Business Responsibility Report

Transcription

1 th ANNUAL REPORT Business Responsibiity Report Section A Genera information about the Company 1 Corporate identification number L65993PN2007PLC Name of the Company Bajaj Auto Ltd. 3 Registered address Mumbai-Pune Road, Akurdi, Pune Website 5 Emai address brr.response@bajajauto.co.in 6 Financia year reported 1 Apri March Sector(s) that the Company is engaged in Automobie 8 Three key products/services manufactured/ provided by the Company 9 Tota number of ocations where business activity is undertaken by the Company Motorcyces and Three and Four wheeer commercia vehices Akurdi, Chakan and Wauj (Maharashtra) and Pantnagar (Uttarakhand) 10 Markets served by the Company India and 78 countries across the word Section B Financia detais of the Company 1 Paid up capita H crore 2 Tota turnover H 24, crore 3 Tota profit after tax H 3, crore 4 Tota spending on CSR as percentage of PAT Refer Annua Report on CSR activities 5 List of the activities in which expenditure in 4 above has been incurred Refer Annua Report on CSR activities Section C Other detais 1 Does the Company has any subsidiary company/companies? 2 Do the subsidiary company/companies participate in the BR initiatives of the parent Company? If yes, then indicate the number of such subsidiary company(s) 3 Do any other entity/entities (e.g. suppiers, distributors etc.) that the Company does business with, participate in the BR initiatives of the Company? If yes, then indicate the percentage of such entity/entities [Less than 30%, 30-60%, More than 60%] Yes (for detais, refer Note 1 of Consoidated Financia Statements) No, the BR initiatives of the Company are imited to its own operations No, the BR initiatives of the Company are imited to its own operations 1

2 Bajaj Auto Limited Section D BR information 1 Detais of Director(s) responsibe for BR (a) Detais of the Director responsibe for impementation of the BR Poicy DIN Name Designation (b) Detais of the BR head DIN (if appicabe) Name Designation Pradeep Shrivastava Executive Director Not appicabe Kevin D sa CFO Teephone number (020) E-mai id kpdsa@bajajauto.co.in 2 Principe-wise BR poicy/poicies Incuded in this report 3 Governance reated to BR Incuded in this report Section E Principe-wise performance 1 Principe-wise performance Incuded in this report Preface Bajaj Auto Ltd. ( BAL or the Company ) presents its fifth Business Responsibiity Report (BRR), as mandated by Securities and Exchange Board of India (SEBI) and in ine with the Nationa Vountary Guideines on Socia, Environmenta and Economic Responsibiities of Business (NVGs) as reeased by the Ministry of Corporate Affairs in Juy The business responsibiity performance of the Company is assessed annuay by BAL s Board of Directors. Principe 1: Businesses shoud conduct and govern themseves with Ethics, Transparency and Accountabiity Ethics, transparency and accountabiity are centra to BAL s business phiosophy. The Company beieves that trust, integrity and credibiity are key eements in creating vaue for its stakehoders. In order to ensure that these principes are adhered to, BAL adopted a Company-wide Code of Conduct (CoC) in It describes integrity, cutura and good working norms as we as the process to address any vioations. A BAL empoyees are required to adhere to the CoC s requisites and they are introduced to the same during induction. The CoC aso contains a Grievance Redressa Poicy and a Whiste Bower Poicy which enabe empoyees to raise concerns to the Company s Management. No compaints were received with respect to the above two poicies in the year There is a separate CoC specificay appicabe to the Company s Directors and Senior Management. It states that Directors and Senior Managers sha observe the highest standards of ethica conduct and integrity and sha work to the best of their abiity and judgment. A Directors and Senior Management personne have affirmed compiance with the CoC. A decaration to this effect, signed by the Managing Director, is given in the Annua Report. The Company is aso signatory to the Mode Code of Conduct deveoped by Confederation of Indian Industry (CII). It seeks to promote ethica practices in business and was signed by the Company s Executive Director on 13 Apri Additionay, BAL is an industry partner of the Word Economic Forum s initiative, Partnership Against Corruption Initiative (PACI), and has a poicy of a zero-toerance towards bribery. 2

