to analyse risks within agreed
parameters. Link to the Risk Management Policy.
MANAGEMENT OVERSIGHT
The sustainability SPOCs of each
business unit meets quarterly to oversee
enterprise risks, mitigation measures,
and the sustainability performance
of each business, including climate-
related challenges.
At each unit/plant, Safety and
Sustainability committee has been
constituted, led by the Unit Head and
comprised of members from critical
functions. The Committee assumes the
responsibility of identifying problem
areas and implementing performance-
enhancing measures. It convenes monthly
to review progress and subsequently
reports its findings to the Business level
Safety and Sustainability Committee.
At Grasim, our approach centres around
incentivising to align the interests of our
leaders with the long-term viability and
health of our businesses. We provide
incentives for initiatives that focus on
climate protection, such as reducing
emissions, enhancing energy efficiency,
and broadening the range of sustainable
products. To drive renewable energy
projects and activities, a dedicated
committee is in place. Moreover, the
committee assigns objectives that are
directly tied to the key result areas (KRAs)
of the business unit managers.
11 TCFD Report 2022-23Grasim Industries Limited
Strategy
a) Climate-related risks and opportunities the organisation has identified over
the short, medium, and long term
b) Impact of climate-related risks and opportunities on the organisation’s
businesses, strategy, and financial planning
c) Resilience of the organisation’s strategy, taking into consideration different
climate-related scenarios, including a 2°C or lower scenario
12 TCFD Report 2022-23Grasim Industries Limited
OUR CLIMATE-RELATED RISKS
AND OPPORTUNITIES
Recognising the paramount importance
of monitoring and mitigating climate
impact and in line with the goals of the
Paris Agreement, Grasim has committed
to undertake measures to help limit
global temperature rise to well below 2°C.
We also have an even more ambitious
target of helping keep global temperature
rise below 1.5°C to mitigate the most
severe impacts of climate change. In line
with the TCFD recommendations, we
conducted a comprehensive climate risk
assessment, including a scenario analysis,
in FY2021-22.
The risk assessment covered both physical
climate risks and transition-related risks.
It helped us understand and assess the
potential impacts of climate change on
our business operations and strategy
by adopting a top-to-bottom and
bottom-up scenario analysis to ensure
comprehensive coverage. Each business
unit within the Company took a proactive
stance by carefully assessing how
climate-related risks might affect their
respective strategies and future business
projections. We reviewed our strategy for
different opportunities to capitalise on
them effectively. We aim to incorporate
climate-related risks and opportunities
into our business strategies in a resource-
efficient manner.
2.1 We analysed the universe of transition risks with
customised risk rating (risk rating = impact X
frequency X exposure of Indian sites), timeline of
impact and SSP scenario applicability.
We also analysed opportunities with timeline of
impact and SSP scenario applicability.
2.2 Further, we projected emission reduction pathways
as per rigid scenarios to assess impact of expected
emission trading scheme in India.
We also conducted physical risk assessment for our
facility locations to assess the impact of changing
climate on temperature, precipitation, and sea level at
the sites.
Risk and Opportunity Analysis
2
Identification of Risks and Opportunities
1.1 We studied and analysed peer risks and opportunities,
sectoral trends and international policy and
regulations including,
1.2 We developed an universe of risks and
opportunities for all our businesses.
Transition Risks
• Regulatory
• Market
• Technology
• Reputational
1
Physical Risks
• Chronic
• Acute
Opportunities
• Resource Efficiency
• Energy Source
• Products
• Market
• Resilience
The methodology of our analysis is detailed below:
Lastly, as per the assessment outcomes, we over viewed our resilience strategies for each risk and growth strategy for
each opportunity. We performed this exercise by listing our initiatives for different businesses and identifying key areas
of improvement.
This assessment improved the understanding of our action plan and climate strategy at Grasim for different scenarios and
time frames.
Assessing Climate Strategy of the Company
3
13 TCFD Report 2022-23Grasim Industries Limited
TRANSITION RISKS
As global efforts focus on adopting
sustainable practices and combating the
effects of climate change, businesses
are likely to face various challenges and
uncertainties during this transition. These
changes have the potential to impact
a Company’s financial performance,
market position, and overall sustainability.
The journey towards a lower-carbon
economy involves navigating through
policy adjustments, legal frameworks,
technological advancements, and shifts
in market dynamics. These changes
bring about both risks and opportunities
for organisations.
Policy and Legal Risk
Policy measures aimed at limiting
activities that contribute to the negative
impacts of climate change and those
focused on facilitating climate change
adaptation. These may lead to heightened
legal risks as these measures transform
into legislation.
Market Risk
These risks may result in shifts in
the supply and demand of particular
commodities, goods, and services
driven by growing climate change-
related concerns.
Reputation Risk
These are risks arising from changing
consumer attitudes towards companies
based on their actions that contribute
to mitigating or negatively impacting
climate change.
Technology Risk
Advances in technology solutions
and innovations that accelerate the
transition to energy-efficient and lower-
carbon economies will create new risks
for organisations.
TRANSITION RISK SCENARIO
ANALYSIS
We conducted a comprehensive transition
risk scenario analysis to understand how
these changes may impact our business
operations. This analysis was based on
the International Energy Agency (IEA) Net
Zero Emissions (NZE) Scenario and the
Shared Socioeconomic Pathway (SSP) 1-1.9
scenario that is designed to limit global
temperature increase to 1.5 degrees,
and the SSP 1-2.6 scenario, aligned
with keeping the increase well below
2 degrees.
To understand the implications, we first
projected business-as-usual emissions
for our Viscose, Chemicals and Textiles
business, considering our existing climate
commitments and emission reduction
plans. Next, we developed specific
emission reduction pathways for each
scenario by comparing the business-
as-usual emissions with the expected
implications under different emission
reduction scenarios. As a result of this
study, we have identified new measures
for our existing transition risk resilience.
For Grasim, decarbonisation is a critical
resiliency measure to mitigate transition
risks. By reducing carbon footprint and
aligning operations with the goals of a
low-carbon economy, our businesses can
enhance their competitiveness, adapt
to evolving regulatory landscapes, and
better position themselves for long-term
sustainable growth.
Grasim is in the process of developing a
decarbonisation roadmap in line with the
SBTi recommendations. However, the
businesses of Grasim are actively setting
targets towards reducing their carbon
footprint, such as the Chemicals business
has targeted to reduce GHG emission
Scope 1 and Scope 2 of the main product
by 30% by 2030 (over the base year of
FY2016-17).
In the Chlor-Alkali business, we plan
to increase the share of renewable
power up to 25% by FY2024-25. In the
Textiles business, we are progressing
on our journey to reduce emissions and
estimated carbon liability. The Textiles
business contributes very minimal
amounts to the total GHG emissions of
Grasim; however, we aim to increase the
share of renewable power in this business
to 70% by FY2029-30. All our businesses
are undertaking actions in line with the
Aditya Birla Group’s commitment to reach
Net Zero Emissions by 2050.
For more details, please refer to the
section “Embracing Sustainability: A
Journey Towards Decarbonisation” in
this report.
