Unitech Limited, one of the largest real estate players in India, today released its BRSR, or Business Responsibility and Sustainability Report, for the financial year 2023-24. This report has come out as a key indicator of embedding sustainability and responsible business practices across operations after several years of financial challenges and legal hurdles. After restructuring the company’s management under the Hon’ble Supreme Court of India’s supervision, the latest BRSR of Unitech presents tremendous improvement in governance, environmental care, and social obligation.
Revamped Corporate Governance under New Leadership
The company, incorporated in 1971, had emerged as one of India’s leading developers of real estate with a diversified business profile of commercial complexes, integrated residential developments, and infrastructure projects. However, owing to severe monetary and operational problems in the 2012–13 era of the company, the development was stalled, with litigation running in scores. The Supreme Court of India intervened as a landmark order in 2019 and installed a new board of directors under the leadership of Y. S. Malik, IAS, Retd., to revive the operations of the company.
Under this new management, Unitech developed an all-inclusive RF, which it submitted before the Supreme Court, on finishing stalled projects and trying to settle with the stakeholders, especially the homebuyers and investors. Ever since then, the new management has introduced several operational changes. It intends to float around 135 tenders for the completion of 74 residential and 12 commercial projects, out of which many have already been floated and awarded.
Focus on Environmental Responsibility
The 2023-24 BRSR of Unitech reflects the commitment toward environmental sustainability despite all legal and financial turmoil. It has taken various steps to reduce environmental impact by focusing on solid waste management, water recycling, and sewage treatment systems in its real estate projects. For the year 2023, Unitech reported the installation of sewage treatment plants meant for recycling water for common areas like restrooms, thereby reducing the overall water footprint.
However, the report states that Unitech is still at a nascent stage in the installation of renewable energy systems such as solar panels for common areas in residential complexes. In tune with the national and global environmental standards, the company proposes to adopt more workable solutions for sustainable energy while furthering the Resolution Framework for its future projects.
Social Responsibility and Welfare of Employees
Unitech’s BRSR also captures its effort in making itself a healthier workplace, an inclusive workplace. At Unitech, as of 2023-24, the company had 207 employees, of which 7.25% were women employees. Unitech continues to offer comprehensive health insurance and maternity benefits to its permanent employees, reflecting its emphasis on gender inclusivity and welfare for employees.
Apart from that, Unitech’s CSR entails community development, education, and skill-building. In addition, it partners with local communities at project sites to minimize the social impact of its operations. Keeping in view the financial constraints faced by the company, its CSR spending is very limited but geared as per the provisions of the Companies Act 2013.
Grievance Redressal and Transparency
Transparency and grievance redressal are part of the major sustainability framework components that Unitech has embodied in itself. The new management has created several channels through which stakeholders, mainly homebuyers and investors, can voice their concerns. A dedicated portal, mandated by the Supreme Court, helps track progress on refunds and possessions for customers awaiting their residential units. Further, Unitech has put in place a whistleblower policy and a code of conduct for all employees to ensure due propriety at all levels of its operation.
With all these enhancements, Unitech realizes that challenges persist. Pending statutory approvals and court cases have further delayed some projects. The management is working actively with government authorities to expedite the process so that the long-standing commitments to homebuyers can be fulfilled.
Conclusion and Future Perspective
The 2023-24 Business Responsibility and Sustainability Report is a milestone in the Unitech corporate revival journey. Its revamped vision of sustainability, transparency, and ethics qualitatively prepares it for a probable resurgence as a real estate player. Though there are a lot of challenges before the company in completing stalled projects and improving upon its environmental footprint, the management of Unitech seems intent on honoring its commitments toward its stakeholders and creating a more responsible and sustainable business model.
Source: BRSR
Credit: Unitech Limited