Aditya Birla Group

Overall approach

7/12
- Overarching commitment on deforestation
  
  3/4
  
  Zero deforestation/Deforestation-free commitment or, for timber, pulp & paper companies only, commitment to well implemented harvest and no deforestation of HCV & HCS areas
  
  3/4
  
  "The Group shall implement its best efforts to avoid trading and sourcing wood or wood fibre (herein referred to as wood) from the following categories: a. Illegally harvested wood; b. Wood harvested in violation of traditional and civil rights; c. Wood derived from uncertified High Conservation Value Forest1 (a Forest Stewardship Council designation); d. Wood harvested from plantations established after 1994 through conversion of natural forests or converted to non-forest use1; e. Wood from forests in which genetically modified trees are planted; f. Wood harvested in ancient and endangered forests, or endangered species habitat."
  
  Open source document
- Signatory to an initiative tackling deforestation
  
  1/1
  
  Yes
  
  1/1
  
  "The ABG Sustainable Business Framework has been assured by an internationally renowned independent third party to ensure that it conforms to the various international standards that are incorporated into it. These include:" [...] "; United Nations Global Compact (UNGC)"; "As a member of the Sustainable Apparel Coalition (SAC), a global consortium of more than 200 brands, Birla Cellulose is using the Higgs Index Tool to monitor their manufacturing units performance on environment and social scales." Under the WBCSD Forest Sector roadmap, Aditya Birla Group is acknowledged as a member of the Forest Solutions Group.
  
  Open source document
- Awareness of the value of forests
  
  1/1
  
  Yes
  
  1/1
  
  "Given the industries we operate in, we recognise that protecting the world’s forests is not just good for the planet, but critical for our businesses if we want them to thrive and remain operational."
  
  Open source document
- Deforestation as a business risk
  
  1/1
  
  Yes
  
  1/1
  
  Does the company recognise the risk as financial, operational, competition, reputational, or other? Please detail.: They recognise it largely as a financial and operational risk
  
  "Given the industries we operate in, we recognise that protecting the world’s forests is not just good for the planet, but critical for our businesses if we want them to thrive and remain operational."[...] " By working in such a way, the business is working to secure its supply chain and access to the raw materials recognising that a sustainable and long-term approach goes hand in hand with the business’ growth strategy"
  
  Open source document
- High-level management of deforestion
  
  1/1
  
  Yes
  
  1/1
  
  Which commodities does it apply to?: Pulp & Paper
  
  How often does the committee or board meet to assess company's progress on addressing deforestation-related issues?: Quarterly
  
  "Group Apex Sustainability Committee. [...] The Committee meets quarterly. Its members include: Chief Executive, Chief Financial, Chief Human Resources and Chief Sustainability Officers from the Group, appointed by the Chairman. It provides advice and guidance on implementing the Group’s policies and standards for which it has oversight and studies the major trends likely to impact our businesses. It reports back to the Chairman and Business Review Councils on company performance and ensures that sustainability risks are being assessed, controlled and managed effectively."
  
  Open source document
- Executive compensation linked to deforestation
- Target to reduce emissions from land-use change
  
  0/2
- Reporting on emissions from land-use change
  
  0/2
- Disclosure of conservation activity
- Disclosure of reforestation activity
- Target to reduce emissions in scope 1/2
Commodity score

46/88
- Pulp & Paper
  
  46/88
  - Commitment Strength
    
    18/20
    - Commitment to protect priority forests
      
      6/8
      - Commitment details
        Zero-gross deforestation
        
        4/6
        
        Commitment to protect priority forests
        
        Zero-gross deforestation
        
        4/6
        
        Which certification schemes are used?: FSC; PEFC; Other certification
        
        Other certification scheme: Sustainable Forestry Initiative (SFI)
        
        "The Group shall implement its best efforts to avoid trading and sourcing wood or wood fibre (herein referred to as wood) from the following categories: a. Illegally harvested wood; b. Wood harvested in violation of traditional and civil rights; c. Wood derived from uncertified High Conservation Value Forest1 (a Forest Stewardship Council designation); d. Wood harvested from plantations established after 1994 through conversion of natural forests or converted to non-forest use1; e. Wood from forests in which genetically modified trees are planted; f. Wood harvested in ancient and endangered forests, or endangered species habitat."; "Secondly, by engaging with experts from Canopy, an organisation dedicated to protecting the world’s forests, species and climate, we are working with forest owners to create chains of custody and to certify the forest management practices to the standards set by the Forestry Stewardship Council (FSC), Sustainable Forestry Initiative (SFI) and Programme for the Endorsement of Forest Certification (PEFC)."
        