14 TCFD Report 2022-23Grasim Industries Limited
Scenario
IEA NZE Scenario for Global
Industrial Sector
SSP 1-1.9 Scenario for Global
Industrial Sector
SSP 1-2.6 Scenario for Global
Industrial Sector
Net- Zero
Emissions Target
Year
2050 2050 Near 2075
Scenario
Description
In this scenario, electricity linked
emissions from electricity are
projected to fall fastest. By 2030,
the fall in industry and transport
related emissions is projected to
accelerate.
Bioenergy with Carbon Capture
and Storage (BECCS) and Direct
Air Carbon Capture and Storage
(DACCS) technologies are estimated
to remove around 1.9 Gt CO
2
by
2050.
This represents the IPCC’s most
optimistic scenario, depicting a
world where global CO
2
emissions
reach Net Zero by approximately
2050. In this scenario, societies are
envisaged to transition towards
more sustainable practices,
prioritising overall well-being over
mere economic growth.
Investments in education and
health are expected to increase and
societal and economic inequality is
expected to fall. Extreme weather
events are expected to become
more prevalent. However, it is
expected that the world would
have averted the most severe
consequences of climate change.
In the next-best scenario as per
IPCC, global CO
2
emissions come
down exponentially but fast
enough, reaching Net Zero after
2050. Nevertheless, temperatures
are projected to stabilise around
1.8°C higher by the end of the
century.
Temperature
Increase °C
1.5°C 1.5°C Below 2°C
Data Source
IEA NZE Report SSP Public Database (Version 2.0) SSP Public Database (Version 2.0)
TRANSITION RISKS
Regulatory Risk
Risk Risk Description Resilience Measures
Enhanced
emissions-reporting
obligations
The regulatory environment in India
concerning climate change and
sustainability is rapidly evolving. Presently,
listed companies are required to disclose
their environmental, social, and governance
(ESG) data in accordance with the Business
Responsibility and Sustainability Report
(BRSR) framework mandated by SEBI
(Securities and Exchange Board of India).
Moreover, SEBI is now making it mandatory
for this ESG reporting framework to
undergo assurance.
At Grasim, current regulations are always prioritised and
adhered to avoid any non-compliance.
We are actively exploring opportunities for increasing the
integration of renewable and alternative energy sources
like solar and wind energy and natural gas, among others.
Embracing these sustainable options will significantly decrease
our reliance on fossil fuels and minimise our exposure to
regulations like coal cess in India. In our Chemicals business,
we have already set a target to procure 25% of our power
requirements from solar and wind sources by FY2024-25.
15 TCFD Report 2022-23Grasim Industries Limited
Risk Risk Description Resilience Measures
Additionally, two Indian regulatory
mandates, i.e., coal cess (GST
Compensation Cess of H400 per tonne)
as a green tax and PAT (Performance,
achieve, trade mechanism on energy
intensity), can impact our businesses. Till
the country develops feasible sources of
renewable energy, continued usage of coal
and increasing taxes on the same can have
financial implications on our businesses.
We are continuously investing in reducing our product
carbon footprint by replacing old technologies with new,
energy-efficient models to build a more sustainable product
portfolio. For example, our Kolhapur facility in the Textiles
business already has a biomass briquette-based boiler, which
has significantly reduced the coal cess risk in the facility.
These initiatives will lead to decreased coal consumption and
increased energy efficiency.
Exposure to
litigation
Climate change is directly impacting water
availability, leading to more irregular
rainfall patterns. We have observed that
our drought-prone locations are expected
to experience a decline in summer rainfall
in the future. Due to this reduced water
availability in rivers and the anticipation
of stricter pollution regulations, there is
a possibility that the statutory body may
enforce Zero Liquid Discharge (ZLD) norms
on our sites.
We understand the importance of reusing water to meet our
needs. As of now, all 4 land-locked sites operate on ZLD in the
Chlor-Alkali business. Another 3 sites, (1 in Insulators Business,
1 in VSF Business and 1 in Textiles Business have already joined
the ZLD club). Further, textiles business is in the process of
commissioning ZLD at one more location.
Enhanced
emissions-reporting
obligations
EU ETS scheme is a mandatory cap and
trade mechanism for carbon emissions in
European Union. The carbon prices have
quadrupled in European countries over the
last 2-3 years.
From the comprehensive scenario analysis,
we understand that ETS in India might have
a financial impact on our business-as-usual
scenario, and the lack of a decarbonisation
plan may have a financial impact on
the Company.
In our Chemicals business, we have set a goal of reducing
emissions by 30% over main product from the 2017 baseline by
the year 2030. Additionally, for our viscose business, we have a
target to achieve net zero emissions by the year 2040. We are
actively assessing various decarbonisation strategies for both
the chemical and textile sectors in alignment with the Aditya
Birla Group’s broader commitment to achieving Net-Zero
Emissions by 2050.
Mandates on and
regulation of
existing products
and services
The EU CBAM (The European Union (EU)
Carbon Border Adjustment Mechanism)
can be a potential risk for the exports of
the Company as the CBAM regulation
would levy prices on the carbon content
of imported products in the near future,
which may have minimum or no impact on
the businesses
Grasim aspires to become a Net Zero organisation in alignment
with the Aditya Birla Group’s broader commitment to achieving
Net-Zero Emissions by 2050. This will help in limiting the value
chain emissions.
16 TCFD Report 2022-23Grasim Industries Limited
Market Risk
Risk Risk Description Resilience Measures
Increased cost of raw
materials
Climate-related changes can impact
the supply and costs of raw materials
such as coal, wood and charcoal. During
heavy monsoons, coal shortage has been
observed in India and going forward, we
forsee stricter rules for forestry products
resulting in increased costs of raw materials
as well as manufacturing costs.
Grasim is continually exploring the use of alternative and
more sustainable raw materials & fuels. Our Viscose business
procures wood pulp through sustainable forest management,
where 2-3 trees are planted for every tree used. This maintains
the sustainable raw material price and availability of the
business. Also, the Company has developed LIVA REVIVA,
a circular fiber made from recycled fabrics. This fiber uses
30% of consumer waste in place of wood pulp as alternative
raw material.
Changing customer
behaviour
It is expected that there will be a shift
in the way consumers make purchasing
decisions against the growing challenges of
climate, leading to a shift in preferences for
responsible products with a lower life cycle
carbon footprint. Additionally, businesses
may also face pressure from stakeholders,
including consumers, investors, and
regulators, to reduce the carbon footprint
of the products. This could lead to a shift in
the market demand towards products with
a lower environmental impact, including a
lower life cycle carbon footprint product.
We are conscious of changing customer demands and
increasing activism towards sustainable products. All our
businesses are making excellent moves towards the same.
The business is also increasing its focus on green chemistry
by improving their recyclability for thermoset composite, and
optimising technology to reduce the energy requirements
of products and processes. Our Viscose business has four
sustainable products, i.e., dope-dyed, LIVA eco, LIVA eco
modal and LIVA Reviva and thus is leading in the sector as
well. Our textiles business has also developed a sustainable
product offering, i.e., Cavallo, which is made from linen waste
and cotton.
More about our sustainable products can be found in the ‘Our
climate-related opportunities’ section.
Reputaonal Risk
Risk Risk Description Resilience Measures
Increased
stakeholder
concern or negative
stakeholder
feedback
Many stakeholders, including investors,
customers, and employees, are increasingly
concerned about the organisation’s
environmental impact and its efforts to
address climate change. Failing to achieve
our climate commitments and meet
stakeholder requirements may lead to
negative feedback or concerns from them.
