SSG – Sustainability Report 2009-10© Copyright of SSG

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Sree Santhosh Ga r ments

Corpor a t e Sus t ain a bil i ty R e port 20 0 9- 1 0

Sewing Prosperity

F i rst Sus t a i n a b i l i ty R e port

SSG – Sustainability Report 2009-10© Copyright of SSG

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IndexPage no.

Chairman’s Foreword 3 to 4

Our Vision and Mission Statement 5

Report Scope 6 to 7

Company Profile 8 to 12

ED’s views on sustainability and its context to the company 13 to 15

Key Highlights 16 to 18

Corporate Governance 19 to 21

Management Systems and Certifications 22 to 24

Stakeholder Engagement 25

Key Performance Indicators

- Disclosure of Management Approach 26

- Economic KPI’s 27 to 28

- Disclosure of Management Approach 29

- Environment KPI’s 30 to 33

- Disclosure of Management Approach 34

- Social, Labour and HR KPI’s 35 to 41

Glossary of terms 42

Annexure:Annex I- Business Code of Conduct 43 to 45Annex II- List of Certificates 46 to 47

SSG – Sustainability Report 2009-10© Copyright of SSG

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GRI Content Index 48 to 51

Chairman’s foreword

“The future depends on what we do in the present”- Mahatma Gandhi

We started our business two decades ago in a humble way. Today, we have achieved

substantial growth in terms of products, profit, market coverage and work force. Our

sustainable growth can be greatly attributed to our values, ethics and principles.

Adapting to the new changes in technology, understanding the market needs

and no compromise on the quality of our products have been the pillars of growth for

our organization. We are aware of our actions and understand its impacts on the

various aspects of society and importantly, environment. We have slowly evolved to

implement measures to reduce the environmental problems, forced labour and child

labour issues which are the dioramas which spring out when people speak about

Tirupur District and the textile industry in particular.

Being a good corporate social citizen we understand the importance of a balance

between profits, environment and community. We believe the balance between triple

bottom line performances is the key for the sustenance of our business on the long

term. We respect the community in which we operate and have great concern

towards the environment and see sustainable development as an essential business

practice. Our compliance to various international voluntary standards like SA 8000,

ISO 9001, Fair Trade, Organic Exchange, Global Organic Textile Standards and

few more stand as testimony to our commitment towards sustainable development.

Notwithstanding the above, we do realize that there are certain areas to be

improved, water management is one among them. Rain water harvesting, monitoring

water consumption and water usage patterns, minimizing the purchase of water are

some of the identified areas for further improvement.

The Financial Year1 (FY) 2009-10 (April 1st, 2009 to March 31st, 2010) has been a

mixed bag for our company. The global economic recession, fluctuations in the global

market, power shortage and increase in raw material costs had considerable effect on

our company, but we have weathered these conditions and have produced

encouraging numbers and results. Market dynamics and our conviction to have

diversified products have led to products which can be differentiated as organic and

non-organic products. The total production of garments in the reporting period was

576.48 tonnes which constituted of 19% of organic and 81% non-organic products. During the

1 Indian Financial Year

reporting period our net exports increased by 30% and in the next FY 2010-11 we

are planning to achieve 50 to 60% increase in our net exports. Our commitment

towards a better tomorrow has resulted in us investing in wind farms. As on date, we

have a total of 24 Wind Energy Generators (WEGs) installed with a total capacity of

11.175 MW.

We are glad to present Sree Santhosh Garments’ first sustainability report “Sewi n g

Prospe r it y ”. The report provides a broader insight into the way we conduct our

business and the principles with which we operate. The report illustrates our

company’s journey so far, our views on various issues related to sustainability,

challenges we face and our triple bottom line performance. We look forward to

hearing your comments and suggestions regarding our first sustainability report.

Thank you,

Mr. Chandra

Mohan. C

Chairman

Our Vision and Mission

Vision and Mission statement of Sree Santhosh Group Companies is as follows:

Our vision:

¾ To be known and recognized as a progressive and dynamic textile unit,

ever ready to meet the evolving need of customers and society.

¾ To be number one trusted supplies and service provider with an uncompromising

attitude towards global quality standards.

Our m ission:

¾ To produce and supply world class products, to provide the best of the best in

customer service and offer true value for money in the industry to ensure that

our yarn is rated as the best in terms of efficiency, in hosiery performance and

fabric appearance.

¾ In order to achieve the above objectives, the company is committed to adhere to the

following principles and practices.

¾ Always one step ahead in implementing and adopting technologies.

¾ Meeting the demanding needs of customers and exceeding their expectations.

¾ Ensuring total customer satisfaction by delivering goods and services with

consistent quality and cost effectiveness.

¾ Enabling satisfactory go through profitable growth.

¾ Building and nurturing a healthy relationship with everyone associated

with the company.

Report Scope and Profile:

The report is primarily focused on our entire supply chain (upstream only). We have

covered and collated the information for reporting for the following business entities:

1) Sree Santhosh Garments (SSG);

2) Shri Santhosh Meenakshi Textiles Pvt. Ltd (SSMT) Unit 1 and 2;

3) Santhosh Textile Process;

4) Wind Power business.

The entities a fore mentioned are family owned business houses. The processes

involved in all the three entities are illustrated below:

This being our first endeavor to publish a sustainability report, we have put forth our

best efforts to represent factual and balanced information for our stakeholders. Our

reporting period is from April 1st 2009 to 31st March 2010. The report has been

developed based on the Global Reporting Initiative (GRI) G3 guidelines. Sree

Santhosh Garments (SSG) would be the entity responsible for publishing the

sustainability report.

Self Declaration:

In our own assessment we have achieved a B Level of compliance with the GRI G3

reporting guidelines. This report is being forwarded to the GRI team to get the

application level check done.

Feedback:

We v a lue yo u r sugges t io n s:

We have a great deal of work ahead and we can take pride in what have been

accomplished until now. This is first time that we are sharing our non-financial

performance footprint with you. We would like to hear from you on our approach

towards sustainability. You can mail your suggestions/views to me at

vinoth@sreesanthosh.co m . I promise to give personal attention to the same.

Mr.Vinoth Kumar. C

Executive Director

Company Profile

The Company started as a small town garment manufacturing company in the year

1986 in Tirupur District, Tamil Nadu State, India and after years of learning we have

grown to be one of the respected export houses. In the succeeding years we started

exports to the United States and European Countries. We have gained knowledge

through our experience and have scaled to new heights which we had envisioned

when we started the company.

Gradually we have expanded our production facilities to match the ever

growing market demands and eventually have transformed into a renowned world-

class backward-integrated garment manufacturing company, and into one of India's

leading Garment Export Houses.

