Operationally, our efforts focus on improving energy efficiency, increasing renewable electricity, deploying cleaner technologies and optimising processes, which together support reduction in Scope 1 and Scope 2 emissions. Beyond our own operations, we continued to assess our value-chain footprint and supplier ESG maturity. While engagement on specific emission reduction initiatives is still evolving, these assessments help identify priority areas across the value chain where future collaboration will be important.
We also assess climate-related physical and transition risks in line with TCFD recommendations, using scenario analysis to identify vulnerabilities and opportunities. The insights are integrated into risk management and business planning, supporting better preparedness for a changing climate.
We will continue to strengthen climate action by scaling efficiency measures, expanding renewable electricity options and integrating climate risks into business planning. We will also work towards engaging value-chain partners on practical and phased emission reduction opportunities.
Climate Change Mitigation
Our approach to climate change mitigation is underpinned by the assessment of greenhouse gas emissions across our operations and value chain. Emissions from operations arise primarily from fuel consumption and purchased electricity, while value-chain emissions are largely linked to upstream supplier activities and transportation.
Our decarbonisation pathway is operationalised through focused enablers across own operations and the value chain. Within operations, the emphasis is on improving energy efficiency, increasing renewable electricity, deploying cleaner technologies and optimising processes. Across the value chain, we are strengthening product and formulation optimisation, evaluating lower-carbon raw material alternatives, engaging with suppliers and improving logistics efficiency.
Key enablers to address emissions across our operations:
E1
Enabler 1
Energy Efficiency
E2
Enabler 2
Renewable Energy
E3
Enabler 3
Sustainable optimisation of products and services
E4
Enabler 4
Lesser carbon intensive raw material alternatives
E5
Enabler 5
Engagement with suppliers to reduce emissions
E6
Enabler 6
Optimising transportation and distribution
Own operations:
| Metric | Target 2030 | Performance in 2025-26 |
|---|---|---|
| Specific emission (kg CO2e/KL) | 26.2 | 40.5 |
| Reduction in specific (Scope 1 & 2) emission per KL of finished product from baseline (%) | 80% reduction | 69% reduction |
| Energy conservation | 54.4 | 87.3 |
| Reduction in specific electricity consumption (kWh/KL) from baseline | 53% reduction | 25% reduction |
| Renewable electricity in total electricity consumed across factories (%) | 100@ | 56.5 |
The long-term emissions trajectory of our decorative paints business reflects sustained improvements from the FY 2013-14 baseline. Since then, absolute Scope 1 emissions have reduced by 34%, while Scope 2 emissions have declined by 33% at decorative paint manufacturing units. Specific Scope 1 and Scope 2 emission intensity has also reduced by 69% from the baseline year, supported by energy efficiency measures, renewable electricity and operational improvements.
During the year, Scope 1 and Scope 2 emissions remained broadly comparable to the previous year. While electricity consumption increased due to operational requirements, the addition of renewable electricity capacity helped offset the impact on emissions, resulting in a similar emissions profile over the last two years.
Scope 1 (tCO2e)
Scope 2 (tCO2e)*
Specific Scope 1 and Scope 2 emission (kg CO2e/KL)
*The Scope 2 emissions reported here are market-based. The location-based Scope 2 emissions for decorative paint manufacturing units and at standalone level were 69,650 tCO2e and 89,893 tCO2e respectively.
The Scope 1 and Scope 2 emissions on a standalone basis during the year were 79,686 tCO2e and 55,660 tCO2e respectively. The emission intensity was 102.6 kg CO2e/KL. Biogenic emissions due to the combustion of biofuels were 126 tCO2e.
69%
Reduction in specific (Scope 1 & 2) emission per KL of finished product from baseline
33%
Reduction in absolute Scope 1 & Scope 2 emissions from baseline
E1Energy efficiency
Energy management remains a key lever in reducing operational emissions across our decorative paints manufacturing network. Our approach focuses on process optimisation, deployment of efficient technologies, upgrade of legacy infrastructure and employee awareness to support sustained improvements in energy performance.
Specific electricity consumption at our decorative paint manufacturing units increased during the year, reflecting stabilisation of newly added capacities and the continued impact of backward integration. While expansion-related impacts are expected to moderate with higher utilisation, backward integration has structurally increased electricity requirements within the manufacturing boundary, with a part of this consumption not proportionately reflected in finished goods output. Despite this, specific electricity consumption remained 25% lower than the FY 2013-14 baseline.