We actively engage with the communities through regular
programs, implement grievance management procedures,
sustain transparency by publicly stating our policies and
performance, as well as establish various corporate social
responsibility initiatives. These efforts aim to strengthen our
ties with our stakeholders and foster long-term partnerships.
In addition, we invest in implementing technologies that
reduce emissions of harmful gases and energy consumption,
discharge of harmful chemicals with effluents and reduce
consumption of natural resources to limit and mitigate
the environmental and societal impact of our operations.
Grasim has invested nearly H610 Cr to comply with stringent
norms of European Standards, i.e., EU-BAT (Best Available
Technologies). This has enabled us to go beyond statutory,
regulatory and industry norms as well as mitigate reputational
risk for our businesses. One of the largest VSF manufacturing
sites of Grasim complies with EU BAT norms, and another site
is in the process of commissioning a project to comply with
EU BAT.
17 TCFD Report 2022-23Grasim Industries Limited
Technology Risk
Risk Risk Description Resilience Measures
Substitution of
existing products
and services with
lower emissions
options
The growing focus on addressing climate
change, shifting towards sustainable energy
options, and promoting eco-friendly
products necessitates technological
advancements. However, resistance to
adopting these new technologies may
result in potential business losses.
We are actively investing a significant amount in research and
development (R&D) to explore alternative technologies that
align with these objectives.
Birla Cellulose has achieved a breakthrough in manufacturing
viscose fibre ‘Liva Reviva’ using pre-consumer cotton
waste and following the principles of a circular economy.
This development helped us stabilise the production of
the Recycled Claim Standard (RCS) certified product, which
contains up to 30% pre-consumer waste and the rest wood
pulp from sustainable forests. It has a complete traceability
system on the GreenTrack™ platform, which provides
traceability of the entire value chain based on blockchain-
based technology and a unique embedded molecular tracer.
Our major initiatives towards decarbonisation
Decreasing GHG Emissions
01
02
03
Energy Efficiency Measures
Renewable Energy
Greener
Products
Process optimisation, efficient machinery, lighting
Harnessing solar and wind energy
Facilitating decarbonisation through more sustainable products
EMBRACING SUSTAINABILITY:
A JOURNEY TOWARDS
DECARBONISATION
Our businesses are actively advancing their
decarbonisation journeys, exemplifying a
strong commitment to sustainability. We
integrate environmental considerations
into our decisions, ensuring that carbon
emission reduction remains a focal point
across all our operations. Additionally, we
are dedicated to developing sustainable
products that facilitate decarbonisation
throughout their entire lifecycle.
Our ambitious emission reduction
targets for each business reflect our
unwavering dedication to environmental
stewardship. To achieve these goals, we
are concentrating on three key areas:
first, enhancing energy efficiency to
optimise resource usage and minimise
emissions; second, embracing renewable
energy sources to power our operations
and reduce our carbon footprint; and
third, driving innovation to create greener
and more sustainable product ranges
that align with our commitment to a
circular economy.
By pursuing these strategies in unison,
we aim to not only mitigate our
environmental impact but also pave the
way for a more sustainable future. Our
efforts in decarbonisation and sustainable
product development underscore our
responsibility as a forward-thinking,
environmentally conscious organisation.
Through these collective actions, we are
actively contributing to a greener, more
resilient world for generations to come.
18 TCFD Report 2022-23Grasim Industries Limited
A brief on our major initiatives is
given below:
1. Energy Efficiency
This presents a unique opportunity for
us to simultaneously reduce operational
costs and carbon emissions over the
long term. Our approach to achieving
energy efficiency centers around process
optimisation and the strategic replacement
of outdated and inefficient machinery,
lights, and fans with the latest, highly
efficient designs at all our locations. More
information on our energy efficiency
initiatives can be found in the ‘Metrics and
Targets’ section of this report.
2. Process Improvement
We are converting organic waste to energy
using biogas reactors. This helps us reduce
the consumption of fossil fuels such as
furnace oil.
In addition, we are investing in installing
more efficient technologies. An investment
of over H3.5 Crore was made for emission
reduction initiatives for our business.
This included introducing large-scale
emission reduction technologies like a
Steam Accumulator for the first time in the
history of the Asian textile industry. This
technology optimizes boiler operations and
lowers steam consumption on the shop
floor, thereby reducing GHG emissions..
3. Renewable Energy
In FY2022-23, we used 5.6% renewable
energy across our businesses that
includes biomass fuel (steam and
power generation) and solar and wind
(electricity generation). For the steam
and heat generation, we utilise non-fossil
fuel sources such as biomass fully and
partially for the Textiles and Viscose
business, respectively. In addition, we have
achieved a renewable power share of 8%
and ~7% for the Chemicals and Textiles
business, respectively.
4. Sustainable Product Development
We have invested about 18% of our total
R&D expenditure in developing low-carbon
products, lifecycle analysis and use of
recycled waste. From sourcing to the use
phase, we ensure sustainability throughout
the lifecycle of our products. We have
a stringent ‘Wood Sourcing Policy’ for
sustainable wood sourcing. The not-for-
profit Canopy’s annual Hot Button Report
has recognised our Viscose Business by
placing it in the ‘Dark Green Shirt’ category.
This is a result of our efforts to conserve
ancient and endangered forests and
robust initiatives to scale circular business
models in the fashion industry. One of
our latest innovations, ‘tree-free’ Lyocell
fibre derived from bacterial cellulose
grown from industrial waste, was awarded
‘Cellulose Fibre Innovation of the Year’
during Cellulose Fibres Conference
2023 held in Germany. The chemicals
business has introduced the TWIST range
of phthalate-free specialty blends as an
alternative to primary plasticisers added
with PVC to make it softer and more
flexible. The textiles business has also
developed a sustainable product offering,
i.e., Cavallo, made from linen waste and
cotton. More information on each of these
products can be found in this report’s ‘Our
Sustainable Products’ section.
5. Carbon Sequestration
We also target to plant 200,000 trees
across multiple locations in the vicinity
of our manufacturing sites to sequester
carbon dioxide.
Going forward, we also aim to explore
emerging low-carbon technologies,
including, but not limited to green
hydrogen, electric vehicles, and
carbon sequestration technologies,
amongst others.
19 TCFD Report 2022-23Grasim Industries Limited
PHYSICAL RISKS
Our physical risk assessment approach
analysed acute risks associated with
extreme weather events and chronic
risks stemming from long-term climate
changes. The primary focus was on
evaluating how these risks could impact
our various business units. To initiate the
process of identifying climate-related
hazards, we conducted a site-specific
baseline physical risk analysis, which
involved a thorough examination of
historical weather patterns and their
effects on our business operations.
By studying past weather occurrences,
we gained valuable insights into the
vulnerabilities and potential risks faced
by each of our locations. We then linked
this historical analysis with scenario-
specific forecasts like SSP 1.9, SSP 2.6 and
SSP 8.5, enabling us to comprehensively
understand risk variability across short,
medium, and long-term time frames.
