CORPORATE SOCIAL RESPONSIBILITY POLICY OF TETRA PAK … · 2020. 10. 9. · Tetra Pak India’s CSR...

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CORPORATE SOCIAL RESPONSIBILITY

POLICY OF

TETRA PAK INDIA PRIVATE LIMITED

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CONTENTS

SR.NO. PARTICULARS PAGE NO.

Preamble 3

Necessity for Policy on CSR 4

I. Applicability 5

II. Defining our CSR Policy 5

III. Constitution of the CSR Committee 6

IV.

Composition of CSR Committee of the Board

(a) Chairman of the CSR Committee

(b) Members of the CSR Committee

6

V. Roles and Responsibilities of the CSR Committee 7

VI. Meetings of the CSR Committee 8

VII. Activities currently undertaken under CSR Programme 8

VIII. Addition of CSR Activity not being a part of approved

CSR Programme 9

IX. Quorum of the Meeting 9

X. Rules governing CSR Policy 10

XI. Implementation Schedules of CSR Activities, Funding, Allocation and Tax

Treatment of CSR Spend 12

XII. Role of the Board of Directors 13

XIII. Amendment in CSR Policy 14

Annexure A: Format of the Annual Report on CSR initiatives 15

Annexure B: Schedule VII of the Companies Act, 2013 24

Annexure C: Definitions 25

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Preamble

• Corporate Social Responsibility (CSR) is the process by which an organisation

thinks about and evolves its relationships with stakeholders for the common

good and demonstrates its commitment towards society by adopting

appropriate business processes and strategies. Companies should conduct

their business in such a way that it brings about a positive overall impact on

society and the environment.

• CSR cannot be equated with charity or mere donations. It is a way of

conducting business - by which corporate entities visibly contribute to the

social good. Socially responsible companies do not limit themselves to using

resources to engage in activities that enhance their profits. They use CSR to

integrate economic, environmental and social objectives with the company’s

operations and growth.

• Further, the Tetra Pak Group, being a member of the UN Global Compact,

ensures that its subsidiaries and group companies are always in accordance

with the UN Global Compact principles on environment in conjunction with

CSR.

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Necessity for Policy on CSR

• Business organisations do not operate in a vacuum. They depend wholly and solely on

society for their survival. Societies provide resources such as labour, material and

infrastructure. This holds every business enterprise responsible socially, economically,

ethically and morally towards the environment in which it operates.

• As per this principle, business entities are expected to manage their operations in such

a way as to enhance economic growth, increase competitiveness, and at the same time

ensure environmental protection and promote social responsibility along with

consumer interest.

• Being a packaging company, the nature of products manufactured by Tetra Pak India

Private Limited (“the Company”) is such that it has an impact on the environment and

utilisation of natural resources - and as such, the Company has a social responsibility

towards the society / country where it operates by producing environmentally friendly

products.

• At Tetra Pak, we live by our motto ‘Protects What’s Good’. Protecting food has long

been at the very heart of our business. But it goes further: it is about protecting people

- our employees, the communities in which we operate, and society. And it is about

protecting futures - by developing products and services that will support the future

growth of our customers and by acting and operating in ways that best protect the

environment. We are committed to fulfil these responsibilities by creating a socially and

environmentally sustainable policy which will bring considerable environmental

benefits / protection to society and at the same time ensure upliftment of the society

on various fronts.

• Taking these points into consideration, the Company, in consonance with the legal

framework on Corporate Social Responsibility, hereby frames the policy to fulfil its

larger social, economic, ethical and moral responsibilities while balancing

environmental sustainability.

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I. Applicability

This is applicable from 1 April 2014

II. Defining our CSR Policy

This policy encompasses the Company’s philosophy for delineating its

responsibility as a corporate citizen and lays down the guidelines and mechanisms

for undertaking socially useful programmes for the welfare and sustainable

development of the community at large.