'Delivering Quality' has been the corner stone of our sustained growth and has

earned us trust and appreciation from our customers. We realized the significance of

structured management systems in order to ensure quality across various production

processes and implemented Total Quality Management through ISO 9001:2000. The

company also complies with various international voluntary quality and Eco-friendly

standards.

Overview of our units:

Our spinning mill, Shri

Santhosh Meenakshi Textiles

Private Limited (SSMT) is a

fully integrated production

plant built on a sprawling 20

acres of land located at

Thekkalur, 35 kms from

Coimbatore District, Tamil Nadu,

India. With a production

capacity of 18 Tons of

Yarn per Day (in all counts) we produce high quality of super combed yarn ranging from 20's to

44's counts2 in 100% Cotton Yarn and Organic Cotton.

Our mill has access to competent work force, world

class infrastructure and machinery to produce

the highest quality of yarn, at par with the output

standards of world

2No. of pieces of Cotton yards / threads needed to make 1 lb (pound) weight.

renowned producers of yarn. We have planned our expansion and by the end of

2011 there will be 20,000 spindles inclusive of compact yarn, Slub and Amsler Yarns

which will enhance the total production to 36 tons/day.

SSMT- Unit 2

Knitting:

Our knitting unit has a production capacity of 14 tons of Grey Fabric per day.

Equipped with advanced and imported knitting machinery our

knitting unit is consistent in delivering

unmatched quality and also has the potential for

a quicker turn around. In order to get

utmost precision and uniformity in output we

have deployed up to 92% of total machines from

a single make. This also gives us the

advantage of devising unique process

parameters

which can predict the desired quality. We have established a better working

environment in our Knitting unit. The entire unit is well equipped with dust collectors

and exhaust systems and thermocol roofing to provide thermal protection from

sunlight.

STP:

Our dyeing unit comprises of most modern and environmental friendly

operations. Sclavos machines from Greece with a capacity of 12 tons of dyed fabric

per day. We have installed an advanced ROBO Lab to make the Lab

Dips 99.9% accurate to meet the industry

standards.

Our Fabric Finishing unit comprises

of well equipped machinery such as

wet spreaders, relax dryers, stenter

with weft straightening

arrangement, open width and

Tubular compacting, brushing,

sueding, raising and slit open

Apart from creating the desired appearance we give the finest finish to the fabric,

by which we render smoothness to the texture of the fabric making it feel extremely

pleasant to touch.

Garment Washing:

We also have an advanced garment washing facility that can provide a variety of

washes which include Softner wash, Enzyme wash, Acid wash, Sand wash, Dip wash,

Golfball wash, Pad wash, Bio polish wash, Stone wash, Vintage wash, Marble wash.

SSG:Garment Production

Our production facilities are state of the art factories

equipped with the latest in technology used in garment

manufacturing right from Gerber cutting to packing

compromising Japanese, European and American machinery.

Our production units are power operated with the help of

SMART - MRT hanging conveyor systems. These

Hanging Conveyor Machines not only ensures Dust free

production but also saves considerable time thereby

increasing the productivity.

Designing & Cutting

Our in-built laboratory develops innovative designs and

styles with the help of CAD systems. The design department

is equipped with Lectra pattern making machines, Grading

and digitizing machines and Spreaders. To maintain design

and quality of garments at par with international

standards we have installed a cloth-laying machine in

our cutting department.

Embroidery:

Our embroidery unit is equipped with fully sophisticated

Japanese and German machines using CAD/CAM

designing, which enable mass scale execution of

intricate embroidery in upto 9 colors.

Our products:

We have a wide array of Knitwear and Woven garments including:

Men’s Wear

T-Shirts, Polo’s, Under Garments, Sleepwear, Sportswear, Work wear, Sweat Shirts,

Cardigans, Bermudas, Co-ordinates and Woven Shirts.

Women’s Wear

T-Shirts, Cycling Shorts, Under Garments, Sleepwear, Nightwear, Ensembles,

Pullovers, Vests, Leggings, Co-ordinates and Woven Shirts.

Kids Wear

Fancy T-Shirts, Boxers, Ensembles, Cardigans, Pullovers, Vests, Leggings, Co-ordinates, Woven

Shirts, Leggings and Cycling Shorts.

Wind Energy

Wind Power business:

Electricity is vital for the progress and development

of a nation and the same applies to industries also.

Industries in India have largely depended on the

conventional power plants (Coal, Diesel and other

carbon intensive fuel) for meeting their power

requirements. In recent times, the awareness on

environmental issues and Global Warming

has led many industries to tilt towards more sustainable and greener power plants.

This trend in turn has led to further investment into the renewable sector.

We also wanted to be part of this growing renewable energy revolution and wanted

to contribute towards reducing Greenhouse Gases (GHG) emissions. Encouraged by

Government incentives and as a responsible corporate citizen, we decided to

diversify into wind energy based power generation as a part of our commitment to

developing sustainable energy. We have our wind farms situated in the state of Tamil

Nadu with a total installed capacity of 11.175 MW and are in the process of

investing in additional Generators of 1.65 MW capacity. It is our conscious

decision to add more WEGs in the succeeding years and contribute to a greener

future.

The electricity produced from the WEGs are used for captive consumption at all the

four units and the surplus electricity is sold to the Tamil Nadu Electricity Board (part

of Southern Regional Grid of India). This helps to make our processes greener and

environmental friendly while at the same time, providing us with a more diversified

revenue stream.

Executive Director’s views on sustainability and its context to the company

- Mr. Vinoth Kumar, Executive Director – SSG

Our vision is to be one of the leading textile units and we believe in constant

improvement. In the current business context, change is the only constant and it is

our conviction that adapting to these changes is the answer for a long term and

sustainable business. Sustainability is the key for development of any organization

and the same applies to us as well. We foresee lot of challenges ahead of us, but are

determined to move forward relentlessly to achieve our goals and vision.

Being recognized as a responsible corporate citizen with a strong emphasis on

sustainable development is our main driver for sustainability reporting. This report is

our first step towards communicating to all our stakeholders about our non financial

performance and we believe it would be a great catalyst for aligning our business

practices in the direction of sustainability. We foresee this report to be an ideal

platform for expressing our plans & goals and for our stakeholders to convey their

opinions and suggestions.

Being in the textile and garment business, we encounter challenges that are

common across our industry. As a forward thinking company we have made key

changes and have implemented initiatives at all our units to address them:

i. Labour associated challenges:

ƒ Employee Retention:

A General trend with the employees working in this region is switching

companies very often and the main reason for this being difference in

salaries offered and the working environment. Factors such as

fluctuating “monsoon” and the “National Rural Employment Guarantee

Scheme (NREGS) have also influenced employee migration towards

alternate occupation.

