BIO DIVERSITY POLICY Textile, Acrylic Fibre & Overseas Spinning Business

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1 BIO DIVERSITY POLICY The Textile, Acrylic fibre and Overseas spinning business of Aditya Birla Group, recognises that Biodiversity is at the core of sustainable development and it impacts the quality of human life and is an essential component to the sustainability of all human activity, including business. We comprehend the risk of dependence on biological resources that have competing uses including that of ecological systems and obligation for safeguarding the ecosystems, species and genetic components that make up biodiversity, a crucial factor in meeting the needs of future generations. We are committed to take actions within our business and to the extent feasible in value chain and work with our stakeholders to find long- term solutions to reduce our impacts on and conserve biodiversity. Every unit of our business shall endeavour to: Maintain positive legal compliance to bio diversity, forest and green cover related regulations while planning and executing projects and in operations; Manage efficient use of biological resources across the business and be sensitive to impacts of farming of such biological resources and endeavor to follow best practices of biological resource management in the sector; Minimize and mitigate impacts due to operations on bio diversity and biological resources; Within the premise of operations, endeavor will be made to increase green cover that is compatible with local ecosystems; While procuring biological resources, ensure that the good practices are followed with regard to impact on biodiversity and cruelty to animals, by the suppliers; Engage internally and externally with stakeholders and wider communities to understand and collaborate on actions on Conservation of biodiversity, Sustainable use of biological resources, and Equitable sharing of biodiversity benefits; Actively communicate and disclose our approach and achievements to stakeholders and regularly seek feedback through stakeholder forums; and Monitor measure and report impact of our operations on biodiversity and use of biological resources following internationally recognized protocols. This policy shall be reviewed periodically for its suitability and updated as necessary.

2 ENERGY AND CARBON POLICY of Aditya Birla Group recognises energy consumption and carbon emissions are the two most important issues currently affecting the planet. We comprehend the risk of dependence on fossil fuels and associated carbon emissions related to our operations. We are committed to take actions within our companies and supply chain and work with our stakeholders to find long-term solutions to reduce our energy and carbon footprint. All units of our business shall endeavour to: Maintain positive legal compliance to energy and carbon regulations; Raise awareness to encourage efficient use of energy resources across the business, with a focus on reducing the energy intensity and carbon footprint in our operations; Increase the use of renewable energy within our operations; Promote research and development for cleaner and efficient technologies to support the adoption of low carbon solutions; Continually improve energy and carbon management in our companies and across their supply and value chains by adopting internationally accepted and economically viable management systems and best practices; Engage internally and externally with our stakeholders and wider communities to understand and collaborate on actions promoting reduced energy intensity and low carbon approaches to benefit both our business and associated communities; Actively communicate and disclose our approach and achievements to stakeholders and regularly seek feedback through stakeholder forums; and Monitor, measure and report energy usage and carbon emissions in compliance with internationally recognized protocols. This policy shall be reviewed periodically for its suitability and updated as necessary.

3 ENVIRONMENTAL POLICY of Aditya Birla Group recognizes that effective management of environment & it s impacts is a fundamental part of our business. We shall strive to integrate sound environmental practices across the operations of the business and minimize environmental impacts and attain a leadership position in environmental stewardship. Every unit in the business shall endeavour to: Maintain positive legal compliance to environmental regulations; Progressively develop, implement and maintain an internationally accepted environmental management system; Implement pollution prevention and control systems which are defined by the inherent processes of each unit and are in line with internationally disseminated technologies and practices; Conserve materials, by reducing the use and using renewable and recycled materials by implementing management programmes and initiatives, adopting efficient technologies and manufacturing process improvements, wherever feasible; Adopt principles of waste prevention, reduction, reuse, recycling and recovery to minimise solid, liquid and gaseous waste generation and manage residual wastes through application of best available techniques before discharging to the environment; Raise environmental awareness through participation and consultation with employees at all levels of our operations through training and creative, diverse and effective channels of communication; Engage internally and externally with stakeholders and wider communities to broaden our understanding of environmental priorities, their links to global issues and initiate actions on key environmental challenges; Influence our contractors and suppliers, appropriately, to adopt similar environmental policies, principles and practices and encourage appropriate environmental management across the supply and value chain; Continually improve environmental performance of the products of Aditya Birla Group s Companies by setting and reviewing targets and monitor, measure and report environmental performance preferably in compliance with internationally recognized protocols; and Actively communicate and disclose our approach and achievements to stakeholders. This policy will be reviewed periodically for its suitability and updated as necessary.