Aligned with our vision to make food safe and available everywhere and our global

sustainability commitment, the Company aims to:

• Promote food safety and environment sustainability by educating consumers

across all strata of society

• Create awareness and build infrastructure to improve the education, health and

lifestyles of underprivileged communities

• Minimise our impact on the environment by building a recycling ecosystem to help

collect and recycle used beverage cartons

Tetra Pak India’s CSR policy will therefore focus on 3 pillars:

• Food Safety, Health & Nutrition

• Education

• Environment

Tetra Pak will also contribute to specific disaster management programmes under

these identified areas.

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III. Constitution of CSR Committee

For effectively carrying out the objectives mentioned above, the Company has

constituted a Corporate Social Responsibility Committee (CSR Committee) of the

Board as per the provisions mentioned in the Companies Act, 2013, read together

with the CSR Rules, 2014, as amended from time to time, to ensure that the

purpose of this policy is being effectively served.

IV. Composition of CSR Committee

of the Board:

•••• Chairman of the CSR Committee:

Managing Director of the Company shall be the Chairman of the CSR Committee.

•••• The members of the CSR Committee shall be:

i. Managing Director

ii. Finance Director

iii. Cluster Leader Finance & BT

In addition, the Committee shall also include the following members:

i. Communication Director

ii. Senior Legal Counsel & Company Secretary

iii. Environment Director

iv. Communication Manager

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V. Role and Responsibilities

of the Committee

In accordance with the Companies Act, 2013, read together with the CSR Rules, 2014, as

amended from time to time, the following are the key responsibilities of the CSR

Committee. It shall:

1. Formulate the CSR policy and recommend the same to the Board for its approval

2. Be responsible for the identification, selection, planning and execution of various

programmes / projects and activities under CSR

3. Recommend the CSR activities / projects and the amount to be expended on such

activities / projects, to the Board that the Company will undertake during the relevant

financial year

4. Monitor the implementation of the CSR activities / projects from time to time

5. Prepare a transparent monitoring mechanism to ensure implementation of the projects

/ programmes / activities proposed to be undertaken by the Company

6. Provide a Responsibility Statement in the Annual Report, stating that the

implementation and monitoring of the CSR policy is in compliance with the CSR objectives

of the Company in letter and in spirit

7. Interact with governmental and non-governmental bodies as and when required in

relation to implementation of CSR activities / projects under this policy

8. Ensure receipt of Utilisation Certificates along with Statement of Expenditure, duly

certified by a chartered accountant of repute, by the organisations / institutions to whom

CSR Fund is allocated / by whom CSR Fund is spent

9. Review performance of the Company in the area of CSR and decide the priority of the

activities to be undertaken

10. Ensure that the conduct of the CSR Policy is in line with the overall Sustainability

Objective of the Tetra Pak Group

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VI. Meetings of the CSR Committee

During every financial year, the CSR Committee will meet at least three times for

the purpose of reviewing and monitoring the progress of CSR activities including

the amount spent on each of the activities / projects.

VII. Activities proposed under

CSR Programme

The following activities are proposed under CSR policy for 2016-17:

• Promoting environment sustenance with a special focus on recycling of post

consumer waste of used cartons to minimize the adverse impact on the

environment and promoting conservation of natural resources; Creating

awareness amongst the society through projects such as “Go Green”, “Alag Karo”

etc.

• Improving educational infrastructure in village communities, including those

around the Company’s factory in Chakan, Pune.

• Arranging health camp for the rag picker community in different parts of India.

• Undertaking projects for providing safe drinking water and sanitation facility in

select villages, arranging health camps for to rural community, promoting tree

plantation etc.

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VIII. Addition of CSR Activity not being a part of

approved CSR Programme

The Committee shall be authorised to recommend additional activities that are not

a part of the annual approved CSR Programme if it is noticed during the financial

year that the amount spent on approved CSR activities / projects is not as per

agreed schedule. The same will be ratified by the Board of Directors.

IX. Quorum of the meeting

The quorum of the meeting shall be 2 (two) directors present in person at the

meeting.