3 th ANNUAL REPORT Principe 2: Businesses shoud provide goods and services that are safe and contribute to sustainabiity throughout their ife cyce BAL is a firm beiever in the phiosophy that aigning business actions with sustainabiity goas ensures ong-term growth for the Company. It recognises that its business operations are dependent on the natura environment whie simutaneousy impacting it. Thus, it invests time and resources to ensure safety and resource efficiency at a stages of the product ife, incuding product deveopment, pant operations and suppy chain management. Product sustainabiity A BAL products are compiant with the environmenta standards in the Indian Centra Motor Vehice Rues (CMVR), as appicabe from time to time. This incudes reguating the tai-pipe emissions of air poutants such as Carbon Monoxide (CO), Hydrocarbons (HC), Nitrogen oxides (NOx) gases as we as particuate matter, as appicabe. For such compiances, a BAL modes are Type approva certified by the Automotive Research Association of India (ARAI). BAL aso ensures compiance with the Conformity of Production (COP) requirements for emissions, under CMVR. A existing BAL modes are BS IV compiant and certified by ARAI. Additionay, BAL ensures that modes which are exported to various countries meet the varying environmenta requirements appicabe for each country. In a preiminary study of BAL products, it was observed that their recycabiity and recoverabiity rates were 87% and 94% respectivey. BAL is constanty working towards improving the fue efficiency of its Two and Three-wheeer modes. It has introduced a few high fue efficiency modes, which are one of the best in the cass. Sustainabe sourcing BAL s Green Purchasing Poicy outines the Company s requirements for energy, water and natura resource conservation for the entire suppy chain. As per this Poicy, a major vendors are being certified for ISO and OHSAS management systems. An update is provided in the tabe beow: Vendor Custer ISO 14001/OHSAS certified Cumuative FY2016 FY2017 Chakan Wauj Pantnagar Tota A BAL pants have a custer of vendors ocated in cose proximity to the pant. BAL engages with its vendors through the Bajaj Auto Vendor Association (BAVA). Currenty, BAVA has 153 members out of, which 123 are ISO 14001/OHSAS certified. Going forward, the Company pans to make such certifications a mandatory requirement for a future vendors who want to become BAVA members. Cross audits are conducted among critica vendors by safety officers. These audits, aong with reguar BAVA meetings, enabe mutua earning. They provide the members with a patform to share their experiences, initiatives and best practices on various topics reated to environmenta, heath and safety (EHS), quaity improvement and ogistics efficiency. Another suppy chain sustainabiity initiative is BAL s Tota Productive Maintenance (TPM) Poicy, practiced by Tier I and II vendors which has heped improve their operationa, human and cost efficiencies. As on date, 17 Tier I vendor groups and 222 Tier II vendors are practising TPM. In order to encourage adoption of TPM, BAL TPM Awards have been instituted to recognise vendors who are the best performers in TPM. 3