At SSG, We offer salaries which are at par with the industry standards

and have put in efforts to provide a better and safer working

environment. We also provide subsidized food, hostel facilities

(SSMT) and transportation to our workforce. We will continue our

efforts to offer safe and increasingly better working conditions and

offer additional facilities or amenities as required by our employees.

ƒ Child Labour:

In the garment Industry, one of the most discussed and debated issues

nationally and globally is that of child labour. At SSG, we have a “No

child labour” policy in place that is practiced in letter and Spirit. We

have a zero tolerance for child labour and ensure the same is followed

with our suppliers and vendors.

ƒ Forced Labour and Compulsory Labour:

We have strong compassion towards our employees, we do not have

any employees who are bonded or forced to work for our organization.

ii. Electricity availability:

Power shortage has been a persistent problem for the past year with

the power shutdown during peak hours severely impacting the

industry. The state power grid has not been able to supply power on

a continuous basis and even though we have our own Wind Energy

Generators (WEGs) for meeting the electricity needs of all our units,

we depend on the state grid to transmit the power to all our units.

Due to the grid unavailability, we have not been able to utilize all the

electricity produced by our WEGs.

iii. Environmental problems – Water, Air and Land pollution:

Pollution has been a persistent issue with our sector for long. But in

recent years due to voluntary initiatives by the industries and a strong

enforcement by the Tamil Nadu State Pollution Control Board (TNSPCB)

and the Supreme Court of India, serious mitigation and remedial

measure have been incorporated.

Although at SSG we have our share of environmental pollution, we

have taken a conscious decision to reduce the pollution load on mother

earth to a minimum through planned initiatives. We have implemented

the Zero Discharge Facility at our Dyeing Unit (STP) and have charted

out plans to install solar cookers to meet our process (steam) and

canteen kitchen needs at SSMT - Unit 2. To meet our steam

requirements at our production unit (SSG) we have recently installed

an electric boiler replacing an old wood fired boiler. The electricity

needs of all the four units are met by our own Eco-friendly Wind Energy

Generators.

We have installed solar cookers and heaters at our dyeing unit to meet

the steam requirement for our canteen and process needs and

thereby have reduced our

dependence on carbon intensive fuels. We have planned to install

solar cookers and heaters at our SSMT – Unit 1 to meet our canteen

and process needs.

We want our products to be consumer and environmental friendly. In order to

accomplish this objective, we have adopted a proactive approach and have been a

part of various initiatives and have complied with different quality and eco-friendly

standards.

As a part of our buyer’s requirement we have contributed towards a few global

initiatives, such as Cotton Made in Africa (CMIA) project through Aid by Trade (ABT)

foundation. As part of this initiative, we have purchased 200 tonnes of cotton

which is 5.23% of total cotton purchased for our spinning mill.

The aim of CMIA is to produce high-value product, which is still inexpensive, with the

right quality not only in the raw material but also in the process chain. The main

objective is to provide basic primary school education to children, water use,

avoidance of fertilizers & pesticides during farming and to ensure farmers to earn

their living.

We also encourage the use of eco-friendly raw materials to produce worker and

environmental products. As a part of this objective, we purchase organic cotton and

have eliminated the use of certain hazardous substances & chemicals in the

production unit (Ref environmental performance section).

SSG has embarked on a ‘Green Factory’ project, which we believe will be a key

milestone in the history of our organization. In the course of next three years, we

are planning to have all the process units (spinning, dyeing and garments

production) at this factory, thereby making our products greener. This will also

continually create and enhance the value we deliver for our stakeholders.

Key Highlights

Employees safety - Robolab at Dyeing unit:

Employee safety is one of the most important aspects that SSG ensures. At our

dyeing unit, our lab technicians and analysts are exposed to different types of dyes,

chemicals and acids while conducting tests. Although the latest equipments and PPE

(Personal protective equipment) have been provided to ensure safety and limit

exposure, an element of accidents or danger is ever persistent. To eliminate this

possibility, we decided to procure “Robo-Lab” equipment to assist our technicians in

sample analysis under safe conditions. With the Robo Lab, exposure to chemicals,

dyes and acids is minimal, if any and results are accurate. The equipment was

bought at a cost of INR. 10 million and has been in operation in the lab for the last

few months.

Child Labour:

Tirupur is the hosiery capital of India, but in recent times it has been in the limelight

for all the wrong reasons. The industrial houses located here have ample employment

opportunities and attracts people of all ages. Most of the industrial setups have no

systems or control on the inflow of employees and a majority of the workers are

not on the permanent payrolls of these companies. Situations like these provide

an opening for underage laborers to enter an organization and work without being

noticed by their employers.

The child labour problems have been highlighted by many Non Governmental

Organizations (NGOs) and have been directed against all the industrial houses which

employ underage employees. Few have taken action and few are still in the process,

But poverty and pressure to earn livelihood has ensured that child labour still prevails

in the Tirupur region.

Although in the last few years industrial houses have taken child labour seriously and

have made sincere efforts to eliminate it and the government has come out with

various initiatives, child labour still persists.

Being a socially responsible citizen, we understand the implications of this issue and

have a zero tolerance for child labour at all our business houses. We have

formulated a child labour policy and have written down procedures and systems to

monitor the same.

Organic Cotton:

Cotton, the most important fibre crop of India plays a dominant role in its agrarian

and industrial economy. It is the backbone of our textile industry, accounting for 70%

of total fibre consumption in the textile sector, and 38% of the country's export. Area

under cotton cultivation in India (8.9 million hectares) is the highest in the world and

employs seven million people.

Cotton productivity in India is quite low as compared to world standards. Modern

cotton production technology relies heavily on the use of fertilisers and chemicals

to control insects, pests, diseases, weeds and growth regulators. Cotton cultivated

on 5% cultivable land consumes

54%3 of total pesticides used in Indian agriculture, and in few places, the rates are higher than

54%, resulting in immense ecological and human hazards and have resulted in poor

profitability of cotton farming.

The demand of organically cultivated, eco-friendly or ‘green’ cotton is increasing

everyday and the increase in “environmentally responsible” buying of products has

lead the garment industry to produce eco-friendly products. We have committed

ourselves to encourage organic farming and procure organic cotton for our

production.

3 Reference: Organic Cotton Farming in India

A new Green Factory Complex: “First of its

kind” in the region

We are building a new garment manufacturing complex

at Ayyampalayam, Tirupur District, Tamil Nadu,

India, which is expected to commence

production by August

2010. We have invested significantly to

incorporate several green features in the factory's

design so as to reduce its ecological footprint and

at the same time enhancing the quality of the

working environment. The salient features of the

green factory are as below:

• Utilize 12% lesser water

• Uses 100% renewable energy

We hope to achieve the “Platinum” green factory rating from the Indian Green

Building Council for this facility; the first of its kind in the region. We aim to design

all our future facilities with the green concept.

