Sunflag Iron & Steel Company Limited hereby presents its Business Responsibility and Sustainability Report for the financial year 2023-24, detailing its performance and initiatives on aspects pertaining to environmental, social, and governance dimensions. The subsequent report forms part of the company’s 38th Annual Report, which marks how the company integrates the core value addition with sustainability initiatives and maintains enviable standards of corporate responsibility.
Overview of the Company and Scope of Reporting
Sunflag Iron & Steel Company Ltd. is one of the major players in the Steel Manufacturing industry in India, with its incorporation in 1984. The registered office of the company is located in Nagpur, Maharashtra. Its shares are listed in the Bombay Stock Exchange of India with the code 500404 and with the National Stock Exchange under the code SUNFLAG. The BRSR for 2023-24 is presented on a stand-alone basis because the activities of Sunflag Iron & Steel include neither consolidated accounts of its subsidiaries nor its joint ventures.
Business Activities and Market Presence
Sunflag Iron & Steel basically manufactures steel and steel products, including steel ingots, long products, pig iron, and sponge iron. The company operates one plant in Bhandara, Maharashtra, and offices in various locations across the country, including Mumbai, Pune, Delhi, and Chennai. Sunflag serves a varied customer base across 19 states in the country and exports to 11 countries, thereby contributing 1.53% of its total turnover through exports. The products find application in sectors including automotive, general engineering, machinery, railways, defense, and construction.
Environmental Initiatives and Achievements
Sunflag has shown considerable improvement in the environmental performance on parameters relating to energy consumption, water use, and waste generation. The energy consumed by the company during fiscal 2023-24 was 2,441,070,000 megajoules derived mainly from non-renewable sources. The other programmes for mitigation of GHG emissions involved a registered vehicle scrap facility, construction of a coke oven plant to produce coke, power and coke oven gas. More than 100,000 trees were planted by the company in continuation of its environmentally relevant policy.
Water management is another main area of concern for Sunflag. The company achieved zero liquid discharge by reutilizing water from blowdown from the cooling towers and domestic wastewater for tree plantation and firefighting. On the waste management front, Sunflag managed to recycle or reuse 1,163,535 MT of waste in 2023-24 against internationally accepted standards. The company has also taken serious initiatives to minimize its emissions in the air. Various external tests have been done by NABL-approved labs to prove that the company is working with the standard environment-friendly gases.
Social Responsibility and Workforce Management
Sunflag strongly believes in the well-being and growth of its employees and workers. In this respect, Sunflag has a total workforce of 3,630 people comprising 849 employees and 2,781 workers. Health and accident insurance for a considerable workforce, besides maternity benefits and daycare facilities, also is provided by the company. Sunflag has put in place an Integrated Health and Safety Management System conforming to ISO 45001:2018 that undertakes regular site inspections, safety audits, and cross-functional assessments to minimize workplace hazards.
The company is committed to upholding human rights within the value chain and operations. Sunflag’s policies with respect to business principles and conduct include anti-corruption and anti-bribery policies, which have been circulated and communicated across the organization; all employees and stakeholders have been made aware of them. The company also has mechanisms addressing grievances for human rights, including those on discrimination and workplace harassment.
Governance and Transparency
The Sunflag governance framework has been designed in pursuit of ethical conduct and transparency and accountability of all business operations. A few committees were instituted, such as the Audit Committee, Corporate Social Responsibility Committee, and Risk Management Committee, which are responsible for monitoring ESG-related matters or major regulatory compliance requirements. Regarding the practice of engaging with stakeholders, Sunflag embeds major stakeholders such as employees, shareholders, customers, and local communities in the design of business strategies.
Looking Ahead
While Sunflag Iron & Steel Co. Limited continues its growth and expansion agenda, the commitment of the company is unwavering to embed sustainability into the core of the business model in this organization. The 2023-24 BRSR describes the commitment of Sunflag to reduce environmental impacts, enhance social outcomes, and ensure high governance standards. At Sunflag, this will engender long-term value to stakeholders by creating positive impacts in society and the natural environment through sustained efforts at energy efficiency and waste reduction, and community engagement.