Specific electricity consumption at decorative paint manufacturing units (kWh/KL)
FY 2013-14
During the year, total energy consumption across our decorative paint manufacturing units stood at 6,88,239 GJ, including 2,27,379 GJ from renewable sources.
On a standalone basis, total energy consumption was 14,30,921 GJ, comprising 9,68,286 GJ of direct energy and 4,62,635 GJ of indirect energy, including 17,083 GJ of procured steam. Energy intensity was recorded at 1.09 GJ/KL.
Our energy mix continues to shift towards lower-carbon sources, with natural gas replacing diesel across most heating applications and renewable electricity capacity increasing during the year. A structured energy audit framework and continuous site-level monitoring enable us to identify efficiency opportunities, optimise performance and support long-term emissions reduction goals.
Energy consumption by source at decorative paint manufacturing units (GJ)
Renewable Energy
- Electricity & Steam: 2,27,379 GJ
Non-renewable Energy
- Fuel: 2,74,439 GJ
- Electricity & Steam: 1,86,421 GJ
- Total: 4,60,860 GJ
E2Renewable energy
Our decorative paint manufacturing facilities have an installed renewable energy capacity of 51.9 MW, comprising 27.6 MW of solar and 24.3 MW of wind capacity. During the reporting year, renewable electricity accounted for 56.5% of total electricity consumption at decorative paint manufacturing units, helping avoid approximately 44,844 tCO2e emissions compared to the baseline year. The renewable share was affected by higher electricity demand, while regulatory requirements such as minimum grid utilisation and banking restrictions continued to limit the netting-off of renewable electricity. We will continue to invest in enhancing renewable energy capacity to support our long-term decarbonisation efforts.
Renewable electricity consumption across decorative paint manufacturing units
FY 2013-14
Installation of PV system at Ankleshwar and Khandala
Electricity consumption is a significant contributor to indirect emissions. To increase the use of renewable energy and reduce dependence on conventional grid power, we commissioned on-site solar photovoltaic (PV) systems with a combined capacity of 3 MWp across our Ankleshwar and Khandala manufacturing facilities.
The project is expected to generate approximately 4.5 million kWh of renewable electricity annually, helping avoid around 3,200 tCO2e emissions each year. Beyond reducing our greenhouse gas footprint, the initiative strengthens energy reliability and lowers long-term exposure to grid power price volatility.
Value chain
We continue to strengthen the assessment and management of value-chain emissions, particularly those linked to purchased goods and transportation. During the year, total Scope 3 emissions were estimated at 31.5 lakh tCO2e, with supplier operations and transportation together accounting for approximately 94% of total emissions.
We are advancing emission reduction efforts through initiatives such as formulation optimisation, adoption of low-carbon alternatives, promotion of lower-emission transport, and deeper integration of sustainability across our value chain.
| Emission Category | FY 2024-25 | FY 2025-26 |
|---|---|---|
| Cat 1 – Suppliers (Purchased Goods & Services) |
26.6 lakh tCO2e |
26.1 lakh tCO2e |
| Cat 4 – Transportation (Inbound & Outbound) |
4.7 lakh tCO2e |
4.5 lakh tCO2e |
Total Emission split
- 80% Scope 3 Category 1
- 14% Scope 3 Category 4
- 2% Scope 3 Other categories
- 4% Scope 1 and Scope 2 (Standalone)
E3Sustainable optimisation of products and services
We focus on optimising formulations and improving process efficiency to reduce the overall carbon footprint of our products. It minimises the use of high-emission raw materials by developing alternative formulations and implementing process innovations.
49,125 tCO2e
GHG reduced through formulation optimisation in FY 2025-26
E4Lesser carbon-intensive raw material alternatives
We are committed to reducing our environmental impact by evaluating and adopting raw material alternatives with lower embedded carbon. This includes exploring alternate grades and chemistries and increasing the use of renewable or bio-based content.
7.0%
of renewable/
bio-based raw materials
36.8%
of recycled content in
plastic packaging
26,092 tCO2e
resultant avoidance due to
plastic recycled content
E5Engagement with suppliers to reduce emissions
Purchased goods and services remain the largest contributor to our Scope 3 emissions. Under Samaveta, we assess supplier ESG maturity and emissions relevance using self-declaration forms, public disclosures, site or virtual assessments and capacity-building interventions. The programme helps us strengthen transparency, understand supplier practices across environmental and social parameters, identify improvement areas and build the foundation for future value-chain decarbonisation efforts.
During the year, supplier-specific data was used to calculate 37% of our total Scope 3 GHG emissions, representing 46% of upstream supplier-linked emissions. This has improved the quality of our Scope 3 inventory by reducing reliance on emission factors from databases for covered suppliers and will support more targeted, category-specific engagement with suppliers over time.