X. Rules governing the CSR Policy:

In view of the provisions of the Companies Act, 2013, read together with the CSR

Rules, 2014, as amended from time to time, the Company is obliged to observe

the below-mentioned provisions with respect to CSR Policy:

1. The Company may generally conduct such programmes and projects as CSR

activities (either new or ongoing) excluding those activities undertaken by the

Company in the normal course of its business operations and for the benefit of

employees or their relatives.

2. The Company shall undertake its CSR activities only within India.

3. The Company may conduct or implement its CSR programmes or any particular

project or activity through trusts, societies, or companies established under

Section 8 of the Act, operating in India and that such organisations have an

established track record of at least three years in carrying on activities in

related areas. Provided that before considering any such trusts, societies, or

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Section 8 companies for the purpose of allocating funds, the Company should

conduct a comprehensive due diligence of such organisations to ensure its

expertise or track record in social projects and also to ensure its political

neutrality.

4. Where the Company has set up an organisation registered as a trust, or Section

8 company, or a society, or a foundation, or any other form of entity operating

within India in order to facilitate the implementation of its CSR activities, the

following conditions shall be applicable:

a. The Company (Contributing Company) shall specify the projects /

programmes to be undertaken by such an organisation for utilising

funds provided by it

b. The Company (Contributing Company) shall establish a monitoring

mechanism to ensure that the allocation is spent for the intended

purpose only.

5. The Company shall ensure that necessary details of its CSR initiatives are

mentioned in the Directors’ Report of the relevant financial year and on the

Company’s website in the prescribed format. (As per Annexure A)

6. The Company shall consider only those activities as CSR activities that are not

solely carried out for the benefit of employees of the Company or their family

members. It may also encourage its employees to actively and voluntarily

participate in the CSR initiatives undertaken by the Company.

7. The Company may act in association with other companies and pool the

resources to undertake CSR activities.

8. The corpus of the CSR activities would include the following:

a. 2% of the average net profits for the three preceding financial years

b. The surplus arising out of CSR activities of the previous year

9. In no case shall the surplus arising out of CSR activities form a part of business

profits of the Company.

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10. Reporting pertaining to CSR activities of the Company will be done on an

annual basis.

XI. Implementation Schedules of CSR

Activities, Funding, Allocation and

Tax Treatment of CSR spend

1. The CSR activities as approved by the Board will be implemented during the

relevant financial year as per the implementation schedule recommended by

the CSR committee and approved by the Board.

2. The Company will allocate 2% of average of its net profits of the three

preceding financial years made by the Company during every block of three

years as its Annual CSR Budget to achieve its CSR objectives through

implementation of meaningful and sustainable CSR programmes.

3. Tax treatment of the CSR spend of the Company during every financial year

shall be in accordance with the provisions of the Income Tax Act, 1961, and

rules framed under it as notified by the Central Board of Direct Taxes (CBDT)

and as amended from time to time.

4. In any financial year, if the Company fails to spend the required amount as

mentioned above, it shall specify the reasons for not spending the same in its

Annual Report on CSR Activities.

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XII. Role of the Board of Directors

The Board shall perform the following duties so far as the CSR Policy of the

Company and the activities relating thereto are concerned:

1. Approve the Corporate Social Responsibility Policy for the Company after

considering the recommendations made by the CSR Committee

2. Disclose the contents of the Company’s CSR Policy in the Directors’ Report and

shall also place it on the Company's website

3. Ensure that the activities included in the CSR Policy of the Company are

undertaken by the Company

4. Ensure that the Company spends at least two per cent (2%) of the average net

profits of the Company made during the three immediately preceding financial

years in every financial year

5. Ensure that preference is given to the local area / areas around it where it operates

for spending the amount allocated for CSR activities.

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XIII. Amendment in CSR Policy

Any modification / amendment in the CSR Policy shall be carried out by the CSR

Committee with the prior approval of the Board of Directors of the Company.

Notwithstanding anything contained in this Policy, the contents of the Policy shall

be read in conjunction with all other relevant policies, presently applicable to the

Company. The consent / permission under this Policy shall not be considered /

construed in derogation with or as an exemption from the requirement of getting

consent under any other policy in force / applicable to the Company.