        Open source document
        Open source document
      - Commitment applies to all regions, suppliers and operation
        Yes
        
        1.3/1.3
        
        Commitment applies to all regions, suppliers and operation
        
        Yes
        
        1.3/1.3
        
        "In order to better manage our full fibre value chain we have developed a Wood Fibre Sourcing Policy. This mandates our businesses to implement best efforts to avoid trading and sourcing wood or wood fibre from ancient and endangered forests, endangered species habitats, uncertified high conservation value forests and wood which has been harvested in violation of traditional and civil rights"[...] "Secondly, by engaging with experts from Canopy, an organisation dedicated to protecting the world’s forests, species and climate, we are working with forest owners to create chains of custody and to certify the forest management practices to the standards set by the Forestry Stewardship Council (FSC), Sustainable Forestry Initiative (SFI) and Programme for the Endorsement of Forest Certification (PEFC)."
        
        Open source document
      - Target date
        Current/achieved
        
        0.7/0.7
        
        Target date
        
        Current/achieved
        
        0.7/0.7
        
        "In order to better manage our full fibre value chain we have developed a Wood Fibre Sourcing Policy. This mandates our businesses to implement best efforts to avoid trading and sourcing wood or wood fibre from ancient and endangered forests, endangered species habitats, uncertified high conservation value forests and wood which has been harvested in violation of traditional and civil rights"[...] "Secondly, by engaging with experts from Canopy, an organisation dedicated to protecting the world’s forests, species and climate, we are working with forest owners to create chains of custody and to certify the forest management practices to the standards set by the Forestry Stewardship Council (FSC), Sustainable Forestry Initiative (SFI) and Programme for the Endorsement of Forest Certification (PEFC)."
        
        Open source document
      - Interim target date
        No
        
        0/0.3
    - Commitment to reduce use of virgin wood fibre
      
      5/5
      - Commitment details
        Yes
        
        3/3
        
        Commitment to reduce use of virgin wood fibre
        
        Yes
        
        3/3
        
        Type of commitment: Recycled content; Use of alternative fibres
        
        "We have also prioritised the development of alternate raw materials, such as pre- and postconsumer waste and agri-waste to reduce our reliance on virgin wood." [...] "Our current efforts are focussed on developing products made with industrial, post-consumer and alternate feed-stock and increase the use of alternate feedstock in our total production and reduce the cost of production of the next generation solutions, so that in long term we can reduce the dependence on virgin wood based pulp." [...] "At the same time, we have also worked upon developing fibres with alternate raw material sources that would ease the burden of virgin wood requirement."
        
        Open source document
      - Commitment applies to all regions, suppliers and operation
        Yes
        
        1.3/1.3
        
        Commitment applies to all regions, suppliers and operation
        
        Yes
        
        1.3/1.3
        
        "We have also prioritised the development of alternate raw materials, such as pre- and postconsumer waste and agri-waste to reduce our reliance on virgin wood." [...] "Our current efforts are focussed on developing products made with industrial, post-consumer and alternate feed-stock and increase the use of alternate feedstock in our total production and reduce the cost of production of the next generation solutions, so that in long term we can reduce the dependence on virgin wood based pulp." [...] "At the same time, we have also worked upon developing fibres with alternate raw material sources that would ease the burden of virgin wood requirement."
        
        Open source document
      - Target date
        Current/achieved
        
        0.7/0.7
        
        Target date
        
        Current/achieved
        
        0.7/0.7
        
        "We have also prioritised the development of alternate raw materials, such as pre- and postconsumer waste and agri-waste to reduce our reliance on virgin wood." [...] "Our current efforts are focussed on developing products made with industrial, post-consumer and alternate feed-stock and increase the use of alternate feedstock in our total production and reduce the cost of production of the next generation solutions, so that in long term we can reduce the dependence on virgin wood based pulp." [...] "At the same time, we have also worked upon developing fibres with alternate raw material sources that would ease the burden of virgin wood requirement."
        
        Open source document
      - Interim target date
        NA (target date current or achieved or 2022)
        
        0.3/0.3
        
        Interim target date
        
        NA (target date current or achieved or 2022)
        
        0.3/0.3
        
        "We have also prioritised the development of alternate raw materials, such as pre- and postconsumer waste and agri-waste to reduce our reliance on virgin wood." [...] "Our current efforts are focussed on developing products made with industrial, post-consumer and alternate feed-stock and increase the use of alternate feedstock in our total production and reduce the cost of production of the next generation solutions, so that in long term we can reduce the dependence on virgin wood based pulp." [...] "At the same time, we have also worked upon developing fibres with alternate raw material sources that would ease the burden of virgin wood requirement."
        
