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  • Overall approach
    7/10
    • Overarching commitment on deforestation
      3/4
      Overall commitment
      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
      "Aditya Birla Group, shall maintain at each primary conversion site a Fibre Procurement Policy and, where applicable, a Forest Management Policy tailored to the jurisdictional requirements of each operation. 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 habitat1"
    • Signatory to an initiative tackling deforestation
      1/1
      Signatory
      Yes
      1/1
      Which initiatives?: UN Global Compact; Other initiative

      If Other Initiative, specify: World Business Council for Sustainable Development Forest Solutions Group
      "The Aditya Birla Group is a member of the Global Compact, an international forum that operates under the aegis of the United Nations" [...] "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.
    • Awareness of the value of forests
      1/1
      Awareness
      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."
    • Deforestation as a business risk
      1/1
      Business risk
      Yes
      1/1
      What proportion of revenue that comes from relevant industries is exposed to each forest risk commodity?: NA

      What poportion of a company’s annual revenue depends on each forest risk commodity?: NA

      What type of risk is recognised?: Financial; Operational
      "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"
    • High-level management of deforestion
      1/1
      High-level management
      Yes
      1/1
      How often does the committee or board meet to assess company's progress on addressing deforestation-related issues?: Quarterly

      Which commodities does it apply to?: Pulp & paper
      "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."
    • Executive compensation linked to deforestation
      Executive compensation
      No
      0/0
      Does it disclose the percentage of pay at risk?: No
    • Target to reduce emissions from land-use change
      0/1
    • Reporting on emissions from land-use change
      0/1
    • Disclosure of conservation activity
    • Disclosure of reforestation activity
    • Target to reduce emissions in scope 1/2
      Reduce emissions
      No
      0/0
      What is the target date for the company to achieve their climate target?: 2050

      Type of climate target: Net-zero emissions

      Is this target aligned with/verified by SBTi?: No
      "Group Philosophy and Commitments [...] Net-zero carbon emissions by 2050"
  • Commodity score
    40/90
    • Pulp & Paper
      40/90
      • Commitment Strength
        15/17
        • Commodity-specific deforestation commitment
          8/9.5
          • Commitment details
            Zero-gross deforestation
            4/6
            Commodity-specific deforestation commitment
            Zero-gross deforestation
            4/6
            Which certification schemes are used?: FSC; PEFC

            When was this commitment set?: 2016

            If other certification, specify: SFI

            Type of sustainability commitment: Reduce the volume of virgin wood fibre used in paper and packaging products through usage of recycled content; Use of alternative fibres that consider full life cycle, biodiversity, and food security impacts
            "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)."; (Reduce wood fibre use) "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."
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "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)."; (Applies to all) "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."
          • Target date
            Current/achieved
            1/1
            Target date
            Current/achieved
            1/1
            What actions or steps are identified for time-bound implementation?: rioritised the development of alternate raw materials, reduce the dependence on virgin wood based pulp.
            "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)." ; (Target date) "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."
          • Interim target date
            NA (target date current or achieved or 2023)
            0.5/0.5
            Interim target date
            NA (target date current or achieved or 2023)
            0.5/0.5
            What date is given for the interim milestone?: na
            "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."
        • Commitment to a traceable supply chain
          8/7.5
          • Commitment details
            Traces to Point of production
            4/4
            Commitment to a traceable supply chain
            Traces to Point of production
            4/4
            When was this commitment set?: NA
            "Visibility from forest-to-fashion by 2021 - 100% visibility from forest-to-retail. > 40 global brands onboarded."[...]"Transparency & Traceability - We understand the importance of traceability & transparency. Through our Blockchain based platform GreenTrack™, we along with our value chain partners track material flow in the supply chain from forest to retail - Through a simple scan of QR code, an end-to-end sustainability journey is visible to consumers and helps them make an informed purchase decision."
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "Visibility from forest-to-fashion by 2021 - 100% visibility from forest-to-retail. > 40 global brands onboarded."[...]"Transparency & Traceability - We understand the importance of traceability & transparency. Through our Blockchain based platform GreenTrack™, we along with our value chain partners track material flow in the supply chain from forest to retail - Through a simple scan of QR code, an end-to-end sustainability journey is visible to consumers and helps them make an informed purchase decision."
          • Target date
            Current/achieved
            1/1
            Target date
            Current/achieved
            1/1
            What actions or steps are identified for time-bound implementation?: Use blockchain QR Code to map supply chain from forest plantation to factory
            "Visibility from forest-to-fashion by 2021 - 100% visibility from forest-to-retail. > 40 global brands onboarded."[...]"Transparency & Traceability - We understand the importance of traceability & transparency. Through our Blockchain based platform GreenTrack™, we along with our value chain partners track material flow in the supply chain from forest to retail - Through a simple scan of QR code, an end-to-end sustainability journey is visible to consumers and helps them make an informed purchase decision."
          • Interim target date
            NA (target date current or achieved or 2023)
            0.5/0.5
            Interim target date
            NA (target date current or achieved or 2023)
            0.5/0.5
            What date is given for the interim milestone?: NA
            "Visibility from forest-to-fashion by 2021 - 100% visibility from forest-to-retail. > 40 global brands onboarded."[...]"Transparency & Traceability - We understand the importance of traceability & transparency. Through our Blockchain based platform GreenTrack™, we along with our value chain partners track material flow in the supply chain from forest to retail - Through a simple scan of QR code, an end-to-end sustainability journey is visible to consumers and helps them make an informed purchase decision."
      • Associated Human Rights Abuses
        4/17
        • Labour rights in the supply chain
          Yes
          3/3
          Labour rights in the supply chain
          Yes
          3/3
          Details of commitment: Discrimination; Forced labour; Child labour; Freedom of association

