Sustainability

Approach to Sustainability

IndianOil perceives sustainable growth as an opportunity to enhance its business processes and practices, enabling it to positively impact its entire scope of business. The Company’s values drive the belief that responsible businesses can be profitable, leading to investments in the technologies & products and new energy infrastructure that will help shape the low carbon future.

We see sustainable business practices as a defining element of competitiveness to maintain the Corporation’s status, equity and standing, both in the market and in the society. Our attention is on what we produce; how we buy and sell; how we affect the environment; how we recruit, train and develop our own people, how we invest in the community and respect the rights of people. IndianOil endeavors to develop its group businesses to deliver long-term strategic benefit and shareholder value by maximizing synergies that sustainable development provides.

Our societal obligations stood out even in our formative years, while we supported the mission of the Defense Forces to preserve the integrity of the nation, kept the home fires burning in rural India, fueled major transport undertakings and worked on being a `national trust for economic prosperity.’ The same obligations continue with renewed vigour, as we strive year after year, to grow our business to meet the Nation's energy needs, and at the same time increase stakeholder value, exploring the prospect of alternative fuels and engaging people for optimum utilization of energy.

Stakeholder Engagement

IndianOil collaborates with its stakeholders in daily transactions and is engaged in an ongoing dialogue with them to build trust and long term relationships. The engagement ensures that the stakeholder's expectations are taken into account in the company's strategy and plans. We understand our business involves diverse stakeholder group owing to our business units, supply chain and product mix catering to the needs of the customers spread over the entire length and breadth of the country. Considering the vast expanse of the organization, and a wide array of stakeholders, we resolve issues through a structured approach, while creating enduring value for all our stakeholders.

We engage with stakeholders and peruse their feedback so as to ensure that we prioritise the most important issues and secure a responsible and sustainable business. By listening to them we can better understand the emerging trends, important issues and ways to prioritise and integrate them into our business strategy.

IndianOil profoundly value its stakeholders and continuously engaged with them through various interventions throughout the year. Various ways of engagement are used with our stakeholders to monitor feedback across our business channels including customer surveys and meetings through structured collaborations and communications across earmarked channels. Our approach includes ongoing and specific surveys, complemented by deeper engagement dialogues. In addition, we participate in various industry fora as well as international and national sustainability forums to discuss emerging challenges and trends.

Our Stakeholders

Stakeholder Dialogue

IndianOil collaborates with its stakeholders in daily transactions and is engaged in an ongoing dialogue with them to build trust and long term relationships. The engagement ensures that the stakeholder's expectations are taken into account in the company's strategy and plans. We understand our business involves diverse stakeholder group owing to our business units, supply chain and product mix catering to the needs of the customers spread over the entire length and breadth of the country. Considering the vast expanse of the organization, and a wide array of stakeholders, we resolve issues through a structured approach, while creating enduring value for all our stakeholders.

We engage with stakeholders and peruse their feedback so as to ensure that we prioritise the most important issues and secure a responsible and sustainable business. By listening to them we can better understand the emerging trends, important issues and ways to prioritise and integrate them into our business strategy.

IndianOil profoundly value its stakeholders and continuously engaged with them through various interventions throughout the year. Various ways of engagement are used with our stakeholders to monitor feedback across our business channels including customer surveys and meetings through structured collaborations and communications across earmarked channels. Our approach includes ongoing and specific surveys, complemented by deeper engagement dialogues. In addition, we participate in various industry fora as well as international and national sustainability forums to discuss emerging challenges and trends.

Our Stakeholders

The key stakeholders are identified and are engaged regularly in order to maintain a symbiotic relationship. We remain engaged with a wide array of stakeholders on a daily basis through our pan-India presence and business activities .

We are present in every corner of the country to serve the nation. Nature of our business has enabled us to engage with diverse spectrum of stakeholders. The aim of the engagement with the stakeholders is to understand their opinion and to build trust and develop long term relationships through appropriate interventions and communications across formal/informal channels.

At the apex level, Stakeholders' Relationship Committee of the Board has been constituted which examines and redresses grievances of the shareholders and the investors. The Company has also constituted a Corporate Social Responsibility and Sustainable Development Committee of the Board, which guides and monitors initiatives as per Sustainability and CSR Policy .

For engagement of the disadvantaged, vulnerable and marginalized external stakeholders, various initiatives viz. allotment of dealership / distributorship, petty contracts, CSR initiatives, etc. are regularly undertaken .

Engagement with the Stakeholders

Our Material Issues

IndianOil identifies its material issues based on continuous engagement with its various internal and external stakeholders throughout the year. The material issues of the industry peers are also referred to while identifying the issues. The identified issues are complemented by the Company's risk management team's research on emerging societal, economic, environmental and business scenarios. Accordingly, IndianOil identified climate change, carbon-water-waste management, energy conservation, product & operational efficiency, product quality and safety, occupational health & safety, customer satisfaction, human rights, employee engagement, impacts on communities as issues that are material to the organization.

The Process

We assess and summarise the issues that are the most important - material - to ensure that we identify potential emerging issues and that the prioritizations made remain relevant. Key issues and concerns raised by stakeholders are paired with IndianOil's long-term strategic goals. This input forms our strategic approach towards sustainability initiatives and guides our focus for all inclusive development. The issues raised by stakeholders are understood to enable us to address and respond them. Our materiality analysis is based upon the following three tier structured approach :-

The evaluation is based on internal and external stakeholder perspectives from economic, environmental and social viewpoints.