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ANNEXURE A

Report on CSR Activities for FY 16-17

(Pursuant to Section 135 of the Companies Act, 2013)

The CSR policy encompasses the Company’s philosophy for delineating its responsibility

as a corporate citizen and lays down the guidelines and mechanisms for undertaking

socially useful programmes for the welfare and sustainable development of the

community at large.

Objectives:

• Promote food safety and environment sustainability by educating consumers across all

strata of society

• Create awareness and build infrastructure to improve the education, health and lifestyles

of underprivileged communities

• Minimise our impact on the environment by building a recycling ecosystem to help collect

and recycle used beverage cartons

Focus Areas:

• Food Safety, Health & Nutrition

• Education

• Environment

Composition of CSR Committee of the Board:

•••• Chairman of the CSR Committee:

Managing Director of the Company shall be the Chairman of the CSR Committee.

•••• The members of the CSR Committee shall be:

iv. Managing Director

v. Finance Director

vi. Cluster Leader Finance & BT

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In addition, the Committee shall also include the following members:

v. Communication Director

vi. Senior Legal Counsel & Company Secretary

vii. Communication Manager

viii. Environmental Director

Financial Details

Section 135 of the Companies Act, 2013, and Rules made thereunder prescribes every

company having a net worth of INR 500 crores or more or turnover of INR 1000 crores or more

or net profit of 5 crores or more during any financial year shall ensure that the Company

spends at least 2% of the average net profits of the Company’s three immediate preceding

financial years.

Particulars Amount (INR)

Average net profits of the Company for last 3 financial years.

966,411,696/-

Prescribed CSR expenditure (2% of the average profits as computed

above)

19,328,234/-

Details of CSR expenditure during the financial year.

a) Total amount to be spent on CSR expenditure

19,328,234/-

b) Amount spent 22,394,255/-

c) Amount unspent NIL

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Details of amount spent during financial year:

Sr. No. CSR project/

activity identified

Sector

Location of the

project/progra

m

Amount

outlay

(budget)

INR

Amount spent

on the

project/

programme

INR

Cumulative

spend upto to

the

reporting period

INRs

Amount spent:

Direct/

through

implementing

agency*

1. Support My School

Campaign (a Joint

Venture with Coca

Cola)

Publicity Haryana-

Mewat Dist.

35,00,000/- 15,00,000/- 15,00,000/- SRF Foundation

2. Go green (awareness

among shoppers)

Publicity Mumbai ,Delhi

and Bangalore

45,00,000/- 37,47,529/- 37,47,529/- RUR Green Life

Private Limited

3. Collection awareness

campaign (health

camps for waste

pickers, recycling

meet/conferences)

Publicity South India,

Chandigarh and

Delhi.

85,00,000/-

45,54,525/-

45,54,525/-

SAHAAS,

Development

Links Foundation,

Waste Vise Trust,

Indian Pollution

Control

Association, Bal

Vikas Dhara and

Shooonya.

4. Infrastructure support

for recyling

Infrastructure Sikkim-Gangtok

J&K- Kargil unit

Chandigarh and

South India

15,00,000/- 4,11,000/- 4,11,000/- Direct/Gajannan

traders and

Vividha

Enterprises.

5. Chakan Community

support- (Building of

School library, health

camps, tree plantation)

Publicity Pune-Chakan 10,00,000/- 4,63,714/- 4,63,714/- Direct

6. Project Search Environment India 28,00,000/- 27,71,000/- 27,71,000/- The Energy and

Resource

Institute (TERI)

7 Subsidies for Collection Environment India 280,00,000/- 84,15,653/- 84,15,653/ Sahaas

8 Alag Karo Enviornment India 6,00,000/- 5,30,834/- 5,30,834/- Sahaas

Total 5,04,00,000/

-

2,23,94,255/- 2,23,94,255/-

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We hereby affirm that the CSR policy, as approved by the Board, has been implemented and the CSR committee

monitors the implementation of the CSR projects and activities in compliance with CSR objectives.

