SUSTAINABILITY REPORT 2016-17

index

Message from the MD & CEO 03 Paint and sustainability have always gone hand in hand. When applied on any product, it forms a
protective layer and becomes the first line of defence against wear and tear. It elongates usable life of
Sustainability & Us 04 buildings and products, thus reducing the demand for natural resources.

Product Responsibility 05 Paints are used for colour coding, be it on roads or in factories. They help avert accidents, enhance safety
and save millions of lives. They also contribute actively to good health and wellness by providing a
Environment 07 pleasant, lively ambience.

Health & Safety 17

At Asian Paints, India's largest manufacturer of decorative paints, it is our constant endeavour
23 to augment the sustainability quotient of our paints. We do this by enhancing the product
Community
characteristics of our paint, reducing our manufacturing footprint, and increasing social
Independent Verification Statement 29 well-being of local communities.
 sustainability & us
the MD & CEO
message from

We view our At Asian Paints, we engaged with various community representatives,

statutory authorities, NGOs and other manufacturing partners to
sustainability journey
understand and address key concerns. After careful assessment of their
as a marathon; inputs, we consolidated our sustainability agenda around four focus areas.
a journey of continuous
improvement, wherein
we work towards
bettering our own PRODUCT
Dear Readers, previous RESPONSIBILITY
performance. Green & Certi ed Products
For us at Asian Paints, FY 2015-16 was
Painting Services
about taking stock of our sustainability
interventions, assessing the gaps and
strategising ways of bridging them.
FY 2016-17 has been about surpassing We have focused on reduce, re-use & We strive to improve the well-being of
targets and setting more challenging ENVIRONMENT
recycle programmes in our manufacturing local communities by focussing on
ones in all areas of sustainability. units which have reduced material losses. Education, Health & Hygiene, Water Natural Resource Conservation
Management and Vocational Training.
This year, we have replenished more Our International Business Units (IBUs), Energy & Emission Reduction
fresh water than what we consumed in too, have posted reductions in water and Asian Paints Colour Academies Waste Reduction
our decorative business units. This has energy consumption. impart requisite skills to women so
been possible through our continuous
We continue to design and improve that they can undertake painting
efforts in:
strong processes in all matters of safety. assignments on their own.
HEALTH
1 Reducing our fresh water We have upgraded infrastructure for & SAFETY
consumption in non-product improving workplace safety. We have For any feedback or queries, do write to us
at sustainability@asianpaints.com Safety Management System
applications launched various safety programmes that
improve and drive behaviour based safety Building Culture & Capability
2 Groundwater recharge in all our employees. Occupational Health & Wellness
through various rainwater
harvesting structures. Asian Paints is committed to develop
products that are safe, durable and have
We have invested in real-time energy minimal environmental impact.
monitoring systems which will lead COMMUNITY
energy savings in our operations in 'Green Assure', our self-certi cation
Vocational Training
future. We are continuously increasing for premium products is an example
renewable energy contribution in our of our commitment to develop, Education, Health & Hygiene
K.B.S Anand
overall energy consumption. and market green products. Managing Director & CEO, Asian Paints Limited Water Management

For information on our business & corporate governance please refer to our 2016-17 annual report at https://www.asianpaints.com/more/investors/ nancial-results.html

03 04
 MAKING PAINT SUSTAINABLE ADDING GREEN TO OUR
PRODUCT PORTFOLIO
For a product to be truly sustainable, it must be so by design. The resolve to provide truly
green products is demonstrated by our use of sustainability leadership standards While all our products meet or exceed the environmental expectations mandated

product responsibility
such as Green SealTM and GS-U standard. In alignment to this commitment, we are
Green Assure - Our promise of a by the law of the land, we keep adding greener products to our portfolio to serve a
concentrating on removing/minimising restricted raw materials from our products.
two-pronged objective.
The aim is not just to make the world more beautiful, but also safer, through a systemic beautiful home that conforms
approach to paints and painting services. to true green standards. 1 To achieve excellence in green 2 To constantly develop safe
manufacturing. products for our consumers.

ENHANCING HUMAN-FRIENDLINESS
APEX ULTIMA PROTEK ROYALE ATMOS
1 Our in-house R&D team has 2 We have eliminated lead and
developed a range of other heavy metals in
ultra-low VOC colourants. decorative paints. A durable exterior emulsion that conforms Specifically developed as an eco-friendly
to VOC specifications, contains no air purifying paint, Royale Atmos reduces
hazardous materials like heavy metals (lead, indoor pollution levels by neutralising
3 We have replaced Highly Hazardous Raw Materials (HHRMs) from
our system and products, and also restricted any new entry. mercury, arsenic, chromium, cadmium), formaldehyde (a harmful pollutant) and
and toxic materials (carcinogen, mutagen, making the air healthier to breathe.
reproductive toxins, APEOs) as per the Paints usually have a lingering smell,
guidelines laid out by the International but Atmos emits a soothing fragrance
INITIATIVE INITIATIVE GS-11 (Green SealTM) standard. Based on post-painting and comes with the
nanotechnology, it protects exterior walls promise of Green Assure.
ELIMINATING LEAD RETHINK from dampness, algae, cracks, and colour Woodtech Genie Polish
fading. It comes with 10-year durability and
IN PAINTS / Pb <90 PPM SURFACTANTS received the FICCI 2016
5-year waterproofing warranty. award for the
Amidst the ever-changing landscape, one thing that has remained constant is our APEOs cause severe damage to the best green product
steadfast commitment to being truly green. We started this journey, about seven aquatic ecosystem and impair human in the chemical and
petrochemical sector.
years ago, with 'Lead & Heavy Metal Free Guarantee'. This was much before the health. Therefore, we took up the
government's legislation in 2016 banning decorative paints containing metallic challenge to substitute APEOs with
lead concentration more than 90 ppm. APEO-free surfactant. The substitution
process demanded multiple
We have developed an accurate and reliable test method for determining lead development and testing cycles
concentration and use it for screening all our raw materials and paint formulations. which lasted over 12 months.
This test method is accredited by National Accreditation Board for Testing and
Calibration Laboratories (NABL) ISO/ISE 17025:2005.