4 HEALTH POLICY Textile, Acrylic Fibre& Overseas Spinning Business Textile, Acrylic Fibre and Overseas Spinning Business of Aditya Birla Group believes that the health is an important component of quality of life and a necessary ingredient of productive engagement. We will combine preventive and mitigative strategies and practices to maintain and improve the health of our employees and their families; and prevent negative heath impacts on our customers, communities and business partners. To fulfill this commitment to protect both people and property, we will: Maintain healthy work environment, identify occupational health risk for each work area, follow regular health check up,in accordance with industry standards and in compliance with legislative requirements; Work practices and job procedures that prevent and mitigate occupational health hazards, will be clearly defined and followed. We will follow good practices to prevent negative health impacts while planning, operating and maintenance of facilities and equipment. Raise preventive health awareness of employees at all levels through creative, diverse and effective channels of communication; Engage with relevant stakeholders to create awareness and minimize health impacts due to our business operations in its surroundings Influence our contractors and suppliers, appropriately, to adopt good occupational health practices including complying with relevant applicable regulations Minimise negative health impacts of our products as also provide adequate information to our customers, in compliance with internationally recognized protocols; and Actively communicate and disclose our approach and achievements to stakeholders. This policy will be reviewed periodically for its suitability and updated as necessary.

5 Human Rights Policy Textile, Acrylic Fibre& Overseas Spinning Business of Aditya Birla Group is committed to make best efforts to adhere to internationally recognized human rights standards and seeks to avoid in human rights abuses that are noticed. Every unit in the business shall endeavor to identify access and manage human rights impacts within operations and amongst identified suppliers considered to have significant risks for the following: Respect for human rights including non-discrimination, prohibition of child and forced labor, and freedom of association and the right to engage in collective bargaining. Establish and maintain appropriate procedures to evaluate and select major suppliers and contractors, based on human rights practices, and to monitor their performance where appropriate. Respect the customs and values of the neighboring communities where we operate. Aim to ensure the provision of security is consistent with the laws of the countries in which we operate, using security services only where necessary and requiring the use of force only when necessary and proportionate to the threat. Information regarding assessments and performance vis a vis human rights will be disclosed to relevant stakeholders through sustainability report. To safeguard Whistle-blowers for making protected disclosures in good faith.

6 PRODUCT STEWARDSHIP POLICY Textile, Acrylic Fibre& Overseas Spinning Business of Aditya Birla Group recognizes that its products touch the lives of customers. Therefore it is important to ensure that products are produced, used and managed until the end of it s life in a socially and environmentally responsible manner, in order to support societal goals of sustainable development and commercial goals of sustainable markets. We recognize that the product stewardship responsibility extends across the life cycle of our products. Every unit in the business shall endeavour to: Maintain positive legal compliance to product health, safety and environment related regulations applicable in the markets; Adopt and practice internationally accepted customer health and safety codes/voluntary commitments and good product stewardship practices; Utilise life cycle assessment appropriately across our business units to evaluate potential impacts of our products in order to create value for the business units; Engage with key customers and relevant stakeholders across product value chain to develop preferred stakeholder relationships leading to increased value for our products; Develop product environmental safety and health data, as appropriate, to ensure that our products are safe for the environment and health in all their intended uses; Facilitate and encourage recycling of our products where appropriate; Develop greater awareness amongst our workforce about the value of product stewardship; Disclose information on our products to insure a high degree of transparency in our business and the public.

7 QUALITY POLICY of Aditya Birla Group recognizes that Quality- conforming to customers explicit and implicit expectations- is critical for sustainable growth business. Across our operations, we believe that quality is cost effective, builds confidence and trust; and delivers value not only to customers but also to suppliers, employees and communities and accordingly we are committed to produce high quality products. Every unit in the business shall endeavour to: Maintain positive legal compliance to product quality related regulations; Develop, implement and maintain an internationally accepted quality management system which provides a framework for measuring and improving our performance; Establish and operate regular customer engagement, feedback gathering & grievance redressal procedure; selection and performance monitoring of suppliers against set criteria; training and development for employees; regular audit of internal processes; measurable quality objectives which reflect our business aims and management reviews; Engage contractors and suppliers, appropriately, to adopt similar quality policies, principles and practices and encourage appropriate quality management across the supply and value chain; Actively communicate and disclose our approach and achievements to stakeholders. This policy will be reviewed periodically for its suitability and updated as necessary.

