Sustainability Policy - Indian Oil Corporation Limited

INDIAN OIL CORPORATION LTD.
Sustainability Policy
with Framework, Roles and Responsibilities
and Organisation Structure
Renewable Energy & Sustainable Development
Corporate Office
23 rd January 2013

IndianOil’s Sustainability Policy
“IndianOil shall continuously strive to be the leading energy provider of the
country and in that pursuit follow sustainable practices and technological
processes that are safe, efficient and environmentally benign to the society.”
In pursuit of this Policy, IndianOil is committed:
To conduct business in a sustainable manner while meeting stakeholders’ aspirations
for value creation and growth
To enrich quality of life of communities around its locations
To work towards lowering waste and carbon footprint by judicious and efficient use of
resources
To engage employees & business partners as change agents for sustainable practices
To be a partner in nation’s strategy for deployment of sustainability initiatives

Corporate Sustainable Development Framework
At IndianOil, we endeavour to achieve our environmental, societal and economic goals
through mass awareness and change of mindset leading to innovative sustainability
practices across the organisation by timely ensuring:-
Ethical management practices:
Transparency, integrity and accountability in IndianOil’s functioning
Shareholder Value:
Sustaining the company’s profitability through value creation and efficient operations
and processes
Prudent use of Resources:
Through efficient use of energy, water, land, input materials and any other resource
Process & Product Stewardship:
Supply and deployment of sustainable processes, products and services through
continuous innovation and adoption
Bio, Renewable and Clean Energy Portfolio:
Enhanced focus to promote Bio, Renewable and Clean energy portfolio
Technology towards Sustainable Development:
Absorption and adoption of energy efficient and environment-friendly technology.
Specific focus to develop in-house technology through R&D
Promotion of robust Health, Safety and Environment practices:
Provide a safe and healthy environment in and around the workplace through
promotion of a strong culture of safety and care for environment
Biodiversity:
Projects and operations do not have significant impact on biodiversity.
Minimal impact on Climate Change:
Limiting the GHG and other emissions and adopting mitigation policies in line with
India’s climate change strategy
Responsible Management of Waste:
Reducing, reusing, recycling and environmentally safe disposal of waste streams
Awareness Generation on Sustainable Development:
Generating awareness on sustainability development amongst the employees and
business associates/stakeholders

Societal Needs:
Safeguarding human rights within our sphere of influence, contributing to community
needs, investing in training and education, promoting arts and sports
Monitoring & Reporting:
Periodic monitoring, reporting and disclosure of performance on sustainability
parameters to stakeholders

Sustainable Development: Roles & Responsibilities
The Chairman and the Board of Directors (BoD)
The Board of Directors (BoD) is the senior-most governance body that provides
direction and reviews the progress of the overall Sustainability Plan and implementation
program twice a year
Board Committee on Sustainable Development (SD)
The Board Committee on SD is a committee to approve SD plan and oversee SD
performance. It comprises of 3 Independent Directors and 3 Functional Directors with
an independent director as its Chairman.
Department of Renewable Energy and Sustainable Development (RE&SD)
RE&SD department at Corporate Office formulates the Corporation's Sustainability
Program and facilitates its implementation through Divisions. The RE&SD group collects
and collates information / data and prepares the Corporate Sustainability Report.
Human Resources (HR)
The HR group plays an important role of spearheading Sustainability Initiatives by
encompassing diverse workforce and providing opportunities to all sections of society
and undertaking their need-based training towards their holistic development. It also
propagates green initiatives in various establishments through its Administration,
Welfare and Communication departments.
Corporate Social Responsibility (CSR)
IndianOil, through its CSR Policy, to formulate CSR projects and programs in sync with
the stated sustainability goals and objectives of the Corporation.
HSE
The HSE group plays a major and important role in taking care of health, safety and
environment norms at all locations and in all activities & processes by formulating and
implementing robust HSE policies, plans and guidelines in sync with Sustainable
Development initiatives of the organisation.
R&D
The R&D group develops new formulations and cutting edge technology including new
renewable & alternate energy to propel Sustainable Development initiatives for existing
and future businesses of IndianOil.
Finance
Finance plays a vital role in guiding and monitoring the functional groups towards
effective utilization of resources and enhanced economic value added keeping in view
the overall sustainability objectives. It shall also lay down guidelines for evaluation of

green and sustainability investments to facilitate achievement of IndianOil's goals in
Sustainable Development while optimising the associated risks.
Submission of Sustainability Report along with details of the frame work under which
Business Responsibility Report is prepared as a part of Annual Report by Company
Secretary as per latest SEBI Listing agreement.
Divisional Business Leadership
All the divisional business leaders play pioneering role of developing a sustainability
culture within the organisation and positioning IndianOil’s initiatives amongst external
stakeholders.
Corporate Communication and Branding
The Corporate Communication and Branding group to play a crucial role in emphasizing
on Sustainability Policies and Programs of IndianOil as an integral part of the
Corporation's business philosophy through publicity, media interface and leveraging the
same for branding.
Marketing Network
Through the vast network of marketing touchpoints with special emphasis on dealers
and distributors spread across the country, IndianOil to propagate sustainability culture
and products. Sustainability initiatives to be showcased and demonstrated for larger
adaptability amongst public at large.

Organisation Structure for monitoring Sustainability
Performance
A Committee of the Board on Sustainable Development (SD) headed by an Independent Director
would be monitoring and guiding the SD activities of the Corporation.
The ‘Renewable Energy & Sustainable Development’ Group at the Corporate level headed by an
Executive Director under Director (Planning & Business Development) would be developing
policies and formulating plans for taking up sustainability measures within the Corporation at
each of its Divisions and establishments.
Each Division will have an SD Cell at its Head Office headed by a Senior Officer and may be also
set up at Refineries, Regional Offices in Pipelines Division and at State Offices in Marketing
Division as well.
Department / officer(s) will be designated at units, which / who will be responsible for
implementing SD policies/action plans and also taking initiatives on renewable energy, energy
efficiency, water and waste management etc. and reporting as required.
Targets:
All Divisions will be responsible for achieving Government MoU Targets. SD parameters will
also be included in the internal MoUs of each Division. SD projects/activities are categorized
either as long, medium or short term which are further classified into mandatory or nonmandatory
targets which are to be embedded into KRAs of all key officers carrying 5%
weightage.
Monitoring & Review:
All Units/establishments will have a structured system for monitoring of all SD related
activities. Monitoring is also to be carried out at State / Region, HO levels of Divisions. Divisions
will also provide periodical reports and feedback to RE&SD group at Corporate Office, who in
turn will keep EC and Board Committee on Sustainable Development appraised.