Identification of Material Issues

The vast range of internal and external data, including analyst reports, media articles and stakeholder feedback are evaluated and the most relevant issues are identified. These issues are in-line with our strategic direction on the basis of risk management and financial strength. With stakeholder mapping exercise, cross sections of internal and external stakeholders are surveyed through personal interviews and an online questionnaire to determine the issues material to IndianOil. The material issues raised by stakeholders are dovetailed into IndianOil's long-term strategic goals which are considered crucial for our future success .

Prioritization of Issues

The process of identifying the material issues is based on an ongoing engagement with our stakeholders as well as based on the strategic business review. The essential input collected from our stakeholders is complemented by in-house research on emerging societal, economic, environmental and business trends impacting our business. In order to prioritise the material aspects identified, the degree of importance for each material aspect to its key stakeholders and the business is further assessed. The basis for prioritization of material issues are the key concerns, needs and expectations of stakeholders identified through past as well as on-going engagement.

Validation of Issues

Based on the inputs provided by important key stakeholders, the final material issues are listed. The issues identified are evaluated from both the stakeholders' perspective and how it would influence IndianOil's ability to create value. However, in this report all issues, which are of concern to stakeholders and the Company, are considered. The material issues together with our action plan are described under respective topics as Disclosure on Management Approach.

Materiality Table Linkages

Approach to Sustainability

IndianOil perceives sustainable growth as an opportunity to enhance its business processes and practices, enabling it to positively impact its entire scope of business. The Company’s values drive the belief that responsible businesses can be profitable, leading to investments in the technologies & products and new energy infrastructure that will help shape the low carbon future.

We see sustainable business practices as a defining element of competitiveness to maintain the Corporation’s status, equity and standing, both in the market and in the society. Our attention is on what we produce; how we buy and sell; how we affect the environment; how we recruit, train and develop our own people, how we invest in the community and respect the rights of people. IndianOil endeavors to develop its group businesses to deliver long-term strategic benefit and shareholder value by maximizing synergies that sustainable development provides.

Our societal obligations stood out even in our formative years, while we supported the mission of the Defense Forces to preserve the integrity of the nation, kept the home fires burning in rural India, fueled major transport undertakings and worked on being a `national trust for economic prosperity.’ The same obligations continue with renewed vigour, as we strive year after year, to grow our business to meet the Nation's energy needs, and at the same time increase stakeholder value, exploring the prospect of alternative fuels and engaging people for optimum utilization of energy.

Driving Sustainability in IndianOil

IndianOil is committed to integrate its sustainability initiatives into business strategy to continue to grow as an environmentally responsible and socially inclusive organization.

IndianOil has formed a Board Committee on Corporate Social Responsibility and Sustainable Development (CSR&SD) at the apex level, which guides and monitors the initiatives related to Sustainability & CSR. The ‘Alternate Energy & Sustainable Development’ Group, formed at the corporate level, under Planning & Business Development vertical, implements action plans to address the environmental issues viz. climate change, global warming, etc.

Caring for Environment

Climate change is a global concern. As national Oil & Gas major, IndianOil realizes that its’ business operations and petroleum product offerings have an adverse impact on the environment. As a responsible corporate citizen, the Company takes onus to mitigate its ecological footprint and to help the supply chain & society lower their environmental impact.

IndianOil undertakes major efforts to reduce its operational emissions, conserve water, manage waste, offer green fuels and to protect the environment. The company complies with various regulatory norms, promotes sustainability initiatives in supply chain and undertakes various awareness generation exercises to promote sustainable consumption and reduce its ecological footprint.

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Energy Transition

IndianOil has grown from being an oil major to an integrated oil & gas corporate in India. Oil & gas shall remain the fuels of choice in the foreseeable future, while renewables grow in relevance owing to impending climate change and global warming concerns. Hence, while IndianOil pursues diversification into natural gas and renewable energy, the Company is also putting a lot of emphasis on better and safer petroleum products.

BS-VI Standard Fuels

IndianOil refineries are undertaking major technology upgradations to deliver BS VI fuel, as per world’s cleanest standards, from April 2020. The sulphur content in BS VI standard fuel is 10 parts per million (PPM) against 50 PPM in presently available BS-IV fuel, which significantly reduces particulate and SOx emission.

Blended Fuels

IndianOil is also increasing ethanol and biodiesel blends in its fuel offerings and improving their coverage across the country. During 2018-19, IndianOil achieved 5.3% ethanol blending in petrol in notified states across the country.

In a first-of-its-kind venture in the world, Indian Oil Corporation is planning to utilise off-gases (waste gas) from various processing units of its refineries for production of ethanol. The move will reduce the carbon footprint of the state-run company’s refineries, while helping to gainfully use waste gas produced for the production of ethanol for blending in petrol.

Natural Gas

IndianOil is working towards growth of natural gas in the energy mix by venturing into LNG sourcing, import terminals, pipelines, city gas distribution networks and LNG supply by road tankers. IndianOil has commissioned a 5 MMTPA LNG Import Terminal at Ennore near Chennai recently through a joint venture, which is a first of its kind installation on the east coast of India.