8 SAFETY POLICY of Aditya Birla Group believes that the well-being of our company and stakeholders is dependent on the health and safety of our workforce. We are committed to preventing the accidental loss of any of our resources, including employees and physical assets and damage and loss to lives and property in our surroundings To fulfill this commitment to protect both people and property, we will: Maintain safe and healthy work environment, in accordance with industry standards and in compliance with legislative requirements; Strive to eliminate any foreseeable hazards which may result in property damage, accidents, or personal injury/illness; Share responsibility for safety amongst employees for minimizing accidents within our facilities and on our work sites. Safe work practices and job procedures will be clearly defined in the company s Health and Safety Manual for all employees to follow. Comply with good safety practices relating to planning, operation and maintenance of facilities and equipment. Raise safety awareness through participation and consultation with employees at all levels of our operations through training and creative, diverse and effective channels of communication; Engage with all stakeholders to minimize damage to property and lives involved in our business operations and its surroundings Influence our contractors and suppliers, appropriately, to adopt similar safety policies, principles and practices Continually improve safety performance of our products as also provide adequate information to our customers, in compliance with internationally recognized protocols; and Actively communicate and disclose our approach and achievements to stakeholders. This policy will be reviewed periodically for its suitability and updated as necessary.

9 SECURITY POLICY of Aditya Birla Group consider protecting personnel and property from damage and denying unauthorized access to facilities, equipment and resources including information, is its bounden duty. Slippages in both physical and information security can harm its business, employees, customers, suppliers and public at large. To fulfill this commitment to protect both people and property, we will: Maintain physical and information security across our operations, in accordance with industry standards and in compliance with legislative requirements; Deploy deterrence, intrusion detection and access controls to ensure physical security and manage IT administration, password,backup and recovery processes, user access rights and restrictions and remote access ; and network design to ensure information security; Share responsibility for security amongst employees. Secure work practices and job procedures will be clearly defined and practiced; Comply with good security practices relating to planning, operation and maintenance of networks, facilities and equipment; Raise security awareness of employees at all levels of our operations through training and creative, diverse and effective channels of communication; Our security practices and actions will not transgress or violate the rights of other stakeholders viz., human rights of communities and right to information of any stakeholder; Influence our contractors and suppliers, appropriately, to adopt similar security practices Protect the information of our customers and suppliers that is made available to us as it is required by applicable laws, contractual obligations, voluntary obligations and good practices; and Actively communicate and disclose our approach and achievements to stakeholders. This policy will be reviewed periodically for its suitability and updated as necessary.

10 STAKEHOLDERS ENGAGEMENT POLICY of Aditya Birla Group recognizes that effective stakeholder engagement contributes to the development of trust-based and transparent stakeholder relationships. We commit ourselves to transparent and accountable stakeholder engagement with all those impacted by and impact our business. Every unit in the business shall endeavour to: Establish stakeholder engagement processes specific to each stakeholder group, that is inclusive, material and responsive; the engagement processes are not limited to grievance and whistle blower mechanisms. Inform, encourage, and build capacity amongst stakeholders, as required, to establish an effective stakeholder engagement. Delineate scope and mode of engagement for each stakeholder segment and define the responsibility for engagement with each stakeholder group. Integrate stakeholder engagement into organisational strategy, operations management and decision making processes. Establish a review mechanism to periodically assess the performance of the engagements and effect improvements. Communicate to all stakeholders progress and plans on sustainability.

11 Textile, Overseas Spinning & Acrylic Fiber Business Code of Conduct Textile, Overseas Spinning & Acrylic Fiber business Code of Conduct aims to attain and ensure compliance with social and environmental standards. All business partners must ensure that the Code of Conduct is also observed not only by them but also all the subcontractors involved in production processes on behalf of them. Textile, Overseas Spinning & Acrylic Fiber Code of Conduct enlists the following clauses:- 1) Prohibition of Child Labor: Textile, Overseas Spinning & Acrylic Fiber prohibits the use of Child labor. Workers can be no less than 15 years of age and should not be younger than mandatory age to be in school, in any given country. We will not engage with any partner who uses child labor in any of their facilities. Textile, Overseas Spinning & Acrylic Fiber business does support the development of legitimate workplace apprenticeship programs for the educational benefit of younger people or as mandated by the local laws. 2) Prohibition of Forced Labor: Textile, Overseas Spinning & Acrylic Fiber business prohibits the use of corporal punishment, forced or compulsory labor, bonded or prison labor as well as to products or services produced by this means. We shall not utilize or purchase materials or products from a business partner utilizing Forced Labor. Retention of original documents from the employees shall be considered as Forced labor. 3) Prohibition of Harassment or Abuse: Textile, Overseas Spinning & Acrylic Fiber business under no circumstances would accept our supplier s employees to be subject to ill treatment, coercion or corporal punishment either physical or mental. 4) Working Hours: We expect our Business partners to comply with legally mandated work hours; uses overtime only when each employee is fully compensated according to local law; and on a regularly scheduled basis provides one day off in seven, and requires no more than 60 hours of work per week on a regularly scheduled basis, or complies with local limits if they are lower. 5) Wages, Benefits and Leave: Business partners shall set working hours, wages and overtime pay in compliance with all applicable local laws. All employees must be made aware of the rules relevant to minimum wages and benefits. Female workers should be given their stipulated maternity leave in case of pregnancy. Dismissal of pregnant female workers is not acceptable. 6) Prohibition of Discrimination: Business partners shall employ workers without discrimination to race, caste, national identity, religion, social background, gender, age, marital status, sexual orientation, political conviction, party, union membership etc. Workers shall be employed on the basis of their ability to do the job. 7) Environment, Health and Safety: All Business partners shall ensure a safe and hygienic working environment for all employees; also take necessary steps and procedures to prevent work place accident and injury. Business partners shall respect all applicable environmental laws and regulations. 8) Freedom of Association: Workers shall be granted the right and freedom of association to their choice. They have the right to join trade unions. Business partners shall not interfere, threaten or penalize workforce in this respect as well as the right to collective bargaining in accordance with the local law.

