COOPERATE ACCOUNTING CIA-03

Environmental Accounting / Sustainability Reporting

SUBMITTED TO

PROFF. ANURADHA MA’AM

SUBMITTED BY

Arpit Bagaria

2020391

2 BBA C

1
Table of Contents

COOPERATE ACCOUNTING CIA-03 ............................................................. 1

Environmental Accounting / Sustainability Reporting ...................................... 1

MEANING OF SUSTAINABILITY REPORT .................................................. 3

WHY DO WE NEED SUSTAINABILITY REPORTS? .................................... 3

GLOBAL REPORTING INITIATIVE ............................................................... 4

INTRODUCTION ............................................................................................... 6

ECONOMIC GRI (200 SERIES) ....................................................................... 8

ENVIRONMENTAL GRI (300 SERIES) ........................................................ 13

SOCIAL GRI (400 SERIES) ............................................................................. 16

REFERENCES.................................................................................................. 20

2
 MEANING OF SUSTAINABILITY REPORT

Organizations may use sustainability reporting to think about their effect on a variety of issues.
As a result, they are willing to be more open about the risks and opportunities they face. The
most important tool for communicating sustainability success and impacts is sustainability
reporting. In its most basic form, a sustainability report is a report on an organization's social
and environmental performance.

To make this reporting as valuable to managers, executives, analysts, shareholders, and other
stakeholders as possible. A unified standard is a valuable asset that allows reports to be quickly
analysed, fairly judged, and easily compared. The Global Reporting Initiative (GRI)
Sustainability Reporting System has become the most commonly accepted framework as
businesses around the world accept sustainability reporting. Non-financial reporting concepts
such as triple bottom line reporting and corporate social responsibility (CSR) reporting are
interchangeable.

WHY DO WE NEED SUSTAINABILITY REPORTS?

It is critical to establish and preserve confidence in businesses and governments to achieve a

sustainable economy and environment. Businesses and governments make decisions every day
that have direct consequences for their stakeholders, such as financial institutions, labour
unions, civil society, and people, as well as the amount of confidence they have in them. These
decisions are seldom made solely based on financial data. They are focused on a danger and
opportunity evaluation based on data on a broad range of current and potential issues.

The importance of the sustainability reporting process is that it ensures that companies think
about their impacts on these issues and allows them to be open about the risks and opportunities
they face. Stakeholders are also important in identifying these risks and opportunities for
organizations, particularly non-financial ones. Increased accountability contributes to
improved decision-making, which helps companies and governments create and sustain
confidence.

3
 GLOBAL REPORTING INITIATIVE
The Global Reporting Initiative (GRI) is an autonomous, multinational organization that assists
companies and other organizations in taking responsibility for their impacts by providing a
globally shared language by which they can communicate those impacts. The GRI Standards
are the world's most commonly used sustainability reporting standards.

TOPIC SPECIFIC STANDARDS

Multiple topic-specific Standards are included in the 200, 300, and 400 sets. These are used to
provide information on an organization's economic, environmental, and social impacts (e.g.,
Indirect Economic Impacts, Water, or Employment).

An organization uses the Reporting Principles for identifying report content from GRI 101:
Foundation to define its material economic, environmental, and/or social issues to prepare a
sustainability report in compliance with the GRI Standards. The topic-specific Standards that
the company uses to prepare its sustainability report are determined by these content topics.

200 series:

The following must be reported under this series:

201: Economic Performance

202: Market Presence

203: Indirect Economic Impacts

204: Procurement Practices

205: Anti-Corruption

206: Anti-Competitive Behaviour

207: Taxes

300 series:

The following must be reported under this series:

301: Materials

302: Energy

303: Water

4
304: Biodiversity

305: Emissions

306: Effluents and Waste

307: Environmental Compliance

308: Supplier Environmental Assessment

400 series:

The following must be reported under this series:

401: Employment

402: Labour/Management Relations

403: Occupational Health and Safety

404: Training and Education

405: Diversity and Equal Opportunity

406: Non-discrimination

407: Freedom of Association and Collective Bargaining

408: Child Labor

409: Forced or Compulsory Labor

410: Security Practices

411: Rights of Indigenous Peoples

412: Human Rights Assessment

413: Local Communities

414: Supplier Social Assessment

415: Public Policy

416: Customer Health Safety

417: Marketing and Labelling

418: Customer Privacy

419: Socio-economic Compliance

5
 INTRODUCTION

Company Name: JUBILANT PHARMANOVA LTD.

