Sustainability Governance Model
At Suzlon, we embrace an integrated approach to sustainability within our organization. By embedding sustainability at the highest governance level, we ensure strategic oversight of ESG issues for long-term value creation. Our multi-tiered governance structure, which includes the following, establishes clear roles, responsibilities, and reporting channels, and enables us to effectively manage and drive our transformative sustainability initiatives across the organization.
The CSR & ESG Board Committee, comprising two Non-Executive Independent Directors and two Executive Directors, oversees strategic directions, recognizing the issues, forces, and risks that define our long-term sustainability performance. The committee chairperson updates the Board at each meeting, where members actively discuss various ESG initiatives and progress against commitments.
The Chairman & Managing Director and the Group CEO set the tone for sustainability governance, approve policies, and provide oversight for the company’s sustainability performance in line with stakeholder expectations. They approve strategic ESG goals and policies, monitor the company’s adherence to regulations, and oversee the implementation of key initiatives.
The Corporate Sustainability & ESG Head drives sustainability across the company through the creation and implementation of policies, systems, internal controls, and mechanisms that align with the strategic vision. This role oversees the development and implementation of the sustainability strategy, commitments, and roadmap, coordinating with CEOs of business verticals to achieve these goals. The Head bridges the gap between top-level leadership and implementation teams across various business units, providing strategic guidance to the Corporate Sustainability & ESG team. This team supports the execution of the ESG strategy and coordinates with sustainability champions and functional heads to ensure effective and consistent implementation of sustainability initiatives. They collect and analyze data, prepare reports, and communicate progress to stakeholders.
Business Vertical CEOs of different business verticals are responsible for integrating sustainability into their respective operations. They ensure that sustainability is considered in business plans, allocate necessary resources, and take responsibility for achieving sustainability targets. Sustainability Champions are appointed within each business vertical to drive sustainability initiatives and act as focal points for communication. They provide local leadership, address sustainability challenges, and ensure effective implementation of initiatives.
The Corporate Sustainability & ESG Head coordinates with Business Vertical CEOs to integrate sustainability into their operations. These CEOs ensure sustainability is embedded in business plans, allocate resources, and achieve targets, translating corporate goals into actionable initiatives at the BU level.
Sustainability Champions within each business vertical drive initiatives and act as communication focal points. They provide local leadership, address challenges, and ensure effective implementation. The corporate sustainability team and BU champions are supported by Functional Heads from various departments (HR & Quality Assurance, Admin & Finance, Procurement & Stores, Maintenance, Health Safety & Environment) to implement initiatives. These Functional Heads allocate resources, ensure regulatory compliance, and integrate sustainability into departmental policies and procedures.
To ensure accountability and measurable progress, we have integrated a balanced scorecard system into our governance framework, incorporating ESG KPIs into performance evaluations and variable compensation. This makes sustainability a key focus for the leadership team. Additionally, we have established a regular monitoring mechanism, including periodic reviews, real-time data tracking, and comprehensive reporting, to continuously assess progress and enable timely interventions.
Our sustainability governance structure features clear leadership, a decentralized approach, and multi-functional involvement, ensuring alignment with corporate objectives, environmental goals, and social responsibilities. By embedding sustainability roles at both corporate and BU levels and using the Balanced Scorecard system, we integrate ESG principles into every aspect of our business.
Transparency for reporting and disclosures
The Corporate Sustainability & ESG Head actively participates in development of the Sustainability Report through close monitoring of resource allocation and provide guidance to ensure that all material topics and goals are addressed effectively. Periodic reviews are conducted to track progress and make necessary adjustments. This hands-on approach ensures that the report is comprehensive and aligns with our sustainability objectives. The CEO reviews and approves the report, ensuring it meets our high standards. Once finalized, it is presented to the Board for input and feedback, enhancing its quality and impact. This involvement ensures the report is thorough, accurate, and aligned with our strategic vision and long-term goals. This collaborative approach underscores our commitment to transparency and continuous improvement in sustainability practices.
