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Water Stewardship
We consume only 0.023% of total water consumed by all industries in India. As a responsible user of water, our approach to water stewardship transcends our operations and extends to all communities. Our water stewardship programmes are based on the principle of Reduce, Reuse / Recycle and Replenish.
Reduce
We invest in best-in-class technology and optimise water usage in our manufacturing processes through recoveries, secondary use of water by stream segregation, and other water reduction interventions. Result: Our water use ratio (water consumed per litre of beverage produced) of our operations has improved over the years signalling that our operations are continuously becoming water efficient.
Recycle
Our factories (all of which are equipped with effluent treatment plants) recycle and reuse water to the extent possible in secondary applications like boiler make-up, cooling towers, gardening, toilet flushing and floor clearing. Rest of the water is returned to nature at a level that supports aquatic life. Result: Our factories treat 100% of the waste water.
Replenish
We have till date undertaken more than 300 water replenishment projects in collaboration with NGOs, local authorities and communities. These include construction of check dams, desilting and restoration of ponds and natural water bodies, rainwater harvesting, and building bunds and conservation tanks among others.
Result: 110% water replenishment potential created as compared to the total water used in our factories.
Some of our key water stewardship programmes include:
- Integrated Watershed Management Project in Betul, Madhya Pradesh addressing the region’s water scarcity and high soil erosion problems
- Construction of farm bunds, check dams and repair of percolation tanks in Nashik District, Maharashtra
- Groundwater recharge projects in Gujarat, Tamil Nadu and Maharashtra
- Rainwater harvesting projects in UP, Punjab, West Bengal, AP
- Pond rejuvenation projects in UP and NCR
Plastic Waste Management
Our long-term vision is to leverage the scale and resources of our entire system to ensure that all our packaging material is reused and recycled to minimise its environment impact, while creating livelihood opportunities for waste collection workers.
Recover and Recycle
We offer our beverages in returnable glass bottles (RGBs), aluminium cans, PET bottles and tetra packs. Around 30% of our beverage sales come from RGBs which are fully recovered from the market (except for breakages). We also work with authorised collection agencies, NGOs, waste collectors and key account customers to recover PET waste which is then recycled by authorised processing agencies. One of our biggest contributions to the food and beverages industry in India is the large-scale adoption of PET bottle which is light weight, durable, economical, re-saleable and above all 100% recyclable.
Circular economy on plastics
HCCB has partnered with United Nations Development Program (UNDP) and several NGOs to gradually establish plastic waste collection programs in the top 50 cities of the country partnering NGOs, urban local bodies, pollution control boards, resident welfare associations and other stakeholders.
The program, in India, aims to create an end-to-end recycling ecosystem starting at the point of waste generation and connecting to the recyclers thereby creating a Circular Economy on plastics. The digital platform created for this purpose shall provide complete visibility, traceability and digital governance. The programme will engage and improve the lives of more than 37,500 safaii mitras by organising them into self-help groups for income generating activities and enterprise creation.
Renewable & Clean Energy – Towards a New Future
HCCB has ramped up its renewable & clean energy capacity to meet 50% of its energy requirements through these sources during 2020. The feat has enabled the company to offset 46,500 tonnes of carbon emission per annum with solar and wind energy and 30,000 tonnes of carbon emission per annum using biomass fuel in its boilers.
HCCB has employed a variety of solutions to embrace renewable energy across its factories. Some of the key initiatives include conversion of furnace oil boiler to PNG (piped natural gas), use of briquettes - made out of agricultural waste like groundnuts and coconut shells - to power boilers, installation of solar rooftops for on-site power generation, entering into Purchase Power Agreement (PPA) for sourcing wind and solar power through various state grids, adoption of energy efficient technology and progressively replacing traditional bulbs and light sources in our factories with LED lights. Additional initiatives include adoption of Vapour Absorption Machine (VAM) for chilling operations operating on Briquette Steam and so on.
