SUSTAINABILITY REPORT 2018 · Sula that we don't balance sustainability and growth, sustainability...

SUSTAINABILITY

REPORT 2018

PageSUSTAINABILITY REPORT 2018S U L A V I N E YA R D S

OVERVIEWAND

INDEX

At Sula, green is as important as red and white. As a family

owned wine company, we are committed to producing India’s finest wines while minimizing adverse environmental impact to secure natural resources for future generations.APPENDIX

PLANET 8

REDUCE GREENHOUSE GAS EMISSIONS 9

GHG HIGHLIGHTS 10

IMPROVE WATER USE EFFICIENCY IN OPERATIONS 11

REUSE WASTEWATER 12

IMPROVE WATER USE EFFICIENCY IN VITICULTURE 13

PROVIDE ACCESS TO SAFE WATER AND HYGIENE 14

REPLENISH WATERSHEDS 15

WATER HIGHLIGHTS 16

RECYCLABLE PACKAGING 17

SEND ZERO WASTE TO LANDFILL 18

ORGANIC CAMPUS 19

SUPPLY CHAIN 20

PEOPLE 21

RESPONSIBLE DRINKING 22

CORPORATE SOCIAL RESPONSIBILITY 23

EMPLOYEE ENGAGEMENT 24

PREVENT USE OF CHILD LABOUR 25

BUSINESS AND HUMAN RIGHTS 26

DATA GOVERNANCE OBJECTIVES

& OUTCOMES 27

REPORTING PRINCIPLES 28

ABOUT SULA 1

MESSAGE FROM THE CEO 2

OUR APPROACH 3

Q & A WITH KARAN VASANI 4

SUSTAINABILITY VISION 5

Q & A WITH INESH SINGH 6

SUSTAINABLE SULA INITIATIVE 2021 7

PageSUSTAINABILITY REPORT 2018S U L A V I N E YA R D S

ABOUT�SULAIn 1999, CEO and Founder,

Rajeev Samant, s tar ted Sula Vineyards, with the goal of bringing quality wine to India. We have grown by leaps and bounds since then and now are the market leader in India with a market share of over 65%. We are one of Asia’s fastest growing alcobev companies with a CAGR of 19% over the last 5 years and possess India’s #1 wine distribution network with a presence across 33 States. We are also one of India’s top 3 independent wine & spirit importers with a portfolio of leading international brands. What started as a small vineyard has now grown into India’s leading winery and tourism business, with our site being one of the world’s most visited vineyards with approx. 400,000 visitors in FY19.

Sula as a business finds its roots in sustainable practices. We firmly believe that in order for a business to be successful it needs to be run sustainably. We are responsible for our environmental and social footprint, and have taken great care to grow our business while continuing to have a positive impact on nature and communities. We have set and achieved ambitious sustainability targets in the past, will continue to do so in the future.

MORE THEN 2,000 ACRES OF LAND

MORE THEN 65% OF THECOUNTRY’S WINE MARKET

MORE THEN1 MILLION CASES SOLD

Sula has not only set the bar in India’s wine market, but has also empowered hundreds of people by generating employment, and improving the lives of people living in communities that are based in the areas we operate. Sustainability has always been one of our pillars, and will be an integral part of our business as we continue our rapid growth. We are already miles ahead of other wineries in India, and through the Sustainable Sula Initiative 2021 are aiming to be the most sustainable winery in Asia.

PageSUSTAINABILITY REPORT 2018S U L A V I N E YA R D S 1

MESSAGE�FROM�THE�CEO

It has been more than 20 years since we began our journey, but the triple bottom line of improving the environment, social and economic aspects of the areas we operate in is as important to us today as it was when we started Sula. We firmly believe that we are responsible for conserving resources and improving the lives we touch. It is a long held view that businesses need to compromise on sustainability to enable growth, but for us sustainability and growth go hand in hand. For us, its not about balancing sustainability and growth, instead we believe that sustainability is a key driver when it comes to growing our business. We are one of the first Indian companies to consider sustainability as a pillar of our success, and as leaders in this field we will do everything we can to not only be 100% sustainable ourselves, but also encourage other businesses in India to drive towards the same goal.

Rajeev Samant CEO, Sula Vineyards


OUR�APPROACH

Green house gases

Water

Waste

Supply Chain

LEED

Community engagement

Employement Engagement

Human rights

The data used in this report has been validated by all key stakeholders. Sula is committed to ensuring integrity in sustainability claims, and has implemented a sustainability data governance program to drive credibility in sustainability reporting.