Carbon Neutral:

Climate change is possibly the biggest challenge

of the century. The last few years have seen

frenzied media news about how various industrial

activities are contributing towards climate

change. We recognized that electricity was our

major source of GHG emissions. Over the last few

years, our conviction to reduce our carbon

footprint has resulted in the installation of wind

power plants to meet our electricity requirements.

Today, our wind power plants

offset more GHG emissions than that emitted in our facilities.

SSG is proud to be one of the first in the Tirupur region to have received the

“Carbon Neutral” Certification.

Solar cookers (For process and

cooking):

Solar energy is one of the most abundant source of energy available and the “least used”

renewable source of energy by humans among other renewable like wind, biomass or hydro.

We have successfully installed solar cookers and heaters at our dyeing unit (STP)

which cater to the needs of the canteen kitchen and in our process to produce

steam. Although the cost of

production of steam from solar heaters is much higher than conventional

boilers, we have invested owing to the fact that while solar is pollution free, the

conventional boiler is not. We have planned to install solar heaters in our SSMT-Unit

2 also to meet the steam requirements of our process and canteen kitchen.

Corporate

Governance We operate in a competitive and challenging market, fraught with

risks and opportunities. We believe that good governance is the key for any business

to be sustainable and the growth of our company in the last two decades has

vindicated our stand of building a strong value system and adhering to our core

business principles. We are committed to follow the ethical business

practices and abide by the law of the land in which we operate.

We have four committees which are functioning at all our business houses, these

committees help us in our administration and decision making process. The four

committees are presented below:

The responsibilities of the committees are to plan, train, implement and monitor

systems, policies and procedures. Each committee consists of a minimum of five

employees and a management representative from the top management where

applicable, who oversees these committees and authorizes decisions. The members

of the committee are aware of their roles and responsibilities and which are clearly

defined. We have social compliance team, who regularly conduct internal audits for

all the units to monitor the activities and also improvements are suggested

during these audits.

Each of the committees meet once in a month to discuss and focus on the problems

or issues put forth by the employees and decisions are taken to rectify or mitigate

the problems. The minutes of the meeting are recorded and documented.

We are not a listed entity, but we have a Code of Business Conduct, which lays down

important Corporate Values that help regulate our value system and business

practices. Compliance to the Code of Conduct is mandatory for all employees.

The code clearly defines important Corporate Governance practices to be followed with respect

to the following:

1. Child Labour;

2. Forced Labour or Compulsory Labour;

3. Health and Safety Conditions;

4. Freedom of Association and right to Collective Bargaining

5. Discrimination :

6. Disciplinary Practices

7. Working Hours

8. Wages and Benefits

9. Management Responsibility

For a detailed Code of Conduct please refer Annex section of this report.

Data collation and management:

We are equipped with Order Management Systems (OMS) software to capture and

record the data relevant to our day to day operations at all our units. We realize the

importance of effective, robust and real time data management systems and have

decided to implement Enterprise Resource Planning (ERP) across all our business

units.

Enterprise resource planning (ERP) is an integrated computer-based system

used to manage internal and external resources including tangible assets, financial

resources, materials, and human resources.

The main objective of ERP implementation is to facilitate the flow of information

between all business functions inside the organization and manage the connections

to external stakeholders (suppliers and buyers). We have plans to go live with ERP by

the end of FY 2010-11.

Management Systems and Certifications:

Qua l i ty M a n a g e m e nt Syst e m s (QMS) – ISO 9 0 0 1 : 20 0 8

QMS has helped the organization in integrating various internal processes

within the organization and intends to provide a process approach for product

execution. QMS has enabled us to identify measure, control and improve our core

business processes and has resulted in improved business performance.

We have been recertified on 17 July, 2009 for meeting the requirements of ISO 9001:2008.

Customer Satisfaction:

A business can be successful and sustainable on a long term basis only by

meeting customer needs and maintaining quality.

At SSG we are committed to Quality and ensure that the quality of our products will

not be compromised at any given time, from the point of origin till our products

reaches the customer. Each product goes through stringent quality checks.

Customer feedback is an important tool for us to assess where we stand in terms of

quality and meeting our customer needs, this exercise helps us in retaining the

customer’s trust and our credibility.

Our Quality Policy

“We, the employees of the Company commit ourselves to achieve and enhance

customer satisfaction through-out the implementation of internationally recognized

Quality Management System and aim for continual improvement during this period.

We will achieve them, by strictly implementing the

following; a) Proper determination of

Customer requirements; b) Better

understanding of those requirements;

c) Clear and complete communication of them to the Factories ;

d) Delivering Quality Products in the agreed delivery date and in the

competitive

Price.

Social Accountability – SA 8000:2008

SA8000 is an international standard for improving working conditions around the

world. It is based on the principles of thirteen international human rights conventions,

ten of which are conventions of the International Labour Organization (ILO). The

SA8000 standard is intended to help apply these norms to practical work-life

situations. SA8000 expands on the eight conventions of the ILO’s Declaration of

Fundamental Principles of Rights at Work which covers child labor, forced labor,

discrimination and free association and collective bargaining and standards on health

and safety, working hours, wages, and discipline.

Our employees are our biggest assets and have been responsible for our

progressive growth in the last two decades. Our objective is to support and provide

all the necessary facilities to make the workplace safe and better and complying to

SA 8000:2008 is one of the measures in realizing the objective resulting in

employees being more productive. Our production unit has been re- certified for

SA 8000:2008 on January 08, 2010.

Global Organic Textile Standards (GOTS):

The Global Organic Textile Standard (GOTS) is the worldwide leading textile

processing standard for organic fibres, including ecological and social criteria, backed

up by independent certification of the entire textile supply chain.

The aim of the standard is to define world-wide recognized requirements that ensure

organic status of textiles, from harvesting of the raw materials, through

environmentally and socially responsible manufacturing up to labeling in order to

provide a credible assurance to the end consumer.

Textile processors and manufacturers are enabled to export their organic fabrics and

garments with one certification accepted in all major markets.

Our production unit has been inspected and our products found to be in accordance

with the standards and have been are certified by Control Union Certifications on

February 15th, 2009.

Organic Exchange (OE):

Organic Exchange is a 501(C)(3) charitable organization committed to expanding

organic agriculture, with a specific focus on increasing the production and use of

organically grown fibers such as cotton.

Our long term goal is to increase the amount of certified organic land farmed for fiber

production by 50% per year. Achieving this goal will allow us to have a positive,

significant, visible and measurable impact on the world.