The company is also operating / implementing City Gas Distribution (CGD) Networks in 11 Geographical Areas (GAs) in the country through its two Joint Venture Companies, Green Gas Ltd. (GGL) in Lucknow & Agra GAs and IndianOil Adani Gas Pvt. Ltd. (IOAGPL).

IndianOil is also foraying into H-CNG and Auto LPG for creating a diversified & clean automotive fuel portfolio.

Renewable Energy

IndianOil is promoting installation of renewable energy projects as a business diversification initiative and keeping in mind the stakeholder concerns regarding pollution and climate change due to conventional fuels. The Corporation has also been an early investor in the renewable energy space, much ahead of its peers, and has a growing portfolio. IndianOil has cumulatively commissioned 216 MW of renewable energy projects, which includes 167.6 MW of wind power and 48.6 MW of solar. Installed capacity of Renewable Energy has grown at a CAGR of 26% from 2012-13 levels. At present, the electricity generated from Wind & Solar Energy is equivalent to 5% of the Company’s total electricity consumption.

Compressed Biogas (CBG)

IndianOil has been at the forefront of the Government of India’s SATAT (Sustainable Alternative Towards Affordable Transportation) scheme. The scheme aims to produce automotive grade Compressed Biogas (CBG), an alternative to CNG, from agricultural / sewage / organic waste generated in the country. The project is a significant breakthrough in clean energy.

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Emission Mitigation

Accounting of GHG emissions has helped the company to identify improvement areas and implement emission mitigation measures. Benchmarking studies and energy audits are carried out by various international and national agencies to identify energy saving measures in operating locations and administrative buildings. Thereafter, technology upgradation, automation and energy conservation projects are undertaken to improve operational efficiency. The Company has placed designated energy managers at locations to identify and implement energy conservation measures. Initiatives like ENCON (Energy Conservation), process efficiency improvements, automation, LED lighting etc. have helped the Company to reduce its energy consumption.

Efficiency measures are also driven by statutory / regulatory compliances, e.g. reduction of specific energy consumption (MBN), Perform, Achieve & Trade (PAT) scheme etc.

For IndianOil, emission from Refineries and Naphtha Cracker Unit (NCU) account for more than 90% of the total Company’s emissions. The total GHG emission from IndianOil refineries and NCU in 2018-19 is 18.74 MMTCO2e. The Company undertakes various projects in energy conservation / efficiency, renewable energy, switching to green fuels and tree plantations to reduce its GHG emissions.

ENCON Projects in Refineries

Energy conservation is at the heart of IndianOil's decision regarding technology selection for refinery processes and its operation cycles. Improvements have been made possible through implementation of various energy conservation measures coupled with operational improvement by adopting advanced technology and best operating practices.

Since 2010, benchmarking studies are carried out once every two years under the aegis of Centre for High Technology (CHT), MoP&NG to rank performance of IndianOil Refineries with peer groups and the best in the class refineries worldwide. Identified gaps are bridged through implementation of suitable ENCON (Energy Conservation) measures.

In addition, profitability improvement and optimisation studies are regularly carried out by external agencies such as KBC, Mckinsey, NTPC, etc. as well as by in-house Process Design and Engineering Cell (PDEC) of IOC.

Refinery Performance Improvement Programme (RPIP) implemented by IndianOil, aims at improving the refinery performance in areas like distillate improvement, energy reduction, hydrogen management etc.

ENCON measures implemented in refineries during 2018-19 have potential to save 82,078 SRFT (Standard Refinery Fuel Tonnes) per annum, with an estimated emissions reduction of 255 TMTCO2e. The specific emission from refinery operations have reduced by 12.43% over 2012-13 (base year).

Pipeline Transportation

Pipelines are the most efficient mode of transport for petroleum products, as compared to road and rail. IndianOil avoided 1,329 TMTCO2e of carbon emissions in 2018-19 by transporting 88.5 MMT of crude and finished products through pipeline network instead of rail transport.

Pipeline operations are in-turn being made more efficient by promoting use of engine driven mainline pumping units to electric motor driven pumping units, and use of loop lines.

Energy Efficient Lighting

In an effort to improve its lighting efficiency and reap benefits of significant savings in maintenance costs, monthly electricity bills and emission reduction, IndianOil is promoting LED lights at its locations. IndianOil has implemented a policy guideline to replace all the conventional lights with LED lights. As on 31st March 2019, 4.5 lakh energy efficient LED lights have replaced conventional luminaires.

Automation

IndianOil is upgrading its supply and distribution network to increase productivity, quality of the product, reduce manual intervention, and ensure speed and cost efficient operations. Automation is being undertaken to streamline indenting, optimize liquid stock management across retail network, quicker fill in of tank trucks and ensure safe operations. The initiative also reduces inefficiency related emissions.

Air pollution

Air quality monitoring:-For continuous monitoring of emissions, on line analyzers are installed in refinery stacks. Central / State Pollution Control Boards are provided on-line connectivity of the analyzers, to monitor the emission. Mobile vans and fixed monitoring stations are used to monitor ambient air quality.