UN�SUST

AIN

ABL

E�DEV

ELOPM

ENT�GOALS

Sustainability Data Governance

Sustainability Data Governance

At Sula, we are committed to

growing sustainably, and have set ambitious targets for ourselves. We want to be recognized as the most sustainable winery in Asia by 2021. We have created the Sustainable Sula Initiative to drive us towards our target of being leaders in the field of sustainability, have a positive impact on the environment, and develop a reporting framework which allows us to confidently report our performance.

Our sustainabil i ty program was developed after thoroughly analyzing our footprint on the environment. As part of our program, we have focused on areas which allow us to have the maximum impact in regions we operate in, and the communities whose lives we touch. We correlated these areas with the UNDP goals to ensure our work also aligns with the sustainable vision set by the United Nations. This holistic approach allows us to have a positive impact on the environment while ensuring we play our role in the driving the global sustainability agenda.


Where are you seeing the biggest impacts of global warming?

All our operations are impacted by climate change. We face issues in viticulture due to

a lack of water availability caused by irregular rainfall. Our manufacturing process and supply chain are impacted because wine needs to be stored and transported at cold temperatures, which becomes a challenge with rising temperatures. Global warming and climate change are huge risks for us, and I doubt there is any part of our business which is insulated from hazards.

What are your thoughts on balancing sustainability and growth?

How are you as a winemaker contributing to sustainability?

We are doing our bit by driving operational excellence and educating our teams on the

importance of being sustainable. We have started being more sustainable in our processes and now keep an eye out for any resource going to waste. We recollect water where it's being wasted, have reduced our waste being sent to landfill, and are imp lement ing a hos t o f p ro jec ts a t ou r manufacturing facilities to reduce GHG emissions.

How important is sustainability for Sula?Q.Sustainability is a critical topic for us. It has always been a pillar for us to build on and we

take a lot of pride in running our business responsibly. We care about the planet, the ecosystem we operate in, and the lives we touch. Infact, being an agro based industry it would be perilous for us not to focus on sustainability. Sustainability is and will always be a key issue as we continue to expand our capacity to make wine.

A.

Q.

A.

Q.

A.

What role do you feel does Sula have to play in driving sustainability in India?

We are market leaders, among Indian companies at least, in the way we have

structured our sustainability program. The Sustainable Sula Initiative 2021 is a pioneer among programs at Indian companies, and we believe that by bringing sustainability into the limelight we will be able to motivate other Indian businesses to do the same. The initiative also gives us a great platform to communicate with customers, and by giving consumers more exposure to the topic we hope to create a demand for sustainable products in the country and giving another reason for businesses to follow in our stead.

Q.

I believe that sustainability and growth areinterlinked.Climate change and global

warming are huge risks for us as a business, and being sustainable is a “must do” for us instead of being “good to do” or “nice to do”. Sustainability also helps us reduce operational costs, decreases our environmental footprint, and helps us build a great connection with our employees, surrounding communities, and our customers. We like to say at Sula that we don't balance sustainability and growth, sustainability is an integral part of our growth, and I firmly believe in the same.

A.

A.

Q.

�WITH�KARAN�VASANI�Q�&�A

KARAN�VASANI�SVP & Chief Winemaker


SUSTAINABILITY�VISION�

GovernancePerformanceManagement

Operations Communications Supply Chain

Define data reporting process

Standardize data collection and calculation processes

Enhance data quality and eliminate risks

Define sustainability goals

Measure and track key internal and external kpi’s

Guide outreach strategy with external agencies and develop key relationships

Enhance process efficiency

Identify and implement sustainability projects across manufacturing unit and agro

Drive sustainability culture

Oversee external/ internal communicationson sustainability

Drive public perception

Develop internal training programs

Analyze data to drive optimization and enable efficiencies

Identify major vendors and drive partnership to mitigate upstream and downstream impact

KEY PILLARS


What was your first task after joining as the CSO of Sula Vineyards?

My first steps in the role were to understand processes across Sula's supply chain and

identify focus areas which needed the most attention in terms of sustainability. Once we identified the focus areas we immediately set about the task of baselining our performance from an environmental standpoint, and developed a comprehensive plan to mitigate our impact from those specific activities. The other aspect I focused on was developing relationship with key personnel and getting al ignment with them on the path forward. Sustainability is all about managing change, and it is imperative that everyone involved has bought into the changes to ensure successful implementation of our sustainability program.

