Natural Capital

Natural Capital is at the core of our sustainable value creation. Our business existence depends on the availability of natural resources and the ecosystem services provided by biodiversity. Also, climate change poses several physical and transitional risks which can disrupt our supply chain. Moreover, the intertwining of the packaging and FMCG sector has led to an increase in plastic waste in circulation. We are cognizant of the fact that our operational continuity relies on management of these material issues and are continuously working towards reducing the negative effects of the same.

Dabur’s vision for the environment is to have no negative impact of operations on the planet. Our strategic priorities include being carbon neutral by 2040 and to become water positive by 2030. To achieve this, we have already started our sustainability journey towards a greener future, which primary focuses on energy use optimization and emission reduction initiatives, incorporating circular economy concepts into plastic waste management, efficient material use, responsible sourcing of raw materials, biodiversity management, water stewardship and finding positive synergies among these material topics.

Key Focus Area Material Topics Sustainable Development Goal (SDG) Linkage
Climate Change Strategy GHG emissions Water Management Waste Management Energy Management Raw material sourcing Biodiversity
GHG emissions GHG emissions
Water Management Water Management
Waste Management Waste Management
Energy Management Energy Management
Biodiversity Raw material sourcing Biodiversity

Energy efficiency and Emission reduction are prominent drivers of ESG strategy and building Climate Change resilience. We deploy tech-based innovation and operational excellence to achieve both product and process sustainability. This is done by increasing fuel efficiency in our production facilities and supply chain units, optimizing electricity consumption at offices and warehouses, switching to renewable and alternative clean energy sources, maintaining air emissions lower than regulatory requirements and managing indirect energy use.

In fiscal 2021-22, various initiatives were taken by Dabur and its employees to reduce indirect energy consumption through optimization of operations involving increasing the operational efficiency of various industrial equipment such as cooling tower fan, cooling water pump, valves, heaters, etc., We are either installing new equipment or retrofitting the older ones to make them more energy efficient. The installation of 357 KWp solar power plant will lead to avoidance of Scope 2 emissions. In Baddi Cluster, we are generating electricity through biogas generated through ETP Plant bio digester. The toilets in its manufacturing units are designed for maximum utilization of natural light and provided with a sensor-triggered automated lighting system. All employees are also motivated to ‘Switch-Off the Lights When not in Use’. This has not only helped reduce energy consumption but has also resulted in waste minimization at source. The Capex on these investments has been ₹3.72 Crores. This has led to annual cost saving of ₹2.26 Crores with overall energy savings of 3.47 lakh kWh.

As an FMCG organization, we are cognizant of our operational water economics and have undertaken responsible water management practices. In a bid to become a water positive organization by 2030, we are committed to implement the 3R (Reduce, Reuse and Recycle) principle for conservation of water. Our initiatives are directed towards conservation and optimal use of water as well as its after use treatment, discharging and recycling. For this, we have equipped our units with systems and processes which reduce water consumption during manufacturing. As part of its efforts to continuously reduce usage of raw water, we have conducted water audits through CII & FICCI. Digital Water Flow meters have also been installed across all units, besides Piezometers to check the water level. This is augmented with several rainwater harvesting structures to meet the production water demands and recharge the aquifers and underwater table.

Along with water conservation, we also inculcate water treatment, recycling and reuse practices. Our effluent treatment systems comprise a reverse osmosis process to increase the water quality to make it ready for recycling. The effluents levels are maintained well under the prescribed regulatory requirements. The recycled water is then used for various unit level operations. We have devised a medium-term Zero Discharge strategy with the target of having one Zero Liquid Discharge manufacturing facility by 2026. The long-term target is transforming all plants to Zero Liquid Discharge facilities by 2030.

In fiscal 2021-22, we have installed three-stage RO systems in place of DM plants to minimize water wastage and to ensure maximum recovery from raw water. We have also inducted a stream condensate water recovery system put in place, which has helped in achieving 80-85% recovery in terms of recycled water. Flowmeters have been installed for accurate water accounting. Other initiatives such as use of overfilling protection systems and establishing UF and RO plant to recycle ETP treated water in process has led to efficient use of water in our manufacturing units.

Our business dependency on raw materials derived from nature inherently creates a need for responsible sourcing of these materials. This is undertaken by creating sustainable agri-value chains and partnering with the suppliers to strictly adhere to our Code of Conduct, which is the foundation of our supply chain monitoring, traceability and transparency.

We have established several exclusion criteria to promote responsible sourcing. For example, we only source palm oil from members of the Roundtable on Sustainable Palm Oil (RSPO), which makes our palm oil sourcing 100% sustainable. Also, our packaging requirements are fulfilled by purchasing laminates from Tetrapak. These packets are manufactured from Forest Stewardship Certified (FSC) paper. Moreover, we engage with the suppliers who are a part of Rainforest Alliance for our other paper and pulp requirements. For honey, we work with the farmers to promote apiculture where training is provided to the farmers related to sustainable beekeeping practices.

We, at Dabur, do not perform any business activity which has an irreversible or negative impact on biodiversity. Also, we do not have any operational sites near high biodiversity value area or protected area. We have been proactively working to preserve ecosystems and halting the accelerated loss of biodiversity through various programmes around herb cultivation. These also help protect rare medicinal herbs from extinction. We partner with farmers, tribals and forest-based communities to establish sustainable cultivation practices and provide opportunities for their socio-economic development. We have also engaged with several local NGOs across the country, who are indirectly restoring the loss of biodiversity, such as, Human India and AAGAS in Uttarakhand, Baitarani Initiative in Odisha and Umiya Majoor Kamdar Sahakari Mandli in Gujarat.