Our production unit has been inspected and our products found to be in accordance

with the standards and have been are certified by Control Union Certifications on

February 15th, 2009.

Fair trade – FLO-CERT:

Fair trade standards are designed to tackle poverty and empower producers in

the poorest countries in the world. The standards apply to both producers and

traders. The main focus is secure better deals for the producers. The compliance

check and certification is carried out by FLO-CERT. We are proud to be part of Fair

Trade.

The FLO-CERT certificate for Fair Trade for all the four units was awarded on September 25th,

2009 which permits us to trade in Fair Trade products.

OEKO-TEX:

The Oeko-Tex Standard 100 was introduced at the beginning of the 1990s as a

response to the needs of the general public for textiles which posed no risk to health.

The standard helps the consumer to assess the human ecological quality of textiles/

products and for textile and clothing industries as uniform standard for practical

assessment of potential harmful substances in textile products.

Our baby products: Knitted t-shirts have been tested and certified as per the

requirements of Oeko-Tex Standard 100. Our production unit was re-certified on

December 01, 2009 for complying with the requirements of OeKO- Tex standard 100.

Stakeholder Engagement:

Our dialogue in the past has been only with one stakeholder; our customer. We

realize and understand the significance of engaging our other stakeholders also. As a

first step towards our multilevel stakeholder engagement, we have commenced

communicating with other identified stakeholders:

We perceive the need to communicate with multilevel stakeholders which would help

us understand the key risks and opportunities associated with our business. Since the

formal stakeholder engagement process is in its initial phases, we plan to strengthen

it by forging closer ties with our stakeholders and engaging them at regular intervals

to continuously capture stakeholder expectations and improve our performance. Our

earlier stakeholder engagement had been limited to only our customers and

suppliers.

Key Performance Indicators

Discl o su r e of Ma n a gement App r oach on Economic Performance

Economic Indicators

We have robust systems to collate data on economic parameters like direct economic

value generated and distributed; revenues; operating costs; employee compensation;

donations; community investments; retained earnings; payments to capital

providers and governments; significant financial assistance received from

government. The information related to these parameters has been sourced from the

data presented in the annual report that is verified and audited by an external

auditor. Though we do not have a policy for ensuring maximum contribution from

local suppliers, we have long standing relationship with several local suppliers.

With respect to local hiring we follow the law of the land. Additional information on

economic and related parameters can be obtained from our annual report.

Our finished products are sold to International buyers and which constitutes 100% of

our sales. Buyers are predominantly from European Union (EU) and partly from

United States of America (USA).

As on March 31st, 2010 our total work force in all the four units was 899, as a part of

our commitment we provide Employees State Insurance (ESI) coverage and

Provident Fund (PF).

The details of the contribution from employees and employer are as follows:

Sl no. Benefits SSMT STP SSG

1 ESI INR. 1.27 million

€ 0.22

INR. 0.27 million

€ 0.004

INR. 0.70 million

€ 0.121 2 Provident

FundINR. 4.73

million

€ 0.082

INR. 1.07 million

€ 0.018

INR. 2.40 million

€ 0.041

The SSMT- unit 1 received assistance from the Ministry of Textiles through the

Technological Up gradation Fund Scheme (TUFS). During the reporting period we

had received the following

subsidies and grants from the government.

Sl no. Details

SSMT unit 1 SSMT unit 2

STP SSG

1 Grants INR. 27.83 million

€ 4.85

No No No

Salary and Wages:

We follow the laws of region in which operate our business, for our SSMT Unit1 we

follow the National Floor Level wages directive and for our other three units we follow

1948- Rates of Minimum wages Act issued by Labour Department, Tamil Nadu, India.

The wages are paid on a weekly basis and also on monthly basis, predominantly

workers opt for weekly wages.

In the reporting period the total amount salary disbursed units wise are presented below:

Sl no. Details SSMT STP SSG

1 Salary in million

INR. 22.63 million

€ 3.94 million

INR. 6.03 million

€ 1.05 million

INR. 15.03 million

€ 2.62 million

Our total investment in the Wind Energy Generators (WEGs) as on March 31st, 2010 was INR

653.94 million or € 11.37 million (inclusive of new 1,650 kW). The total

installed capacity of WEGs is 11.175 MW and the total number of WEGs installed

as on date are 24 and the different capacities of the WEGs are 225 kW (9 in nos.),

500 kW (9 in nos.), 600 kW (5 in nos.) and 1,650 kW (1 in no.). We are adding one

more WEG 1,650 kW capacity to the existing portfolio and this new addition would

increase our total installed capacity to 12.825 MW.

Discl o su r e of Ma n a gement Approach on Environment

Environmental Indicators

We have systems and plans in place to addresses our concern towards conserving

and improving the environment. We have identified issues like water usage and

recycling, waste management, environmental compliance, conservation of natural

resources. Even though we do not have an Environmental Policy in place, we abide to

QMS and are certified for ISO 9001:2008 under which we execute management

programs with specific goals and targets in compliance with the corporate

requirements, with a complete action plan to achieve the same.

- Environment KPI’s

We are conscious of maintaining a good environment and the implications of not

undertaking mitigation measures for environmental problems. During the reporting

period there were few data gaps observed in our SSG Unit and SSMT Unit-2 and due

to this representation of few indicators have not been reported. We have taken

a notice of the same and have devised measures to capture the relevant data.

For emission factors we have used IPCC-2001 assessment report values for

calculating the GHG emissions and reductions.

Materials used:

The total raw material purchased during the reporting period stood at

3820.55 tonnes of cotton of which 199.92 tonnes (5.20%)

were imported from Africa as a part of our association with

CMIA program and organic cotton purchase stood at 368.74

tonnes (10%).

Other associated materials were carton boxes and polyethylene bags which was

4002.54 tonnes used for packing during our internal transportation between our

units and products delivery to the clients. The total amount of diesel and furnace oil

purchased during the reporting period was

288.21 KL and 9,750 KL respectively.

Electricity, steam and GHG emissions:

The electricity produced from our WEGs are used for captive consumption at all our

units and during power shut downs we depend on our diesel generators to meet

electricity needs.

The electricity production from wind energy generators during the reporting period was

95,803.04 GJ of which 53,773.20 GJ was utilized for all our units and the surplus

42,029.84 GJ was sold to the state grid.

During the reporting period the energy consumption for the four units are as follows:

Units Electricity

produced off site

Electricity

Produced at site

Steam produced

and used

SSG GJ 665.46

0 Not available

SSMT

Unit -1

Unit -2

GJ

GJ

8,447.28

38,651.9

0

217.20

Not applicable

Not available

STP GJ 6,008.56 1674.30 11544.92

Total GJ 53773.20 1891.50 11544.92

The greenhouse gases emissions were primarily from our diesel generator sets at

our units and use of wood for our boilers. The annual greenhouse gas emissions were

4,508.95 tonnes of CO2e. The electricity produced from our WEGs had saved

22,620.16 tonnes of CO2e emissions, making us a net “Carbon Positive”

organization.

