An Aditya Birla Group Commitment 31 We know that changes in our climate are impacting the way that we live today and will most certainly effect our operations of tomorrow. In order to remain within the two degrees planetary temperature increase that is aspired to by the UN-led Conference of the Parties (COP), our behaviours will need to change dramatically. India is projected to be one of the countries hardest hit by climate change and as such we have a programme to work towards supporting the COP targets agreed by the government. There are elements within our operations today that emit carbon dioxide and hence contribute to changes in the climate. As a major international business, we have a significant energy footprint using fossil fuels. Currently, only one percent of our energy requirements come from renewable sources which we are working to expand. We have developed framework documents on energy and carbon that encompass a policy, technical standard and associated guidance notes including recognising our desire to increase our usage of renewable and clean technology. We are also committed to use clean technologies when practical for new capital investment in fossil fuel based energy provision. Our Framework documents are applicable to all operating factories, commercial and institutional establishments as well as to new infrastructure being developed by our businesses. The standard follows the approach of ISO-50001 for energy management and a combined approach of ISO- 14064 and the Green House Gas (GHG) Protocol of the World Resource Institute (WRI) for Carbon Management. We follow these standards with the aim of integrating energy management fully into the decision-making processes of the Group and its businesses. How our Group companies are mitigating their contribution to climate change A key component of our approach is the tracking of performance data. Our businesses are using the self-assessment questionnaire process to establish the methods needed to report energy consumption and GHG emission baselines and analyse gaps in their current systems based on the Group’s Technical Standard on Energy and Carbon Management. The gaps are then being used to develop and drive action plans to better manage and reduce specific energy consumption and carbon outputs. The actions are a combination of projects on energy conservation and energy efficiency improvement in both processes and utilities such as fuel switching and investment in renewable energy projects. Energy Consumption: Among the group entities, Hindalco, has the highest energy consumption which is followed by UltraTech and the Pulp & Fibre businesses. Setting public targets to reduce greenhouse gas emissions and energy consumption is one way that our businesses are able to demonstrate their commitment and to focus their efforts. Hindalco has achieved a 12% reduction in energy consumption and a 10% reduction in greenhouse gas emissions over the last five years. Novelis is seeking to achieve a 50% reduction in total greenhouse gas emission by 2020 (against a FY 2007/9 average). Birla Carbon has already achieved 45% of its 2030 ambition of achieving a reduction of 21% of its direct emissions against its 2005 baseline. Birla Carbon is also making great strides towards increasing its absolute energy conversion efficiency to 80% having already exceeded the 72% mark. Similarly, our Chemicals & Fertiliser business has achieved a 10% reduction in specific energy consumption over the four-year period starting FY 2012-13 by retrofitting electrolytic cells and process redesign. TOTAL ENERGY CONSUMPTION BY BUSINESS (TOE) FY 17 FY 18 CHEMICALS 567,026 600,208 FERTILIZERS 608,803 626,247 HINDALCO 6,572,254 6,610,544 INSULATORS 15,293 16,622 MINING 32,034 40,216 NOVELIS 705,959 714,586 PULP & FIBRE 1,704,986 1,641,067 RETAIL 6,650 7,770 TELECOM (NETWORKS/ OPERATIONS LEVEL) 370,851 355,271 TEXTILE/AF/OS 159,928 153,424 ULTRATECH 3,899,874 4,169,294 TOTAL 14,643,657 14,935,249 // ENERGY MANAGEMENT & CLIMATE CHANGE Responsible Stewardship 03 Responsible Stewardship i. * The total energy consumption of Birla Carbon was 12.11 GJ/tCarbon Black for FY17 and 11.91 GJ/tCarbon Black for FY18. ii. * Telecom business Energy and emissions data cover operational data only.