Castrol  India  Limited  Corporate  Social  Responsibility  Policy  2016    

 

Castrol  India  Limited  Corporate  Social  Responsibility  (CSR)  Policy  

 I. Title  and  Applicability  

Castrol   India   is   a   Public   Limited   Company   with   59.5%   of   the   equity   held   by   Castrol  Limited  UK  (part  of  BP  Group).  It  has  one  of   the   largest  manufacturing  and  marketing  networks  amongst  lubricant  companies  in  India  

In   line  with   its   business   strategy   and   growth   aspirations,   Castrol   India   Limited   (CIL)  recognizes   the   need   and   importance   of   a   focused   and   inclusive   social   and   economic  development,  especially  in  the  communities  within  which  we  operate.  We  seek  to  build  open  and  constructive  relationships  with  all  our  stakeholders.        This   document   articulates   CIL’s   Corporate   Social   Responsibility   (CSR)   Policy   which  comes  into  effect  from  January  2016  in  line  with  the  Companies  Act  2013.  

This   Policy   applies   to   all   CSR   activities   of   CIL   in   India   and   seeks   to   conform   to   the  requirements  of  Section  135  of  the  Companies  Act  2013,  the  notified  rules  thereof  and  other  such  provisions.  The  Policy  is  underpinned  and  guided  at  all  times  by  the  BP  Code  of  Conduct  (CoC),  available  at  www.bp.com.      

II. Mission  and  objectives  Castrol   India  Limited   aspires   to  be   a   trusted  partner,   continuously   engaging  with  our  stakeholders.  Through  our  CSR  programmes  aimed  at  skill  enhancement,  safe  mobility  community  development  and  humanitarian  aid,  we  strive   to   contribute   to  a   safer  and  better  quality  of  life.      

Over   the   last   hundred   years   of   the   company’s   presence   in   India,   CIL   has   conducted  various  activities  working   in  collaboration  with  key  stakeholders   in  a  responsible  and  accountable  manner.  Going   forward,   the   company  aims   to  build  on   this   foundation  as  we   develop   a   CSR   programme   that   aligns   our   core   skills  with   the   national   agenda   of  development  priorities  to  improve  the  quality  of  life  of  the  populace.  

In   alignment   with   our   core   skills   and   vision   of   engaging   with   our   stakeholders   to  contribute  to  a  safer  and  better  quality  of  life,  CIL  intends  to  focus  on:      i. Eklavya:   Strengthening   skills   in   the   automotive   and   industrial   sectors,   with   a  

focus  on  technology  

ii. Ehtiyat:  Collaborating  for  safer  mobility    

iii. Ekjut:  Community  Development  in  areas  of  operation  and  presence    iv. Ehsaas:  Humanitarian  aid  

   

i. Strengthening   of   skills   development   in   the   automotive   and   industrial   sectors,  with   a  focus  on  technology  

Castrol  India  Limited  Corporate  Social  Responsibility  Policy  2016    

In   support   of   the   national   agenda,   CIL   seeks   to   leverage   its   knowledge   base   and  expertise  to  enhance  skills,  with  a  focus  on  technology,  of  the  working  age  population  in  the  automotive  sector  through  an  array  of  livelihood  skill  enhancement  programmes  for  the  youth.    

By  2020  -­‐  22,  the  proportion  of  the  working  age  population  in  India  is  expected  to  reach  63%  with  a  projected  surplus  workforce  of  56  million  people.  Recognizing  the  potential  of   this   demographic   dividend,   India   has   been   focusing   on   skills   development   at   the  policy   level.   The   establishment   of   the   Ministry   for   Skill   Development   &  Entrepreneurship  towards  skilling  India  and  fostering  entrepreneurship  is  a  key  step  in  this   direction.   The   National   Skills   Development   Council   (NSDC)   report   on   Human  Resource  and  Skill  Requirements  in  the  Education  &  Skill  Development  Services  sector  (2022)   quotes   automotive   sector   growth   expected   to   be   one   of   the   highest,   making  upgradation  of  skills  of  existing,  as  well  as  new  entrants  to  the  workforce,  as  critical  to  growth.  

 ii. Collaborating  for  safer  mobility    CIL  is  dedicated  to  work  with  various  stakeholders  to  help  improve  conditions  for  safer  mobility.   The   objective   is   to   improve   awareness   and   techniques   resulting   in   better  safety  during  road  travel.        