We have set a goal of reducing our GHG emissions every year by 5%, we understand

the goal would involve additional projects and additional investments, but we

are committed to contribute our mite towards reducing global greenhouse

emissions.

Water usage and recycling:

The water consumption at all our four units is mainly for two purposes which are:

¾ Domestic use (drinking, cooking and water closets)

¾ Process : Steam production for ironing, for dyeing unit process and sprinkling

purposes at the SSMT

Information pertaining to water usage and recycling were documented in our dyeing

unit (STP) alone and in other three units the information present could not be used for

the reporting. To overcome this problem for the next reporting period, we have

drafted systems to capture the data accurately which can then be presented in the

report. The main supply of water for our three units (dyeing, production and SSMT

unit-2) is from the Municipality and for SSMT unit-2 we depend on ground water from

our bore wells.

Water purchased from the municipality for our dyeing unit in the reporting period

was 8,550 KL. Waste water:

Dyeing units in Tirupur District have come under tight scrutiny of the Tamil Nadu

Pollution Control Board (TNPCB) and Supreme Court of India’s order. The damage

caused to the water bodies and the public outcry has been instrumental in the

shutdown of many dyeing units and has led few dyeing units to take preventive and

mitigation measures.

At our dyeing plant (STP) we have installed Salt and Water Recycling plants to

achieve Zero Liquid Effluent Discharge. Equipped with multi effect Evaporator and

Crystallizer it enables the recovery and re-use of salt and water. We have also

installed primary, secondary and tertiary effluent treatment plants with reverse

osmosis systems for recycling water. The other two units are dry process units and

the major source of waste water produced is from the water closets.

Wastewater treatment has been operational in our dyeing unit and mill, with our

dyeing unit recycling 90% of wastewater and reusing the treated water in the process

and other requirements. During the reporting period the wastewater recycled and

reused were 54.19 KL and 48.77 KL respectively.

Waste Generation:

We have systems in place to collect and dispose the waste in a scientific manner. The

major contributors of waste are SSG and SSMT unit-2. A few categories of waste

which are non- hazardous or organic are sold to registered and recommended scrap

dealers and vendors for recycling and reuse. Hazardous waste is generated

predominantly at our dyeing plant (STP), during the reporting period the waste

generated at the two units are presented below:

Normal or Non

Hazardous

Reusable waste Hazardous waste

SSMT Unit -2 15.18 tonnes 5.5 tonnes Nil

STP 3.80 tonnes 4.20 tonnes 17.56 tonnes

Ozone Depleting substances:

We do not employ any processes which involve release or use of substances which

are Ozone Depleting and the fire extinguishers used in all the four units are free from

any kind Chlorofluorocarbons (CFCs) or Hydrochlorofluorocarbons (HCFCs). The air

conditioners which we is being used at our offices are also CFC and HCFC free.

Spills:

We take preventive and precautionary measures during the transportation,

loading and unloading of chemicals, dyes and fuels. During the reporting period

there have not been any major spills of dyes or chemicals or fuels at any of our units.

Compliance:

Compliance to legal and statutory requirements is vital for operating our business

without any hindrance and risks. We have complied with all obligatory legal and

statutory requirements and have ensured not to attract any penalties or fines during

the reporting period.

Expenditure:

The total expenditure related to the environmental protection stood at INR. 8.24

million or 0.14 million euros, the expenses were mainly on purchase of new lab

equipments, setting up of anaerobic digestion tank, Reverse Osmosis (RO)

membranes and Pollution Control Boards - consent renewals.

Ban of Chemicals:

Based on the request from our customers end, effective from April 2009 we have

banned the use of the following chemicals at all our units:

Sl no. Banned Chemicals

1 Benzene (71-43-2)

2 Methylene Chloride (7509-2)

3 Perchloro ethylene (127-18-4)

4 N.N.Dimethyl formamide (68-12-2)

5 Cellosolve (110-80-5)

6 Methyl Cellsolve (109-86-4)

7 Toluene (108-88-3)

8 Trichloro Ethylene (79-01-6)

9 Carbon Tetrachloride (56-23-5)

10 Phenol (108-95-2)

11 Cellosolve Acetate (111-15-9)

12 Methyl Cellsolve Acetate (110-49-6)

Social Indicators

We do not have a policy or framework which guides to support our local community,

but we are associated with one NGO – Anbu llam, Tirupur and have financially

supported various blood camps donation and AIDS awareness programs held in

Tirupur. We had volunteered in sapling plantation drive on one occasion. This year

we have initiated a structured stakeholder dialogue and plan to further strengthen

the process of inviting the feedback from associations, NGO’s and people of the

society in which we operate.

Discl o su r e on Ma n a g ement Approach on Lab o ur P rac t ices and Dec e nt Work

We have dedicated committees to manage our people, resolve their problems and

cater to their requirements. Our teams visit all the units on regular intervals to

address and solve labour related issues. Further we have comprehensive training

programs to addresses aspects like ensuring process safety, compulsory use of

personal protective equipment, promoting occupational health, organizing training

sessions and creating a safe work environment. All our sites follow Suppler Ethical

Data Exchange (SEDEX) Guidelines for Ethical Standards under which every site

executes programs with specific goals and targets in compliance with the corporate

requirements, with a complete action plan to achieve the same.

It is obligatory for the management and every employee to sign the company's code of conduct.

We believe in equal opportunities principle and do not practice gender bias. We are a

responsible organization and proscribe child labour. We have deployed systems to

check and verify the age of our personnel and also regular check by the HR team is

carried out to ascertain the age of employees.

We have an optimized number of employees with well defined job profiles and

responsibilities. We are open to recruiting people from any part of the country but

we do give preference to the local people. This is apparent form the fact that 9 9 .8

% of our employees are from the state of Tamil Nadu.

Total workforce of all the four units as on March 31st, 2010 stood at 899 in nos.

The unit wise break up of workforce is illustrated below:

Male in

nos

Female in

nosSTP 67 1

SSMT Unit-1 209 66

SSMT Unit-2 64 227

SSG & Office staff 169 96

Total

509

390

We believe in equal opportunities principle and do not practice gender bias. We are a

responsible organization and proscribe child labour. We have deployed systems to

check and verify the age of our personnel. The retirement age fixed for all our units

is 60 years and only in our SSMT-Unit

1 we have one person who has volunteered himself to as a security guard in our unit.

