BUSINESS RESPONSIBILITY REPORT

Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle

Creating sustainable products is a part of RIL's endeavour towards responsible product stewardship. RIL aims to make its products safer and more environment friendly.

1. List three products or services whose design has incorporated social or environmental concerns, risks and/or opportunities.
It is RIL's constant endeavour to make products that not only have a positive impact on the environment, but also cater to consumer needs. Some of the products created during FY 2014-15 are listed below:

2. Procedures in place for sustainable sourcing (including transportation) and percentage of inputs sourced sustainably

RIL's ethos on sustainable sourcing symbolises protection of the environment, social progress and supporting India's economic development. The Company has adopted RC-14001 international environmental management system in an endeavour to effectively manage the manufacturing, distribution and use of chemicals in the products. To improve the protection of human health and the environment, the Company has sourced REACH (Registration, Evaluation, Authorisation and Restriction of Chemical's) compliant materials and its requirements include that its tier 1 suppliers also procure REACH compliant materials. RIL ensures 100% compliance of statutory laws and regulations including labour laws by its contractors.

In order to dispose of the waste effectively, the Company audits its processors' operations to ensure that credible disposal practices. RIL prefers vendors who undertake green initiatives and reduce, reuse, recycle as a continuous exercise. The Company takes highest care in safe handling of its materials and also does reconnaissance of entire logistics handling/ storage from supplier factory to its gate. Through it's large scale new capacity addition projects, it has enabled the creation of a large engineering base in India.

3. Steps taken to procure goods and services from local and small producers, including communities and capability building activities undertaken for local and small vendors

RIL has invested in mega projects and operations in India. These investments have developed India's chemicals and engineering supplier base. Today leading Indian engineering companies, raw materials companies and industrial goods companies are RIL's long-term vendor partners. Through its sustained efforts, the Company has helped local industry develop new products to serve its needs and enabled them to grow their businesses globally. While RIL always believes in working with highest capability vendors, majority of its suppliers and contractors are India based.

RIL's manufacturing sites act as economic nerve centres for local communities. The Company ensures that it engages local villagers and small businesses around its plants in variety of productive employment especially through vehicle hiring, material handling, housekeeping, waste-handling and horticulture contracts. Some of these vendors have been serving the Company's manufacturing sites for the past two generations. These contracts have led to entrepreneurship development around the manufacturing sites and have created employment for the populace.

CASE STUDY- JOINT DEVELOPMENT OF APE FREE SPIN FINISH FOR PSF

RIL has been working hand-in-hand with one of its long time suppliers of speciality chemicals, Croda, for adopting sustainable products/ technologies. Spin finishes are speciality chemicals (surfactants) used during manufacture of polyester fibres. Depending on the application, the spin finish may be washed off during production or remain on the fibre to deliver some processing characteristics to the fibre. Alkyl Phenol Ethokylate (APE) based surfactants are used in the industry due to their very high performance. However studies have indicated that APEs are slow to degrade, bio-accumulate, toxic to aquatic organisms and endocrine disruptor in higher animals. In an endeavour to create spin finishes that are sustainable and environment friendly, RIL, along with Croda, worked to develop spin finishes that are APE free and also compliant with Öko-Tex Standard (independent testing and certification system for textile products).

CASE STUDY- VENDOR AND SUPPLIER ORIENTATION ON ENVIRONMENT AND SAFETY ISSUES

Regulatory and legal compliance are of top priority for the Company and violation of any sorts is unacceptable. RIL has conducted awareness programmes for vendors, suppliers, contractors about its philosophy towards health, safety and environment.

RIL ensures responsible disposal of waste generated by partnering with various agencies to encourage end-of-life recycling and reuse. The industrial waste generated at the Naroda plant is converted into useful 'bio-manure' by the vermi-composting method, thereby reducing the load of waste disposal on the environment.

The Jamnagar refinery has reduced its load on the environment by tapping and desalinating sea water instead of using fresh water resources. The waste water generated is treated and used for green belt development thereby ensuring zero effluent discharge.

Continuous focus on waste minimisation, reuse and recycle help the Company in reducing consumption of virgin material.

RIL has recycled treated waste water across its manufacturing divisions.

