Building Resilience Presented by :- Ms. Pearl Tiwari CSR Conference, Sri Lanka October 3, 2014 1 © Ambuja Cements Ltd. 2011 Ambuja Cements • Is One of India’s leading cement manufacturers – today part of Holcim Group • Founded 28 years ago on principles of sustainability. • Current cement capacity : 27.25 million tons (grown 40 times in 28 years) • 5 integrated plants, 8 grinding units and 3 ports with packing plants. • The first in India to build a captive port with its own fleet of ships. • Home grown philosophy called I CAN - gives people the authority to set their targets and the freedom to achieve their goals. 2 © Ambuja Cements Ltd. 2011 Building resilience through our Vision • Leave no trace • To give back more than we take • To clear more than we pollute 3 © Ambuja Cements Ltd. 2011 : A special entity Mission: Energise, Involve and Enable Communities to Darlaghat Realise their Potential Outreach: • 22 locations Nalagarh Ropar Bathinda Chirawa Mundwa Roorkee Dadri Gandhinagar • 12 states • 14 lakhs Sankrail Rabriyawas Osara Ambujanagar Sanand Surat Farakka Chhindwara Bhatapara Chandrapur Nadikudi Panvel • 861 villages Professionally guided and run - 440 development professionals Kochi 4 © Ambuja Cements Ltd. 2011 The Model Company needs: Energy Land Water CO2 Neutrality AMBUJA Focus: Roadmap & KPIs ACF ACF has: Organization People Skills Close to Society SOCIETY Society needs: Livelihood / Quality of life Safe and clean environment Energy, land & water 5 © Ambuja Cements Ltd. 2011 CSR - Towards Sustainability Initial Stage - Adhoc community development projects - Demand driven Intermediate - More Strategic - Engagement of stakeholders - Current stage - Integrated in to sustainability Organizational structure - Monitoring and Impact (ROI) - Inclusive Business 6 © Ambuja Cements Ltd. 2011 Learning 1: Needs assessment is crucial • Whose need? Company Community • Prepare a strategy 7 © Ambuja Cements Ltd. 2011 CSR: A mind-set for sustainability Community Development Initiatives: Based on Needs Assessment Natural Resource Management - Water - Land - Health Livelihood - HIV & AIDS - Agro based - Education - Women & Youth - Skill Based - Infrastructure - Mason Training Business Sustainability • Company gets easy access to natural resources – license to operate neighborhood • Reduced pressure for employment on Company • Exploring CSV projects - Agro biomass for AFR Sanitation for All Spirulina for combating malnutrition Productive and economically secured • Project Affected People (PAPs) Human Development Skilled masons entering the • Healthier and more productive neighborhood • Better standard of Human • Business related and socially relevant • Gain reputation for building lives for PAPs. Development Index construction industry • Brand ambassadors for Ambuja Cements 8 9 © Ambuja Cements Ltd. 2011 Learning 2: Projects to be aligned with business E.g. 1: Water Sustainability Company does: Saves Water Company needs: AMBUJA Energy Land Water CO2 Neutrality Secure Plants Built Harvesting Structures Focus: Roadmap & KPIs ACF ACF does: Creates solutions -Built check dams / structures Rejuvenated ponds Capacity building / Training SOCIETY Water Positive (at each site) Society needs: Livelihood / Quality of Life Safe and clean environment Energy, land & water 9 © Ambuja Cements Ltd. 2011 Achievement Check dams constructed - 274 Dykes constructed - 20 Well recharging/ Percolation wells - 1301 Ponds constructed / renovated - 390 RRWHS - 4,397 Khadine Bund - 17 Impacts • Increase in Water Level (2-12 Mts) and • Improvement in water quality • Assured availability