- Offsets 76,500 tonnes of carbon emission through renewable and clean energy in 2020
- Consolidated impact on the climate is equivalent to a reduction in global warming achieved by 35 lac trees per year
- The milestone is in sync with the company’s plan to reduce its carbon emissions 25% by 2030 from a 2015 base year (science-based target)
- HCCB’s total installed annual power generation from renewable sources has increased to 95 million units in 2020
- Currently (by 2020), around 8 out of 15 factories of HCCB use nearly 50% of energy from renewable & clean sources
Effluent and Waste Management
All our factories have effluent treatment plants, which ensures that water and waste generated at our units are treated and effectively reused. Going a step further, HCCB has also undertaken several initiatives outside its factories to ensure effective effluent and waste management. One such initiative is the partnership with Municipal Corporation of Greater Mumbai (MCGM) to set up a ‘Waste Water Recycling Sewage Treatment Plant.’ The project recycles used water for non-domestic purposes and helps save potable water. This initiative has become a catalyst for similar projects across the country.
Reaping Benefits: Rupturing Myths
Around 200 farmers in and around Goblej village near Ahmedabad are today driving a change that could potentially trigger the next green revolution in India. HCCB feels proud to be just one of the enablers.
“The yield from my field has now almost doubled.” Says Avanish (name changed), one of the early adopters of the System of Rice Intensification (SRI) methodology in Goblej village. He quickly adds with an enviable sense of pride and achievement, “And, my income has more than quadrupled.”
His assertion may evoke wonder in most of us – for the lack of general awareness about the existence and benefits of such innovative practices. And, excitement too - at the prospect of raising large swathes of farmers’ population out of poverty.
Sure enough, the rice produced through SRI commands a price premium in the market. Reasons are obvious – the taste, flavour and even the food content of SRI rice are much better than the ones produced through the conventional farming method. Besides, the paddy under SRI is cultivated with organic manure sans any chemical fertiliser. The plants are, therefore, healthy and can resist insects naturally without any pest control.
Convincing farmers to adopt SRI was, however, not easy for HCCB in the beginning. The new methodology challenged the age-old concepts, techniques and practices of traditional rice farming. Sensing the resistance, HCCB started sending the farmers in small groups to nearby villages where SRI was already paying dividends. Simultaneously, HCCB in partnership with Development Support Centre (DSC), an NGO that specialises in SRI methodology, organised training programmes on SRI technique for the farmers. HCCB also developed demo plots to demonstrate the benefits of SRI technique to all the farmers. The idea was to show them the difference between traditional and SRI techniques for rice farming.
The system which was first developed during 1980s in Madagascar, has today spread to around 20 countries. It is also being adopted in many states in India notwithstanding the constraints.
The success of SRI is, thus, real and for everyone to see. It’s, however, intriguing to note that only 200 farmers in the region have adopted this innovative methodology in 3 years since the new technique was introduced to them by HCCB in 2016. Explains, Sanjay Bhatt, Zonal Head, Public Affairs and Communication (PAC), HCCB, “Initially, there were a lot of apprehensions about the efficacy of SRI methodology when we introduced this in Goblej. The resistance was understandable as the SRI technology challenged the well-entrenched beliefs and practices of rice farming.”
For instance, people for centuries have believed that rice is an aquatic plant and grows best in standing water. The SRI technique has now established that while paddy can survive in water, it cannot thrive under reduced oxygen levels. So, it took a great deal of training and persuasion to convince some progressive farmers to adopt this technique in which the fields are not submerged with water and just kept moist during vegetative phase. At a later stage, only one inch of water is required to be maintained in the field. On an average, SRI farming requires almost half as much water as normally used.
The SRI technique also challenged the conventional method of transplanting rice seedlings. Traditionally, the farmers first pull out the seedlings from the nursery bed at an average of 15 to 40 days after seeding and then transplant them in bulk – 2 to 3 seedlings per hill – placed close to each other in a random order. Under SRI technique, the farmers transplant 8 to 12-day old seedlings, using only single seedling per hill, not in clumps, in a square pattern 25cm x 25cm apart. Moreover, the nursery preparation for SRI is also different requiring the farmers to spread the sprouted seeds sparsely. This enables the farmers to lift single seedling at a time required for transplanting.
Single seedling particularly allows roots to grow deep and produce 30 to 50 tillers making the plants that much stronger. Besides, the spacing between the plants enables easy weeding. This coupled with increased microbial activity due to organic manure provides more nutrients to roots, further adding to their strengths. As Javed (name changed), another farmer in region who like Avanish also practices SRI technique, points to the neighbouring field, “Look at the paddy plants cultivated under conventional methods. The untimely rain and storm have destroyed all of them. But the ones grown under SRI in my field are still standing tall and green.”