WITH�INESH�SINGH�Q�&�A

INESH�SINGHChief Sustainability Officer

Where do you think Sula stands in its sustainability initiatives compared to other wineries?

In the Indian context we are miles ahead ofanyone else. Approx.50% of our energy is

generated from solar, all our water is treated and reused, and 99% of our packaging is recyclable, all of which are incredible stats and cannot be matched by any of our competitors. However, our aim is not to be favorably compared with our competitors across India but across the globe. Our target is to become the most sustainable winery in Asia by 2021, a target we strongly feel is achievable.

What are the key areas you are focusing on for the future?

We as a company want to have a positive impact not only on the planet, but also on the lives of people we impact as a business. We have developed a 2021 vision to be the most sustainable winery in Asia, and our program to achieve this target is called the Sustainable Sula Initiative.

The Sustainable Sula Initiative 2021 is focused on driving positive change across six key themes, which include: reducing carbon emissions, reducing water consumption, el iminat ing waste, engaging communities where we operate, engaging our employees, and championing human rights.

What are some of the most important measures Sula is taking to cause as little damage to the environment as possible?

At Sula we are focused in driving sustainability in activities across our supply chain which

includes viticulture, operations, procurement and logistics. We have a done a lot in the three key areas of emission reductions, reducing water consumption, and eliminating waste being sent to landfill.

I. We harness the power of the sun and use it extensively across our wineries, resorts and vineyards. 49% of our energy was generated by solar in 2018.

II. We have effluent treatment plants at all our sites which enable us to treat and reuse all the wastewater we generate, which equates to approx. 40 million litres.

III. We have also entered innovative partnership for our dry waste, including stationary, which allow us to recycle, reuse and divert waste from being sent to the landfill.

Q.

A.

What can we expect from Sula in the coming years?Q.

Q.

A.

Q.

A.

A.

Q.

A.Our founder and CEO, Mr. Rajeev Samant has always driven a culture of sustainability and has been instrumental in ensuring sustainability is a holistic part of our growth strategy. We are already the most

sustainable winery in India, and are completely focused on achieving the same mantle in Asia by 2021.

We have set ambitious targets for ourselves such as generating 75% of our energy from solar, improving our water use efficiency by 40% and 30% in our wineries and vineyards respectively, sending zero waste to landfill and maximizing use of recycled materials in our packaging. Over the coming years we will be working hard to achieve these targets and hopefully surpass them.


SUSTAINABLE�SULA�INITIATIVE�2021

Baseline (2018)

49%*GHG

Theme Goal

Water In Progress**

100%

In progress**

44%

In progress**

Improve water use efficiency in operations by 40%

100% of wastewater to be reused in wineries and resorts

Improve water use efficiency in viticulture by 30%

Ensure access to WASH for allemployees

Replenish watersheds at high water areas

75% of energy needs met byrenewable power

Waste99%

1%

100% packaging to be recyclable

Ensure zero waste is sent tolandfill at our wineries

SupplyChain

In progress**Drive optimization in supply chain

LEEDIn progress**Achieve LEED O&M certification

in winery operations and resort

Program underdevelopment

Share training materials for responsible drinking

CommunityEngagement

Enable people, women andchildren, living in communities around us to build a better future for themselves

0 loss timeAccidents

Keep people safe by ensuringno more than 1 Loss TimeAccident per 100 employees

Employee Engagement

Programimplemented ***

Prevent use of child labor inour supply chain includingcontract farms

Human Rights

Follow UN Guiding Principleson Business and Human Rights

Qualitative

Baseline (2018)Theme Goal

PEOPLEPLANET

*-Our solar network is integrated with the grid via net metering and we do not own REC’s for the power we generate.**-Data infrastructure is being setup and we will be releasing baselines for these goals soon.***- We have implemented the program by adding a contract clause which prohibits child labour. We will continuously act upon any non-compliances that might exist.

1100 Householdsimpacted


PLANET


Our aim is to generate 75% of our energy through solar power by 2021

of energy used at our manufacturing sites and resorts was generated by solar in 2018.

Powered by the sun:

49%

We decreased our diesel consumption by approx. 10,000 litres annually by installing solar powered pumps at our farms.

Reducing emissions at farms:

10,000 LITRES

Path forward:Over the last few years, we have continuously increased our installed capacity, and currently have infrastructure to generate more than 60% of our energy via solar.

