when imagination meets action, you know the future is …€¦ · · 2016-07-28when imagination...
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When meets action,Imaginationyou know the future is green!
Sustainability Report 2015www.fsc.orgFSC® A000521
Kansai NEROLAC SUSTAINABILITY
REPORT 2015
INDEX
Market, Products and Services
Certi�cate and awards
Report Pro�le, Scope and Boundary
KNPL Supply Chain
Stakeholder Engagement
Economic Performance
Environmental Performance
Employee Investment
Social Performance
Membership
GRI Index
Message from Executive Director
Message from Managing Director
Corporate Governance
Risk Management
02
03
06
10
12
14
16
20
24
32
35
44
50
56
57
Kansai Nerolac Paints Sustainability Report 2015 01
Kansai Nerolac Paints Sustainability Report 2015 02
Message from Managing Director
Dear Stakeholders,
I am proud to present the Company�s Sustainability Report for the �nancial year 2014-15.
Kansai Nerolac�s vision towards sustainable development is marked by focused approach keeping in mind economic, environmental and social aspects of business.
For the year ended, we achieved top line growth of 12.6% and net pro�t growth of 31.5%. We accomplished good growth in our businesses.
We have shown exigency and commitment and have proactively addressed major sustainability challenges of energy, material and water conservation with respect to our operations; wherein we strengthened our focus on adoption of renewable energy and process energy ef�ciency to curtail energy cost. Solar power plants at Hosur, third party renewable energy procurement are some of our major implementations last year in energy domain leading to energy ef�cient manufacturing.
On safety front, KNPL achieved 15.24 million man-hours without any lost time injury (LTI). Company has given utmost focus on consideration of safety at design phase and implementation of safe work practices at plants. Safety excellence accolades from FICCI (Federation of Indian Chambers of Commerce and Industry) and GreenTech endorse our strong safety performance and our journey towards operational excellence.
Innovative initiativesLast year we continued to innovate through collaboration among various stakeholders to achieve solutions for challenges of tomorrow. Innovative development of lower baking schedule products has helped our customers to save energy during paint application and thereby reduce carbon footprints. Our Hazardous Air Pollutant (HAP) Free coating solution for automobile interiors has been another trend-setter innovation to reduce indoor air pollution in Automobile and thereby transfer health bene�ts to customers. Company has also developed Low VOC products for Green Buildings and coating system for energy saving.
Deepening the CultureCompany has taken proactive steps in development of �Safety First� culture through active employee participation and building scienti�c awareness about safety hazards. Company is thriving on Operational excellence through culture of continuous improvement and 5S.
Serving SocietyLast year company framed corporate social responsibility committee to strengthen its focus on social activities along themes of environmental sustainability, livelihood enhancement, Promoting education, Healthcare and sanitation program and Community development. With an understanding that Social stewardship is a key for holistic business growth, KNPL has actively engaged with local stakeholders to extend �nancial aid to social programs and development of local infrastructure. Further going ahead; let me assure our stakeholders of stronger triple bottom line performance to enrich long term value for our stakeholders. I am con�dent that company would continue to post stronger growth in coming years.
H. M. BharukaManaging Director
Kansai Nerolac Paints Sustainability Report 2015 03
Message from Executive Director
Dear Stakeholders,
We, at Kansai Nerolac Paints Limited (KNPL), continue to pursue triple bottom line goals with more vigor and drive to push forward sustainability agenda. I am happy to see signi�cant advancement in environmental and social goals along with �nancial goals. Last year, there have been focused efforts to address sustainability challenges on operations as well as sales front towards pro�tability improvement. Emerging challenges of rising energy and raw material cost are partly subsided through increased ef�ciency in manufacturing processes. KNPL operations sustainability agenda is guided through adoption of cleaner technologies, renewable energy and reduction of GHG & Water footprints.
In environmental dimension, KNPL has put in extensive efforts to reduce environmental impacts of our manufacturing processes at source. Last year, KNPL achieved 9% reduction in water consumption at source. We have proactively installed zero liquid discharge facilities at all our major plants to reuse and recycle treated water completely. In coming year, we intend to further benchmark water consumption at source and horizontal deployment of best practices. Waste management is one of the key focus areas to achieve objectives of 3R � Reduce, Reuse and Recycle. We intend to progress towards improved material and energy ef�ciency through reduction of environmental footprints of our supply chain. Accounting of environmental parameters across organization is facilitated by SAP EHS portal. Over the years, GHG footprints at KNPL have been reduced due to proactive adoption of renewable energy and improvement in energy ef�ciency.
We continue to maintain zero lost time injury across KNPL this year too; consistently fourth year in a row. Over the years, �Safety First culture� has been ingrained in our systems and we are committed to maintain and further improve safe workplace with effective implementation of preventive measures, due
diligence and horizontal deployment of best safety practices. Employee participation in safety has been enhanced through frequent KYT (Kiken Yochi Training) activities at plant for proactive identi�cation, elimination and communication of actual hazards at actual place. Going ahead, we intend to transcend further towards safety excellence through effective adoption of mistake-proo�ng for static charge elimination and increasing scienti�c awareness about operational hazards through practical demonstration at our in house safety laboratory.
At the same time, KNPL continued its focus on addressing emerging customer needs through its extensive customer engagement activities such as Joint improvement projects, Customer training, Technical services, Colour trend and new technology exhibition etc. We maintained our leadership position in Industrial paints through our continuous and ardent efforts in development of cleaner technologies and products. 3Coat�1Bake (3C�1B) technology development has been one of the landmark achievements in this regard. Company continues its focus on sustainability & working hard on energy ef�cient coating technologies. For decorative paint market, KNPL has embraced concept of eco friendly products and it has pioneered launch of green products in decorative paint market.
Another major dimension of Corporate Social Responsibility is gaining momentum among industry corporate nowadays. At KNPL, Our impetus is to address social and local community needs in collaboration with our employees, local communities, and government authorities to contribute towards social bene�ts in the focus areas of Health, Education, Environment and Community development. I would like to thank all stakeholders for their contribution to organization�s sustainability efforts and would like to see further progress through earnest efforts from KNPL team.
Pravin ChaudhariExecutive Director
Kansai Nerolac Paints Sustainability Report 2015 04
Kansai Nerolac Paints Limited (KNPL) has been a cherished name in millions of households across the length and breadth of India for its healthy, eco-friendly and high quality products that are made through energy ef�cient manufacturing systems. The company manufactures a diversi�ed range of products for every surface. It is the second largest coating company in India and the market leader in industrial paints segments with a market share of over 40%. KNPL is an Indian subsidiary of Kansai Paints Co., Ltd, Japan (KPJ). Parent Company is a market leader in Japan and renowned brand on the globe for its product innovation, R&D and holistic approach towards environment and sustainable growth.
KNPL started its illimitable journey in the year of 1920 as Gahagan Paints and Varnish Company. After several strategic mergers and acquisitions today KNPL is leading the Asia�s second largest market with sales locations all over India and strategically located four manufacturing facilities at Jainpur (Uttar Pradesh), Bawal (Haryana), Lote (Maharashtra) and Hosur (Tamil Nadu). Company�s manufacturing units have received ISO 9001-2000, TS 16949, ISO-14001 and OHSAS-18001 for its quality management and eco-friendly production.
Technologically innovative products are the company�s hallmark. KNPL technical vision is to develop judicial mix of state-of-the-art, environment friendly and value for money product and process technologies in Industrial and Architectural coating. Products the company is engaged in manufacturing of automotive coating, general industrial coating, high performance coating and powder coating. �Impression�, �Beauty�, �Excel� and �Suraksha� are some key brands of company that gave immense success and recognition in Indian market.
KNPL has strong presence in automotive paints segment with its major clients include OEMs like Maruti Udyog, Bajaj Auto, Honda Cars, TATA Motors, and Mahindra & Mahindra. It has been the vision of KNPL to leverage global technology and serve the customer with superior coating system and world class solutions.
It was a pioneer in introducing electro-deposition(ED) technology for Maruti, capturing a sizeable share of the automotive paints markets.
KNPL won many prestigious awards like Golden Peacock Envi ronment Management Award, GreenTech award, FICCI safety excellence award, Best Vendor Awards from its esteemed customers like Toyota Kirloskar Motors Ltd., Maruti Udyog Ltd.(MUL) and Honda Motors, Product of the year award for Nerolac Excel-2010, Product of the year award for Nerolac Excel Total with Heat-Guard Technology-2011, award for Marketing initiative like Cannes 2007 Bronze for Press Ad. This all has been possible because of the combined effort of world class management and highly quali�ed and skilled employees working at corporate of�ce, manufacturing plants, divisional and area of�ce.
Kansai Nerolac Paints Sustainability Report 2015 05
Introduction
Markets, Products and Services
Kansai Nerolac Paints Sustainability Report 2015 06
We serve our customers through our extensive distribution network spread across India. In India we have four plants which supply �nished goods to distribution network of three Regional Distribution centers and 94 Depots. Our three Regional distribution centers are located at plant locations Lote, Jainpur and Hosur.
Decorative Paint Products
EXTERIOR RANGE
NEROLACBEAUTY SILVER
NEROLACBEAUTY GOLD
NEROLACLOTUS TOUCH
NEROLACIMPRESSIONSECO CLEAN
INTERIOR RANGE
NEROLACIMPRESSIONS24 CARAT
PO
PU
LAR
PR
EM
IUM
NEROLACBEAUTY SMOOTH
NEROLACLITTLE MASTER
EC
ON
OM
Y
EC
ON
OM
Y
PO
PU
LAR
PR
EM
UM
SU
PE
R P
RE
MIU
M
NEROLACSURAKSHA PLUS
NEROLACSURAKSHA ADVANCED
SPECIALITY PRODUCT
NEROLACSURAKSHA
NEROLACEXCEL
Kansai Nerolac PaintsSustainability Report 2015 07
METAL
ANCILLARY
WONDERWOOD RANGE
PR
EM
IUM
SU
PE
R P
RE
MIU
M
2K PU INTERIOR
MEL MINE
2K PU EXTERIOR
PO
PU
LAR
1K PU CLEAR ACRYLIC LACQUER
Kansai Nerolac Paints Sustainability Report 2015 08
Industrial Paint Products
Automotive Coatings High Performance Coating
General Industrial Powder Coatings
Heavy metal free automotive products
Electro-deposition (ED) technology
3C-1B(3 Coat 1 Bake)/2C-1B System
Intermediate coats/Primer surfacers
Top Coats
Scratch resistant Clear Coats
High solid basecoats
DTM (Direct to Metal) coatings
Multimetal coatings
Touch up paint & Auto re�nish
Heat Resistant Paints
Underbody Paints and PVC sealants
Rapgard transit protection �lm
Barrel Coating
Bus Body System
Containers
Fan Coatings
Gas Cylinder Coating
Glass Coatings
Hacksaw blades
Helmets
Material Handling equipment
TV Cabinets etc
Floor Coating
Industrial Paint Products Industrial Paint Products
Epoxy Polyester Powder
Epoxy Powder
Pure Polyester Powder
Chlorinated Rubber coatings
Conventional Coatings
Epoxy Coating
Polyurethane Coating
Powder Coating Products High Performance Products
Being leader in Automotive coatings, we extend our products to automotive customers located across India through our strategically located manufacturing faci l i t ies. Adjacent map shows automot ive manufacturing clusters across India which constitutes major market for us.
Automotive Market
Delhi-Gurgaon-Faridabad
Mumbai-Pune-Nashik-Aurangabad
Chennai-Bengaluru-Hosur
Kolkata-Jamshedpur
Gujrath
Kansai Nerolac PaintsSustainability Report 2015 09
Powder Coating:
KNPL is leader in Powder coating business in India. Applications of powder coating products in various industries are illustrated below in brief.Powder Coating applications in white goods Industry: In the white goods industry, we are well recognized as being a high quality �nish for both major and minor applications. In this industry, the advantage of high corrosion resistance with single coat application has resulted in powder coatings being used on a wide variety of electrical appliances, including:
Air conditionersMicrowave ovensRefrigeratorsWashing machines, etc.
Powder Coating applications in Automotive Components:
Current applications in the automotive industry include - Air �lter housing, brake calipers & components, bright trim molding, bumper bars, door handles engine mirror housings, motorcycle frames, oil �lter housings, rocker covers, seat frames, steel wheels.
Powder Coating applications in Furniture:
The furniture industry is a major market for powder coatings. Powder coatings are used extensively on both commercial and domestic furniture for both their performance and for their appearance. The performance characteristics of powder coatings such as toughness, Hardness, Corrosion Resistance, Excellent scratch resistance, excellent gloss etc. make them suitable for furniture applications.
Kansai Nerolac Paints Sustainability Report 2015 10
Certi�cate and Awards
Certi�cate and Awards
Kansai Nerolac Paints Sustainability Report 2015 11
Bawal plant won Certi�cate of appreciation for Good Practices in Safety at FICCI (Federation of Indian Chamber of Commerce and Industry) safety systems Excellence Awards for Manufacturing 2014
KNP was felicitated with Vendor Performance award by SUZUKI Motors India for year 2013-14.
Lote plant received �Certi�cate of Merit� from National Safety Council (NSC) � Maharashtra chapter for achieving zero accident frequency rate for three consecutive years.
Lote plant received �Certi�cate of Appreciation� from National Safety Council (NSC) for safety awards 2014.
Nerolac�s Magic Clean (water-based paint remover), declared as winner at Economic Times - ACETECH�s Design Wall 2014 under the Product Innovation category.
KNPL received best vendor award from HMSI for year 2014-15
Bawal plant received GreenTech Safety Award 2014 in Gold category for outstanding achievement in Safety Management System.
Kansai Nerolac Paints Sustainability Report 2015 12
Innovative kaizen implemented by Mr. Venkatesh declared as a winner in EHS category in HCIL (Honda Car India Limited) kaizen competition � Western Zone.
This is forth consecutive year; KNPL is disclosing sustainability performance as per GRI guidelines for �nancial year 2014 -15. (1st April, 2014 � 31st March, 2015). This sustainability report is based on revised GRI G4.0 - Core Guidelines. Sustainability report is compiled and published every year based on GRI reporting principles i.e. Balance, Comparability, Accuracy, Timeliness, Clarity, and Reliability. Financial information published in report is based on KNPL annual report which is publicly available at our website. References to GRI indicators are provided in GRI Content Index. Sustainability report content is reviewed by Management committee followed by rigorous review by Executive Director and Managing Director of company. After reviewing report content and approval from Top management, sustainability report is published and further distributed.
For any clari�cation with respect to report or to request for additional copies, please contact through mail at � [email protected]
The Corporate of�ce of KNPL is at:Nerolac House, Ganpatrao Kadam Marg, Lower ParelMumbai � 400013,Maharashtra
Report Scope:
This report covers performance of all manufacturing facilities and concerned supply chain operations of KNPL in India. KNPL has four manufacturing facilities in India located at Lote, Bawal, Hosur & Jainpur.