CARBON DIOXIDE
(GtCO
2
/yr)
2015 2050 2100
SSP1-1.9
SSP1-2.6
SSP2-4.5
SSP3-7.0
SSP5-8.5
140
120
100
80
60
40
20
0
-20
PHYSICAL RISKS SCENARIO ANALYSIS
Our risk management approach includes
anticipating future possibilities to make
well-informed business and financial
decisions. To do the same, it is important
to assess the impacts of climate-
related chronic risks which are emerging
over the years due to rapidly changing
climate. To evaluate chronic risks, we
considered IPCC-Shared Socioeconomic
Pathway scenarios for projections of
temperature, precipitation and number
of very hot days. SSP project expected
global socioeconomic changes till 2100.
They are used to develop the scenarios
for GHG emissions taking various existing
and evolving climate policies into
consideration. SSPs have been used to
produce IPCC’s Sixth Assessment Report
on climate change, published in 2021.
The global carbon emissions per year are
projected to change as visible in different
SSP Scenarios. In SSP 1-1.9, the emissions
are projected to progressively decrease
over the years, reaching net zero around
2050. In SSP 5-8.5, the emissions are
projected to continuously increase till
the 2080s.
Shared Socio - economic
Pathways
Description
Estimated
Warming
(2081-2100)
Representative
Concentration
Pathways
Estimated
Warming
(2081-2100)
SSP 1-1.9
Sustainability
(Taking the Green Road)
IPCC’s most optimistic scenario where global CO
2
emissions become Net Zero around 2050.
1.4 °C -- --
SSP 1-2.6
Middle of the road
The next-best scenario where CO
2
emissions come down
severely but not as fast, reaching Net Zero only after 2050.
1.8 °C RCP 2.6 1.0 °C
SSP 2-4.5
Regional Rivalry (A Rocky
Road)
In this scenario, the global CO
2
emissions stay at current
levels before falling by mid-century but do not reach
Net Zero by 2100.
2.7 °C RCP 4.5 1.8°C
SSP 3-7.0
Inequality (A Road divided)
Emissions and temperatures will rise steadily, and CO
2
emissions roughly double from current levels by 2100.
3.6 °C RCP 6 2.2°C
SSP 5-8.5
Fossil-fuelled Development
(Taking the Highway)
This is a future to avoid at all costs. It envisages current
CO
2
emission levels to roughly double by 2050 due to
global economic growth primarily fuelled by exploiting
fossil fuels.
4.4 °C RCP 8.5 3.7°C
20 TCFD Report 2022-23Grasim Industries Limited
We studied the monthly variation of
the indicators for all our sites by making
separate Climate Risk Profiles for
each under the above SSP scenarios.
Resilience measures are being designed
and deployed to ensure minimal impact
of extreme weather events on our
businesses, customised to each profile.
Further, we also studied the impacts on
natural water reserves through which we
currently withdraw water for our sites.
This exercise was done with Aqueduct
Water Risk Atlas, where we studied the
plausible impacts on water stress, water
supply, water demand and seasonal
water availability for all our sites in 2030s
and 2040s in SSP2 RCP4.5 and SSP3
RCP8.5 scenarios.
PHYSICAL RISKS RESILIENCE
A brief on climate-related physical risks for our Company is given below:
Risk
No. of
Sites with
High Risk
Impact of Risk Resilience Measure
Heatwave
12 Revenues fall and costs rise
due to negative impacts
of climate change on the
workforce (e.g., health,
safety, absenteeism)
During heatwaves, we are taking various measures to provide refreshments
whenever required to the employees during extremely high temperatures.
Healthcare facilities are present for employee wellbeing.
Drought
7 Increased operating costs
(e.g., inadequate water
supply for hydroelectric
plants or to cool fossil
fuel plants)
• Adopting the 3R philosophy of reducing, reusing, and recycling water at our
plants helps us conserve and ensure a seamless water supply.
• Sufficient rainwater harvesting plants help us source continual water
availability throughout the year for our operations.
• At select locations, we are exploring alternate water sources to reduce the
dependency on a single source of water supply.
• We are also conducting studies on the economic and technological
feasibility of desalination plants in our facilities near the sea.
• Preventive actions are taken to reduce water consumption in the plant
and eliminate water wastage. We recycle water at ETP and RO plants to
further reuse them, ensuring that our facilities have Zero Liquid Discharge.
Minimum Liquid Discharge mechanisms in place as applicable Damaged
pipelines and leakages are identified and repaired or replaced timely.
Cyclone
9 Reduced revenue from
decreased production
capacity (e.g., transport
difficulties, supply chain
interruptions)
Increased capital costs
(e.g., damage to facilities)
Insurance premiums
increase. There is also the
risk of challenges in securing
insurance for assets in
“high-risk” locations
• Cyclone disaster management guidelines have been developed and
circulated throughout the plants.
• Roads and drains are maintained as a part of preparedness to address the
challenges of monsoons and cyclones.
• Adequate insurance coverage has been taken at select locations.
• Flood walls and barriers and storm water drains are constructed whenever
required. We have ensured a resilient supply chain during monsoons by
diversifying suppliers, increasing spare capacity during monsoon season
and protecting stored raw materials from rains.
Flood
(Coastal/
River)
Riverine
Flood-2
Coastal
Flood-4
21 TCFD Report 2022-23Grasim Industries Limited
CLIMATE-RELATED OPPORTUNITIES
At Grasim, we believe in decarbonising our operations and contributing to India’s net-zero goals by developing more sustainable
products. We have outlined our endeavors to tap relevant climate-related opportunities below:
Response to Opportunity
Resource
efficiency
Deploying higher efficiency
production and distribution
processes
Water Efficiency:
The growing challenges of water scarcity have always been a concern for Grasim. We are reducing
freshwater consumption by increasing the usage of recycled water in our processes, thereby
decreasing effluent discharge. We have achieved a reduction of water withdrawal intensity by 15%
in the reporting year as compared to the previous year.
Energy Efficiency:
Adopting high-efficiency equipment, improving process heat utilisation and digitalisation are
helping us facilitate data-driven decision-making to optimise energy consumption, reducing
emissions and costs. We recogniseand honor our employees for their efforts to reduce energy
consumption. In FY2022-23, our energy consumption intensity decreased by 17% year-on-year.
Material Efficiency:
We are developing products made with pre and post-consumer waste through increased use of
alternate feedstock. This effort leads to a substantial decrease in the life cycle emissions of the
products and conserves already scarce material.
(Refer section “Sustainable Product” for more details)
Energy Sources
Utilising greener energy
sources with lower emissions
• Our Chemicals business is increasing the share of renewable power in their operational location
- to 25% by 2025.
• As a part of our Net zero commitment, renewable energy use is one of the pillars of
decarbonisation to help us reduce operational GHG emissions and cost.
Market
Broadening access to new
markets
Heightened awareness about climate change has the potential to influence customer
preferences, leading them to buy products or services with low climate impact from companies
they trust and perceive as leaders in this domain.
Products and
Services
Developing and expanding
portfolio of sustainable
products with lower
carbon footprint
Our R&D endeavors propel the development of more sustainable products. We are developing
circular products that recycle pre and post-consumer cotton waste into fresh cellulosic fibres.
This reduces reliance on virgin wood-based pulp in the long term.
Grasim has partnered with Nanollose, a research and development company, to develop fibres
using industrial and agricultural organic waste as feedstock.
Resilience
Strengthening resilience
against changing regulatory
and market conditions
By taking action on climate mitigation initiatives, such as increasing the renewable energy mix,
adopting energy-efficient technologies, and developing sustainable products, we are bolstering
our regulatory compliance with EU BAT, CBAM, and PAT, ensuring a smoother transition and
enhancing our resilience.