          How far back in the supply chain does this commitment apply?: NA
          "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; Valuing diversity, equal opportunity and the need to consider the rights of vulnerable groups such as indigenous peoples, women, migrant workers and other minorities."
        • Inclusion of small-scale farmers
          No
          0/2
        • Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          1/2
          Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          0.5/2
          " Ensure there is no discrimination based on factors such as gender, nationality, caste, religion or ethnic background for employment and working conditions"
        • Commitment to remediation
          Yes
          1/1
          Commitment to remediation
          Yes
          0.5/1
          What does the commitment cover?: 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."
        • Commitment to test Free, Prior and Informed Consent
          No
          0/3
        • Commitment to respect customary rights to land, resources, and territory
          No
          0/3
        • Zero-tolerance approach to violence and threats
          No
          0/3
      • Implementation and Reporting
        21/56
        • Reporting proportion of compliant volumes
          0/0
        • Reporting is independently verified
          Yes, using a third-party verification scheme or certification scheme
          2/2
          Reporting is independently verified
          Yes, using a third-party verification scheme or certification scheme
          2/2
          Which tools, approaches, third-party verification, including certification, schemes are used?: FSC, PEFC

          What methods are used for verification?: FSC, PEFC

          What percent of the company's supply volume is verified using company verification systems?: na

          Which processes or groups does the company use for third party verification?: RCS (Recycle Claim Standard) of Textile Exchange

          For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 20%

          Is the performance of compliance of some suppliers, sources, or origins not verified, and if so why not?: note specified
          "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" ; (Verified) "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."
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/3
        • 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"
        • Collaborative actions
          No
          0/2
        • Jurisdictional approach focused on sustainable land use
          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

          For what percentage of material produced or sourced by the company has forest risk been assessed?: 0 not specified
          "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."
        • Operations assessed to comply with law
          Yes
          2/2
          Operations assessed to comply with law
          Yes
          2/2
          "6. Right to Audit Birla Cellulose reserves the right to conduct a full audit if necessary to ensure compliance of the Supplier Code of Conduct"[...]"C. Applicable Laws and Regulations  Suppliers should implement an appropriate Compliance Management System, which facilitates compliance with applicable laws, regulations, and standards.  Suppliers shall comply with the relevant anti-trust laws applicable at all time and not indulge in any anticompetitive practices whether itself or through other entities."
        • Accessible grievance mechanism
          Yes, publicly accessible grievance mechanism
          2/4
          Accessible grievance mechanism
          Yes, publicly accessible grievance mechanism
          2/4
          Which issues does the grievance mechanism cover?: Social; Environmental