Today
all our
products
are below the
The Alkylphenol
TRANSFORMING PAINTING SERVICES
mandated
Ethoxylate (APEO)
lead limit. While paints and paint manufacturing advanced by leaps and bounds, the painting process
continued to remain the same across decades. Disruption to daily life, the smell of fresh
paint, weeks of cleaning after the painters left, all of this was a given for consumers. Asian
Paints Ezycolour Home Solutions transformed it all by providing unmatched colour
solutions and easy, stress-free painting services delivered within committed timelines. We
also offer green painting services that use only water-based, quick application, fast drying,
low-smell, green products. Applicators trained at the Asian Paints Colour Academy deliver a
smooth and delightful painting experience to our home solution customers.

To know more about Colour Academy refer to page 26.

05 06
 Paint manufacturing involves assembling of raw materials,
mixing, dispersing, thinning, adjusting, filling and
warehousing. Like all industrial processes, this entails an
AWARDED A
environmental impact. At Asian Paints, we tread responsibly
and judiciously to minimise this footprint and assess COMMENDATION

environment
ourselves against demanding global standards. FOR SIGNIFICANT
ACHIEVEMENT IN
ENVIRONMENT
MANAGEMENT AT THE
CII - ITC SUSTAINABILITY
AWARDS 2016

PATANCHERU PLANT
WAS AWARDED CII
NATIONAL AWARD FOR
EXCELLENCE IN WATER
MANAGEMENT - WITHIN
THE FENCE - 2016

118%
water replenished in FY 2016-17

15 million
units of electricity consumed in FY 2016-17
was from renewable sources

65%
reduction in specific industrial effluent
generation as compared to FY 2013-14

07 08
 Our business is divided into two major segments. The Decorative Paints Unit which caters
Rohtak
Kasna
to the Indian market, and our International Business Unit, which focusses on high growth NATURAL RESOURCE
emerging markets.
CONSERVATION - WATER
Ankleshwar

Khandala
DECORATIVE BUSINESS UNITS - INDIA
Patancheru
PROJECT NEW WATER MANAGEMENT BEYOND PREMISES
Sriperumbudur

We endeavour to adopt an inclusive approach to protect and conserve environment. We Surface and groundwater resources are declining rapidly. As a responsible corporate citizen,
have continued to make progress under each of the six key themes of Project NEW. we are determined to make a positive impact in communities surrounding our operations.
All six units are ISO 14001 certified
We have undertaken programmes to contribute towards enhancing water availability for

N E W
and zero liquid discharge operations. Natural Energy & Waste them. All our plants use water judiciously and make significant efforts to facilitate water
Resource Emission Reduction availability in nearby communities through:
Conservation Reduction
1 Integrated 2 Check dam 3 Reducing freshwater
watershed and lake consumption within
development desilting our factories
progress dashboard

PARAMETER PERFORMANCE 2016-17* TARGET 2020

100% INITIATIVE

Water
Replenishment118%
REPLACING FRESH WATER WITH SEWAGE WATER
Sriperumbudur

66% This year, our Research and Technology Group, Ion Exchange, and the Sriperumbudur
plant team initiated a pilot project for use of municipal sewage water in production.
All the batches passed our stringent
quality tests with flying colours. We are
Reduction in Specific Non-process
Freshwater Consumption 58% Samples of secondary treated water were sent to MoEF and NABET accredited
now in the process of commissioning a
similar mobile treatment unit. Also under
environmental labs for analysis on 40 critical parameters. A pilot plant for minor tertiary evaluation is the feasibility to cascade this
treatment was commissioned at Perungudi CSTP. A trial load of 20 KL was processed, model across all our factories.
and four paint batches were produced using this water.

33%
This
Reduction in Specific
Electricity Consumption 23%
innovative idea
will help us reduce
our fresh water
36% footprint by

Electricity from
Renewable Sources 22%
100%
TERTIARY

75% WASTEWATER FROM CHENNAI CITY TREATED WATER

Reduction in Specific
Industrial Effluent Generation 65%
MUNICIPAL
CSTP TERTIARY
45% TREATMENT UNIT

TREATED
Reduction in Specific
Hazardous Waste Disposal 24%
WATER DISCHARGE
INTO SEA
All reductions are w.r.t.
base year FY 2013-14 *Actual performance for FY2016-17 is assured by DNV-GL.

09 10
 WATER MANAGEMENT WITHIN PREMISES ENERGY &
EMISSION REDUCTION
We closely monitor the water consumed at every stage of the paint manufacturing process
and have taken several conservation measures to reduce our water footprint. During the
year, we introduced a range of initiatives across our units, which include:
ELECTRICITY CONSUMPTION
1 Installation of 2 Deployment of 3 Planting native
Reverse Osmosis scrapper for species of plants
At Asian Paints, we have a two-pronged approach to energy management. While we are
Multiple Effect temperature sensor that help enhance
Evaporator cleaning in place of groundwater taking measures to reduce energy consumption and enhance per watt productivity, we are
treatment systems jet cleaning recharge also diversifying our energy mix to cut emissions and our dependence on fossil fuels.

