1. 1 © Ambuja Cements Ltd. 2011 Building Resilience Presented by :- Ms. Pearl Tiwari CSR Conference, Sri Lanka October 3, 2014

2. 2 © Ambuja Cements Ltd. 2011 Ambuja Cements Is One of India’s leading cement manufacturers – today part of Holcim Group Founded 28 years ago on principles of sustainability. Current cement capacity : 27.25 million tons (grown 40 times in 28 years) 5 integrated plants, 8 grinding units and 3 ports with packing plants. The first in India to build a captive port with its own fleet of ships. Home grown philosophy called I CAN - gives people the authority to set their targets and the freedom to achieve their goals.

3. 3 © Ambuja Cements Ltd. 2011 Building resilience through our Vision Leave no trace To give back more than we take To clear more than we pollute

4. 4 © Ambuja Cements Ltd. 2011 : A special entity Energise, Involve and Enable Communities to Realise their Potential Mission: Outreach: 22 locations 12 states 14 lakhs 861 villages Professionally guided and run - 440 development professionals Osara Surat Darlaghat Ambujanagar Mundwa Chirawa Dadri Roorkee Bathinda Ropar Nalagarh Bhatapara Nadikudi Kochi Chandrapur Gandhinagar Panvel Sanand Chhindwara Sankrail Farakka Rabriyawas

5. 5 © Ambuja Cements Ltd. 2011 The Model AMBUJASOCIETYACF Company needs: Energy Land Water CO2 Neutrality ACF has: Organization People Skills Close to Society Society needs: Livelihood / Quality of life Safe and clean environment Energy, land & water Focus: Roadmap & KPIs

6. 6 © Ambuja Cements Ltd. 2011 CSR - Towards Sustainability -Adhoc community development projects - Demand driven Initial Stage - More Strategic -Engagement of stakeholders Intermediate -Integrated in to sustainability -Organizational structure -Monitoring and Impact (ROI) - Inclusive Business Current stage

7. 7 © Ambuja Cements Ltd. 2011 Learning 1: Needs assessment is crucial Prepare a strategy Whose need? Community Company

8. © Ambuja Cements Ltd. 2011 CSR: A mind-set for sustainability Community Development Initiatives: Based on Needs Assessment Natural Resource Management -Water -Land Livelihood -Agro based -Skill Based -Mason Training Human Development - Health - HIV & AIDS - Education - Women & Youth - Infrastructure Project Affected People (PAPs) Business Sustainability Company gets easy access to natural resources – license to operate Productive and economically secured neighborhood Reduced pressure for employment on Company Skilled masons entering the construction industry Brand ambassadors for Ambuja Cements Healthier and more productive neighborhood Better standard of Human Development Index Gain reputation for building lives for PAPs. Exploring CSV projects -Agro biomass for AFR -Sanitation for All -Spirulina for combating malnutrition Business related and socially relevant 98

9. 9 © Ambuja Cements Ltd. 2011 Learning 2: Projects to be aligned with business Company needs: Energy Land Water CO2 Neutrality Secure Plants ACF does: Creates solutions -Built check dams / structures Rejuvenated ponds Capacity building / Training Society needs: Livelihood / Quality of Life Safe and clean environment Energy, land & water Focus: Roadmap & KPIs Water Positive (at each site) Company does: Saves Water Built Harvesting Structures E.g. 1: Water Sustainability

10. © Ambuja Cements Ltd. 2011 Achievement Check dams constructed - 274 Dykes constructed - 20 Well recharging/ Percolation wells - 1301 Ponds constructed / renovated - 390 RRWHS - 4,397 Khadine Bund - 17 Impacts Increase in Water Level (2-12 Mts) and Improvement in water quality Assured availability of Drinking Water at door step Reversing Trend in Salinity Ingress 1 crop to 2 to 3 crops every year 10

11. © Ambuja Cements Ltd. 2011 Salinity Mitigation Area Mapping Salinity Mitigation Project 11

12. ACF’s Intervention in water at Rabriyawas 12

13. © Ambuja Cements Ltd. 2011 Intensive & Integrated Water Resources Development Programme in Kodinar Block Salinity Ingression Status During 2001, 2005, 2008 & 2009 IN 10 KM Radius Work DoneResults 13

14. © Ambuja Cements Ltd. 2011 Ambuja Cements: A Water Positive Company Minimize and measure water consumption Documentation (TCS as consultants) 2012 - Water Positive Assurance Certificate (DNV as certifiers) YearWater IndexDebit (million litters) Credit (million litters) 20112 times838916860 20122.5 times795019888 20132.75 times713119402 14

15. © Ambuja Cements Ltd. 2011 AMBUJASOCIETYACF Company needs: Energy Land Water CO2 Neutrality Secure Plants ACF does: Assures productive livelihoods *Agro based *Skill based Society needs: Livelihood / Quality of Life Safe and clean environment Energy, land & water Focus: Roadmap & KPIs Reduce pressure of employment on company Company does: Employment to a few Mainly indirect employment Eg. 2: Responsibility towards Livelihood 15

