Ambuja Cement has a well embedded business risk management process for identifying risks and opportunities on corporate as well as operational levels. The overall objective is to improve awareness of the Company’s risk exposure and appropriately manage it. Materiality reviews are being conducted in conjunction with the annual business planning cycle. Risk assessment and management policy support the sustainable business module for increased profitability. Our risk management approach incorporates sustainability and provides management with useful data for identifying emerging issues and developing new and better products and processes that help protect corporate reputation and improve shareholder value. Sustainability gives us an opportunity to look at risks in a broader than a traditional risk management framework, which is to look beyond economic, strategic and operational factors and to include social and environmental considerations. Sustainability allows corporations to consider emerging risk areas and to look for opportunities presented by risks that are overlooked by other analytical and systems-driven approaches. A more holistic point of view assures sound financial management, ethical corporate governance and transparency with respect to information provided to employees and other stakeholders profitability.

ACL’S SUSTAINABILITY RISKS/OPPORTUNITIES ASSESSMENT 2013

Our risk management approach incorporates sustainability and provides management with useful data for identifying emerging issues and developing new and better products and processes that help protect corporate reputation and improve shareholder value.

Sustainability gives us an opportunity to look at risks in a broader than a traditional risk management framework, which is to look beyond economic, strategic and operational factors and to include social and environmental considerations.

Sustainability allows corporations to consider emerging risk areas and to look for opportunities presented by risks that are overlooked by other analytical and systems-driven approaches. A more holistic point of view assures sound financial management, ethical corporate governance and transparency with respect to information provided to employees and other stakeholders. Examples of emerging issues of concern in the sustainability area for our industry include climate change, social justice, depletion of non-renewable resources, brand damage (including boycotts), shareholder actions related to sustainability issues and disclosure of historic environmental liabilities. Sustainability Risk Management also requires the evaluation of many aspects of the entity’s operations that are not part of most current corporate programs.