As  per  a  2010  WHO  report,  road  safety  accidents  cost  the  country  an  estimated  loss  of  3%  of  GDP.  Drivers  and  occupants  of  motorized  two  and  three  wheelers,  passenger  cars,  light   vehicles   and  heavy   trucks   account   for   61%  of   the   total   fatalities   caused  by   road  accidents.  India  suffers   the  highest  number  of   road  accident  deaths   in   the  world,  with  more  than  one  million  deaths  due  to  road  accidents  in  the  past  decade  alone.  In  August  2013,   the  Honorable   Supreme  Court   of   India   has   called   the   problem  of   road   accident  deaths  in  India  a  “National  Emergency”.  

The  company  will  bring   its  experience  and  expertise   to   the   table,  of  working  with   the  automotive   industry,   policy   makers,   law   enforcement   officials   and   road   safety  organizations   to   build   successful   collaborations   to   address   road   safety   gaps   and  challenges  in  India.      

 iii. Community  Development  in  areas  of  operations  and  presence  

CIL   supports   local   communities   in   areas   where   its  manufacturing   plants   are   located.  This  is  part  of  the  company’s  commitment  towards  improving  the  quality  of   life  of  the  local   communities   around   its   areas  of   operation.  The   company   intends   to   continue   to  focus  on  youth  and  women,  as  key  agents  of  change  in  the  community.    

 iv. Humanitarian  aid  

CIL  and  its  employees  have  provided  relief  and  rehabilitation  support  to  people  affected  by   the   numerous   natural   disasters   which   impact   our   country.   The   company   will  continue  to  provide  such  support  as  required  in  future.  

Castrol  India  Limited  Corporate  Social  Responsibility  Policy  2016    

III. Planning  and  Implementation    

This  Policy  builds  on  the  learning  and  good  practices  of  the  CSR  projects  initiated  by  the  Company.  The  Company’s  ongoing  CSR  projects  will  be  aligned  to  this  Policy.  

i. CIL  will  undertake  CSR  activities   as   stated   in  Annexure  1,   in   the  above  mentioned  focus   areas   preferably   around   the   operations   and/or   areas   of   presence   of   the  Company  

ii. The  CSR  Committee  may,  if  required,  recommend  to  the  Board  of  Directors  as  part  of  the  CSR  Policy,  activities  outside  of  the  above  mentioned  areas  

iii. All   activities   will   be   undertaken   in   project   mode   with   defined   objectives   and  deliverables,  clarity  on   target  beneficiaries,   implementation  plans  with  schedule  of  timeline  agreed  prior  to  commencement  of  activities  

iv. As  applicable  and  appropriate,  necessary  processes  including  baseline,  midline  and  end  of   project   assessments  will   be  undertaken   to   allow   for   a   structured   approach  and  mid-­‐course  correction  as  required  

v. A  robust  monitoring  and  evaluation  system  will  be  developed  for  each  project  as  per  its  specific  requirements.  As  appropriate,  third  party  evaluations  may  be  built  in  to  assess  impact  on  beneficiaries  and  progress  towards  achievement  of  the  objectives  of  the  CSR  Policy  

vi. Documentation  and  reporting  will  be  undertaken  for  all  projects  to  aid  availability  of  updated  information  and  to  capture  learning  for  posterity  

vii. Suitable   framework   for   financial   controls,   processes   and   reporting   will   be   put   in  place  for  CSR  activities  

