Natural Capital
We are committed to environmental stewardship and sustainability, recognising them as fundamental to our long-term growth and value creation. We strive to minimise our environmental footprint by embedding sustainable practices in our operations. We view environmental responsibility as a strategic imperative that drives resilience, innovation, and operational excellence. This commitment is closely aligned with our Aspirations 2030, reinforcing our focus on integrating environmental and social considerations into the way we create sustainable and enduring value.
UN SDG Linkages
BRSR Linkage
Principle 2: Businesses should provide goods and services in a manner that is sustainable and safe
Principle 6: Businesses should respect and make efforts to protect and restore the environment
Key Stakeholders Impacted
Material Issues Addressed
- Energy Management
- GHG Emission Reduction
- Air Emissions
- Water Conservation
- Waste Management
Key Highlights
We have a robust Integrated Management System aligned with globally recognised standards such as ISO 14001:2015 and ISO 50001:2018, ensuring consistency with our long-term sustainability aspirations. In parallel, we actively promote environmental awareness across our workforce through structured training and sensitisation programmes focussed on energy conservation, emission reduction, water stewardship, and waste management, fostering a culture of accountability and informed action.
Energy Management
Recognising the energy-intensive nature of our operations, we stand committed to efficiently manage energy consumption through a structured and forward-looking approach. At SRF, reducing our energy footprint remains a priority, supported by continuous efficiency improvements driven by technology upgrades and process optimisation.
In FY26, our total energy consumption stood at 13,540 TJ, with ~14% sourced from renewable energy. Our fuel mix includes renewable and non-renewable sources such as biomass, rice husk, natural gas, diesel, and coal. Notably, renewable electricity consumption grew to 41% year-on-year – from 888 TJ to 1,250 TJ – highlighting significant progress toward a cleaner energy profile.
For the second consecutive year, we have exceeded our target of achieving 30% renewable electricity by 2030. In FY26, renewable electricity consumption reached ~42%, supported by greater procurement of solar and wind energy, which increased from 2,46,427 MWh in FY25 to 3,47,208 MWh. A significant portion of this renewable power was sourced through third-party Power Purchase Agreements (PPAs), primarily in our Chemicals Business and Technical Textiles Business facilities.
Rooftop solar investments, including a 3,500 kW installation at our DTA1 PFB facility and the commissioning of a 1,150 kW plant at our Coated Fabrics facility, are strengthening our transition toward clean energy and reducing our carbon footprint
We continue to strengthen our renewable electricity portfolio through investments in renewable power projects and expanded sourcing from external suppliers, thereby increasing the share of renewables in our overall energy mix. Building on this momentum, we have revised our target to achieve 50% renewable electricity by 2030.
During the year, we also executed multiple energy-efficiency initiatives across our operations, aimed at optimising equipment performance, replacing energy-intensive assets, and increasing automation to reduce overall consumption.
- Chemicals Business: Energy-saving measures such as Chilled Water flow optimisation, modifying Fan in cooling tower, pump optimisation in chilled water circuit, utilising process cooling water return flow for Utility cooling water, optimising process cooling water pump etc. resulted in savings exceeding 4,728 MWh.
- Performance Films and Foil Business: Energy saving measures such as Rotary Uninterrupted Power Supply System Switched Off, additional Closed Loop Cooling Tower of RESIN Batch Plant, Transverse Direction Orientation Blowers frequency reduction during plant stoppages delivered energy savings of around 1,010 MWh per day. In addition, control-based energy-saving systems were implemented to minimise power consumption during off-cycle operations and avoid unnecessary energy usage.
- Technical Textiles Business: Installation of EC+ Fan in Spinning Take up AHU, Piping modification done in compressed air distribution system and switched HP to LP compressor, Redesigned distribution to cooling tower etc. led to energy savings of over 1,500 MWh, alongside noticeable reductions in operating costs.
Our business-wise energy savings is depicted below:
For more details, please refer to the Annexure VII section of our Board's Report: Conservation of Energy – Measures taken
GHG Emissions
We monitor our greenhouse gas (GHG) emissions in accordance with the GHG Protocol Corporate Accounting and Reporting Standard, ensuring a consistent and transparent approach to emissions reporting. At SRF, we remain committed to lowering our carbon footprint and mitigating the impacts of climate change. This is being pursued through the installation of energy-efficiency initiatives across our operations, gradual reduction in usage of fossil fuels, and a continued increase in the share of renewable energy in our overall energy mix. As a result of higher procurement of electricity from renewable sources, the Scope II emissions declined from 3,93,064 MTCO2e to 3,38,811 MTCO2e in FY26.
