ESG Due Diligence for India's Largest Excipient Manufacturer
About the Client
One of the largest manufacturers of Microcrystalline Cellulose worldwide and an industry leader in the field of Pharma Excipients, Nutra and Food Ingredients along with thickeners, binders, lubricants, carriers, food and nutraceuticals, as well as chemical and cosmetic ingredients, the firm is a public listed company incorporated and registered under the provisions of the companies Act of India.
As an industry leader, they are committed to developing a robust and forward-thinking sustainability strategy that encompasses the years 2022-23 and beyond. As a first step of this strategy, they intend to understand their performance in relation to ESG parameters. The purpose of the report was to present the boundaries, methodology, observations, and recommendation for ESG performance assessment based on review and analysis of various ESG KPIs and data sets.
ESG performance assessment of the firm has been conducted based on the established standards of GRI and SASB. The assessment covered varied Environmental, Social and Governance indicators to measure their performance. The assessment was carried through an extensive ESG questionnaire and interviews consisting of more than 40 KPIs.
The process included assessment on multiple Environmental, Social, and Governance issues like environmental systems and processes, energy management, GHG emissions, water & waste management, labour rights, employee demographics, trainings & skill development, health & safety, CSR initiatives & spend, product safety & labelling, corporate governance, ethics in business activity, compensation, and ESG/Sustainability systems in place.
Based on questionnaire and interview responses, a subsequent review and analysis of the responses was done which involved over 100 data points. The review was followed by gathering of additional information from document shared internally, and those available on company’s website in public domain.
The entire process was conducted through a strict communication channel with complete transparency. Basis above, the performance report was prepared consisting of additional suggestions to further improve upon the ESG performance.
In conclusion, the ESG reporting process has yielded significant positive outcomes for the firm. It has increased transparency, identified strengths and weaknesses, improved risk management, fostered stakeholder engagement, and provided a competitive advantage. By embracing ESG principles, the firm is paving the way for a sustainable and responsible future.