Employee’s health and safety is of top priority to us, we regularly conduct health and

safety trainings which focus on: working conditions, handling machinery, using of

personal protective equipments, first aid and fire drills. We have committees at all our

units to supervise the workers. We have employees who are trained exclusively for

obtaining First Aid and Fire Fighting skills, the name and contact numbers of the

trained employees are displayed in the work areas. We want to ensure a zero

accident record but during the reporting period three accidents had occurred

and were reported.

Accidents:

Two female employees at SSMT-Unit 2 (Spinning):

1. Quality Assurance Assistant: While working with the analyzer machine, her

right hand index finger accidently came in contact with the moving part of the

machine and resulted in an injury. The cost of treatment was borne by the

company.

2. Maintenance Assistant: While inspecting the buffing machine, her right hand

slid and was stuck in between the grinding stone and machine, resulting in an

injury to her right hand. The cost of operation and treatment was borne by the

company.

One male employee at STP (Dyeing unit):

3. Boiler Helper: While loading firewood into the boiler, one huge log had slipped

and hit the left hand of the employee resulting in an injury to his left hand ring

finger. The cost of treatment was borne by the company.

In all the above cases during the absence at work none of the employees has any loss of pay.

The accidents had resulted in 109 days of absenteeism. The post accidents

assessment revealed that accidents occurred mainly due to the negligence of the

employees and a decision was taken on providing thorough training on working,

handling machinery and related safety measures.

Working hours:

Our spinning and dyeing unit have three, eight hour shifts per day and at our

production units we work one eight hour shift basis and all our units have ‘Over Time’

policy which allows the employee to decide and volunteer for extra or over time

work. We would also like to mention that on short occasions we work for additional

hours to meet our targets and only employees who are interested (voluntarily) to

work additional time are encouraged to come and work after their scheduled shift.

Continuous training and learning helps us to work and deliver better. We have

different training modules covering important aspects of Human Rights, Code of

Conduct, Health & Safety, Use of PPE equipments and statutory benefits. In the

reporting period the total hours accounted for training stood at 4,803 hours which is

inclusive of all the four units. The average hours of training

based on employee category is depicted below:

Remuneration:

The three units: SSMT Unit-2, SSG and STP employees earned greater than the

stipulated minimum wages under “Minimum Wages Act – 1948, Tamil Nadu, India

and National Floor Level wages which is being followed at our SSMT Unit-1.

Human Rights:

The employee strength has grown three fold in last few years and so has our

approach towards their welfare, rights and safety. Our practices have been

formulated as policies, with these policies reflecting the way in which we want

to run our business. We follow the statutory requirements pertaining to Human

rights and other voluntary standards. We have an open door policy and we encourage

all our employees to voice their opinion on our policies and programs. Our committee

team members meet the employees on regular intervals, which help us in

understanding their expectations and concerns.

Human Rights:

We are committed to providing a better working environment for our employees,

with the policies and procedures drafted and practiced to make our workplace a

better place. We regularly impart training to our employees for them to understand

their rights during their presence at our company. In the reporting period 2,928

hours were spent exclusively training employees on aspects related to Human

Rights and other benefits.

We have a ‘no discrimination policy’ by which we are committed not to offend or

discriminate job seekers or existing employees based on their caste, religion,

language, gender, country

,political affiliation, colour, race, union membership and pregnancy status. During the

reporting period there were no incidents reported on any kind of discrimination.

We do not have any trade unions present in our company and we do not restrict any

employee from joining any union or association of his/her choice. Our Code of

Conduct expresses the following:

• Employees are free to joint any trade union of their choice and they shall not be

restricted to join unions or to form a union;

• Union representatives are not restricted to meet the employees and discuss;

• In absence of a union, they shall be allowed to meet the management

directly and do bargaining;

• Works committee shall be formed to do any discussion or Collective Bargaining.

We do not encourage any underage workers or child labourers in all the four

units, we take special attention while recruiting our employees. Our job application

form clearly indicates that child labour would not be entertained under any

circumstances. We also encourage our suppliers and vendors to abide to the sample

policy as ours. The same has been delineated in our code of conduct and Child

Labour policy.

All our units abide by the Code of Conduct and we do not patronize any

activities which result in forced or compulsory labour. The following are strictly

being followed at all our units:

• No form of Forced / Compulsory Labour (verbal, physical, psychological)

shall be allowed / practiced in the company.

• No original documents (like passport, license, certificate, etc)

collected during recruitment.

• No bonded Labour system practiced by the company.

• No long term loan with excessive interest percentage shall be practiced.

Our Social Compliance team is responsible for supervision and ascertaining that

above stated are practiced in the organization at all levels.

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- 42 –

Glos s ary of T erms

ABT Aid by Trade

CFC Chlorofluorocarbons

CMIA Cotton Made in Africa

CO2 Carbon di oxide

ESI Employees State Insurance

FY Financial Year

GJ Giga Joules

GOTS Global Organic Textile Standard

MW Mega Watt

GRI Global Reporting Initiative

GHG’s Greenhouse Gases

HCFC Hydrocholorofluorocarbons

ILO International Labour Organization

INR Indian Rupee – official unit of currency in India

ISO International Organization for Standardization

KL Kilo Litres

MW Mega Watt

NGOs Non Governmental Organizations

NREGS National Rural Employment Guarantee Scheme

OE Organic Exchange

PPE Personal Protective Equipment

QMS Quality Management Systems

SA Social Accountability

SEDEX Suppler Ethical Data Exchange

SSG Sree Santhosh Garments

SSMT Shri Santhosh Meenakshi Private Limited

STP Santhosh Textile Process

TNSPCB Tamil Nadu State Pollution Control Board

TUFS Technological Up gradation Fund Scheme

WEGs Wind Energy Generators

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- 43 –

Annexu r e

Annex -1 – B usi n e ss Co d e of Con d uct

The Code of Conduct of Sree Santhosh Garments is documented as below for

communication to their employees / Suppliers for their better understanding and

follow up in their premises.

This COC aims for better social and ethical conditions, working environment in the

company and all the applicable benefits are paid to their employees.

1. Child Labour :-

• The company shall not engage in or support any form of Child Labour in their

premises, at any cost for any reasons what so ever.

• Adult labours are only preferred to join the company.

• Age verification of everyone is compulsory before recruitment to any

position in the company. Copy shall be collected and maintained in their

records.

2. Forced Labour / Compulsory Labour :-

• No form of Forced / Compulsory Labour (verbal, physical, psychological) shall be allowed /

practiced in the company.

• No original documents (like passport, license, certificate, etc) collected during recruitment.

• No bonded Labour system practiced by the company.

• No long term loan with excessive interest percentage shall be practiced.