of Drinking Water at door step • Reversing Trend in Salinity Ingress • 1 crop to 2 to 3 crops every year 10 © Ambuja Cements Ltd. 2011 Salinity Mitigation Area Mapping Salinity Mitigation Project 11 © Ambuja Cements Ltd. 2011 ACF’s Intervention in water at Rabriyawas 12 Work Done Results AMRAPUR BOSAN ALIDHRA PRANSLI SARA GANGETHA BHUVATIMBI VASAWAD CHAGIYA THARELI BARULA KHERA PADRUKA GSCL 0 SOLAJ VAWADI 3 Km FACHARIYA MORDIA NAVAGAM DEVALAPUR PEDHAWADA PASNAWADA ACL LODHVA 2 KADASALA MORASA VADODRA 1 ANANDAPUR LA REV BA MATANA VADNAGAR ACL PLANTS RONAJ DUDANA SINGSAR THORDI DHAMLEJ LEGEND KADAVASAN MATANA VILLAGE GOHILNIKHAN RAKHEJ KANJOTAR CHAUHAN NI KHAN BARDA KODINAR DEVLI DAMLI PANADAR PIPALI MULDWARKA SALINEFRESH WATER INTERFACE2001 SALINEFRESH WATER INTERFACE2005 SALINEFRESH WATER INTERFACE2008 SALINEFRESH WATER INTERFACE2009 AMBUJA PORT Intensive & Integrated Water Resources Development Programme in Kodinar Block Salinity Ingression Status During 2001, 2005, 2008 & 2009 IN 10 KM Radius 13 © Ambuja Cements Ltd. 2011 Ambuja Cements: A Water Positive Company • Minimize and measure water consumption • Documentation (TCS as consultants) • 2012 - Water Positive Assurance Certificate (DNV as certifiers) Year Water Index Debit (million litters) Credit (million litters) 2011 2 times 8389 16860 2012 2.5 times 7950 19888 2013 2.75 times 7131 19402 14 © Ambuja Cements Ltd. 2011 Eg. 2: Responsibility towards Livelihood Company does: Company needs: AMBUJA Employment to a few Energy Land Water CO2 Neutrality Secure Plants Roadmap & KPIs ACF ACF does: Assures productive livelihoods *Agro based *Skill based Mainly indirect employment Focus: SOCIETY Reduce pressure of employment on company Society needs: Livelihood / Quality of Life Safe and clean environment Energy, land & water 15 © Ambuja Cements Ltd. 2011 Agro Based Intervention Capacity Building • • • Training on new / improved practices On farm demonstrations Krishi Vigyan Kendra Technologies / Improved Practices • • • • Micro Irrigation - over 3000 Ha Horticulture Plantation – 4000 Ha System of Rice Intensification – 1800 Ha Better Cotton Initiative – 28000 Ha Market led Extension • • Promoting Farmer’s Organizations – 6 FPOs Inputs and Outputs – Collective Marketing 16 © Ambuja Cements Ltd. 2011 Skill Training Automobile • 16 Skill training institutes • Over 19,000 trainees Welder • Over 40 different trades • Placement - 80% gainfully employed Bed Side Attendant • Imbibing a culture of work safety 17 © Ambuja Cements Ltd. 2011 Mason Training • Directly related to the business • Providing skills to construction Industry • Promote safety culture • Training with Certification • 80% of placements • Brand ambassadors of the Company 18 © Ambuja Cements Ltd. 2011 Eg. 3: Energy Efficiency Company needs: Energy Land Water CO2 Neutrality Secure plants Company does: Built Feeding Systems Measuring Devices Permits & Pollution Corporate Function AMBUJA Focus: Roadmap & KPIs ACF ACF does: Built network of farmers Planned collection points Facilitates collectives & Training SOCIETY 15,000+ tonnes of agri waste Society needs: Livelihood / Quality of Life Safe and clean environment Energy, land & water 19 © Ambuja Cements Ltd. 2011 Biomass Procurement UNIT AFR COMMITTEE Manager AFR ACL The only registered vendor with ACL Cluster-1 Village level Group Farmer Club Cluster-2 Village level Group Farmer Club Cumin Farmer Cluster-3 Biomass Project Executive ACF Shree Balaji Farmer Producer Company Cumin Farmer Dense Network of Green Gram Farmer Farmers Green Gram Farmer Mustard Farmer Mustard Farmer 20 Procuring biomass