In comparison with the traditional paddy cultivation, one can say that the SRI technique is a set of new practices requiring less water, less seeds and less time to produce larger quantity of rice of much better quality without requiring any chemical fertiliser or pest control.
Besides, the farmers can concurrently grow azolla in the paddy fields. Essentially an aquatic fern, azolla acts as bio-fertilizer, enriching the soil with organic nutrients. Most importantly, due to the increased fertility of the soil and moderate requirement of water, the farmers are able to grow the second paddy crop in a season. This further enhances their earning potential.
The benefits of SRI are indeed huge. The good news is that the farmers in the region are beginning to see the difference. On its part, HCCB in partnership with DSC, the NGO, continues to impart training to educate the farmers. The adoption is taking place slowly but surely. For now, the SRI technology is set to transform the agriculture landscape of Goblej village for better.
Empowering the women of Srikalahasti
En route the Tirupati Temple, in the Chittoor district of Andhra Pradesh lies the little town of Srikalahasti. The streets bustle with activity, right from the tourists and pilgrims mulling through the streets to shop and get to the temple, to the hawkers and vendors calling out for people to sample their wares.Known for the famous Srikalahasti temple, it is one of the most important places of worship in Southern India. Situated just 36 km from Tirupati, it gets a lot of footfall, yet the communities struggle with socio-economic issues.“The future of India lies in its villages”, said Mahatma Gandhi.
However, it is up to us to help the villages become equipped for the future. The economy of the village primarily depends on the income of the male member of the family, mostly through agriculture. While the men head out to work, women manage the house but aren’t able to contribute in a large way to the household income.In a town where women barely had opportunities to earn a living, HCCB decided to step in and lend a hand. We began work in the neighboring villages that constitute Srikalahasti, like Challapalam, Kapugunneri, Eguvaveedhi, Cherlopalli to set up self-help groups to help the women of the village be able to stand on their own two feet.
These self-help groups skilled the women in the art of jute and cloth bag and domestic cleaning material making.With vocational training in place, these women easily began taking ownership of their finances. A small step that did wonders for their confidence. Equipped with skill sets, these women were now ready to take on the world and begin contributing financially in their homes.The majority of these villages depended on agriculture, yet the practices being used were not very productive. HCCB stepped in to help them adopt more sustainable agricultural practices. HCCB extended natural farming support to the farmers in Challapalem, Kapugunneri, Eguvaveedhi and Cherlopalli Village.
The pilot project was launched on 12th June 2019 in our Srikalahasti plant premises.We also took steps to help improve the public health in these villages through periodic and specialized medical camps. In June 2019, HCCB Srikalahasti organized a multi-specialty medical camp with specialists that could help address various health aspects for the villagers. There were visits from ophthalmologists, dentists, general physicians, pediatricians and physiotherapists. The community benefitted from overall health check-ups, as cases of previously undiagnosed diseases came to light. The camp also provided pro-bono cataract operations for those that needed it.
The landscape of Srikalahasti is changing. The women are a force to be reckoned with, thanks to their newfound financial independence. The farmers are more profitable and the environment a little less strained, using sustainable agricultural practices. They can breathe a little better owing to the plantation drives across the villages. The people are better equipped to take care of their own health. A little helping hand from HCCB has transformed the lives of the people of Srikalahasti.
Skill Building - Bridging the Gap
Established with a view to enhancing the employable skill sets of underserved youth of the nation, HCCB’s Career Development Centres (CDCs) are helping them fulfill their aspirations.
“All you deserve is Rs. 1,700 per month.” This is what Akshara Singh (18) (name changed) was told when she approached her employer for a salary hike. For someone whose family was struggling to make ends meet, this sounded like a death knell. But thanks to the job oriented courses she attended at one of the Career Development Centres (CDCs) of Hindustan Coca-Cola Beverages (HCCB), at Hapur district in Uttar Pradesh, her salary has increased by more than 5 times within a span of a year.
And, Akshara is not an isolated case. She is one of the 13,000 educated and underserved youth who have attended and benefitted from the beverage manufacturer’s skill development initiatives so far. In fact, the females constitute almost 50 per cent of the candidates enrolled so far.