Report Pro�le, Scope and Boundary
Kansai Nerolac Paints Sustainability Report 2015 13
Hosur Manufacturing facility
Jainpur Manufacturing Facility
Lote Manufacturing Facility Bawal Manufacturing Facility
KNPL Supply Chain
Kansai Nerolac Paints Sustainability Report 2015 14
KNPL supply chain is illustrated in simpli�ed format in diagram below. We cater to industrial as well as Decorative customers. Planning and Distribution part of supply chain differs for two major group of customers � Industrial and Decorative as mentioned below. For Industrial customers planning is carried out as per �Make to Order� philosophy, while decorative customers are served through our wide distribution network and planning is carried out based on forecasted demand.
Production plan is output of planning phase which provides input for manufacturing in terms of �nished goods to be produced and raw materials to be procured to ful�ll the demand. Purchasing of required materials and manufacturing of paint is carried out as per production plan followed by distribution to customer through our distribution network.
Manufacturing
FG Distribution Network
RDC (Regional
Distribution Centre)
Outside Processing centers
Paint processing at manufacturing sites
Customers Retailers
Depot
Demand Planning
Production Planning
Production Plan
Finished Goods (FG) - Paints
Finished Goods (FG) - Paints
FG
Kansai Nerolac Paints Sustainability Report 2015 15
CorporateGovernance
Kansai Nerolac Paints Sustainability Report 2015 16
KNPL has rich legacy of fair business dealings and ethical practices governed by code of governance so to be a responsible corporate citizen and to serve best interests of stakeholders of the organization. It is professionally managed company which believes in operating in a transparent and ethical manner. KNPL strives to achieve excellence through code of governance and various other policies such as whistle blower policy etc. to ensure good governance. The overall management structure headed by the Managing Director incorporates strong leadership at the corporate level. The KNPL Board functions in a democratic manner and plays an essential role in ensuring good governance. Members are free to bring up any matter for discussion at Board Meetings with the permission of the Chairman. The role, functions, responsibility and accountability of the Board are clearly de�ned. The highest governing body guides progress in economic, environmental and social domain to drive triple bottom line performance of organization.
Corporate Governance
Kansai Nerolac Paints Sustainability Report 2015 17
Board of Directors and their committees
The strength of Board as on 31st March, 2015 is nine Directors. The Board comprises Executive and Non-Executive Directors. The Managing Director and a Whole-time Director are the two Executive Directors. There are seven Non-Executive Directors, of which four Directors, including the Chairman, are Independent Directors. The Board also consists of one Woman Independent Director. The Board has constituted �ve committees - Audit Committee, Remuneration & Nomination Committee, Stakeholders� Relationship Committee and Management Committee and corporate social responsibility committee.
Further details are available on the company s website: http://www.nerolac.com and in our annual report, which is available on the website. Other details related to composition of the board, details of members of the board and their compensation are available in our �Annual Report�. All the shareholders and employee are free to share or advice any information with the highest governing body through our website. The members of our governing body ensure to respond towards suggestions made.
Board of Directors
Remuneration & Nomination Committee
Audit Committee
Stakeholder's relationship committee
Corporate Social responsibility committee
Management Committee
Kansai Nerolac Paints Sustainability Report 2015 18
Orientation of newly elected directors and updation strategy
Newly elected directors are given a presentation on the functioning of the Company. Every quarter, reports of thevarious departments of the Company are circulated among all the directors. These reports give speci�c particulars of the respective departments. Apart from this, the directors are intimated of the changes as and when they happen. All the functional heads are present at the Audit Committee Meeting of the Company held every quarter. Presentations are also made to the Board of Directors by the functional heads. This ensures that the functional heads can apprise all the directors about the developments in their speci�c areas.
Code of Conduct for senior Management: The Company has adopted a Code of Conduct for Board of Directors and Senior Management (the Code) to address following mentioned governance issues �
The Code has been communicated to the Directors and the members of Senior Management. The Code has also been posted on the Company�s website www.nerolac.com. All Board members and senior management have con�rmed compliance with the Code for the year ended 31st March, 2015. The Annual Report contains a declaration to this effect signed by the Managing Director who is the Chief Executive Of�cer.
Con�ict of InterestCorporate Opportunities
Con�dentiality
Compliance with laws, rules and regulations
Protection and proper use of company assets
Fair dealing and ethical business conduct
Encouraging the reporting of any unethical behavior
Annual certi�cation
Ethics and Integrity
Kansai Nerolac Paints Sustainability Report 2015 19
KNPL has code of ethics and every employee is expected to adhere to this code. We also have whistle blower policy in place to detect and remedy any non compliance to the code. We have strict policy against bribery and corruption and take all steps to ensure our operations are as transparent as possible.
Responsive, Innovation, Team Orientation, Entrepreneurial, Simplicity (Brie�y described as RITES) are core values for all nerolites which provide the blueprint to guide in right direction. KNPL has adopted CSR policy to guide governance and CSR activities. As per CSR policy KNPL will lend a helping hand to the society in which it operates, in the areas of health, education, environment preservation and community development.
KNPL has adopted Code of Conduct for Managerial and Executive Staff which may be considered as �Code of Conduct for Prevention of Insider Trading and Code of Corporate Disclosure Practices� and the �Policy on Appropriate Social Conduct at the Workplace�.
Precautionary Approach
KNPL is keen on adopting new emerging practices and approaches to cater to precautionary approach as speci�ed by principle 15 of �The Rio Declaration on Environment and Development�.
Our precautionary approach is characterized by following major areas
Company is keen on leveraging opportunities driven by Climate change and it has invested in above approaches. While leveraging these opportunities, it has also identi�ed risks posed by climate change. Mitigation plan has been developed to address these risks.
Reduce, Reuse, Recycle initiatives to reduceoverall water consumption
Raw material substitution Process optimization and waste minimization
Adoption of renewable energyAdoption of cleaner technologyProduct differentiation based on green features
KNPL Code of conduct consists of following major elements:
Encouraging the reporting of any illegal or unethical behavior
Handling news about the companyCompliance procedureAnnual certi�cation to code by senior
managements
Con�ict of InterestCorporate OpportunitiesCon�dentialityCompliance with laws, rules and regulationsProtection and proper use of company assetsFair Dealing and ethical business conducts
Kansai Nerolac Paints Sustainability Report 2015 20
Being a company dealing with chemicals, we have always followed a systematic approach for business risk management. We make annual plans to clearly identify the top risks and set out a mitigation plan with targets and accountability. The company has identi�ed risk areas along with its probability & severity in various aspects of business. Our company has a detailed Enterprise Risk Management (ERM) framework to mitigate the risks. A detailed function wise Risk Register is maintained to monitor and mitigate risks. Identi�ed Risks are reviewed on quarterly basis.
The Risk Management Committee analyses and prepares a framework which covers whole of our business for risk management. The committee communicates risk management objectives to the concerned people and determines criteria for de�ning major and minor risks. Then resources are allocated along with roles and responsibilities to mitigate these risks. We have a team of independent auditors who are responsible for internal audit at corporate level. They identify risk all across the business and identify the areas of improvement.
Risk Escalation Mechanism
Major Risks
Board of Directors
Risk Management Committee
Chief Risk Of�cer
Risk Of�cer
Minor Risks
Functional Head
Risk Of�cer
Staff
Staff
Risk Management
Kansai Nerolac Paints Sustainability Report 2015 21
Board of Directors
Audit Committee
Risk Management Committee
Functional Heads
Chief Risk Of�cer
Staff
Risk Of�cers
Risk Management Process Flow
Decide strategic goal & risk appetite
Review risk appetite & risk policies
Provides oversight to the company�s risk management function
Review effectiveness & give suggestion
Prepare company - wide framework for risk management. Communicate risk management objectives. Determine criteria for de�ning major & minor risks. Allocate resources. Fix roles & responsibilities.
Updating company � wide risk registered. Deciding strategies for escalated major risk area. Draw action plan. Prepare Quarterly report for review of audit committee.
Prepare framework of risk management for the function. Monitor its effectiveness & ef�ciency.
Give Quarterly & escalation of major risk events to the risk management committee.
De�nes processes & procedures. Give direction to the risk of�cers in their function.
Give Quarterly report & escalation of major risk events to the functional head/ risk management committee.
Implementation of directions given by risk of�cer.
Give periodic Quarterly report to the risk of�cer. Promptly communicate risk areas and major variation in the control factor.
Implement the risk management system in their function. Communicate objective, procedures to all the employees.
Quarterly report consolidation received from staff. Preparation of functional Quarterly report. Communication of risk area & major variation in control factors to the functional head & chief risk of�cer.
Key Impacts, Risks and Opportunities
Kansai Nerolac Paints Sustainability Report 2015 22
Foreign currency risk is one of the major risks considering 35-40 % of KNPL raw materials are imported. KNPL team continuously keeps track of market �uctuations through various online resources and work on mitigation measures like forward contracts, effective price forecasting system etc. It has developed elaborate policies and procedures to minimize impacts of price volatility. Other �nancial risks addressed by risk management committee are account receivable risks, slow moving and non moving inventory risks, investment related risks. These risks are addressed by speci�c mitigation measures. KNPL has de�ned credit policies and customer evaluation procedure for new as well as existing customers. Return on investment is monitored periodically to mitigate investment related r isks. KNPL has centralized payments and Capital Expenditure sanctions to reduce any mismanagement of fund. In addition to this, internal audits, code of conduct, sound ethical value system and effective whistle blowing policy also help address this risk. All assets and stocks are insured through insurance policies against applicable types of risks.
Sustainable development is today�s one of the major focus areas. Climate change risks are at epicenter nowadays and it is common global concern. It poses varied types of challenges to paint industry like ours. Especially, water and energy scarcity are pressing issues of India. KNPL is exigent in its approach to address these challenges. Last year, energy security risk has been mitigated through implementation of various initiatives such as installation of solar power plant, procurement of biomass based power, wind wheeling agreement, usage of biodiesel etc. Impacts of climate change risks are hard to de�ne due to their intangible nature. But these intangible issues are set to gain more importance as time passes. Also they may become tangible issues through legal developments in environmental �eld in India. Prices of fuel and energy are increasing day by day which may hamper pro�tability if not curtailed with proper mitigationmeasures. To add to this, it is also envisaged that government may come up with Cap and trade
schemes in this area like PAT, RPO scheme to encourage energy ef�ciency and adoption of renewable energy. To cater to these risks, KNPL has proactively taken measures like third party energy audit, solar energy procurement, Low carbon energy installation, adoption of biodiesel etc. India is facing water crisis in many regions and it is believed that regulations in water will become stricter over next few years. Water Balance module of SAP EHS facilitates water consumption monitoring. All our major manufacturing facilities are zero discharge facility and KNPL has taken Reduce, Reuse and recycle initiatives to reduce water consumption over the years. Applicable legal compliances are monitored with the help of Compliance Mantra � an IT portal to mitigate legal risks. Voluntary regulations and standards and their increasing popularity may be a risk factor in long term. KNPL participates in corporate reporting standards like CDP, GRI etc. and accounting of GHG footprints of value chain impacts. Other climate change risks are from our customers. KNPL being leader in automotive and Industrial paints, our customers as a part of supply chain due diligence are taking cautious steps towards purchase of environment friendly products and services. KNPL has taken it as an opportunity to gain competitive advantage through development in eco friendly products as well as technologies. KNPL has developed technologies to reduce wastage in coating process and bene�ted its customers. KNPL R & D team strives to develop substitute for hazardous constituents and imported raw materials to address this challenge.
With release of Companies Act, 2013, Corporate Social Responsibility(CSR) is gaining importance in the corporate world. At KNPL we believe that CSR is about responsible wealth creation. Companies while contributing to economy needs to act in a socially responsible way to sustain social license to operate. We acknowledge this as an imperative to carry out business in current scenario. KNPL has embarked upon corporate social responsibility as a conscious way of existence. Focus areas of KNPL for CSR activities are Health, Education, Community
Financial risks and opportunities have been explained in following paragraph.
Kansai Nerolac Paints Sustainability Report 2015 23
development and Environment preservation. As a good samaritan, Nerolac has imbibed coexistence with the community around it and the saying that �what we give to society, it gives back to us�, really holds true. Investments have been made in establishing health centers, organizing health camps, �nancial donation to
educational institutions for creating infrastructure with respect to technology, books, and periodicals, working with NGOs for upliftment of the poor and needy, setting up basic amenit ies for regions around our establishments, besides taking measures for safeguarding the environment.
Skill Development Skill Development plays an important role in the progress and development of an individual as well as of the nation. Our goal is encouraging & supporting institutions imparting education. We also try to focus on educating girl child & children residing in nearby villages in the vicinity of our manufacturing units.
HealthThe objective is to support various activities towards improving and generating awareness about general health & primary health care to the general masses, and the people residing within the vicinity of our plants.
KNPL focus areas of corporate social responsibility
Community DevelopmentOur goal is to provide basic facilities to the community settled in the vicinity so as to support and improve their basic living and thus ful�ll the role of being a good Corporate Citizen.
Environment PreservationIt is our continuous endeavor to support preservation of resources like water, green cover and provide clean environment.
Stakeholderengagement
Kansai Nerolac Paints Sustainability Report 2015 24
Kansai Nerolac Paints Sustainability Report 2015 25
Industrial Customers
KNPL has consistently delivered upon expectations of its industrial customers to earn new businesses which helped it maintain leadership position in Indian market. Basic Expectations of Industrial customers are driven by Innovation, high quality products, cost competitive, consistent performance and timely delivery. Apart from these basic expectations, Industrial customers are keen to understand colour trends, consumer lifestyle research, etc. and upcoming new Paint & application technologies. Faster New Product development is another major focus area for KNPL to win new businesses from Industrial Customers.
KNPL engages with its industrial customers though various engagement activities as summarized below.
Auto Synergy Meet: It is the platform where New Technology and color trends study is shared with senior management of customer. Major topics stressed during these events are color trends and introduction to new technology. KNPL senior management shared latest energy saving technologies and need to work together for shared bene�t.
Technical Services to Industrial customers: Kansai Nerolac has well established technical service team with its Central Service Technology Laboratory based at Lower Parel, Mumbai. Satellite Technical Service Laboratories are established at Chennai and Delhi. Over 85 Technical Service team members are located at important customer sites to support production lines.
Vendor Meet organized by KNPL Customers: Our Industrial customers organize periodic vendor meet as per their schedule to keep their vendors abreast of new developments and short term & Long term plans. KNPL being one of the major vendors for Industrial segments, KNPL senior management participate in those vendors meet to align ourselves to customer needs.
Type of Engagement
Auto Synergy Meet – Technology Presentation
Vendor Meet organized by Customers
Plant Audits by Customers
Industrial Customer Visit to plant
Customer Training programs
Technical services
Customer Satisfaction Survey
Sr. No.
