Balrampur Chini Mills Limited has formally submitted its ESG Report for the Financial Year 2025 to the stock exchanges. The report highlights the company’s strategic focus on ‘Stretch and Futurability’, emphasizing a transition from compliance to leadership. Key achievements include significant reductions in water consumption and GHG emissions, alongside progress on the transformative PLA manufacturing venture (BioYug), positioning the company for long-term, sustainable growth.
Strategic Narrative: Stretch and Futurability
The ESG Report for FY 2025 anchors Balrampur’s strategic narrative around ‘Stretch and Futurability’, defining corporate endurance not just by presence, but by ‘doing the right things in the right way’. Sustainability is framed as a strategic clarity that drives capital allocation and risk management, moving success from short-term extraction to long-term relevance. Innovation, rooted in sustainability, is expressed through tangible brand statements like circular economy models and low-carbon products.
Ten Non-Negotiable Priorities
The company’s corporate personality is defined by ten non-negotiable strategic priorities, emphasizing long-term thinking, treating sustainability as strategy, resource circularity, and preparing for the future world. These principles aim to ensure the business is Responsible, Sustainable, and Profitable in a way that can endure.
Environment Highlights and LCA Insights
Environmental stewardship focused on achieving carbon neutrality by 2047 and net zero by 2055. Key performance indicators for FY25 include:
- 99.03% energy sourced from renewable sources.
- 1,13,450 trees planted.
- 16% reduction in Scope 1 & 2 emissions.
- 14.17% reduction in water withdrawal and 45.32% reduction in water consumed.
A detailed Life Cycle Assessment (LCA) for sugar and ethanol revealed that sugarcane production yields net negative emissions, reinforcing the circular economy model.
PLA Venture: BioYug – The Future of Materials
The PLA manufacturing project (BioYug) is positioned as a graduation for Balrampur, shifting it from an agri-industrial leader to a global materials company. The ₹2,850 crore greenfield plant, expected to be operational by Q4 2026 with an 80,000 TPA capacity, is designed to operate on 100% renewable power. This venture addresses plastic pollution by replacing fossil-based plastics with bio-compostable alternatives, enhancing earnings quality and portfolio resilience.
Social and Governance Performance
Social performance emphasizes a ‘people first’ approach, with a permanent workforce of 6,020 employees and 83.60% of cane sourced from local farmers. The company achieved zero human rights-related cases filed in the past three financial years and is certified for ISO 45001.
Governance remains strong with the Board comprising 57% Non-Executive Directors and 43% Women Directors. The company upgraded its MSCI ESG rating from BBB to A, reflecting advanced sustainability leadership. A defined percentage of the CMD, ED, and WTD’s compensation is linked to ESG KPIs, ensuring executive alignment with sustainability objectives.
Source: BSE