4 Bajaj Auto Limited To further ensure compiance with reguations and promote the adoption of good environmenta practices among vendors, third party ega and environmenta audit of vendors has been started in the Pantnagar, Wauj and Chakan custers. Aso, energy audit for one vendor in each custer was undertaken in the presence of other vendors of the custer. This heped a of them identify best practices in energy efficiency and oss eimination. As a resut, energy saving to the tune of 54 akh units (KWH) was achieved in the year Enhancing the efficiency of processes has dua benefits, it reduces their environmenta impact, whie aso effecting their cost efficiency in a positive way. To reduce the cost of ogistics, BAL focuses on the Bi to Ship to (B2S2) initiative which has now been extended to the Pantnagar custer. BAL aso conducts a Custer Kaizen Competition every quarter to extend its cuture of continuous improvement to vendors. As panned in the previous year, Swachh Bharat Abhiyan was roed out across a three custers this year. The activities under this program have progressed according to the road map. The initia ceaning and fencing activity was competed around the periphery of units, totaing to more than 28 kms. Aong with fencing, tree pantation was undertaken and more than 50,000 sapings were panted. More than 100 Swachhata raies, invoving 3,000 peope, were organised to create awareness. Waste reduction BAL makes continuous efforts to reduce the quantum of waste being generated, directy or indirecty, due to its operations. For this, it works cosey with its vendors, who now suppy more than 95% of the parts in reusabe pastic bins and troies. By adopting the phiosophy of continuous improvement, the quantity of corrugated box materia used for packaging has been reduced. Waste paint sudge generated in paint shops is burnt in incinerators to generate heat. This simutaneousy reduces the quantity of waste that needs to be disposed and the energy that needs to be procured. Principe 3: Businesses shoud promote the we-being of a BAL beieves that its empoyees are one of its greatest assets. Thus, it ensures the we-being of its empoyees by creating a safe, incusive and positive work environment that nurtures a high performance cuture for its workforce. In the year , BAL hired 1,715 empoyees, incuding 273 reguar empoyees, 1,425 trainees and 17 contractua empoyees. This has taken the tota headcount to 9,509. A four pants have Company recognised trade unions, and 48.73% of the empoyees are members of the same. Currenty, BAL has 25 permanent empoyees with disabiities. BAL encourages empoyment of women across the organisation. As on 31 March 2017, there were 362 women empoyees in BAL, incuding 128 reguar empoyees and 234 trainees, representing a 12% increase over ast year. The Company has a Poicy on Prevention of Sexua Harassment at Workpace (POSH) in pace to ensure the safety and security of women empoyees. As part of the Internationa Women s Day ceebration, a programme caed Shakti Women in Focus was conceptuaised. This was the way to ceebrate and engage the women workforce with the arger objective of positioning BAL as a woman friendy organisation. It underined the fact that women empoyees in the Company are safe, both emotionay and physicay and know that the environment at BAL is conducive to their deveopment and growth. With inputs from different stakehoders, a week-ong earning, engagement and recognition programme was simutaneousy hed across a the four ocations. This programme aso incuded short sessions on various reevant topics ike POSH, persona finance, stress and work ife baance, campus to corporate, sef-defense and heath & nutrition. 4

5 th ANNUAL REPORT BAL beieves that continuousy enhancing the skis of its workforce goes a ong way in increasing the overa productivity of the organisation. Therefore, it provides a its empoyees various avenues for ski upgradation. In the year , more than 3,350 empoyees were trained through more than 235 training programmes, spanning 6,138 man-days. Over and above this, 11,836 man-days of training was conducted for workers and ce members through TPM piars, which incuded Safety, Heath and Environment reated training of 5,477 man-days. BAL s fagship programme for eadership deveopment, Act to Adapt, which was designed in coaboration with IIM Ahmedabad, continues to nurture future eaders for the Company. Further, a deveopmenta efforts are aigned to the eadership competency framework (Anticipate Aign Adapt Act). The Reationship Management Program was introduced this year for empoyees in higher positions. This enabed smooth transition of empoyees into their new roes. The Company conducts reguar audits for its contract abour suppiers, which ensures that they are compiant with a appicabe norms. In March 2017, BAL has aso made the Charter of Fair and Responsibe Workpace Guideines for contract abour and coaborative empoyee reations. During the year , there were no compaints fied or pending reating to chid abour, forced abour, invountary abour, sexua harassment or discriminatory empoyment. Principe 4: Businesses shoud respect the interests of, and be responsive towards a stakehoders, especiay those who are disadvantaged, vunerabe and marginaised BAL is an equa opportunity empoyer and ensures that there is no discrimination of any type for sociay disadvantaged sections in the work pace. To formaise its commitment, it aunched the Code of Conduct for Affirmative Action in 2006, which ensures that preference is given to peope from sociay disadvantaged sections of the society, provided merit and other business considerations are equa. In ine with affirmative action, in the year , BAL recruited 1,715 new empoyees of which 142 (8.28%) beong to schedued castes and schedued tribes. Principe 5: Businesses shoud respect and promote human rights The Company is dedicated to uphod the human rights of a its interna and externa stakehoders. It ensures compiance with a appicabe aws pertaining to human rights. A ega compiance report is submitted to the Company s Board of Directors on a quartery basis. There were no compaints on vioation of human rights in the year Principe 6: Business shoud respect, protect and make efforts to restore the environment BAL continuay strives to minimise the environmenta impact of its operations through sustainabe practices and responsibe use of natura resources. Further, it is committed to creating and preserving a cean environment and society. BAL is dedicated to the continua improvement of its safety, occupationa heath and environmenta performance. It continues to remain in fu compiance with a appicabe reguations. BAL s Safety, Heath and Environment (SHE) Poicy guides the decisions and operations of the Company. Safety creates a safe working environment and ensures that the risk of accidents is minimised. Heath covers provision of individua heath check-ups, worker training on hygiene and heath practices, access to safe drinking water, noise reduction etc. Environment refers to the initiatives that reduce air, water and and poution, as we as management of hazardous waste and resource conservation. 5

