Grasim Industries : TCFD Report (Year 2022-23)

Grasim Industries Limited

Task Force on Climate-related Financial Disclosures (TCFD)

Grasim's Approach to Climate Change and Net Zero

FY2022-23 Summary Report

Index

About this Report	2
Message from the Managing Director	3
Message from the Chief Sustainability Officer	4
About the Company	5
Grasim's Sustainability Journey: Key Milestones	6
Overview	7
GOVERNANCE
Organisational Climate Governance Structure	9
Board Oversight	10
Management Oversight	11
Our Policies	11
STRATEGY
Our Climate-related Risks and Opportunities	13
Transition Risks	14
Transition Risk Scenario Analysis	14
Embracing Sustainability: A Journey Towards
Decarbonisation	18
Physical Risk	20
Physical Risks Scenario Analysis	20
Climate-related opportunities	22
Our Sustainable Products	24
RISK MANAGEMENT
Risk Governance	27
Processes for identifying and
assessing climate-related risks	28
Monitoring and Managing Climate Risk	29
METRICS AND TARGETS
Energy Consumption	31
GHG Emissions	33
Water	35
Way Forward	36
TCFD Mapping Index	37	Further information can be
Abbreviations	38	found online at grasim.com

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Grasim Industries Limited

TCFD Report 2022-23

About this Report

Grasim Industries Limited (hereafter referred to as Grasim, 'We,' 'Our,' 'the Company') is pleased to present the Company's first Task Force on Climate-related Financial Disclosures (TCFD) report for Financial Year (FY) 2022-23. This report offers a detailed insight into our climate-related financial disclosures, including assessments and management of Physical and Transition risks. It also shares a transparent update on the governance structure and approach to manage climate-related risks, the KPIs we monitor and the progress we have made in integrating climate risks and opportunities into our business strategy.

The TCFD report is prepared following the recommendations of TCFD. We are committed to disclosing climate-related risks and opportunities transparently to our stakeholders. A brief of the report for FY2022-23 is included in the "TCFD Summary" section of our Integrated Annual Report.

REPORTING PERIOD

The report contains information pertaining to our climate-related data, encompassing energy consumption patterns, GHG emissions and water consumption for the period: April 1st, 2022 to March 31st, 2023.

REPORTING BOUNDARY

The report covers our operations spread across the following business lines and locations:

• Viscose Staple Fibre (VSF) - Nagda, Harihar, Kharach and Vilayat
• Pulp - Harihar
• Chemicals - Nagda, Vilayat, Veraval, Karwar, Rehla, Renukoot, Balabhadrapuram and Ganjam
• Textiles - Rishra, Malanpur and Kolhapur
• Insulators - Halol and Rishra
• Viscose Filament Yarn (VFY) - Veraval and Kalyan

FEEDBACK

We look forward to your feedback regarding this report. You may reach out to us at: [e-mail]

FORWARD-LOOKING STATEMENT

Some statements in this report regarding our business pertain to future expectations and are based on discussions about our market position, financial status, business strategy, and objectives for upcoming operations. These forward-looking statements can be recognised by terms like 'anticipates,' 'expects,' 'intends,' 'may,' 'will,' 'believes,' 'estimates,' 'outlook,' and other similar expressions used when discussing future operational, environmental, social, and financial performance.

Our forward-looking statements are based on our present expectations, reasonable assumptions, and assessments of projected trends. However, they are subject to risks, uncertainties, and external factors, which might cause actual results to differ from the projections stated in these statements, and we do not undertake any obligation to update or revise these statements except as required by law.

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Grasim Industries Limited

TCFD Report 2022-23

Message from the Managing Director

Dear Readers,

I am delighted to present our inaugural Climate Disclosure for the FY2022-23, which aligns with the recommendations of the Task Force on Climate-relatedFinancial Disclosures (TCFD). Financial Stability Board (FSB), an international body that was formulated by G20 after the London Summit in 2009, created the TCFD and recommended a set of climate- related disclosures that companies and financial institutions can use to better inform investors, shareholders and other stakeholders regarding their climate- related financial risks.

