Tata Consumer Products : Business Responsibility & Sustainability Report (BRSR)

July 28, 2022
National Stock Exchange of India	BSE Limited	The Calcutta Stock Exchange
Limited	Phiroze Jeejeebhoy Towers	Limited
Exchange Plaza, C-1, G Block	Dalal Street	7 Lyons Range
Bandra Kurla Complex, Bandra (E)	Mumbai 400001	Kolkata 700 001
Mumbai 400 051		Scrip Code - 10000027 (Demat)
Scrip Code - TATACONSUM	Scrip Code - 500800	27 (Physical)

Subject: Environment, Social and Governance (ESG) Report and Business Responsibility and Sustainability Reporting (BRSR)

Dear Sir/Madam,

Please refer to our letter dated June 3, 2022, wherein the Company had submitted the Integrated Annual Report of the Company for FY 2021-22 including the Business Responsibility Report (BRR), according to Regulations 34 of Securities and Exchange Board of India (Listing Obligations & Disclosure Requirements) Regulations 2015.

The Company has now voluntarily prepared a combined report on Environment, Social and Governance (ESG) and Business Responsibility and Sustainability Reporting (BRSR). This report is hereby submitted separately from the Integrated Annual for FY 2021-22, as BRR was forming part of the Integrated Annual Report 2022.

We request you to take this on your record.

Thanking you,

Yours Sincerely,

For Tata Consumer Products Limited

Neelabja Chakrabarty

Company Secretary & Compliance Officer

Encl.: as above

11/13 Botawala Building 1st Floor Office No 2-6 Horniman Circle Fort Mumbai 400 001 India

Tel: [phone] | Fax: [phone]

Registered Office: 1, Bishop Lefroy Road, Kolkata - 700 020

Corporate Identity Number (CIN): L15491WB1962PLC031425

Email: [e-mail]

Website: www.tataconsumer.com

CONSUMER PRODUCTS

ESG Report

LIVING

CONTENTS

Message from MD and CEO		3
About the Report		6
ESG at TCP		8
Journey so far		10
Approach to ESG strategy		20
ESG Governance		27
For Better Nutrition		30
For Better Planet		35
For Better Sourcing		33
For Better Communities		42
Business Responsibility and	50
Sustainability Report (BRSR)
Conclusion		49
GRI Index		97

MESSAGE FROM MD AND CEO'S DESK

As part of the Tata Group, the ethos of responsibility and sustainability are interwoven in our corporate and work philosophy here at Tata Consumer Products. We are driven by our vision to build better lives and thriving communities. In our goal towards building a sustainable future, our sustainability strategy is centered around 'Better Living', which encompasses the four pillars of 'For Better' -Nutrition, Sourcing, Communities and Planet. We are committed

to growing our business in a responsible manner, as we continue to respect the environment and strengthen our sustainability efforts. Our sustainability strategy comprises the Company's initiatives towards sustainable sourcing, natural resource management, circular economy, and community development.

This is our first and voluntary attempt to bring out the Business Responsibility and Sustainability Report (BRSR) and we see this as an opportunity to enhance and strengthen our ESG disclosure. Through this report, we intend to communicate our ESG journey, progress updates on our projects, and key learnings with all our stakeholders.

Through this report we also present to you our ESG Strategy

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and key commitments which will guide our initiatives and actions for the coming years.

Sustainability is becoming one of the key deciding factors during a consumer's buying journey and this trend is shaping how the FMCG industry evolves.

At Tata Consumer, ESG is ingrained in the way we think and operate and is a core part of our culture. Our ESG agenda has evolved to become sharper and more integrated, as we set out to achieve our ambition of becoming a leading FMCG Company.

Good Governance forms the cornerstone of our business, and our Governance standards are best in class in the industry. This guides the Company's strategy towards the way

we do business, and we are constantly improving our policies and practices where needed. We are committed to defining, following and practicing the highest level of corporate governance across all our business functions. We will also continue to further strengthen data privacy and information

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security standards across our global operations. At the core of our corporate governance practice is the Board of the Company, which oversees how the management serves and protects the long-term interests of all our stakeholders. More than the majority of the Board, five out of 9, are independent members. As active and well- informed members of the Board, they are fully committed to ensuring the highest standards of corporate governance. In addition, the Audit Committee, Corporate Social Responsibility

• Sustainability Committee, and the Risk Management Committee are fully comprised of Independent Directors while 2/3rd of the Nomination
• Remuneration Committee

is made up of Independent directors, thus bringing their valuable perspective to the functioning of the Board and Board Committees.

