Ambuja Cement

9-518-063
REV: JUNE 20, 2019
V. KASTURI RANGAN
SURAJ SRINIVASAN
NAMRATA ARORA
Measuring True Value at Ambuja Cement

Times have changed but most companies haven’t. In the modern world, it is important that a company
broadens its view on the value it brings to the world.
— Ajay Kapur, Managing Director and Chief Executive Officer, Ambuja Cement
To be the most sustainable and competitive company in our industry.
— Ambuja Vision Statement
Introduction
On a humid summer afternoon in May 2016, Ajay Kapur, Managing Director and Chief Executive
Officer of Ambuja Cement Limited (Ambuja), closely scrutinized a copy of the company’s 2015 True
Value Report at company headquarters in Mumbai, India. Ambuja, a subsidiary of the Lafarge Holcim
Group, was India’s third-largest cement manufacturer. Along with impressive financial growth, the
company had demonstrated a longstanding commitment to supporting social and environmental
initiatives. The Ambuja Cement Foundation (ACF)—the Corporate Social Responsibility (CSR) arm of
Ambuja— was considered a CSR pioneer in India.
Starting in 2012, Ambuja had begun quantifying its social and environmental impact in order to
improve its understanding of resource use, climate protection, and community engagement. In Kapur’s
view, “To create a responsible future, it was important we broadened our view on the value we brought to
the world. The value of Ambuja was more than just the financials alone. The true picture was
revealed by the sum of our actions in economic, environmental, and social areas.”
Following the ‘True Value’ methodology, developed by the international audit and consulting firm
KPMG, Ambuja had identified the social and environmental impact of its activities, classified them as
positive or negative, and applied a financial value to these externalities. Once the impact was
quantified, the company’s ‘True Value’ would be its real earnings if all its significant externalities were
internalized. Furthermore, stakeholders could see where the company was creating value for society
and reducing negative externalities. Often likened to a ‘Social and Environmental profit and loss
statement,’ True Value was adopted by Ambuja in 2012 and the company published its first internal
Professors V. Kasturi Rangan and Suraj Srinivasan and Associate Director Namrata Arora (India Research Center) prepared this case. It was
reviewed and approved before publication by a company designate. Funding for the development of this case was provided by Harvard Business
School and not by the company. HBS cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements,
sources of primary data, or illustrations of effective or ineffective management.
Copyright © 2017, 2018, 2019 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-
545-7685, write Harvard Business School Publishing, Boston, MA 02163, or go to www.hbsp.harvard.edu. This publication may not be digitized,
photocopied, or otherwise reproduced, posted, or transmitted, without the permission of Harvard Business School.
This document is authorized for use only in Prof. Sutapa Pati's Business Sustainability MBF 20233 Term II at XIM University (XIMU) from Dec 2023 to Jun 2024.
518-063 Measuring True Value at Ambuja Cement
report two years later. In 2015, Ambuja’s True Value was $301.7 million a (Rs. 20 billion) compared to
financial earnings of $137.2 million (Rs. 9.1 billion), due to a net social and environmental value of
$164.4 million (Rs. 10.9 billion). In Kapur’s view the social and environmental value created could
potentially allow Ambuja to strengthen its license-to-operate and enable constructive interactions with
policy makers, communities, NGOs, and other stakeholders.
In 2016, a detailed output of the True Value methodology had not been disclosed publically. Kapur,
along with his team, was assessing whether to disclose Ambuja’s True Value earnings. He considered
the strengths and weaknesses of the methodology and the implications of publicly disclosing the
financial estimate of the positive and negative externalities generated by the company. Meanwhile the
company’s CSR arm, Ambuja Cement Foundation, had developed a social return on investment (SROI)
methodology which showed impressive returns for the foundation’s water resource management
initiative. For every 1 million rupees invested, the returns were between 5.26 to 13.03 million. Such and
other impact metrics were published in ACF’s annual reports, and some in the company wondered
whether that level of reporting was sufficient.
Cement
Cement production involved heating limestone with silicon, iron and aluminum in huge cylindrical
kilns at temperatures of up to 2000 C. 1 The heating process and subsequent chemical reactions, created
‘clinker,’ or small pellets that were ground with other minerals to create cement powder. Cement when
mixed with water, sand and aggregates, hardened to a rocklike mass called concrete, which was widely
used in construction. The production of cement required significant amount of non-renewable natural
resources.2 Limestone was mined from quarries and transported to manufacturing plants. Furnaces
and kilns required gas or coal fired heating to maintain extreme temperatures. 3 Large quantities of
water were required in the crushing and mixing process to cool machinery and to suppress dust. Barges
and trucks that transported cement used significant quantities of fuel.
The Cement Industry in India