>60%

REDUCE�GREENHOUSE�GAS�EMISSIONS

W i t h i n c r e a s i n g

pollution concerns and depleting fossil fuel reserves, switching to renewable forms of energy is not only a smart solution but also one which is vital to the long term well being of the planet. Installing solar plants drives self-sufficiency in energy needs and allows us to completely mitigate our environmental footprint which would otherwise have been generated because of our energy use.

At Sula, we try to make the best use of what nature has to offer and are always striving to increase solar installations at our sites. Our solar ins ta l la t ions have he lped us decrease our carbon emissions by

almost annually and 2,000 MTallows us to continue our operations in our farms where energy supply from the grid is not consistent.

GHG


GHG�HIGHLIGHTS

Solar water heaters preheat water which is used to clean tanks. This allows us to reduce energy consumption since hot water generators use up a considerable amount of electricity.

Solar Heating

We use skylights at our units which allow us to keep our wineries bright and sunny during the day, eliminating the need for conventional lighting. This reduces our electricity consumption and also puts a dent in our carbon emissions.

Innovative Lighting

We run our chilling plants during the day, allowing our tank and building insulation to keep our wines cool during the night. This allows us to use 100% solar energy for chilling operations, helping us massively reduce our environmental footprint.

Smart Operations

GHG


We reuse water reject from our RO systems which helps us avoid consumption of 150 thousand litres of freshwater annually.

We avoid using a further 550 thousand litres of water by reusing water reject generated by distillation machine.

Reusing�every�drop

Our ambition is to convert all our units to Zero Liquid Discharge facilities to ensure optimal consumption of every drop of water that enters our wineries.

Zero�Liquid�DischargeWater is the most vital and constrained

resource in our value chain. We require water in a host of processes including irrigation at vineyards, tank cleaning in the winery, and hospitality services for guests.

Since most of our operations are situated in the drought prone region of Maharashtra, we are improving our processes and are adopting state of the art technology to reduce our water consumption. We also ensure diligence in our operations to ensure that there is no wastage of water at any of our sites.

IMPROVE�WATER�USE�EFFICIENCY�IN�OPERATIONS

Water

Our target is to reduce water consumption by at least 40% by 2021.


100% REUSE

REUSE�WASTEWATER

Using our Effluent Treatment Plants we were able to recycle approx. 40 million litres of wastewater in 2018, which we used to irrigate green spaces and in auxiliary processes like flushing etc.

This quan�ty will con�nue to increase as we grow our business and expand, thus making it a priority for us to transi�on to a zero liquid discharge business. We look forward to the day we will be able to recycle all our water, and eliminate our water footprint.

Most of our

operations are situated in water stressed areas w h i c h e x p e r i e n c e reccur r ing d roughts . Being stewards of the environment, the team at Sula has decided to not let a single drop go to waste and has installed effluent treatment plants at all sites to ensure our water is recycled and we are able to drive full value for every litre of water we take from the ground.

Our treatment plants have allowed us to recycle all of our wastewater and use it for numerous purposes including i r r igat ion of green areas, flushing in restrooms etc.

In the coming years we will finetune this process even further to recycle the treated water and reuse it in our process, effectively t rans fo rming a l l ou r facilities to Zero Liquid Discharge units.

Not let a singledrop go to waste

Recycle all of ourWastewater

Zero LiquidDischarge units

Water


We have developed artificial ponds and check dams in vineyards to maximize benefits from the rainfall we receive.

Bring�on�the�rain

We have installed drip irrigation in all our vineyards which has helped us reduce water consumption in irrigation by approx. 40% compared to flood irrigation.

Every�drop�matters

We are developing a strong water management strategy at our vineyards, which takes into account soil moisture, evaporation rates, and rainfall, to help us be judicious and scientific in water consumption. This will help us in achieving the targeted 30% improvement in water use efficiency.

Data�driven�water�management

Growing grapes is a water intensive

process, especially in tropical and sub-tropical regions. In addition to using rainwater, our vineyards are designed for irrigation capacity of 450 litres of 450 litres of water/kg of grape produced for white grapes and 550 litres of water/kg of grape produced for red grapes. This greatly contributes to our environmental footprint.

In addition to cultivating a water intensive crop we also face water losses via evaporation and leakages in pipes, and the cumulative impact of all these factors makes water use efficiency in viticulture operations a priority for Sula.