 IV. Monitoring  and  Reporting  Framework  

In   compliance   with   the   Act   and   to   ensure   funds   spent   on   CSR   programmes   are  creating   the   desired   impact   on   the   ground,   a   comprehensive   Monitoring   and  Reporting   framework   is   being   put   in   place.   The   monitoring   and   reporting  mechanism  is  divided  into  three  distinct  areas:  I. All  activities  will  be  governed  by  a  pre-­‐set  monitoring  and  evaluation  framework  II. The   framework   will   include   the   key   performance   indicators,   milestones   and  

reporting  periodicity  prior   to   commencement.  Key  performance   indicators  will  include  both  quantitative  and  qualitative  measurables  

III. Financial   and   timelines   based   measurement   will   be   included   with   regular  financial  and  progress  reporting  mechanisms  

 

Key  objectives  of  monitoring  throughout  the  implementation  period  will  be  to  establish  whether:    

I. The  projects  are  making  satisfactory  and  timely  progress  towards  the  objectives  agreed  

II. The  financial  management  and  reporting  are  satisfactory    III. To  flag  any  course  correction  required  Projects   will   evaluate   the   success   of   social   investments   at   the   end   of   their  implementation  period  and  document  any  lessons  learned.  

V. Governance    

Castrol  India  Limited  Corporate  Social  Responsibility  Policy  2016    

The  CIL   CSR  Governance   structure  will   be   headed  by   the  Board   level   CSR  Committee  which   will   be   ultimately   responsible   for   the   CSR   projects   undertaken.   The   CSR  committee  will  report  to  the  Board  of  Directors.  

The  Board  will  review  the  CSR  projects  annually.  The   CSR   Committee   will   consist   of   three   or   more   directors   of   which,   one   will   be   an  independent  director.  The  CSR  Committee  shall:  

i. Provide  oversight  and  guidance  on  CSR  performance  and  monitor  compliance  with  the  CSR  Policy,  commitments  and  the  Statutory  Regulations  

ii. Determine   the  overall   scope  of,  provide   input  on,   and   recommend  adoption  of   the  CSR  report  to  the  Board  of  Directors  of  the  Company  

iii. Review   effectiveness   of   the   CSR   Policy   and   activities   included   in   the   Policy      

VI. Budget  

The  Board  of  Directors  of  the  Company  shall  endeavor  to  spend,  in  each  financial  year,  2%  of  the  average  net  profit  made  during  the  three  immediate  preceding  financial  years  unless   the   nature   of   projects   undertaken   is   such   that   the   spend   gets   divided   in  more  than   one   financial   year.   Utilisation   certificates,   as   appropriate,   will   be   sought   for   all  projects  implemented  by  registered  partners.  

Castrol  India  Limited  Corporate  Social  Responsibility  Policy  2016    

2016  CIL  CSR  programmes  Annexure  1  

The   CIL   CSR   programmes   for   2016,   along   with   their   modalities   and   implementation  schedule  is  given  below:  

S  no  

CSR  Programmes  

Description   Schedule    

Implementation  NGO(s)  

Implementation  schedule  

VII   Q2   Q3     Q4  

1   Eklavya:  Strengthening  of   skills  development  in   automotive  and   industrial  sectors,   with   a  focus   on  technology  

Focus   audience:   two  wheeler   mechanics.  Activities:  

ii,  ix   Pravah;   Jan  Sahas   Social  Development  Society;  Pandit  Deendayal  Petroleum  University  

√   √   √  

·  Technical   training   of  existing   two   wheeler  mechanics  

·  Life  Competencies  

·  Setting   up   Liquid  Engineering  Lab  

·  Entrepreneurship  training.  

2   Ehtiyat:  Collaborating  for   safer  mobility  

Awareness   generation  and   training   on  defensive  driving  

ii   United  way  of  Mumbai  

√   √   √  

3   Ekjut:  Community  Development  in   areas   of  operations   and  presence  

Employability   skill  development;  Sanitation  

i,  ii,   Ambuja  Cement  Foundation;  Pratham  Education  Foundation;  Friends  Union  For  Energizing  Lives   (FUEL),  United  Way  of  Mumbai;  Habitat   For  Humanity  India  Trust  

√   √   √