4 Using pressurised 5 Utilising treated 6 Using INITIATIVE OUR ENERGY CONSERVATION INITIATIVES FOCUS ON TWO STRATEGIC AREAS Few of our energy
system for water in cleaning rainwater in conservation initiatives
cleaning and and utility manufacturing • Pressure-based Pumping System
backwashing operations processes USING ADIABATIC in Utilities
COOLING TOWER TO
• Installing LED Lamps
MINIMISE WATER USE
Khandala • Motion Sensors

PROCESS OPTIMISATION OPTIMISATION OF ELECTRICAL • Installing VFD Chillers

Typically, utility operations account for
AND AUTOMATION EQUIPMENT AND LIGHTING
more than 35% of our non-process
water consumption. The water lost due Specific and absolute energy consumptions are tracked daily at individual factory/block level
to evaporation in cooling towers is a and at consolidated manufacturing level. We have implemented a comprehensive Energy
significant contributor to this. With a Management System (EMS) software across all plants. Individual energy cells in each
view to reduce water usage, we
manufacturing plant not only ensure continued focus on energy, they also capture
installed Adiabatic Cooling Tower
exhaustive energy data which can be analysed for further improvements. Apart from this,
(ACT ) at our Khandala site. These
we have undergone external energy audits to strengthen processes.
cooling towers provide dramatic water
savings as compared to water-cooled
50 million litres of harvested equipment by utilising water only when
rainwater utilised by our plants ambient temperatures and system INITIATIVE INITIATIVE
demand necessitate it. The usage of
cooling pads and a well-crafted water ARRESTING CHANGING
management system help maximise AIR LEAKAGE RAW MATERIAL
adiabatic efficiency while minimising
water consumption.
Business-wide ADDITION SEQUENCE
Ankleshwar | Kasna |
It was obser ved that 50% of
Sriperumbudur | Khandala
compressed air was being lost to
ACT saves leakages leading to non-productive Due to high viscosity of the mill base,
approximately energy consumption and higher
grinding contributed to almost 60%

90%
water in comparison to
costs. A team was formed to conduct
fortnightly air audits, convert multiple
FRL to common FRL, and replace
of the power consumption in the
Twin Shaft Disperser (TSD). Shifting
the conventional cooling thickener addition from TSD to
faulty diaphragms in actuator valves.
tower system Mixer and adding it in slurry form
As a result, air leakages reduced from
52% to 32%.
manifested in 20% power saving in
each paint batch.

Arrested
leakages of about Energy
120 cfm, saving savings of
more than more than

1,329,000 units
392,000 units

11 12
 RENEWABLE ENERGY WASTE
To reduce our dependence on fossil fuels, we substantially augmented our investments
REDUCTION
New solar and wind installations
in renewable energy projects. As part of our Renewable Energy strategy 'RE36', we are during the reporting period
working towards sourcing 36% of the total electricity requirement at decorative paint boosted our total installed capacity
plants through renewable sources by 2020. to 15.58 MW and helped us end the WASTEWATER MANAGEMENT
year at RE 22% as against the target
of 18.6%. Over the years, we have diligently worked towards reducing the quantum of wastewater Few of our initiatives
Wind Energy Contribution generated and have consistently enhanced our ability to treat it in an environment
11.7% of total electricity consumed friendly manner. In 2016-17, we recorded a 65% reduction in specific industrial effluent • Sustained wash water reuse schemes
generation against the target of 50%.
• Total Dissolved Solids based
Our Wind Projects blowdown in Cooling Tower
generated over INITIATIVES • Use of Magna ushing in emulsion

8,000,000 units
REUSE OF RM PIGGING WASH WATER
Rohtak | Khandala
block & reuse of wash water in process

Pigging Lines and Direct Lines are two methods used to add liquids during paint
processing. Pigging lines transfer multiple materials through the same pipes and need
to be cleaned with air and water between cycles. Water used to clean the pipelines Reduction of
Solar Energy Contribution gains traces of raw materials and hence, has high organic load. This water is then effluent generation
10.2% of total electricity consumed treated at our ETPs. Our Rohtak and Khandala plants used to generate nearly 4,200 KL
by more than

Our Solar Projects

generated over
per year of such wash water. We have now developed a reuse scheme for utilising this
water in selected emulsion paint processing. This leads to lower consumption of fresh
water and reduces effluent generation.
900,000in FY 2016-17
L

7,000,000 units

HAZARDOUS WASTE MANAGEMENT

Since FY 2013-14, our Scope 1
EMISSIONS emissions have reduced by We follow the classical '3R' strategy: Reduce, Reuse and Recycle for waste management.
51%, while Scope 2 emissions
Systems and procedures have been developed through which we repurpose used material
Emissions in the paint industry stem from various sources such as the manufacturing have come down by 3%. and reintroduce excess material into the production process. We keenly monitor and
process, filling and cleaning, mixing, storage of solvents and paint application. We manage material efficiency, to reduce resource consumption and avoid waste generation.
consistently strive to reduce Green House Gas (GHG) emissions at every stage. Few of our initiatives
Since FY 2013-14,
• Utilisation of waste paint in
our total emissions have
In MT of CO2e DISTILLATION OF WASH WATER eco-grade paint
reduced by 19%, despite
Khandala • Reduction in hazardous 'putta'
increase in production.
generation by replacing it with
Apcolite Machine Colourants (AMC) are transparent acrylic sheets
used for tinting base paints, which are
• Installation of waste solvent sludge
transferred through pigging lines. The shade
52,471 54,589 50,753 Avoided over distillation unit
changeover process generates significant

2,600
GHG emission by using
MT
amount of wash water. In FY 2016-17, more
than 500 KL of AMC wash water was
generated at our Khandala unit. Treatment
Scope 1 Reduction of
25,073 15,365 12,118 about 1 million m3 of of such large quantity of wash water was a
Scope 2 hazardous waste
biogas as alternative concern, so we evaluated a method of
fuel in place of diesel generation by more than
Total 77,544 69,954 62,871 distilling the wash water.