We are transitioning our diesel generators to PNG at our Chemical Business - Bhiwadi facility marking a significant step toward cleaner energy usage and reducing emissions
Our Chemicals Business demonstrates a strong commitment to climate responsibility through independent verification of its greenhouse gas emissions and alignment with global best practices. It is certified under ISO 14064-1:2006, which verifies the measurement and reporting of GHG emissions. In line with international environmental protocols, we have completely discontinued the manufacture of halons and phased out the use of Chlorofluorocarbons (CFCs) across our operations. We are now utilising non-CFC and lower GWP alternatives in our operations. These transitions have been supported by investments in advanced, environmentally responsible technologies that reduce environmental impact while strengthening long-term sustainability.
For Scope I & II GHG emissions refer to Principle 6 of BRSR.
Progressing Toward Sustainable Cooling Solutions
Our journey in the refrigerants business reflects a conscious and forward-looking alignment with global sustainability frameworks such as the Montreal Protocol. In the early phase, as the world moved away from CFCs due to their environmental impact, we proactively recalibrated our portfolio toward HCFCs, anticipating the direction of global policy and industry transformation. This transition was not merely a response to change, but a strategic step to build capabilities, strengthen integration, and create a resilient foundation for long-term growth within an evolving regulatory landscape.
Building on this foundation, we have seamlessly progressed into the HFC era, positioning ourselves at the centre of the next phase of growth in refrigerants, particularly in high-growth markets such as Asia where HCFCs are steadily transitioning to HFCs. Our strong backward integration, technological expertise, and robust distribution network enables us to capture opportunities effectively. With a clear strategic vision and an enduring commitment to sustainability, we have consistently transformed global transitions into engines of growth, reinforcing our leadership while advancing toward a more responsible and future-ready refrigerant portfolio. As a way forward, we are expanding into next generation refrigerant i.e. hydrofluoroolefins (HFOs), to strengthen our presence in advanced, low global warming refrigerant technologies.
We are transiting to manufacturing of HFOs - next-generation refrigerants by setting up a new plant in Gopalpur, in the state of Odisha
Air Emissions
We maintain a strong oversight of air emissions arising from our operations through comprehensive monitoring and control measures. Key utilities such as boilers and diesel generators are regularly tracked across all facilities using structured monitoring systems. This disciplined approach reflects our commitment to responsible environmental management and ensures that emissions consistently remain well within the limits prescribed by the respective State Pollution Control Boards.
Refer to Principle 6 question 7 of our BRSR Report for air pollutant details.
Switching from furnace oil to husk-based boilers at the CF plant has significantly reduced SOx and NOx emissions, advancing cleaner operations and lowering environmental impact
Water Management
We continue to strengthen our approach to water stewardship by reducing dependence on freshwater sources and improving overall water efficiency. We are committed to continuously identifying opportunities to enhance water efficiency across our operations. In support of this commitment, we have implemented a range of conservation measures, including the use of recycled and desalinated water, rainwater harvesting systems, and employee awareness programmes promoting responsible water use.
Our manufacturing sites are equipped with advanced wastewater treatment systems to minimise discharge and support Zero Liquid Discharge (ZLD), with nine facilities operating as ZLD units. At our Chemicals Business facility in Dahej, the wastewater treatment plant ensures that both the quality and volume of discharged water consistently comply with standards prescribed by the State Pollution Control Board. As a result, our total water discharge in FY26 declined by ~10% compared to the previous year, underscoring our commitment to responsible and sustainable water management.
As part of our continued sustainability efforts, the Chemicals Business facility at Dahej utilised more than 21 lakh kL of desalinated water (from GIDC Dahej) which has helped us lower our reliance on freshwater resources.
| FY 2023-24 | FY 2024-25 | FY 2025-26 | |
|---|---|---|---|
| Water Withdrawal (excluding seawater) (in kL) | 49,03,252 | 33,47,378 | 33,47,045 |
| Water Discharge (excluding seawater) (in kL) | 12,018 | – | – |
| Total Net Freshwater consumption (in kL) | 48,91,234 | 33,47,378 | 33,47,045 |
Waste Management
At SRF, our approach to waste management is rooted in a strong commitment to sustainability, innovation, and responsible operations. Our waste management strategy emphasises continuous monitoring, reduction, reuse and recycling of waste and effluents, while ensuring full compliance with applicable environmental regulations. Across our facilities, we follow well-defined waste management systems to responsibly handle all waste generated, ensuring safe disposal, reuse and recycling, and minimising environmental impact.
Guided by our 3R philosophy, we invest in initiatives that minimise waste generation, reduce dependence on virgin raw materials, and promote circular resource use – thereby conserving natural resources and lowering environmental impact. To embed these practices at every level, we regularly conduct training and awareness programmes for our workforce, equipping them with practical knowledge to drive waste reduction through collective action.