Climate change, among various dimensions, poses significant financial risks to the global economy, making it imperative to provide clear and comprehensive information about its impact. The TCFD recommendations serve as a guide for companies worldwide to disclose their climate change-related risks and opportunities while also urging governments to address this critical issue.

This report is a testament to Grasim's unwavering commitment to sustainable

We extend our gratitude to all stakeholders for their unwavering support and trust in our commitment to sustainable practices. Together, we can contribute to creating a better, more resilient future for our planet."

business practices.

We acknowledge the risks and opportunities associated with rising temperatures, climate-related policies, and emerging technologies in our ever-changing world. We believe that understanding the potential impact of future climate scenarios, coupled with proactive mitigation and intervention plans, will future-proof our businesses. It is crucial to comprehend the climate change risks that may affect our workforce, local communities, and assets. By adopting a preventive approach, we aim to minimise reactive behaviour and

reduce disruptions caused by extreme weather events across our operations and value chain.

Climate scenario analysis is an evolving iterative process, and we anticipate that the approaches, tools, and data quality for climate risks and opportunities will mature over time. As we continue to transform our business processes, these assessments will be integrated into our strategic planning and enterprise risk management frameworks, thereby strengthening our resilience and adaptation to climate change.

We extend our gratitude to all stakeholders for their unwavering support and trust in our commitment to sustainable practices.

Together, we can contribute to creating a better, more resilient future for

our planet.

Sincerely,

Harikrishna Agarwal

Managing Director

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Grasim Industries Limited

TCFD Report 2022-23

Message from the

Chief Sustainability Officer

I am delighted to present the first summary report for Task Force on Climate-related Financial Disclosures (TCFD). This report demonstrates our steadfast dedication to transparency, responsible business practices, and sustainable development.

At Grasim, we recognise climate change as a threat to our planet, communities, and the global economy. As an organisation, we firmly believe that addressing climate- related risks and opportunities is crucial not only for environmental health but also for ensuring a resilient and prosperous future for generations to come.

Throughout this report, we have aligned our disclosures with the TCFD's recommendations, providing a comprehensive overview of our governance, strategy, risk management, and targets concomitant with prevention of environmental damage. Our disclosures highlight the concrete steps we are taking to integrate climate considerations into our decision-making processes. We

We are currently in the process of developing a roadmap to achieve our target of Net Zero GHG emissions that align with the Aditya Birla Group's Net Zero goals."

acknowledge that low carbon future presents significant opportunity for innovation and growth.

This report reflects our progress towards a more resilient and sustainable future. We are currently in the process of developing a roadmap to achieve our target of Net Zero GHG emissions that align with the Aditya Birla Group's Net Zero goals. Grasim Industries Limited, a Company with a diverse products and businesses portfolio, has set businesswise targets. The man-made cellulose fibre business has set a target to achieve net-zero emissions across all operations by year 2040. The Chemicals business aims to procure 25% of its electricity from renewable sources by FY2024-25 and reduce 30% of Scope 1 and Scope 2 emissions by 2030 over the baseline of

2017. Additionally, the Textile business strives to increase the share of renewable power to 70% by 2030.

In the past year, we have achieved 17% reduction in energy intensity and a 15% reduction in freshwater withdrawal intensity compared to the previous financial year. About 8% of our total power consumption is now sourced from renewable sources. We are conducting studies to measure and map processes that are key contributors of our total emissions' and we are identifying various levers to reduce our emissions. Majority of our products like man made cellulosic fibre, linen and wool drives the agenda of consciously fashionable. Moreover, we are investing in various technologies to make our processes more sustainable and minimise our environmental impact.

We recognise that transitioning to net-zero emissions will require collaborative efforts, and we highly value the opinions and insights provided by our investors, customers, employees, suppliers, and communities, as they guide and strengthen our approach to efficiently address climate-related challenges.

We are optimistic about our targets as we continue to find creative solutions for protecting the environment while creating long-term value for our stakeholders. Through this letter I would also like to take an opportunity to thank you for your unwavering belief and support for our journey towards sustainable future.

Sincerely,

Surya Valluri

Chief Sustainability Officer