We are in process of installing measurement infrastructure at our farms which will help us calculate the exact baseline, but we have already started implementing conservation measures with the ultimate goal of reducing water use in vineyards by

30%

IMPROVE�WATER�USE�EFFICIENCY�IN�VITICULTURE

Water


WASH stands for Access to Safe Water and Hygiene. At Sula we put our employees first and providing a safe and hygienic work environment for them is high on our list. We have not, and will not compromise on the wo rk i ng cond i t i ons t ha t ou r employees are exposed to.

We have a system in place to constantly check drinking water quality,

sanitary conditions and hygiene at our premises. We have also adopted the WBCSD tool to assess WASH conformance and identify areas of improvement. In our first year of assessment we had a conformance score of 44%, which is at par with other leading organizations in the world. We are in conformance with all critical aspects of the survey but there is always scope to improve, and at Sula we want to be the best.

PROVIDE�ACCESS�TO�SAFE�WATER�AND�HYGIENE

Over the next few years we will be working hard to improve our score and are aiming to be 100% compliant by 2021.

Educating personnelWe regularly hold sessions with our workers to educate and inform our plant personnel about the need for sanitation and hygiene in the workplace.

We ensure adherence to all relevant industrial standards including ISO to ensure gold standard of hygiene at our facilities.

It is our commitment to deliver a quality product, and our commitment to ensuring Access to Safe Water and Hygiene helps us ensure we deliver on the industry leading standards that we have set for ourself.

Best in class

Water


REPLENISH�WATERSHEDS

We are in process of building more infrastructure, such as recharge bores, which will allow us to increase our contribution towards replenishing watersheds.

Another goal that we have to ensure water security

for our stakeholders is to replenish as much water as we can. We want to be a water positive company for the ecosystem, and that means we will have to give back at least as much water as we consume in our processes.

We have installed rainwater harvesting infrastructure at all our sites to collect run off water from rainfall and use it to replenish our water sources. Our efforts at vineyards have included construction of check dams so we can maximize use of rainfall in irrigation.

We also help maintain local ponds so we can enable replenishment of groundwater through water percolation. This helps us provide water security to the communities who live in these regions. Infrastructure development

Water


We collect RO reject from our water purification systems and use it in activities like floor cleaning or dishwashing. This allows us to reduce the need for freshwater as we are able to reuse approx. 15,000 litres of of water per day across all our sites.

Reuse and Recycle

Through operational excellence we drive collection of every single drop of water which would otherwise have gone to waste. A great example of this is the collection of water before our Clean In Place (CIP) process. The hot water network at plants typically releases about 300 liter of cold water from the piping before the hot water starts flowing. We have started storing this water and reusing in our processes which has led to a reduction in freshwater consumption by 3,000-4,000 litres per day.

Operational Excellence

We are in process of establishing treatment and filtration plants to further clarify treated water from our Effluent Treatment Plants. This will help us reuse the treated water in our processes instead of subsidiary activities like irrigation and greatly reduce the amount of freshwater being used at our plants (by approx. 45,000 litres per day).

Process Improvement

WATER�HIGHLIGHTS

Water


Iam

Recycla

ble RECYCLABLE�PACKAGING

Innovative Materials

The capsules of our wine bottles which were earlier made from aluminium foil are now made using ecofriendly materials, helping us drive recyclability.

Lighter BottlesWe have decreased the weight of our bottles by 15-20 grams. Light weight bottles are environmental wins since lighter bottles are easily recyclable and consume less resources in production.

99% OF OUR

PACKAGINGIS RECYCLABLE

Waste

The world is dealing with a serious

waste problem. Too much consumption and too little recycling has resulted in our green spaces, water bodies, and urban environment being seriously polluted.

In order to do our bit to eliminate this problem, we have decided to use only recyclable packaging for all our products. We want to enable our consumers to recycle our bottles and packaging material, and our commitment to doing so is evident from the fact that Sula vineyards is one of the market leaders in using recyclable packaging.

99% of packaging materials we currently use are recyclable. This incredible statistic totals to approx.

5,000 Tons of recyclable

material, which can be reused in multiple forms.

We have been able to achieve such progress because of constant innovation, smart decision making, and a solid intent to reduce our footprint on the environment.


We want to contribute to a cleaner environment,

and our steps towards sending zero waste to landfill will be a key contributor as we achieve that goal.

Operating hospitality units, wineries, and vineyards comes with its fair share of challenges in managing waste. However, we have met that challenge with proactive measures and are able to completely mitigate any waste being sent to landfill.