Emission control measures:-Measures like tall stacks, use of low sulphur fuel in boilers and heaters, use of low NOx burners, use of sulphur recovery units, flue gas scrubbing, flare gas recovery systems, among others are used to minimize air emissions from operations. Bottom loading facilities are being provided at all new grass root locations with Vapour Recovery system at required locations. Installation of Vapour Recovery System to control fugitive emissions at marketing installations and retail outlets in NCR and NCT is in progress.

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Reducing Freshwater Consumption

Fresh water is a precious resource. Growing population, concentrated development, pollution of water resources and depleting groundwater have had a severe impact on freshwater availability across the country. For IndianOil, water consumption at its refineries and NCU accounts for more than 90% of company’s total water consumption. The freshwater consumption by IndianOil’s refineries and NCU in 2018-19 was 99.51 million kl.

IndianOil understands the importance of water for sustained operations. The company takes up various measures to ensure responsible sourcing and use of freshwater, improving water use efficiency, recycling and reuse of waste water and rainwater harvesting.

The refineries of IndianOil are fully compliant with the MINAS (Minimal National Standards) set by the Ministry of Environment & Forests, Govt. of India and the Central Pollution Control Board with regard to use of water resources and the quality of effluents discharged.

Water Use Efficiency

Enhancing water efficiency in industrial operations has become crucial as water plays a significant role in continuous operations. IndianOil monitors & assesses its water use, identifies water saving opportunities and implements water efficiency measures, to optimize water consumption. By implementing various optimization measures, IndianOil refineries achieved 12.87% reduction in specific water consumption till 2018-19 with 2012-13 as base year.

Wastewater Treatment & Reuse

Use of water and quality of effluent discharged are carefully monitored by the company. Refineries are equipped with a network of underground sewers for segregated collection of various wastewater streams, which are subjected to precise treatment in well designed effluent treatment (ETP) facilities involving physical, chemical and biological processes. State of art equipment have been provided in the ETPs like Tilted Plate Interceptor (TPI), Dissolved Air Floatation (DAF), Bio-tower, activated sludge basins, dual media filters and reverse osmosis for treating waste water. These treatment facilities are backed by sophisticated instrumentation and real time data systems for close and precise monitoring. Online connectivity to such systems is provided to CPCB / SPCBs to provide real time data.

In Marketing and Pipeline locations effluent water is routed through oil water separator before discharge as per CPCB / SPCB norms. During 2018-19, IndianOil reused 40.15 million KL of treated effluent water, which is approximately 89% of effluent generated in refineries. The Company’s freshwater intake was reduced by 28.7% due to use of treated effluent water.

Rainwater Harvesting

IndianOil has cumulatively installed 608 rainwater harvesting systems with potential to collect approximately 3 billion litres of rainwater every year. This water is used either to reduce freshwater makeup or for recharge of groundwater. The harvested rainwater is equivalent to about 3% of the Company’s fresh water consumption.

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Bio-Diversity

To conserve the flora & fauna, IndianOil has developed greenbelt at large operating locations. The Company undertakes extensive tree plantation across locations every year. 33% green cover is maintained at smaller installations and plant sites. These scientifically designed green belts / eco-parks act as pollution sinks, maintain local flora & fauna and enhance aesthetic look of the refinery area. A large number of migratory birds have made these green belt areas, their habitat. The water ponds developed in some of the eco-parks nurture native fish species.

During the year 2018-19, 2,10,000 tree saplings have been planted in IndianOil’s locations. Cumulatively, the company has planted more than 2 million trees with a carbon sequestration potential of 40 TMTCO2e per annum.

Herbal Garden at Bongaigaon Refinery

Bongaigaon Refinery maintains an ‘Herbal and Orchid Garden’ named ‘‘Nandan Kanan”, which is spread over an area of 1.84 acres. The garden has been developed for conservation of rare varieties of herbs & orchids available in the North Eastern region. The garden has more than 150 varieties of herbs and more than 40 varieties of orchids.

Migratory Birds in Mathura Refinery

A 4.5-acre ecological park is developed in Mathura Refinery to maintain a green ambience. Five large ponds and their surroundings in the park have become natural habitat of black-headed ibis and painted stork. It also attracts migratory birds such as Northern Shoveler and Northern Pintail.

As per study by Bombay Natural History Society (BNHS), the Mathura Refinery green belt area was identified to have 87 species of birds – including 30 species of migratory birds in the park, indicating richness of biodiversity in the ecosystem.

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Waste Management

Oil & Gas industry deals with various hazardous and toxic products. IndianOil is continually improving the resource productivity of its business processes in order to ensure that the resources are used effectively. The company’s waste management practices are based on twin focus of maximizing resource recycling at installations, and safe treatment & disposal of waste. The wastes that are not recycled in operations are disposed off as per the Central & State Pollution Control Board (CPCB & SPCB) norms.

Hazardous waste

The major hazardous wastes generated during operations are oil slop, oil sludge, spent catalyst and ETP sludge. Generated slop oil is entirely recovered and processed in refinery operations. The oil sludge is processed for oil recovery and reused and any residual sludge is bio-remediated with the help of patented ‘Oilivorous-S’ technology of IndianOil. Spent catalyst is sent for co-processing in Cement industries or given back to supplying companies. Other hazardous waste like biomedical waste is disposed through authorized agents of CPCB / SPCB, while for e-waste management, buyback arrangements are made with supplier. The Company is not transporting, importing, exporting or treating waste deemed hazardous under the terms of Basel Convention.