        Open source document
    - Commitment to a traceable supply chain
      
      6/6
      - Commitment details
        Traces to Point of production
        
        4/4
        
        Commitment to a traceable supply chain
        
        Traces to Point of production
        
        4/4
        
        Target: "Visibility from forest-to-fashion by 2021" In 2020 there was "100% visibility from forest-to-retail"
        
        Open source document
      - Commitment applies to all regions, suppliers and operation
        Yes
        
        1.3/1.3
        
        Commitment applies to all regions, suppliers and operation
        
        Yes
        
        1.3/1.3
        
        "Visibility from forest-to-fashion by 2021"
        
        Open source document
      - Target date
        Current/achieved
        
        0.7/0.7
        
        Target date
        
        Current/achieved
        
        0.7/0.7
        
        "Visibility from forest-to-fashion by 2021"
        
        Open source document
      - Interim target date
        NA (target date current or achieved or 2022)
        
        0.3/0.3
        
        Interim target date
        
        NA (target date current or achieved or 2022)
        
        0.3/0.3
        
        "Visibility from forest-to-fashion by 2021"
        
        Open source document
  - Social Considerations
    
    6/18
    - Labour rights in the supply chain
      Yes
      
      4/4
      
      Labour rights in the supply chain
      
      Yes
      
      4/4
      
      Details of commitment: ILO; Discrimination; Forced labour; Child labour; Freedom of association
      
      "The Group Companies are committed to respecting the human rights of our workforce, communities and those affected by our operations wherever we do business (including our contractors and suppliers) in line with internationally recognised frameworks including the Social Accountability 8000 International Standard and its associated international instruments." [...] "Prohibiting all forms of harmful child labour, forced / trafficked labour, discrimination and harassment"[...]"Respect the right of all workers to form and join a trade union of their choice without fear of intimidation or reprisal, in accordance with national law"
      
      Open source document
    - Inclusion of small-scale farmers
      No
      
      0/4
    - Gender equality in the supply chain
      No commitment
      
      0/4
    - Commitment to remediation
      Yes
      
      2/2
      
      Commitment to remediation
      
      Yes
      
      2/2
      
      Type of harm covered: Environmental harm
      
      "No Net Loss approach Our Group-wide biodiversity policy, technical standard and guidance notes set out our target to manage biodiversity based on a No Net Loss (NNL) approach. NNL calls for negative biodiversity impacts caused by projects to be balanced by biodiversity gains through compensation measures implemented in the region. These gains are evaluated against a baseline (a reference point or trajectory without the project occurring, or prior to the project occurring) of the relevant biodiversity values being impacted. While the NNL approach applies to all projects, for operational projects, steps for assessing biodiversity risks and past instances of biodiversity loss and ecosystem services will be carried out. These will identify mitigation actions and introduce obligatory additional conservation actions to compensate for past losses."
      
      Open source document
    - Commitment to ensure Free, Prior and Informed Consent
      No
      
      0/4
    - Commitment to resolve land conflicts
      No
  - Reporting and Implementation
    
    23/50
    - Reporting against commitments
      
      2/2
      - Commitment to protect priority forests
        Yes, for all commodity exposure
        
        1.7/1.7
        
        Commitment to protect priority forests
        
        Yes, for all commodity exposure
        
        1.7/1.7
        
        "Birla Cellulose has implemented a strict 'Wood Sourcing Policy' and sources wood from sustainably managed forests following ® ® internationally renowned standards like FSC , SFI , PEFC™. All the suppliers adhere to 'Supplier Code of Conduct' and 'Supply Chain & Procurement Policy'" In 2019 and 2020 "100% controlled wood sourcing achieved"
        
        Open source document
      - Commitment to reduce use of virgin wood fibre
        Yes, for partial or unclear commodity exposure
        
        0.8/1.7
        
        Commitment to reduce use of virgin wood fibre
        
        Yes, for partial or unclear commodity exposure
        
        0.8/1.7
        
        Sustainable Products & Circular Economy Status in FY20: "Liva Reviva launched with 20% pre-consumer waste"
        
        Open source document
      - Commitment to a traceable supply chain
        Yes, for all commodity exposure
        
        1.7/1.7
        
        Commitment to a traceable supply chain
        
        Yes, for all commodity exposure
        
        1.7/1.7
        
        (for 2.3 only) What percentage of the commodity volume in the company's supply chain can be traced to origin in low-risk jurisdictions?: 100%
        
        For Sustainable Products & Circular Economy traceability through the GreenTrack Blockchain Technology, reporting can be seen for FY18=baseline, FY19="Visibility from fibre-to-retail" and FY20="100% visibility from forest-to-retail".
        
