Castrol India Limited Corporate Social Responsibility (CSR) Policy
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1 Castrol India Limited Corporate Social Responsibility (CSR) Policy I. Title and Applicability Castrol India is a Public Limited Company with 70.92% of the equity held by Castrol Limited UK (part of BP Group). It has one of the largest manufacturing and marketing networks amongst lubricant companies in India In line with its business strategy and growth aspirations, Castrol India Limited (CIL) recognizes the need and importance of a focused and inclusive social and economic development, especially in the communities within which we operate. We seek to build open and constructive relationships with all our stakeholders. This document articulates CIL s Corporate Social Responsibility (CSR) Policy which comes into effect from January 2015 in line with the Companies Act This Policy applies to all CSR activities of CIL in India and seeks to conform to the requirements of Section 135 of the Companies Act 2013, the notified rules thereof and other such provisions. The Policy is underpinned and guided at all times by the BP Code of Conduct (CoC),available at II. Mission and objectives Castrol India Limited aspires to be a trusted partner, continuously engaging with our stakeholders. Through our CSR programmes aimed at skill enhancement, safe mobility community development and humanitarian aid, we strive to contribute to a safer and better quality of life. Over the last hundred years of the company s presence in India, CIL has conducted various activities working in collaboration with key stakeholders in a responsible and accountable manner. Going forward, the company aims to build on this foundation as we develop a CSR programme that aligns our core skills with the national agenda of development priorities to improve the quality of life of the populace. In alignment with our core skills and vision of engaging with our stakeholders to contribute to a safer and better quality of life, CIL intends to focus on: i. Strengthening skills in the automotive and industrial sectors, with a focus on technology ii. iii. iv. Collaborating for safer mobility Community Development in areas of operation and presence Humanitarian aid
2 i. Strengthening of skills development in the automotive and industrial sectors, with a focus on technology In support of the national agenda, CIL seeks to leverage its knowledge base and expertise to enhance skills, with a focus on technology, of the working age population in the automotive sector through an array of livelihood skill enhancement programmes for the youth. By , the proportion of the working age population in India is expected to reach 63% with a projected surplus workforce of 56 million people. Recognizing the potential of this demographic dividend, India has been focusing on skills development at the policy level. The establishment of the Ministry for Skill Development & Entrepreneurship towards skilling India and fostering entrepreneurship is a key step in this direction. The National Skills Development Council (NSDC) report on Human Resource and Skill Requirements in the Education & Skill Development Services sector (2022) quotes automotive sector growth expected to be one of the highest, making upgradation of skills of existing, as well as new entrants to the workforce, as critical to growth. ii. Collaborating for safer mobility CIL is dedicated to work with various stakeholders to help improve conditions for safer mobility. The objective is to improve awareness and techniques resulting in better safety during road travel. As per a 2010 WHO report, road safety accidents cost the country an estimated loss of 3% of GDP. Drivers and occupants of motorized two and three wheelers, passenger cars, light vehicles and heavy trucks account for 61% of the total fatalities caused by road accidents. India suffers the highest number of road accident deaths in the world, with more than one million deaths due to road accidents in the past decade alone. In August 2013, the Honorable Supreme Court of India has called the problem of road accident deaths in India a National Emergency. The company will bring its experience and expertise to the table, of working with the automotive industry, policy makers, law enforcement officials and road safety organizations to build successful collaborations to address road safety gaps and challenges in India. iii. Community Development in areas of operations and presence CIL supports local communities in areas where its manufacturing plants are located. This is part of the company s commitment towards improving the quality of life of the local communities around its areas of operation. The company intends to continue to focus on youth and women, as key agents of change in the community. iv. Humanitarian aid CIL and its employees have provided relief and rehabilitation support to people affected by the numerous natural disasters which impact our country. The company will continue to provide such support as required in future.
3 III. Planning and Implementation This Policy builds on the learning and good practices of the CSR projects initiated by the Company. The Company s ongoing CSR projects will be aligned to this Policy. i. CIL will undertake CSR activities as stated in Annexure 1, in the above mentioned focus areas preferably around the operations and/or areas of presence of the Company ii. The CSR Committee may, if required, recommend to the Board of Directors as part of the CSR Policy, activities outside of the above mentioned areas iii. All activities will be undertaken in project mode with defined objectives and deliverables, clarity on target beneficiaries, implementation plans with schedule of timeline agreed prior to commencement of activities iv. As applicable and appropriate, necessary processes including baseline, midline and end of project assessments will be undertaken to allow for a structured approach and mid-course correction as required v. A robust monitoring and evaluation system will be developed for each project as per its specific requirements. As appropriate, third party evaluations may be built in to assess impact on beneficiaries and progress towards achievement of the objectives of the CSR Policy vi. Documentation and reporting will be undertaken for all projects to aid availability of updated information and to capture learning for posterity vii. Suitable framework for financial controls, processes and reporting will be put in place for CSR activities IV. Monitoring and Reporting Framework In compliance with the Act and to ensure funds spent on CSR programmes are creating the desired impact on the ground, a comprehensive Monitoring and Reporting framework is being put in place. The monitoring and reporting mechanism is divided into three distinct areas: I. All activities will be governed by a pre-set monitoring and evaluation framework II. The framework will include the key performance indicators, milestones and reporting periodicity prior to commencement. Key performance indicators will include both quantitative and qualitative measurables III. Financial and timelines based measurement will be included with regular financial and progress reporting mechanisms Key objectives of monitoring throughout the implementation period will be to establish whether: I. The projects are making satisfactory and timely progress towards the objectives agreed II. The financial management and reporting are satisfactory III. To flag any course correction required Projects will evaluate the success of social investments at the end of their implementation period and document any lessons learned.
4 V. Governance The CIL CSR Governance structure will be headed by the Board level CSR Committee which will be ultimately responsible for the CSR projects undertaken. The CSR committee will report to the Board of Directors. The Board will review the CSR projects annually. The CSR Committee will consist of three or more directors of which, one will be an independent director. The CSR Committee shall: i. Provide oversight and guidance on CSR performance and monitor compliance with the CSR Policy, commitments and the Statutory Regulations ii. Determine the overall scope of, provide input on, and recommend adoption of the CSR report to the Board of Directors of the Company iii. Review effectiveness of the CSR Policy and activities included in the Policy VI. Budget The Board of Directors of the Company shall endeavor to spend, in each financial year, 2% of the average net profit made during the three immediate preceding financial years unless the nature of projects undertaken is such that the spend gets divided in more than one financial year. Utilisation certificates, as appropriate, will be sought for all projects implemented by registered partners.
5 Annexure 1 The CIL CSR programmes for 2015, along with their modalities and implementation schedule is given below: S no CSR Programmes Description Schedule 1 Eklavya: Strengthening of skills development in automotive and industrial sectors, with a focus on technology 2 Ehtiyat: Collaborating for safer mobility 3 Ekjut: Community Development in areas of operations and presence Focus audience: two wheeler mechanics. Activities: Recognition of Prior Learning, Technical training of existing two wheeler mechanics Entrepreneurship training. Awareness generation and training on road safety measures Needs assessment with pilot programmes ii VII vii i, ii, vii, x Implementa tion NGO(s) SEEDS; GMR Varalakhsmi ; Sambhav AmeriCares India AmeriCares India ; Ambuja Cement Implementation schedule Q4 Q1 2016
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