Page 163 - Tata Chemical Annual Report_2022-2023

Integrated Annual Report 2022-23 01-83 84-192 193-365
Integrated Report Statutory Reports Financial Statements
Management Discussion
& Analysis

12. Sustainability Integrated Report Reviews are conducted on an ongoing basis based on a 15. Risk Management Framework
The Company has adopted the IIRC framework to establish comprehensive risk-based audit plan, which is approved
At the Company, sustainability is aligned with the UN integrated reporting within the mainstream business. by the Audit Committee at the beginning of each year. The Company has constituted a robust governance
Sustainable Development Goals, and the Environmental, In accordance with the IIRC Framework, the Company The Internal Audit team reviews and reports to the structure consisting of five levels, thereby ensuring both
Social and Governance principles are integrated into its has included an Integrated Report <IR>. The <IR> seeks management and the Audit Committee about compliance bottom-up and top-down approaches.
business. TCL’s sustainability framework is designed along to provide a concise and integrated account of how with internal controls, and the efficiency and effectiveness A Risk Management Committee (‘RMC’) is constituted to
the axis of Materiality and Responsible Care. During the the Company’s strategy, governance, performance and of operations as well as the key process risks. oversee the risk efforts in the Company. The RMC meets
year, the Company undertook a large-scale stakeholder- prospects are delivering on its core purpose – being a quarterly to review key risks and assess the status of
driven materiality assessment with the support of a The Audit Committee meets every quarter to review and mitigation measures. The Company’s approach to risk
third party. global company. The <IR> encompasses all key financial and discuss the various Internal Audit reports, and follow up on management is designed to provide reasonable assurance
non- financial performance indicators which are material to action plans of past significant audit issues and compliance that its assets are safeguarded, and the risks facing the
Aligned to Tata Group’s sustainability policy and the Company as per GRI, UNGC and CDP. It plays a crucial with the audit plan. business are being assessed and mitigated.
sustainability ambition, as articulated in its Project role in establishing the linkages between environmental
Aalingana TCL has articulated its sustainability policy and is and social sustainability, as well as the financial growth of The risk management framework is described below:
taking actions towards three key themes - Climate change the organisation. The <IR> contains assured sustainability
and emissions, Circular economy and Resources (Water, data for FY 2022-23 for entities across the enterprise.
Material and waste) management, and Preserving nature The financial information has been audited by B S R & Co.
and biodiversity. LLP, and the non-financial information has been assured by
Ernst & Young Associates LLP.
On the path of decarbonisation, the Company has Board of
committed to reduce absolute emissions by 30% and 13. Business Excellence Directors
achieve net zero emissions. In line with its commitment, The Company remains committed to continually raising
the Company has initiated various levers, on shifting to the bar on performance in all aspects of its business. The
low emission/carbon neutral fuels, enhancing energy Tata Business Excellence Model (‘TBEM’) serves as a pivotal Risk Management
efficiencies, use of renewable energy, and carbon capture framework that allows the Company to gain insights into Committee of the Board
and utilisation, with several more in the pipeline.
its performance, and establish continuous improvement Risk Management Group (RMG)
The Company has committed to becoming water positive initiatives for attaining superior business results and at Senior Leadership Level
and zero solid waste to landfill. As part of its efforts to maximising satisfaction and value for the customers.
promote sustainable growth through circular economy, it The TBEM framework comprises six core areas of business RMG at Business Unit Level / Subsidiary Level
has adopted the 3R (Reuse, recycle and reduce) strategy at excellence: Leadership, Strategic Planning, Customer
its manufacturing facilities. Focus, Analysis and Knowledge Management, Workforce
Focus, and Process Management. For the Company, a global Risk Owners
The Company has committed to net zero impact on organisation that has its manufacturing operations spread
biodiversity, and to the conservation and strengthening across four continents with diverse business segments
of biodiversity in and around the areas of its operations. Its and employees from different cultures, TBEM serves as a
focus is on coastal and marine ecosystem. platform to establish a consistent standard of excellence.
The Company participated in the Tata Group level TBEM
The Company has developed an internal tool (Responsible assessment in 2021 and achieved a coveted Industry
Manufacturing Index) to monitor key sustainability Leader status. This affirms the Company’s commitment
indicators on a monthly basis. to strengthening the culture of excellence and progress
towards becoming a world-class organisation.
TCL uses frameworks such as ISO 14001, OHSAS 18001,
Global Reporting Initiative (‘GRI’), Carbon Disclosure 14. Internal Controls
Project (‘CDP’), International Integrated Reporting
Council (‘IIRC’), United Nations Global Compact (‘UNGC’), The Company has an independent Internal Audit function
Science Based Target initiatives (SBTi), India Business with a well-established risk management framework.
& Biodiversity Initiative (IBBI) reporting, etc. to disclose The scope and authority of the Internal Audit functions are
as well as to share its performance with stakeholders. derived from the Internal Audit Charter approved by the
This allows the Company to get feedback from the Audit Committee. The Company has engaged a reputable
stakeholders and engage with the key customers under external firm to support the Internal Audit function for
supply chain programmes. carrying out the Internal Audit reviews.

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