Non-hazardous waste

While ferrous / non-ferrous scrap generated is sold to government authorized third party recyclers, paper waste is being given to third party recyclers in exchange for stationery. Biogas plants and composters are being used to process organic waste to produce energy and manure. Various paper saving practices such as SMS indenting, digital receipts and reducing paper size are being undertaken across the Company. Retail Outlet inspection reports, rental payments, dealer portals etc are being implemented across the organisation. Digitisation has resulted in tremendous paper savings.

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Promoting Safety

IndianOil’s commitment to safe work places is reflected in the well-established, world-class safety management systems at all its operational locations. Safety management is an integral part of management ethos of the company and the highest priority is accorded to safety & occupational health.

IndianOil diligently follows the standards laid down by the Oil Industry Safety Directorate (OISD) on matters of safety & occupational health. All refineries are certified to Occupational Health & Safety Management System (OHSMS/OHSAS018001), besides having fully equipped occupational health centres.

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Operational Safety

IndianOil strives to ensure safe and incident free operation at each and every stage of its value chain. All its refineries, pipelines and marketing divisions have state-of-the-art control and command systems to ensure safe and sustainable operations.

IndianOil has two-tier of Safety Committee: the Management Safety Committee & the Shop Floor Safety Committee. All major local issues pertaining to health, safety and environment are discussed in periodic meetings covering issues faced during normal operation, recent near miss incidents, learning from incidents, unsafe acts / conditions observed etc. HSE performance is also apprised through monthly Chairman Dashboard Report.

Process hazards are reviewed at all phases of project life by multi-disciplinary teams. Studies such as Hazard and Operability (HAZOP) and Risk Analysis are carried out to identify, assess and control process hazards. Quantitative Risk Analysis (QRA) is carried out for any new unit or facilities and actions are taken to mitigate or minimize the hazards.

On the job site trainings are provided to field personnel, contractor personnel and security personnel. In refineries, all gas safety inspectors, fire permit signatories and permits in process plants are provided training on Work Permit System once every year as per OISD guidelines.

Compliance of safety systems & procedures and environmental laws is monitored at unit, divisional and corporate level. The Board reviews HSE activities of the company in every meeting. Directions issued by the Board during reviews are implemented in time bound manner.

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Safety extended to Contractors / Supply Chain

All equipment provided to the workers bear a BIS mark.

OISD guideline on “Safety Practices during Construction” forms a part of the tender document.

OISD guidelines on “Contractor Safety” is strictly adhered by contractors.

Considering the socio-economic conditions and high turnover of contractor personnel, major thrust is given for training of contractor personnel. Use of proper Personal Protective Equipment (PPE) is enforced.

Inclusion of guidelines on safety in the tendering stage itself like General Conditions of Contract (G.C.C)/ Special Conditions of Contract (S.C.C) ensures safety standard during execution of the contract.

Guidelines on use of PPEs have been formulated and the same also form a part of the tender document.

Contractors are strictly monitored for adherence to the Rules & Regulations under Factories Act, Workmen Compensation Act, National/State laws and regulations etc.

Penalty scheme is also implemented for safety violations.

For new projects, pre-commissioning checks and audits are carried out by multi-disciplinary teams and deviations, if any, are corrected before start up. Also pre-commissioning audit is carried by the Oil Industry Safety Directorate (OISD) for new plants.

The near miss reporting system is in practice which is a proven safety improvement tool. The reported incidents are being analyzed and corrective actions are being ensured to minimize the probability of accident.

Mock drills are conducted periodically to assess preparedness for different kind of emergency situations which may arise during operations/ maintenance.

Employee health

At IndianOil, focus on employee health is a priority. All programmes are designed with an eye to ensure healthy work places and employee well-being, to improve the productivity of employees.

In order to monitor the health of personnel working in a work environment prone to exposure, full-fledged Occupational Health Centres (OHCs) have been provided at all Refineries. At locations where these facilities are not available, employees’ health checkup is carried out through retainer doctors. Apart from fully equipped hospitals at refinery townships, the Company has also nominated hospitals at various locations to meet employee needs for healthcare.

An Occupational Health Manual has been developed for uniform practices in implementing Occupational Health services across the company. The company has released Guidelines on Fatigue Management at Workplace and Medical Ready Reckoner during the year.

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Product Responsibility

IndianOil has been continuously improving its product offering by focusing on efficiency improvements. IndianOil balances its products so that they match up to customer requirement for fuel quality, efficiency and lower emissions, while maintaining wide scale availability and affordability.

Some of the major product improvements include offering of BS-VI grade fuel of world’s cleanest standard, increase in ethanol & biodiesel blending in vehicular fuels, promoting value added fuels like xtraPremium, supplying of cleaner LPG fuel to rural areas, undertaking various renewable energy projects and promoting natural gas as vehicular fuel / cooking fuel in cities.

Fuel Accessibility

IndianOil uses its vast network of 50,000+ retail touch points, to ensure uninterrupted supply of fuel to its customers in every nook-and-corner of India. The company’s commitment to provide continuous access to fuel extends to times of national emergencies and natural disasters.