22 TCFD Report 2022-23Grasim Industries Limited
We actively encourage employees to participate in enhancing the energy and water efficiency of plant operations and recognise
and reward their efforts to promote environmentally friendly practices. To date, 45 employees from different business units have
been honoured with the esteemed Pride Award, amounting to H19.35 lacs. Our people have played a vital role in accomplishing
various goals, including reducing energy consumption, transforming waste into valuable resources, and developing environmentally
friendly products.
23 TCFD Report 2022-23Grasim Industries Limited
OUR SUSTAINABLE PRODUCTS
There has been an increase in demand
for sustainable products from our
partners and stakeholders. We believe in
continuous research and development
to innovate the world’s best products
while ensuring no environmental harm.
With our cutting-edge innovation, we
believe we are pioneering in providing our
customers and partners with first-in-class
sustainable products.
Birla Cellulose Pulp and Fibre is the
winner of the Golden Peacock for
Innovation Management Award for
FY2021-22. A dedicated team of scientists
has developed numerous patented
innovations in man-made cellulosic
fibres, showcasing their commitment to
customer-centric and innovative fibre
manufacturing. Our new generation
innovative products like Livaeco, Liva
Reviva, Birla Excel (Lyocell) and Birla
Spunshades are designed with superior
sustainable inputs and processes. These
products result from the concerted
efforts of teams spread across six
advanced research and innovation centres
equipped with state-of-the-art facilities
and pilot plants.
Our approach goes beyond simple waste
recycling to embrace transparency and
traceability throughout the textile value
chain. We invest in research, development,
and the pursuit of innovative solutions,
such as investigating alternative feedstock
options. In line with this approach, we
have developed Liva Reviva, which uses
30% cotton textile waste to replace
dissolving pulp. Our target is to increase
circular products to 100,000 tons per year
by 2024 using pre and post-consumer
and alternate feedstock. Some of our
sustainable products that help leverage
climate-related opportunities for the
Company are listed below:
Tree Free Fibre
Grasim and Nanollose, a leading bio-
materials company, began developing
the first “tree-free” Lyocell fibre derived
from bacterial cellulose grown from
industrial waste in 2020. In January 2021,
from sustainably managed forests and
are made using a closed-loop process,
which has a much lower environmental
impact than other fibres. These fibres are
biodegradable in soil, water and marine
environment and are easily compostable
at the end of life. The range of sustainable
products using MMCF’s cellulose that
have shown a positive impact on the
environment are outlined below.
Birla Viscose
A first generation regenerated cellulosic
fibre made from wood pulp sourced
from sustainably managed forests. Birla
Viscose
TM
is not only biodegradable and
eco-friendly but also one of the most
purified forms of cellulose.
Birla Spunshades
TM
These are colored man-made cellulosic
fibres where pigments are injected into
the viscose dope before the fibre is spun
& cut. Birla Spunshades fibres with unique
Colour-Lock
TM
technology make fabric
fade-resistant and ensure best-in-class
color consistency. The spun dyed fibre
eliminates the process, such as the dyeing
step at the fabric stage, saving large
amounts of water and chemicals and
preventing wastewater generation.
Grasim and Nanollose together filed a
patent application for “High-tenacity
Lyocell fibres” manufactured from
bacterial cellulose based on R&D efforts
by developing Nullarbor
TM
which derives
its name from nulla arbour in Latin, which
means ‘no trees.’
Bacterial cellulose, made from agricultural
waste and by-products, does not damage
old-growth or endangered forests as it
creates pure cellulose. Microbial cellulose
can be utilised in the current Lyocell
fibre spinning facilities. A closed-loop
solvent system makes Lyocell synthesis
ecologically friendly.
Chemistry for a Greener World
Our TWIST series products comprise
of specialty blends that are free from
phthalates. They are a viable substitute for
primary plasticisers typically incorporated
into PVC to enhance its flexibility and
softness. The TWIST range comprises two
grades, TWIST FC 73 and TWIST FM-M0,
and several sub-grades with specific
properties. These grades are utilised to
produce compounds such as wires, cables,
footwear, paver blocks, and plastisol
products like textile auxiliaries and inks.
The chemicals business shifted to
using less toxic Long Chain Chlorinated
Paraffins, post restriction imposed by
REACH (EU) and Stockholm Convention
(UN) on Short Chain Chlorinated
Paraffins as persistent pollutants. Grasim
developed a process for producing LCCPs
to meet customer demand for diverse
applications. LCCP product is compliant
with REACH regulations and exhibits
favorable potential for export. Post above
R&D and plant efforts and attaining the
quality requirements the LCCP product is
being marketed as TWIST CPR and is being
manufactured since FY2022-23.
Manmade Cellulosic Fibres
Growing consumer awareness about the
impact of clothing on the environment,
depletion of resources and climate
change has led to the industry exploring
and adapting more sustainable raw
material options. MMCFs are made from
natural and renewable wood sourced
24 TCFD Report 2022-23Grasim Industries Limited
Next Generation Solutions to
Strengthen a Circular Business
Model
It is estimated that the fashion industry
generates nearly 92 million tons of
waste annually, of which less than 1%
is recycled. Most of it goes to landfill/
incineration, accompanied by significant
environmental leaks leading to land and
water pollution. However, the fashion
industry faces three key challenges to
building a circular business model. These
include the availability of technology
to recycle the fibres, lack of reverse
logistics to segregate recyclable fibres,
and not designing fabrics with an end goal
of recycling.
Investing in textile waste recycling
technology has been a key part of Birla
Cellulose’s commitment to contributing
to a circular economy. Our R&D efforts
have led to several innovations that have
shown promising results and are in the
developmental stage.
Liva Reviva
Birla Cellulose has achieved a
breakthrough in manufacturing viscose
fibre “Liva Reviva” using pre-consumer
cotton waste following the principles
of a circular economy. The unit has
successfully stabilised the production
of the Recycled Claimed Standard (RCS)
certified product, which contains up
to 30% pre-consumer waste and 70%
wood pulp sourced from sustainable
forests. Liva Reviva is supported by
a comprehensive traceability system
integrated into the GreenTrack™ platform.
This advanced system utilises blockchain-
based technology and a distinctive
embedded molecular tracer to offer
full traceability throughout the entire
value chain. Currently, these efforts are
being expanded.
Wealth out of Waste
Jayashree Textiles was generating huge
quantities of flax waste. The disposal of
this waste was a challenge. We decided to
convert this waste into wealth. A partner
was identified to blend the flax waste with
cotton and other fibres to create blended
yarn and linen-rich fabric and ready-
to-wear apparel under the sub-brand
– CAVALLO.
25 TCFD Report 2022-23Grasim Industries Limited
Risk Management
a) Organisation’s processes for identifying and assessing climate-related risks
b) Organisation’s processes for managing climate-related risks
c) Processes for identifying, assessing, and managing climate-related risks are
integrated into the organisation’s overall risk management
26 TCFD Report 2022-23Grasim Industries Limited
A cross-functional central leadership
team at the business level composed
of the CFO, CTO, CIO and CMO meets
every quarter to monitor progress
on risk identification and mitigation
initiatives. This team shares updates
on progress with the RMSC every
six months.
