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.
An organization with a good corporate governance can leverage it to create a greater brand value that would attract customers, investors, suppliers and contributors. A good corporate governance image is an important factor for raising financial capital.
Giving paramount importance for “Trust”, IndianOil believes that the bond between internal and external stakeholders is of immense value towards translating the blueprint of growth into enduring accomplishments.
Sustainability in IndianOil
For IndianOil, sustainability has become the most important pillar of its progress. IndianOil has Corporate Social Responsibility and Sustainable Development Committee at the Board Level, to recommend sustainability initiatives and monitor the progress of initiatives undertaken. IndianOil has always embraced environmentally sustainable business practices and has taken continuous efforts to maintain environmental and social well being.
Guidelines & Policies
IndianOil's Sustainability & CSR Policy
IndianOil has formed Alternate Energy and Sustainable Development (AE & SD) Group, a dedicated team at the corporate level to align our initiatives towards sustainable development. IndianOil has developed and implemented various sustainability policies at the organizational level .
Renewable Energy Initiatives
India has a greater potential for harnessing power from renewable sources. Power generation from renewable source continues to grow, with the share of renewable energy in the country's energy mix at 19% as on 31st March 2018. Despite increase in renewable energy installed capacity, there is still large untapped potential in India. As per INDC commitment, India is committed to increase the renewable power capacity to 175 GW.
IndianOil has strong focus towards country's energy transition and committed to increase its renewable energy capacity to 260 MW by 2020. The major projects undertaken by IndianOil to increase the share of renewable energy in its overall energy mix are grid connected wind power, grid connected and off grid solar power. During the year 2017-18, we had invested L54.22 Crore in renewable energy projects. The total generation from renewable power during the year is 337 million units, which is approximately 5% of total electricity consumption.
IndianOil's approach to sustainability is factual and realistic as we continuously account for impact on environment and society due to our operations across the value chain. As the environment risks for any organization have grown in importance during the past two decades, IndianOil is committed to conduct its business responsibly and take continuous efforts to mitigate the environment impacts due to its operations.
As per Global Risk Report 2018 published by World Economic Forum, three key environment risks viz., extreme weather events, Natural disasters and failure of climate change mitigation & adaptation are in top five global risks in terms of their likelihood as wells as impact. Weather-related risks are one of the leading causes of population displacement. It is estimated that 76% of the 31.1 million people were displaced from their homes as a result of weather-related events during the year 2016.
The Government of India has estimated that India is incurring a loss of $9-10 billion annually due to extreme weather events including water scarcity, heat waves and drought, severe storms and flooding, and associated negative consequences on agriculture productivity, health and livelihoods. The vast consequences of climate change have become more apparent in recent years implying the need for various mitigation and adaptation strategies to address climate change, as no single option is sufficient by itself.
As a responsible corporate, IndianOil undertakes various climate change mitigation and adaptation measures at the Corporate-level to reduce its overall environmental footprint, which in turn percolates into specific interventions at individual locations including retail network. The initiatives includes energy efficiency, energy conservation, water conservation, renewable energy, retail outlet solarization, tree plantation, waste/biomass to fuel, LED lighting, rainwater harvesting, carbon neutral events etc. IndianOil has taken voluntary target to reduce its specific carbon and water footprint by 18% and 20% respectively by 2020, with 2012-13 as the base year which shows our commitment to reduce our environment impacts.
Employees are the backbone of our organisation, and we strive to ensure that the quality of our employees improves and our people remain motivated to achieve success for themselves as well as the organisation. In a large organisation like ours, this essentially requires continuous engagement with our human capital, and having in place a structured and transparent work environment. As per our Corporate Vision, we seek to develop the capabilities of our employees and facilitate their advancement through appropriate training and career planning.
It has been our endeavour to recruit the best from the available talent. About 1,844 executives joined IndianOil during 2017-18 from various reputed institutes and through all India open recruitment exercise. As on 31.03.2018, the IndianOil family stood strong with 33,157 employees, engaged in undertaking pan-India operations of the Corporation.
Health and Safety
Safety consciousness is of particular importance in our industry, where we deal with complex technology and handle hazardous products on a daily basis. As industry leaders, we have done a lot to make our work-places, our supply chain and our operations safe and secure. In terms of technology, automation & modernisation, we are ahead of all others in the industry. However, much more needs to be done.
As we expand in core as well as new businesses in the coming years to achieve the next level of growth, the scale of our operations is bound to expand multifold, and the complexity and inter-dependence of our business processes is bound to increase. More importantly, the need for fool-proof, safe, healthy and environmentfriendly operations will become more important.
IndianOil has a well-defined Health Safety & Environment (HSE) Policy approved by the Board, which gives direction for various safety, occupational health and environment protection related activities. The safety & fire protection measures at IndianOil encompass a wellsensitized Management, focus on imparting regular training and a culture of safety throughout the Company. All our Refineries, Pipelines Units and some of Marketing locations are having accreditation of ISO 14001.
All our employees and contractors, across the functions have the responsibility to identify, assess and mitigate risks. We conduct periodical safety reviews which help in understanding whether the Standard Operating Procedures (SOPs) are followed, systems are in place, and identify any deviations and take corrective actions. It needs dedication and co-operation from all stakeholders to attain zero harm in our operations and progress towards the goal of “Nobody gets Hurt”.
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.