Sustainability is an important parameter for stakeholders when they evaluate the Company and its prospects. We have a thoughtfully crafted value creation model to create

Sustainability is becoming one of the key deciding factors during

1. consumer's buying journey and this trend is shaping how the FMCG industry evolves.

enduring value for all our stakeholders. Our prudent and responsible choices have transformed into tangible and intangible outcomes over the short, medium, and long term.

Our range of products harmonizes with our 'For

Better' philosophy. We are strengthening the 'better- for-you' portfolio, to give our consumers access to great- tasting products that enhance health and nutrition. As a consumer-centric company, we are also continually striving to understand and address the needs of the conscious consumer, who is interested in knowing where the products they consume are sourced from. We take special care in responsible sourcing of our tea and coffee products in collaboration with partners such as trustea and Rainforest Alliance.

Consumers are also increasingly becoming aware of climate change, and its impact on the

environment. TCP is doing its part in mitigating climate change. We are reducing our environmental footprint and we have ensured that 24% of the current energy needs for the India supply chain now get fulfilled from renewables. Our Himalayan Water factories are powered with solar energy and equipped with a biomass boiler for reducing GHG emissions.

We have extended our good practices to our supply chain partners as well, such as support with Environment and Safety Management System certifications, renewable energy installation guidance and support, ensuring adherence to the Tata Code of Conduct and its principles among others.

Our aim is to reduce the use of natural resources and create a positive impact through responsible resource management. We are also placing emphasis on the circular economy of packaging. Tata Consumer is one of the founding members of the India Plastics Pact and is also a member of the UK Plastics Pact. In fact, all our beverages' factories worldwide are zero waste to landfill, with

waste being disposed through authorized vendors, who recycle or re-purpose the same.

Apart from integrating sustainability in our operations, we also aim to create a culture which encourages employees to contribute to the community around them. Our employees across the globe have been contributing their time and efforts to serve the community

through various volunteering programmes. Our CSR programmes are designed for the betterment of communities with focus on critical areas spanning healthcare, nutrition, water management, education, and skill development for vulnerable groups in the communities we operate in - currently impacting over 8 lakh beneficiaries and aiming for 2 million beneficiaries by 2030.

As a responsible corporate citizen, safeguarding human rights is an integral part

of doing our business. The Business and Human Rights Policy at TCP is well aligned to the required standards of International Bodies and the Tata Code of Conduct. Our employees remain our most valued assets and diversity is an important parameter in building a well-balanced workforce. We launched Women's Inclusion Network (WIN), a global forum to foster inclusion and bring together women across the Company to connect, learn, and grow.

A business is truly successful when it can create meaningful positive change and benefit communities. At Tata Consumer, we believe that shared prosperity is paramount, and we will continue to

do our bit to build resilient communities. We have been focusing on environmental welfare and social progress for over a decade now. With a strong foundation, network and several initiatives in place, we will continue to build on the Tata Group's philosophy of giving back to the planet and the community.

With warm regards,

Sunil D'Souza

MD and CEO

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ABOUT THE REPORT

This report highlights our ESG approach, strategy, and disclosure on the basis of the BRSR template and guidelines.

This is TCP's second sustainability report and our first Business Responsibility and Sustainability Report (BRSR). The recently published Integrated Report FY '22

has detailed sections on sustainability and value creation and has been accordingly cross-referenced for ease of understanding. The annual report is aligned to the International Integrated Reporting Council (IIRC) and has sections detailed on the six capitals and value creation.

This report highlights our ESG approach, strategy, and disclosure on the basis of the BRSR template and guidelines. The BRSR seeks disclosures from listed entities on their performance against the nine principles of the 'National Guidelines on Responsible

Business Conduct' (NGRBCs) and reporting under each principle is divided into essential and leadership indicators. As this is voluntary for FY '22, we have included it as a separate report, as part of the overall ESG report. Further, we have addressed the essential indicators for

this year and will endeavor to report on leadership indicators as well going forward. The BRSR indicators have also been mapped with the GRI indicators for better clarity and continuity from our previous reports.

The report boundary encompasses our standalone business in India which include our own manufacturing units, second- and third-party units (where we have 100% operational control), and our corporate offices for Food and Beverage business verticals.

Assurance:

This report has been externally assured by the British Standards Institution (BSI), who also provide verification of Greenhouse Gas Emissions (GHG) to the company as per ISO 14064. The scope and basis of assurance have been described in the assurance report issued

by BSI.

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