7/6/2018

1

June, 2018

Our sustainability journey to build a more inclusive and greener world

We own and care for the largest privately managed belt of mangroves in Mumbai

23%Of shares of the Godrej Group’s holding company are held in a Trust that invests in the environment, education and health. As a Group we have always championed social responsibility.

GODREJ GROUP’S PHILANTHROPHYGODREJ GROUP’S PHILANTHROPHY

7/6/2018

2

GOOD & GREEN

OVERVIEW

Achieve zero waste to landfill, carbon neutrality and a positive water balance, while

reducing specific energy consumption and increasing the

use of renewable energy

Train 1 million youth in skills that will enhance their

earning potential

Generate a third of our portfolio revenues from 'good'

and/or 'green' products

Ensuring Employability

Environmental Sustainability

Product Innovation

OUR GOALS

7/6/2018

3

WHERE ARE WE TODAY

Over the years, we have aligned our initiatives with the UN's Sustainable Development Goals, Government of India's missions, and the needs of our local communities to deliver high-impact programmes. Our initiatives are broadly classified under:

Our community CSR initiatives

GOOD GREEN

Sustainability initiatives at our manufacturing plants

GOOD INITIATIVES

OVERVIEW

7/6/2018

4

381,000+Number of youth we have trained in India and Kenya in skills such as beauty and hair care, retail management, sales and distribution, construction and facilities management and animal husbandry

Since 2011, Godrej Salon-i, our flagship programme in beauty and hair care has

helped over 160,000 women becomefinancially independent

ENHANCING LIVELIHOODSENHANCING LIVELIHOODS

GREEN INITIATIVES

OVERVIEW

7/6/2018

5

OUR 2020 GOALS

Goal

33% reduction in specific energy consumption

Reduce specific energy consumption by 30%

Achievement

Increase renewable energy portfolio to 30%

Become carbon neutral

Have a positive water balance consumption

50% of total energy consumption from renewable sources

49% reduction in specific greenhouse gas emissions

35% reduction in specific water consumption

66% reduction in specific waste to landfill

Send zero waste to landfill

OUR IMPACT

Our progress as of March 2017 mapped against the baseline conducted in FY11.

7/6/2018

6

Goal: Reduce specific energy consumption by 30%

InitiativesEnergy conservation and efficiency• Efficient energy use and eliminate

wastage• Retrofits and replacements• Implementing the latest technologies

Process re-engineering• Redesigning existing operations to

enhance higher production output

0

500

1,000

1,500

2,000

2,500

3,000

FY11 FY17 FY 18

2,530

1,749 1,687

Total Energy MJ/T of product

Reduction in specific energy consumption from base line

33 %

Goal: Achieve Carbon Neutral status

Initiatives• Renewable energy projects: Solar, wind and

biomass• Procuring green power: Purchase of clean

and green power• Green House Gas mitigation projects:

Registering projects under VCS• Carbon sequestration: Plantation

Reduction in specific GHG emissions from baseline

49 %

0

50

100

150

200

FY11 FY17 FY 18

181

10392

GHG

7/6/2018

7

Goal: Achieve Water Positive status

Our Initiatives

• Water conservation: Recycle, Reuse, Recover

• Rainwater harvesting within plants: Landscape irrigation and ground water recharge

• Waste water treatment: Latest technologies like RO and MEE

• Watershed development: Harnessing, conserving and regenerating degraded natural resources

Reduction in specific water consumption from baseline

35 %

0

0

0

1

1

1

1

1

2

FY11 FY17 FY 18

1.59

1.18

1.03

Specific Water KL/T of product

Goal: Achieve Zero Waste to Landfill status

Our Initiatives

Waste reduction• 5R strategy (reduce, reuse, recycle, recover

and refuse)

Process re-engineering• Avoid and reduce the volume • Avoid and reduce toxicity of waste materials.

00.20.40.60.8

11.21.41.6

FY11 FY17 FY 18

1.6

0.54 0.55

Waste to landfill

Reduction in specific waste to landfill from baseline

66 %

7/6/2018

8

Goal: Increase Renewable Energy portfolio by 30%

Our Initiatives

Renewable energy projects• Solar, wind and biomass within

manufacturing operations.

Procuring green power• Purchasing clean and green power.