A Unit level Safety and Sustainability
Committee (SSC) has been established,
composed of cross-functional team
members, including the unit head
and respective functional leaders.
The members meet every month to
frame and execute activities to meet
targets and monitor the performance
of climate-related targets. The
unit-level SSC provides quarterly
updates on risk mitigation activities to
sustainability SPOCs.
All businesses face a range of inherent
risks that must be identified and
addressed proactively and on time
to ensure seamless value creation
for stakeholders.
Increasingly businesses, including Grasim,
are facing growing climate change risks
arising from the increasing frequency
and severity of extreme weather
events (“physical risks”). Organisations
also face the risks emanating from
the global transition to a low-carbon
economy (“transition risks”). At Grasim,
we have incorporated both physical and
transition risks into our overall enterprise
risk profile.
RISK GOVERNANCE
The Board of Directors, through its
Risk Management and Sustainability
Committee (RMSC), guides and directs
the management on the Company’s
sustainability and climate-change
related risks and action plans for
mitigating them.
The Chief Sustainability Officer (CSO)
works closely with the Risk Management
and Sustainability Committee and various
business units of the Company. The CSO
and Sustainability teams at the business
units regularly review the progress of all
related initiatives and required actions.
Key issues overseen by the
Board’s Risk Management and
Sustainability Committee:
• Guiding and directing the management
in implementing the strategy and plans
for sustainable business operations
• Monitoring and reviewing the progress
against the targets for addressing
climate – related issues
• Reviewing and guiding the
development and deployment of Risk
Management policies
27 TCFD Report 2022-23Grasim Industries Limited
PROCESSES FOR IDENTIFYING
AND ASSESSING CLIMATE-
RELATED RISKS
We monitor the external environment
and internal operations to proactively
anticipate and mitigate any emerging and
imminent risks. A robust risk management
framework and system, guided by our
Board, helps us navigate effectively
through challenges.
As with other enterprise risks, climate
change risks are integrated into the
Company’s review of strategic and other
investments that guides the management
of climate-related risks and opportunities.
The responsibility for identifying,
assessing, treating and reporting risks
lies with the operational business units.
Grasim conducts a top-down assessment
at the Group level to gauge primary
risks, a bottom-up review takes place,
combining individual market assessments
to form an aggregated view.
Our risk identification process involves
internal and external approaches. The
internal approach includes interviews
with senior management, a review of
technical and financial documents,
historical data analysis, and learning from
past experiences. While the external
approach consists of assessing the
business environment, market trends, and
regulatory and technology developments.
We have integrated technology into our
risk management process, leveraging
tools and applications such as SAP
and Enablon.
We also conduct materiality analysis
periodically to ascertain key topics for
the Company and our stakeholders. As
a conglomerate, each of our businesses
has conducted detailed materiality
assessments focussed on their businesses
and stakeholders.
Initial Risk Level
Residual Risk
Liklihood
Consequence/Impact
1
1
2
3
4
2 3 4
Minor Moderate High Extreme
Adhering to the TCFD framework, we have
conducted a physical risk analysis of our
sites by focusing on historical data on
climate events such as floods, droughts,
and cyclones. We use geographic tools
to profile risks and identify existing
or required mitigation and adaptation
measures. Also, we have identified
business-wise risks and opportunities
related to the transition to a low-carbon
economy. We are developing new
measures to strengthen our resilience in
addition to the existing ones.
Identified risks have been assessed on
their potential impact (EBITDA / cash
flows) on our business, where quantifiable
and the likelihood of occurrence while
considering established risk control
measures. If financial quantification is
not possible, a criterion is developed to
identify the impact rating from minor to
extreme. We maintain a risk register that
provides a comprehensive view of the
Company’s potential risk categories.
Risks identified at the unit levels are
prioritised to determine the top risks
for the business division based on
their ratings. Top risks identified at
the respective business division are
re-prioritised at the Company level in
consultation with the business.
28 TCFD Report 2022-23Grasim Industries Limited
MONITORING AND MANAGING CLIMATE RISK
We use a systematic risk management methodology to continuously monitor and analyse possible risks. This approach involves
Company-wide multidisciplinary risk identification, assessment and management process to achieve strategic and business objectives.
Our risks are categorised into 6 board categories:
Each identified risk is assigned to an owner who proactively manages risks with a comprehensive action plan. For an
effective and efficient Risk Management Framework and associated processes and controls, assurance is carried out at
different levels by:
• Senior management through reports and oversight processes.
• Internal Auditors who review each unit periodically for the risks identified, their effect and the steps taken to
mitigate them.
• The Audit Committee, through the monitoring, oversight and reporting of risks and mitigation efforts.
• Independent external auditors who provide an audit opinion as required by law.
Knowledge Risks:
These are associated with the management and protection of knowledge and information,
including Cyber Security.
Financial Risks:
These are related specifically to the processes, techniques and instruments utilised to manage our
finances and sustain effective financial relationships with customers and third parties.
Operational Risks:
These include the risks concerned with the business processes employed to meet the objectives.
Compliance Risks:
These are associated with non-conformance or inability to comply with the applicable rules
and regulations.
Strategic Risks:
These risks may arise from the actions of other participants in the marketplace and/or the
opportunities selected and decisions made by the business.
External Risks:
These risks arise from incidents impacting external environments in which we operate (e.g., Natural
disasters, Terrorism, etc.).
29 TCFD Report 2022-23Grasim Industries Limited
Metrics and Targets
a) Metrics used by the organisation to assess climate-related risks and
opportunities in line with its strategy and risk management process
b) Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions,
and the related risks
c) Targets used by the organisation to manage climate-related risks and
opportunities and performance against targets
30 TCFD Report 2022-23Grasim Industries Limited
The disclosure of metrics and targets
offers insight into the Company’s progress
toward environmental indicators. These
disclosures are critical for tracking
and transparently reporting progress
on pledges or goals to manage and
mitigate the effects of climate-related
hazards. We methodically detail our
measurements, targets, and progress
toward them. As part of our dedication
to transparency and accountability, we
conduct third-party assurance for our
sustainability parameters, including
Energy, GHG emissions and Water
withdrawal on a yearly basis. This approach
ensures we present accurate and
credible information to all stakeholders,
reinforcing our commitment to openness
and sustainable practices.
ENERGY CONSUMPTION
Our total energy consumption
encompasses both non-renewable and
renewable sources of energy. Presently,
our reliance is mainly on non-renewable
sources, including coal, natural gas, and
grid electricity, among others, while
renewable energy sources comprise
various types of biomass fuels and
solar electricity.
For the reporting period, our total energy
consumption from the domestic business
operation was 63.64 million GJ, out of
which the Viscose business has a share of
52.6%, followed by the chemicals business
with a share of 44.9 %, while textile
business account for 2.4 %.
Despite the overall increase in our total
energy consumption, we are proud to
report that Grasim has successfully
reduced energy intensity by 17%
compared to the previous financial
year. This significant achievement can
be attributed to the various initiatives
we have undertaken to minimise
energy consumption.
OUR TARGETS
Business Target Target Year Progress
Chemicals 25% Renewable
Power Share
2025 8% Renewable Power achieved.
Textiles 70% Renewable
Power
2030 The domestic textiles business has
installed a 6.2MWp rooftop solar
power plant. One of our facilities runs
boiler operations using 100 % non-
fossil fuel.