Most of the youth participating in HCCB’s career development programme come from the rural and semi-urban areas and lack the skill-sets that employers are looking for. It is indeed heartening to note that many of these candidates, on completion of the training programs at the respective CDCs, are being employed by some prominent corporates. Easy Day, Big Bazaar, McDonalds, KFC, Eureka Forbes, to name a few. Overall, more than 7600 youth have been placed in different organisations till date with an average salary of around Rs. 8500 per month. Out of the total youth placed, over 3000 are girls.
Starting with the establishment of the first CDC in 2011 in the vicinity of its plant in Hapur district, Uttar Pradesh, there are four more centres in different parts of the country. The other four centres are located at Ameenpur in Telangana, Khurda in Odisha, Pirangut in Maharashtra and Bidadi in Karnataka.
Equipped with modern facilities such as desktops with Internet, audio-visual learning aids and library, these centres are designed to foster a learning environment. In collaboration with NIIT Foundation, the Career Development Centers design and develop training courses keeping in mind the requirements of entry level jobs in the organised sectors - retail showrooms, services, food & beverage industry. These are high demand sectors and hence it is relatively easy for skilled youngsters to gain employment in these domains.
Skill development initiatives are a part of the company’s community development program to bring quality training within easy reach of the educated, unemployed and underserved youth.
In its continuing efforts to provide industry-ready skills to the underserved youth, each career development centre offers training courses ranging from one-week duration to four-month duration. Administered by the trained faculty at NIIT Foundation, the pedagogy involves both class room training as well as practical aspects through industry visits, group activities and counseling. Apart from certificate programs in auto retail, manufacturing, customer services, BPO voice-based processes and basic IT skills, the course curriculum also provides soft skills training around personality development, English speaking, English writing and job readiness. On completion of the job-oriented course, each student gets four interview opportunities and the faculty and career counselors help in preparing candidates for job interviews.
The HCCB initiative assumes greater significance in view of the prevailing unemployment scenario. The company through CDC is attempting to achieve the twin goals of (1) bridging the skill gap of the youth and (2) an organisation’s hunt for employable talent.
Integrated farming System in Bidadi
One of the goals at HCCB is to simply improve the lives of people and communities. And, the way we are doing that is by acting as a catalyst to bring change to Indian communities. We have embraced sustainability in innovative ways and have been reducing our carbon footprint greatly. But, we are not alone on this sustainable journey. We are growing and developing with Indian rural communities around us. The Integrated farming system (IFS), being implemented in Bidadi, Karnataka, is a perfect example of this.
The aim was to help marginal farmers transform into progressive farmers and increase their yield and income. To do this, we distributed horticulture saplings, cycle weeders, waste decomposing cultures, and more, free of cost to farmers to adopt modern farming.
In addition to that, we conducted training sessions for farmers to best utilise the equipment given. Farmers were educated about double cropping, sustainable agriculture, and plant protection and other such methods that would increase their yields. Soil testing was done to help farmers decide on a suitable crop to grow. This helped farmers make the right decisions and minimise their risk. We also constructed composting pits and helped farmers understand how to best implement and reap the benefits of vermicomposting.
Our dual approach of providing modern equipment and teaching new farming methods had a far-reaching impact. These better methods of farming improved their agriculture approach and made them more sustainable. We have implemented many such programs to improve the livelihood of marginal farming community. With these initiatives, we empowered the marginal farmers to earn a respectable income in a sustainable manner.
Our action in Bidadi is proof that even the smallest steps can create a large ripple of change. As we evolve, our partners and Indian communities should evolve with us. Our dream is to build a culture of sustainability and ownership among the farming community that can be proud of.
Sustainable-Agriculture
Sustainable agriculture implies ensuring our agricultural suppliers meet relevant standards related to environment protection, responsible farm management and human and workplace rights. Our sustainable agricultural interventions are aimed at transforming the fruit and agricultural value chain in India, and the lives of lakhs of farmers who are part of our ecosystem.
Ultra High Density Plantation
Under the Unnati initiative, HCCB has partnered with Jain Irrigation to support mango and orange farmers in increasing their yield. The traditional practice is to grow large trees at every 10 metres approximately, which leads to loss in productivity over a period of time. The new-age technique of UHDP ensures that high yielding, low height mango trees are grown in less than 1/3rd the original area thereby increasing the productivity and income of farmers.