12 SUPPLY CHAIN AND PROCUREMENT POICY of Aditya Birla Group recognizes the contribution of suppliers in generating value and managing risks. We shall commit to make best efforts for positive compliance along the supply chain with all applicable environmental, social and economic regulations and good practices. Every unit in the business shall: Screen and evaluate new and existing suppliers with due emphasis on the following: Compliance with all applicable rules and regulations Timely delivery of quality products Responsible consumption of energy, water and materials Minimal waste generation, emissions to air and effluents Right to freedom of association and collective bargaining is respected Safe and hygienic working conditions Have no tolerance to child labour, forced labour, non-discrimination. Conduct periodic audits of supplier facilities and work practices and build capacity, as required. Make efforts, to enhance the capacities of the local suppliers and prefer the local suppliers. Give fair consideration to renewable or recycled or alternative materials while sourcing of goods. Establish and operate grievance and whistle blower mechanisms for suppliers.

13 TRANSPORTATION POLICY of Aditya Birla Group recognizes the cost implications, safety aspects and impacts on environment and society, due to transportation of people, raw materials and products. In our endeavor to reduce impact due to transportation, every unit in the business shall: Comply with regulatory requirements and good practices related to safety & emissions, of all vehicles, owned or contracted, involved in internal, inbound & outbound logistics and employee travel. While planning and in operations, make informed decisions to minimize transportation and use transport modes that cut costs and reduce emissions. Periodic audit of identified transport contractors and service providers for compliance with applicable regulations. Provide periodic training to drivers on road safety, material handling, emergency preparedness and positive compliance and make best efforts so that adequately trained drivers are deployed. Provide necessary and adequate information to drivers about the transported goods and meet with all regulations and good practices of labelling of transported material and vehicles. Avoid business travel and use video conferencing and other modes where ever possible. Recognize and address the grievances of the communities in the surrounding areas due to our transportation activities.

14 WATER STEWARDSHIP POLICY The Textile, Acrylic Fibre and Overseas Spinning business of Aditya Birla Group, recognises that water resource is critical for supporting ecology, life and productive processes and is an important issue currently affecting the planet. We comprehend the risk of dependence on water resources that have competing users including ecological systems. We are committed to take actions within our business and value chain and work with our stakeholders to find long-term solutions to reduce our water consumption and preserve the functional support of water resources that we impact. Every unit of our business shall endeavour to: Maintain positive legal compliance to water resource and waste water related regulations; Manage efficient use of water resource across the business by reducing, recycling & reusing water and endeavor to follow best practices of water footprint management in the sector; Minimize and mitigate impacts on water sources and receiving bodies while managing water and discharging waste water Within the premise of operations, endeavor will be made to harvest water for storage & use and recharge; Continually improve water foot print management in our companies and across their supply and value chains by adopting internationally accepted and economically viable management systems and best practices; Engage internally and externally with stakeholders and wider communities to understand and collaborate on actions on preserving and recharging surface and ground water resources that our operations impact; Actively communicate and disclose our approach and achievements to stakeholders and regularly seek feedback through stakeholder forums and Monitor, measure and report water usage and effluent discharges- water footprint, in compliance with internationally recognized protocols. ; This policy shall be reviewed periodically for its suitability and updated as necessary.