Jubilant Pharma Limited is a global integrated pharmaceutical company offering a wide range
of products and services to our customers across geographies. We organize our pharma
business into three segments. Firstly, ‘Specialty Pharmaceuticals’ comprising
Radiopharmaceuticals (including Radio pharmacies) and Allergy Therapy Products. our
‘CDMO’ segment, comprising Contract Manufacturing for Non-Oral Formulation and Active
Pharmaceutical Ingredients.

6
The company reported consolidated revenue from operations of Rs. 5444.40 million, EBITDA
of Rs. 504.84 million & net Profit of Rs. 171.71 million in FY 2019-20. The Basic eps for FY
2019-20 was Rs. 12.47 Our Agri Products business reported revenue of Rs. 1861.58 million
and Performance Polymer business reported revenue of Rs. 3582.45 million.

The total capitalisation broken down in terms of debt and equity is Rs. 1262.68 million and Rs.
942.87 million respectively. As on 31st march 2020, total number of 590 employees were
employed by the company.

Revenue from operations Rs. 5444.40 Million

EBITDA Rs. 504.84 Million

Net Profit Rs. 171.71 Million

The Basic eps for FY 2019-20 Rs. 12.47 Million

Agri Products revenue Rs. 1861.58 million

Performance Polymer revenue Rs. 3582.45 million

Debt Rs. 1262.68 million

Equity Rs. 942.87 million

7
 ECONOMIC GRI (200 SERIES)

1) GRI 205 Anti-corruption:

• The Company is committed to avoiding any form of corruption in any of its business
dealings.

• Jubilant has a policy on the prohibition of ‘Bribery and Corruption’ which is stated
in the code of conduct. The policy prohibits any personal payment or bribes by
employees of the Company

• Around 832 employees (48%) of the total number of executive employees (LSI
Business) have received anti-corruption training during the reporting period.

• To prevent and detect frauds and errors, perpetual internal audit activity is carried out
by Ernst & Young Associates LLP across all operations.

• The Company has framed the Code of Conduct for its Directors and senior
management.

• This CoC prohibits any form of corruption in any business dealings. The CoC has been
communicated to our Directors and they annually affirm compliance with CoC. All our
Directors in JLL Board are citizens of India.

2) GRI 201 Economic Performance:

The revenue for the year FY 2018-19 was ₹91,108 million.

Global competitive edge due to low cost, vertical integration, and capacity additions with a
commitment to ensure a high level of compliance will further strengthen the businesses. The
company continues to remain focused on generating operating cash to invest to support our
growth and reduce the debt for a strong balance sheet.

The Company delivered:

• Strong and consistent performance through the year thereby achieving EBITDA
(Including other Income) of ₹17,747 million in FY 2018-19.

• The contribution in revenue from international sales of the Company was 73.2% which
mainly comprises North America, Europe, China, and others.

8
 • The Company paid taxes of ₹ 3,268 million at the consolidated level (this amount
mentioned, does not include deferred taxes and minimum alternate tax).

• This year the Company received a grant of ₹ 595.98 million from the Government.

• The paid-up capital was ₹ 159.28 million and consolidated debt was ₹ 48,404.28
million.

• During this year the production from Indian operations was 511,776 MT of bulk and
1106 million capsules and tablets.

• Production from North American plants this year was 1370 million units of tablets,
vials, and other products, which excludes production from Radio-Pharmaceutical’s
business.

• The Company has total assets of ₹114,685.05 million

3) GRI 204 Procurement Practices:

The management approach was adopted for the supply chain at Jubilant Life Sciences Ltd.

includes:

1) Supplier Meet

Supplier Audits are conducted annually to cover critical vendors at least once in three years.
Supplier quality audits include performance assessment against parameters such as
environment, labor practice, human rights, and social impact.

2) Local Sourcing

The Company sources 15.55% of its material, machinery, spares store, etc. domestically.
Whereas, 84.45% was sourced from other countries for Indian operations in 2018-19.