Introducing Recycled Nylon Yarn – a sustainable, high-performance solution produced through advanced chemical recycling of post-industrial nylon waste, delivering superior quality with significantly reduced environmental impact.
In our PFB facilities, we redesigned our wood pallets. This optimisation reduced our wood consumption by over 1.70 lakh CFT, driving significant improvements in resource efficiency and sustainability.
Our TTB facility in Gwalior implemented an in-house distillation system to recycle recovered solvent oil, reducing reliance on fresh inputs. The initiative improved resource efficiency and lowered procurement costs while minimising waste generation.
Our Performance Films & Foil Business at Indore was recognised at the CII 4R (Reduce, Reuse, Recycle, Recover) Awards for Waste to Wealth, being named among the Top 25 industries in India for waste minimisation and management, and receiving an Award of Merit for Excellence in 4R for effectively managing its own waste through innovative practices. This recognitions underscore our focussed efforts to convert waste challenges into value-creating opportunities.
We recycled ~68% of paper tube and ~90% of shell roll as part of our recycling initiatives in our Technical Textiles Business
Resource Efficiency and Energy Optimisation at SCB, Dahej
Location of Initiative
SRF Manufacturing Plant (SCB / CTG Units)
Objective of the Initiative
To improve operational efficiency and environmental performance by reducing energy consumption, optimising water usage, and minimising waste generation, while strengthening compliance and sustainable manufacturing practices.
Activity
The initiative focussed on implementing targeted energy-efficiency, water-reduction, and waste-minimisation measures across plant operations. Pilot trials, system integrations, and infrastructure upgrades were undertaken to optimise resource utilisation and lower the plant's environmental footprint.
Implementation
- Installed an Arctic Master static energy-saving device on a 5.5 TR air-conditioning unit as a pilot to assess power-saving potential
- Commissioned a PNG pipeline and converted P2 and P3 furnaces from fuel-based firing to PNG-based firing, reducing energy consumption and carbon footprint
- Integrated brine pump networks across P2/3 and P7/8/9 blocks, enabling shutdown of a 30 kW drive and operating it only on demand
- Commissioned Dry Vacuum Pump (DVP) systems at P8S and P9 plants, resulting in a reduction in steam and associated water usage
- Replaced service water with ETP-treated water in multiple scrubbers and extended treated water pipelines to additional plants to enhance water reuse
- Treated campaign effluents previously sent for external disposal within in-house effluent treatment plants, reducing off-site waste handling and environmental risk
Impact
- Achieved energy savings of over 7,700 kWh through the Arctic Master pilot, delivering approximately 19% efficiency improvement in the trialled system
- Generated estimated annual cost savings of over ₹84 lakhs, driven by PNG furnace conversion and pump network optimisation
- Reduced dependency on freshwater sources through increased reuse of treated effluent water across scrubbers and plant operations
- Minimised waste generation by treating over 150 MT of effluent at SCB ETP and approximately 750 KL at CTG ETP, lowering external disposal volumes
- Strengthened regulatory compliance, improved utilisation of internal infrastructure, and reinforced the plant's commitment to sustainable, resource-efficient operations
Biodiversity Management
We are committed to protecting and enhancing biodiversity in and around our operating locations, recognising it as a vital part of responsible business conduct. Through collaborative initiatives with external partners, we actively support conservation efforts and undertake plantation activities aimed at creating a net-positive impact on local ecosystems.
We recognise that building awareness on biodiversity among all stakeholders is equally important. By engaging closely with local communities, schools, and non-governmental organisations, we promote environmental education and encourage employee participation in initiatives such as plantation drives and conservation campaigns. These collective efforts help instil a culture of environmental stewardship and contribute to the long-term preservation of biodiversity.
Building Environmental Consciousness
We believe that fostering environmental responsibility begins with building strong awareness. At SRF, we place emphasis on keeping our employees, workers, and business partners informed about critical environmental issues and the role each of us plays in supporting a sustainable future. Through structured training programmes and awareness initiatives, we educate our workforce on the Company's environmental impact and promote the adoption of responsible, sustainable practices. These efforts help embed environmental consciousness into everyday actions and strengthen a culture of sustainability across the organisation.
Impact of Natural Capital on other Capitals
Financial Capital
Costs and efficiencies through resource availability and environmental impact management.
Intellectual Capital
Drives innovation in sustainable technologies, resource efficiency, and environmental management practices
Human Capital
Enhances employee well-being and productivity through a healthy and sustainable environment
Manufactured Capital
Shapes infrastructure resilience and operational continuity
Social & Relationship Capital
Strengthens stakeholder trust and community relations through environmental stewardship