RIL is recycling about 60000 tons/year of polyester both industrial and consumer waste, and has plans to expand further in recycling capacity.

Polyester fabric waste recycling: Work is underway to develop a process to recover polyester component of fabrics and enzymatically hydrolyse the products of non- polyester components like cotton and viscose to glucose. As a value addition, this glucose can be consumed for production of various biochemicals while the polyester recovered can be recycled.

CASE STUDY- OPTIMISATION OF EFFLUENT TREATMENT OPERATIONS AT HAZIRA MANUFACTURING DIVISION

Primary treatment is done for individual effluent streams at the plant level as per the requirement. These streams are then segregated into Low Total Dissolved Solids (LTDS) streams and High Total Dissolved Solids (HTDS) streams and led to separate LTDS Effluent Treatment Plant (ETP) and HTDS ETP respectively. The effluent at both the LTDS and HTDS ETPs are sequentially treated in primary, secondary and tertiary treatment facilities. Treated effluents from HTDS ETP are discharged outside after ensuring that quality of the effluent meets or is better than the prescribed discharge standards. The treated effluent from LTDS ETP are further processed through reverse osmosis plant and recycled as make-up water to cooling towers. About 8000 m³/day of treated effluent (25% of total volume) is thus reused as makeup water to cooling tower, reducing requirement of freshwater for the complex.

Businesses should promote the well-being of all employees

RIL believes in its people power propelling its progressive growth. Their knowledge, experience and passion to perform are fundamental to building the organisation further. Hence at RIL, it provides employees with opportunities that encourage them to excel. RIL ensures a work environment that promotes well-being.

5. Percentage of permanent employees that members of recognised employee association
Almost 100% of non-supervisory employees at manufacturing locations are of trade unions/employee associations.

6. Number of complaints relating to child labour, forced labour, involuntary labour, sexual harassment in the last financial year and pending, as on the end of the financial year
No cases of child labour, forced labour, involuntary labour, sexual harassment and discriminatory employment were reported in the last financial year. Taking a step further, RIL has formed an Internal Complaints Committee where employees can register their complaints against sexual harassment. This is supported by the Sexual Harassment Policy which ensures a free and fair enquiry process with clear timelines.

7. Percentage of under mentioned employees that were given safety & skill up-gradation training in the last year

• Permanent Employees
• Permanent Women Employees
• Casual/Temporary/Contractual Employees
• Employees with Disabilities

It is RIL's constant endeavour to keep its employees abreast with the latest technical knowledge. During FY 2014-15, a total of 1.76 million man-hours of training was imparted by RIL to its people. 65.6% of RIL's permanent employees received safety and skill up-gradation trainings while 61% of the women employees received trainings through classroom as well as web-based training programmes. Out of 83 permanent employees with disabilities, 51.8% received safety and skill up-gradation trainings. All of RIL's contractual employees receive mandatory safety training before entering the premises and receive on the job training through the contractor and the Company.

Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalised

Stakeholders play an important role in determining RIL's growth story. Stakeholder engagement, at RIL, aims to provide transparency in communications and continual improvement. It's a dialogue that defines the RIL approach of understanding stakeholder needs, and develop action plans to fulfil them.

1. Mapping of internal and external stakeholders The stakeholders have been mapped and the key categories are as below:

RIL engages with its identified stakeholders on an ongoing basis through a constructive consultation process. There is a structured stakeholder engagement programme which entails specific engagement mechanisms for each stakeholder group. The Company follows a system of timely feedback and response through formal and informal channels of communication to ensure that the stakeholder information remains current and updated.

2. Identification of the disadvantaged, vulnerable and marginalised stakeholders
Through RIL's stakeholder engagement, the disadvantaged and marginalised stakeholders are identified.

3. Special initiatives taken by the Company to engage with the disadvantaged, vulnerable and marginalised stakeholders
RIL goes beyond its business activities to create societal impact through its diverse initiatives, and is working towards improving lives of India's most marginalised and vulnerable communities. At RIL, there are certain criteria for selecting a project. In order to determine the beneficiaries, the Company undertakes a need assessment that focuses on the scale, impact and sustainability of the project. These include rural rejuvenation projects that help empower farmers, schools for children living in remote areas, affordable healthcare for the average Indian, urban planning to build essential infrastructures etc.