6 Bajaj Auto Limited Pant-wise highights of key environmenta initiatives are provided beow: Chakan pant Wauj pant Certificate of Merit (Automobie Sector) - Nationa Energy Conservation Award 2016 organised by Bureau of Energy Efficiency 2 MW Rooftop Soar pant being instaed - phase I-1.2 MW competed 12% reduction in energy consumption of the paint shop by reduction in emission height and instaation of energy efficient bowers. Aso, heat energy required for pre-treatment process in paint shop is sourced through heat recovery at the in-house incinerator. This serves 30% of tota heat energy requirement 4,000 cu. meter capacity of rain water harvesting pond restored Kaizens have resuted in reduction of pastic consumption by 6,014 kg/year and Corrugated box materia by 19,350 kg/year Harvested rain water used for construction purpose during expansion of the pant Green Buiding features incorporated during expansion-use of fy ash bricks, transparent roof for harnessing day ight, use of wind ventiators for human comfort and use of energy efficient ighting Chakan pant is certified with the atest version of ISO 14001, i.e. ISO Awarded Nationa Award for Exceence in Water Management 2016 by Confederation of Indian Industry (CII) Exceent energy efficient unit award at Nationa Leve by CII - GBC Use of Renewabe Energy increased by 41.27% to reach 58.47% of tota energy consumed 20% reduction in intensity of water consumption (cu. meter/vehice produced) 1.71% reduction in intensity of eectricity consumption (KWH/vehice produced) Five rain water harvesting ponds with a combined capacity of 70,000 cu. meter have been constructed Coaborated with vendors to hep them reduce their water consumption by 75% As part of the Swachh Bharat Abhiyan, ceaned more than 3,000 MT of garbage in association with vendors Pantnagar pant Akurdi pant Using soar energy to dry the sudge has reduced the weight of the sudge by 75%, eading to reduction in disposa cost Notwithstanding oad increase of approximatey 440 KVA, Kaizens have heped reduce power consumption by 401,100 units/year compared to ast year Kaizens have reduced PNG consumption by 35,052 SCM/year compared to ast year Kaizens have reduced water consumption by 10,850 k/year compared to ast year 31.32% of eectricity sourced from renewabe sources R&D Centre is a IGBC God Certified construction with the foowing attributes: 1. Radiant cooing % Day ight usage 3. Eectric vehice charging points 4. Energy and water conservation devices and fittings 5. Recharge pit for ground water recharge 6. Source segregation of waste 7. Low emitting materia used in construction and HVAC 1.11 MW rooftop soar pant instaed in March Tota instaed soar capacity is 1.22 MW 221,622 KWH reduction in eectricity consumption 25,000 cu. meter reduction in water consumption Booket distribution to raise awareness about eectrica safety 6

7 th ANNUAL REPORT Other Initiatives 100% of canteen waste at Akurdi, Pantnagar and Chakan is composted. Raies were organised at Chakan and Wauj to raise awareness about waste reduction. Both Wauj and Chakan are water positive pants with patented rain water harvesting structures. A Four Pants Certified under ISO 14001, 9001 and OHSAS Zero Effuent Discharge (outside pant). A pants have shifted from thinner to water based paints. A pants of BAL operate as per the Consent-to-Operate provided by the respective State Poution Contro Board (SPCB) and are within permissibe imits with regards to the emissions and waste generated. No show cause notice was received from the Centra Poution Contro Board or the respective SPCB. Principe 7: Businesses, when engaged in infuencing pubic and reguatory poicy, shoud do so in a responsibe manner As a responsibe member of various nationa as we as internationa associations, BAL activey engages in poicy advocacy. BAL presents its views on the setting of new industry standards and reguatory deveopments pertaining to the automotive manufacturing industry. It covers areas such as governance and administration, economic reforms, incusive deveopment poicies, among others. Some of the key associations of which BAL is member are: Confederation of Indian Industry (CII) Society of Indian Automobie Manufacturers Association of Indian Automobie Manufacturers Word Economic Forum Federation of Indian Export Organisations Business and Community Foundation Indian Federation of Green Energy Internationa Road Federation - India Chapter The Automotive Research Association of India Mahratta Chamber of Commerce, Industries and Agricuture NAFEMS Ltd. Nationa Safety Counci The Advertising Standards Counci of India Forum of Free Enterprise Indian Merchant Chamber Bombay Chamber of Commerce and Industry Principe 8: Businesses shoud support incusive growth and equitabe deveopment The Corporate Socia Responsibiity (CSR) activities of Bajaj Group are guided by the vision and phiosophy of its founder, ate Shri Jamnaa Bajaj, who embodied the concept of trusteeship in business and common good, and aid the foundation for ethica, vaue-based and transparent functioning. Bajaj Group beieves that true and fu measure of growth, success and progress ies beyond baance sheets or conventiona economic indices. It is best refected in the difference that business and industry make to the ives of peope. 7

