Century Enka Ltd., one of the country’s leading companies in the manufacturing of synthetic yarn, has released a Business Responsibility and Sustainability Report for the financial year 2023–24. This is their third report, showcasing their serious commitment to inculcating sustainable business practices in their operations. The report by Century Enka details what has been done to align operations in the context of the growing centrality of environmental, social, and governance performance criteria in business strategy while sustaining a strong position in the market.
Company Overview and Geographical Operations
Century Enka Ltd. was established in 1965. Since its inception, the company has been one of the leading synthetic yarn companies with a predominant product portfolio in the manufacturing of nylon and other man-made fibers. It has three manufacturing plants and four offices within India, while the company’s market reaches out to 18 states within the country and nine outside. Its first and foremost business model is that of business-to-business transactions. Century Enka, thus, supplies its products to customers belonging to several categories, like automotive OEMs, traders, and distributors both within and outside India.
The group has tried to operationalize its commitment to sustainability within its operations. In the financial year 2023-24, exports contributed 2.83% to the total turnover of the company, which indicates that the company has immense potential in the international markets as well. The company mainly produces three products—Nylon Tyre Cord Fabric, Nylon Filament Yarn, and Nylon Chips—which are quite rewarding due to the large market for these products. The company generates 47% of the total turnover from one of its major products, Nylon Tyre Cord Fabric alone.
Governance and Ethical Business Practices
Its governance framework is anchored in integrity, transparency, and accountability concerning all business activities. Century Enka has developed a series of policies that govern its practice to adhere to the requirements in matters of ESG. The Board of Directors approved them about anti-harassment and antidiscrimination, product responsibility, employee wellbeing, and environmental management.
To add further to the above, Century Enka would keep reviewing its policies at periodic intervals to ensure they are appropriate and effective. The approach to governance has not only been internally practiced but also ensured in its value chain, further supplemented by conducting sustainable practices among its supply chain-related people.
Employee Well-Being and Social Responsibility
The company has also focused on employee well-being, as stated in the BRSR. In total, Century Enka has 490 employees, and 96% of them are male. However, it tries to be conscious about hiring to enhance gender diversity. Besides diversity in terms of gender, it has adopted diverse health and safety measures for its employees. This would also include health insurance, accident insurance, and maternity benefits for eligible staff.
The company has put in place an ISO-certified Occupational Health and Safety Management System, ISO 45001:2018, to help minimize the risks associated with providing a safe working environment. Regular training and awareness programs will enforce safety protocols for an overall culture of health and safety within the organization.
Social Responsibility: As a part of social responsibility, Century Enka has developed different programs that would help enhance the quality of life in the communities where the company is located. However, in more detail, there was no description in the report regarding those programs. This developing section aims to show the reader just a handful of the many great initiatives in which Century Enka has been involved so far. These deal in particular with energy management, waste management, and water conservation to reduce its ecological footprints.
One of the key leading success parameters is the increased use of renewable sources concerning the company. Century Enka in the reporting period provided 48% of their total energy from renewable sources, much more than in previous years. This significantly decreased their carbon footprint, but also with this act is supporting a global shift into increased use of sustainable energy.
In the waste management sector, Century Enka adheres to a model that is fully integrated and allows the recycling of 80% of the hazardous waste generated during the production of its products. The rest, approximately 20%, is destroyed through preprocessing, cosseting, landfill sites, and incineration. This provides the company with both the minimization of impacts on the environment and avenues for newer business efficiencies.
The other big focus area is water management. This zero wastewater discharge from manufacturing operations is quite an achievement for the company’s sustainability journey. The company has also put up 28 recharge wells for rainwater at Bharuch, which enhanced the quality and level of water in the area. All such efforts become more relevant as the global focus increases on water conversation and management.
Sustainability Goals and Future Aspirations
Keeping an eye on the future, Century Enka has identified aggressive sustainability goals to live up to the responsibility of the set ESG principles. This shall realize a reduction in CO2 emissions by 25% in 2025 against the baseline of FY 2019. Besides, Century Enka is making strides toward zero waste to landfill by 2030, with plans being made to implement measures that allow the re-utilization of waste across all business segments.
To reduce water intake by the business by 40% before the year 2025, based on FY 2019 data. This speaks of the long-term vision towards sustainability set in the operations of Century Enka, where its impacts on the environment are mitigated while still creating value for its stakeholders.
In the social area, Century Enka pledged a growth rate of at least 10% per year in the increase of female staff hiring within the fresh recruitment program until the year 2025. The company also works toward a zero harm-at-work target year, thereby showing a high level of commitment to the safety and well-being of its people.
On their part, in governance, Century Enka undertakes to provide training on its code of conduct to 100% of permanent employees concerning the company’s policy on POCSO, ethics, and human rights. Such training shall be mandated for all permanent employees by the year 2024 and for other employees by the year 2025.The content of the BRSR for 2023-24 is testimony to the company’s continued drive to weave sustainability embedded in its value chain, lower carbon intensity, and enhance practices of waste management to functions for employee welfare and ethical governance; Century Enka continues its march in alignment with ESG. The ambitious targets that the company has set for the years ahead indicate how truly committed it is to creating long-term value for its stakeholders but also to helping meet broader environmental and social goals.
Source: BRSR
Credit: Century Enka Ltd