FY 2013-14 FY 2015-16 FY 2016-17

Note: Greenhouse Gases include Carbon dioxide, Methane and Nitrogen Oxide. We have used IPCC conversion
in FY 2016-17
After numerous trials, the results turned out to be positive. Now the condensed water is
sent to the ETP, while the residue of about 5% is disposed responsibly as hazardous waste.
40,000
in FY 2016-17
KG
factors for all calculations | Bio-genic emissions + Emissions avoided due to use of bio-gas.
Emission data for FY2016-17 is assured by DNV-GL.

13 14
 INTERNATIONAL BUSINESS UNITS INITIATIVES

ADDING INTELLIGENCE
The environmental threats, concerns as well as opportunities are universal and revolve Trinidad | Sri Lanka | Egypt
around energy, water, waste, emissions and material management. Hence, the core
TO ENERGY MANAGEMENT
Singapore | Oman | Nepal Oman
ethos and strategy to promote environment-friendly measures remains the same for
us in India and across International Business Units. As volume of production and Jamaica | Fiji | Dubai | Bahrain
Greenfield projects offer us Thanks to the iMCC system, the plant is
product range differ, the environmental targets are different for our Decorative Paint Barbados | Bangladesh unparalleled opportunity to embed reaping the following benefits:
Units in India and our International Business Units.
sustainability from the start. While Monitoring of important electrical and
setting up our greenfield plant at operational parameters for equipment
Sohar (Oman), we were looking for a
comprehensive electrical system In-built timer facility to control operation
PARAMETER PERFORMANCE 2016-17 TARGET 2020 of certain equipment and save energy
Few of our initiatives which would enable equipment level
progress dashboard

energy management and enhance Auto generation of customised

WATER & WASTEWATER the overall energy productivity. energy reports
29% MANAGEMENT
Enhanced motor protection
• High pressure jet pumps help optimise After in-depth evaluation, five
Reduction in total specific
water consumption 23% water usage in cleaning processing
vessels
intelligent Motor Control Centres
(iMCCs) capable of communicating
Ease of scheduling preventive
maintenance and receiving alerts At an aggregate, the plant reduced
specific power consumption from
important electrical and operational

105 kWh/KL
• 100% reuse of treated domestic Maintaining detailed equipment history
effluent in Emirates parameters for each of the
Systematic analysis of breakdowns
38% • Treated water used for cooling in
connected equipment were in FY 2015-16 to

84 kWh/KL
installed. A centralised workstation Reduction in physical footprint by
Sri Lanka and for gardening in Oman,
Reduction in specific Nepal and Bangladesh has been set up to monitor the status more than 30%, compared to
non-process water consumption 35% and historical trends. conventional MCC in FY 2016-17.

ENERGY MANAGEMENT

14% • Daylight harvesting through

translucent roo ng sheets in Jamaica
MAKING SOLAR ENERGY CLICK
Reduction in specific
power consumption 6% • Installed timers on street lights in Fiji
IN THE CARIBBEAN ISLANDS
• Migration to new generation Barbados and Jamaica
processing equipment in Fiji
With scarce petroleum resources, Currently, about 31% of the total power

37% high energy prices and a looming

threat of climate change, solar energy
requirement of our Barbados plant is met
through solar energy.
Reduction in specific is ideal for the small island economies
industrial effluent generation15% of the Caribbean. Unfortunately, the Similarly in Jamaica, an 80-kWp project,
penetration of solar energy in the covering 18% of the plant's energy
region is still limited due to various requirement, was commissioned in March
socio - economic, political and 2016. As of FY 2016-17, this is the biggest
WASTE MANAGEMENT institutional issues. solar installation among our IBUs.

• Accounting standards de ned for Against this backdrop, we decided to Our Barbados, Jamaica and Bangladesh
reporting hazardous waste OUTCOME
take up solar energy projects at units have solar power plants with
20% • Hazardous waste as fuel for cement Berger Paints, Barbados and Jamaica, Significant reduction in our total installed capacity of

22% Increase in
hazardous waste
plant has been implemented in
Sri Lanka, Emirates and Bangladesh
and started with a 20-kWp project
at Barbados in FY 2014-15. The grid
tied system started paying off
carbon footprint -

Total solar energy produced

126 kWp
An additional
immediately and the benefits
encouraged us to commission
another 20-kWp project.
from both units in FY 2016-17
was 139,774 kWh.
70 kWp
unit is being planned at Fiji
Note: This does not include Ethiopia, Indonesia and Cause way-Lanka
Base year 2013-14 except for hazardous waste where it is 2015-16

15 16
 The safety and well-being of our employees is
paramount and non-negotiable. We follow industry
accredited best practices on health & safety across OUR GOAL IS TO IMPROVE SAFETY CULTURE TO
our operations, and conduct all our processes in a ACHIEVE ZERO ACCIDENTS, ZERO OCCUPATIONAL
responsible manner to safeguard our employees.

health & safety

ILLNESS, & ZERO INCIDENTS OF PROPERTY DAMAGE

18,137,661 man-hours worked during FY 2016-17

10,000+
Safe Unsafe Act (SUSA) conversations
across cadres in FY 2016-17 More than INR