Ramesh Naidu reaping the benefits of Unnati UHDP project
Ramesh Naidu, a farmer from a small village in Chittoor District of Southern India, lives in a joint family along with his brothers, their spouses and children. Like every parent and head of family, he aspired to dream big for his and his brothers’ children. But this was almost impossible due to the severe drought that had afflicted his village around 15 years ago.
Like Naidu, many farmers across the country have been dependent on nature for their farm’s yield and often struggle to provide consistent and large amounts of produce. As a result, their output and agricultural income suffer.
But this son of soil bought 35 acres of land in his village from his major business savings in Bangalore. He bought an existing orchard of mangoes, but wanted to make agriculture more profitable. That’s when he decided to try the Ultra High Density Plantation (UHDP) programme under Project ‘Unnati’, a unique and sustainable agricultural practice.
Like the 1,000 farmers across Chittoor districtand many more states, Naidu is part of Project Unnati, a Coca-Cola India and Jain Irrigation initiative to increase productivity of the local mango crop. Jain Irrigation processes the mango pulp and is the largest supplier to Coca-Cola’s Maaza brand, which is now in its 40th year. Maaza uses Alphonso pulp which is sourced from farmers in Maharashtra and Gujarat.
Now, Naidu is hopeful that his 14-acre mango farm at Samireddypalli village, 12 km from Chittoor town in Andhra Pradesh, will yield five tonnes of mango per acre this year. Having taken up the UHDP programme three years ago, Naidu planted over 600 trees in an acre, compared with just 40 trees in the traditional practice, which yielded him just 1.5 tonnes of mangoes an acre.
The objective is to harness the higher productivity potential of mango farms to benefit all stakeholders in the ecosystem. Farmers gain through increased yield, Jain Irrigation buys better quality produce and Coca-Cola can source this key ingredient locally for Maaza.
While in phase 1, Unnati has successfully trained farmers on UHDP technology and encouraged them to adapt to the new, sustainable agriculture practices, phase 2 is focused onbuilding deeper relationships and engagement with farmers.
Today, Ramesh Naidu is happy that he has been able to bring his parents back to their native place and generate enough money to be self-sustainable in the village itself. He is happy that like every parent and head of family, he had aspired to dream big for his and his brothers’ children. And now, he has sent two of his sons and a nephew to pursue a career in Engineering at Bangalore and Hyderabad respectively. That’s not all. Naidu has even encouraged his daughter, who goes to a school far away from their village in Hyderabad, to pursue higher education.
Our Approach
Our goal is to align business interests with the interests of the communities where we operate, and to make a difference in areas where we are most qualified, credible and capable.
Our commitment to Sustainability goes beyond aligning with natural forces. We measure our growth by the constant updation of our business practices, be it manufacturing, packaging or distribution. We also encourage our partners and the extended ecosystem to do the same.
At HCCB, we have always believed in giving back to the communities in which we operate, endeavoring to make a difference in the lives of the people around us. Our sustainable development goals are key to building a strong business for the future and to ensure economic value generation, in a socially inclusive and responsible manner.
CSR Policy
Our objective is to grow our business, while making a lasting positive difference in the communities we serve. HCCB has been undertaking community initiatives, focusing on sectors such as education, women empowerment, environment preservation, rain water harvesting, plastic recycling, active and healthy living, skill development and inclusive economic growth.
- Background
- Mission and Objective
- Guiding Principles
- Implementation and Monitoring:
- Resources - Funding and Allocation:
- Exclusion:
- Composition/ Appointment/ Removal of Member of CSR Committee
- Role and Responsibilities of the CSR Committee
- Amendments to the CSR Policy:
- Reporting of CSR Activities:
- General Provisions in terms of Applicable Law:
At, Hindustan Coca-Cola Beverages Private Limited (hereinafter “HCCBPL”/ the “Company”), as a bottling partner of the Coca-Cola System in India, we have always believed in returning to the communities in which we operate, endeavoring to make a difference in the lives of people around us. We recognise that the key to building a strong business for the future is to ensure economic value generation, in a socially inclusive and responsible manner.