Increase in renewable energy portfolio achieved

50 %

0

10

20

30

40

50

60

FY11 FY17 FY 18

3

47.450

Renewable energy portfolio (%)

ROI FROM ENVIRONMENTAL ROI FROM ENVIRONMENTAL SUSTAINABILITY PROJECTSSUSTAINABILITY PROJECTS

�3.5 billionSaved with an investment of �2.5 billion since FY 2011 on environmental sustainability initiatives.

7/6/2018

9

GILAC COMMUNITY PROJECTS

OVERVIEW

Ongoing 3300 Ha integrated watershed development project in

Beed, Maharashtra

INTEGRATED WATERSHED MANAGEMENTINTEGRATED WATERSHED MANAGEMENT

13,000+Hectares of land is being developed in partnership with NABARD in drought prone regions of Maharashtra, Madhya Pradesh, Karnataka and Telengana. This will help restore over 6-10 million kLof water.

7/6/2018

10

A Swachh Centre in Hyderabad –part of the GHMC collaboration

project

COMMUNITY WASTE MANAGEMENTCOMMUNITY WASTE MANAGEMENT

10,000+Tonnes of waste is being diverted annually from landfill through our community waste management projects across India working with colleges, local municipalities and social enterprises

RURAL ELECTRIFICATIONRURAL ELECTRIFICATION

96Energy dark villages in India connected with renewable energy ecosystems. We are providing decentralised, off-grid renewable energy systems through community level installations.

7/6/2018

11

GILAC FOOTPRINT

WATER CARBON

3.5 MM3

per annum

2.6 Lakh Ton CO2 per annum

WATER AND CARBON OFFSET PROJECTS

Parameters WatershedArea

Potential Water offset (MM3/annum)

Potential Carbon offset (T CO2)

Beed, MH 3300 1.5 30,000

Siddipet, TG 3300 1.5 30,000

Magadi, KA 2250 1 25,000

Bhirwani, MP 3000 1.5 30,000

Total offset _ 5.5 1.15 lakhs tons

GILAC Footprint _ 3.5 2.6 lakhs tons/annum

Footprint after offset _ Surplus 1.45 lakhs tons

By FY20, the Group will become Water Positive

7/6/2018

12

GILAC WASTE FOOTPRINT

Waste to landfill Waste to incineration

Total waste to landfill: 4000 T per annum

WASTE OFFSET PROJECTS

Business Project Quantity offset(T / annum)

GCPL GHMC 2000

GCPL KDMC 5000

GPL BMC 5000

GCPL BBMC 500

GILAC In factory 200

Total Offset 12700

Footprint after offset Surplus

By FY20, GILAC will achieve “Zero Waste to Landfill ” status

7/6/2018

13

OTHER INITIATIVES

OVERVIEW

SUPPLY CHAIN SUSTAINABILITY

Of our suppliers are local and we also source nearly 50% of all the materials we use from local sources. We have crafted sustainable sourcing policies for our businesses and are now in the process of implementing them.

50%

7/6/2018

14

CIRCULAR ECONOMY

• Liasoning with Government bodies to demonstrate a sustainable waste management system

• Three projects commissioned and running:

o Hyderabad Urban Waste Managemento Bangalore MLP waste to co-processingo Jogeshwari Green Waste to Biofuel

• One project under commissioning:

o Urban Waste Management at Kalyan/Dombivali (wet waste)

• All 4 projects are tackling different waste streams and demonstrating effective waste management solutions.

CIRCULAR ECONOMY URBAN WASTE MANAGEMENT

7/6/2018

15

CIRCULAR ECONOMY USE OF PRODUCTS DERIVED FROM WASTE

LIFE CYCLE ASSESSMENT

1. LCA for :

• Godrej No 1 Soap

• SLS/SLES

2. Cradle to Gate analysis for SLS/SLES.

3. Impact Assessment & comparison

4. Action plan for impact reduction in progress.

5. Incorporation of use phase for SLS/SLES.

6. LCA for other products in pipeline.

7/6/2018

16

GREENCO RATING

GCPL, Malanpur plant received the CII Greenco Gold rating in 2017

GIL, Valia plant received the CII GreencoGold rating in 2018

THANK YOU FOR YOUR TIME AND CONSIDERATION