BHARAT HEAVY ELECTRICALS LIMITED,

JHANSI

Opening Ceremony

BHEL Safety Fortnight, 04th to 17th March, 2024

Health, Safety & Environment

NATIONAL SAFETY DAY

 Observed on 4th March each year from the year 1972 to mark the establishment of
National Safety Council on 4th March, 1966
 Primary Purpose: To raise awareness about occupational safety and health
 In the past, BHEL celebrated it as a Safety Week. Extended to a fortnight since
2022

Health, Safety & Environment

 NATIONAL SAFETY DAY THEME - 2024

ई.एस.जी. उत्कृ ष्टता के लिए सुरक्षा नेतृत्व पर ध्यान दें

FOCUS ON SAFETY LEADERSHIP FOR E.S.G. EXCELLENCE

Health, Safety & Environment

Two Components of the Theme

 Focus on Safety Leadership

 ESG (Environmental, Social & Governance)

Health, Safety & Environment

Safety Leadership
 Transcends traditional safety measures by fostering a culture of shared
responsibility and proactive engagement.
Key Steps:
 Empowering Leaders at All Levels
 Integrating Safety into Business Strategy
 Investing in Continuous Improvement
 Engaging Stakeholders

 Urges organizations and individuals to move beyond mere awareness and actively
embrace safety leadership

Health, Safety & Environment

ESG

 ESG stands for Environmental, Social and Governance. These are

called pillars in ESG frameworks and represent the 3 main topic areas that

companies are expected to report in.

 The goal of ESG is to capture all the non-financial risks and

opportunities inherent to a company's day to day activities.

Health, Safety & Environment

 The Case for Sustainable Business Has Come of
UN SDGs are driving a global
commitment to sustainability
Inequality is driving
activism
Age
Within the next 5
years all investors will
COVID-19 has spurred economic
upheaval and The Great Reset measure a company's
impact on society,
government, and the
environment to
determine its worth”
- Larry Fink, BlackRock CEO
Climate change is driving
corporate strategy
7
Why is ESG here to stay?
World faces a number of global challenges:
 Climate Change
 Transitioning from a linear economy to a circular one
 Increasing inequality
 Balancing economic needs with societal needs
 Companies should not only be good stewards of financial capital but also of natural and
social capital and have the necessary governance framework in place to support this.
 More and more investors are incorporating ESG elements into their investment
decision making process, making ESG increasingly important from the perspective
of securing capital, both debt and equity

Health, Safety & Environment

What is ESG?
Climate Change
ESG addresses many topics and
stakeholders.

ESG represents the company’s efforts to Shareholder Rights Environmental Impacts

systematically assess, manage, and
monitor risks of material potential
impact to the strategic and financial
decisions of the company. ESG Risks
The term ESG is often used as a synonym
for sustainability, CSR, public relations,
social investment, or environmental Board Quality Health and Safety
compliance. While some of these elements
may factor into an ESG program, at the
center of ESG is the management of risk
and the preservation of shareholder Communities
value.

9
 Key Components of ESG
Environmental
Climate Change
• Carbon Emissions
• 2-Degree Alignment
• Fossil Fuel Reserves
• Energy Efficiency
• Renewable Energy
Resource Management
• Water Management
• Raw Materials
• Energy Sources
Environmental Impact
• Air Quality
• Ecological impacts
• Critical Incidents (accidents)
• Waste Management
• Plastics
Social
Workforce & Human
Capital
• Inclusion and Diversity
• Supply Chain Labor
• Workplace Health and Safety
• Gender Pay Gap
Value Chain (Suppliers &
Customers)
• Product Health and Safety
• Data Privacy
• Data Security
• Predatory Sales / Pricing
Society and Communities
• Community Relations
• Economic Impacts
• Human Rights
• Corruption
• Political Activities
Corporate
Governance
Management Incentives
• Pay Performance Alignment
• Ownership Requirements
• Metrics and Goals
• Severance / CIC Payouts
• Claw-back Provisions
Board Quality
• Independence
• Skills and Qualifications
• Diversity
• Board Leadership
Shareholder Rights
• Board Accountability to Shareholders
• Shareholders’ ability to act
• Voting Rights
10
ESG as Part of a Company’s Core Strategy
An ESG strategy cannot be separate from the broader organizational strategy. The further development of an ESG strategy effectively
means the integration of sustainability elements to a company’s core strategy.

• Emphasis on Material Issues: Priority is given to the most material issues from a
financial, environmental, and social standpoint.

• Strategic Alignment: The emphasis on materiality allows for the development of an

ESG strategy that is fully integrated with the broader strategy.

• Board Leadership and Oversight: The Board and top management will own the
strategy and oversee its implementation.

• Innovative Programs and Policies: Introduction of new policies, procedures, and

technologies to achieve the company’s long-term strategic objectives.

• Metrics and Goals: The implementation program includes quantitative and qualitative
objectives which can be monitored to measure the company’s progress towards its goals.

• Monitoring: The implementation should allow for regular assessment of the

effectiveness of the various programs, so that the company can make adjustments for
improvement.
ESG - Background
 First mentioned in the 2006 United Nation’s Principles for Responsible
Investment (PRI) report
 ESG criteria was required to be incorporated in the financial evaluations of
companies for the first time
 In April 2021, the European Commission adopted the sustainable finance package
which increased the scope of reporting required. (NFRD to CSRD)
 This increase in scope meant that from 2023 almost 50,000 companies in the EU
will now have to report on ESG issues.