For and on behalf of the Board of Directors.

Kandarp Singh Guanjun Li

Managing Director Director

Date: 22 September, 2017

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Details of Implementing Agencies

SRF Foundation

(Established in January 2009)-

The SRF Foundation (formerly known as the Society for Education and Welfare Development) was

set up as the corporate social responsibility (CSR) wing of SRF Limited, a leading multi-business

entity engaged in textiles, chemicals, packaging films, and engineering plastics.

Activities – The Foundation builds on the heritage of its founders, the late Sir Shri Ram and late Dr

Bharat Ram, who both believed in contributing to society particularly through education. SRF

Foundation has set up the well known Shri Ram Schools in Gurgaon and New Delhi, as well as the

SRF Vidyalaya in Chennai. In addition, the Foundation is intimately connected with the running of

the well-known Lady Shri Ram College for Women.

It currently runs various programs to improve the quality of education in India.

RUR Green Life Private Limited

Rur Greenlife Private Limited is a Private Company incorporated on 13 October 2008. It is classified

as Indian Non-Government Company. RUR is an environment organization run by young mothers,

with a vision to make families eco-conscious who will convert their waste into an useful form.

Saahas

(Established in 2001)-

Saahas was registered as a not- for- profit under the Society’s Act in 2001. It has FCRA (Foreign

Contribution Regulation Act) certification and can accept foreign contributions.

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Activities - It demonstrate how waste can be converted into resources. The not-for-profit continues

to focus on building capacities of public institutions like the Municipal Corporation as well as

support progressive policies around waste management.

Today across Bangalore, Saahas programs convert 7 tons of waste everyday into a range of

resources. Since 2013, they have also started operations in Chennai.

Development Links Foundation

(Established in 2007) -

It is a Non Government Organization registered under Societies Registration Act, 1860. It is an

initiative to create synergy for sustainable development through linking various components,

resources and stake holders of society.

Activities - Development Links Foundation work towards the objective of sustainable development

through creation of networks and links between different sectors of society.

Its approach is to interlink various resources in society and create synergy for development of the

same.

In doing so the primary focus is utilization of available resources human or otherwise. Thus it works

for creating opportunities for every resource of the society to be utilized.

This is done through various programs such as:

- Waste management with special emphasis on reducing, reusing, recycling and composting.

- Health and Education for children of under privileged and women.

- Education for children with specific learning disorders.

- Provision of skill based training to underprivileged.

- Livelihood generation programs.

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Waste Wise Trust


Waste Wise Trust (WWT) is a non-profit organization that provides socially and environmentally

responsible solid waste management services to the corporate sector in Bangalore.

Its objective is to change the face of Informal waste picking activities and giving it the dignity it

deserves.

Activities - Waste pickers organized to collect waste from townships, apartments, commercial

areas. Engaged as WW staff (32).43 engaged as collectors/sweepers in commercial areas. 17

employed to collect dry waste from establishments and sort/sell it.

It has a comprehensive approach that involves: Waste reduction, segregation, proper storage,

reuse, recycling and scientific disposal of all forms of waste produced by human activity, leading to

environmental protection. The valuable contribution of the poor who are involved in waste picking

and related activities are to be highlighted to enable them to secure a dignified status in the society.

Professional and sustainable waste management services are offered to apartments, offices, banks

and other institutions. The revenue generated is used to give employment, better working

conditions and economic returns to the waste pickers.

It Provides sanitation facilities for slum dwellers and related activities to improve the existing

conditions of waste pickers.

Indian Pollution Control Association (IPCA)

(Established in 2001)-

The Indian Pollution Control Association (IPCA) is not-for-profit, non-government organization

(NGO) registered under the Societies Registration Act, 1860, Foreign Contribution Registration Act

and Section 80 G of the Income Tax Act and entitled with Central Pollution Control Board at national

level.

IPCA comprises of a multi-faceted group of environmentally conscious individuals who are from

the business, legislative, legal, engineering, finance, energy and environmental sectors.

