Page 80 - Tata_Chemicals_yearly-reports-2021-22

Integrated Annual Report 2021-22

and continuous monitoring of internal risk factors. The ERM 14. Corporate Social Responsibility
framework identifies, evaluates, manages and reports risks The Corporate Social Responsibility (‘CSR’) activities of
arising from the Company’s operations and exogenous the Company are governed through the Corporate Social
factors.
Responsibility Policy (‘CSR Policy’) approved by the Board.
During the year under review, the ERM Policy and Terms The CSR Policy guides in designing CSR activities for
of Reference of the RMC were revised in line with the SEBI improving quality of life of society and conserving
Listing Regulations to, inter-alia, set up strategic policies the environment and biodiversity in a sustainable
including focus on ESG related risks, risks revolving around manner. The CSR Committee of the Board oversees the
cyber security and defining the role and responsibilities of implementation of CSR Projects in line with the Company’s
the RMC. CSR Policy.
The Company has deployed bottom-up and top-down The Company has adopted a participatory approach
approaches to drive enterprise-wide risk management. in designing need-based CSR programmes which
The bottom-up process includes identification and are implemented through Tata Chemicals Society for
regular assessment of risks by the respective business Rural Development (‘TCSRD’) in partnership with the
units and implementation of mitigation strategies. This is Tata Trusts and with various government and non-
complemented by a top-down approach where the Risk government institutions. The Company’s CSR programme
Management Group (Senior Leadership Team) as well as the framework focusses on building economic capital, ensuring
RMC identifies and assesses long-term, strategic and macro environmental integrity, enablers for social, economic and
risks for the Company.
environmental development and building social capital.
The RMC oversees the risk management process in the Building economic capital: The Company focusses on
Company. The RMC is chaired by an Independent Director poverty alleviation and creating livelihoods, linked to farm
and the Chairperson of the Audit Committee is also a and non-farm based activities.
Member of the RMC. Further, the Chairman of the RMC
briefs the Board at its Meetings about the significant Ensuring environmental integrity: The Company’s main
discussions at each of the RMC Meetings. This robust focus is on management of natural resources and conservation
governance structure has also helped in the integration of of environment. The key programmes include land and water
the ERM with the Company’s Strategic Planning Process management activities, waste management, preservation of
where emerging risks are used as inputs in such process. biodiversity and mitigation of climate change impacts.
Identified risks are used as one of the key inputs in the Enablers for social, economic and environmental
strategy and business plans.
development: The Company’s key programme is the Holistic
A systematic review of risks identified is subject to a Nutrition Programme which targets the first 1,000 days of a
series of focussed meetings of the empowered Risk child. Additionally, in the neighbourhood, the Company
Management Group (Senior Leadership Team), respective conducts regular health and nutrition camps.
Business-level / Subsidiary-level Committees and the RMC.
The RMC meets periodically to review all the key risks and The education programme focusses on students starting
assess the status of mitigation measures. from primary to the post-graduation level. Educational
support is provided for enrolment of children and improving
Considering the volatility, uncertainties and unprecedented quality of education.
challenges involved in the businesses, the risk management
function has gained more importance over the last few years The Company helps to provide clean water through roof
and it is imperative to manage and address such challenges rainwater harvesting structures, repair of hand pumps,
effectively. With a view to have a focussed approach in doing supporting households with water purifier systems through
so, the Company has appointed a Chief Risk Officer effective Swach Tarang Project.
April 1, 2022, to oversee the Risk Management function of Building social capital: Building the social capital for long-
the Company. term sustainability is a key cross-cutting theme in all these
Based on benchmarking and inputs from global standards programmes.
on ERM, the Risk Management process has been deployed Women empowerment, reducing inequality of marginalised
across geographies and businesses. communities (through Affirmative Action), partnerships for
Some of the risks identified are set out in the Management achieving goals and setting up sustainable social enterprise
Discussion & Analysis which forms part of this Integrated models (Okhai and Ncourage Social Enterprise Foundation)
Annual Report. are key initiatives for achieving the same.

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