Health, Safety & Environment

 INDIA
• The Companies Act of 2013 introduced early ESG disclosure mandates necessitated firms to
include a Board of Directors report on energy conservation alongside annual financial
statements.
• The Companies Act, 2013, amended in 2021, launched the Business Responsibility and
Sustainability Reporting (BRSR) making it mandatory for the top 1000 listed companies to
disclose their ESG performance under nine specific pillars
• Underscores India’s ambition to align with international reporting practices
• Prior to BRSR, the Ministry of Corporate Affairs (MCA) had introduced the Business
Responsibility Reporting (BRR) guidelines in 2009 which provided the basis for expanding
into a more comprehensive ESG framework.
• Over the course of a decade, this evolution refined and expanded into BRSR, aligning it
with ESG disclosure mandates and international standards
 INDIA
• SEBI placed regulatory framework for value chain ESG disclosures for listed
entities in July 2023
• SEBI has introduced BRSR Core, a sub-set of the BRSR (Business
Responsibility and Sustainability Report), comprising nine Key Performance
Indicators (KPIs) for several E, S and G factors
• Disclosures for the value chain will be made by the listed company as per
BRSR Core as part of its annual report
• ESG rating services can now only be provided by entities that have been
certified by the Securities and Exchange Board of India
 KEY PROVISIONS
• An ERP must adhere to a rating scale of 1-100, where 100 represents the maximum score
• An ERP shall offer at least the following six rating products - ESG Rating, Transition or
Parivartan Score, Combined Score, Core ESG Rating, Core Transition or Parivartan Score
and Core Combined Score.
 KEY PERFORMANCE INDICATORS
1. (BRSR)gas (GHG) footprint
Green-house
2. Water footprint
3. Energy footprint
4. Embracing circularity
5. Enhancing Employee Wellbeing and Safety
6. Enabling Gender Diversity in Business
7. Enabling Inclusive Development
8. Fairness in Engaging with Customers and Suppliers
9. Open-ness of business
BUSINESS RESPONSIBILITY AND SUSTAINABILITY
REPORT
• The BRSR Core is a subset of BRSR, comprising a set of key performance
indicators or metrics under the nine ESG attributes.
• Designed keeping in mind relevance to the Indian/emerging market context,
including new metrics for assurance such as job creation in small towns,
open-ness of business, gross wages paid to women, etc.
• For better global comparability intensity ratios based on revenue adjusted
for purchasing power parity have been included.
• From FY 2023-24, the top 150 listed companies shall file a BRSR Core
report, as part of their annual reports
BRSR TIMELINE
BUSINESS RESPONSIBILITY AND SUSTAINABILITY
REPORT
• The top-250 listed entities in India to disclose their supply-chain emissions on
a comply-or-explain basis from FY25.
• The supply or value chain encompasses the top upstream and downstream
partners which collectively comprise 75% of the listed entity’s
sales/purchases by value respectively.
Safety Leadership & ESG
Numerous benefits that directly contribute to ESG goals:
 Environmental Impact: Proactive safety measures often lead to better resource
management, minimizing waste, emissions, and environmental degradation. Consider spill
prevention in chemical plants or responsible energy use in offices – both directly linked to
environmental sustainability
 Social Responsibility: A safe workplace fosters employee well-being, reduces injuries and
illnesses, and boosts job satisfaction. This leads to lower employee turnover, higher
morale, and a more engaged workforce
 Stronger Governance: Effective safety leadership demonstrates responsible management
practices, attracting investors and building trust with stakeholders. Robust safety protocols
also minimize legal liabilities and regulatory risks, strengthening overall governance.

Health, Safety & Environment

SDGs & ESG

• SDGs are a set of 17 goals adopted by the United Nations in 2015 to end
poverty, protect the planet, and ensure prosperity for all
• ESG factors are a set of criteria used to measure the sustainability and
responsible business practices of companies
• Many of the SDGs can be achieved through ESG practices, such as
reducing carbon emissions, improving working conditions, and promoting
diversity and inclusion
SDGs and ESG factors are linked

• SDG 13: Climate Action through reducing carbon emissions, investing in

renewable energy, and promoting energy efficiency
• SDG 6: Clean Water & Sanitation through reducing water pollution,
improving water management, and providing access to clean water and
sanitation
• SDG 9: Industry, innovation & Infrastructure through sustainable
industrialization and upgrading industrial technologies
• SDG 8: Decent Work & Economic Growth through creating good jobs,
promoting fair wages, and providing safe working conditions
• SDG 10: Reduced Inequality through promoting diversity and inclusion,
providing equal opportunities, and tackling discrimination
• ESG is focused on screening companies for investments, largely by understanding how a business is affected
by environment and social issues (with an additional focus on whether a company has good governance in place
to manage those risks and pressures
• CSR refers to a company's responsibility to be socially accountable to its stakeholders. CSR encompasses a
wide range of qualitative activities, including philanthropy, volunteerism, and ethical business practices which
may or may not be quantified by a business
• Sustainable companies seek to create long-term value while minimizing negative impacts on the environment
and society
 SUMMARY OF ACTIVITIES PLANNED FOR THE BHEL
SAFETY FORTNIGHT 2024

• Display of Banners & Posters

• Distribution of Safety Badge
• Safety Pledge
• Distribution of Safety Posters
• Fire Fighting Demonstrations
• Safety Exhibition

Health, Safety & Environment

 GIST OF ACTIVITIES PLANNED
• Workplace Safety
Training/Awareness Awareness Programme
Sessions
• ESG Awareness Programme
• Personal Protective Equipment Awareness
• Health Programme on First Aid & CPR
• Road Safety Awareness Session at Schools

Health, Safety & Environment

 GIST OF ACTIVITIES PLANNED

• Screening of Safety Films including those on ESG

• Fire Safety Awareness Programme for Township Residents
• Safety Competitions(Poster, Slogan, Quiz) in Factory based on the
theme
• Safety Processions at Shop Floor
• Community Fire Awareness Programme

Health, Safety & Environment

THANK YOU
Health, Safety & Environment