3. Health and Safety conditions:-

• Sufficient Lighting and Ventilation shall be provided in all sections according to

their work nature.

• First Aid Boxes and its minimum contents shall be provided as per legal

requirements along- with trained employees for First Aid

• Fire Extinguishing arrangements shall be made with trained employees in all areas of work

• Potable drinking water shall be provided to all employees

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- 44 –

• Toilets and Urinals shall be provided for all employees (male / female) as

per legal requirements and shall be maintained well, clean and odorless,

sufficient water shall be available during working hours

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- 44 –

• Provision and usage of Personal Protective Equipments (PPE) like mask,

gloves, needle guards, eye guards, metal gloves, goggles, ear plug, ear muff, etc

shall be effectively done.

• Usage of any chemical shall be listed and their Material Safety Data Sheets

(MSDS) shall be collected to provide necessary training to the users

• Necessary Health and Safety Trainings shall be provided and records shall be

maintained for reference

• All electrical installations shall be provided and maintained in safe and good conditions

• All rotating and moving parts shall be provided with proper guards and covers

4. Freedom of Associa t ion a n d r ight t o C o llec t ive B argai n i n g :-

• Employees are free to joint any trade union of their choice and they shall not be

restricted to join unions or to form a union

• Union representatives are not restricted to meet the employees and discuss

• In absence of a union, they shall be allowed to meet the management

directly and do bargaining

• Works committee shall be formed to do any discussion or Collective Bargaining

5. Disc r imina t ion :-

• There shall not be any form of Discrimination in the terms of colour, religion,

language, caste, gender, country, etc

• Equal work shall be paid equally (and any difference in benefits are only

based on their efficiency and capability and not a discrimination)

6. Disciplinary Practices:-

• Employees shall be treated properly during their working in the

premises. Any discrepancies/ mistakes shall be dealt properly as per procedures

of company and legal requirements. Records of any such cases shall be

maintained properly.

7. Wor k i n g H o u rs :-

• Working hours of all employees shall be as per local legal laws and shall not

exceed 8 hours/day and 48 hours/week for regular working

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- 45 –

• Over Time working shall be limited always and shall not exceed 2 hours/day and 12 hours /

week and 50 hours / 3 months

• One day weekly off shall be provided to all employees, after every 6 work days

8. Wages a n d B enefits :-

• Wages shall be paid as per local legal laws for all employee categories and

records shall be maintained for evidencing them.

• Over Time work shall be always paid at a premium rate and records shall be

maintained for evidencing them

• Benefits as per law like ESI (Employees State Insurance) and EPF (Employees Provident

Fund) shall be paid to employees

• Other benefits like Bonus, leave wages, holiday wages also shall be paid

9. Management Responsibility :-

• Management shall ensure the proper understanding of above requirements and

local legal law requirements and effective implementation of them.

• Sufficient measures shall be taken to maintain this Code of Conduct in all

applicable premises.

* * * * * * * *

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- 46 –

Annex-2 - List of Certificates

SSG – Sustainability Report 2009-10 - 47 –© Copyright of SSG

GRI Content Index Pg no Reported

Yes No

Profile

1.1

Statement from the most senior decision maker of the organization

3 D

1.2

Description of key impacts, risks, and opportunities 13 to 15 D

Organization profile2.1

Name of the organization. 6 D

2.2

Primary brands, products, and/or services. 11 D

2.3

Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures.

6 D

2.4

Location of organization’s headquarters. D

2.5

Number of countries where the organization operates 6 D

2.6

Nature of ownership and legal form. 19 D

2.7

Markets served 27 D

2.8

Scale of the reporting organization, including D

2.9

Significant changes during the reporting period D

2.10

Awards received in the reporting period.

Report Parameters3.1

Reporting period 6 D

3.2

Date of most recent previous report. 6 D

3.3

Reporting cycle 6 D

3.4

Contact point for questions regarding the report or its contents

7 D

Report scope and boundary3.5

Process for defining report content 6 D

3.6

Boundary of the report 6 D

3.7

State any specific limitations on the scope or boundary of the report

6 D

3.8

Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations.

6 D

3.9

Data measurement techniques and the bases of calculations,including assumptions and techniques underlying estimationsapplied to the compilation of the Indicators and other

29 D

3.10

Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement

6 D

3.11

Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.

6 D

3.12

Table identifying the location of the Standard Disclosures in the report. 41 D

ASSURANCE

3.13

Policy and current practice with regard to seeking external assurance for the report.

D

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Governance, Commitments, and Engagement4.1 to 4.10 Governance 19 D

4.11 to 4.13

Commitments to external initiatives 20 D

4.14 to 4.17

Stakeholder Engagement 25 D

5 Management Approach and Indicators

Economic

EC 1 D

EC 2 27 D

EC 3 27 D

EC 4 28 D

EC 5 D

EC 6 D

EC 7 D

EC 8 D

EC 9 D

Environment

MaterialsEN 1 31 D

EN 2 31 D

EnergyEN 3EN 4EN 5EN 6EN 7

31 D D D D D

WaterEN 8EN 9En 10

31 to32 D

D

D

BiodiversityEN11EN 12EN 13EN 14EN 15

D D D D D

Emissions, Effluents and WasteEN 16EN 17EN 18EN 19EN 20EN 21EN 22EN 23EN 24EN 25

31 to32

D D D D

D D D

D

D D

SSG – Sustainability Report 2009-10 - 49 –© Copyright of SSG

Products and ServicesEN 26EN 27

32 DD

Compliance - EN 28 33 D

Transport - EN29

Overall - EN 30 33 D

Social

Labor Practices and Decent Work

EmploymentLA 1LA 2LA3

36 D D D

Labour / Management RelationsLA 4LA 5

36 D

D

Occupational Health and SafetyLA6LA 7LA 8LA 9

37 D D

D D

Training and EducationLA 10LA 11LA12

38 DD D

Diversity and Equal OpportunityLA13LA14

38D

D

Human Rights

Investment and Procurement PracticesHR1HR2HR3

40

D

D D

Non Discrimination - HR 4 40 D

Freedom of association and collective bargaining - HR5 40 D

Child Labour - HR6 40 D

Forced and Compulsory Labour - HR7 40 D

Security Practices - HR8 D

Indigenous rights - HR9 40 D

Society

Community - SO1 D

CorruptionSO2SO3SO4

D D

D

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Public PolicySO5SO6

D D

Anti Competitive Behaviour- SO7 D

Compliance - SO8 D

Product Responsibility

Customer Health and SafetyPR1PR2

D D

Product Service and LabelingPR3PR4PR5

D D D

Marketing and CommunicationPR6PR7

D D

Customer Privacy - PR8 D

Compliance - PR9 D

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