          If other type of mechanism, specify: NA

          What is the nature of the grievance mechanism used by the company?: Own mechanism
          "Grievance Reporting Channels Grasim will communicate this procedure to its external stakeholders to raise awareness and offer transparency of how stakeholders can voice their grievances. Various channels for external stakeholders to vocalize their grievances formally include: Stakeholders can connect with the Admin & Liaison officer Email Mr. Sailesh Kumar Daga (Grievance Officer) bc.grievance@adityabirla.com"
        • Report volumes of commodity sourced/used
          No reporting
          0/3
        • Monitor compliance for labour rights and FPIC
          Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
          3/5
          Monitor compliance for labour rights and FPIC
          Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
          2.5/5
          What steps has the company taken to implement their labour rights commitment?: NA

          What percentage/number of new interests, developments, or expansions has the company used FPIC to secure consent of indigenous peoples/local communities?: NA

          What is the status of those FPIC processes?: NA
          "Our commitment entails respecting human rights and seeking to avoid involvement in human rights abuses, identifying, assessing and minimising potential adverse impacts through due diligence and management of issues, and resolving grievances from affected stakeholders effectively. Every Aditya Birla Group Company endeavours to achieve our commitment by: [...]Continually improving human rights performance by sharing good practices and learnings, setting and reviewing targets, and monitoring, reporting and disclosing performance."
        • Monitor compliance for zero tolerance approach and customary rights
          No
          0/5
        • 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."

          For what percentage of production units has an ESIA been carried out as part of the land use planning process?: NA
          "Our Framework policies and programmes - TS Environmental & Social Impact Assessment Land Acquisition Land Acquisition, Resettlement and Rehabilitation Building sustainable business models for mitigation and adaption"
        • Upstream: Reporting production/processing locations
          No disclosure
          0/4
        • Downstream: Reporting suppliers
          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
          For what percentage of suppliers does the company use/rely on external mechanisms to monitor compliance?: NA

          If so, what jurisdictions and mechanisms does the company use?: internal mechanism

          Does the company use a jurisdictional monitoring mechanism?: No

          Does the company use a certification system?: No

          For what percentage of production or primary processing operations that it owns, manages, or otherwise controls does the company use external processes or actors, such as certification, to monitor compliance?: NA

          What tools, processes, bodies carry out monitoring of the company's production or processing operations?: Sustainable Forestry System

          For what percentage of the commodity sourced by the company is deforestation/conversion monitored at the farm level on production units known to be in the company's supply chain?: NA

          How frequently is compliance assessed?: Not specified
          "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"
        • 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: Reporting hectares of deforestation
          No
          0/4
          Does the dowsntream company report the attributed deforestation or ecosystem conversion by sourcing area?: No
        • 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
          What criteria does the policy specify for blacklisting or exclusion?: Failure to comply supply code of conduct

          Does the company work with the non-compliant supplier to develop an implementation plan to remedy associated harms or non-compliance?: No

          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No

          What type of support does the company offer to its suppliers to help them achieve compliance with commitments?: Not disclosed

          Does the company commit to engage with rightsholders, Indigenous peoples and local communities when developing the implementation plan?: No
          "The purpose of the Supplier Code of Conduct is to procure all goods and services from the sustainable sources adhering to stringent EHS standards and ensure all transactions are done in ethical ways following the regulatory requirements. Human Rights is of paramount importance to us and therefore we consistently interact with suppliers on these issues. We periodically assess the risks in the supply chain, on a case-to-case basis, investigate/audit facilities and encourage the suppliers to establish best practices. The Supplier Code of Conduct can be accessed here. We have also started supplier assessment for critical suppliers, whose materials/services have a huge impact on the business operations, competitive advantage, market performance, highvolume/non-substitutable."
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
  • Commitment strength
    15/17
    Avg. score
  • Implementation and Reporting
    21/56
    Avg. score
  • Associated Human Rights Abuses
    4/17
    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, Textiles
Segments
Trader, Processor, Manufacturer, Retailer
HQ
HQ 
India
Company Type
Company type 
CO
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.

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.