100
million

CAPEX implemented
for Health & Safety in FY 2016-17

17 18
 SETTING THE COMMUNICATING SAFETY
STANDARDS WITH CLARITY PERFORMANCE
To maintain and reinforce a robust safety culture at Asian Paints, we are setting the highest A clear and concise communication Over the last three years, our efforts have yielded positive results with all parameters
standards and communicating them across the organisation. network has been deployed for showing an encouraging decline.
contract workmen and third parties
Ensure elimination of risk Ensure strong operational so that they can easily understand
at the introductory stage control measures by and follow safety requirements.
itself or substitute with instituting standard
low-risk measures operating procedures to
mitigate and manage SAFETY CULTURE
OHS risks
Reduce the levels of Establishing policies, plans and procedures
exposure through proper aimed at reducing accident rates are
engineering controls and use Undertake regular
important, but a strong safety culture
of ultra-modern technologies assessment for potential
hazards, carry out emerges only when employees share the
occupational risk analysis, organisation's vision. At Asian Paints, we are
Institute a well-de ned safety identify practical control building a culture where employees
management system based measures and evaluate the exhibit and practice safe behaviour.
on the guidelines of British efficacy of implemented
Safety Council standard control measures

Record and analyse previous

Implement emergency incidents to identify areas of To strengthen our safety
management plans improvement and minimise culture, we introduced several
future incident rate interventions in FY 2016-17

Continued screening of highly

Run structured Ensure horizontal hazardous materials at the
programmes around deployment of identi ed introductory stage
cultural intervention practices at all sites PARAMETER 2014-15 2015-16 2016-17

Total Reportable Conducted capability building

(&) (&)
Incident Severity
Rate
447.54 401.47 32.42 workshop for plant safety
managers and executives

OUR SAFETY REVIEW FRAMEWORK Total Reportable

Incident
0.66 0.52 0.39
Developed a unique safety park at
Frequency Rate Khandala for safety induction of
Occupational Health and Safety is centrally governed by a Safety Council and is contract employees
supplemented by plant level Apex and Department Safety Committees. Health and
safety aspects are covered in all formal agreements with trade unions and contractors,
and are a part of wage settlements. 100% of our
Lost Days 7,407
*
6,888
*#
588
($)
Completed a pre-certification
audit based on British Safety
Council 2016 standard in January
manufacturing facilities Reportable 2017 at the Khandala site
follow strict industry Incidents 11 9 7
CORPORATE standards of safety Conducted electrical safety audit
LEVEL and have an and arch flash assessment with
Number of
emergency response work-related
plan in place. fatalities 1 1 0 reference to NFPA 70E at all sites
by an external expert

PLANT TIMELY Total Released dust explosion standard

LEVEL Safety Council provides
REPORTING man-hours
worked 16,550,664 17,156,896 18,137,661 for handling dust explosive
oversight to ensure
continuous performance prone powders
Note: The above table includes data for our Ankleshwar, Kasna, Patancheru, Sriperumbudur, Rohtak, Khandala, Penta, Phthalic,
Sarigam, Taloja & Turbhe units in India.
Developed visual Lock Out Tag
* Includes 6,000 man-days lost per fatality for CY2014 & CY2015
(&) Total Reportable Incident Severity Rate in CY2014 & CY2015 was high due to 6,000 man-days lost in each year due to fatality Out (LOTO) procedures for
# Includes 365 man-days lost on account of one injury that occurred in 2014
Apex & Department Monthly to VP-Supply Chain
($) Includes 366 man-days lost on account of one injury that occurred in 2014
Khandala and Rohtak site
Safety Committees ensure and
on-ground support Quarterly to Executive Council Total Reportable Incident Severity Rate in CY2014 & CY2015 was high due to 6,000 man-days lost in each year due to fatality.

19 20
 CASE
STUDY
INITIATIVES

OHCS MINIMISING MAN-

STRENGTHENING OUR FIRST LINE OF DEFENCE MACHINE INTERFACE Making safety everyone's responsibility
Patancheru | Kasna | Rohtak | Khandala All Plants ANKLESHWAR
After the successful upgradation of the Patancheru Occupational Health Centre (OHC) M an-machine inter face in the
in FY 2015-16, this year we revamped the OHCs at Kasna, Khandala and Rohtak. Over industrial settings is inevitable and For safety to become second nature,
and above the ultra-modern equipment, a full-time FMO and round-the-clock often the cause or source of accidents. it must become part of everyday
paramedic staff have been stationed at every OHC. New ambulances with cardiac With the objective of eliminating b e h a v i o u r. T h e m a i n g o a l o f
support were procured for Rohtak, Kasna and Patancheru. such incidents, we trained our people, Behaviour-based Safety (BBS) is to
sensitised them on engineering focus people's attention and action
c o n t ro l s, a n d s t re a m l i n e d t h e on daily safety behaviour and target
movement of vehicles inside the changes in employee behaviour as a
factory. means of preventing injuries. A BBS
pilot project was initiated at the
Ankleshwar plant in May 2014.

