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Measured Steps Towards Sustainability: Company’s ESG Committee Lays Out Specific Commitments, Goals and Targets
In a world where climate change and socio-economic challenges have increased, advancing Environment, Social and Governance (ESG) has become a business imperative. To this effect, Bharat Forge Limited has made ESG an important part of its corporate strategy alongside setting goals and defining a robust governance framework to make positive at scale. The diverse business conglomerate has taken a significant leap forward in sustainable development by establishing a comprehensive ESG (Environmental, Social, and Governance) roadmap. The roadmap, which outlines specific commitments, goals, and targets, is being reviewed and updated periodically by the company’s Board-level ESG Committee. The move aims to align the organization’s business model and operations with best practices in sustainability, health and safety, corporate governance, and other public policy matters.
ESG Committee and Its Composition
The Board of Bharat Forge Limited has set up an Environmental, Social, and Governance Committee to spearhead the company’s efforts in aligning with ESG parameters. The Committee is chaired by Amit Kalyani, who was designated as the Joint Managing Director as of May 5, 2023. Other members include Murali Sivaraman and Dipak Mane, both of whom serve as Independent Directors.
The ESG roadmap, developed by Bharat Forge Limited, demonstrates the company’s rigorous commitment to sustainability and corporate responsibility.
Key Roles and Responsibilities
The Environmental, Social, and Governance Committee’s functions are manifold:
Strategic Guidance: The Committee advises the Board on the development and deployment of ESG initiatives and policies.
Risk Assessment: In conjunction with the Risk Management Committee, the ESG Committee reviews emerging risks and opportunities associated with Environmental, Social, and Governance factors that may impact the company’s reputation and business performance.
Implementation Oversight: The Committee ensures that the company takes adequate steps to actualize its ESG strategy and has access to all internal information necessary to fulfill its role.
Performance Metrics: The Committee oversees the formulation and implementation of targets, standards, and metrics to track the company’s ESG performance.
Statutory Compliance: Finally, the Committee reviews statutory requirements for sustainability reporting, including those for the company’s Annual Report.
Progress on Sustainable Development Goals (SDGs)
During the past year, Bharat Forge Limited has reported favorable impacts on 12 out of the 17 United Nations’ Sustainable Development Goals (SDGs), as outlined in its comprehensively established ESG roadmap. The company’s proactiveness in this sphere has also led to an improvement in its Environmental, Social, and Governance ratings by leading ESG rating agencies.
Legal Compliance and Issue Rectification
The company adheres to all legal obligations related to its ESG commitments. In instances of non-compliance, the ESG Committee undertakes immediate actions to investigate and rectify issues, thereby maintaining a high standard of accountability and transparency.
In the recently released Annual Report for 2023, B N Kalyani, Chairman and Managing Director of Bharat Forge Limited, made a powerful statement about the company’s commitment to Environmental, Social, and Governance (ESG) goals. With “bold ambitions,” Bharat Forge aims not just to comply with ESG parameters but to lead in this domain within the manufacturing sector. Kalyani also emphasized the role of ESG as an “enabler and differentiator” in the company’s expansion into global supply chains.
(Copyright@IndiaESG)