        Open source document
    - Reporting is independently verified
      
      1/1
      - Commitment to protect priority forests
        Yes, using a third-party verification scheme or certification scheme.
        
        1/1
        
        Commitment to protect priority forests
        
        Yes, using a third-party verification scheme or certification scheme.
        
        1/1
        
        Which tools, approaches, third-party verification, including certification, schemes are used?: FSC, PEFC
        
        "Birla Cellulose has implemented a strict 'Wood Sourcing Policy' and sources wood from sustainably managed forests following ® ® internationally renowned standards like FSC , SFI , PEFC™. All the suppliers adhere to 'Supplier Code of Conduct' and 'Supply Chain & Procurement Policy'" In 2019 and 2020 "100% controlled wood sourcing achieved"
        
        Open source document
      - Commitment to reduce use of virgin wood fibre
        Yes, using a third-party verification scheme or certification scheme.
        
        1/1
        
        Commitment to reduce use of virgin wood fibre
        
        Yes, using a third-party verification scheme or certification scheme.
        
        1/1
        
        For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 20%
        
        Which processes or groups does the company use for third party verification?: RCS (Recycle Claim Standard) of Textile Exchange
        
        What percent of the company's supply volume is verified using company verification systems?: 20%
        
        "We approached Textile Exchange for certification ofthe product to confirm that the product is made withrecycled material. Audit of the manufacturing plantwas done by Certification body and after thesuccessful audit of the process we secured RCS(Recycle Claim Standard) of Textile Exchange, for LivaReviva. We are getting very positive response fromthe leading global brands who have already started toplace products made from Liva Reviva in the marketsand the volumes are showing excellent growth withina year of launch of this product."
        
        Open source document
      - Commitment to a traceable supply chain
        No
        
        0/1
    - Suppliers aligned with deforestation commitments across supply chain
      No
      
      0/2
    - Deforestation cut off date
      Yes, for all sourcing regions/operations
      
      2/2
      
      Deforestation cut off date
      
      Yes, for all sourcing regions/operations
      
      2/2
      
      What cut-off date is specified?: 1994
      
      "The Group shall implement its best efforts to avoid trading and sourcing wood or wood fibre (herein referred to as wood) from the following categories: [...] Wood harvested from plantations established after 1994 through conversion of natural forests or converted to non-forest use"
      
      Open source document
    - Collaborative actions
      No
      
      0/2
    - Risk assessments for forest risk
      Yes
      
      2/2
      
      Risk assessments for forest risk
      
      Yes
      
      2/2
      
      How frequently are assessments conducted?: not disclosed
      
      "In addition, we have adopted the use of IUCN’s screening tool, the Integrated Biodiversity Assessment Tool (IBAT). This assessment tool has enabled our operations around the world to map biodiversity challenges in relation to the exact location of the site. The results that we have obtained from IBAT form the starting point of biodiversity risk assessment at our operations. "
      
      Open source document
    - Operations assessed to comply with law
      No
      
      0/2
      
      Operations assessed to comply with law
      
      No
      
      0/2
      
      "we expect our suppliers to comply with applicable laws and to adhere to environmental, social and corporate governance standards (ESG standards)."
    - Accessible grievance mechanism
      No
      
      0/4
      
      Accessible grievance mechanism
      
      No
      
      0/4
      
      Does the company publish grievances that have been made against it, as well as responses and resolutions including status and timeframes: No
    - Report volumes of commodity
      No reporting
      
      0/2
    - Report verified volumes of commodity
      100%
      
      6/6
      
      Report verified volumes of commodity
      
      100%
      
      6/6
      
      What third-party verification is used?: FSC and PEFC (SFI only applies to North America)
      
      For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 100%
      
      "Birla Cellulose has implemented a strict 'Wood Sourcing Policy' and sources wood from sustainably managed forests following internationally renowned standards like FSC, SFI, PEFC. All the suppliers adhere to 'Supplier Code of Conduct' and 'Supply Chain & Procurement Policy'" In 2019 and 2020 "100% controlled wood sourcing achieved"
      
      Open source document
    - Upstream: Monitor compliance with human rights
      Yes, commit to monitoring compliance with labour/worker rights
      
      2/4
      
      Upstream: Monitor compliance with human rights
      
      Yes, commit to monitoring compliance with labour/worker rights
      
      2/4
      
      "Continually improving human rights performance by sharing good practices and learnings, setting and reviewing targets, and monitoring, reporting and disclosing performance."
      