1
2
3
4
5
6
7
Kansai Nerolac Paints Sustainability Report 2015 26
Decorative Customers
Train the Customer Initiative: It is another initiative to support trouble free performance of KNPL products at the user end. KNPL focuses upon basic training on paint technology, Paint application, Paint shop safety, Defect causes and cure to paint shop, quality, Maintenance employees at customer's end.
Customer Visit: KNPL invite its customers to visit factories to understand Paint processing and it�s application. Our newly incorporated Hosur factory has been highly appreciated by our customers.
In decorative market, decision to buy paint is majorly in�uenced by end consumer, painters, contractors as well as dealers in an area. To tap decorative market, we carry out numerous engagement activities with customers and in�uencers. Some of the major activities are as mentioned below. Over the years we have gained our identity as producer of �Healthy Home Paints� and we are engaging with our customers to enlighten them about bene�ts of our products. Focused on Health and Green themes, we have aligned our some of the engagement activities as below.
Impressions Dealer Meet: It is forum to create trade awareness among dealers and strengthen partnership with our dealers. In total approximately 1000 dealers and 100 members of Nerolac�s Decorative Sales team were reached out through year-long nationwide activity. Each dealer meet was centered around our product franchise Nerolac Impressions (Eco Clean & 24 Carat). Through demonstration of live panels of Nerolac Impressions vis-a-vis competition and through interactive sessions by the top of�cials from Marketing and Sales department, dealers were made to visually see and experience the richer �nish of Nerolac�s Premium most range � Nerolac Impressions.These meets were also served as a build up to the HD campaign for product Nerolac Impressions.
Type of Engagement
Impressions Dealer meet
Interactive Programs with IGBC
Participation at Exhibitions
Contractor Meet
Health Check up camp for painters
Earth Matters – Meet with Architects
Sr. No.
1
2
3
4
5
6
Kansai Nerolac Paints Sustainability Report 2015 27
Engagement with Painters: Painter skill development program and Painter health check up program were two of our major initiatives to engage with painter community. Painter lacks professional trainings and their source of training is usually restricted to their peer group who themselves are mostly not professionally trained.
Painter skill development program aims at enhancement of painting skills through classroom as well as practical training by Nerolac experts. Skill development programs were conducted at nine locations in Maharashtra and Gujarat to train painter with new designer paint techniques. Around 350+ painters took bene�ts of the same. Another painter engagement activity is through arrangement of health check up camps for painters. Painters spend their majority of time with paints and allied products in construction atmosphere. Painter usually belong to community who hardly check their health regularly as they spend their majority time in their work to earn more for their family. Being leading paint brand in India, KNPL continued its initiative to conduct health check up camps for painters. Around 34 health camps were conducted across nation for painters.
Engagement with Architects: Earth Matters convention series was launched by Kansai Nerolac, in association with Indian Architect & Builder, as an inspiring think-tank on green endeavors. Embodying its theme, Earth Matters brought together all over India architects whose practices resonate with the green vibe.
The convention has travelled across to more than 40 cities over a span of �ve years, elaborating on the relationship between architecture and sustainability. Earth Matters focuses on emerging concepts, ideas and innovations aimed at making the future sustainable and eco-friendly. This year Earth Matter initiated a proactive discussion amidst the architect through panel discussion across 3 cities where the architects highlighted various thought provoking sustainable practices each unique to the city.
The journey of three cities included- Ahmedabad, Chennai, Delhi. Each city witnessed an overwhelming audience of 100-150 architects and interior designer appreciating the proactive initiative giving each one a chance to share their thoughts. Each of the earth matter series was covered by Architects and Interior India Magazine that has readership of over 50000+ architects, interior designers and Construction Professionals. Our Facebook page of Earth Matter generated over more than 10000 interactions amongst architects and interiors who are members of the page for videos and posts on Earth Matter series
Participation at IGBC ConferenceIGBC, the annual Green Summit was organised by CII in hyderabad from 4th to 6th September, 2014. Theme of the conference was Green Home. The conference was enthralled by well renowned speakers across the fraternity of architects, interior designer, realty �rms, technology partners and government of�cials. Being pioneers of theenvironment friendly paints, Nerolac was given opportunity to present on role of paints in green home. A session by Mr. Yatnesh Pandey from KNPL was well appreciated by the audience of the architects and interior designers.
Kansai Nerolac Paints Sustainability Report 2015 28
Employees
Various communication and engagement forums have been developed in KNPL to capture voice of employees at Plants, head of�ce, depots etc. KNPL believes in involving its employees in its business growth. The workforce is aligned to the company�s goals through various media like newsletters, MD�s address, Plant head�s address etc. Interactive sessions like open house are also conducted wherein plant employees get a chance to voice their concerns and suggestions to top management. In FY 14-15, address for annual goals took place over a phone call by MD for entire workforce of KNPL across India. KNPL provides knowledge sharing platforms like knowledge management portal. Employees can access and upload various documents on this portal. These documents are then used for horizontally deployment of good practices across KNPL. Nerolites are encouraged to showcase their talent through various events and competitions like Kaizen competition, project competition etc.
Employees are appraised through such interactions and events. Also, there are speci�c platforms developed for employee appraisals. Performance management diary is used to keep nerolites updated on their performance; Nerolites can also enter highlights in their performance diary. Regular dialogue with appraisers helps to address the concern of employees.
Type of Engagement
“Manthan” – Kaizen Competition at HO
Interplant Kaizen Competition
Employee Training
Interplant FIP (Focused Improvement Projects) Competition
Impressions (Monthly newsletter of KNPL)
MD’s address to all employees
Open house session
Manthan award ceremony at Head Of�ce Interplant Kaizen Competition
Interplant Focused Improvement Projects: Improvement projects are identi�ed in each targeted areas � PQCDSM (Productivity, Quality, Cost, Delivery, Safety, Morale) at the start of year. Multifunctional project team is formed to carry out identi�ed projects. During Interplant FIP competition, best performing team is awarded.
Sr. No.
1
2
3
4
5
6
7
Shareholders and Investors
KNPL use following means of communication to keep its shareholders and investors abreast of KNPL performance.
Quarterly Results: The quarterly results are published in accordance with the requirements of the Listing Agreement of the BSE and the NSE.
Publishing of results in newspaper: The Economic Times and The Maharashtra Times, Results could also get published in any other reputed newspaper such as the Financial
Express / Loksatta or the Business Standard
Quarterly results are also displayed at our website www.nerolac.com
Annual General Meeting: Schedule of Annual general meeting is informed to all of our shareholders and they are encouraged to participate in meeting.
Suppliers
Kansai Nerolac Paints Sustainability Report 2015 29
We consider vendors as our business partners and hence we have developed appropriate vendor engagement and development platforms. To deliver Quality paint products, it is necessary to receive consistent Quality from our Raw materials vendors. To manage objectives of Quality Raw materials, Timely delivery & other development initiatives, KNPL has adopted Best Vendor Performance management system. To emphasize these aspects, KNPL Quality Assurance team assesses vendor performance on Quarterly basis followed by audit of Critical vendors. Vendor audit is based on multiple criteria such as Quality performance, ISO 9001, TS 16969, ISO 14001, OHSAS 18001, Factories act etc. During vendor audit following major points related to Environment, Health and Safety are assessed.
Type of Engagement
Vendor Performance Assessment and Audit
Joint Improvement projects
Systems followed � ISO 14001, OHSAS 18001
Compliance to statutory and regulatory requirements � Factory license renewal, Explosive license, Hazardous handling, Pollution control board clearance, Air & Water Consent renewal
Safety � Availability and accessibility of �re �ghting equipments and their controls Availability of MSDS for materials
Sustainability and green initiatives
Safety and housekeeping standards
For better collaboration with our vendors we have adopted Nerolac portal to facilitate supply chain visibility of order processing. KNPL also engages with its vendors for joint improvement projects to leverage upon certain competencies of vendors.
Sr. No.
1
2
Kansai Nerolac Paints Sustainability Report 2015 30
Materiality Aspects and Scope
Materiality and Scope for KNPL
Strong economic performance is necessary for an organization to be sustainable.
KNPL ensure that wages offered to its employees are compliant with prevalent norms and regulations.
KNPL addresses this material aspect through its Corporate Social Responsibility (CSR) activities.
KNPL tries to procure its raw materials from local vendors to the extent possible. But some ingredients are needed to be imported to fulll certain specic needs.
Environmental performance is an important component of triple bottom line performance. It is necessary for an organization to reduce environmental impacts of its operation through efcient manufacturing processes and adoption of cleaner technologies. It is need of an hour to use natural resources like water, materials etc. efciently while reducing wastes, emissions and efuents. KNPL has always been keen on development of eco-friendly products and technologies to help reduce its impact during paint application.
KNPL has always been keen on leveraging its technological edge to develop innovative products and technologies to reduce environmental footprints during application phase. Being leader in Industrial market, it has developed products which are made of concern free ingredients and are low in energy consumption during application. It has differentiated its decorative products as healthy home paints, low VOC paints.
Supplier assessment is carried out during vendor audits which covers various elements including their legal compliance status, ISO 14001, OHSAS 18001 etc.
Material Aspects
Economic Aspects
Environmental Aspects
Materials
Energy
Water
Biodiversity
Emissions
Efuents and waste
Compliance
Economic Performance
Market Presence
Indirect Economic activity
Procurement practices
Transport
Overall
Products and Services
Supplier Assessment for labour practices and Environment
Material aspects related to Labour practices
Employees are an important asset to organization.
KNPL is an equal opportunity employer.
KNPL is committed to conduct its activities in such a way as to take the foremost account of the Occupational Health and Safety (OH & S) of its employees and all the individuals working in its plants.
Training and Education of workforce is necessary to upgrade skills of employees working in various functions. It helps the organization to be competitive through enhanced employee participation and engagement.
KNPL complies with all applicable regulations and standards with respect to human rights.
KNPL has policy to guide Corporate Social Responsibility (CSR) activities in areas surrounding its operational sites. The manufacturing locations and corporate ofce drives planned CSR programs in the scheduled quarter by involving external agencies or on their own.
KNPL has well established code of conduct and whistle blower mechanism to address corruption related risks.
KNPL complies with all applicable regulations with respect to Marketing communications, labeling and customer privacy. It also tries to promote healthier and safer nature of its products through eco labels.
KNPL maintains customer privacy in terms of sharing and publishing of customer details.
Material Aspects related to Product Responsibility
Employment
Human Rights
Material aspects related to Society - Local Community
Anti Corruption
Marketing communications
Product and Service labelling
Customer Privacy
Diversity and equal opportunity
Labour/Management Relations
Occupational Health and Safety
Training and Education
Kansai Nerolac Paints Sustainability Report 2015 31
Kansai Nerolac Paints Sustainability Report 2015 32
EconomicPerformance
KNPL Financial Performance
Kansai Nerolac Paints Sustainability Report 2015 33
Component 2012-2013 (in crores) 2013-2014 (in crores) 2014-15 (in crores)
Direct economic values generated
Gross Revenue 3375.65 3739.02 4211.64
Revenue Generated 2872.9 3174.35 3570.85
Economic value distributed
Revenue Distributed 2695.6 2967.78 3299.18
Economic value retained 177.3 206.57 271.67
Note: For more details regarding Employee bene�t plan, please refer to Note 31, Annual report of KNPL for FY 2014-15.
De�ned Employee Bene�t plan
Employer�s contribution to Regional provident fund Commissioner
Employer�s contribution to Family pension fund
Employer�s contribution to Superannuation Fund
2013-14 (Rs. in crores)
1.23
1.40
2.26
4.89
2014-15 (Rs. in crores)
1.11
1.87
2.46
5.44
Rev
enue
gen
erat
ed(in
mill
ion
rupe
es)
Direct economic value generated
Financial Years
2872.93174.35
3570.85
2012-13 2013-14 2014-15
Rev
enue
Dis
trib
uted
(in
mill
ion
rupe
es)
Financial years
Economic Value Distributed
2695.62967.78
3299.18
2012-13 2013-14 2014-15
Eco
nom
ic v
alue
ret
aine
d(in
mill
ion
rupe
es)
Financial Years
Economic Value Retained
177.3206.57
271.67
2012-13 2013-14 2014-15
Total
Kansai Nerolac Paints Sustainability Report 2015 34
All strategic Economic Decisions are taken by Board of Directors and executed by the Managing Directors, Management Committee and Departmental Heads as the case may be. The economic decision making responsibility with respect to daily business operation are delegated to the Managing Director, Management Committee, Departmental Heads and so on. Management committee forms highest governance body of organization under the aegis of Managing Director. Management committee members are responsible for economic decisions with respect to areas under their purview which are approved by Managing Director and Board of Directors.
At KNPL, Agenda and plans for next �nancial year is decided at the start of year which entails documentation of detailed annual business plan. Based on annual business plan and market trends with respect to currency value, Raw material cost, Energy costs etc., detailed annual budget is conceived by Chief �nancial of�cer of Company which is further approved by Board of Directors. Annual expenditure is divided into two major categories - CapEx (Capital Expenditure) and Revenue Expenditure.
Note: Please refer to �nancial statement in Annual report for FY 2013-14 for more details.In last �nancial year there has been no �nancial assistance received from government.
Raw Materials
Pigments, Extenders and Resins
Organic acids and anhydrides
Solvent oils and fatty acids
Others
Quantity in MT
121686
11884
77844
Rs. in Crores
910.81
129.63
690.31
131.47
Quantity in MT
125722
13551
79906
Rs. in Crores
965.53
135.3
670.5
128.55
FY 2013-14 FY 2014-15
Raw Materials (in %)
Imported
Indigenous
FY 2013-14
36
64
FY 2014-15
40
60
Consumption
Environmental Performance
Kansai Nerolac Paints Sustainability Report 2015 35
Kansai Nerolac Paints Sustainability Report 2015 36
Environment
KNPL strives to achieve environmental excellence through its holistic approach towards manufacturing. Company is actively pursuing environment and safety agenda to achieve its goals. It believes in achieving manufacturing excellence and generating business value through adoption of environment friendly technologies and processes. Company strives to achieve minimal material losses in its operation to avoid environmental impacts. Apart from continuous monitoring of environmental parameters, it has actively taken strategic decisions to adopt close loop processing with minimal environmental and health impacts. Silo system for powder conveying, pigging system, SCADA process automation etc are examples of major strategic investments.
Last year, company has taken major steps towards increasing contribution of renewable energy in its energy mix. Installation of solar power plants, wind wheeling, biomass based power procurement were some of our key implementations during last year. On energy consumption side, Company is exigent about implementation of energy ef�ciency opportunities. Last year, we have achieved commendable performance in energy front.
Environmental Governance
EHS organogram is represented by below diagram. At KNPL, EHS function takes care of environmental responsibility. All plant environmental initiatives are driven by Plant EHS team. Corporate EHS team drives special projects with respect to environment and safety.
