So The World Builds Better ACC LIMITED Sustainable ...

1 ACC LIMITEDS ustainable development report 2016So The World Builds BetterContentsOrganization & Building the Nation Products & Services Customer Excellence Corporate Governance Compliances & other aspects Chairman s Message Foreword - MD & CEO 02 Disclosures & GRI Reporting UN Global Compact Principles CSI Dashboard 2016 41 Strategy & Stakeholder Engagement Materiality & Strategy Business Risks & Opportunities SD Scorecard 2016 SD 2030 Plan Economic Performance Marketing Communications Procurement Practices Emissions Energy Geocycle Raw Materials Water Biodiversity Waste & Effluents Health & Safety People & Employment Human Rights Community development & Social Responsibility Assurance Statement Glossary GRI Standards - In Accordance Comprehensive - Content Index 98 101 - 03436 - 41204 - 21542 - 51772 - 91892 - 102322 - 35652 - 71 SocialAnnexuresThis report has been prepared in accordance with the GRI Standards.

2 Comprehensive s Message crossed the eight decade mark in 2016 , earning for itself the distinction of becoming one of a select few Indian companies of this vintage that have remained in the same business from inception. Over all these years, the company has renewed itself periodically to keep it contemporary and up to speed with competition. 2016 turned out a mixed bag of challenges and opportunities. On the one hand, notwithstanding some bold reforms and reasonable overall growth, the economy could not energize the construction sector; as a result, the company had to contend with subdued sales in most of its major markets.

3 On the up side, our cement and ready mixed concrete businesses recorded positive developments by way of enhanced cost efficiency, innovative product development and insightful customer excellence initiatives. The company s presence in the eastern region was strengthened with completion of the Jamul integrated project that included a new clinkering line and cement grinding unit in Jamul, Chhattisgarh and a second grinding unit in Sindri, August last year, ACC LIMITED became a subsidiary of Ambuja Cements LIMITED (ACL) following a scheme of amalgamation between the latter and Holcim (India) Private LIMITED , while LafargeHolcim Ltd continued to remain the ultimate Holding Company.

4 In April 2017, the Boards of ACC and ACL announced their desire to explore opportunities of a potential merger of the two companies with a view to unite the strengths of both entities in order to deliver greater synergies to their combined change of guard was announced towards the end of the year. Mr Neeraj Akhoury took over as Managing Director & CEO from February 4, 2017 in a seamless transition in place of Mr Harish Badami who tendered his resignation as Chief Executive Officer & Managing Director after a short tenure that was rich in contribution.

5 It is a matter of pride that the company s unwavering focus on Sustainable development and good corporate citizenship was publicly reaffirmed by way of several prestigious awards including that of India s Most Sustainable for the third time by the CII-ITC Centre of Excellence in Sustainable development . That this accolade was shared with Ambuja Cements LIMITED makes it all the more special for the look forward with enthusiasm to a renewed momentum in the economy which shows a healthy appetite for growth. The construction, building materials and cement industries are particularly enthused by the Union Budget proposals announced this February that augur well for accelerated investment in infrastructure development , housing and other key sectors.

6 I am confident that ACC, aided by its team of dedicated employees and loyal associates, will remain professionally managed, demonstrating sound ethics and persevering on the path of delivering customer excellence and maximum value to its principal SekhsariaWe look forward with enthusiasm to a renewed momentum in the economy which shows a healthy appetite for growthDear Stakeholder,It is a privilege to be invited to steer an organization with such an extraordinary legacy and outstanding reputation. In delivering the demands of this office, it is awe-inspiring to follow in the footsteps of the many towering personalities who have preceded me and are legends in the company s annals.

7 These leaders have led the company successfully, providing it the requisite dynamism to reach for growth, profitability, customer excellence and greater value for shareholders. I am proud to note that this is a company which has always shown respect for the nation, its people and environment with a long tradition of planet-friendly TO SuSTAINABILITyAs with our parent group LafargeHolcim, sustainability is an essential part of our business value chain and we are deeply committed to ensure that it remains central to our strategy and decision-making. In this regard we aim to achieve high standards in customer excellence, innovation, resource conservation, environment management and community engagement to create value for all stakeholders.

8 In the 10th Sustainable development report , presented here, we describe the progress made in respect of economic, environmental and social aspects in 2016 . This was a year when ACC was again singled out as being among India s Most Sustainable and felicitated with the prestigious CII-ITC Sustainability Award 2016 for Outstanding Accomplishment in recognition of its continued effort and commitment to the cause of Sustainable development . This is the third time in the last four years when we are recipients of this award, considered to be among the country s most coveted in the field of corporate Sustainable 2016 we formulated our SD 2030 Plan outlining the path we wish to take to build and secure for ourselves a Sustainable future.

9 Aligned with the LafargeHolcim 2030 Plan that supports the UN Sustainable development Goals , our plan comprises a set of commitments divided broadly into four main fields of action that address climate change, circular economy, water & nature and people & communities. Our 2030 Plan targets sets quantitative targets related to our direct and indirect impacts over the whole life-cycle of our products and services on which we will periodically monitor and report progress. ECONOMIC PERfORMANCEThe Indian economy grew at around in 2016 , among the fastest growth rates recorded by any of the World s major economies.

10 A good monsoon after two rain-deficient years brought good cheer for the rural economy while the Foreword We were felicitated with the prestigious CII-ITC Sustainability Award 2016 for Outstanding Accomplishment manufacturing sector grew at about ~ However these did not serve to stimulate the construction sector. The landmark demonetization scheme, no doubt a major reform, had a tapering impact on construction activity in the last quarter of 2016 as a squeeze on liquidity LIMITED commercial transactions. CEMENT BuSINESSIn 2016 we faced a decline in total cement sales by as compared to 2015 following subdued demand in our major markets.