3) Creating Shared Value

The principal goal of supply chain management (SCM) at Jubilant is to provide a substantial
and sustainable value contribution to the success of our businesses. The guiding principles for
our supply chain have been set under our Green Supply Chain policy. All suppliers of LSI and
Pharmaceuticals business have been communicated about Jubilant supplier’s code of conduct
which mandates ethical business conduct. The same has been also uploaded on our company’s
website.

4) Paperless Sourcing

9
Jubilant uses e-Buy- an e-procurement tool that enables paperless buying. It ensures greater
efficiency and transparency in the procurement process and information flow.

Supplier Audits are conducted annually to cover critical vendors at least once in three years.
Supplier quality audits include performance assessment against parameters such as
environment, labor practice, human rights, and social impact.

5) GRI 203 Indirect Economic impacts:

Few of the Initiatives taken by Jubilant Pharma:

• Set up Vocational Training Centres (VTC) at three locations Gajraula, Nira, and
Nanjangud to provide training on soft skills, embroidery, paper quilling, and jewelry
making, etc.

• JBF’s computer literacy program continued at Gajraula, Bharuch, Roorkee, and Nira,
it was also introduced at Nanjangud, Noida, and Varanasi to support digital literacy

• Continued real-time growth monitoring of children of age group 0 – 5 years through

mobile-based biometric-enabled IT platform by the select women health guard
(Swasthya Praharis) of JBF, at 32 villages of Gajraula location in Uttar Pradesh

• In the FY 2018-19 more than 10,000 children from the age of 0-5 years were tracked
for growth monitoring under the malnutrition project in Gajraula.

• Ensuring basic healthcare facilities to the community

• Swasthya Prahari aims at consulting pregnant and new mothers by women health
guards

• Community Health Services- JBF Medical Centre at Gajraula location provides health
services to the patients (16000+) for a few specialized health problems; while, other
locations have basic healthcare services available.

• Flagship program ‘Jubilant Pratibha Puruskaar’ where a monthly scholarship amount

of Rs 500/- is given to meritorious students in Gajraula. A total of 20 students received
scholarships under the program in this financial year.

• Supporting infrastructure development at project schools.

10
 • This year, JBF is supporting the construction of a model government school at Kallahali
village in Nanjangud. The model

• school will have an urban school’s features like a science lab, computer lab, and library.

• At Gajraula, JBF supported a five-government primary school as a model school with

a fully equipped science lab in each school, and at Nira, JBF supported the renovation
of Jubilant English Medium School.

Action:

• Provides subsistence level training to women to form SHGs (Self-Help Groups)

• Provided tailoring skills to SHG’s for starting its own Uniform Stitching Centre

• A significant number of women have secured employment or have become

• an entrepreneur under this program

• Reduce the hard work of teachers in documenting.

• Provides teachers more time to teach.

• Data is entered and delivered directly to the centralized server with the latitude and
longitude of the place of submission.

• Uttar Pradesh as a pilot, covering approximately 40,000 students

Future Plans:

• The project has become self-sustainable it will be further scaled up in the coming years
by providing more forward linkages and increasing the number of women associated
with the program.

• The app-based School Management System aims to mainstream stakeholder

engagement and create an accountability framework in 178 Government Schools in
Bisrakh Block, Gautam Buddha Nagar.

6) Anti-competitive behavior [GRI 206]-

The company’s anti-competitive behavior is anchored to its Code of Conduct. It binds

employees to limit any contract or association with competitors including membership of a

11
trade association to legitimate purposes only. Considering the growing global importance of
following anti-competitive behavior, during FY 2017-18 the Company revised the Code of
Conduct incorporating the code on Anti-Competitive behavior. During reporting year there
have been no legal actions concerning any anti-competitive behavior, antitrust and monopoly
practices by the Company.