Environment review meetings are conducted on monthly basis at respective plant location where works manager acts as chairperson and EHS head acts as Secretary. EHS review meeting at head of�ce is chaired by Executive Director in presence of VP Supply chain, GM manufacturing, Chief Manager EHS & chief manager - Central Engineering. It happens on every alternate month. Top management provides their invaluable inputs during EHS review meeting and guides EHS initiatives.
Organogram for Environmental Governance
EHS Organogram
General Manager -Technical
Chief Manager -Technical
General ManagerManufacturing
Executive Director
Vice President -Supply Chain
Chief Manager EHS
Of�cer EHS
Fireman
Vice President -Technical
HOD EHS, Plants
Works Manager
Kansai Nerolac Paints Sustainability Report 2015 37
Materials
Paint is a mixture of binder, pigment, additive and solvents. Material cost constitutes major proportion of paint cost. The company has adopted close loop manufacturing processes in its new manufacturing facilities to reduce material losses. Company has proactively taken steps towards improvement in material ef�ciency in its manufacturing through adoption of cleaner technologies and close loop
material addition facilities. Further we are keen on recovery and reuse of material losses. We have installed advanced systems like silo system for automatic powder addition, pigging system, process control through SCADA etc. to optimize process parameters and avoid losses therein.
Water Management
In Indian scenario, there has been increasing stress on surface and groundwater resources. Water scarcity can pose major sustainability challenge for tomorrow�s business. At KNPL we are focused on ef�cient water management at our manufacturing facilities. Our efforts are driven towards reduction of non product water consumption at sources. Water consumption is tracked daily at source to optimize water usage and address deviations on regular basis. We have installed zero water discharge plants at all our major manufacturing facilities. Whole treated water is reused in processes. Sewage treated water is reused for toilet �ushing, gardening purpose. RO (Reverse Osmosis) permeate water is reused in cooling tower and utilities. Distilled water from multiple effect evaporator is reused in processes and utilities. Last year we achieved around 9.7% reduction in water usage in KL/Ton of FG as shown in adjacent graph.
1.75
1.58
1.45
1.5
1.55
1.6
1.65
1.7
1.75
1.8
FY2013-14 FY2014-15
Wat
er u
sage
in K
L/ T
on o
f FG
Water usage in KL/Ton of FG
Adjacent graph shows rain water harvested at Lote plant. Collected rain water is used for non production purpose at Lote. At other plants we have ground water recharge system for collected rain water.
Water Sources
SIDC (State Industrial Development Corporation)
Ground Water
Volume of water Consumed (in Cu. Meters)
146795
187955
Quantity of rain water harvested
Rai
nwat
er h
arve
sted
(in C
u.m
)
0
1000
2000
3000
4000
5000
6000
Timeline
2615
2009
2964
2010
3952
2011
4511
2012
5543
2013 2014
3609
Kansai Nerolac Paints Sustainability Report 2015 38
Ef�uents and Waste
Ef�uent treatment: Lote, Bawal and Hosur manufacturing facilities are zero discharge facilities. Domestic ef�uent is separately treated in Sewage treatment plant which is reused for Toilet �ushing and gardening purpose inside plant. Industrial ef�uent generated from processes such as �oor washing, equipment cleaning etc. is treated in ef�uent treatment plant followed by treatment through RO and Multiple evaporator system. RO permeate is reused in processes such as make up water for cooling tower, boilers etc. Puri�ed water generated after �nal stage of multiple effect evaporator is also reused in processes to ensure 100% recycling of treated water.
Air Quality Management:
Ambient air Quality is monitored on periodic basis at different locations for all manufacturing units of KNPL. Air quality monitoring exercise includes measurement of ambient air quality, Stack emissions, VOC level at shop �oor, Noise level etc. at designated locations in our factories. Air pollution control devices such as cyclones, scrubbers etc. have been installed at stacks to �lter our air emission before discharge into ambient atmosphere. Pollutant load discharged through our factories is well within statutory limits. Dust collectors have been installed at Powder charging area to control emissions on shop �oor and to enable reuse of collected powder. To ensure adequate ventilation on shop �oor, our work areas are installed with Forced Draft Ventilation system. Fume extractor system has been installed at shop �oor in critical areas to control VOC at work place. Company has installed close loop processing to the extent possible to avoid any air emissions into atmosphere during paint processing. The refrigeration/chilling systems used for process cooling and central air conditioning systems in KNPL do not contain ozone depleting substances (ODS). There is no emission of Ozone depleting substances in the atmosphere due to KNPL operations.
Air Quality Parameters
Ambient Air Quality (in ug/Nm3)
19 29
2332
53
50
0
20
40
60
80
100
120
SO2 NOx PM10
Am
bien
t Air
Qua
lity
(in u
g/C
u.m
)
Statutory limit FY 2014‐15
Kansai Nerolac Paints Sustainability Report 2015 39
Waste Management:
At KNPL we believe that wastes are resources which are not put to proper use. So KNPL waste management approach is focused on process optimization to reduce waste at source and technology upgradation to reduce environmental impacts. Major hazardous wastes generated from our manufacturing sites are Distillation residue, ETP Sludge, Mixed Paint, off speci�cation paint etc. These wastes are being disposed off as per statutory requirement to authorized Treatment and disposal facilities. No waste is transported internationally from our sites. In last �nancial year, there have not been any cases of signi�cant spillage at any of our manufacturing site.
Efforts are driven along following key themes to optimize material usage during process and reduce waste generation at source.
No
Usage of reusable SS (Stainless steel) mesh
Process control with the help of SCADA technology
Implementation of pigging system for cleaning of piping system after batch
Installation of zero hold up �lters
Nitrogen purging in pipelines for critical operations
Installation of advanced technology leakage free pumps
Installation of powder silo system for powder addition (Close loop material addition)
Improved and sustained focus on CLTI (Cleanliness, Lubrication, Tightening and Inspection)
NPI (Non Production Issue) monitoring at source
Batch-wise variance monitoring
Themes
Waste reduction through reduction of material losses during manufacturing
Optimization of process parameters,Material and energy consumption
Recovery of material sticking losses thereby reducing material wastage at source.
Help in recovering whole material from �lter to reduce material losses in the process
Reduce and recovery of sticking losses with respect to paint and resin
Helped to maintain Spillage free shop �oor and to reduce material losses during manufacturing
Eliminated workmen exposure to powder dusting and powder losses
Reduction in generation of contaminated cotton waste
Waste reduction through reduced spillage
Optimization of material for non production purpose
Bene�ts
Implementation of Cleaner technologies and cleaner processes
1
2
3
1
2
3
4
5
6
7
Process optimization
Kansai Nerolac Paints Sustainability Report 2015 40
KNPL currently don�t reclaim packing material generated from products sold. But the company promotes reuse of packing containers of paint generated after paint application by its customers.
Financial Year
Hazardous waste in Kg/ Ton of finished g oods
3.63
3.1 3.1
2.8
3
3.2
3.4
3.6
3.8
FY 2012 -13 FY 2013 -14 FY 2014 -15
In the continuous endeavor to further reduce the impact of painting on the environment, Nerolac pioneered a simple and innovative project ��U Can' which aims to make our paint cans eco-friendly by converting them into attractive �ower pots. Nerolac printed stickers with different themes and designs which can be simply wrapped around used paint cans and then by just removing the handle and making a hole at the bottom, the plastic cans can be turned into beautiful �ower pots. The message was spread through print ads and other media. Nerolac Home Painting Service crew was trained to turn the used cans to pots after painting. Stickers were also distributed via paint retailers. The activity made recycling easy, accessible, fun and above all a beautifully rewarding exercise.
Energy Management
There has been increasing focus on energy security in Indian scenario as country is dependent on fossil fuels to ful�ll its most of the energy needs. Energy scarcity is impending in Indian scenario. Over last few years, Indian government has been keen in its approach to encourage energy ef�ciency and adoption of renewable energy through various policies and mechanisms. KNPL has been following two pronged approach to overcome this sustainability challenge. Firstly, it has focused on improvement in energy ef�ciency through energy consumption monitoring and adoption of cleaner technologies. Secondly, it has been proactively adopting renewable energy to ful�ll some of its energy requirement.
Kansai Nerolac Paints Sustainability Report 2015 41
Speci�c Power consumptionMethod of Calculation: Speci�c power consumption is ratio of power consumed to total paint production at respective facility during speci�ed period. Power consumption is sum of power received from grid (i.e. state electricity board) and power generated from DG set at respective manufacturing facility.
Speci�c Fuel consumptionMethod of Calculation: Speci�c fuel consumptiaon is ratio of fuel (i.e. HSD) consumption in boilers to total paint production at respective facility during speci�ed period.
1616 16
0.00
5.00
10.00
15.00
20.00
FY 2012 -13 FY 2013 -14 FY 2014 -15
in L
T/T
on
ne
of
FG
Fuel (High Speed Diesel) Consumption(in LT/Tonne of �nished goods)
134
151148
125.00
155.00
KW
H/T
on
ne
of
FG
Electricity Consumption (in KWH/Tonne of Finished Goods)
FY 2012 -13 FY 2013 -14 FY 2014 -15
To be Implemented*
Implemented*
5
8
2500
2600
1
2
Total estimated annual CO eq saving2
Number of ProjectsStage of DevelopmentSr. No.
Summary of energy saving projects is as given below along with stage of development.
Method of Calculation: Above power consumption includes power received from grid (State electricity Board) as well captive power generation from DG set at respective locations.
34,967
42,14244,136
0
10000
20000
30000
40000
50000
Un
its
( '0
00 K
WH
)
Power Consumption across KNPL (in '000 KWH)
FY 2012 -13 FY 2013 -14 FY 2014 -15
Following energy saving initiatives were implemented in last �nancial year
Implementation of energy ef�ciency initiatives
Replacement of CFL /incandescent lights with LED lighting at NEROLAC HOUSE
Replacement of existing Metal Halide street lamps with LED at NEROLAC HOUSE
1599006
8500
2000
1
2
3
Energy saving during FY 2014 -15 (in KWH)Description of ActivityNo.
Renewable energy initiatives implemented in last �nancial year are as below
Units of energy harnessed
Type of Renewable energy
Installation of Sola tubes to utilize Solar radiations for lighting purpose at warehouses
Installation of solar power plant
Procurement of power through Wind wheeling agreement
Renewable energy No.
Third party power procurement: We migrated from HSD �red DG�s to Biomass based power generation
Usage of Biodiesel as a fuel in boilers to replace conventional source of energy i.e. High speed Diesel
Solar
Solar
Biomass
Wind
Biomass
1
2
3
4
5
10000 KWH
125058 KWH
653453 KWH
735000 KWH
600073 Litres of biodiesel
Other Initiatives which are to be implemented and planned for this �nancial year are as follows
No. Activity Type
Installation of solar power plant of capacity 400 KW
Replacement of CFL with LED lights
Installation of constant speed variable torque motors
Upgradation of existing air conditioning system using VRF technology
Implementation of energy audit actionables at Hosur
Description of Activity
Low Carbon energy purchase
Energy Ef�ciency: Building services
Energy Ef�ciency: Processes
Energy Ef�ciency: Building services
Energy Ef�ciency: Processes
1
2
3
4
5
Kansai Nerolac Paints Sustainability Report 2015 42
GHG Emissions
Biodiversity
All operational facilities are located in the State Industrial Development Corporation area. None of these sites are located near any protected area or area of high biodiversity or ecologically fragile area. There are no signi�cant adverse impacts on biodiversity because of KNPL activities. All of our expansions projects are have been undertaken after due environmental impact assessment (EIA) and stakeholder consultation as applicable. There is no IUCN Red listed species affected by any of the KNPL�s activities. There have been no signi�cant initiatives from KNPL for protection or restoration of any biodiversity rich habitat. But our initiatives towards tree plantation have created manmade small eco system which serves as habitat for native fauna.
KNPL sustained GHG emission intensity despite capacity expansion and addition of intermediate manufacturing facilities. Focused approach towards energy management in the company has led to ef�cient energy usage. It has not only helped to reduce environmental impacts but also to achieve cost saving objectives.
Scope 1 GHG Emissions: Direct GHG emissions
� Captive power generation from DG� HSD consumption in boilers
1
Scope of DataActivitiesTypes of GHG Emissions accounted
Sr. No.
Scope 2 GHG Emissions: Indirect GHG emissions
� Power imported from grid
Scope 3 GHG Emissions: Other Indirect emissions
� Product transport� Raw material transport� Employee commuting� Business travel
KNPL India Operations
KNPL India operations
KNPL India operations
2
3
Methodology followed
Company has been accounting GHG emissions through its customized GHG accounting tool, wherein various data such as fuel and electricity consumption, transportation etc data is collated and further converted to CO2 emissions. Conversion factors used for GHG footprint calculation are taken from IPCC default emission factors, CEA (Central Electrical Authority) database etc.
Following table gives GHG emissions from KNPL India operations.
Financial Year
2012-13
2013-14
Scope 1
10595
11033
Scope 2
24599
29448
Scope 3
5818
4124
Total Emissions (in MT)
41012
44605
Emission per MT of Production
0.21
0.21
0.214792951203399888112014-15
Kansai Nerolac Paints Sustainability Report 2015 43
Kansai Nerolac Paints Sustainability Report 2015 44
EmployeeInvestment
Kansai Nerolac Paints Sustainability Report 2015 45
KNPL Employees
Total KNPL manpower 2388
KNPL Employee based on Gender
98%
2%
Male
Female
57%
13%
30%
KNPL Manpower Categoriza�on
Executives Managers Operators
Kansai Nerolac Paints Sustainability Report 2015 46
Bene�ts provided to Full Time Employees
Short term Employee Bene�ts:
Employee bene�ts payable to an employee within a span of twelve months of service are classi�ed as short term employee bene�ts. These bene�ts include salaries and wages, bonus, ex-gratia etc. These are recognized as an expense at an undiscounted amount in the statement of pro�t and loss of the year in which the related service is rendered.
Post Employment Bene�ts:
Provident and Family Pension Fund The eligible employees of the company are entitled to receive post employment bene�ts in respect of provident and family pension fund, in which both the employees and the company make monthly contributions at a speci�ed percentage of the employees� eligible salaries. The contributions are made to the provident fund managed by the trust set up by the company or to the Regional provident fund commissioner (RPFC) which is charged to the statement of pro�t and loss as incurred.
SuperannuationThe eligible employees are entitled to receive post employment bene�ts in respect of superannuation fund in which the company makes annual contribution at a speci�ed percentage of employees� eligible salary. The contributions are made to the Life Insurance Corporation of India (LIC).
GratuityKNPL also has an obligation towards gratuity, a de�ned bene�t plan covering eligible employees.
Other Bene�tsThe Company provides for encashment of leave or leave with pay subject to certain rules. The employees are
entitled to accumulate leave subject to certain limits for future encashment.