We segregate waste generated in our operations to drive reuse and eliminate any disposal. We compost our food waste, and try to recycle all our dry waste. Our measures

have resulted in only of our waste from wineries 1.1%being disposed in landfill.

At Sula we believe in perfection, and we will aim to achieve ZERO waste to landfill by 2021.

Our focus on composting has yielded really beneficial results, providing us fresh manure for our farms and gardens.We will continue to innovate and t ry to implement technologies such as biogas units to further reduce our footprint.

Natural Technologies

Positive Partnerships

In order to minimize our waste footprint, we have decided to partner with an organization named “Pepaa”. This organization collects our stationary waste, recycles it, and gives us stationary in return. This allows us to divert approx. 2 tons of paper per month from the landfill and also reduces the use of virgin paper in our offices.

SEND�ZERO�WASTE�TO�LANDFILL

PlasticOrganic Paper Glass

Waste


ORGANIC�CAMPUS�

We have gone completely organic at our Nashik site. We have replaced all chemicals which previously included floor cleaners, pesticides, insecticides, and fertilisers with organic or natural replacements guaranteeing a chemical free environment for our employees and guests.

We complement our vineyards with indigenous flower and grass species which have natural insecticidal properties and enhance pollination by attracting useful insects. Having natural predators contributes to improving the health of vineyards, and helps us reduce use of insecticides and pesticides. We also use products like sticky pads and pheromone traps to attract unwanted insects by manipulating their sense of smell, sound and sight. These traps allow us to eradicate harmful insects selectively, again helping us reduce use of harmful chemicals.

We allow sheep to graze on our vineyards, which greatly helps in controlling weeds at our farms. This helps us reduce use of weedicides, which are the most harmful chemicals used on farms. The process results in a well-fed flock for the shepherd, and a clean vineyard for Sula. It’s a WIN-WIN for everyone involved.

100%Organic Campus

IntegratedPest Management

Natural Weedicide

Waste


We understand the impact

our supply chain can have on the environment, so sourcing and disposing raw materials are key focus areas for us. At Sula, we focus on being environmentally and ethically conscious in both the cases.

Choosing the right bottling/packaging material has a lot more to do than just catering to the aesthetic value. The packaging material will persist in the environment long after the product within has been consumed. So we make sure to use materials which have minimum or no negative impact on the environment.

We have worked extensively in optimizing packaging material to minimize our footprint, and look forward to further reducing it by dr iv ing par tnersh ips w i th our upstream and downstream partners.

Bottle Innovation: Lighter bottles need less energy for cooling, and have a smaller lifecycle footprint. Most of our wines are packaged in glass bottles bottles and we have made great progress in reducing bottles weights across the board to reduce emissions. We have reduced the weight of our sparkling bottles by 285 grams. We have reduced the weight of all our 750 ml bottles from 460 grams to 435 grams.

Packaging Innovation: We have started using “Polynature” capsules for some of our premium wine varieties. Polynature is a biocompatible and vegetable oil based polymer which degrades post disposal and is much more environment friendly than the aluminium capsules we used in the past.

845 gms 560 gms

Operational Excellence: We think of reducing emissions holistically and have driven further reduction by being smart in our use of chilling plants at finished goods stores at our units. We use our plants in the day when they are powered by solar and depend on building insulation to keep our wine cool during the night.

PolynatureAluminiumFoils

460 gms 435 gms

SUPPLY�CHAIN

SUPPLY CHAIN


PEOPLE


As India’s leading wine producer, it is our responsibility to educate consumers

about responsible drinking.

Being part of the wine business, all our employees are ambassadors and role models for responsible drinking. We realize problems associated with alcoholism, and thus put in efforts to educate employees on responsible consumption of alcohol. To this effect, we have conducted sessions on hazards of excessive drinking at our sites.

As a winemaking company, it is our responsibility to keep critical checks on the wellbeing of our employees and their family members. We encourage our employees and their families to reach out to us in case they find potential alcohol abuse cases around them.

Don’t drink and drive Can you legally drink? Outreach programs

We encourage the use of public transport for our guests while commuting to our winery and resorts. We promote the use of cab services to

drop guests safely off to their respective places after they have savoured our wines to

prevent drinking and driving.

We make sure that we only serve alcohol to customers who are above the legal drinking

age at our resorts and tasting room.

We will initiate outreach programs in 2019 to expand the audience for our responsible

drinking programs, and awareness in consumers across the country.

RESPONSIBLE�DRINKING

COMMUNITY ENGAGEMENT


As a company, we want to have

a positive impact on the lives that we touch, be that employees, consumers or the communities we operate in. We have always had a strong interest in developing the communities around our areas of operation.

