In manufacturing, Marico initiated efforts to enhance environmental aspects such as energy, water, and waste. Efficiency was progressively integrated into these domains.

Energy: The drive to utilize renewable energy commenced in 2013. Over the last 10 years, the company has achieved a conversion of approximately 98% of thermal energy applications to biofuels. Similarly, a substantial portion of electrical energy has transitioned to wind and solar sources. Collectively, renewable sources now contribute to about 66% of the total energy utilized across all manufacturing units of Marico in India. In addition, a global target has been set to achieve net zero operations by 2040.

Water: Under this segment, approximately 85 per cent of Marico’s raw materials originate from agricultural sources. In India, where agricultural water usage ranks considerably high in comparison to global standards, this assumes importance within the company’s overall value chain. Marico has made a commitment to offset the manufacturing facility’s water consumption by generating an equivalent amount of water conservation potential, provided at no cost, for agricultural and domestic use. This initiative commenced in 2017 and to date, the company has established conservation potential exceeding the operational water consumption by at least 2.5 times.

Sustainability 2.0 Framework at Marico

Framework 1.0 – Marico’s first phase of sustainability began in 2014 when they engaged with their suppliers and declared publicly their sustainability report in 2017. The company also moved to recycled materials packaging by 94 per cent. They started a programme with their vendors to educate them on sustainability concepts and then encouraged them to have sustainability practices and started a certification.

Framework 2.0 – The company transformed its outlook towards sustainability after a comprehensive review in 2022. Marico took into account the changing regulatory landscape such as the emergence of frameworks such as Business Responsibility and Sustainability Reporting and regulations instituted by the Government of India related to plastic compliance. On World Environment Day, June 5th, 2022, Marico unveiled its visionary roadmap for 2030. The vision consists of eight strategic focus areas, encompassing climate change, circular water economy, responsible sourcing, sustainable agriculture, diversity and inclusion, purposeful branding, and corporate governance.

These eight focal points transcend organizational functions, encompassing all stakeholders within our sphere. To support these aspirations, we’ve identified over 50 key performance indicators (KPIs) with quantifiable targets across these eight strategic areas.

Key Focus Areas from the Sustainability 2.0 Framework for the Current Financial Year

One of these areas in focus this year is the concept of the circular economy. While the circular economy concept typically encompasses a wide array of materials, Marico’s attention given the fast-moving consumer goods (FMCG) sector, is primarily directed towards the sourcing of plastics. The company has set a target to achieve

In manufacturing, Marico initiated efforts to enhance environmental aspects such as energy, water, and waste. Efficiency was progressively integrated into these domains.

Energy: The drive to utilize renewable energy commenced in 2013. Over the last 10 years, the company has achieved a conversion of approximately 98% of thermal energy applications to biofuels. Similarly, a substantial portion of electrical energy has transitioned to wind and solar sources. Collectively, renewable sources now contribute to about 66% of the total energy utilized across all manufacturing units of Marico in India. In addition, a global target has been set to achieve net zero operations by 2040.

Water: Under this segment, approximately 85 per cent of Marico’s raw materials originate from agricultural sources. In India, where agricultural water usage ranks considerably high in comparison to global standards, this assumes importance within the company’s overall value chain. Marico has made a commitment to offset the manufacturing facility’s water consumption by generating an equivalent amount of water conservation potential, provided at no cost, for agricultural and domestic use. This initiative commenced in 2017 and to date, the company has established conservation potential exceeding the operational water consumption by at least 2.5 times.

Sustainability 2.0 Framework at Marico

Framework 1.0 – Marico’s first phase of sustainability began in 2014 when they engaged with their suppliers and declared publicly their sustainability report in 2017. The company also moved to recycled materials packaging by 94 per cent. They started a programme with their vendors to educate them on sustainability concepts and then encouraged them to have sustainability practices and started a certification.