For eligible employees, following bene�t schemes are provided.
In last �nancial year, two of our employees availed maternal leave bene�ts.
Employees� Group Accident PolicyPMH (Medical Insurance)Holiday home facilityMaternal leave bene�ts
Mobile expenses reimbursements Company leased accommodation Financial Assistance for EducationEmployee Referral Program bene�tEmployees� Group Insurance Policy
Kansai Nerolac Paints Sustainability Report 2015 47
We, at Nerolac, are committed to create a learning environment which is business � centric whereby the employees are developed as leaders and are prepared to meet current & future business objectives through deployment of a �pull� strategy rather than a �push� strategy. Employees are encouraged to broaden their horizon through training programmes as well as other employee engagement forums such as Kaizen competitions, Performance review process, monthly review of section performance etc.
Categories of Training:
Induction Training Induction training is given as an initial preparation to new hires upon taking up a post.
Competency based TrainingCompetency Based Training emphasizes on enhancing the competencies required by a person for a particular job and position, in order to achieve individual growth and organizational goals.
Functions speci�c Training Functional Training aims at upgrading the employees� functional knowledge to keep up with the ongoing internal and external changes, which affects the day to day working in the short run and the individual & organizational growth in the long run.
Skill Development programSkill Development programs aims at upgrading and multi skilling the employees� current skill level by means of Work Instructions, Standard Operating Procedures and Single Point Lessons.
Advanced Sales TrainingSales Training programs aims at training and upgrading the Frontline Sales personnel to develop the face-to-face selling skills which are needed to promote an open exchange of information thereby reaching to mutually bene�cial sales agreements.
During last Financial year, training in terms of man-hours per employee has been calculated as 13.38 Man-hours/employees. KNPL employees receive feedback on their performance at regular intervals through HRSCAPES� in house KNPL IT portal. HRSCAPES also facilitates communication with respect to Key Result Areas, attendance, payroll and performance feedback related activities. All policies are communicated through HRSCAPES IT portal.
Whistle blower policy and code of conduct of the company have been shared on HRSCAPES. During last �nancial year, there have been no incidents of discrimination.
Training and Education
Kansai Nerolac Paints Sustainability Report 2015 48
KNPL is an equal opportunity employer. All recruitment for senior positions is based on talent and suitability of candidate with respect to a job vacancy. But local candidates are preferred in case their portfolio matches with job requirement.
As a policy, the Company keeps wages of its employees above the standard entry-level minimum wages �xed by the State Government. There is no gender differentiation in the Company�s wages.
We strictly comply with provisions of all applicable acts. All new joinees are given training on KNPL code of conduct as well as whistle blower policy. Security personnel at our site and head of�ce are trained in required policies and procedures of organization.
Occupational Health and Safety
Occupational Health and Safety contributes to business through its unique portfolio of accident prevention, ensuring healthy working conditions and Safety awareness. There has been zero lost time injury across KNPL during last three years.
All of our manufacturing facilities are OHSAS 18001 and ISO 14001 certi�ed. Safety audit is important part of our OHS management system. Types of safety audit at KNPL are as below �
Safety audit by Corporate EHSInterplant Safety Audit
Audit by Kansai Paint, Japan � Safety Team
Audits by KNPL customers External safety audit
Today�s Mantra of operational excellence passes through safety excellence. With this objective, the company has sustained its focus on preventive measures in ensuring safety at workplace. This year�s key efforts were driven by increased frequency of KYT (Kiken Yochi Training � Hazard prediction), implementation of Pokayoke to ensure static charge elimination & safety audits at plant. KYT sessions have helped to address actual hazards at actual place through participation of employees. Last �nancial year, EHS gallery was set up at Hosur plant to demonstrate safety hazards and countermeasures in practical and scienti�c manner. In coming year we intend to develop EHS laboratory cum experience centre to help employees understand safety hazards in scienti�c manner and raise awareness level further. Elimination of static charge accumulation is another major safety agenda for which efforts are being taken towards development of mistake-proo�ng during chemicals/raw material handling.
Kansai Nerolac Paints Sustainability Report 2015 49
As all of our facilities are OHSAS 18001 and ISO 14001 compliant, hazards in the processes are minimized to acceptable level as tracked by risk register at each plant. Speci�c control mechanisms like isolation, Forced draft ventilation, machine guarding, use of Personal protective equipments etc have been put in place. Apart from this workers are trained on safety and environmental aspects of their daily operations. It is ensured that operating conditions at shop �oor are safe for operation and workers are not exposed to any risk of diseases related to occupation. We have separate occupational health centre at each of our plants to address health problems if any and to carry out periodic health checkup of employees.
At KNPL, we believe health and safety is everybody�s responsibility. Especially we encourage contribution from our workers to drive continual improvement in this aspect. Composition of joint management-worker health and safety committee is as speci�ed in factories act, 1948 and applicable factories rules. Safety committee at each location consists of equal number of representation from operators and management. To ensure worker involvement, Health and Safety guidelines are also included in formal agreements with union at plant locations. Operators are expected to extend full co-operation in ensuring 5S and Safety on the shop-�oor and in the premises of factory. Participation of workers in safety training (On the Job or Classroom training) is mandatory. Apart from safety meetings at plant, Progress in safety aspects & Initiatives is discussed with top management during periodic safety committee meeting at head of�ce wherein major safety investments and critical strategic safety related agendas are discussed.
Company is taking concrete steps to further strengthen its safety and achieve safety excellence. As a part of management development program, EHS (Environment Health and Safety) representative from KNPL visited Kansai Paints, Japan (KPJ) for knowledge up-dation in safety domain. Based on learnings during KPJ visit, Danger experience program has been introduced at KNPL to help employee experience past safety incidents across KNPL. Danger experience program is based on Japanese special training program which covers past accidents/incidents and their root causes along with its practical demonstration.
KNPL Incident Management System: KNPL achieved 15.24 million man-hours without any lost time injury (LTI). Continuous efforts to eliminate workplace hazards, accident preventive and corrective measures have enabled company to reduce incident at workplace. All types of incidents are investigated thoroughly to attack root causes and �CAPA - Corrective and Preventive action� is prepared and implemented across all plants as per applicability. Further to ensure horizontal deployment of CAPA and learning, it is circulated across all plants through Knowledge Management portal and CAPA audits are carried out by corporate EHS team periodically to ensure their sustenance.
Incidents at KNPL manufacturing facilities are divided among following heads
Activity Type
Near Miss (in Nos)
Reportable Injuries
Lost time injuries
Lost work days
Minor Injuries
Man hours worked (in Lakhs)
Frequency Rate
FY 2012-13
15
0
0
0
12
51.52
0
FY 2013-14
12
0
0
0
20
66.38
0
FY 2014-15
9
0
0
0
6
59.05
0
Social Performance
Corporate Social Responsibility
Kansai Nerolac Paints Sustainability Report 2015 51
Social stewardship is a key factor along with the sustained economic performance for holistic business growth. Increasingly aware of the need of Sustainable development, we believe, a sustainable business is a business that people value: its employees value it as a great place to work; its customers value it as a great business to do business with; community values it as a great neighbor; and as a result other stake holders too value it as a business to which it�s worth associating.
KNPL lends a helping hand to the society in which it operates, in the areas of health, education, environment preservation and community development. The Corporate Social Responsibility (CSR) programs taken up by KNPL are pertinent in the current scenario and have been supported by employee volunteers at different locations wherever viable. Employee involvement in these initiatives is bene�cial as it builds up a positive image for the company, and creates a sense of pride amongst them.
Management Commitment and Support
The Company has constituted a CSR committee consisting of independent and non independent directors with majority being independent. The CSR Committee with the help of other Directors and Vice Presidents and Senior Management personnel, set the direction and framework for the CSR programme. They lead by example through their participation in the programmes, and encourage participation amongst employees.
CSR Process
In the beginning of �nancial year, the Annual plan of the CSR initiatives is �nalized. The plan covers details of all the activities to be carried out along our key focus areas � Preventive healthcare and sanitation, Promoting education, Community development, Environmental sustainability and Livelihood enhancement. The activities are evaluated for its relevance and a budget/ schedule is assigned. The locations and corporate of�ce carry out the planned programs in the scheduled quarter by involving external agencies or on their own. The activities are reviewed periodically and are documented after completion.
Our focus areas for CSR programs
Themes/Areas of CSR activity
APreventive Health Care and SanitationThe objective is to provide facilities that improve general health condition & sanitation of the general masses, particularly people residing in the vicinity of our plants and the Painters.
B Promoting EducationOur goal is to encourage & support educational institutes to meet their requirements. We also try to focus on educating girl child & children residing in nearby villages in the vicinity of our manufacturing units.
C Rural / Community Development Our goal is to provide basic facilities to the community settled in the vicinity so as to improve their basic living thereby ful�lling the role of being a good Corporate Citizen.
D Ensuring Environmental Sustainability It is our continuous endeavour to support preservation of resources like water & the green cover and provide clean environment.
E Livelihood Enhancement Programs are undertaken to impart skill development Training, including on Paints and Painting to unemployed youth to create Job opportunities.
Kansai Nerolac Paints Sustainability Report 2015 52
Program wise CSR details 2014-15
Sr. No.
CSR Project/Activity Sector in which Project is covered
Location of Projects / Programs
Amount Outlay
(Budget) Project or
Program Wise
(` in Lacs)
Actual Amount
Spent on the Projects or Programs (` in Lacs)
Cumulative Expenditure
Upto the Reporting
Period (` in Lacs)
Actual Amount
Spent : Direct or Through
Agency (` in Lacs)
Programme on environment for school students
Ensuring Environmental Sustainability
Bawal 0.50 0.41 0.41
2. Green Belt off the highway and approach road to the lote plant
Ensuring Environmental Sustainability
Lote 10.00 0.00 0.00
3. Roundana Beutication (2 Nos.)
Ensuring Environmental Sustainability
Hosur 8.00 8.10 8.10
Sub-total 18.50 8.51 8.51
1. Training on Painting (At SBI Trg. Centre, Kendrapada)
Livelihood Enhancement Program
HO 5.00 0.47 0.47
2. With MITCON. Training on Painting
Livelihood Enhancement Program
HO 30.00 6.62 6.62
Sub-total 35.00 7.09 7.09
1. Borewell Preventive Health Care & Sanitation
Bawal 3.00 2.45 2.45
2. Toilet facilities Preventive Health Care & Sanitation
Bawal 4.00 2.29 2.29
3. Health Check up (Eye Camp)
Preventive Health Care & Sanitation
Bawal 1.00 0.90 0.90
4. Borewell Preventive Health Care & Sanitation
Lote 2.00 1.70 1.70
5. Medical Camps Preventive Health Care & Sanitation
Lote 2.00 1.79 1.79
6. Health Camps Preventive Health Care & Sanitation
Hosur 2.00 0.67 0.67
7. Health Camps Preventive Health Care & Sanitation
Jainpur 2.00 1.47 1.47 1.47
8. Medical Camps at Depots
Preventive Health Care & Sanitation
HO 35.00 25.48 25.48 25.48
9. Aid to Shanmukhanand Medical Centre- for Dialysis and Eye care
Preventive Health Care & Sanitation
HO 20.00 20.00 20.00 20.00
10. Free Eye Surgeries and running of hospital
Preventive Health Care & Sanitation
Sankara Nethralaya–Chennai & South India
100.00 75.00 75.00 75.00
11. Jeevanjyoti The Healing Touch Project
Preventive Health Care & Sanitation
Dr. Hedgewar Rugnalaya, Aurangabad – Maharashtra State
100.00 75.00 75.00 75.00
Sub-total 271.00 206.75 206.75 206.75
A. 1.
B.
C.
0.41
0.00
8.10
8.51
0.47
6.62
7.09
2.45
2.29
0.90
1.70
1.79
0.67
Kansai Nerolac Paints Sustainability Report 2015 53
Implementing Agencies for CSR activities:� Smile Foundation� MITCON Consultancy & Engineering Services� State Bank of India � Odisha [Lead Bank and Regional Rural Bank Development Local HO]� Sachetan Society for Research [Bawal]� Vishwakalyan Arogya Kendra [Lote]� Lioness Club of Chiplun [Lote]� Arogya Seva Hospital [Hosur]� PVK Constructions Limited [Hosur]� Aakriti Civil Constructions Limited [Lote]� Chemfab Engineering [Bawal]
Sr. No.
CSR Project/Activity Sector in which Project is covered
Location of Projects / Programs
Amount Outlay
(Budget) Project or
Program Wise
(` in Lacs)
Actual Amount
Spent on the Projects or Programs (` in Lacs)
Cumulative Expenditure
Upto the Reporting
Period (` in Lacs)
Actual Amount
Spent : Direct or Through
Agency (` in Lacs)
1. Computer Lab/Science Lab/Library
Promoting Education Bawal 3.00 2.56 2.56 2.56
2. Construction of a School room
Promoting Education Lote 10.00 10.00 10.00 10.00
3. Science Lab, equipments to schools
Promoting Education Lote 5.00 5.05 5.05 5.05
4. Project e-Teach. English Learning for Govt. School Students
Promoting Education HO 1.00 1.00 1.00 1.00
Sub-total 19.00 18.61 18.61 18.61
1. Bus Shelter Rural Development / Community Development
Bawal 4.00 3.04 3.04 3.04
2. Bus Shelter in Awashi Rural Development / Community Development
Lote 4.00 0.28 0.28 0.28
3. Road Repair in nearby viscinity
Rural Development / Community Development
Jainpur 73.50 73.78 73.78 73.78
4. Eradicating hunger and malnutrition — J&K
Rural Development / Community Development
HO 60.00 57.79 57.79 57.79
5. Integrated Rural Development Project
Rural Development / Community Development
Bhansali Trust, Mumbai – all over India
100.00 75.00 75.00 75.00
Sub-total 241.50 209.89 209.89 209.89
585.00 450.85 450.85 450.85
E.
D.
Kansai Nerolac Paints Sustainability Report 2015 54
Snapshots of Corporate Social Responsibility at KNPL
Training to unemployed youth in Kendrapada, Odisha Roundana beauti�cation project in the vicinity of Hosur plant
Distribution of Computers and Lab equipments to schools at Lote
Environmental awareness workshop for students of school near Bawal
Bus shelter for passengers at Rewari�s most busiest circle �Nai wali chowk�
Kansai Nerolac Paints Sustainability Report 2015 55
All employees are checked for background details and ensured that child labours are not employed. There is no risk of forced or compulsory labour with respect to any of our manufacturing facility. All new joinees are given training on KNPL code of conduct as well as whistle blower policy. All KNPL policies regarding code of conduct and ethics have been well communicated through HRSCAPES portal.