Retail Network (as on 31.3.2019)
Retail Outlets (incl. KSK)	27,702
Kisan Seva Kendra (KSK)	7,857
LPG Distributors	11,964
SKO / LDO Dealers	3,889
Consumer Pumps	6,960
Others*	332
*Includes Aviation Fuel Stations, Terminals, Depots and LPG Bottling Plants

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IndianOil’s Petrol Pump & LPG Distributor Network

Customised Products & Service Offerings

IndianOil has taken various measures to improve customer loyalty and add value to its product offerings. The company’s retail network is being modernised with latest customer convenience facilities, well-trained customer attendants and a slew of promotional activities directed at customer engagement.

IndianOil's retail outlets are being modernised to cater to changing customer needs

SPECIALIZED PRODUCT OFFERINGS

CUSTOMISED SERVICE OFFERINGS

Customer Satisfaction

Customer feedbacks are taken through dedicated surveys, feedback / complaint registers maintained at the Company’s retail touch points, dedicated customer portals such as e-Platform for IndianOil customers (ePIC), Twitter handle / Facebook page of MoP&NG and IndianOil, along with various engagement mechanisms for the Company’s bulk consumers.

For bulk consumers, IndianOil has a system of Nodal Officers / CRO (Customer Relationship Officers) for resolution of customer issues, through a single window option.

The retail group takes customer feedback on regular basis. The Branding group is administering the Online Reputation Management (ORM) on the web, which tracks the customer sentiments (negative/positive/neutral) with respect to IndianOil’s products and services. The ongoing periodical reporting system and the online ORM dashboard content, capture all the conversations on the web including the tweets (and excluding the Facebook accounts) on IndianOil by all its stakeholders including customers.

GRIEVANCE REDRESSAL

Economic Performance

In an effort to meet the nation’s energy demands and be the Energy of India, IndianOil has developed its long-term strategic approach to optimize synergistic value creation for its stakeholders while mitigating future risks. The company’s strategy lays emphasis on keeping pace with the dynamic business scenario being agile and responsive in adapting to global and domestic market trends and maintaining its leadership position in the market.

The company’s strategic intent is to be a future ready organisation, to be able to exploit emerging opportunities and mitigate potential risks to accomplish this objective. IndianOil nurtures a culture of innovation and technological advancement and at the same time leverages its core competence in infrastructure and reach to stay competitive in the market. The company also fosters a conducive environment for research and innovation to enhance efficiency, reliability, productivity and safety in its business operations. IndianOil is committed to providing energy access to the rural population through enhancing its geographical reach. The company is making significant efforts to usher in clean and green energy alternatives to mitigate the risks of global warming.

Sustainability in Supply Chain

IndianOil undertakes various measures to reduce environment impact and promote social values in its supply chain. The company strives to extend its sustainability culture to its vendors and business partners which in turn helps them to run the business responsibly.

Safety initiatives for Tank Truck Drivers

Ethics & Human Rights

At IndianOil, every person is recognised to have a right to life & liberty, freedom from slavery & torture, freedom of opinion and expression, right to work and education, amongst others. IndianOil conducts business on the basis of its core values and support universal human rights for employees and communities. IndianOil prohibits child labour, forced labour and discriminatory behaviour and also ensures that its business partners also comply in their organization. Initiatives like allotment of dealership/ distributorship, petty contracts, CSR initiatives, etc. are regularly undertaken for upliftment of the disadvantaged, vulnerable and marginalized external stakeholders.

IndianOil installations are monitored and reviewed periodically to ensure compliance to human rights. IndianOil provides equal opportunity in recruitment, career development, promotion, training and rewards for all employees, without discrimination on the basis of caste, colour, gender, religion or region.

The company is at the forefront of nation building and remains accountable to its stakeholders. In an effort to enhance transparency, fairness and competitiveness at all working levels, IndianOil has adopted and implemented the Integrity Pact (IP) Program, e-tendering for procurement of goods and services, RTI (Right to Information), Citizen’s Charter and Vigilance setup. All relevant guidelines and product related information are available on corporate website.

IndianOil has defined Code of Conduct for its Board of Directors, Senior Management and all employees. The company conducts business on the basis of its core values and support universal human rights for employees and communities. IndianOil prohibits child labour, forced labour and discriminatory behaviour and also ensures that its business partners also comply in their organization.

Giving Back to the Society

As a responsible corporate citizen, IndianOil undertakes a number of social welfare and community development programmes. With pan India presence, IndianOil undertakes CSR activities across the country, from Leh in J&K in the North, to the North Eastern States, to the aspirational / backward districts/ naxal affected areas, to Gujarat in the west and Tamil Nadu/Kerala in the south. The local gram panchayats, district administration, NGOs and social workers are involved to ensure maximize the outcome of the CSR projects.

CSR Thrust Areas

IndianOil at the forefront of National Missions

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100 kW captive Solar Power Plant

350 kl potential Rain Water Harvesting System

5 kld Sewage Treatment Plant

10 kld Bio-digester

Drip Irrigation System for gardening & lawns

LED lighting system for the entire plant

VFD drive units in carousal & conveyor system

Reflective paint coating on the roof top at employees and visitors vehicle parking area

Electric Vehicle Charging station

Facilities for differently abled persons

Oxygenating plants inside the admin building

Sensor based lighting system at toilets, stores etc.