India’s rapid economic development after economic liberalization policies in 1991 created a huge
demand for cement and other construction materials. 4 Conveniently, India had an abundance of
limestone and coal to meet this demand. The cement industry contributed 2.2% of India’s Gross
Domestic Product (GDP) in 2014-2015. 5 India was the second-largest cement producer and consumer
in the world. With a installed production capacity of 390 million tons (MT) in 2015, it accounted for
6.7% of the world’s cement output. Large players dominated the industry and the top 20 companies
accounted for around 70% of the total production. The largest uses of cement in India were for housing
and infrastructure, 67% and 13% respectively. 6 Commercial and industrial construction made up the
rest.7 According to industry analysts, the government’s plans to begin construction on 98 smart cities
across the country would significantly increase demand for concrete. In addition to large infrastructure
projects, the new government also supported residential construction across India offering tax breaks
to firms that built affordable housing.8
a
The 2015 average US dollar to INR conversion rate of $1=Rs.66.33 has been used throughout the case study.
Measuring True Value at Ambuja Cement 518-063
Environmental and Human Health Impact of Cement

Cement production was emissions intensive releasing greenhouse gases, directly and indirectly, at
three stages of the manufacturing process. The largest contribution—around 50%—occurred when
CO2 was released as limestone was heated to produce clinker. Second, 35% of emissions resulted from the
burning of fossil fuels to heat the kiln. Finally, 15% of emissions were indirect, from electricity and fuel
used in the production process, such as for mining, grinding and transportation. 9
The main emissions— in addition to CO2 when limestone was converted to clinker—were Sulfur
Oxide (SO2), Nitrogen Oxide (NOx), and Carbon Monoxide (CO). These emissions had numerous
negative consequences for the environment and human health. SO2 in high concentrations could
aggravate respiratory and cardiovascular diseases, and was also the primary contributor to acid rain.
Exposure to NOx could cause lung disease, and led to acid rain, global warming, and water quality
deterioration. Finally, CO reduced the body’s ability to retain oxygen, and when it converted to CO2,
contributed to smog and more generally to global warming. 10 Estimates varied considerably, but
anywhere between 5 to 10% of the total global greenhouse emissions were a direct result of cement
manufacturing.11 Studies also showed a significant impact on human health. For instance, a 2012 study
in Europe showed a significant increase in the number of hospital visits for cardiovascular and
respiratory-related illnesses in areas near cement plants, especially in cases of women and children. 12
The top three cement producers in the world were China, India, and the U.S., who produced 2,350
million, 270 million, and 83.5 million tons per year, respectively. 13 Coincidentally, the same countries
were the leading contributors to global greenhouse emissions (see Exhibit 1 for the top 10 cement
producing countries). A recently published report by the Climate Accountability Institute showed that
nearly two-thirds of industrial carbon emissions could be attributed to 90 entities—83 of which were
energy companies producing coal, oil, natural gas, and the other 7 were cement manufacturers. 14
While cement companies across the globe were taking concerted efforts towards energy efficiency, the
industry was still a major pollutant. A senior industry executive conceded, “No matter what you do,
cement production will always release carbon dioxide. Cement is needed to satisfy basic needs, and there
is no obvious substitute, so there is a trade-off between economic development and sustainability.” 15
Ambuja Cement
Two entrepreneurs Narotram Sekhsaria and Suresh Neotia founded Ambuja Cement in 1983. In
1986, the company set up its first cement plant in the western Indian state of Gujarat. In the three
decades that followed, the company experienced consistent growth, and by 2015, had become the third
largest cement company in India with net sales of $1.5 billion. In 2015, it owned five integrated cement
plants across the country, with annual plant capacity of 29.6 million tons. (See Exhibit 2 for a map of
Ambuja Cement facilities.) It was also India’s largest cement exporter.
Echoing Mahatma Gandhi’s philosophy that businesses act as ‘trustees’ for society, Ambuja’s
founders believed that the wealth businesses created should be used for the betterment of society, after
owners kept a responsible profit for themselves. Furthermore, the founders were very clear that if they
were going to successfully operate in a complex and disparate economy like India, they would have to
take society along. Kapur elaborated, “In the early days, senior management meetings would start and
end with questions like, ‘Has the benefit to the business and the welfare to society been considered?’ ‘Is
there a better way to conduct activities with the least impact to the environment?’ ‘How can we make
a greater positive impact on the people around us?’
Ambuja was the first company in India to transport cement by sea that not only reduced
transportation time, fuel consumption, and cost, but also enabled access to offshore markets. Ambuja
also offered a unique value proposition. Rather than competing on price, the company offered the
promise of quality and excellence. Describing the approach, Ajay Kapur noted,
Steered by the founders, the company created a value system that prioritized the
pursuit of reputation over revenues. Cement in India was historically a commodity
business where the only differentiator was price. But we were different—our focus on
higher and consistent quality made us ideally suited to build a brand. In addition to
representing the strength of our cement, the Ambuja Giant also reflects the caring,
dependable nature of our company.
In 2006, Holcim, a leading Switzerland based muti-national cement company, acquired Ambuja,
and became its largest shareholder. Under its former CEO, Onne Van der Weidje, who came from
Holcim in 2012, Ambuja continued to stay true to its founder’s commitment to social responsibility,
and began rapidly adopting sustainable practices. It was a signatory to the UN Global Compact, a
voluntary agreement by organizations to comply with UN principles of human rights, labor rights,
environmental protection, and anti-corruption.16 To support its commitment to sustainability and the
environment, Holcim developed a four-point corporate policy. Holcim integrated environmental
targets and standards into its business processes. To strengthen the standards throughout its supply
chain, Holcim regularly assessed the practices of suppliers and sub-contractors. Secondly, within the
manufacturing process, Holcim deployed efficiency measures and the recycling of renewable and non-
renewable resources. Third, Holcim continuously reviewed its environmental impact to develop better
practices and update standards. Finally, Holcim regularly publicly disclosed information on its
environmental programs. When Van der Weidje resigned in 2014 to move back to the company
headquarters, Ajay Kapur succeeded him as the Managing Director and CEO. Kapur, who served as
the company’s deputy Managing Director at the time, joined in 1993 as the Executive Assistant to the
then Managing Director and Founder, N.S. Sekhsaria. Having risen through the ranks, Kapur fully
imbibed the company’s environmental stance and wished to further accelerate it and bring a
measurement discipline to its efforts.
In 2015, Holcim merged with Lafarge, to become LafargeHolcim, the world's largest global building
materials and solutions, company. Ambuja was aligned with The 2030 Plan launched by its parent
LafargeHolcim. The plan focussed around contributing to a more sustainable construction sector and
addressed four main pillars of action: climate, circular economy, water & nature, and people &
communities.
Ambuja Cement Foundation