A large number of RIL's livelihood support programmes are women-centric and have helped them become independent and gain a steady source of income through a range of different vocations. The Company is continuously improving the access to quality education through adopting schools in and around its manufacturing units. These educational institutions include children from the underprivileged communities whose fee are completely or partially waived. Meritorious students are assisted with scholarships to pursue higher education in colleges. Students who are physically challenged are specially assisted to pursue high education in colleges. RIL is moving ahead in every possible direction to help India move into the brave new world.

For specific details, please refer to Report on Corporate Social Responsibility.

Businesses should respect and promote human rights

RIL's culture demonstrates integrity and respect for human rights. RIL developed policies and mechanisms to ensure human rights are an entitlement to all. It is guaranteed in day-to-day operations and in the way RIL conducts its business. RIL publicly reports its progress against the ten principles by UNGC, one of them being human rights.

1. Coverage of the Company's policy on human rights to the Company and its extension to Group/Joint Ventures/Suppliers/Contractors/ NGOs/Others
RIL's code of conduct demonstrates its commitment towards the preservation of human rights across the value chain. The Company believes that a sustainable organisation rests on a foundation of ethics and respect for human rights. RIL promotes awareness of the importance of respecting human rights within its value chain and discourage instances of abuse.

2. Stakeholder complaints received in the past financial year and percentage of complaints satisfactorily resolved by the management
There were no reported complaints during FY 2014-15.

Businesses should respect, protect and make efforts to restore the environment

RIL believes in safeguarding the environment, while executing its operations. To this effect, it takes every effort towards environmental conservation. RIL ensures to do business with a minimal environmental impact that aims at rational use of natural resources and reduced waste and emissions.

1. Coverage of the policy related to Principle 6 and its extension to the Group/Joint Ventures/Suppliers/ Contractors/NGOs/others
Environmental conservation is core to RIL's business strategy. RIL, in its 'Environment Policy', has stated that protection of the environment is of prime concern. RIL is conscious of its responsibility towards creating, maintaining and ensuring a safe and clean environment for sustainable development. The policy addresses issues related to Group companies, JV partners, suppliers, contractors and customers.

RIL encourages sharing of process and product innovations within the group and extending it to benefit the industry and key members of its value chain.

2. Company's strategies/ initiatives to address global environmental issues such as climate change, global warming, etc.
One of the key strategic pillars of RIL's sustainability strategy is ensuring energy security. In its endeavour to become a key global energy player, the Company has strengthened its focus in recent years on opportunities to harness alternative energy sources.

RIL is continuously working to improve energy efficiency in its manufacturing operations, thereby reducing emission of greenhouse gases (GHG). A dedicated Clean Development Mechanism (CDM) cell identifies the opportunities, and works on climate change mitigation projects. RIL adheres to all legal requirements and norms of energy conservation and other environmental conservation standards stipulated by the Government of India and other countries where RIL has a presence. All of RIL's manufacturing sites regularly account for GHG emissions, resulting from their manufacturing operations. Energy conservation initiatives are a part of regular operations, which help reduce the Company's GHG emission as well. Data on GHG emission is annually published in its Sustainability Report.

CASE STUDY- SHORE POWER SUPPLY TO TUGS AT HAZIRA:

Reduction in fuel oil consumption of support tugs by providing shore electrical power supply at Jetty.

Benefits:

• Reduction of HSD fuel consumption by 138 KL in FY 2013-14
• Reduction in maintenance cost

Protection of the environment:

• Reduction in CO₂ emission by 360 tonnes per year
• Reduction of noise level on board vessel
• Reduction of waste in lube oil generation

3. Identification and assessment of potential environmental risks
RIL has identified and assessed potential environmental risks for FY 2014-15. RIL has systems in place that ensure continuous monitoring of potential environmental risks involved in its operations. For new and upcoming projects, potential environmental risks are identified while preparing Environment Impact Assessment (EIA) and Risk Assessment reports. Accordingly, identified potential environmental risks are addressed at the design stage and also mitigated through incorporation of robust environmental management plan. Environmental audits are carried out regularly which help in identifying potential risks and necessary corrective actions are taken to mitigate the same.