With an objective to grow our business while making a lasting positive difference in the communities we, HCCBPL, serve has been undertaking community initiatives, focusing on sectors such as education, women empowerment, environment preservation, active and healthy living, skill development inclusive economic development.
Carrying forward with this belief, we are now formulating this Policy, titled ‘Hindustan Coca-Cola Beverages Private Limited Corporate Social Responsibility (CSR) Policy (hereinafter the “CSR Policy”/ “Policy”).
The content of this Policy shall act as an approach and direction for selection, implementation and monitoring of its CSR activities as approved by the Board on recommendation of the CSR Committee from time to time.
The Policy outlines HCCBPL’s mission, as a responsible corporate citizen, to make a positive difference in the communities it serves. In alignment with the aforesaid, HCCBPL, through its CSR initiatives, will continue to enhance value creation in the community in which it operates, through its services, conduct & initiatives, so as to promote sustained growth for community, in fulfillment of its role as a Socially Responsible Corporate.
The Policy aims at enabling and facilitating accomplishment of Company’s CSR objectives, broadly outlined as follows:
- Ensure an increased commitment at all levels in the Company, to operate its business in an economically, socially & environmentally sustainable manner, while recognizing the interests of all its stakeholder groups.
- To undertake activities that benefit the communities in which it operates and result, over a period of time, in enhancing the quality of life, skills and economic well-being of the local populace.
- To generate, through its CSR initiatives, community goodwill for HCCBPL and help reinforce a positive & socially responsible image of HCCBPL as a responsible corporate entity.
In line with the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014, as amended from time to time (hereinafter the “CSR Rules”), along with Circulars/ Notifications as issued by the Ministry of Corporate Affairs (hereinafter the “Ministry”), the Policy promulgates the general framework of HCCBPL’s corporate social vision of undertaking socially useful initiatives that enhance welfare and sustainable development of the community at large. It lays down the guidelines and mechanism for undertaking Company’s CSR activities specifying inter alia, the sectors/ areas of Company’s CSR activities, overview of Company’s CSR projects/programmes (hereinafter the “CSR projects”) along with the norms regarding its functioning and responsibilities. .
This Policy shall apply to all the CSR initiatives and activities taken up by the Company in accordance with Schedule VII of the Companies Act, 2013 and as allowed by Ministry from time to time for the benefit of different sections of the community, specifically the deprived and the under-privileged.
HCCBPL is vigilant in its enforcement of corporate principles and is committed towards sustainable development and inclusive growth. Therefore, it constantly strives to create a culture, which emphasizes on integrating CSR values with business objectives. In line with section 135 read with rules made thereunder and Schedule VII of the Companies Act, 2013 thereto, HCCBPL’s CSR activities (hereinafter “CSR Activities”) will be within the following areas:
The Policy aims at enabling and facilitating accomplishment of Company’s CSR objectives, broadly outlined as follows:
- Eradicating hunger, poverty and malnutrition, ‘‘promoting health care including preventive health care’’ and sanitation (including contribution to the Swach Bharat Kosh set-up by the Central Government for the promotion of sanitation) and making available safe drinking water.
- Promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly and the differently abled and livelihood enhancement projects.
- Promoting gender equality, empowering women, setting up homes and hostels for women and orphans; setting up old age homes, day care centers and such other facilities for senior citizens and measures for reducing inequalities faced by socially and economically backward groups.
- Ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agroforestry, conservation of natural resources and maintaining quality of soil, air and water (including contribution to the Clean Ganga Fund set-up by the Central Government for rejuvenation of river Ganga).
- Protection of national heritage, art and culture including restoration of buildings and sites of historical importance and works of art; setting up public libraries; promotion and development of traditional art and handicrafts.
- Measures for the benefit of armed forces veterans, war widows and their dependents, Central Armed Police Forces (CAPF) and Central Para Military Forces (CPMF) veterans, and their dependents including widows].
- Training to promote rural sports, nationally recognised sports, paralympic sports and olympic sports.
- Contribution to the prime minister's national relief fund or Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) or any other fund set up by the central govt. for socio economic development and relief and welfare of the schedule caste, tribes, other backward classes, minorities and women.