16. © Ambuja Cements Ltd. 2011 Agro Based Intervention Capacity Building Training on new / improved practices On farm demonstrations Krishi Vigyan Kendra Technologies / Improved Practices Micro Irrigation - over 3000 Ha Horticulture Plantation – 4000 Ha System of Rice Intensification – 1800 Ha Better Cotton Initiative – 28000 Ha Market led Extension Promoting Farmer’s Organizations – 6 FPOs Inputs and Outputs – Collective Marketing 16

17. © Ambuja Cements Ltd. 2011 Skill Training 16 Skill training institutes Over 19,000 trainees Over 40 different trades Placement - 80% gainfully employed Imbibing a culture of work safety 17 Automobile Welder Bed Side Attendant

18. © Ambuja Cements Ltd. 2011 Mason Training Directly related to the business Providing skills to construction Industry Promote safety culture Training with Certification 80% of placements Brand ambassadors of the Company 18

19. © Ambuja Cements Ltd. 2011 AMBUJASOCIETYACF Company needs: Energy Land Water CO2 Neutrality Secure plants ACF does: Built network of farmers Planned collection points Facilitates collectives & Training Society needs: Livelihood / Quality of Life Safe and clean environment Energy, land & water Focus: Roadmap & KPIs 15,000+ tonnes of agri waste Company does: Built Feeding Systems Measuring Devices Permits & Pollution Corporate Function Eg. 3: Energy Efficiency 19

20. Dense Network of Farmers Manager AFR ACL Cluster-1 Cluster-2Cluster-3 Village level Group Farmer Club Village level Group Farmer Club Green Gram Farmer Mustard Farmer Green Gram Farmer Mustard Farmer Cumin Farmer Biomass Procurement Shree Balaji Farmer Producer Company The only registered vendor with ACL Biomass Project Executive ACF UNIT AFR COMMITTEE 20

21. © Ambuja Cements Ltd. 2011 Wasteful burning of crop residue - a common practice in India Scope of using biomass as alternate fuel in cement plants Alternate source of community Livelihood Developed Farmer’s Organizations for facilitating the supply Contributed to reduction in Net Emission Pilot at a site – saved INR 20million (2013) June 2014 Procuring biomass from farmers: win – win for all 21

22. 22 © Ambuja Cements Ltd. 2011 Learning no 3: Facilitate CBOs for sustainability Village InstitutionsAdvantage Village Development Committee Drive village priorities and collective action for development Water user associations/ Watershed committees Involved people in subsequent maintenance Organized Sakhis (Village health workers) Access to Primary Health Care Federation of Women Micro Credit and handling village emergencies Farmer Producer Companies Input + Output linkages for farmers

23. © Ambuja Cements Ltd. 2011 Opportunities to engage with collectives Project sustainability Collectives useful to Company.  Biomass Procurement  Positive voice at Public Hearing Strategic Benefit 23

24. 24 © Ambuja Cements Ltd. 2011 Learning No 4: Keep Engagement Proactive Not Reactive Social Engagement Scorecard - An annual exercise Community Advisory Panels regular Sharing Opportunities Site Specific Impact Assessment a human rights risk management system

25. 25 © Ambuja Cements Ltd. 2011 Learning No 5: Need for replication and upscale Pilot D Demonstrate Document

26. © Ambuja Cements Ltd. 2011 Started in 2010 - 2500 farmers / 122 Groups To impart knowledge & skills on cotton cultivation -BCI principles and their implementation in field. Demonstration & Training on sustainable production Training a cadre of village level youth for scale up Scaled to over 17000 farmers / 572 Groups Promoted farmer’s producer companies for sustaining impact Productivity / Profit 12% Increase in yield per hectare 26% Increase in profit Water / Pesticides 34% reduction in water use 42% reduction in pesticides Chemical Fertilizer Use of Urea reduce by 17% Use of DAP reduce by 37% Eg 1: Better Cotton Initiative 26

27. © Ambuja Cements Ltd. 2011 Pilot - 19 ‘Sakhis’ in one location in year 2000 Regular training/ refresher course for skill building leading to NIOS certification Begun with components of MCH (Institutional deliveries & child / maternal mortality Added aspects like Home based Neonatal Care Up scaled to 8 geographies with over 330 ‘sakhis’ 50% ‘Sakhis’ absorbed in Public Health System Impact Health access in neighborhood. Better health status Reduction in infant and neonatal mortality by over 50% Institutional deliveries almost doubled Increase in health seeking behavior from Government Eg. 2 :Village Level Health Workers – ‘Sakhis’ 71 27

28. 28 © Ambuja Cements Ltd. 2011 Learning No 6: Important to measure ROI Values in million Ambuja creates significant societal value $ Profit + − F + − ES True Value $ Rain water harvesting Alternative raw materials and fuels Quarry restoration Renewable energy Water saving at customer end Gaseous emissions Water extraction Land disturbed Economic value added Value created for society through CSR initiative Human health 44490 30470 14020 True Value Concept : social and environmental profit and loss statement

29. 29 © Ambuja Cements Ltd. 2011 Engaging stakeholders for sustainability NGO Govt. of India Media

30. © Ambuja Cements Ltd. 2011 Unit Sustainable Committee Engagement by relevant team Resilience Unit Head Environment HR Communication AFR CSR A Tested Model CSR HR Land AFR CSR Env Neighbour of Choice 30

31. © Ambuja Cements Ltd. 2011 Thank You