from farmers: win – win for all • • • Wasteful burning of crop residue - a common practice in India Scope of using biomass as alternate fuel in cement plants Alternate source of community Livelihood • Developed Farmer’s Organizations for facilitating the supply • Contributed to reduction in Net Emission June 2014 Pilot at a site – saved INR 20million (2013) 21 © Ambuja Cements Ltd. 2011 Learning no 3: Facilitate CBOs for sustainability Village Institutions Advantage Village Development Committee Drive village priorities and collective action for development Water user associations/ Watershed committees Involved people in subsequent maintenance Organized Sakhis (Village health workers) Access to Primary Health Care Federation of Women Micro Credit and handling village emergencies Farmer Producer Companies Input + Output linkages for farmers 22 © Ambuja Cements Ltd. 2011 Strategic Benefit • Opportunities to engage with collectives • Project sustainability • Collectives useful to Company. Biomass Procurement Positive voice at Public Hearing 23 © Ambuja Cements Ltd. 2011 Learning No 4: Keep Engagement Proactive Not Reactive • Social Engagement Scorecard - An annual exercise • Community Advisory Panels regular Sharing Opportunities • Site Specific Impact Assessment a human rights risk management system 24 © Ambuja Cements Ltd. 2011 Learning No 5: Need for replication and upscale Document Pilot D Demonstrate 25 © Ambuja Cements Ltd. 2011 Eg 1: Better Cotton Initiative • Started in 2010 - 2500 farmers / 122 Groups • To impart knowledge & skills on cotton cultivation -BCI principles and their implementation in field. • Demonstration & Training on sustainable production • Training a cadre of village level youth for scale up • Scaled to over 17000 farmers / 572 Groups • Promoted farmer’s producer companies for sustaining impact Productivity / Profit • 12% Increase in yield per hectare • 26% Increase in profit Water / Pesticides Chemical Fertilizer • 34% reduction in water use • 42% reduction in pesticides • Use of Urea reduce by 17% • Use of DAP reduce by 37% 26 © Ambuja Cements Ltd. 2011 Eg. 2 :Village Level Health Workers – ‘Sakhis’ 71 • Pilot - 19 ‘Sakhis’ in one location in year 2000 • Regular training/ refresher course for skill building leading to NIOS certification • Begun with components of MCH (Institutional deliveries & child / maternal mortality • Added aspects like Home based Neonatal Care • Up scaled to 8 geographies with over 330 ‘sakhis’ • 50% ‘Sakhis’ absorbed in Public Health System Impact • Health access in neighborhood . Better health status • Reduction in infant and neonatal mortality by over 50% • Institutional deliveries almost doubled • Increase in health seeking behavior from Government 27 © Ambuja Cements Ltd. 2011 Learning No 6: Important to measure ROI True Value Concept : social and environmental profit and loss statement 44490 F $ E + Rain water harvesting Alternative raw materials and fuels Quarry restoration Renewable energy Water saving at customer end S 30470 − Gaseous emissions Water extraction Land disturbed + Economic value added Value created for society through CSR initiative − 14020 Human health Ambuja creates significant societal value © Ambuja Cements Ltd. 2011 Values in million 28 Engaging stakeholders for sustainability Govt. of India NGO Media 29 © Ambuja Cements Ltd. 2011 A Tested Model Unit Sustainable Committee Engagement by relevant team HR CSR Unit Head CSR CSR HR CSR Environment Resilience Land Neighbour of Choice AFR Env Communication AFR 30 © Ambuja Cements Ltd. 2011 Thank You © Ambuja Cements Ltd. 2011