A view of the Bottling Plant at Night

IndianOil Start-up Scheme

IndianOil launched the start-up scheme to promote promising start-ups and nurture an eco-system conducive for innovations in the domestic hydrocarbons sector. Driven by IndianOil's Research & Development Centre at Faridabad, the scheme is designed to support projects that aim to establish innovative technology and business process re-engineering ideas with significant business potential, social relevance and focused on environment-protection related to Oil & Gas Industry

Round-1 of the scheme commenced in Sept 2017. 11 projects were selected for incubation. Projects like use of nano compound for onsite pipeline repair, smart eco-toilet, carbon capture from boiler / furnace stacks, bio-mass to DME / Methanol, smart petrol dispensing unit, fuel cell based power pack, are under various stages of completion.

Eco-Toilet

Sukriti Social Foundation was selected in the IndianOil Start-Up scheme to develop Eco-Mitra. Eco-Mitra, is a smart toilet that reuses 95% of its wastewater for cleaning, and requires minimal human intervention for maintenance.

Features of the Toilet:

Invisible Sensor based Cabin Hygiene System

Automatic sanitization & flushing

On-site waste treatment system

Centralized Toilet Health Monitoring System

Under Round-2 of the scheme which commenced last year, 13 additional projects were taken up. Besides various technology and process efficiency improvements in operations, these projects also include projects which have a positive socio-environmental impact such as plant based air purification, creating pavement block from waste plastic and microbial disinfection of water.

Related links

Environmental Performance

Materials

Energy

Energy is a key driver for economic growth, and the energy demand in India is continuously increasing due to various social and demographic factors like Industrialization, population growth, urbanization etc. India, being a fast growing economy has made great progress across sectors like industrial, agriculture, transportation, commercial and domestic sectors over the past decades. With per capita energy consumption still lower than the global average, energy demand in India is projected to soar over the coming decades to achieve sustained and inclusive economic growth. However, the country's fossil fuel reserves are limited which entails efficient utilization of resources, deriving maximum value from the available resources. Hence, there is a greater emphasis for secured, sustainable and affordable energy as a means to underpin development, while addressing environmental concerns.

As a major mitigation initiative, energy efficiency and renewable energy policies have gained lot of importance over the years. Inclusion of three sectors viz., Railways, Refineries and Electricity Distribution Companies (DISCOMs) in the PAT (Perform Achieve Trade) scheme cycle-II shows that energy efficiency initiatives and policies are gaining traction across the sectors. BEE has achieved a cumulative energy saving of 8.67 million tonnes of oil equivalent (MTOE) against the target of 6.686 MTOE in the PAT cycle-I i.e., from 2012-13 to 2014- 15 .15. With the inclusion of new sectors, it is aimed to achieve an overall energy consumption reduction of 8.869 MTOE under the PAT Cycle -II.

IndianOil refineries contribute over 90% of Corporation's total energy consumption and the energy consumption across the refineries has been duly reported. Our total energy consumption during the year has shown a significant increase. This is due to the inclusion of newly commissioned Paradip refinery which achieved its full capacity utilization in May 2017. IndianOil has policy guidelines on Energy Audit to be carried out at the locations with an aim to reduce the energy consumption by 25%. Further, all our operating locations have designated energy managers to identify and implement energy conservation measures. During the year, the ENCON measures implemented at our refinery locations resulted in an estimated savings of 63,093 SRFT. By undertaking various energy efficiency initiatives across the refineries, our refineries have registered best ever Fuel & Loss (F&L), Specific Energy Consumption (MBN) and Energy Intensity Index (EII) of 8.75%, 72.6 and 98.5 respectively during the year 2017-18.

Emissions

Global warming due to anthropogenic emissions has grown into one of the most complex issues faced globally. The vast consequences of climate change threaten to affect not only our environment but also economic, social and political setup. Warming of our ecosystem is unequivocal, and since the 1950s, many of the observed climatic and environmental changes have been unprecedented. The average surface temperature has risen by about 0.8°C globally since 1880, while sea level has risen by 6-8 inches in the last century. Due to changing weather patterns, our planet is already experiencing extreme climate conditions viz. heat stress, flooding, drought, reduction in agricultural yield, sea level rise, extreme precipitation and storm surges etc. The problem is further accentuated by the fact that the rate of occurrence of these climatic extremes are increasing, e.g. the rate of rise in sea level in the past two decades is nearly double the rate observed in 100 years preceding it. Human influence on climate system is more evident with the co₂ levels surpassing 400 ppm in 2013 for the first time in the history of mankind. In this context, it is critical that companies and governments actively pursue sustainable growth by continuously undertaking various climate mitigation and adaptation actions to prevent adverse impact on our ecosystem.

IndianOil is committed towards low carbon growth by achieving operational excellence that would reduce its carbon footprint. In view of the same, we have undertaken various mitigation measures like energy conservation, energy efficiency, renewable energy generation and tree plantation etc. across our operating locations. IndianOil has also taken a voluntary target to reduce its specific carbon emissions by 18% by 2020 compared to base year 2012-13.