KAVASAM
STRENGTHENING BBS proposes that safety
OUR SAFETY culture metamorphoses
CULTURE through 5 stages - from
Sriperumbudur 'pathological', through
Kavasam, a safety culture 'reactive', 'calculative',
HEAVY EQUIPMENT transformation programme was
'proactive' and nally the
MAINTENANCE PHILOSOPHY launched during the reporting period
Rohtak to embed safety deeper in the 'generative' stage. At the
organisation's culture. Under this
time of introduction, the
A heavy equipment maintenance programme was introduced at Asian Paints to programme, we encouraged workers'
ensure safe working practices, eliminate injuries, maintain equipment efficiency, involvement in safety initiatives, plant was at the
enhance productivity and meet environmental compliance. monitored safety per formance,
calculative stage of safety.
addressed shortcomings,
Under this programme, we identified critical
institutionalised safe work procedures,
maintenance activities involving heavy objects and
established rules that promote safe BBS has yielded encouraging results at the Ankleshwar plant:
carried out risk assessment to keep our personnel
behaviour and imparted employee
injury-free. The programme also oversees the Proactive Reporting of Incidents: Unsafe Condition vs. Unsafe Act:
training.
procurement of equipment for handling heavy Number of incidents reported per An Unsafe Act is performance of a
objec ts, and releases standards for safe employee per month has gone up task in a manner that may threaten
maintenance philosophy. from 0.04 to 1.61. More importantly, the health and/or safety of the
more than 95% of the reported worker. Whereas, an Unsafe
incidents were addressed and Condition is a condition in the
TAKING SAFETY BEYOND closed during the reporting period. workplace that is likely to cause
personnel injury or property
OUR FACTORY GATES Increase in positive damage. There has been a positive
reinforcement of safety: change in both - unsafe conditions
Transporting our products from our manufacturing
The ratio of safe act to unsafe act being minimised and unsafe acts
facility to a distribution centre and to the end user
has gone up positively. This means being identified.
safely, securely and efficiently, is vital for our business.
that our workforce is increasingly
To beef up transport safety, we undertook the

10,000+
performing more safe acts than
following measures:
unsafe ones.

1 Case-to-case monitoring 2 Introduction of penalty clauses Safe Unsafe Act (SUSA)

Safety assessment of the plant done during FY 2016-17 concluded that
conversations across
3 Enhanced engagement 4 Emergency management Ankleshwar plant had moved one level up to Proactive Stage, where it is seeking
cadres in FY 2016-17
with purchase team further improvement in safety even in the absence of incidents. Encouraged by
this success, BBS was introduced in the Patancheru plant this year.
Our vision for transportation safety includes zero leakage, zero
overloading and capability to address in-transit emergencies.

21 22
 Asian Paints has always encouraged multi-stakeholder
participation, nurtured grassroots development and enabled
micro-entrepreneurship. We have always partnered with our OUR CSR STRATEGY RESTS ON TWO PILLARS - LEVERAGE
stakeholders and believed in sharing the fruits of socio-economic ORGANISATIONAL STRENGTHS TO MAXIMISE VALUE AND
progress. This business philosophy stems from our belief that we

community
are part of the community, and we owe them for what we are.
GENEROUSLY SHARE THE VALUE WITH LOCAL COMMUNITIES
AROUND OUR FACILITIES.

47.84

crore
INR
invested in CSR in FY 2016-17

50,000+
patients treated by our Mobile Medical Unit

30,000
individuals certified through
11 NSDC certified courses
since 2014

23 24
 CSR INVESTMENT VOCATIONAL TRAINING
Community need is the foundation for all our programmes. Our Corporate Social For India to encash its demographic dividend, there is an urgent need
Responsibility Committee provides strategic direction and ensures professional rigour. The to impart vocational training to the youth and make them
four core developmental areas that we address are - education, vocational training, employable, productive and relevant in today's economy. Only then
healthcare & hygiene and water. will we be able to create an inclusive society.
INR crore
HEALTH &
EDUCATION 21.20 a HYGIENE 3.76 Total CSR spend INITIATIVE

VOCATIONAL
TRAINING 19.23 WATER 3.65 47.84 crore
ASIAN PAINTS COLOUR ACADEMY
In FY 2016-17
In 2008, we started our first Asian Paints Colour Academy (APCA) in Chennai to
transform unskilled labour into skilled professionals. The training helps painters and
contractors become more productive and empowers them to earn more.
340
women across
the country were
EDUCATION a At present, there are ten APCAs situated in metros like Mumbai, Kolkata, Hyderabad, etc.
Each of them is equipped with modern training facilities such as AV classrooms,
trained & certi ed

professional painting workshops and painting booths. In addition, there are six mobile
Continuing with our commitment to provide access to quality education, especially to INITIATIVE
Colour Academies operating in areas such as Kerala, Punjab, Chandigarh, Maharashtra,
the marginalised communities around our plants, we sustained ongoing projects and In FY 2016-17
Uttar Pradesh and upcoming places like North-East, Bihar and Jharkhand.
HOLE IN THE WALL
20,800
initiated new ones.
Ankleshwar APCA is a National Skill Development Corporation approved training partner and has
been supporting the government's Skill India Mission. Skilling painters and contractors individuals were
ONGOING PROJECTS NEW PROJECTS 'Hole in the Wall' is a globally acclaimed, has brought them respect and recognition. We have also enrolled and trained women certi ed in
MagicBus Sports for Project Rainbow minimally invasive education painters supporting their economic empowerment. 11 NSDC courses
1 1
Development Programme methodology, in which children play
Imparts digital literacy to rural
Promotes holistic development students through a solar powered with a computer in an unsupervised
of children. computer lab. environment and learn through self-
discovery. We undertook this project, in
2 Read India Programme 2 UDAAN partnership with NIIT Foundation, to HEALTHCARE & HYGIENE
Being implemented in partnership reduce the digital divide between the
Provides scholarships to
with NGO Pratham, it helps improve children in villages around Ankleshwar Ill-health hits the marginalised community the hardest. Healthcare expenses burden
economically marginalised and
numeracy and reading abilities for meritorious girl students. and those in the bigger towns. Along their pockets, whereas illness robs them of their livelihood. Poor sanitation and unsafe
students from class 3 to 5 in schools with computer literacy, the programme drinking water are among the key causes of many preventable diseases. By promoting
near Khandala and Patancheru. also included a module to enhance the
3 Project STEADY access to healthcare, better sanitation facilities and safe drinking water, we hope to make
quality of education imparted to these a positive impact.
Association with Career counselling, parent
3 children. The content of the module is
counselling and self-defence
Gattu School, Ankleshwar structured in line with the NCERT
classes for the girl child. INITIATIVE Extended treatment
Revamped classrooms and textbooks, and is taught through to more than