8 Bajaj Auto Limited Through its socia investments, Bajaj Group addresses the needs of communities residing in the vicinity of its faciities by taking sustainabe initiatives in the areas of heath, education, environment conservation, infrastructure and community deveopment, and response to natura caamities. For society, however, Bajaj is more than a corporate identity. It is a catayst for socia empowerment and the reason behind the smies that ight up a miion faces. Its goodwi resonates in the two simpe words that ive in the coective consciousness of Indians-Hamara Bajaj. Guiding principes The Bajaj Group beieves that socia investments shoud: Benefit generations: The Company beieves in investment in resource creation for use over generations. The Company tries to identify sustainabe projects which wi benefit the society over ong periods. Educate for sef-reiance and growth: To usher in a growth-oriented society and thereby a very strong and prosperous nation, by educating each and every Indian. Promote heath: The Company beieves good heath is a pre-requisite for both education and productivity. Encourage for sef-hep: To guide and do hand hoding for sef-hep, individuay and coectivey to create exceence for sef and for the team. Be focused: The Company beieves that activities shoud be focused around ocations where it has a presence and hence can effectivey guide, monitor and impement specific projects. Target those who need it most: Care for the sections of the society, which are sociay at the owest rung irrespective of their reigion or caste or anguage or coour. Sustain natura resources: The Company encourages baanced deveopment and ensure east adverse impact on environment Growth with Mother Nature s bessings. Our Activities (Pease refer to the Annua Report on CSR activities for a detaied ist of partners and grant amounts) 1. Education The two fagship projects for Bajaj Auto Ltd. have been the Bajaj Education Initiative (BEI) and the e-learning Project. The BEI covers 76 ow cost schoos (a mix of private and government schoos) in Pimpri-Chinchwad area of Pune, and supports them with infrastructure deveopment and capacity buiding. The e-learning Project has reached more than 1,550 schoos ti date - covering Maharashtra and Rajasthan. Both of these are impemented by Jankidevi Bajaj Gram Vikas Sanstha, our Group NGO. In addition, Bajaj Auto aso supported schoo infrastructure deveopment, vocationa training for entrepreneurship, teach-to-ead as we as schoarships for meritorious students. Bajaj Auto is aso supporting Bharatiya Yuva Shakti Trust (BYST) in training 25,000 young persons in Aurangabad and Wardha to create 1,000 entrepreneurs in five years. Over 177 entrepreneurs have been created in the first two years of the project. 2. Environment and natura resources The extreme drought faced by many parts of the country, incuding in Maharashtra in and , has highighted the need for water conservation and increasing water avaiabiity. Bajaj Auto has been working with Jankidevi Bajaj Gram Vikas Sanstha (JBGVS) on this for a ong time and has now expanded the size and scope of this activity to make it a focus area in the coming years. 8

