Ambuja Cement Ltd.

Materiality Assessment

Identifying Impactful Issues

Ambuja Cements applies the principle of materiality to shape its ESG framework, integrating insights from management and stakeholders to identify key economic, environmental, and social impacts. A thorough review conducted during the reporting period refined previously identified material topics, ensuring alignment with evolving priorities and stakeholder expectations. This process enhances the Company’s strategic focus and long-term sustainability efforts.

Materiality Process

Analyse	Determine	Evaluate	Emphasise	Authenticate
Gain a comprehensive understanding of Ambuja Cements’ operations, sustainability context, applicable laws and regulations, and business relationships. Additionally, address the needs and expectations of both internal and external stakeholders effectively.	Evaluate the actual and potential impacts of the Company’s products, activities, and stakeholder relationships on the economy, environment, and society. These impacts are systematically categorised as positive or negative based on the outcomes of assessments and due diligence processes conducted throughout the year.	Assess the significance of both positive and negative impacts, evaluating their severity and the likelihood of occurrence. This ensures a comprehensive understanding of their potential effects.	The leadership team reviews the significance of the identified impacts, ensuring a thorough evaluation. These impacts are then categorised into distinct material topics for focused action.	The updated material topics are thoroughly reviewed and finalised in collaboration with senior management, ensuring alignment with strategic priorities.

Material Issues for Enterprise Value Creation

The Company has identified 15 material topics critical to its business and aligned them with Key Performance Indicators (KPIs) to address and integrate them into the Enterprise Risk Management (ERM) framework. Additionally, Ambuja Cements is committed to reviewing these material topics every two years to ensure alignment with its evolving business objectives.

Environment

Material Topics	GRI Topics	Impacts Identified	Key Performance Indicators
Climate & Energy	Energy Emissions	Rise in global warming Increased dependency on fossil fuels Carbon emission reduction Reduced dependency on fossil fuels Quarrying and land	Energy consumption (within the organisation) Energy intensity Reduction of energy consumption Direct (Scope 1) GHG emissions Energy Indirect (Scope 2) GHG Emissions Other Indirect (Scope 3) GHG Emissions GHG Emissions Intensity
Air Quality	Emissions	Human health deterioration Dust and air pollution	Oxides of Nitrogen, Sulphur and other significant air emissions
Water Management	Water and Effluents	Reduced dependency on natural water resources Water scarcity	Total water withdrawal Water discharged Water consumption
Circular Economy	Waste	Industry waste minimisation Natural resource conservation	Waste generated Waste diverted from disposal Waste Directed to Disposal
Biodiversity	Biodiversity	Ecosystem conservation	Operational sites with high biodiversity value Conservation efforts across locations Species preservation Number of trees planted
Sustainable Construction	Non GRI Topic	Reduction in emissions and negative environmental impacts	Percentage of blended cement used

Social

Material Topics	GRI Topics	Impacts Identified	Key Performance Indicators
Human Capital Development	Employment Training and Education	Improved productivity and performance	Average hours of training per year per employee Programmes implemented and assistance provided to upgrade employee skills Employees receiving regular performance and career development reviews Benefits provided to full- time employees to take care of their health, family and death/disability Return to work and retention rates of employees that took parental leave
Diversity and Inclusion	Diversity and Equal Opportunity	Increase in employment opportunities for diverse workforce	Diversity of Board and employees Women representation across cadres Ratio of basic salary and remuneration of women to men
Human Rights	Non-discrimination Freedom of Association and Collective Bargaining Child Labour Forced or Compulsory Labour Security Practices	Robust policies and governance to reduce risk of human rights violations Violations of human rights impacts the stakeholders and business reputation	Total number of incidents of human rights and status of corrective actions taken Number of sites covered for human rights assessment Trainings related to human rights
Occupational Health & Safety	Occupational Health and Safety	Reduced incidence of occupational injuries Enhanced employee morale and satisfaction Occupational illnesses and exposure risks Reduced risk of injury and loss of life	Number of fatalities, Lost time injuries and other incidences reported Initiatives undertaken to promote good health and educate community on prevention of diseases
Community Relations	Biodiversity	Indirect economic impacts	Percentage of operations with implemented local community engagement, impact assessments, and/or development programmes
Customer Relationship Management	Non GRI Topic	Improving customer experience and therefore profitability of business	Implementing Customer Relationship Management and maintain the data base

Governance

Material Topics	GRI Topics	Impacts Identified	Key Performance Indicators
Corporate Governance and Business Ethics	Anti-corruption Anti-competitive Behaviour	Trust and Transparency	Communication and training about anticorruption policies and procedures Confirmed incidents of corruption and actions taken Legal actions for anti-competitive behaviour, anti-trust, and monopoly practices Significant fines and nonmonetary sanctions for noncompliance with environmental laws/regulations in the social and economic area
Sustainable Supply Chain	Supplier Environmental Assessment Supplier Social Assessment	Environmental and social risks across the supply chain Enhanced indirect employment	Percentage of suppliers assessed for which environmental and social risks assessed for improvement
Information Technology and Data Privacy	Customer Privacy	Gaining trust of employees and customers through enhanced information technology Threat to data safety due to potential lacunae in IT systems	Total number of substantiated complaints received concerning breaches of customer privacy Number of systems/ processes/ mechanisms automated or digitalised