50,000
provided digital teaching animations, games and general
enablers. learning sessions.
MOBILE MEDICAL UNITS
Company-wide
Assessment carried out by the NIIT elderly bene ciaries
Foundation reported substantial Our Mobile Medical Units provide quality medical care to the underprivileged and elderly with various ailments
improvement in: in their own vicinity. Apart from regular medical services, special camps like diabetes
screening and dengue awareness are also conducted.
Understanding computer
basics. Students could use the Current year bene ciary dashboard:
internet for assignments and
Eight health camps Restored eyesight of 22 Disability aids
give presentations.
conducted as part of bene ciaries through free distributed to
ood relief in Chennai cataract and intraocular more than 100
The performance of students in providing treatment to lens surgeries. elderly people.
mainstream subjects such as 1,759 ood-affected
Spectacles distributed to
English, Mathematics and Science. individuals.
134 bene ciaries.

25 26
 INITIATIVE TRANSFORMING THE URBAN LANDSCAPES
ACTING AGAINST CATARACT Asian Paints aims to create awareness and encourage appreciation towards the country's diverse
art forms by spreading art across public spaces in India. We also work towards leveraging art to
Sriperumbudur
make public spaces more interactive, and reinvigorate neglected parts of the city. It was thus
Senior citizens constitute approximately 10.5% of the total population in our country. natural for us to whole-heartedly support St+art foundation whose mission is to make art more
In rural areas, incidence of unoperated cataract is very high due to unavailability of accessible to the public and in the process bring about a colourful renewal of urban spaces.
treatment and/or lack of financial means. This year, our Sriperumbudur unit, with the
aid of HelpAge India and Sankara Eye Care Hospital, undertook the 'Cure Blindness'
programme to help restore sight among those suffering from cataract.
During our association with St+art we have worked with local and international artists on
various street art projects across Mumbai, Delhi and Bengaluru to enhance the
Colour
is an integral part in
Cataract surgery aesthetic appeal of the city and create uniqueness in our communities.
the transformation
successfully of any space and is
11 free eye screening 981 individuals were Cataract was detected performed on at the heart of

44 & 56
camps were held at screened, which in 138, out of which 100 everything we do
different locations in included 372 men underwent surgery post at Asian Paints
Tamil Nadu and 609 women counselling men women

SECURING AVAILABILITY OF WATER

Water stress is a harsh reality in India and it is the collective responsibility of all stakeholders
to help conserve this precious resource. We are spearheading conservation projects like
rainwater harvesting and integrated water resources management.

INITIATIVES

HARVESTING WATER
HELPS HARVEST MORE CROP
Ankleshwar
Under Project NEW, our Ankleshwar plant implements multiple water-centric projects.
Key among them is the construction of check dams. In the reporting period, four new
check dams and two new check walls were constructed, while an existing check dam
was repaired. During the first spell of monsoon in July 2016, all these structures were Some of the key events organised under St+Art Festival include:
aflush with water. A total water harvesting potential of 72,000 KL has been created which
will help farmers harvest an additional crop during the non-monsoon seasons. INTERNATIONAL
STREET ART FESTIVAL
Hyderabad | Bengaluru
SWIPING FOR CLEAN WATER MAKEOVER
Sriperumbudur
India's International Street Art Festival was OF ARJAN GARH
organised for the first time in Hyderabad, METRO STATION
where several sites across the iconic Necklace
Due to high salinity in groundwater, the villages of Thiruvallur district surrounding our Delhi
Road and MS Makhta came alive through
Sriperumbudur plant were facing scarcity of potable water. In July 2016, we decided to
murals, installations, talks, screenings and The Art Stations project was launched by St+Art
address the issue by joining hands with 'Sevalaya', and installed a 'Water ATM' at Under this project,
workshops. In Bengaluru, the festival brought India Foundation and Asian Paints with the objective
Adigathur village in Thiruvallur district. The 'ATM' is a solar-powered, cloud-connected, the Arjan Garh
together 16 national & international artists to of transforming transit spaces into walk-in galleries
water dispensing unit, which provides round-the-clock access to safe drinking water. It metro station will be
create socially relevant public art projects. for the public, give commuters a visual treat and
draws water from a borewell, which gets stored in an overhead tank and is then purified The Water ATM transformed into a
currently supplies become a catalyst for conversations, ideas and work of art by two
through a reverse osmosis plant.
water to over cultural exchanges. The station now showcases well-renowned
Indian artist Nilesh's and Mexican artist Senkoe's

500
A nominal rate of INR 2 is charged for 20 litres of drinking water which in turn makes the Singaporean artists
initiative self-sufficient. Cloud connectivity enables remote tracking of water quality. interpretation of the vibrant Indian flora and fauna. Sam Lo and Soph O

For more information about our CSR activities, areas of operation and implementation partners, refer to families at the swipe
Annexure [F] to Board's Report on page 61 in Asian Paints' Annual Report 2016-17. of a smart card

27 28
 Reasonable Level of Veri cation for Six Decorative Business Units**

Specific Non-Process Fresh Water KL/KL 0.40

Specific Hazardous waste disposal Kg/KL 2.04

Specific Electricity Consumption KWH/KL 89.3

INDEPENDENT VERIFICATION STATEMENT
Renewable Energy % of Total Electricity 21.9

Introduction Specific Trade Effluent Generation Lts./KL 28.4

DNV GL Business Assurance India Private Limited (‘DNV GL’) has been commissioned by the management of Asian Paints Limited (‘APL’ or ‘the Company’) CO2 Green House Gas (GHG) Emission data MT CO2e
to carry out a reasonable level of verification of its reported nine (9) performance data points (except the performance data of water replenishment Scope 1 12,117.8
where it was a ‘Limited Assurance’) covering the period 1st April 2016 to 31st March 2017. Scope 2 50,753.3

