The governance dimension of ESG encompasses the policies, procedures, and practices that we have established to make decisions and manage our operations. It includes our board of directors, management team, and other stakeholders, as well as our internal controls and risk management processes.
Every adversity contains within it seeds of advantages. While we remain watchful and prepared for risks, we try to see every challenge as an opportunity to create value. We also consistently scan the business environment to prospect for opportunities and leverage them for growth.
We have a robust Enterprise Risk Management (ERM) framework that enables us to mitigate risk and achieve better growth. At Arvind, we see in every challenge a new opportunity to innovate, and drive growth and value. As per recommendations of TCFD, we have integrated our Climate-related Risk management into our existing ERM framework. We are continuously scanning and monitoring the various risks faced by our business, and seeking out the opportunities that we can harness for sustained growth despite the risks.
We are proactive in identifying and managing risks, both known and emerging. We concentrate on improving our knowledge of emerging risks that could negatively impact our business. Together with the Executive Management, the cross-functional team undertakes thorough horizon scanning to identify and evaluate new threats and possibilities as well as how to respond to them.
We recognize the importance of fostering a risk culture within the organization, and to achieve this, we have implemented several measures and steps. Some of them are creating business division risk team, having a risk champion, regular communication, etc.
For more details about refer to our Risk Management Report
At Arvind, we are committed to leading the charge towards a sustainable future. Our Climate Transition Plan aligns our operations with the Paris Agreement, driving innovation and efficiency to reduce emissions. Through bold actions and strategic partnerships, Arvind is setting committed towards its Climate goals. For more details refer to our Climate Transition Plan
Our CEO compensation and performance approach is designed to reward the CEO for delivering the results that matter to the company and its shareholders. It is rigorously evaluated through a set of Key Result Areas (KRAs) that encompass both quantitative and qualitative measurements. These KRA’s are tied to financial returns, climate-related performance and business specific KRA. Click here to view the CEO Compensation approach.
Arvind's IT operates in close collaboration with the core business objectives to drive organizational success. IT plays a pivotal role in fostering synergies and creating value through the innovative application of technology.
Arvind's IT has established deep-rooted connections within each of our businesses, empowering them to harness cutting-edge technology for the enhancement of operational outcomes. IT has been the cornerstone of our Group's growth trajectory, continually injecting innovation and transformative elements into the ever-evolving landscape of business platforms and Digital Business Ecosystems.
At the forefront of the Group's digital transformation journey, Arvind's IT leads the charge in developing Business and Technology platforms across critical domains such as Customer Experience, Employee Experience, Logistics, Procurement, Energy Management, and more. Its unwavering commitment is to generate tangible business value, serving as the guiding principle for all its projects and activities.
The Board has delegated the responsibility of providing structured and systematic oversight of the Cybersecurity Governance Process to the Risk Management Committee. At the Management level, the Chief Information Officer (CIO) is responsible for overseeing Cyber Security for Arvind Limited. The current CIO is Mr. Nitin Parmar
We pledge to uphold the highest standards of data privacy and protection. Arvind's IT Security system is dedicated to ensuring the resilience of our systems against evolving cybersecurity threats. We will continuously invest in advanced security technologies and methodologies to fortify our digital defences. We believe that education and awareness are vital in the fight against cyber threats. Our commitment extends to empowering users with knowledge and resources to maintain a secure online presence.
Furthermore, the Arvind's IT function plays a pivotal role in cultivating strategic partnerships with the IT industry, professional organizations, and business entities. It actively promotes external innovation through an Accelerator program that encourages startups to collaborate with the Arvind Group, particularly in the realm of technology.
We are conscious of our environmental impact and will strive to reduce it through responsible IT management practices. Our efforts will include energy-efficient infrastructure and responsible e-waste disposal.
We are committed to our philosophy of being ‘Fundamentally Right’ and we expect our suppliers to uphold the same values. Our Supplier Code of Conduct sets forth the basic requirements that we ask our Suppliers to respect and adhere to when conducting business with Arvind. This code embodies our commitment to international recognised standards and guidelines. Click here to view the Supplier Code of Conduct
Arvind’s supply chain engagement strategy is built on collaboration, innovation, and sustainability. By working closely with our suppliers, we are driving transformative practices that reduce emissions and enhance resource efficiency across our value chain. We have established a supplier screening and assessment process. Based on this, the results of our screening assessment is given below:
|
Supplier Screening |
FY 2023-24 |
|---|---|
|
Total number of Tier-1 suppliers |
8723 |
|
Total number of significant suppliers in Tier-1 |
100 |
|
% of total spend on significant suppliers in Tier-1 |
82 |
|
Total number of significant suppliers in non-Tier-1 |
0 |
Click here to read more details of our Supplier Sustainability Program.
Arvind’s robust ESG ratings showcase our commitment to sustainability, ethical governance, and social responsibility. These ratings highlight our dedication to creating long-term value while driving positive environmental and social impact. The various reporting and disclosures that we are part of are listed below:
Arvind's participation in the Corporate Sustainability Assessment (DJSI) underscores our commitment to transparency and disclosure. Our strong performance reflects a deep commitment to integrating environmental, social, and governance principles across all operations for long-term value creation.
Arvind's CDP responses reflect our unwavering commitment to transparency and climate action. By disclosing comprehensive data on our emissions, energy use, and sustainability initiatives, we ensure accountability and align our efforts with global climate goals. Our Score in CDP for Climate Change 2023 was B and in Water Security was A-
For our CDP past year response please click here.
Arvind’s commitment to the UN Global Compact (UNGC) principles is at the core of our sustainability journey. Through our active participation, we uphold the tenets of human rights, labor, environment, and anti-corruption, embedding them across our operations. Our UNGC responses highlight our dedication to responsible business practices, transparency, and global collaboration. By aligning with these principles, we drive meaningful change, contributing to a sustainable and equitable future for all. Click here to see more details.
At Arvind Limited, we’re not just talking about sustainability—we’re actively working towards it. By being a member of various trade associations working towards advancing sustainability in the textile and apparel industry, we’re aligned with our sustainability goals including climate and water goals. Some of the institutions that we are part of are:
With a contribution of INR 2,762,712.15 in FY 23-24 as membership fees, Arvind Limited is proud to be part of the SAC. Through the Higg Index, we’re helping drive transparency and sustainability across the fashion industry, making smarter choices for people and the planet.
As membership fees we paid, INR 1,004,622.60 in the ZDHC initiative in FY 23-24 to support their efforts in eliminating hazardous chemicals from the global supply chain. Together, we’re working towards responsible production, ensuring safer practices, and protecting precious water resources.
Arvind Limited contributed INR 251,155.65 as membership fees to the Textile Exchange in FY 23-24, backing their mission to promote preferred fibers and sustainable practices. We’re embracing innovation to reduce our carbon footprint and lead the way toward a more ethical, sustainable fashion industry.