      Open source document
    - Upstream: Impact assessments for land development/acquisition
      Yes
      
      4/4
      
      Upstream: Impact assessments for land development/acquisition
      
      Yes
      
      4/4
      
      How does the company remedy adverse social and environmental impacts linked to their operations and/or supply chains?: "No Net Loss approach Our Group-wide biodiversity policy, technical standard and guidance notes set out our target to manage biodiversity based on a No Net Loss (NNL) approach. NNL calls for negative biodiversity impacts caused by projects to be balanced by biodiversity gains through compensation measures implemented in the region. These gains are evaluated against a baseline (a reference point or trajectory without the project occurring, or prior to the project occurring) of the relevant biodiversity values being impacted. While the NNL approach applies to all projects, for operational projects, steps for assessing biodiversity risks and past instances of biodiversity loss and ecosystem services will be carried out. These will identify mitigation actions and introduce obligatory additional conservation actions to compensate for past losses."
      
      (Impact assessments) As part of their environmental "our framework policies and programs" - "Environmental & Social Impact Assessment; Land Acquisition Land Acquisition, Resettlement and Rehabilitation" [...] "Building sustainable business models for mitigation and adaption"
      
      Open source document
    - Upstream: Reporting production/processing locations
      No disclosure
      
      0/4
    - Downstream: Publishing supplier lists
      No
      
      0/4
    - Upstream: Monitor compliance of production/processing
      Yes, using an internal verification system
      
      4/4
      
      Upstream: Monitor compliance of production/processing
      
      Yes, using an internal verification system
      
      4/4
      
      How frequently is compliance assessed?: Not disclosed
      
      Does the company use a jurisdictional monitoring mechanism?: No
      
      What tools, processes, bodies carry out monitoring of the company's production or processing operations?: Sustainable Forestry System
      
      Does the company use a certification system?: No
      
      "The Aditya Birla Group Company shall endeavour to: Maintain positive compliance to all applicable legal requirements, ABG Sustainability Framework and adopted international forestry scheme; Ensure conformance to the existing forest management programs, while procuring wood from other appropriate, approved sources; Ensure internal mechanisms are in place to track the origin of its fibre sources; Maintain a Sustainable Forest Management System for land it owns or directly manages. The system shall be regionally appropriate and meet the requirements of internationally recognized certification standards and good environmental and safety industry practice as defined in the ABG Sustainability Framework"
      
      Open source document
    - Upstream: Reporting hectares of deforestation
      No
      
      0/4
    - Downstream: Monitor compliance in supply chain
      No
      
      0/4
    - Downstream: Reporting hectares of deforestation
      No
      
      0/4
    - Downstream: Engagement with non-compliant suppliers
      Engage with suppliers but with no time-bound threat of exclusion
      
      1/2
      
      Downstream: Engagement with non-compliant suppliers
      
      Engage with suppliers but with no time-bound threat of exclusion
      
      1/2
      
      Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No
      
      "When suppliers contravene these criteria, the Company shall engage with them to change practices and/or re-evaluate the relationship with them."
      
      Open source document
    - Downstream: Disclosure of non-compliant suppliers
      No disclosure
      
      0/2
Commitment strength

18/20

Avg. score
Reporting and Implementation

23/50

Avg. score
Social considerations

6/18

Avg. score

Profile

Aditya Birla Group is one of the largest conglomerates in India with operations in 34 countries. The group operates in sectors including fashion, cement, mobiles and viscose filament yarn. Aditya Birla Group is selected as a powerbroker for pulp & paper.

Sector

Industry sector

Apparel & footwear

Segments

Producer, Trader, Processor, Manufacturer, Retailer

India

Collective Commitments

Consumer Goods Forum member

New York Declaration on Forests signatory

Top Brands

American Eagle, Birla Modal, Combinate 35, Delice, Eternia, Forever 21, Hackett, Linen Club, Louis Philippe, Oxywhite, Pantaloons, Ralph Lauren, Raven, Ted Baker, VanHeusen

How we assess the Forest 500

To ensure deforestation free supply chains, companies need to adopt and implement timebound and measurable policies for forest risk commodities.

All assessments use policies published on company websites, some links may have changed or been removed since the time of assessment.

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Disclaimer

This assessment has been carried out following the methodology developed for the Forest 500 project, available here. Please see our disclaimer applicable to all information contained within this site and our terms and conditions for use of data presented on this site.

All assessments use policies published on company and financial institution websites, and while we endeavor to keep them updated some links may have changed or been removed since the time of assessment.

Please contact us with any concerns or feedback about this or other assessments included in the Forest 500.