12
 ENVIRONMENTAL GRI (300 SERIES)

For a sustainable world, environmental protection is the need of the hour. Knowing that
Jubilant proactively works towards implementing initiatives to balance environmental and
business needs of the company and community. The management has adopted and
implemented international management systems and technologies to mitigate environmental
challenges arising due to daily operations. The top management is committed to environmental
sustainability, considering which various policies have been adopted:

• Environment, Occupational Health & Safety (EHS) Policy

• Responsible Care Policy

• Energy Policy

• Climate Change Mitigation Policy

• Sustainability Policy

• Green Supply Chain Policy

The Company sets environmental targets to monitor its environmental performance on an

ongoing basis. The performance against these targets is reported to the Board of Directors and
presented in the Corporate Sustainability Report.

Environmental goals of key manufacturing sites are set and tracked under ISO 14001, RC
14001 based certified Environment Management Systems.

PARAMETERS MET UNDER EACH STANDARD

Greenhouse gases and emissions [GRI 305- 307] -

• The Company is monitoring and reporting its GHG emission regularly. In the reporting year,
the company has reduced its total GHG emissions by 1.75% concerning the previous year,
(from 983572 tCO2e to 966371 tCO2e). Jubilant is focused on improving energy efficiency.
The Company implemented 85 energy-saving projects in the reporting year that have directly
contributed towards the reduction of around 544TJ of energy consumption (Domestic Coal-
1132 MT, electricity- 8716136 kWh, heating-179598 MT steam equivalent). This is
equivalent to 52238 MT of CO2e (145% increase in GHG emission reduction as compared

13
 to FY2017-18) and incurring total savings of ₹ 1171 million. The key emission reduction
initiatives taken up are as follows-

• Fly ash storage silo increased from 300 MT to avoid open storage of fly ash.

• Old Electrostatic Precipitator(ESP) of 34 TPH MP boiler (stand by) replaced and ESP of 25
TPH MP boiler (stand y) under progress.

• Centralized ash conveying system for MP boilers installed.

Water [GRI 303]-

The Company strives to recycle back, usable water from the effluents after treatment to reduce
freshwater consumption. Most of their Indian manufacturing facilities are zero liquid discharge.
Jubilant set aggressive targets to reduce its water footprint by FY 2020. However, the company
has managed to meet the goal before the target year and has successfully overachieved and
significantly reduced its specific freshwater consumption. After considering its momentum
with water-related initiatives, the company has set greater goals for FY 2024, which are aligned
with the Sustainable Development Goals (SDGs), Intended Nationally Determined
Contributions (INDCs), and other programs under Niti Aayog.

Waste [GRI 306]-

At Jubilant, the non-hazardous wastes are either recycled or reused by third parties. Fly ash,
metal scrap, plastic scrap, paper, and wooden material scraps are a few major contributors to
non-hazardous waste. They are highly committed to minimizing plastic waste and avoiding
littering. Hence, the products are packaged in bulk quantity and in tankers, which considerably
reduces the Company’s consumption of packaging materials. The company believes in
supporting circular consumption patterns of re-using, restoring, and repairing rather than
buying new products for instance some products are sent in drums and carboys, which are
reused wherever feasible. The Company follows different methods for proper disposal of the
hazardous waste generated at its facilities, depending on their nature and local regulation. The
different methods include-

• Recycle and Reuse through authorized third party

14
• Co-processing at a cement kiln

• Secured landfill

• Incineration (both solid and liquid)

Raw materials [GRI 301]-

To remain cost-competitive, Jubilant Life Sciences Ltd. always practices efficient use of
quality material in its processes. The Company utilizes molasses as its key raw material, which
is biogenic. As per the last lifecycle-based carbon footprint study, it was evident that Pyridine
manufactured by Jubilant through Ethanol (biogenic source) route has a much lesser carbon
footprint than similar products which are manufactured through the conventional petro route.
Other major raw materials are alcohol and process chemicals.

Biodiversity [GRI 304]-

Most of the company’s manufacturing facilities are located outside biodiversity sensitive or
notified protected areas. There is no such case of habitats significantly affected by discharges
of water and runoff from Jubilant.

15
 SOCIAL GRI (400 SERIES)

1. GRI 402: Labour or management Relations

This standard requires the company to report the following:

a. Minimum number of weeks’ notice typically provided to employees and their representatives
before the implementation of significant operational changes that could substantially affect
them.

b. For organizations with collective bargaining agreements, report whether the notice period

and provisions for consultation and negotiation are specified in collective agreements.