KNPL is an equal opportunity employer and there have not been any incidents of discrimination in KNPL. KNPL encourages freedom of association and collective bargaining. All of our KNPL plants have labour unions to facilitate collective bargaining process. All operators are covered by collective bargaining agreement. There have not been any grievances regarding human rights impacts �led at any of KNPL locations. There have not been any incidents of violation of rights of indigenous people.
Human Rights
In case of decorative products, KNPL has been promoting health impacts of paint in market to make customers aware of precautionary measures to be taken while choosing and applying paint. KNPL has pioneered �Healthy Home Paints� concept. It has voluntarily removed heavy metals like lead from its formulation to make products eco friendly. Since last few years, KNPL products have been recognized as low VOC paints in market.
For product information and labeling we are complying with Legal Metrology (Packaging) Rules, 2011. Other than the basic requirements stipulated in these rules, we also provide following product related information to our customers.
Content, with regard to substances that might produce an environmental/Social impactsSafe use of ProductEnvironmental/ Social impact of product
KNPL follows guidelines provided by �The Advertising Standard Council of India� for its marketing communications voluntarily. In case of Industrial products, Material Safety Data sheets are provided to all Industrial paint customers. These MSDS meet REACH guidelines and other regulatory norms. It includes suf�cient information on safe handling of materials and steps to be followed in case of emergency situations. All �nished products are appropriately labeled with health and safety precautionary information and its disposal methods as per applicable norms.
To track customer satisfaction, KNPL conducts customer feedback survey to measure customer satisfaction. Customer survey results helps to understand customer needs and expectations. Customer survey is conducted by a professional agency.
There have not been any incidents of non compliance with regulations and voluntary codes concerning product and service information and labeling. KNPL is in strict compliance with legislations related to product formulations and sale of banned products. No �nes or penalties are incurred considering KNPL compliance with all legislation related to products and services. In last �nancial year, there have not been any complaints regarding breach of customer privacy and losses of customer data.
Product Responsibility
Kansai Nerolac Paints Sustainability Report 2015 56
Membership
Some of the important memberships of KNPL:
National Safety Council
Indian Chemical Council
Labour law Reporter
Indian Paint Association
Bombay Stock Exchange
Basix Forex and Financial
Indian Material Management
Company Law Institute of India
Bombay Management Association
Confederation of Indian Industries
The Employers Federation of India
Business performance Measurement
National Securities Depository limited
Society of Indian Automobile Institute
Industrial Waste management Association
Institute of Company Secretaries of India-CCGRT
National Association of Corrosion Engineers (NACE)
The Society for Protective Coatings (SSPC)
Kansai Nerolac Paints Sustainability Report 2015 57
GR
I Ind
ex
4-21
For
eac
h m
ater
ial A
spec
t, re
port
the
Asp
ect B
ound
ary
outs
ide
the
orga
niza
tion
30-3
1
4-22
Rep
ort t
he e
ffect
of a
ny r
esta
tem
ents
of i
nfor
mat
ion
prov
ided
in p
revi
ous
repo
rts,
and
the
reas
ons
for
such
res
tate
men
ts.
12 12
GR
I Par
amet
er
Om
issi
on
GR
I Gu
idel
ines
Sta
tem
ent f
rom
the
mos
t sen
ior
deci
sion
-mak
er o
f the
org
aniz
atio
n
Des
crip
tion
of k
ey im
pact
s, r
isks
, and
opp
ortu
nitie
s.
Nam
e of
the
orga
niza
tion.
Prim
ary
bran
ds, p
rodu
cts,
and
/or
serv
ices
.
Loca
tion
of o
rgan
izat
ion'
s he
adqu
arte
rs.
Org
aniz
atio
nal
Pro
�le
4-1
4-2
4-3
4-4
4-5
Str
ateg
y an
d A
nal
ysis
Gen
eral
Sta
ndar
d D
iscl
osur
e
Num
ber
of c
ount
ries
whe
re th
e or
gani
zatio
n op
erat
es, a
nd n
ames
of c
ount
ries
with
eith
er m
ajor
ope
ratio
ns o
r th
at a
re
spec
i�ca
lly r
elev
ant t
o th
e su
stai
nabi
lity
issu
es c
over
ed in
the
repo
rt.
4-6
Nat
ure
of o
wne
rshi
p an
d le
gal f
orm
.
Mar
kets
ser
ved
(incl
udin
g ge
ogra
phic
bre
akdo
wn,
sec
tors
ser
ved,
and
type
s of
cus
tom
ers/
bene
�cia
ries)
.
4-7
4-8
Sca
le o
f the
rep
ortin
g or
gani
zatio
n.
Rep
ort t
otal
No.
of e
mpl
oyee
s an
d em
ploy
ee ty
pes
Rep
ort t
he p
erce
ntag
e of
tota
l em
ploy
ees
cove
red
by c
olle
ctiv
e ba
rgai
ning
agr
eem
ents
4-9
4-10
4-11
Des
crib
e th
e or
gani
zatio
n�s
supp
ly c
hain
.
Rep
ort a
ny s
igni
�can
t cha
nges
dur
ing
the
repo
rtin
g pe
riod
rega
rdin
g th
e or
gani
zatio
n�s
size
, str
uctu
re, o
wne
rshi
p, o
r its
sup
ply
chai
n
4-12
4-13
Pag
e N
o.
2-3
20-2
3
2 6-9
12 12 12 6-9
12 45 49 14 12
List
all
entit
ies
incl
uded
in th
e or
gani
zatio
n�s
cons
olid
ated
�na
ncia
l sta
tem
ents
or
equi
vale
nt d
ocum
ents
.
Iden
ti�
ed M
ater
ial A
spec
ts a
nd
Bo
un
dar
ies
4-17
List
ext
erna
lly d
evel
oped
eco
nom
ic, e
nviro
nmen
tal a
nd s
ocia
l cha
rter
s, p
rinci
ples
, or
othe
r in
itiat
ives
to w
hich
the
orga
niza
tion
subs
crib
es o
r w
hich
it e
ndor
ses.
List
mem
bers
hips
of a
ssoc
iatio
ns (
such
as
indu
stry
ass
ocia
tions
) an
d na
tiona
l or
inte
rnat
iona
l adv
ocac
y or
gani
zatio
ns in
w
hich
the
orga
niza
tion
4-15
4-16
56 56 12
4-18
4-19
4-20
A)
Exp
lain
the
proc
ess
for
de�n
ing
the
repo
rt c
onte
nt a
nd th
e A
spec
t Bou
ndar
ies.
B)
Exp
lain
how
the
orga
niza
tion
has
impl
emen
ted
the
Rep
ortin
g P
rinci
ples
for
De�
ning
Rep
ort C
onte
nt.
List
all
the
mat
eria
l Asp
ects
iden
ti�ed
in th
e pr
oces
s fo
r de
�nin
g re
port
con
tent
.
- F
or e
ach
mat
eria
l Asp
ect,
repo
rt th
e A
spec
t Bou
ndar
y w
ithin
the
orga
niza
tion
- R
epor
t any
spe
ci�c
lim
itatio
n re
gard
ing
the
Asp
ect B
ound
ary
with
in th
e or
gani
zatio
n
12
30-3
1
30-3
1
Rep
ort w
heth
er a
nd h
ow th
e pr
ecau
tiona
ry a
ppro
ach
or p
rinci
ple
is a
ddre
ssed
by
the
orga
niza
tion
4-14
19
Kansai Nerolac Paints Sustainability Report 2015 58
4-27
Rep
ort k
ey to
pics
and
con
cern
s th
at h
ave
been
rai
sed
thro
ugh
stak
ehol
der
enga
gem
ent,
and
how
the
orga
niza
tion
has
resp
onde
d to
thos
e ke
y to
pics
and
con
cern
s, in
clud
ing
thro
ugh
its r
epor
ting.
Rep
ort t
he s
take
hold
er g
roup
s th
at r
aise
d ea
ch
of th
e ke
y to
pics
and
con
cern
s.
24-2
9
4-28
4-29
4-30
4-31
Rep
ort
Pro
�le
Rep
ortin
g pe
riod
(suc
h as
�sc
al o
r ca
lend
ar y
ear)
for
info
rmat
ion
prov
ided
Dat
e of
mos
t rec
ent p
revi
ous
repo
rt (
if an
y).
Rep
ortin
g cy
cle
(suc
h as
ann
ual,
bien
nial
).
Pro
vide
the
cont
act p
oint
for
ques
tions
reg
ardi
ng th
e re
port
or
its c
onte
nts.
12 12 12 12
4-32
"Rep
ort t
he �i
n ac
cord
ance
� opt
ion
the
orga
niza
tion
has
chos
en.
b. R
epor
t the
GR
I Con
tent
Inde
x fo
r th
e ch
osen
opt
ion
(see
tabl
es b
elow
).c.
Rep
ort t
he r
efer
ence
to th
e E
xter
nal A
ssur
ance
Rep
ort"
12
Gov
ern
ance
4-33
Rep
ort t
he o
rgan
izat
ion�
s po
licy
and
curr
ent p
ract
ice
with
reg
ard
to s
eeki
ng e
xter
nal a
ssur
ance
for
the
repo
rt.
4-34
�Rep
ort t
he g
over
nanc
e st
ruct
ure
of th
e or
gani
zatio
n, in
clud
ing
com
mitt
ees
of th
e hi
ghes
t gov
erna
nce
body
.Iden
tify
any
com
mitt
ees
resp
onsi
ble
for
deci
sion
-mak
ing
on e
cono
mic
, env
ironm
enta
l and
soc
ial i
mpa
cts.
"
4-38
Rep
ort t
he c
ompo
sitio
n of
the
high
est g
over
nanc
e bo
dy a
nd it
s co
mm
ittee
s
4-41
Rep
ort p
roce
sses
for
the
high
est g
over
nanc
e bo
dy to
ens
ure
con�
icts
of i
nter
est a
re a
void
ed a
nd m
anag
ed.
4-42
Rep
ort t
he h
ighe
st g
over
nanc
e bo
dy�s
and
sen
ior
exec
utiv
es� r
oles
in th
e de
velo
pmen
t, ap
prov
al, a
nd u
pdat
ing
of th
e or
gani
zatio
n�s
purp
ose,
val
ue o
r m
issi
on s
tate
men
ts, s
trat
egie
s, p
olic
ies,
and
goa
ls r
elat
ed to
eco
nom
ic, e
nviro
nmen
tal
and
soci
al im
pact
s.
17-1
9
17
4-35
Rep
ort t
he p
roce
ss fo
r de
lega
ting
auth
ority
for
econ
omic
, env
ironm
enta
l and
soc
ial t
opic
s fr
om th
e hi
ghes
t gov
erna
nce
body
to s
enio
r ex
ecut
ives
and
oth
er e
mpl
oyee
s34
,36,
51
4-36
Rep
ort w
heth
er th
e or
gani
zatio
n ha
s ap
poin
ted
an e
xecu
tive-
leve
l pos
ition
or
posi
tions
with
res
pons
ibili
ty fo
r ec
onom
ic,
envi
ronm
enta
l and
soc
ial t
opic
s, a
nd w
heth
er p
ost h
olde
rs r
epor
t dire
ctly
to th
e hi
ghes
t gov
erna
nce
body
.17
, 34,
36,5
1
4-37
Rep
ort p
roce
sses
for
cons
ulta
tion
betw
een
stak
ehol
ders
and
the
high
est g
over
nanc
e bo
dy o
n ec
onom
ic, e
nviro
nmen
tal a
nd
soci
al to
pics
. If c
onsu
ltatio
n is
del
egat
ed, d
escr
ibe
to w
hom
and
any
feed
back
pro
cess
es to
the
high
est g
over
nanc
e bo
dy.
34,3
6,51
17
4-39
Rep
ort w
heth
er th
e C
hair
of th
e hi
ghes
t gov
erna
nce
body
is a
lso
an e
xecu
tive
of�c
er (
and,
if s
o, h
is o
r he
r fu
nctio
n w
ithin
th
e or
gani
zatio
n�s
man
agem
ent a
nd th
e re
ason
s fo
r th
is a
rran
gem
ent)
.17
4-40
Rep
ort t
he n
omin
atio
n an
d se
lect
ion
proc
esse
s fo
r th
e hi
ghes
t gov
erna
nce
body
and
its
com
mitt
ees,
and
the
crite
ria
used
for
nom
inat
ing
and
sele
ctin
g hi
ghes
t gov
erna
nce
body
mem
bers
,17
17-1
9
12
GR
I Par
amet
er
GR
I Gu
idel
ines
Sta
keh
old
er E
ng
agem
ent
4-24
4-25
4-23
Pro
vide
a li
st o
f sta
keho
lder
gro
ups
enga
ged
by th
e or
gani
zatio
n
Rep
ort t
he b
asis
for
iden
ti�ca
tion
and
sele
ctio
n of
sta
keho
lder
s w
ith w
hom
to e
ngag
e
4-26
Rep
ort t
he o
rgan
izat
ion�
s ap
proa
ch to
sta
keho
lder
eng
agem
ent,
incl
udin
g fr
eque
ncy
of e
ngag
emen
t by
type
and
by
stak
ehol
der
grou
p, a
nd a
n in
dica
tion
of w
heth
er a
ny o
f the
eng
agem
ent w
as u
nder
take
n sp
eci�
cally
as
part
of t
he r
epor
t pr
epar
atio
n pr
oces
s.
24-2
9
Rep
ort s
igni
�can
t cha
nges
from
pre
viou
s re
port
ing
perio
ds in
the
Sco
pe a
nd A
spec
t Bou
ndar
ies
Om
issi
on
Pag
e N
o.
24-2
9
24-2
9
GR
I Par
amet
er
Om
issi
on
GR
I Gu
idel
ines
P
age
No
.
Rep
ort t
he fr
eque
ncy
of th
e hi
ghes
t gov
erna
nce
body
�s r
evie
w o
f eco
nom
ic, e
nviro
nmen
tal a
nd s
ocia
l im
pact
s, r
isks
an
d op
port
uniti
es
Rep
ort t
he h
ighe
st c
omm
ittee
or
posi
tion
that
form
ally
rev
iew
s an
d ap
prov
es th
e or
gani
zatio
n�s
sust
aina
bilit
y re
port
and
en
sure
s th
at a
ll m
ater
ial A
spec
ts a
re c
over
ed
Rep
ort t
he p
roce
ss fo
r co
mm
unic
atin
g cr
itica
l con
cern
s to
the
high
est g
over
nanc
e bo
dy
Rep
ort t
he n
atur
e an
d to
tal n
umbe
r of
crit
ical
con
cern
s th
at w
ere
com
mun
icat
ed to
the
high
est g
over
nanc
e bo
dy a
nd th
e m
echa
nism
(s)
used
to a
ddre
ss a
nd r
esol
ve th
em.