ENERGY
CONSUMPTION
BUSINESS-WISE ENERGY
CONSUMPTION FY2022-23
FY21 FY22 FY23
Renewable Energy
(million GJ)
2.27 3.3 3.54
Non-Renewable
Energy (million GJ)
70.60 56.62 60.10
Energy Intensity
(GJ/ I Revenue)
5,883.3 2,873.4 2,371.3
Viscose Chemicals Textiles
and
Insulators
Renewable
Energy
(million GJ)
2.47 0.9 0.17
Non-Renew-
able Energy
(million GJ)
31.03 27.68 1.39
72.87
33.50
59.92
28.58
63.64
1.56
31 TCFD Report 2022-23Grasim Industries Limited
OUR INITIATIVES
We have undertaken several energy
efficiency projects at our facilities, such
as replacing conventional lights with
LED lights and upgrading ceiling fans
to energy-efficient BLDC fans. Exhaust
fans fitted with V belt drives have
been converted to energy-efficient
flat belt drives, and reciprocating air
compressors have been replaced
by screw compressors to improve
efficiency. Conventional cooling towers
are being replaced with a mist-type
fill-less cooling tower for the spin bath
and old low-efficiency air compressor
is being replaced with a high-energy-
efficient air compressor.
In addition, implementing renewable
energy sources has been a significant
achievement for our organisation
to reduce the consumption of non-
renewable electricity. Furthermore,
the incorporation of renewable
energy sources has been a significant
achievement for our Company in its
pursuit of reducing the use of non-
renewable electricity. Our Chemicals
business successfully installed 31 MW
of renewable power till FY2022-23.
Furthermore, the textiles businesshas
committed to install 30 lakh units
of renewable power to demonstrate
its commitment to reducing
non-renewable power consumption.
We operate one of our textiles
plants with a boiler powered entirely
by biomass fuel, meeting 15% of
our energy requirements through
renewable means.
32 TCFD Report 2022-23Grasim Industries Limited
GHG EMISSIONS
We calculate and report our GHG
inventory, including Scope 1 (Stationery
and Process emissions), Scope 2
(purchased electricity) and Scope 3
(indirect emissions) following – The
Greenhouse Gas Protocol: A Corporate
Accounting and Reporting Standard
(Revised Edition). These disclosures also
align with the Corporate Value Chain
Accounting and Reporting Standards as
defined by the World Business Council for
Sustainable Development (WBCSD) and
the World Resource Institute (WRI).
Regarding Scope 3 emissions, we have
made substantial progress by identifying
8 out of the total 15 categories for
which we have already calculated
the emissions. As we continue our
efforts, we are committed to disclosing
data for other relevant categories
falling under Scope 3. Our ongoing
commitment to transparency and
sustainability will guide us in expanding
our coverage and understanding of our
environmental impact.
Our commitment to environmental
responsibility drives us to strengthen
our GHG inventory through robust
monitoring and reporting of our fuel,
electricity, and value chain consumption.
By diligently calculating our Scope 1,
Scope 2, and Scope 3 emissions, we aim
to gain comprehensive insights into our
GHG emissions.
SCOPE 3 FY2022-23
Purchase goods and services 52%
Upstream transportation and distribution 19%
Fuel and energy related activities 17%
Downstream transportation and distribution 10%
Other category* 2%
5.26
5.96
GHG EMISSIONS
(Million MTCO
2
E)
FY21 FY22 FY23
Scope 1
4.14 4.57 4.72
Scope 2
1.12 1.39 1.62
Emissions Intensity
(MTCO
2
e/H Revenue)
424.7 285.8 236.3
6.34
For the year FY2022-23, scope 1 emissions
share is around 75% of the total Scope 1
+ Scope 2 emissions, primarily due to the
usage of coal for process steam and
power generation. Business-wise, the
Viscose business accounts for 58% of
Scope 1 emissions, while the Chemicals
business contributes 41%. In Scope 2
emissions, the Chemicals business has
a share of 80%, and the Viscose business
contributes 13%.
As for Scope 3 emissions, purchased
goods and services account for 52% of
the total Scope 3 categories, followed
by upstream transportation, fuel
and energy-related activities, and
downstream transportation.
BUSINESS-WISE ENERGY
CONSUMPTION FY2022-23
(Million MTCO
2
E)
Viscose Chemicals Textiles
and
Insulators
Scope 1
2.74 1.91 0.07
Scope 2
0.21 1.29 0.12
2.95
3.20
0.19
OUR TARGETS
Business Focus Area Target Target Year Progress
Chemicals GHG Emission
(Scope 1 and 2) in
the main product
30% reduction 2030 Initiatives like exploration of energy-efficient technologies
and improving operational efficiencies and the share of
renewable and alternative energy are in progress.
VSF GHG Emission
Intensity
50% reduction 2030
Grasim’s VSF business is in the process of developing a
roadmap to reduce GHG emissions led by specified targets.
Net Zero emissions 2040
*Other Category includes -Capital goods and services, Waste generated in Operations, Business travel
and Employee commuting which contributes to <1% to the total Scope 3 emissions
5.57 Million
MTCO
2
e
33 TCFD Report 2022-23Grasim Industries Limited
We have undertaken several initiatives
to reduce Scope 1 emissions, focusing
on decreasing our steam consumption,
which utilises a significant amount of
energy. To achieve this, we enhanced
the steam-to-fuel ratio of the boiler as
well as increased the number of stages
of evaporators, thereby increasing the
evaporation efficiency and reducing the
steam economy.
We also took measures to understand
the heating requirements for our
processes. This involved undertaking
a pinch analysis to know how waste
hot streams can be utilised for heating
process fluids. The utilisation of waste
heat for pre-heating purposes further
reduced our steam consumption. We
replaced the old economiser with a
higher heat transfer area and efficiency
to extract more heat from gases. Such
interventions have helped reduce our
energy requirements.
In addition, we implemented strategies
such as using scrubber water for pre-
heating and installing heat recovery
systems which include recycling
scrubber water for Desulph bath
heating, optimising dryer inlet conveyor
speed, checking and changing dryer
steam traps, and improving fibre
opening in the dryer, installation of PRS
system at the steam inlet of the Fibre
dye house etc. Such measures have
resulted in significant annual steam
savings of 1.5 tonnes per day.
Various initiatives have been undertaken
to reduce Scope 2 emissions and
improve energy efficiency. These include
installing variable frequency drives
(VFDs) to achieve power reduction,
utilising renewable energy sources,
replacing inefficient equipment with
high-energy-efficient alternatives,
replacement of conventional lights
with LED lights, optimising compressed
air consumption, implementing steam
heating instead of electrical heating,
employing VFDs for energy savings,
upgrading motors to improve efficiency,
and making necessary modifications
to enhance energy efficiency etc. Such
interventions have resulted in total
savings of 25,33,498 kWh power units
for the Chemicals division.
OUR INITIATIVES
34 TCFD Report 2022-23Grasim Industries Limited
WATER
Responsible water consumption and conservation continue to remain our top priority. We have a robust monitoring mechanism for
effectively tracking and reporting water consumption. We primarily depend on groundwater and municipal water to meet our needs.
The deployment of effective water recycling and reuse mechanisms is helping us to reduce our dependency on freshwater withdrawal.
In FY2022-23, we withdrew 54.04 million cubic meters. Recycled water constitutes 46% of our total water consumption in the
reporting year.