46%
of our upstream supplier linked
GHG emissions were
calculated
using supplier-specific data
Sustainable Supply Chain Management
Our Sustainable Supply Chain Management framework embeds environmental, social and governance considerations into supplier relationships and supports responsible sourcing, risk management and long-term value creation. The framework is anchored in the Code of Conduct for Business Partners and guided by globally recognised principles, including the United Nations Global Compact, International Labour Organization standards and ISO 26000.
Sustainable Supply Chain Framework
Process
Tools
All suppliers
- Acknowledge Code of Conduct for Business PartnersSupplier Outreach
- ESG criteria in new supplier screeningSupplier onboarding
- Samaveta Academy - Capacity Building on ESGSamaveta
Critical Supplier
- Self-Declaration Forms - Capturing ESG performance in terms of maturity and impact
- Comprehensive Site Assessment
*Business partners that fall in the top quartile (75%) of value by spend or suppliers having a significant ESG footprint
Supplier engagement is driven through Samaveta, our structured programme to assess, prioritise and engage suppliers based on ESG maturity and potential impact. The programme integrates ESG criteria into supplier onboarding, seeks Code of Conduct acknowledgement from business partners, and uses Self-Declaration Forms, public disclosures, and site or virtual assessments for deeper evaluation of critical suppliers. Capacity-building support through Samaveta Academy is available to suppliers to strengthen awareness and capability on relevant ESG topics. These interventions help identify ESG hotspots across raw materials, logistics and packaging, strengthen supply chain transparency, and support more resilient and responsible sourcing practices. During the year, we expanded supplier coverage through SDFs and site or virtual assessments, while all new raw material suppliers were onboarded following evaluation on key ESG parameters.
| FY 2022-23 | FY 2023-24 | FY 2024-25 | FY 2025-26 | |
|---|---|---|---|---|
| Partners acknowledged the Code of Conduct for Business Partners (No.) | 1,279 | 2,793 | 3,188 | 3,264 |
| Raw and packing material suppliers acknowledged Code of Conduct for Business Partners (% of spend) | >65% | >90% | >90% | >92% |
| New suppliers screened and onboarded based on ESG criteria | 100% | 100% | 100% | 100% |
| Capacity building of business partners (% spend) | - | - | 12% | 12% |
| Partners assessed through SDFs (% spend) | - | 77% | 81% | 89% |
| Site/virtual assessment (% of spend) | - | - | 20% | 28% |
Over the past few years, supplier responses through SDFs have largely aligned with findings from site evaluations, with mainline operations found to be compliant. Building on this foundation, our focus is progressively shifting from compliance-led assessments to collaborative improvement, including engagement on greener chemistry, operational efficiencies and measurable sustainability performance.
E6Optimising transportation and distribution
As transportation remains a key contributor to value-chain emissions, our logistics approach focuses on improving efficiency and increasing the use of lower-carbon transport modes. During the year, we continued to shift suitable movements from road to sea and multimodal options, including rail, while exploring opportunities for load pooling, reverse logistics and lower-emission vehicles. We also continue to leverage opportunities under the National Logistics Policy to strengthen our green logistics framework and improve distribution efficiency.
4,200+
tonnes of raw material and
finished goods were dispatched
by sea
instead of road
59,000+
tonnes of raw material and
finished goods were dispatched
through
multimodal movement,
including rail
5,600+ tCO2e
of GHG emissions avoided
Climate change adaptation
We assess climate-related risks and opportunities in line with TCFD recommendations to strengthen preparedness across our operations and inform long-term business planning. The assessment covers both physical and transition risks, with inputs from internal stakeholders and scenario-based analysis.
Physical risk assessment
Physical risks are assessed for short-term and long-term horizons across our decorative paint manufacturing sites using IPCC scenarios, including RCP 4.5 and RCP 8.5. The analysis considers climate hazards such as heatwaves, droughts, cyclones and floods. While the overall risk profile has been assessed as low, we continue to implement site-level resilience measures such as rainwater harvesting, improved ventilation and water conservation systems.
Transition risk assessment
Transition risks are evaluated across policy, legal, technology and market dimensions, considering India’s net-zero commitments and low-carbon transition pathways. The assessment helps identify potential risks from evolving regulation, energy transition and market shifts, as well as opportunities in energy sourcing, product innovation and resource optimisation. These insights are integrated into our risk management and business planning processes, supporting long-term climate resilience.