Rep
ort t
he r
emun
erat
ion
polic
ies
for
the
high
est g
over
nanc
e bo
dy a
nd s
enio
r ex
ecut
ives
Rep
ort h
ow s
take
hold
ers�
vie
ws
are
soug
ht a
nd ta
ken
into
acc
ount
reg
ardi
ng r
emun
erat
ion,
incl
udin
g th
e re
sults
of v
otes
on
rem
uner
atio
n po
licie
s an
d pr
opos
als,
If a
pplic
able
.
Rep
ort t
he r
atio
of t
he a
nnua
l tot
al c
ompe
nsat
ion
for
the
orga
niza
tion�
s hi
ghes
t-pa
id in
divi
dual
in e
ach
coun
try
of s
igni
�can
t op
erat
ions
to th
e m
edia
n an
nual
tota
l com
pens
atio
n fo
r al
l em
ploy
ees
(exc
ludi
ng th
e hi
ghes
t-pa
id in
divi
dual
) in
the
sam
e co
untr
y
Rep
ort t
he r
atio
of p
erce
ntag
e in
crea
se in
ann
ual t
otal
com
pens
atio
n fo
r th
e or
gani
zatio
n�s
high
est-
paid
indi
vidu
al in
eac
h co
untr
y of
sig
ni�c
ant o
pera
tions
to th
e m
edia
n pe
rcen
tage
incr
ease
in a
nnua
l tot
al c
ompe
nsat
ion
for
all e
mpl
oyee
s (e
xclu
ding
the
high
est-
paid
indi
vidu
al)
in th
e sa
me
coun
try.
Des
crib
e th
e or
gani
zatio
n�s
valu
es, p
rinci
ples
, sta
ndar
ds a
nd n
orm
s of
beh
avio
r su
ch a
s co
des
of c
ondu
ct a
nd c
odes
of e
thic
s.
Rep
ort t
he in
tern
al a
nd e
xter
nal m
echa
nism
s fo
r se
ekin
g ad
vice
on
ethi
cal a
nd la
wfu
l beh
avio
r, an
d m
atte
rs r
elat
ed to
or
gani
zatio
nal i
nteg
rity,
suc
h as
hel
plin
es o
r ad
vice
line
s.
4-47
4-48
4-49
4-50
4-51
4-53
4-54
4-55
4-56
4-57
Eth
ics
and
Inte
rgri
ty
17-1
9
12
17-1
9
Not
Rep
orte
d
17
Rep
ort t
he p
roce
ss fo
r de
term
inin
g re
mun
erat
ion.
Rep
ort w
heth
er r
emun
erat
ion
cons
ulta
nts
are
invo
lved
in d
eter
min
ing
rem
uner
atio
n an
d w
heth
er th
ey a
re in
depe
nden
t of m
anag
emen
t. R
epor
t any
oth
er r
elat
ions
hips
whi
ch th
e re
mun
erat
ion
cons
ulta
nts
have
with
the
orga
niza
tion.
4-52
17 17
Not
Rep
orte
d
Not
Rep
orte
d
18-2
1
18-2
1
Rep
ort t
he in
tern
al a
nd e
xter
nal m
echa
nism
s fo
r re
port
ing
conc
erns
abo
ut u
neth
ical
or
unla
wfu
l beh
avio
r, an
d m
atte
rs r
elat
ed
to o
rgan
izat
iona
l int
egrit
y, s
uch
as e
scal
atio
n th
roug
h lin
e m
anag
emen
t, w
hist
lebl
owin
g m
echa
nism
s or
hot
lines
.4-
5818
-21
4-44
4-45
4-46
Rep
ort t
he p
roce
sses
for
eval
uatio
n of
the
high
est g
over
nanc
e bo
dy�s
per
form
ance
and
Rep
ort a
ctio
ns ta
ken
in r
espo
nse
to e
valu
atio
n of
the
high
est g
over
nanc
e bo
dy�s
per
form
ance
Rep
ort t
he h
ighe
st g
over
nanc
e bo
dy�s
rol
e in
the
iden
ti�ca
tion
and
man
agem
ent o
f eco
nom
ic, e
nviro
nmen
tal a
nd s
ocia
l im
pact
s, r
isks
, and
opp
ortu
nitie
s. In
clud
e th
e hi
ghes
t gov
erna
nce
body
�s r
ole
in th
e im
plem
enta
tion
of d
ue d
ilige
nce
proc
esse
s.
Rep
ort t
he h
ighe
st g
over
nanc
e bo
dy�s
rol
e in
rev
iew
ing
the
effe
ctiv
enes
s of
the
orga
niza
tion�
s ris
k m
anag
emen
t pro
cess
es
for
econ
omic
, env
ironm
enta
l and
soc
ial t
opic
s.
4-43
Rep
ort t
he m
easu
res
take
n to
dev
elop
and
enh
ance
the
high
est g
over
nanc
e bo
dy�s
col
lect
ive
know
ledg
e of
eco
nom
ic,
envi
ronm
enta
l and
soc
ial t
opic
s.17
-19
17-1
9
17 17
Kansai Nerolac Paints Sustainability Report 2015 59
Spe
ci�c
Sta
ndar
d D
iscl
osur
e
Mat
eria
l Asp
ects
O
mis
sio
ns
Eco
no
mic
Ind
icat
ors
Eco
nom
ic P
erfo
rman
ce
Eco
nom
ic P
erfo
rman
ce
Mar
ket P
rese
nce
Pro
cure
men
t pra
ctic
es
Eco
nom
ic P
erfo
rman
ce
Eco
nom
ic P
erfo
rman
ce
Not
rep
orte
d
Mar
ket P
rese
nce
Indi
rect
Eco
nom
ic im
pact
s
Indi
rect
Eco
nom
ic im
pact
s
Env
iro
nm
enta
l In
dic
ato
rs
Fin
anci
al im
plic
atio
ns a
nd o
ther
ris
ks a
nd o
ppor
tuni
ties
for
the
orga
niza
tion'
s ac
tiviti
es d
ue to
cl
imat
e ch
ange
.
Cov
erag
e of
the
orga
niza
tion'
s de
�ned
ben
e�t p
lan
oblig
atio
ns.
Sig
ni�c
ant �
nanc
ial a
ssis
tanc
e re
ceiv
ed fr
om g
over
nmen
t.
Pro
port
ion
of s
enio
r m
anag
emen
t hire
d fr
om th
e lo
cal c
omm
unity
at s
igni
�can
t loc
atio
ns o
f op
erat
ions
Pro
port
ion
of s
pend
ing
on lo
cal s
uppl
iers
at s
igni
�can
t loc
atio
ns o
f ope
ratio
n
Des
crip
tio
n
Dire
ct e
cono
mic
val
ue g
ener
ated
and
dis
trib
uted
, inc
ludi
ng r
even
ues,
ope
ratin
g co
sts,
em
ploy
ee c
ompe
nsat
ion,
don
atio
ns a
nd o
ther
com
mun
ity in
vest
men
ts, r
etai
ned
earn
ings
, an
d pa
ymen
ts to
cap
ital p
rovi
ders
and
gov
ernm
ents
.
Ran
ge o
f rat
ios
of s
tand
ard
entr
y le
vel w
age
com
pare
d to
loca
l min
imum
wag
e at
sig
ni�c
ant
loca
tions
of o
pera
tion.
Dev
elop
men
t and
impa
ct o
f inf
rast
ruct
ure
inve
stm
ents
and
ser
vice
s pr
ovid
ed
prim
arily
for
publ
ic b
ene�
t thr
ough
com
mer
cial
, in-
kind
, or
pro
bono
eng
agem
ent.
Und
erst
andi
ng a
nd d
escr
ibin
g si
gni�
cant
indi
rect
eco
nom
ic im
pact
s, in
clud
ing
the
exte
nt
of im
pact
s.
Mat
eria
ls u
sed
by w
eigh
t or
volu
me.
Per
cent
age
of m
ater
ials
use
d th
at a
re r
ecyc
led
inpu
t mat
eria
ls.
Ene
rgy
cons
umpt
ion
with
in th
e or
gani
zatio
n.
Ene
rgy
Con
sum
ptio
n ou
tsid
e of
the
orga
nisa
tion
Ene
rgy
Inte
nsity
Red
uctio
n of
Ene
rgy
cons
umpt
ion
Red
uctio
n in
ene
rgy
requ
irem
ents
of p
rodu
cts
or s
ervi
ces
Tota
l wat
er w
ithdr
awal
by
sour
ce.
Wat
er s
ourc
es s
igni
�can
tly a
ffect
ed b
y w
ithdr
awal
of w
ater
.
Mat
eria
ls
Mat
eria
ls
Ene
rgy
Ene
rgy
Ene
rgy
Ene
rgy
Ene
rgy
Wat
er
Wat
er
GR
I P
aram
eter
EC
1
EC
2
EC
3
EC
4
EC
6
EC
9
EC
5
EC
7
EC
8
EN
1
EN
2
EN
3
EN
4
EN
5
EN
6
EN
7
EN
8
EN
9
Pag
e N
o.
3333 34 55 55
52-5
3
52-5
3
34 34 34 41
40-4
2
41
40-4
2
40-4
2
37 37
Per
cent
age
and
tota
l vol
ume
of w
ater
rec
ycle
d an
d re
used
.
Hab
itats
pro
tect
ed o
r re
stor
ed.
Ope
ratio
nal s
ites
owne
d, le
ased
, man
aged
in, o
r ad
jace
nt to
, pro
tect
ed a
reas
and
are
as
of h
igh
biod
iver
sity
val
ues
outs
ide
prot
ecte
d ar
eas
Des
crip
tion
of s
igni
�can
t im
pact
s of
act
iviti
es, p
rodu
cts,
and
ser
vice
s on
bio
dive
rsity
in
prot
ecte
d ar
eas
and
area
s of
hig
h bi
odiv
ersi
ty v
alue
out
side
pro
tect
ed a
reas
.
Wat
er
Bio
dive
rsity
Bio
dive
rsity
Bio
dive
rsity
EN
10
EN
13
EN
11
EN
12
37 43 43 43
Kansai Nerolac Paints Sustainability Report 2015 60
Om
issi
on
sD
escr
ipti
on
M
ater
ial A
spec
ts
GR
I P
aram
eter
P
age
No
.
Num
ber
of IU
CN
Red
Lis
t spe
cies
and
nat
iona
l con
serv
atio
n lis
t spe
cies
with
hab
itats
in a
reas
af
fect
ed b
y op
erat
ions
, by
leve
l of e
xtin
ctio
n ris
k.
Dire
ct G
HG
Em
issi
ons
(Sco
pe 1
)
Ene
rgy
Indi
rect
GH
G E
mis
sion
(S
cope
2)
Oth
er In
dire
ct G
HG
Em
issi
on (
Sco
pe 3
)
GH
G E
mis
sion
inte
nsity
Red
uctio
n of
GH
G E
mis
sion
Em
issi
ons
of o
zone
-dep
letin
g su
bsta
nces
by
wei
ght.
NO
x, S
Ox,
and
oth
er s
igni
�can
t air
emis
sion
s by
type
and
wei
ght.
Tota
l wat
er d
isch
arge
by
qual
ity a
nd d
estin
atio
n.
Tota
l wei
ght o
f was
te b
y ty
pe a
nd d
ispo
sal m
etho
d.
Tota
l num
ber
and
volu
me
of s
igni
�can
t spi
lls.
Wei
ght o
f tra
nspo
rted
, im
port
ed, e
xpor
ted,
or
trea
ted
was
te d
eem
ed h
azar
dous
und
er th
e te
rms
of th
e B
asel
Con
vent
ion
Ann
ex I,
II, I
II, a
nd V
III, a
nd p
erce
ntag
e of
tran
spor
ted
was
te
ship
ped
inte
rnat
iona
lly.
Iden
tity,
siz
e, p
rote
cted
sta
tus,
and
bio
dive
rsity
val
ue o
f wat
er b
odie
s an
d re
late
d ha
bita
ts
sign
i�ca
ntly
affe
cted
by
the
repo
rtin
g or
gani
zatio
n's
disc
harg
es o
f wat
er a
nd r
unof
f.
Bio
dive
rsity
Em
issi
ons
Em
issi
ons
Em
issi
ons
Em
issi
ons
Em
issi
ons
Em
issi
ons
Em
issi
ons
Ef�
uent
s an
d w
aste
Ef�
uent
s an
d w
aste
Ef�
uent
s an
d w
aste
Ef�
uent
s an
d w
aste
Ef�
uent
s an
d w
aste
EN
14
EN
15
EN
16
EN
17
EN
18
EN
19
EN
20
EN
21
EN
22
EN
23
EN
24
EN
25
EN
26
43 43 43 43 43 43 43 38 38 39 39 39 39
Ext
ent o
f Im
pact
miti
gatio
n of
env
ironm
enta
l im
pact
s of
pro
duct
s an
d se
rvic
es
Mon
etar
y va
lue
of s
igni
�can
t �ne
s an
d to
tal n
umbe
r of
non
-mon
etar
y sa
nctio
ns fo
r no
n-co
mpl
ianc
e w
ith e
nviro
nmen
tal l
aws
and
regu
latio
ns.
Sig
ni�c
ant e
nviro
nmen
tal i
mpa
cts
of tr
ansp
ortin
g pr
oduc
ts a
nd o
ther
goo
ds a
nd m
ater
ials
us
ed fo
r th
e or
gani
zatio
n's
oper
atio
ns, a
nd tr
ansp
ortin
g m
embe
rs o
f the
wor
kfor
ce.
Tota
l env
ironm
enta
l pro
tect
ion
expe
nditu
res
and
inve
stm
ents
by
type
.
Per
cent
age
of n
ew s
uppl
iers
that
wer
e sc
eene
d us
ing
envi
ronm
enta
l crit
eria
Sig
ni�c
ant a
ctua
l and
pot
entia
l neg
ativ
e en
viro
nmen
tal i
mpa
cts
in th
e su
pply
cha
in a
nd a
ctio
n ta
ken
Num
ber
of g
rieva
nces
abo
ut e
nviro
nmen
tal i
mpa
cts
�led
, add
ress
ed, a
nd r
esol
ved
thro
ugh
form
al g
ieva
nce
mec
hani
sms
Pro
duct
s an
d se
rvic
es
Com
plia
nce
Tran
spor
t
Ove
rall
Sup
plie
r E
nviro
nmen
t A
sses
smen
t
Sup
plie
r E
nviro
nmen
t A
sses
smen
t
Env
ironm
enta
l gie
vanc
e m
echa
nism
s
EN
27
EN
29
EN
30
EN
31
EN
32
EN
33
EN
34
Per
cent
age
of p
rodu
cts
sold
and
thei
r pa
ckag
ing
mat
eria
ls th
at a
re r
ecla
imed
by
cate
gory
. P
rodu
cts
and
serv
ices
EN
28N
ot r
epor
ted
Not
rep
orte
d
Not
rep
orte
d
Not
rep
orte
d
Not
rep
orte
d
39 39 39
Per
cent
age
and
tota
l num
ber
of s
igni
�can
t inv
estm
ent a
gree
men
ts th
at in
clud
e hu
man
rig
hts
clau
ses
or th
at h
ave
unde
rgon
e hu
man
rig
hts
scre
enin
g.
