Dear Stakeholders,
Varun Beverages considers sustainability to be of utmost importance; not just as a
crucial element to meet its regulatory requirements and propel business growth but also as
a significant contributor to safeguard the planet and life on it. Our ESG principles,
therefore, remain the guiding force behind the way we do business. We are proud to have
consistently met our ESG goals in the past few years and remain committed to forge
sustainable pathways for the future, in collaboration with our valued stakeholders.
Varun Jaipuria
Promoter, Executive Vice-Chairman and Whole-time Director
Sustainable action has never been more critical. Today, the need for embracing
sustainability transcends beyond - combating climate change and creating social equality -
to foster innovation, build trust and steer long-term profitability. In this evolving
business landscape, Varun Beverages, along with refreshing billions of consumers through
its ever-expanding portfolio of beverages, prioritizes environmental stewardship, social
responsibility and robust governance practices.
As a responsible business, we take significant initiatives to optimize resource
efficiency, reduce and manage waste and increase our share of renewable energy.
Together, these will help us meet our ESG Goals of optimizing carbon footprints,
promoting social equity, and adding more value to our employees, vendors, suppliers and
other stakeholders.
Grow Consistently. Sustain Constantly.
Growth and sustainability are mutually inclusive concepts at Varun Beverages; one
cannot happen without the other. In this context, our business strategy and growth
enablers are closely tied to our ESG priorities and its key pillars: Environmental
Protection, Social Capital, Human Capital Development, Business Model & Innovation,
and Leadership & Governance. Prioritizing the material aspects under each of these
pillars help us to consistently focus on most significant sustainability issues and create
long-term value for our stakeholders.
This report covers the sustainability initiatives taken and progress made in CY 2023 in
detail. Flipping through the pages will give you an insight on the processes initiated and
actions taken across environment, social and governance aspects of our ESG policy. It also
defines our plans for the future, establishing our ambitious goals to recycle plastic
waste by 2025, achieve water positivity as well as improve our renewable energy share by
2030.
Demonstrating
Environmental Stewardship
Refreshing billions of consumers comes with the responsibility to ensure that we leave
minimum environmental footprints as we do so. As a responsible business, we take
significant initiatives to optimize resource efficiency, reduce and manage waste and
increase our share of renewable energy.
Reduce, reuse and recycle served as a key mantra across the value chain in CY 2023.
Continued engagement with GEM Enviro Management Pvt. Ltd. built up awareness about waste
management and pushed waste collection. In addition, alliance with Deutsch Quality Systems
(India) Private Limited enabled measurement and improvement in the Company's carbon
footprint and water footprint assurance.
Achieving water positivity through focused initiatives for water stewardship, including
pond adoption, maintenance and rejuvenation, continued to remain a key priority during the
year. This resulted in positive water recharge and reaped multiple benefits for the farmer
community. Emphasis on responsible sourcing of raw materials from suppliers who follow
PepsiCo's Global Supplier Code of Conduct also helped us to achieve desirable
environmental and social impact.
Upholding Social Responsibility
Our deep-rooted commitment and care for our employees, contractors, and consumers
reflects through a bunch of health, safety and quality measures that we took throughout
the year. An ESG-linked incentive framework was implemented to steer our employees to
follow sustainable practices and contribute to the Company's ESG goals. Consistent
efforts towards building a safe, nurturing and inclusive work-environment supported by
continuous training and development resulted in a culture of diversity, performance and
growth. Equal efforts were placed towards boosting employee health and wellness.
Safety is paramount to us. DuPont Safety Solutions was engaged for implementing best
practices in safety at all of our manufacturing plants in India. A robust safety strategy
supported by an incident management system, continuous trainings, and strict vigilance has
also been put in place to drive zero incidents at workplace. An Employee Passport and
Contractor Safety
Management System further tracks and ensures contractor safety.
Manufacturing and distributing safe and high-quality products forms the core of our
social responsibility. Year after year, we have successfully achieved this goal with our
commitment to responsible and ethical sourcing and manufacturing practices; conformation
with global quality standards; transparent product labelling; and sustainable marketing
strategy. Persistent focus on aligning with the changing needs of our consumers have also
inspired us to provide an assortment of product mix with healthier and low sugar beverage
options for refreshment.
Robust Governance Practices
Our robust governance framework and well-structured policies and practices serve an
instrumental role in driving ethical conduct, accountability and transparency within the
system and all its stakeholders. We take pride in expanding the reach of our rigorous
policies to include contractors and suppliers, prioritizing an ESG-centric approach. A
crisis management team has also been formed and is regularly trained to ensure business
continuity in case of an adversity. Our commitment to corporate governance has garnered
many awards and accolades.
Our sustainability agenda includes uplifting the underprivileged and beneficiaries from
economically weaker sections through initiatives that provide them better access to
education, health and livelihoods. In the education sphere, we collaborated with Shiksha
Kendra School to provide free education and related resources to 32,500+ underprivileged
students.
Ten AARU Clinics in India and one in Nepal were set-up near our manufacturing sites
with the objective of providing free healthcare services to marginalized communities
Our robust governance framework and well-structured policies and practices serve an
instrumental role in driving ethical conduct, accountability and transparency within the
system and all its stakeholders.
residing in the rural areas. 110,000+ beneficiaries received free medical assistance,
medicines and underwent diagnostic tests under this initiative. Pravah, another initiative
by VBL, empowered the unemployed youth through skill development and provision of
sustainable livelihood opportunities. 17,000+ youth were trained under this initiative.
Paving the way for a Sustainable Future
For the world to become a better place, each of us needs to take consistent sustainable
action. Our steadfast commitment to sustainability in the recent years is demonstrated
through our initiatives and their significant impact. Through an indomitable spirit and
continuous innovations, we aspire to steer our ESG journey further and inspire several
others to pave the way towards a brighter, more sustainable future.
Together, let us make responsible decisions and take conscious action to protect our
environment and create equal and consistent opportunities for the communities we live and
operate in.
Warm Regards,
Varun Jaipuria
Promoter, Executive Vice-Chairman and Whole-time Director