BUSINESSWISE TOTAL
WATER WITHDRAWN FY2022-23
(Million cubic meter)
WATER WITHDRAWAL
(Million cubic meter)
WATER RECYCLED
(Million cubic meter)
Viscose 38.96
Chemicals 12.45
Textiles & Insulators 2.63
FY21 FY22 FY23
47.79
10.38
49.33
16.3
54.04
24.14
OUR TARGETS
Focus Area Description Business Target
Target
Year
Baseline
year
FY 23 Status
Water
Management
Reduction in water
intensity
VSF 50% 2025 2015 The VSF business has reduced water consumption
by nearly 55% by the end of FY2022-23.
Reduction in effluent
discharge and maximise
water recovery
Textiles - - 2017 The quantity of treated water has increased
from 4% in FY2016-17 to 57% in FY2022-23.
We are taking concerted steps to
mitigate water consumption in plants
located in water-stressed areas. We
have installed RO systems in our plants
and have devised a plan to implement
Zero Liquid Discharge (ZLD) systems in
our chemicals business plants. Despite
the higher water requirements in our
textiles business operations, two out
of three textiles’ sites: Jayshree Textiles
(ZLD being commissioned) and Vikram
Woollen has ZLD. These installations
aim to minimise the amount of water
OUR INITIATIVES
withdrawn from external sources.
Additionally, we have planned to
enhance the recycling capacity of our
Kolhapur plant from 50% to 75%.
In addition, we are utilising vapor
condensates in place of soft water for
product washing, thereby reducing our
freshwater consumption. Across our
business, 9 sites have achieved Zero
Liquid Discharge, out of which 6 are in
the Chemicals business, 2 in the Textiles
business (1 under commissioning) and 1
in the VSF business.
TOTAL
54.04 million m
3
FY21 FY22 FY23
Water
Withdrawal
47.79 49.33 54.04
Water With-
drawal Intensity
(m
3
/H Revenue)
3858.4 2365.2 2013.4
35 TCFD Report 2022-23Grasim Industries Limited
Way Forward
Our business model has always embraced
the need to evolve and contribute to
the changing needs of our customers,
communities and other stakeholders.
We are conscious of our responsibility
to contribute to global decarbonisation
and enhancing the sustainability of our
offerings and operational processes.
Our commitment to realising the
potential of a low-carbon economy
further deepens with the publication of
the inaugural TCFD report. Identifying
and managing climate-related risks and
optimising our efforts to capitalise on
related opportunities will continue to
be a key strategic focus for Grasim. Our
sustainability efforts are an integral part
of our business strategy, and we strive
to continuously improve and meet the
demands of a rapidly changing world.
Based on our comprehensive analysis
of physical and transition risk scenarios,
we have gained valuable insights into
the challenges and areas that require
immediate attention. Looking ahead,
our goal is to further enhance our
understanding by conducting a thorough
assessment of the financial implications
associated with risks and opportunities.
This will enable us to strengthen our
alignment with the recommendations
set forth by TCFD. Additionally, we
are committed to enhancing our
data management mechanisms and
making more informed assumptions to
gain deeper insights and improve the
accuracy of our projections regarding
climate emissions.
We will continue to invest in cutting-edge
low-carbon technologies and expand the
sourcing and use of renewable energy.
Our decarbonisation goals and efforts
will continue to lead with the purpose of
enhancing the long-term sustainability
and wellbeing of people and the planet.
36 TCFD Report 2022-23Grasim Industries Limited
TCFD Mapping Index
TCFD Pillar Description Disclosure Section Reference Page #
Governance
Disclosure of the
organisation’s
governance of
climate-related risks
and opportunities.
Board’s oversight of climate-related
risks and opportunities.
Governance - Board Oversight 10
Management’s role in assessing and
managing climate-related risks and
opportunities.
Governance - Management Oversight 11
Strategy
Disclosures of
material information
pertaining to actual
and potential
climate risk
related impacts
and opportunities
and how it affects
the organisation’s
businesses, strategy
and financial
planning
The organisation’s short, medium and
long term climate-related risks and
opportunities.
Strategy – Transition Risks, Physical
Risks, Climate-related Opportunities
13, 14, 20,
22
The impact of climate-related
risks and opportunities on the
organisation’s business, strategy and
financial planning.
Strategy – Transition Risks and
Embracing sustainability: A journey
towards decarbonization. Physical
Risks and Physical Risk Resilience,
Climate-related Opportunities and
Our Sustainable Products
15-19, 21-25
Resilience of the organisation’s
strategy, considering various climate-
related scenarios, including a 2°C or
lower scenario.
Strategy - Transition Risk Scenario
Analysis, Embracing sustainability:
A journey towards decarbonization,
Physical Risks Scenario Analysis,
Physical Risk Resilience
14-21
Risk
Management
Disclosures on
the process of
identification,
assessment and
management of
climate-related risks
by the Company.
Processes for identifying and
assessing climate-related risks.
Risk Management - The approach and
process to identify and assess climate-
related risks; Strategy- Our Climate-
related Risks and Opportunities
13, 22, 27,
28
Processes for managing climate-
related risks.
Risk Management – Monitoring and
Managing Climate risk
29
Processes to identify, assess and
manage climate-related risks that
are integrated into the organisation’s
overall risk management.
Risk Management – Monitoring and
Managing Climate risk
29
Metrics &
Targets
Disclosures of the
metrics and targets
that guide the
assessment and
management of
climate-related risks
and opportunities
that can be
considered material
to the Company.
Metrics used by the organisation
to assess climate-related risks and
opportunities in line with its strategy
and risk management process.
Metrics and Targets 31, 33, 35
Scope 1, Scope 2 and, if appropriate,
Scope 3 GHG emissions and the
related risks.
Metrics and Targets – Energy
Consumption and GHG Emissions
31, 33
Organisational targets for managing
climate-related risks, and
opportunities and performance
against targets.
Metrics and Targets 31, 33, 35
37 TCFD Report 2022-23Grasim Industries Limited
Abbreviations
CBAM: Carbon Border Adjustment Mechanism
EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortisation
ESG: Environment, Social and Governance
ETP: Effluent Treatment Plant
EU-BAT: European Union Best Available Technology
EV: Electrical Vehicle
GHG: Greenhouse Gas
IEA: International Energy Agency
IPCC: Intergovernmental Panel on Climate Change (IPCC)
KRA: Key Responsibility Area
MLD: Minimal liquid discharge
MMCF: Man Made Cellulosic Fibre
NZE: Net-Zero Emissions
PAT: Profit After Tax
PVC: Polyvinyl Chloride
R&D: Research & Development
RCP: Representative Concentration Pathways
RCS: Recycled Claimed Standard
RE: Renewable Energy
RMSC: Risk Management and Sustainability Committee
RO: Reverse Osmosis
SOP: Standard Operating Procedure
SPOC: Single Point of Contact
SSP: Shared Socioeconomic Pathway
TCFD: Task force on Climate-related Financial Disclosures
VFDs: Variable Frequency Drives
VFY: Viscose Filament Yarn
VSF: Viscose Staple Fibre
WBCSD: World Business Council for Sustainable Development
WRI: World Resource Institute
ZLD: Zero Liquid Discharge
38 TCFD Report 2022-23Grasim Industries Limited