- Contribution to incubators or research and development projects in the field of science, technology, engineering and medicine, funded by the Central Government or State Government or Public Sector Undertaking or any agency of the Central Government or State Government; and
- Contributions to public funded Universities; Indian Institute of Technology (IITs); National Laboratories and autonomous bodies established under Department of Atomic Energy (DAE); Department of Biotechnology (DBT); Department of Science and Technology (DST); Department of Pharmaceuticals; Ministry of Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homoeopathy (AYUSH); Ministry of Electronics and Information Technology and other bodies, namely Defense Research and Development Organisation (DRDO); Indian Council of Agricultural Research (ICAR); Indian Council of Medical Research (ICMR) and Council of Scientific and Industrial Research (CSIR), engaged in conducting research in science, technology, engineering and medicine aimed at promoting Sustainable Development Goals (SDGs).
- Rural development projects.
- Slum area development.
Explanation- For the purposes of this item, the term ‘slum area’ shall mean any area declared as such by the Central Government or any State Government or any other competent authority under any law for the time being in force.
- Disaster management, including relief, rehabilitation and reconstruction activities.
- Any other activity (ies) specified by the Ministry from time to time.
The Corporate Social Responsibility Committee (hereinafter the “CSR Committee”) shall have power to constitute such number of sub-committees, as it may deem appropriate, for the purpose of implementation and monitoring of Company’s CSR projects or may appoint any outside Implementing Agency to implement and monitor the CSR activities of HCCBPL.
The process for implementation of CSR projects will generally involve the following:
- Identification of projects: Identification of projects to be done by means of the following:
- Need identification Studies by professional institutions/agencies.
- Internal need assessment by the concerned HCCBPL department(s).
- Receipt of proposals/ requests from local Civic Bodies/ District Administration/local Govt. etc.
- Discussions and request with local representatives/ Civic bodies/ Citizen’s forums/ NonGovernmental Organizations (NGOs).
- Geographic Coverage of CSR projects: CSR Activities and the projects thereunder would generally be carried out/ focused in the local areas and/ or communities where HCCBPL has operations / plants / premises.
- Approvals: CSR projects as may be identified, will be required to be put up to the CSR Committee and thereafter to the Board of Directors of the Company for its approval, at the beginning of each financial year or on such regular intervals, as required by the CSR Committee, with due recommendations of the concerned department(s).
- Execution: CSR projects, as may be approved, would be executed under the supervision of the concerned department(s) of the Company either directly by the Company, and if required, with assistance from or through any of following implementing agencies:
- Company established under Section 8 of the Companies Act, 2013 or registered public trust or a registered society, established by the Company, either singly or along with any other Company, or
- Company established under Section 8 of the Act or a registered trust or a registered society, established by the Central Government or State Government, or
- Any entity established under an Act of Parliament or a State legislature, or
- Company established under Section 8 of the Act, or a registered public trust or a registered society, other than established by the Company itself, and having an established track record of at least three years in undertaking similar activities.
- Criterion for identifying an implementing agency: While identifying projects the concerned department(s) will also identify the implementing agency, if any is required, for execution of the said project and ensure that implementing agency meets the following minimum criteria:
- It must be registered with the Central Government and must have a valid unique CSR Registration number;
- It must be registered under section 12A and 80 G of the Income Tax Act, 1961;
- It must have valid registration certificate under law in which it is incorporated / established;
- It shall have an established track record of three years in undertaking similar projects;
- The antecedents of the implementing agency are verifiable/subject to confirmation.
- Annual Action Plan: The annual action plan of CSR Activities shall be formulated by the CSR Committee and recommended to the Board for the approval which shall include the following:
- CSR projects or programmes to be undertaken in area or subjects specified in Schedule VII of the Act;
- The manner of execution of such projects or programmes;
- The modalities of utilisation of funds and implementation schedules for the projects or programmes;
- Monitoring and reporting mechanism for the projects or programmes; and
- Details of need and impact assessment, if any, for the projects undertaken by the Company.
- Monitoring:
- CSR Committee to institute a transparent monitoring mechanism for ensuring implementation of CSR projects undertaken or proposed to be undertaken as CSR Activities, and implementation schedule for the same.
- For monitoring on project basis, if required, a monitoring / reporting process will put be in place, by the concerned HCCBPL department(s), for each of the projects or categories of projects, depending on the specifications and modalities of such projects.
- To undertake impact assessment through an independent agency of the CSR projects, if required.
