TISS

Corporate Governance Assignment1

L&T Corporate Sustainability Report 2009-10

Charles T. Ekka 2009 HR 009

3/8/2011
 GRI GRI Guidelines Coverage
Indicator Present Vague Absent
Environmental Indicators
EN11 Location and The report vaguely
size of land mentions about all it sites
owned, leased, but has mentioned here and
managed in, or there about possible
adjacent to, locations where they have
protected areas put up new energy
and areas of conservation set ups. There
high bio- is no attempt to analyze the
diversity value land owned w.r.t. the
outside impact towards
protected areas biodiversity/protected
areas. Report also mentions
couple of initiatives for
improving biodiversity of
some of the areas but never
tries to clearly mention the
size of the land owned or
even the characteristic of
the land in terms of
biodiversity.
EN12 Description of No The report never tries to
significant capture or critically look at
impacts of the impacts caused by the
activities, organization’s
products, and products/services/operation
services on s to the biodiversity of the
biodiversity in land areas owned or areas
protected areas near to them. It does cite
and areas of examples of the initiatives
high that L&T has taken to
biodiversity improve biodiversity in the
value outside project sites but never
protected areas identifies the impact due to
its own operations in such
areas.
EN13 Habitats Yes Although the report does
protected or mention about initiatives
restored such as to protect the
environment and initiative
to plant 50000 saplings in
 and around Chennai and
that their 35 % of available
land is covered by trees and
plantations but it does not
report any measures for the
areas under such activities.
However, overall the
reporting for this indicator
is vague without any clear
figures being
published/projected that
clarify the organization’s
standpoint towards
biodiversity.
EN14 Strategies, No It seems from the report, does not
current actions, look at the biodiversity concern as a
and future plans major one and does not show any long
for managing term intent to measure, plan, and
impacts on implement biodiversity
biodiversity. maintenance/enhancement initiatives.
Even though report does mention
couple of activities undertaken but
remains silent about any regulations,
tools for impact analysis, specific
goals, monitoring process, etc.
EN15 Number of No Report is absolutely silent on this
IUCN Red List indicator. It does not specify any of
species and the endangered species (animal or
national plant) whose habitats are impacted by
conservation list the company’s operations.
species with
habitats in areas
affected by
operations, by
level of
extinction risk
EN16 Total direct and Yes 16.1 is missing in terms of detail,
indirect green- 16.2 – Classifies direct though the report says it tracks down
house gas emission the emission, but the methodology is
emissions by 16.3 – mentions indirect not mentioned.
weight emission
16.4 – reports total emission
EN17 Other relevant Yes the report does mention Although 17.2 is missing that the
indirect green- about the indirect emissions reasons for indirect emissions.
house gas and is quantified and identified company might be responsible for.
 emissions by in tones. The report does not even contain of a
weight. promise of including such forward
calculations for future.
EN18 Initiatives to No Not reported
reduce
greenhouse gas
emissions and
reductions
achieved
EN19 Emissions of Vaguely mentions about the
ozone-depleting ozone emission, just
substances by mentions the 19.4 point that
weight.
is ODS in tones of CFC-11
equivalent.
EN20 NOx, SOx, and Just mentions the emission
other significant in tones/year. Rest the air
air emissions by calculation, methodology to
type and weight calculate and weights are
missing.
EN21 Total water Yes Only point 21.3 is missing that is to
discharge by report water quality in terms of total
quality and volume.
destination
EN22 Total weight of Yes Only 22.3 point is missing i.e. to
waste by type report the total amount of waste in
and disposal tones by type.
Method
EN23 Total number Vaguely mentions that they
and volume of take care of spills in an
significant spills efficient manner but no
methodology is neither
given nor any specific spill,
vaguely written about the
presence of chemical spill
and battery and pc spills.
EN24 Weight of No Report is absolutely silent on this
transported, aspect.
imported, In fact the report highlights in blue
exported, or paragraph “We do not import or
treated waste export any hazardous waste covered
deemed under the Basel Convention”
hazardous under
the
terms of the
Basel
Convention
Annex I, II, III,
and VIII, and
 percentage of
transported
waste
shipped
internationally
EN25 Identity, size, No Report remains silent on this part.
protected status,
and
biodiversity
value of water
bodies and
related
habitats
significantly
affected by the
reporting
organization’s
discharges of
water and runoff
EN26 Initiatives to No Report does not talk about the impact
mitigate of the company’s products.
environmental
impacts
Of products and
services, and
extent of impact
mitigation.
EN27 Percentage of No The report does not highlight any
products sold policy of reclaiming the packaging of
and their the products.
packaging
materials that
are reclaimed by
category.
EN28 Monetary value Yes
of significant Comment: Report does
fines and total mention in a statement that it
number of non- was not fined for any non-
monetary compliance issues. GRI
sanctions for guidelines clarify that in such
noncompliance cases only a statement is
with sufficient
environmental
laws and
regulations.
EN29 Significant No Report is silent on this indicator as
environmental well.
impacts of
transporting
products and
 other goods
and materials
used for the
organization’s
operations, and
transporting
members of the
Workforce.
EN30 Total No Absent from the report.
environmental
protection
expenditures
and investments
by type
Policy: The report seems ok but needs significant improvement. We can see the initiatives of maintaining garden and lawns, so it is
quite important to mention straight facts in the Report. Following focus areas can be listed:

• For both direct and indirect energy sources L&T needs to focus on minimizing the use of non-renewable energy sources and
substitute them with renewable sources as much as possible.

• Thus L&T must track the amount of water it is consuming, how much water its consuming from what source (especially for
ground water as the water table is getting depleted), is water being recycled etc.

• Include land materials in the list of identified key resource along with energy and water. Formulate strategic plans to
maintain biodiversity within and around the areas of company operations.
• L&T should be forward looking and include the advance levels of consumption in its products’ value chain in the
environmental impact analysis.
• Special environmental accounting measures should be adopted
Society

SO1 Nature, scope, Vaguely mentioned about

and effectiveness the process but nature of
of any programs each and every program is
and practices that mentioned properly. The
assess and impact of each program is
manage the well reported. No where
impacts of mentioned about their data
operations on source to figure out the
communities, need for development.
including Rests of the aspects are
entering, missing according to GRI
operating, and guidelines.
exiting
SO2 Percentage and No This indicator is totally missing
total number of though in the report they have
business units mentioned about guidelines for
analyzed for financial transactions and non
risks related to financial documents, but nowhere
corruption reported about analyzing any business
units and any such formal procedures.

SO3 Percentage of No Completely missing.

employees
trained in
organization’s
anti-corruption
policies and
procedures

SO4 Actions taken in No The company proclaims no such

response to corruption behavior was found.
incidents of
corruption

SO5 Public policy Report does mention the Though guidelines 5.3 is missing
positions and association with several related to issues discussed and
participation in association and institutes like differences discussed between the
public policy CIDC, ASME, HTFS, IIChE, policies and lobbying positions.
development and CII, FICCI & others.
lobbying

SO6 Total value of No Not mentioned at all.

financial and in-
kind
contributions to
political parties,
politicians, and
related
institutions by
country

SO7 Total number of No The report mentions that the

legal actions for employees follow the code of conduct
anti-competitive and anti competitive behavior
behavior, anti- guidelines and follow the whistle
trust, and blowing policy. The report also
monopoly mentions that no such case was
 practices and identified hence not reported.
their outcomes

SO8 Monetary value Yes The report does mention

of significant that L&T has not been
fines and total subjected to any fines due
number of non- to non – compliance to
monetary laws.
sanctions for
non-compliance
with laws and
regulations

Policy: L&T needs to revisit the GRI guidelines so that they can understand what they have to report in societal performance. None
of the indicators have been well reported.

• Reach proper source so as to identify the development need for the society

• Have proper channels or process to detect corruption and anti-competitive behaviors.

• Train the employees to formulate anti corruption and competitive behavior policies

• Alignment with international forums for positively influencing public policy related to certain specifically identifies areas.

• Increasing transparency at all levels by positively reporting the achievements and areas of improvements in the report