We have always been vested in the development of people, especially women and children, in the communities close to our manufacturing sites and vineyards.

We have initiated a host of measures including infrastructure projects and educational programs which have driven inc lus ion and deve lopment among communities near us.

Sula wil l continue support ing these communities and will actively engage with them in the future to ensure progress.

Location

Project

Impact

Savargaon Govardhan Chekkerre Jaluka Wani Antarveli

Installed underground drainage System Developed park & green gym

Pond desilting to increase water holding capacity

Installed RO plant to provide drinking water

Developed park & green gym

Installed LED lamps on street lights

Installed RO plant at the local school to provide drinking water

Pond desilting to increase water holding capacity

Developed local school by upgrading infrastructure

Developed access road to increase accessability

180 households 350 households 160 households 100 households 350 households

CORPORATE�SOCIAL�RESPONSIBILITY

COMMUNITY ENGAGEMENT


We go the extra mile in providing our employees with a safe working environment, so we can all focus on the one thing that matter most. Making good quality wine.

We conduct first aid trainings at sites: It is essential that our workers are aware of the “dos” and “don'ts” and are well trained to manage any mishap.

Every year, we celebrate “National Safety week” in the month of March where we revise all our safety norms. During this time we engage our employees in fun activities such as drama competitions and safety quizzes to drive the message in an engaging manner. All our workers are given time off to ensure 100% participation.

All our workers are well trained at firefighting and are provided with safety gears while working at our production units. We collect constant feedback, and upgrade processes and equipment as per worker needs.

We conduct regular internal and external safety audits to maintain necessary safety standards . We also constantly identify improvements so can proactively manage risks.

All standard operating procedures and safety norms at the winery are translated in regional languages for the convenience of our workers.

Health check-ups are held by visiting doctors at our wineries, and we have made it a mandatory requirement for employees to attend. We have seen a improvement in the general health of our employees, and have committed ourselves to enabling further improvement for the betterment of our workforce.

EMPLOYEE�ENGAGEMENT

Aअ

We conduct tests to analyse air quality for particulate emissions and abide by the National Ambient Air Quality standards. Soil, noise and illumination tests are also conducted regularly to ensure a comfortable and productive workplace for employees.

We regularly conduct alcohol tests for our employees to prevent alcohol abuse, and any incidents that might arise from the same.

Sula makes more than a million cases of wine. These million cases are made possible by our production teams, which dedicatedly works to ensure on time delivery of quality wine. Our aim as a company is keep our production team safe and secure via educational programs, process improvements, and use of safety equipment.

EMPLOYMENT ENGAGEMENT


Being India’s leading wine producer,

we procure grapes from around 2,000 acres of vineyards managed by independent growers.

Child labour is a problem which has historically plagued the agriculture sector in India. Child labour, although categorically wrong, has been historically used as a cheaper workforce by farmers in India.

At Sula, we have zero tolerance for employing underage labour in the vineyards where we procure our grapes from, and we have taken multiple steps to tackle and eliminate this menace from our supply chain.

We offer our farmers competitive prices for their produce, which in turn helps them generate profits and eliminate any economic drivers for hiring underage labour.

We constantly educate and sensitise our farmers on the issue to ensure compliance with all national laws regarding labour, and drive a better future for children forced into the practice.

We have made it clear to all parties concerned that Sula will not tolerate the practice of child labour, and will not buy any produce from anyone participating in the same.

बाल �म (��तबंध आ�ण �नयमन) कायदा, १९८६ �या नसार २०१६ ("सीएलपीआर कायदा") म�ये सधा�रत केले�या "बाल" ची �या�या १४ वषा�खाल�ल कोणाह� ु ु

�य�ती �हणन केल� गेल� आहे आ�ण सीएलपीआर कायदानसार अ�या कोण�याह� १४ वषा�खाल�ल कोणाह� �य�तीला कषी उ�योगात देखील कामगार �हणन नोकर�वर ठेव�यास ू ु ृ ू

बंद� आहे. �याच�माणे १४ वषा�खाल�ल कोणाह� �य�तीला कोण�याह� कामासाठ� नोकर� देणे हा एक दखलपा� ग�हा आहे. आ�ह� 'सला' येथे १८ वष � वयाखाल�ल कामगारांना ु ु

ंकामावर घेत नाह� �कवा �ो�सा�हत करत नाह� तसेच आ�ह� बाल�मांचा उपयोग करणा�या �ा�ं उ�पादक शतेकया�कडन कोण�याह� �कारची �ा�े �वीकारणार नाह�.ू

Stringent clauses in contracts

As per the Child Labour (Prohibition and Regulation) Act, 1986, amended in 2016 ("CLPR Act"), a "Child" is defined as any person below the age of 14, and the CLPR Act prohibits employment of a Child in any employment including as labour in agriculture industry. It is a cognizable criminal offence to employ a Child for any work. We at SULA do not employ or promote workers below 18 years of age. We will not procure grapes from farmers employing child labour in the vineyards.