- To engage professionals, consultants and international organization, if required for monitoring the CSR activities.
- To obtain utilization certificate from Chartered Accountant or Statutory Auditor of Implementing / executing agency, if required.
- For achieving its CSR objectives through implementation of CSR projects, HCCBPL will allocate, in every financial year, at least two per cent of the average net profits of the Company made during the three immediately preceding financial years.
Surplus, if any, arising out of the CSR activities shall not become part of the business profit of the Company and shall be ploughed back into the same project or transferred to the Unspent CSR Account and spent in pursuance of CSR Policy and annual action plan of the Company or transfer such surplus amount to a Fund specified in Schedule VII, within prescribed time period under law. - CSR expenditure in excess of the required statutory obligation in a financial year may be set off against the CSR obligation in the manner as prescribed under the law.
- Any unspent/unutilized CSR Funds of a particular year shall be treated in the manner as prescribed under the law.
The following activities shall not be included under CSR, unless otherwise exempted by Ministry:
- Any activity undertaken by the Company outside India except for training of Indian sports personnel representing any State or Union territory at national level or India at international level;
- Contribution of any amount directly or indirectly to any political party under section 182 of the Act;
- Activities benefitting employees of the Company as defined in clause (k) of section 2 of the Code on Wages, 2019 (29 of 2019);
- Activities supported by the Companies on sponsorship basis for deriving marketing benefits for its products or services;
- Activities carried out for fulfillment of any other statutory obligations under any law in force in India;
Appointment and removal of the members of the CSR Committee shall, at all times, be at the sole discretion of the Board of Directors of the Company (hereinafter the “Board”).
The Board may also, at its discretion, vary the composition of the CSR Committee, its role, powers, functions and duties, as it considers fit from time to time.
The CSR Committee shall be required to:
- Formulate and recommend to the Board, a CSR Policy, inclusive of the details and specifications as required under the Companies Act,2013 read with CSR Rules;
- Review/ monitor the CSR Policy from time to time and, as and when required, suggest amendment(s) for Board’s consideration;
- Implementation and monitoring of CSR Policy so as to ensure that it is in compliance with the Company’s CSR mission and objectives;
- Formulate Annual Action Plan and recommend the same to the Board for approval;
- CSR Committee to submit its report to the Board, for the financial period ending 31st March of every year, on the CSR activities and projects undertaken by the Company;
- Ensure optimum utilization of CSR Funds for CSR projects relating to CSR Activities, bearing in mind that as per proviso to section 135 (5) of the Companies Act, 2013 Company is required to give preference to the local area(s) around which it operates for spending the CSR Funds;
- Ensure that CSR projects undertaken by the Company, fall within the purview of the CSR Activities, as provided in the CSR Policy and under the applicable law;
- Consider that the CSR projects focus on integrating business models with social and environmental priorities and processes in order to create shared value;
- Institute a transparent monitoring mechanism for ensuring implementation of CSR projects undertaken or proposed to be undertaken as CSR Activities;
- Review/ monitor progresses of CSR projects and implementation schedule for the same; and
- Constitute sub-committees for implementation of the CSR Policy or any part thereof, if required.
The Board of Directors shall have power to amend the CSR Policy, at any point of time, as they deem appropriate, with or without a recommendation from the CSR Committee.
- CSR Committee to submit its report to the Board, for the financial period ending 31st March of every year, on the CSR activities and projects undertaken by the Company;
- The said CSR activities and the projects along with impact assessment reports, if required, will also be reported, in the Annual Board Report;
- Chief Financial Officer or the person responsible for financial management shall certify that the funds so disbursed have been utilized for the purposes and in the manner as approved by the Board of Directors;
- The composition of the CSR Committee, CSR Policy and Projects approved by the Board shall be posted on the website of the Company.
Words and expressions used and not defined in this Policy shall have the same meaning assigned to them in the Companies Act, 2013 read with Rules made thereunder and any other guidelines/ regulation(s) promulgated by statutory authorities.
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Hindustan Coca-Cola Beverages Private Limited
Brigade Magnum,
Tower A, 9th Floor, Amruthahalli,
Kodigehalli Post, Bangalore - 560092
Hindustan Coca-Cola Beverages Private Limited
B-91, Mayapuri Industrial Area Phase - I,
New Delhi - 110064