All the manufacturing divisions are certified as per the ISO-14001 environment management system and integrated with quality and safety management systems (ISO 9001 and OHSAS 18001). In addition, all these sites have also been covered under the British Safety Council UK's environment five star audit. The periodic audits conducted as part of these management systems help RIL identify potential risks at its locations.

The measures highlighted in the environmental assessments are addressed in a timely manner and monitored accordingly. Mitigation measures and environmental parameters are internalised at all stages of project design, execution, construction, operation and maintenance.

5. Company's initiatives on – clean technology, energy efficiency, renewable energy, etc.
Clean Technology

• Process for CO₂ capture from refinery flue gas: Work is underway to further reduce emissions through CO₂ capture, storage, and further utilisation for conversion to useful chemicals. The patented RIL process for development of in-house adsorbent and energy efficient CO₂ capture process follows carbonate-bicarbonate chemistry for adsorption and regeneration step with minimum operating expense as compared to conventional amine absorption process. The results of recently concluded pilot plant study provide definite indications towards the efficacy and scalability of this adsorption process for capturing CO₂ from both oil refinery and power plant. These works support RIL's commitment to ameliorating long-term environmental issues.
• Work is underway for the development of catalyst and processes for gasification of petroleum coke/ biomass at low temperature.
• Design and installation of organic stripper systems at Silvassa, which reduced emissions of organic vapours to environment and also partially substituted fuel oil or natural gas as fuel, thus reducing fossil fuel use.
• Development of sulphur and particulate matter removal systems at Barabanki Unit.
• Direct synthesis of Dimethyl carbonate from carbon dioxide recycles CO₂ into fuels that lowers GHG emissions.
• Development of advanced non phthalate polypropylene catalyst, donor & polypropylene products. Phthalates have been identified as potential endocrine disruptors and it is desirable to eliminate their use.
• Design & installation of organic stripper systems at Silvassa which reduced emissions of organic vapours to the environment and also partially substituted fuel oil or natural gas as fuel, thus reducing fossil fuel use.
• Development of a new product, RelFarmS™, which converts by-product sulfur into a high quality fertilizer. RelfarmS™ is currently in field test.

Energy Efficiency

• Use of Vapour Absorption Chiller at Silvassa, Patalganga and Hoshiarpur, using waste steam/ hot water in place of electricity to generate refrigeration for process. This also substitutes a HCFC based refrigerant (Global Warming Potential 1300) chiller with a water refrigerant chiller.
• Additives to improve efficiency in Hydrocarbon Process: Research work is underway to improve the conversion of hydrocarbons to petrochemical building blocks and thereby not only reducing the by-product formation but improving process efficiency.
• Replacement of lighting systems by LED based systems.
• Optimisation of compressed air system at Silvassa, thereby cutting down on power import from grid (600 kW reduction).

6. Reporting on the Emissions/Waste generated by the Company as per the permissible limits given by CPCB/SPCB
The emissions / waste generated by the Company is within the permissible limits given by the State or Central pollution control boards. In RIL's environmental management system, environmental compliance is an indispensable aspect. RIL's emissions/waste generated reports are regularly submitted to CPCB/ SPCB by the Company and no non-conformances have been reported. Efficient control equipment and robust procedures help us meet the applicable environmental standards continuously.

7. Number of show cause/ legal notices received from CPCB/SPCB which are pending (i.e. not resolved to satisfaction) as on the end of financial year
There are no pending or unresolved show cause/ legal notices from CPCB/SPCB in FY 2014-15.

Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner

RIL's collaboration with industrial bodies and academia demonstrates its approach towards addressing sustainability challenges. RIL aims to create an environment that encourages supportive decisions made in a responsible way. The associations formed are in consultation with the Board and contains representation from the Board in certain memberships.

1. Representation in any trade and chamber or association
RIL has its representation in several business and industrial associations such as The World Economic Forum, The American Chemistry Council (ACC), Indian Chemical Council (ICC), The Chemicals and Petroleum Manufacturers Association (CPMA), Gulf Petrochemicals & Chemicals Association (GPCA), World Business Council for Sustainable Development (WBCSD) European Petrochemicals Association (EPCA), American Fuel & Petrochemical Manufacturers (AFPM) Association of Oil and Gas Operators in India (AOGO), Federation of Indian Chambers of Commerce and Industry (FICCI), Confederation of Indian Industry (CII), Associated Chambers of Commerce and Industry of India (ASSOCHAM) and Association Of Synthetic Fibre Industry (ASFI).