For IndianOil, refineries contribute more than 90% of the total corporation's emissions. We carryout carbon footprinting exercises across our operating locations through which we identify and implement emissions reduction measures. During the year, the total emission from the refineries is 16.7 MMTCO₂e, which is higher by 25% compared to 2016-17. This increase in total emissions is due to the inclusion of newly commissioned Paradip refinery. The specific emissions from the refineries stand at 0.242 MTCO₂e/MT of crude throughput, which is a reduction of 7.45% compared to 2012-13. The ENCON measures implemented during the year has estimated to reduce carbon dioxide emissions equivalent to 2,04,321 tCO₂e. The emissions reported by the corporation are estimated as per international protocols and relevant industry guidelines.

Data Pertains to Refinery Division

During the year, total throughput by the pipeline division is 85.68 MMT and the total GHG emissions associated with our pipeline operations is 3,85,121 tCO₂e. The specific emissions during the year 2017-18 is 4.55 kg CO₂e/ MT of throughput, against 4.59 kgCO₂e/MT for the year 2016-17. Further, an estimated 7,85,080 tCO₂e of GHG emissions have been avoided through our pipeline transportation as compared to transportation through rail network.

Prevention of Air Pollution

Water

Water has become one of the most precious and scarce resources today. Water related risk is a growing operational and strategic risk for continued operation of any business. At present, there is an increasing competition for water resource across the geographies, which poses a huge sustainability risk for the communities and the ecosystem. As per a recent report by 2030 Water Resources Group, water demand in India 3 would reach 1.5 trillion m³ by 2030 against the current water supply of 740 billion m . Considering the projected growth, it is estimated that India may face an aggregate gap of 50% of water demand against the supply. Though the water stress in the country is majorly driven by the agriculture sector, adopting water efficiency measures across industrial, commercial and residential sectors has to be ensured, besides reusing/recycling for efficient utilization of water and to address the water related risks.

IndianOil understands that water is the vital resource for its sustained operations, takes continuous actions to improve its water efficiency and to reduce overall water footprint. It aims to reduce the effluent water generation in its operations and recycle every drop of effluent water generated. We have installed water metering systems across our installations through which we continuously monitor total water consumed from various sources, effluent water generated and effluent recycled in our operations. We are making steady progress towards our voluntary target of reducing our specific water consumption by 20% by 2020 compared to 2012-13 levels by undertaking various water conservation measures. During the year, the total water consumption by our refineries stands at 99.45 million KL. The increased water consumption is due to the inclusion of newly commissioned Paradip Refinery. However, the specific water consumption by our refineries stands at 1.44 m³ /MT of crude processed for the year 2017-18, which is a reduction of 8.61% compared to 2012-13.

Water footprinting exercises have been carried out every year across the locations to identify and implement water savings measures. We had installed over 560 rainwater harvesting systems till date with water harvesting potential of around 3 billion litres per annum. During the year, IndianOil refineries have recycled around 38.74 million Kl of water i.e., 89% of effluent water generated. For Indian Oil, surface water is the major source followed by ground water. Measures like rainwater harvesting, reusing/recycling of effluent water generated have helped refineries to reduce the fresh intake of water. We continuously monitor the quality of treated effluent water discharged outside our installation and ensure the PCB guidelines are complied with. Further, IndianOil has ensured that no water resources have been significantly affected due to its operations.

Waste

Environment Expenditure

Bio-Diversity

Product Responsibility

IndianOil has taken continuous efforts in its progress towards product stewardship and thus constantly minimizing the health, safety and environmental impact of its products. IndianOil his supplying BS-IV grade fuel on pan India basis and commenced the supply of BS-VI grade fuel in Delhi region from 1st April 2018.

Research, Development & Innovation

Marketing Communication

Customer Health & Safety

Product information & Labelling

Customer Satisfaction

Customer Satisfaction Survey

Customer satisfaction, trust and brand loyalty is vital for business sustainability. IndianOil strives to ensure that customers receive our utmost attention and the best quality products. In this regard, we continuously engage with our customers, take their feedback and improve our product / service offerings.

For our bulk customers, Customer Relationship Officers have been assigned for resolution of customer issues, through a single window option. IndianOil also has a dedicated department which keeps track of customer sentiments with respect to IndianOil's products and services.

A market research was also carried out through external Consultants to assess customer satisfaction. In line with the suggestions from the report, we have undertaken necessary upgradation at 1,060 retail outlets thus far. IndianOil launched a new customer grievance platform called 'e-PIC grievance module' in January 2018 which replaced the substantiated complaints regarding breaches of customer privacy and losses of customer data.

In regards to Petrochemicals products, IndianOil has deployed a complaint redressal officer at Polymer and PTA plant locations who keeps track of all customer complaints from the origin to root cause analysis to mitigation. Customer visits are also undertaken by the sales team to address their concerns. Certification of Analysis depicting all quality parameters is attached with each consignment dispatched to the industrial customers while the daily dispatch and funds report are also shared with them.

The Institutional Business has a system of Nodal Officers/CRO (Customer Relationship Officers) for resolution of customer issues, through a single window option for major customers. The Aviation Group takes customer feedback on regular basis. In regards to 'Branding', the Group is administering the Online Reputation Management (ORM) on the web, which tracks the customer sentiments (negative/positive/neutral) with respect to IndianOil's products and services. The ongoing periodical reporting system and the online ORM dashboard content, capture all the conversations on the web including the tweets (and excluding the Facebook accounts) on IndianOil by all its stakeholders including customers. A market research was carried out during 2017-18 to assess customer satisfaction at our retail outlets.