9 th ANNUAL REPORT Bajaj Auto, in partnership with other Bajaj Group companies, is supporting JBGVS in aunching the Bajaj Water Conservation Project (BWCP) at Aurangabad. BWCP aims to cover an area of 21,500 hectares over the next four years with JBGVS and is ooking for partner NGOs to take up an additiona 44,000 hectares. In addition, Bajaj Auto has supported Paani Foundation for water conservation work in Maharashtra. Bajaj Auto has continued its support to Swachh Bharat Abhiyan by taking part in Bajaj Majhi City Taka-Tak programme run by CRT, Municipa Corporation, Aurangabad and CII. This programme aims to make Aurangabad a cean city, with minima quantity of garbage going to andfis. Buk of the wet garbage wi be composted or used for bio-gas production and recycabe wastes wi be sent to a recycing agency. The process is on and is ikey to be competed by end of Starting , Bajaj Auto aso supported ICRIER in construction of a new green buiding. 3. Heath Bajaj Auto works with a wide array of partners on issues reated to heath. The supported projects incude projects on mid-day meas, cean drinking water, sanitation, bood banks, and pathoogy ab services in remote mountain viages, breast cancer research and vision care. Bajaj Auto and YCM Hospita Pune, in coaboration with Nationa AIDS Centra Organisation, have aso been operating the ART centre in YCM Hospita. This centre supports more than 5,000 patients currenty. Bajaj Auto has aso financiay supported Sri Aurobindo Society, Puducherry, to set up the Internationa Centre of Exceence for Integra Yoga. 4. Women s empowerment and sef-reiance Bajaj Auto has supported IISER, one of India s eading research institutes, in constructing a dedicated ha of residence for women research schoars. Bajaj Auto has continued to support the Banasthai Vidyapeeth (a women s university) in setting up a Hoste, a Bajaj Centre for Automation and Bajaj Law Schoo. Bajaj Auto aso supports the Kaiash Satyarthi Chidren s Foundation in its work on hoistic deveopment and empowerment of chidren. 5. Supporting armed forces and veterans Bajaj Auto has contributed H 1 crore to the Armed Forces Fag Day Fund. Bajaj Auto has aso supported Parapegic Rehabiitation Centre at Khadki, Pune, with 20 state-of-the-art wheechairs. 6. Rura deveopment and other projects Bajaj Auto has supported Sevagram Pratishthan at Wardha for renovation of Bapu Kutir and associated buidings. Bajaj Auto has aso initiated a partnership with Raja Dinkar Kekar Museum at Pune for renovation of the museum. Other supported organisations incude Socia Work Research Centre - Barefoot Coege (Tionia), Deveopment Initiative for Sef-Hep and Awakening DISHA (Pune), Chinmaya Organisation for Rura Deveopment (New Dehi), Prafua Dahanukar Arts Foundation (Mumbai) etc. 9

10 Bajaj Auto Limited Principe 9: Businesses shoud engage with and provide vaue to their customers and consumers in a responsibe manner BAL s phiosophy Distincty Ahead provides guidance for its customer engagement process. BAL activey interacts with its customers through a variety of patforms such as ca centres, web-based interfaces, deaer showrooms and service centres. The Company aso organises service camps at various ocations to interact with customers at a persona eve and sove their issues. BAL engages with its customers at different eves. In an endeavour to engage with its two-wheeer customers, BAL organises various riding activities in key markets. For its commercia vehice customers, BAL has programmes to empower current and potentia three-wheeer drivers. As part of its Driver Bane Maik initiative, contract drivers are assisted in purchasing their own vehices. The Swarozgar Campaign encourages rura youth to enter the three-wheeer business. The Certified Service Technician programme heps oca technicians by providing them the required toos and training. This heps the technicians increase their income, whie simutaneousy providing a wider network of trained technicians for BAL customers. The Company conducts reguar surveys with the deaers, brokers, roadside mechanics and its arge network of retaiers. It aso tracks customer satisfaction trends at pre-defined intervas for significant product aunches. To ensure that its customers remain safe whie driving its vehices, BAL provides an owner s manua with each vehice. The manua incudes safety checking mechanisms, do s and don ts and fue saving tips, thus encouraging consumers to use BAL s vehices in a responsibe manner. During the year , 124 cases were fied at the consumer forum, whie 398 cases are pending as on 31 March Hygiene factors in advertisements, such as dispaying hemets being used by a passengers on bikes and discaimers for advertisements with bikes performing stunts are ensured by the marketing department. BAL is a signatory to Advertising Standard Counci of India (ASCI), who can evauate and provide corrective recommendations for advertisements. There were no compaints received from ASCI in the year