2. Advocating/lobbying through above associations for the advancement or improvement of public good
RIL as a responsible producer of petrochemicals is collaborating with ICPE (Indian Centre for Plastic in the Environment) on a voluntary basis and provides technical and financial support to help develop newer technologies for plastics waste management, establishment of pilot projects for plastics waste management in cooperation with municipal authorities and civil society.

Businesses should support inclusive growth and equitable development

RIL believes in creating opportunities for the people around its operations to enable a sustainable future and ensure inclusive growth. Its community development activities focus on areas that foster development and well-being of communities. RIL's CSR initiatives are aligned to aspects, such as rural transformation, healthcare, education, environment, protection of national heritage, art and culture, and disaster response.

1. Specified programmes/initiatives/projects by the Company in pursuit of the policy related to Principle 8
RIL's CSR policy demonstrates its efforts towards social and economic development. RIL's community development initiative focuses on rural transformation, healthcare, education, environment, protection of national heritage, art and culture, and disaster response.

Following are some of the initiatives RIL undertook during FY 2014-15:

1. Ensuring well-being of local communities

2. Building capabilities for employment generation

3. Empowering women

4. Creating access to healthcare

5. Conserving environment

6. Promoting education

2. Modes through which programmes/projects undertaken (through in-house team/own foundation/external NGO/government structures/ any other organisation)

Corporate Social Responsibility Philosophy: RIL's business priorities co-exist with social commitments and its activities support inclusive growth.

RIL seeks to strategically consolidate the Company's CSR initiatives to focus on discrete social problems, all aimed at enabling lives, living and livelihoods. In order to streamline its social initiatives, the Company has identified six focus areas that aim to positively and holistically impact society. The six focus areas identified by RIL are as follows:

• Rural transformation
• Healthcare
• Education
• Environment
• Protection of national heritage, arts and culture
• Disaster Response

For specific details please refer to the Report on Corporate Social Responsibility.

3. Impact assessments for initiatives
Impact assessments for the CSR initiatives across RIL, help gauge the impact made on the lives of beneficiaries and also facilitates the decision making process. Before embarking on a project, a primary or secondary baseline study is undertaken to establish the situation prior to the intervention. Measurement of the impact and achievements of programmes are done through sample surveys and studies. These are carried out at different points of time in the intervention life cycle to systematically measure and capture the change. These studies are mostly external in nature to ensure the objectivity and credibility of the findings.

Studies have been conducted to assess the impact of health initiatives across RIL manufacturing locations and rural transformation initiatives which focus on agriculture.

After initiation of the CSR activities, RIL has constituted mechanisms to collect relevant information about the beneficiaries so that the progress and changes could be measured over a period of time. RIL continuously seeks feedback to understand the impact of its initiatives which also includes visits by its CSR teams on a periodic basis. In addition, feedback is also sought from the village heads/Sarpanch to get an understanding of the impacts of the initiatives and opportunities for improvement.

4. Company's direct contribution to community development projects
During FY 2014-15, RIL spent ` 760.58 crore on community development initiatives. Community development expenditure incurred by RIL is on rural transformation, healthcare, education, environment, protection of national heritage, art and culture, and disaster response.

5. Steps undertaken to ensure that community development initiatives are successfully adopted by the community
RIL follows a participatory approach in the areas of intervention and encourages participation from communities for planning and implementation purposes. There is continuous engagement with communities for needs assessment. This engagement also supports the decision making process after taking the local context into consideration and brings about a sense of ownership among them. Their capacities are built through multiple training programmes, so they are self-sufficient and capable of managing the programme even in the absence of a third party.

To ascertain the medical care needs, multiple interactions are held with communities through village meetings, meetings with local administration and officials from the health department on the basis of which infrastructure is established. Through continuous feedback from the beneficiaries, more facilities and specialised services have been added in locations where there was a demand for them.