Position Statement

Anti-Bribery and Anti-Corruption

Code of Conduct - Sadee World Limited

This position is in alignment with the Code of Conduct of Sadee World Limited.

At Sadee World, we are committed to maintaining the highest ethical standards while undertaking fair business operations, following the best practices of corporate governance, upholding the Company’s reputation, and implementing and enforcing effective systems to detect, counter, and prevent bribery and corruption.

Our Position on Bribery and Corruption

• We uphold a zero-tolerance position towards bribery and corruption.
• We have zero tolerance towards giving or offering to give, directly or through a third party, undue incentive to a public servant or any business partner intending to obtain or retain business or an undue advantage in the course of our business.
• We prohibit bribery and corruption in all our business dealings and in all forms like cash, gifts, entertainment, hospitality, kickbacks, etc.
• We maintain complete books of accounts and records that accurately and fairly reflect the transactions of the Company.

We encourage our stakeholders to report suspected events of bribery and corruption by blowing the whistle under the Sadee World Whistle Blower Policy available at.

We are committed to continuously reviewing and updating our policies and procedures. Therefore, this statement is subject to modification. This position statement shall be reviewed once every three (3) years.

Code of Conduct - Human Rights Policy

This position is in alignment with the Code of Conduct of Sadee World Limited.

At Sadee World, we strive to respect and promote human rights by upholding the Universal Declaration on Human Rights of the United Nations in our relationships with our employees, suppliers, and business partners. We expect our employees, business partners, and suppliers to avoid causing or contributing to human rights infringements through their business actions, including encouraging or permitting child labour. We respect the employees’ right to privacy within the ambit of law. We are not concerned with employee conduct outside the work environment unless such conduct impairs work performance or creates a conflict of interest or adversely affects the Company’s reputation or business interests.

Specific Requirements Relating to Human Rights

• Providing our employees with safe and humane working conditions, and maintaining compliance with all applicable laws, rules, and regulations, including but not limited to fair compensation, hours worked, equity, safety, etc.
• Respecting employees’ right to freedom of association and recognition of employees’ right to collective bargaining, where allowed by law.
• Prohibiting forced labour/employing people involuntarily under threat of penalty, including forced overtime, human trafficking, debt bondage, forced prison labour, slavery, or servitude.
• Prohibiting child labour.
• Ensuring no discrimination on the grounds including, but not limited to age, disability, gender, sexual orientation, political or other opinion, ethnic or social origin, or religion.
• Zero tolerance towards sexual harassment or harassment in any form across our operations and our value chain.
• Respecting the right to privacy within the ambit of law.

We follow the laws and regulations pertaining to human rights and conduct regular training sessions to instil the key principles of our Code of Conduct, including topics of human rights for creating awareness.

We encourage our stakeholders to report suspected human rights violations by blowing the whistle under the Sadee World Whistle Blower Policy.

We shall undertake due diligence on Human Rights on a regular interval to identify, prevent and mitigate adverse human rights issues.

We are committed to continuously reviewing and updating our codes, policies, and procedures. Therefore, this statement is subject to modification. This position statement shall be reviewed once every three (3) years.

Sadee World Tax Compliance Statement

Sadee World believes in complying with laws in letter and spirit.

Sadee World recognises payment of tax as an integral element of its corporate responsibility and is committed to being tax compliant. Our responsible tax strategy (both direct and indirect taxes) consists of ensuring compliance with applicable tax laws in India and the countries that it operates in, thereby avoiding tax risks.

We are committed to complying with statutory tax obligations and compliances in all the jurisdictions in which we operate in a responsible manner. This includes:

• Paying correct and appropriate taxes and levies in each of the jurisdiction where point of taxation is triggered and where it operates in accordance with the prevailing tax regulations.
• Filing accurate, timely tax returns as well as settling tax obligations as required.
• Disclosure of required details to the tax authorities.
• Complying with all applicable taxation rules and regulations.
• Taking decisions on tax matters by relying upon reasonable interpretation of the tax provisions, regulations, and rules of the country in which the Company operates.
• Filing of country-by-country reporting within timeline and support the OECD’s (Organization for Economic Cooperation and Development) work on Base Erosion and Profit Shifting (‘BEPS’).

The Tax compliance is monitored by the Taxation function within the overall control and governance framework of the Company. We are committed to continuously reviewing and updating our policies and procedures. Therefore, this statement is subject to modification. This position statement shall be reviewed once in three (3) years.

Reducing GHG emissions is not only a business imperative for us at Sadee World, but also forms a vital part of our environmental stewardship. Aligning our emissions management strategy with the global goals of minimizing carbon footprint and mitigating climate change risks, we have streamlined our processes to move closer to this common goal.

Over the last 10 years, we have been working on reducing our Scope 1 and Scope 2 emissions primarily through our initiatives around renewable energy and energy efficiency. We have been able to reduce our absolute Scope 1 emissions by 43% and absolute Scope 2 emissions by 47% by 2022-23 from the baseline year of 2013-14, translating into a 74% reduction in Scope 1 and Scope 2 emissions intensity. The 62.2% of renewable electricity share in 2022-23 is the testimony of the journey we have travelled so far. We have also been working on reducing our carbon footprint in the value chain through multiple initiatives under product stewardship, sustainable packaging, and greening of our logistics.