Framework 2.0 – The company transformed its outlook towards sustainability after a comprehensive review in 2022. Marico took into account the changing regulatory landscape such as the emergence of frameworks such as Business Responsibility and Sustainability Reporting and regulations instituted by the Government of India related to plastic compliance. On World Environment Day, June 5th, 2022, Marico unveiled its visionary roadmap for 2030. The vision consists of eight strategic focus areas, encompassing climate change, circular water economy, responsible sourcing, sustainable agriculture, diversity and inclusion, purposeful branding, and corporate governance.

These eight focal points transcend organizational functions, encompassing all stakeholders within our sphere. To support these aspirations, we’ve identified over 50 key performance indicators (KPIs) with quantifiable targets across these eight strategic areas.

Key Focus Areas from the Sustainability 2.0 Framework for the Current Financial Year

One of these areas in focus this year is the concept of the circular economy. While the circular economy concept typically encompasses a wide array of materials, Marico’s attention given the fast-moving consumer goods (FMCG) sector, is primarily directed towards the sourcing of plastics. The company has set a target to achieve

100 per cent recyclable packaging by 2025, and the current progress stands at 94 per cent. The company is engaged in several projects and trials to design material, facilitating the attainment of this target by 2025.

The second facet of the circular economy pertains to the utilization of recycled plastics, aligning with the Extended Producer Responsibility. It’s worth noting that the company has already initiated this practice and one of its leading hair oil brands employs approximately 20 per cent recycled plastics in its primary packaging.

Another area of focus for Marico is sustainable agriculture. Marico is the largest purchaser of coconut oil in India, primarily for its brand, Parachute. “Given this, we consider it our moral responsibility to support the communities involved in coconut cultivation, processing, and the broader agricultural aspects. We have initiated efforts in sustainable agriculture by deploying trained agronomists to assess farms in terms of various agricultural parameters such as soil quality, water usage, pesticide management, and disease control”, says Odhekar. This initiative has led to higher incomes for the farmers and contributed to a more positive environmental impact. Currently, approximately 81,000 farmers are part of this program, and we aspire to expand this initiative to reach 100,000 or more farmers in the future.

Challenges

“In today’s world many choices are available to people and many times these choices generally have a cost bias. This cost bias gets preference whether it is in personal life or in professional life. So, it will always be difficult to march on this path of sustainability, but as the process matures you will observe that sustainability doesn’t add cost, but it adds value to your business.”, says Odhekar.

Encourage People to Take Up a Sustainable Lifestyle

Marico focuses on all categories of people that it impacts such as the employees, suppliers, society in general, and shareholders. Talking about one of its brands Odhekar says, “Nihar is our brand which has a public commitment that a certain percentage of its profit will go for education of underprivileged children. We are working for children in the area who are probably going to government schools or parents who do not have sufficient money to pursue an education for their kids. And a huge number of kids are getting benefited because of this programme. Even the teachers in those schools are getting benefited.”

For its employees, the company has 2 to 3 important aspects which they monitor. One is diversity and inclusion for which they have a detailed policy that everybody should have equal opportunity to participate; a code of conduct which ensures the establishment of a harassment-free workplace and people have an opportunity to share their grievances or share even their discomfort.

The company also focuses on the holistic wellbeing of its employees. One aspect of well-being is financial well-being. “Irrespective of their designations, employees do not know how to manage their finances. So there’s a consultation happening on financial management for self and for the family members”, pointed out Odhekar.

Sustainability Mantra

“So we all are fighting the same battle so we have the same challenge.” Says Odhekar and suggests professionals to set aside their personal titles, roles, and affiliations for a moment, and consider the common goal. Doing so may lead you to make a profoundly sound decision. Each decision carries weight because it represents progress; even a single step forward is an improvement over standing still. This progression contributes to a brighter future for all. “Your involvement, no matter how small the percentage, makes a difference. Whether it’s 1 per cent or 0.1 per cent, it is always greater than zero. And if it exceeds zero, it invariably contributes to a better future for all.” Says Odhekar in his closing remarks.