We performed our work using DNV GL’s assurance methodology VeriSustainTM1 which is based on our professional experience and international Frequency rate (FB) (#) 0.26
assurance standards, including the International Standard on Assurance Engagements 3000 (Revised)*. The management of the Company is responsible
for the collection, analysis, aggregation and presentation of information in reference to the nine (9) performance data points presented to the DNVGL Severity rate (SB) (#) 30.73
team. Our responsibility regarding this verification is to the Company only and in accordance with the agreed scope of work. The verification exercise is Limited Level of Veri cation for Six Decorative Business Units**
based on the assumption that the data and information provided to us is complete, sufficient and true. DNV GL expressly disclaims any liability or co-
Water Replenishment % 118
responsibility for any decision a person or entity would make based on this verification statement.
The verification exercise was carried out during May’2017 to August’2017. *Emission factors used for estimation of emissions from consumption of D iesel, Petrol and grid electricity are 2.644 T CO2e/KL, 2.302 T CO2e/KL and 0.96 kg CO2e/KWh.
# Based on IS 3786- 1983 (Reaffirmed 2002) | **Please refer our management rep ort for detailed calculations

We have evaluated the process of data aggregation data points towards adherence to the following principles and the conclusions are derived from the
Scope, Boundary and Limitation of Veri cation observations of opportunities for improvement reported back to the Company. Data aggregation and transcription errors which were identified during
The scope of work agreed upon with the Company included: the process of verification have been communicated to the Company and subsequently corrected for the decorative plants visited by DNV GL.
• Verification of ‘Reasonable level of Verification’ for the eight (8) data points – Non-process Fresh Water, Hazardous Waste, Electricity, Renewable Energy,
Trade Effluent, CO2- Green House Gas (GHG) emission data, Frequency Rate, Severity Rate & ‘Limited level of Verification’ for one (1) data point – Water
replenishment.
Completeness
Nothing has come to our attention that would cause us not to believe that APL has not applied this principle for the compilation of performance data
• The verification considers an uncertainty of ±5% for limited level and ±2.5 % for reasonable level of verification towards errors in estimation and
presented above and does not exclude performance from processes within the selected six sites; and that the presentation of information is not
measurement, and omissions.
reasonable and appropriate for the reporting period.
• The boundary for the above verification was the six (6) decorative paint plants located in India i.e. we carried out review of data aggregation on the
above indicators through desk review and onsite audits, covering the Company’s Corporate office at Mumbai and following decorative plants at:
Ankleshwar, Gujarat | Kasna, Uttar Pradesh | Khandala, Maharashtra | Patencheru, Telangana | Rohtak, Haryana | Sriperumbadur, Tamil Nadu Accuracy and Reliability
No external stakeholders were interviewed as part of this verification engagement. Nothing has come to our attention that would cause us not to believe that the APL has not applied these principles for the system of data management
including recording, collection and aggregation exceeds threshold limit defined by APL i.e. uncertainty does not exceed of ±5% for water replenishment
and ±2.5 % for other parameters reported above i.e. there were no major gaps in data management system.
Veri cation Methodology
DNV GL adopted a risk based approach and conducted the onsite and off-site verifications of the data presented to us by the Company. As a part of
verification, we:
Our Competence and Independence
DNV GL is a global provider of sustainability services, with qualified environmental and social assurance specialists working in over 100 countries. We did
• reviewed by means of sample-based checks, the methodology, measurement techniques, estimation methods, assumptions and uncertainties
not provide any services to Asian Paints Limited during reporting period that could be construed as conflict with the independence of our work. Our
involved in the process of data measurements as adopted by the Company;
verification team were not involved in the preparation of any statements or data pertaining to Asian Paints Limited Sustainability Report 2016-17, except
• interactions with the relevant data owners at the decorative plants and Corporate to understand the current processes in place for capturing the this Verification Statement and the Management Report submitted to the management of the Company. We maintain complete impartiality towards any
selected performance data; eople interviewed as part of verification.

• review of the relevant documents and systems for gathering, analysing and aggregating the nine (9) selected performance data;

• Visit to six (6) rainwater harvesting structures on a sample basis for on-site condition assessment. For DNV GL Business Assurance India (P) Ltd. Bengaluru, India, 28th August ‘2017.
As part of the verification process we obtained;

• an understanding of the systems used to generate, aggregate and reported data at the site level and corporate level;

• an understanding of the data management system and tested the completeness and accuracy of the reported data. Ramesh Rajamani Vadakepatth Nandkumar
DNV GL Business Assurance I ndia Private Limited
The verification team carried out audit along with APL representatives from the selected locations to physically verify the data points as per Scope of Lead Verifier Reviewer
is part of DNV GL - Business Assurance, a global
Project Manager - Sustainability Services Regional Sustainability Manager - provider of certification, verification, assessment
verification above. DNV GL Business Assurance India (P) Ltd., India. Region India Subcontinent and Middle East and training ser vices, helping customers to build
DNV GL - Sustainability sustainable business per formance.
DNV GL Business Assurance India (P) Ltd., India. www.dnvgl.com
Conclusions
On the basis of our verification methodology and scope of work agreed upon, nothing has come to our attention that would cause us not to believe that
the performance data as below is not materially correct and is not a fair representation of APL’s performance data for 2016-17 as below:
1 The VeriSustain protocol is available on dnvgl.com. | * Assurance Engagements other than Audits or Reviews of Historic al Financial Information.

29
 Asian Paints Limited

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