Sandhar Technologies Limited, one of the leading players in the automotive components industry, has come out with its Business Responsibility and Sustainability Report for the financial year 2023-24. The report epitomizes the company’s relentless commitment to sustainable business practices, environmental stewardship, and social responsibility. As one of the leading suppliers of automotive components, Sandhar has taken considerable measures to ensure that its operations are in tune with the best standards of ESG: environment, social, and governance principles.
Overview of the Company and Business Operations
Sandhar Technologies Limited was incorporated in 1987 and emerged as one of the leading entities in the automotive component manufacturing industry, mainly focused on metals and their product manufacturing. It has involved itself in a broad range of products such as locks, sheet metal components, cabins, wheel assemblies, and other automobile components. Sandhar has a predominantly B2B business model wherein it supplies OEMs with crucial parts required for the production of vehicles across various categories.
The fact that it has a strong presence in the market is reflected in its financial performance, which has resulted in a turnover of ₹2,715.67 crores in the year under report. The company is listed on the Bombay Stock Exchange and the National Stock Exchange and is actively traded with the symbol “SANDHAR.”
Environmental Responsibility and Sustainability Initiatives
At Sandhar Technologies, the commitment to environmental concerns has been at the core of its conscience. During FY 2023-24, energy conservation, waste management, and water conservation were identified as key focus areas of the sustainability strategy. Company operations are in full compliance with all applicable environmental regulations relating to the Water Act and the Air Act.
Unique among Sandhar’s sustainability initiatives is the action plan for ZLD. The company has installed ETPs and STPs at all its plants to ensure that no untreated wastewater goes into the environment. The consumption of renewable energy, on the other hand, is higher at 20 percent solar energy on total consumed electricity in its units. These initiatives together have helped the company bring down its carbon footprint drastically and improve its environmental performance.
Besides, Sandhar has incorporated various energy-efficient technologies like variable-frequency drives and emission control devices within its manufacturing processes. These have contributed to a reduction of not only energy consumption but also 70% of air pollution resulting from the company’s operations.
Social responsibility and employee well-being
Sandhar Technologies cares immensely for the health and well-being of the personnel associated with it and the communities it serves. In addition, the company is deeply committed to making the workplace a safe and healthy one, hence employing almost 1,160 permanent personnel in occupational safety and health. The Sandhar Health and Safety Management System is rather comprehensive, becoming an integral part of its policy—from risk assessment to emergency preparedness and continuous improvement drives.
During FY 2023-24, Sandhar made sure of 100% coverage in case of health and accident insurance for all their employees, which indeed proved that the company cared about the health and well-being of its staff. The policy is covered under life insurance, and compensatory packages are provided in case of any employee’s death, which again proves that the company cares about the welfare of its employees.
Likewise, Sandhar has tried to increase workforce diversity, though the percentage of women in the workforce remains at a low of 8.5%. The company attempts to make efforts toward improving this ratio through targeted recruitment and development programs.
Corporate governance and ethical practices
Sandhar Technologies follows the best principles of corporate governance and ethical business practices. Its robust governance framework comprises a supplier code of conduct and a whistleblower policy that ensure very high levels of transparency and accountability across the organization. Members of its different leadership teams within Sandhar are popularly known as the Sandhar Leadership Team or SLT. It assumes responsibility for implementing ESG policies and ensures that operations in the company align with the goals of sustainability.
The company has laid down strong grievance redress mechanisms ranging from employees and customers to other stakeholders. This aims at providing for fast and fair resolution of every complaint and helps in reiterating Sandhar’s commitment to ethical behavior.
Supply chain management and sustainable sourcing
Sandhar’s supply chain management practices stand in tune with the sustainable goals of the company. All the inputs are sourced from sustainably managed sources, with a high focus on supporting local suppliers and small producers. Responsible sourcing not only forms a part of the bigger sustainability strategy of Sandhar but also acts as a contributor to the economic growth of those regions where the business operates.
Conclusion
The BRSR of Sandhar Technologies Limited for FY 2023-24 underlines the commitment of the company towards sustainable business and social and environmental responsibility. By reducing its footprint on the environment, keeping the workforce healthy, and maintaining ethics in governance, Sandhar is setting a high benchmark for corporate responsibility in the automotive component industry. Further, it tries to focus more on achieving targets laid down for sustainability and creating long-term values for the stakeholders.
Source: BRSR
Credit: Sandhar Technologies Limited