This is how the standards are being met by Jubilant Pharma:

• The Company encourages its employees, both permanent and contract, to maintain
good relations and constructive bargaining practices with the management.

• Trade Unions exist at three locations and the Works Committee with bargaining
capabilities has been formed by the employees at one location in India.

• The minimum notice period varies for the staff depending on their position in the
organization. The minimum notice period followed for termination of permanent
worker is 30 days and the same is mentioned in their appointment letter.

• In case of significant operational change that could substantially affect employment,

the notice period and/ or Voluntary Retirement Schemes (VRS) are determined as per
the local regulation and direction by a local regulatory body.

2. GRI 406: Non-Discrimination

This standard requires the company to report the following:

a. Total number of incidents of discrimination during the reporting period.

b. Status of the incidents and actions taken regarding the following:

i. Incident reviewed by the organization;

ii. Remediation plans being implemented;

16
iii. Remediation plans that have been implemented, with results reviewed through routine

internal management review processes;

iv. Incident no longer subject to action.

This is how the standards are being met by Jubilant Pharma:

• During FY 2018-19 no case of discrimination was reported to the Ombudsman’s

office.

• Jubilant prohibits any form of discrimination or harassment based on age, caste,

sex, religion, or any other ground. Our code highlights a zero-tolerance policy.
However, four incidents involving sexual harassment were recorded and resolved
during the reporting period.

• The prevailing law in North American manufacturing locations is very stringent and
any form of gender discrimination is prohibited.

3. GRI 407: Freedom of Association and collective bargaining

This standard requires the company to report the following:

a. Operations and suppliers in which workers’ rights to exercise freedom of association or

collective bargaining may be violated or at significant risk either in terms of:

i. type of operation (such as manufacturing plant) and supplier;

ii. countries or geographic areas with operations and suppliers considered at risk.

b. Measures taken by the organization in the reporting period intended to support rights

to exercise freedom of association and collective bargaining.

This is how the standards are being met by Jubilant Pharma:

• The Company never prohibits its employees to form an association following the
local laws.

• The Company engages in open and continuous dialogue with the employee
associations at its manufacturing facilities.

• In India, 537 employees are covered by collective bargaining agreements with trade
unions and worker committees. At the Montreal Unit of the Company, as of March

17
 31, 2019,183 employees were covered by Trade Unions/ Collective Bargaining
Agreements.

• There were no operations where the right to exercise freedom of association and
collective bargaining is at significant risk.

4. GRI 410: Security Practices

This standard requires the company to report the following:

a. Percentage of security personnel who have received formal training in the organization’s

human rights policies or specific procedures and their application to security.

b. Whether training requirements also apply to third-party organizations providing

security personnel.

This is how the standards are being met by Jubilant Pharma:

• All security personnel is briefed about relevant policies of the Company which lay the
foundation for them to function effectively. They have also trained in first responder
and fire security at all manufacturing facilities.

• The security personnel (including third-party organizations) are given basic training on
citizen rights and human rights which has been included in our company’s code of
conduct.

• Regular grievance and awareness sessions are conducted in a forum called “Security
Darbar.”

5. GRI 411: Rights of Indigenous people

This standard requires the company to report the following:

a. Total number of identified incidents of violations involving the rights of indigenous peoples

during the reporting period.

b. Status of the incidents and actions taken concerning the following:

i. Incident reviewed by the organization;

ii. Remediation plans being implemented;

18
iii. Remediation plans that have been implemented, with results reviewed through

routine internal management review processes;

iv. Incident no longer subject to action.

This is how the standards are being met by Jubilant Pharma:

• The Company has operations in various locations across India and North America.

• Jubilant supports and accepts the local cultures of various geographies it operates in.

• There have been no violations involving the rights of indigenous people or those related
to Human Rights in Jubilant during this reporting period.

19
 REFERENCES
https://sdd-pdf.s3.amazonaws.com/report-
pdfs/2019/9ce10534b9a374afeeedc86274c155de.pdf?AWSAccessKeyId=AKIAJZQ4
KYD2D35QKCDA&Expires=1618589236&Signature=PGMfGQ3dRv7E%2FBWhN
rDNSynmjDY%3D

https://www.jubilantindustries.com/pdfs/csr-report-2017-18.pdf

20