PREVENT�USE�OF�CHILD�LABOUR

HUMAN RIGHTS


As an enterprise our

responsibility includes ensuring access to business and human rights for all our employees. We touch a lot of lives, and it is our responsibility to ensure business and human rights are respected as we conduct our business. We take pride in the fact that we are an Equal Opportunity Employer, and ensure zero discrimination during hiring or at our workplaces.

Healthy work environment: We use organic and natural products at our offices to provide our employees with a chemical free work environment.

Employee health: We provide regular health checkups for our employees to drive employee health.

POSH (Prevention of Sexual harassment) Committee: We have zero tolerance towards sexual harassment, and have a specially appointed panel to look into any complaints across our value chain.

Vigilance mechanism: At Sula, reporting issues related to unethical or non-compliant practices is convenient and highly encouraged.

Road safety policies: We promote safety on and off campus. We encourage our employees to use safety gear while driving. We engage employees who fail to do so to ensure implementation.

Women at workplace: Sula encourages women hiring to encourage gender diversity. Some of our offices have an equal men to women employee ratio.

Maternity policies: We not only abide by the Maternity Benefit Act 2017 and the norms enlisted to safeguard the rights of a working mother or mother to be, but go above and beyond to ensure support to women employees.

Farmer well-being: Our contracts with farmers have ensured price stability and insulated them from the volatility of the agro market in India.

BUSINESS�AND�HUMAN�RIGHTS

HUMAN RIGHTS


OutcomesSr.No. Objective Why do we need it?

1

2

3

4

5

Drive Accountability

Establish a clear tone at the top for the broad range of corporate and business unit stakeholders.Align norms with expectations expected by external reporting and legal stakeholders.

Clarify and create awareness about the expectations across the full information life-cycle.

Deliver trusted information

Enable performance management

Enable stakeholder communication

Support future needs

Ensure consistent enterprise-wide requirements for measurements and estimations, acceptable source documentation, risk-based key controls, data security & access standard.

Cascade performance management capabilities.Enable business intelligence methods.

Provide disclosure guidance.Clearly define the certification process.Make certified information readily accessible.

Enable scalability and flexibility through architecture management.Reduce risk and inefficiency of organizational changes.Eliminate redundancy in governance documents.Enable third-party assurance in the future.

Create trust and confidence in sustainability information with both internal and external stakeholders.

Deliver inputs for enterprise level performance dashboards.

Deliver inputs for enterprise level performance dashboards.

Produce efficient, accurate and consistent external communication across multiple channels (e.g. GRI, CSR,CDP reports).

APPENDIX�A:�DATA�GOVERNANCE�OBJECTIVES&�OUTCOMES


1

2

3

4

Data collection

A. Data must come from valid sources, and supporting documentation should be

retained.

B. Measurement equipment should calibrated and accurate.

C. Data should be collected at maintained in a timely manner.

Analysis

A. Calculation methodology should be consistent across all sites.

B. Any conversions should be made consistently, and documented for reference.

C. Any estimations should be documented and used consistently.

ValidationA. Data should be validated for errors (consistency, accuracy, timeliness etc.).

B. Data should be traceable.

Reporting

A. Consolidation processes should be reviewed annually to ensure all relevant

sources are being captured.

B. Sufficient evidence should be retained to demonstrate that validation occurred.

APPENDIX�B:�REPORTING�PRINCIPLES

Risk Controls

1

2

3

4

5

Transcription errors from meter readings or utilityinvoices into daily data logs.

Check variances and proactively catch any data entry errors.

Meters not properly calibrated. Perform annual calibration of meters.

Transcription error from daily data log to excel. Check variances and proactively catch any data entry errors.

Training of personnel for data collection. Training sessions for employees.

Error in calculations by site/no guidance/or access togovernance documentation.

Standardize and share calculation methodologies.


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