HR
1In
vest
men
tN
ot r
epor
ted
Tota
l hou
rs o
f em
ploy
ee tr
aini
ng o
n po
licie
s an
d pr
oced
ures
con
cern
ing
aspe
cts
of h
uman
rig
hts
that
are
rel
evan
t to
oper
atio
ns, i
nclu
ding
the
perc
enta
ge o
f em
ploy
ees
trai
ned.
H
R2
Inve
stm
ent
48
Hu
man
Rig
hts
Ind
icat
ors
Kansai Nerolac Paints Sustainability Report 2015 61
Mat
eria
l Asp
ects
G
RI
Par
amet
er
Des
crip
tio
n
Tota
l num
ber
of in
cide
nts
of d
iscr
imin
atio
n an
d ac
tions
take
n.
Ope
ratio
ns id
enti�
ed in
whi
ch th
e rig
ht to
exe
rcis
e fr
eedo
m o
f ass
ocia
tion
and
colle
ctiv
e ba
rga
inin
g m
ay b
e at
sig
ni�c
ant r
isk,
and
act
ions
take
n to
sup
port
thes
e rig
hts.
HR
3
HR
4
Non
Des
crim
inat
ion
Free
dom
of a
ssoc
iatio
n an
d co
llect
ive
barg
aini
ng
Ope
ratio
ns id
enti�
ed a
s ha
ving
sig
ni�c
ant r
isk
for
inci
dent
s of
chi
ld la
bour
, and
mea
sure
s ta
ken
to c
ontr
ibut
e to
the
elim
inat
ion
of c
hild
labo
ur.
HR
5C
hild
labo
ur
Ope
ratio
ns id
enti�
ed a
s ha
ving
sig
ni�c
ant r
isk
for
inci
dent
s of
forc
ed o
r co
mpu
lsor
y la
bour
, an
d m
easu
res
to c
ontr
ibut
e to
the
elim
inat
ion
of fo
rced
or
com
puls
ory
labo
ur.
HR
6F
orce
d or
Com
puls
ory
labo
ur
Per
cent
age
of n
ew s
uppl
iers
that
wer
e sc
reen
ed u
sing
hum
an r
ight
s cr
iteria
Sup
plie
r hu
man
rig
hts
asse
ssm
ent
HR
10
Per
cent
age
of s
ecur
ity p
erso
nnel
trai
ned
in th
e or
gani
zatio
n's
polic
ies
or p
roce
dure
s
conc
erni
ng a
spec
ts o
f hum
an r
ight
s th
at a
re r
elev
ant t
o op
erat
ions
. S
ecur
ity p
ract
ices
HR
7
Tota
l num
ber
of in
cide
nts
of v
iola
tions
invo
lvin
g rig
hts
of in
dige
nous
peo
ple
and
actio
ns ta
ken.
Indi
geno
us r
ight
sH
R8
Per
cent
age
and
tota
l num
ber
of o
pera
tions
that
hav
e be
en s
ubje
ct to
hum
an r
ight
s re
view
san
d/or
impa
ct a
sses
smen
ts.
Ass
essm
ent
HR
9
Sig
ni�c
ant a
ctua
l and
pot
entia
l neg
ativ
e hu
man
rig
hts
impa
cts
in th
e su
pply
cha
in a
nd a
ctio
nta
ken
Sup
plie
r hu
man
rig
hts
asse
ssm
ent
HR
11
Lab
ou
r P
ract
ices
Ind
icat
ors
Tota
l num
ber
of n
ew e
mpl
oyee
hire
s an
d em
ploy
ee tu
rnov
er b
y ag
e gr
oup,
gen
der
and
regi
onLA
1
Min
imum
not
ice
perio
d(s)
reg
ardi
ng s
igni
�can
t ope
ratio
nal c
hang
es, i
nclu
ding
whe
ther
it is
sp
eci�
ed in
col
lect
ive
agre
emen
ts.
Labo
ur/M
anag
emen
t re
latio
nsLA
4
Ben
e�t p
rovi
ded
to F
ull T
ime
empl
oyee
s th
at a
re n
ot p
rovi
ded
to T
empo
rary
or
Par
t tim
e em
ploy
ees,
by
sign
i�ca
nt lo
catio
ns o
f ope
ratio
nsE
mpl
oym
ent
LA2
Ret
urn
to w
ork
and
rete
ntio
n ra
tes
afte
r pa
rent
al le
ave,
by
gend
er.
Em
ploy
men
tLA
3
Per
cent
age
of to
tal w
orkf
orce
rep
rese
nted
in fo
rmal
join
t man
agem
ent-
wor
ker
heal
th a
nd
safe
ty c
omm
ittee
s th
at h
elp
mon
itor
and
advi
ce o
n oc
cupa
tiona
l hea
lth a
nd s
afet
y pr
ogra
ms.
O
ccup
atio
nal H
ealth
an
d sa
fety
LA5
Rat
es o
f inj
ury,
occ
upat
iona
l dis
ease
s, lo
st d
ays,
and
abs
ente
eism
, and
num
ber
of
wor
k-re
late
d fa
talit
ies
by r
egio
n.O
ccup
atio
nal H
ealth
an
d sa
fety
LA6
Wor
kers
with
hig
h in
cide
nce
or h
igh
risk
of d
isea
ses
rela
ted
to th
eir
occu
patio
nO
ccup
atio
nal H
ealth
an
d sa
fety
LA7
Om
issi
on
s
Not
rep
orte
d
Not
rep
orte
d
Not
rep
orte
d
Hea
lth a
nd s
afet
y to
pics
cov
ered
in fo
rmal
agr
eem
ents
with
trad
e un
ions
. O
ccup
atio
nal H
ealth
an
d sa
fety
LA8
Pag
e N
o.
48 55 55 55 48 55 55 55
Num
ber
of g
ieva
nces
abo
ut h
uman
rig
hts
impa
cts
�led
, add
ress
ed, a
nd r
esol
ved
thro
ugh
form
al g
rieva
nce
mec
hani
sms
Hum
an r
ight
s gr
ieva
nce
Mec
hani
sms
HR
1255 46
46
49 49 49 49
Kansai Nerolac Paints Sustainability Report 2015 62
Tota
l num
ber
of in
cide
nts
of n
on-c
ompl
ianc
e w
ith r
egul
atio
ns a
nd v
olun
tary
cod
es c
once
rnin
g m
arke
ting
com
mun
icat
ions
, inc
ludi
ng a
dver
tisin
g, p
rom
otio
n, a
nd s
pons
orsh
ip b
y ty
pe o
f ou
tcom
es.
Tota
l num
ber
of s
ubst
antia
ted
com
plai
nts
rega
rdin
g br
each
es o
f cus
tom
er p
rivac
y an
d lo
sses
of
cust
omer
dat
a.
Mon
etar
y va
lue
of s
igni
�can
t �ne
s fo
r no
n-co
mpl
ianc
e w
ith la
ws
and
regu
latio
ns c
once
rnin
g th
e pr
ovis
ion
and
use
of p
rodu
cts
and
serv
ices
.
Mar
ketin
g C
omm
unic
atio
ns
Cus
tom
er P
rivac
y
Com
plia
nce
PR
7
PR
8
PR
9
55 55 55
Des
crip
tio
n
Mat
eria
l Asp
ects
G
RI
Par
amet
er
Pag
e N
o.
Om
issi
on
s
Ave
rage
hou
rs o
f tra
inin
g pe
r ye
ar p
er e
mpl
oyee
by
empl
oyee
cat
egor
y.
Trai
ning
and
Edu
catio
nLA
949
Pro
gram
s fo
r sk
ills
man
agem
ent a
nd li
felo
ng le
arni
ng th
at s
uppo
rt th
e co
ntin
ued
empl
oyab
ility
of
em
ploy
ees
and
assi
st th
em in
man
agin
g ca
reer
end
ings
. Tr
aini
ng a
nd E
duca
tion
LA10
47
Per
cent
age
of e
mpl
oyee
s re
ceiv
ing
regu
lar
perf
orm
ance
and
car
eer
deve
lopm
ent r
evie
ws.
Trai
ning
and
Edu
catio
nLA
1147
Com
posi
tion
of g
over
nanc
e bo
dies
and
bre
akdo
wn
of e
mpl
oyee
s pe
r ca
tego
ry a
ccor
ding
to
gend
er, a
ge g
roup
, min
ority
gro
up m
embe
rshi
p, a
nd o
ther
indi
cato
rs o
f div
ersi
ty.
Div
ersi
ty a
nd e
qual
op
port
unity
LA12
17,4
5
Tota
l num
ber
of in
cide
nts
of n
on-c
ompl
ianc
e w
ith r
egul
atio
ns a
nd v
olun
tary
cod
es c
once
rnin
g he
alth
and
saf
ety
impa
cts
of p
rodu
cts
and
serv
ices
dur
ing
thei
r lif
e cy
cle,
by
type
of o
utco
mes
. C
usto
mer
Hea
lth
and
safe
tyP
R2
55
Type
of p
rodu
ct a
nd s
ervi
ce in
form
atio
n re
quire
d by
pro
cedu
res
and
perc
enta
ge o
f sig
ni�c
ant
prod
ucts
and
ser
vice
s su
bjec
t to
such
info
rmat
ion
requ
irem
ents
. P
rodu
ct a
nd s
ervi
ce
labe
ling
PR
355
Tota
l num
ber
of in
cide
nts
of n
on-c
ompl
ianc
e w
ith r
egul
atio
ns a
nd v
olun
tary
cod
es c
once
rnin
g pr
oduc
t and
ser
vice
info
rmat
ion
and
labe
lling
, by
type
of o
utco
mes
. P
rodu
ct a
nd s
ervi
ce
labe
ling
PR
455
Per
cent
age
of s
igni
�can
t pro
duct
and
ser
vice
for
whi
ch h
ealth
and
saf
ety
impa
cts
are
asse
ssed
fo
r im
prov
emen
t
Pro
du
ct R
esp
on
sib
ility
Ind
icat
ors
Cus
tom
er H
ealth
an
d sa
fety
PR
1
Rat
io o
f bas
ic s
alar
y of
men
to w
omen
by
empl
oyee
cat
egor
y, b
y si
gni�
cant
loca
tions
of o
pera
tion
Equ
al r
emun
erat
ion
for
wom
en a
nd m
enLA
1348
Per
cent
age
of n
ew s
uppl
iers
that
wer
e sc
reen
ed u
sing
labo
ur p
ract
ices
crit
eria
Sup
plie
r as
sess
men
t for
la
bour
pra
ctic
esLA
14N
ot r
epor
ted
Sig
ni�c
ant a
ctua
l and
pot
entia
l neg
ativ
e im
pact
for
labo
ur p
ract
ices
in th
e su
pply
cha
in a
nd
actio
n ta
ken
Sup
plie
r as
sess
men
t for
la
bour
pra
ctic
esLA
15N
ot r
epor
ted
Num
ber
of g
rieva
nces
abo
ut la
bour
pra
ctic
es �
eld,
add
ress
ed, a
nd r
esol
ved
thro
ugh
form
al
grie
vanc
e m
echa
nism
sLa
bour
pra
ctic
es g
rieva
nce
mec
hani
sms
LA16
Not
rep
orte
d
Not
rep
orte
d
Sal
e of
ban
ned
or d
ispu
ted
prod
ucts
Mar
ketin
g C
omm
unic
atio
nsP
R6
55
Res
ults
of s
urve
y m
easu
ring
cust
omer
sat
isfa
ctio
nP
rodu
ct a
nd s
ervi
ce la
belin
gP
R5
Not
rep
orte
d
Kansai Nerolac Paints Sustainability Report 2015 63
Kansai Nerolac Paints Sustainability Report 2015 64
Des
crip
tio
n
Mat
eria
l Asp
ects
G
RI
Par
amet
er
Pag
e N
o.
Om
issi
on
s
Per
cent
age
of o
pera
tions
with
impl
emen
ted
loca
l com
mun
ity e
ngag
emen
t, im
pact
ass
essm
ents
an
d de
velo
pmen
t pro
gram
s
Ind
icat
ors
- S
oci
ety
Loca
l Com
mun
ityS
O1
52-5
3
Ope
ratio
ns w
ith s
igni
�can
t pot
entia
l or
actu
al n
egat
ive
impa
cts
on lo
cal c
omm
uniti
es.
Loca
l Com
mun
ityS
O2
51-5
4
Per
cent
age
and
tota
l num
ber
of b
usin
ess
units
ana
lyze
d fo
r ris
ks r
elat
ed to
cor
rupt
ion.
A
nti C
orru
ptio
nS
O3
55
Com
mun
icat
ion
and
trai
ning
on
Ant
i-cor
rupt
ion
polic
ies
and
proc
edur
esA
nti C
orru
ptio
nS
O4
55
Con
�rm
ed in
cide
nts
of c
orru
ptio
n an
d ac
tion
take
nA
nti C
orru
ptio
nS
O5
55
Tota
l Val
ue o
f Pol
itica
l con
trib
utio
ns b
y co
untr
y an
d re
cipi
ent/B
ene�
ciar
yP
ublic
pol
icy
SO
6 34
Tota
l num
ber
of le
gal a
ctio
ns fo
r an
ti co
mpe
titiv
e be
havi
our,
anti
trus
t, an
d m
onop
oly
prac
tices
an
d th
eir
outc
omes
Ant
i Com
petit
ive
beha
viou
rS
O7
55
Mon
etar
y va
lue
of s
igni
�can
t �ne
s an
d to
tal n
umbe
r of
non
-mon
etar
y sa
nctio
ns fo
r no
n-co
mpl
ianc
e w
ith la
ws
and
regu
latio
ns.
Com
plia
nce
SO
855
Per
cent
age
of n
ew s
uppl
iers
that
wer
e sc
reen
ed u
sing
crit
eria
for
impa
cts
on s
ocie
tyS
uppl
ier
asse
ssm
ents
for
impa
cts
on s
ocie
tyS
O9
Not
rep
orte
d
Sig
ni�c
ant a
ctua
l and
pot
entia
l im
pact
s on
soc
iety
in th
e su
pply
cha
in a
nd a
ctio
n ta
ken
Sup
plie
r as
sess
men
ts fo
r im
pact
s on
soc
iety
S10
Not
rep
orte
d
Num
ber
of g
rieva
nces
abo
ut im
pact
s on
soc
iety
�le
d, a
ddre
ssed
, and
res
olve
d th
roug
h fo
rmal
gr
ieva
nce
mec
hani
smG
rieva
nce
mec
hani
sms
for
impa
cts
on s
ocie
tyS
11N
ot r
epor
ted