Value created for our Stakeholders
We conduct a comprehensive stakeholder engagement exercise to understand the expectations of our stakeholders (internal and external) and identify the material topics. Also, as part of the management systems and Site Specific Impact Assessment (SSIA) implemented at the units, the Company has identified what matters to the business and where does it matter the most in our value chain. These exercises give us an opportunity to identify concerns amongst various stakeholder groups, fostering transparency and building confidence for their desired satisfaction. Availability of resources and stakeholder relationships are two major influencers affecting the organizational growth. In order to maintain security on both the major influencers, our operations work towards achieving excellence in all aspects. A great thrust on the empowerment of our human capital is maintained. We are increasingly driving technological disruptions to ensure sustainable business growth that reduces our operational footprint. Effective and efficient utilization of assets helps us gain a competitive advantage, while also uplifting the communities that we operate in.
Our integrated thinking is reflected through
our approach of creating value for our stakeholders.
While estimation for 2019 is still under process, our net positive contribution to environment and society in 2018 was about INR 1,490 Crore as compared to about INR 750 crore in 2012. Most of this value creation was achieved through fly ash utilization, water harvesting and recharge projects, agro-based livelihood creation and use of Alternative Fuels and Raw materials (AFR).
During the year under report, a Social Return On Investment (SROI) study was conducted for 6 SEDI locations. The timeline included trainings held for a 3 year period from 2015-18. The study aimed to understand the stakeholder perception of the socio-economic value creation by training for skill-based livelihoods. The study captured the impact through engaging stakeholder with consultations, surveys, on-site visits and found that the average SROI was 5.56 for every Rupee invested.
In recent past, we also conducted SROI studies focussed on evaluating social impact of water resource management related CSR projects. These SROI studies (conducted in 2017) of Watershed Development project at Darlaghat (Himachal Pradesh) found that for every 1 million invested by Ambuja Cements, there has been a resultant social return of 8.4 million. This is succeeding to the 2016 SROI results of 13 million at Kodinar (Gujarat) and 5 million at Rabriyawas (Rajasthan), respectively for every 1 million invested. These SROI results aid our decisions to make our CSR investments more strategic.