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Activities - IPCA is an organization which is engaged in creating environmental awareness and

implementing Integrated Solid Waste Management System. IPCA is providing its services of Solid

Waste Management to various corporate, industries, educational institutes and residential

colonies.

IPCA examines the practices currently in vogue, assess their suitability in the light of the existing

regulations, developed cost effective and environmentally sound techniques and strategies. IPCA

strives to encourage wise recycling of the municipal solid waste for the benefit of nation`s economy

and environment sustainability.

IPCA provides excellent oversight and management capabilities for our sponsors and work with the

community, local NGOs and Trusts.

Bal Vikas Dhara (BVD)

(Established in 2005) –

A community that takes ownership of child rights issues.

Location: 12 slum areas in the South West District, Delhi

Activities - Bal Vikas Dhara (BVD) mainly works in the areas of awareness generation among the

communities, non-formal education, and vocational skill building for the adolescent girls, self help

groups and mahila panchayat. The organisation advocates for inclusion of women in development

efforts to change the lives of children.

BVD has been successful in building a community perspective on the need for education. They also

focus on - implementation of RTE and sensitisation on health issues like immunisation and

institutional deliveries. BVD has mobilized the community for formation of youth groups and

Shrishti - a child rights activist group.

The Energy And Resource Institute (TERI)

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TERI was established in 1974, with the initial focus on documentation and information

dissemination. Research activities, initiated towards the end of 1982, were rooted in TERI’s firm

conviction that efficient utilization of energy and sustainable use of natural resources would propel

the process of development.

Activities - All activities in TERI, the largest developing-country institution working towards

sustainability, move from formulating local- and national-level strategies to shaping global

solutions to critical issues. TERI has established regional centres in Bengaluru, Goa, Guwahati,

Mumbai and the Himalayas.

TERI has also set up affiliate institutes – TERI-NA, Washington, DC, USA, and TERI Europe, London,

UK – and also have a presence in Japan, Malaysia, and the UAE.

************************************************************************

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ANNEXURE B

SCHEDULE VII OF COMPANIES ACT, 2013

The Following are the activities that may be included by companies in their corporate social responsibility

policies. They are activities relating to:

1. Eradicating hunger, poverty and malnutrition, promoting preventive health care and sanitation

making available safe drinking water.

2. Promoting education, including special education and employment enhancing vocation skills

especially among children, women, elderly, and the differently-abled and livelihood

enhancement projects.

3. Promoting gender equality, empowering women, setting up homes and hostels for women and

orphans, setting up old age homes, day care centres and such other facilities for senior citizens

and measure for reducing inequalities faces by socially and economically backward groups.

4. Ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal

welfare, agro forestry, conservation of natural resources and maintaining quality of soil, air

and water.

5. 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

developments of traditional arts and handicrafts.

6. Measures of benefits of armed forces veterans, war widows and their dependents.

7. Training to promote rural sorts, nationally recognized sorts and Olympic sports.

8. Contributions and funds provided to technology incubators located within academic

institutions which are approved by the Central Government.

9. Contribution to the Prime Minister's National Relief Fund or any other fund set up by the

Central Government for socio-economic development and relief and welfare of schedules

castes, the scheduled tribes, other backward classes, minorities and women.

10. Rural development projects.

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ANNEXURE C

DEFINITIONS

1. “Net Profit” shall mean net profit of the Company as per its financial statements prepared in accordance

with applicable provisions of the Act but shall not include:

i. Any profit arising from any overseas branch or branches of the Company, whether operated as

a separate company or otherwise and;

ii. Any dividend received from any other company in India, which are covered under and

complying with the provisions of Section 135 of the Act.

Note: “Average Net Profit’ shall be calculated in accordance with the provisions of section 198 of the Companies Act, 2013.

CORPORATE SOCIAL RESPONSIBILITY POLICY OF TETRA PAK … · 2020. 10. 9. · Tetra Pak India’s CSR...

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Transcript of CORPORATE SOCIAL RESPONSIBILITY POLICY OF TETRA PAK … · 2020. 10. 9. · Tetra Pak India’s CSR...