We are committed to continuing our efforts in reducing scope 1 and scope 2 emissions and aim to reduce the emissions intensity by 75% by 2025 and 80% by 2030. In this regard, we shall pursue the following measures that would steer us towards achieving this goal:

Our Key Measures to Reduce Emissions

• Continue to increase the share of renewable energy in our operations. We have set a target to achieve 75% renewable electricity share by 2025 and aspire to achieve 100% by 2030.
• Our efforts in energy efficiency have resulted in a gradual decline in our total electricity consumption over the years. We aim to reduce our specific electricity consumption (KWh/Kl) by 48% and 53% by 2025 and 2030 against the baseline year of 2013-14.
• Switch to greener fuels in our operations.

During the year 2022-23, we inventoried our Scope 3 emissions. The results of our emission inventory indicate that Scope 3 emissions contribute to almost 97% of our overall emissions.

While we continue to take measures to reduce our Scope 1 and 2 emissions to meet our 2025 and 2030 targets, we believe that it is vital to address the Scope 3 emissions in order to transition to low carbon. We aim to achieve this through the following key focus areas:

Focus Areas for Scope 3 Emissions

• Sustainable Optimization of Products and Services: We have been working on formulation optimization and efficiency to reduce the overall carbon footprint of the products. This essentially means reducing emission intensive raw materials through formulation and process innovations.
• Lesser Carbon-Intensive Raw Material Alternatives: We continuously evaluate alternatives for existing raw materials such as alternate grades, alternate chemistries as well as increased renewable/bio-based content, suppliers with efficient operations. We target to significantly increase renewable/bio-based raw materials by 20% and 30% by 2025 and 2030 respectively. Similarly, we strive to increase the recycled content in our plastic packaging to 30% by 2025 and 60% by 2030.
• Sustainably Advantaged Products: Our Sustainably Advantaged Products are products which are more sustainable than the current norm for the industry and bring tangible sustainability benefits to our customers. These include products which provide resource efficiency benefits in the use-phase by reducing surface temperature, offering longer-lasting performance, providing health and well-being benefits, etc.
• Engagement with Suppliers to Reduce Emissions: Our Code of Conduct for Business Partners (the Code) acts as the foundation for driving the ESG agenda in our value chain. Through our recently developed sustainable supply chain framework, we plan to sensitize, assess and engage with our suppliers on ESG issues including climate change.
• Transportation and Distribution: We focus on reducing our logistics footprint through greener modes of transport, upsizing trucks employed for transporting materials, and adopting multimodal transportation focusing on rail and sea dispatches. We collaborate with leading industries for load pooling and reverse logistics synergies.

Structured interventions focusing on Category 1 and Category 4 Scope 3 GHG emissions, while making continuous improvements in our Scope 1 and Scope 2 emissions, will enable us to systematically decarbonize our value chain, and contribute to climate change mitigation.

Biodiversity Conservation Commitment

Recognizing our interdependencies with the local biodiversity, we are committed to biodiversity conservation which is also underpinned by our Environment Policy. We are aligned with the United Nations Sustainable Development Goals (SDGs) of promoting, preserving, and protecting our biological ecosystems.

Our manufacturing plants are in notified industrial areas and not in proximity to any protected areas for biodiversity conservation. Hence, our own operation has a minimal impact on biodiversity. However, we have undertaken several biodiversity initiatives at our facilities:

Enhancing Biodiversity in and around our manufacturing plants:

• EIA Study: The impact of our operations on biodiversity is assessed as part of an Environmental Impact Assessment (EIA) study, mandated by statutory requirements at the project planning stage.
• Biodiversity and Ecology Studies: Our factories undergo biodiversity and ecology studies and undertake biodiversity interventions through a Natural Capital Action Plan (NCAP).
• Biodiversity Interventions: Based on the site-specific NCAP, we work towards protecting and enhancing natural ecosystems by preserving or restoring habitats and supporting local biodiversity conservation initiatives.
• Measures: Growing native plant species, creating dense plantations, protecting wildlife, enriching habitats, and providing community awareness programs.

No - Deforestation:

• Eco-friendly Operations: We operate from sites in notified industrial areas, avoiding forest impact and ecologically sensitive areas.
• Afforestation: We take up afforestation activity outside the facility in collaboration with communities and comply with green belt development within our facilities.

Biodiversity in our value chain:

• Upstream – Suppliers: We are committed to sourcing raw materials sustainably, evaluating suppliers based on environmental and social criteria.
• Downstream – Product Stewardship: We focus on reducing carbon footprint, waste, and indirect biodiversity impacts, ensuring sustainable products.
• Packaging: Ensuring safe disposal and using recycled plastic in packaging through the Extended Producer Responsibility (EPR) approach since 2018.

Other Ecosystem Services:

• Water Ecosystem: Collaboration with communities to improve water availability through rainwater harvesting and integrated watershed development.
• Waste Management: Following the ‘3R’ strategy of Circular Economy: Reduce, Reuse, and Recycle, ensuring compliance with government regulations for waste disposal.
• Zero Liquid Discharge: All manufacturing plants are Zero Liquid Discharge facilities.

We recognize that our success is intertwined with the health and well-being of ecosystems, and we are dedicated to making a positive difference. Further details on our Biodiversity initiatives, as well as environmental performance, can be read in our Integrated Annual Report and ESG Report.

Sadee World Sustainability Program