We have rolled out several initiatives to save paper,which in turn leads to saving the trees from cutting.We have provided various training and awareness programmes to minimize the use of printing the paper and to use both sides of the paper to print if the need arises. Also, we are also digitizing the way we operate on a daily basis to reduce paper consumption. Moreover, we have established a system of QR codes for goods invoices. These initiatives have led to operational cost savings of ₹20 lakhs. In terms of packaging, we executed 22 projects last year across all verticals with respect to product packaging design changes, weight reduction and transition to sustainable packaging materials. Along with paper, we also track the consumption of Plastics (Rigid), Laminates and Glass used for packaging purposes. Due to these innovative projects, the cumulative potential reduction in the consumption of the mentioned packaging materials has been 1472.75 MT.

We at Dabur focus on both process and product sustainability. Hence, we not only strive to make our manufacturing process lean and green, but also our products. In alignment to this, we adopted Life Cycle Assessment (LCA) and undertook an internal cradleto-grave study to assess the environmental impacts of 3 of our products, i.e., Chyawanprash, Honey and Real. The outcomes and recommendations of the exercise were incorporated throughout the product lifecycle to improve product performance, cost savings and reduce the environmental footprint of these products. We are planning to extend the assessment to other products in our portfolio.

Due to our sector of operation, packaging forms the core part of our business. Hence, plastic waste management is a crucial element of our sustainability practices. We perpetually strive to incorporate the principles of a circular economy as part of our waste reduction strategy. We have partnered with several Governmental and Non-Governmental organizations to develop integrated systems, processes and controls to manage both hazardous and non-hazardous waste and comply with the national and state level waste regulations.

In terms of Extended Producer’s Responsibility, we have taken a leadership position due to our efforts in plastic waste management. Dabur is the only FMCG company in the country to become a “100% Plastic Neutral” Organization. This means that we collect,process and recycle the same amount of plastic waste that we sell in its product packaging in a year, thereby complying with the Plastic Waste Management Rules, 2016. We have collected, processed and recycled around 27,000 MT of post-consumer plastic waste from all over India in the fiscal 2021-22.

Our waste collection partners pick up all types of plastic waste, from PET and HDPE bottles, PP caps and labels to multi-layered plastics and beverage cartons, thereby diverting them from reaching oceans and landfills. Dabur had set itself the target of collecting, processing and recycling over 22,000MT of post-consumer plastic waste from across India in the year 2021-22. We surpassed that target three months ahead of schedule and enhanced our full-year target to 26,956 MT. Under this initiative, Dabur has till date collected a total of over 54,000 MT of plastic waste (Recyclable and Non-Recyclable) direct from the endusers with the help of around local rag pickers in 150 cities across India.

Mega Clean-up Drives:

As a part of 75th Azadi Ka Amrit Mahotsav, a month-long Clean India Campaign has been organized by Ministry of Youth Affairs and Sports and launched simultaneously at 75+ locations across Central District. A mass awareness programme was also conducted on plastic waste. NYK Youth Clubs, NGOs, SHGs and RWAs, along with the administrative setup, IPCA and Dabur supported and organised this clean-up drive.

Dabur also joined hands with Sewa foundation for conducting awareness drives in schools and colleges in Maharashtra to bring about behavioural change by organising waste management workshops and educating students about segregation at source. The drive was organized in 30 schools and 40 colleges across Maharashtra. Sewa Foundation also organized a Upcycle Bazar for creating awareness on products created by recycling plastic.

Similar Plastic waste management awareness drive was also organised in Madhya Pradesh in association with Sarthak Welfare association.

My 10 Kg Plastic:

Dabur has joined hands with Indian Pollution Control Association (IPCA) to spread awareness in the community about waste segregation at source. A special programme, christened My 10 Kg Plastic, was launched to invite individual households to collect and send 10 Kg of plastic waste generated in their homes to become Plastic Waste Neutral Citizens. As per CPCD, the per capita waste generation in India today stands at 10 kg and through this programme, we are urging citizens to collect 10 kg waste and send it for recycling through our collection agents and become Plastic Waste Neutral Citizens.

Dabur has joined hands with Indian Pollution Control Association (IPCA) to spread awareness in the community about waste segregation at source. A special programme, christened My 10 Kg Plastic, was launched to invite individual households to collect and send 10 Kg of plastic waste generated in their homes to become Plastic Waste Neutral Citizens. As per CPCD, the per capita waste generation in India today stands at 10 kg and through this programme, we are urging citizens to collect 10 kg waste and send it for recycling through our collection agents and become Plastic Waste Neutral Citizens.

Behavioural Change:

Dabur has also been organising door-to-door awareness programmes for citizens in collaboration with various stakeholders like WeCare, AARC, Urban Local Bodies, Civil Society and the informal sector of waste collectors. The initiatives focus on educating citizens on segregating waste at source into dry and wet streams and ensuring that value is derived from these resources and, in the process, support sustainable livelihood for waste collectors and ragpickers. Our initiatives have helped us reach out to more than 4.5 million households, till date.

Clean India Programme:

The District Administration and Nehru Yuva Kendra of Jalgaon District in Maharashtra organized a “Clean India Program” in October 2021,aligned with ‘Azadi ka Amrut Mahotsav’ and ‘Swachh Bharat Abhiyan’. A cleanliness drive was organised across the city as part of this initiative, which was supported by Social Lab, an empanelled Waste Management Agency of Dabur India Ltd.

Campaign against Throwing Plastic Waste:

The Tamil Nadu government announced the launch of a people’s campaign against ‘throw away plastics’ in December 2021.TNPCB set up an information centre to spread information on plastic waste management and the role of EPR in effective plastic waste management. Dabur supported the event along waste management agency Paperman.

download-pdfAnnual Report 2021-22