Ambuja Cement Foundation (ACF), the corporate social responsibility (CSR) arm of Ambuja, was
established within the first decade of the company’s founding. When ACF was established, CSR was
still a foreign concept in India, or as Kapur noted, “the term CSR was not yet common currency.” Pearl
Tiwari, President of CSR & Sustainability at Ambuja and CEO of ACF, explained the origins, “If we
wanted to remain in communities where we had assets, we had to build long-term relationships. What
better way to do that than to show that we are as concerned with a community’s well-being as we are
with Ambuja’s economic performance.”
The company was especially sensitive to the environmental concerns of the community around its
cement plants. Focusing on socio-economic development around cement plant locations, ACF led
interventions in water resource management, agriculture, skill-based livelihood generation, health and
education, and women’s empowerment. In its inaugural year, ACF adopted a mining town in Gujarat
and set out to oversee its overall development. In 2015, Ambuja contributed roughly 40% of the
foundation’s $14.9 million budget (INR 991 million or 99 crores), while the remaining funds came from
the local government and other agencies that used ACF as an implementation partner (see Exhibit 3 on
sources of funding at ACF).
By 2015, ACF operated in 12 Indian states at 22 locations, reaching more than 1.4 million people in over
860 villages. (See Exhibit 4 for activity-wise expenditure at ACF.) The foundation received several domestic
and global awards for its work and was consistently ranked amongst the top 25 “Best Companies for CSR in
India” based on factors including governance, disclosure, and sustainability efforts. 17
Development Model & Activities
From the start ACF’s community approach was based on collaboration between foundation
executives, community leaders, village-level government administrators, and local non-profits
organizations. The collaborative panels served as a platform to exchange information and data, air
community concerns, and identify future programs.
For many projects an important local stakeholder was the government. Tiwari explained: “If the
foundation was working on a water conservation project in a particular district, it made sense for us to
seek government support and funds to make our investment go much farther. And by the same token,
it made sense for the government to leave the implementation to us because we were already on the
ground and working closely with the communities. Such an approach allows us to leverage the funds
that governments have set aside for development. It was a mutually beneficial relationship that
allowed us to do much collaborative work for the communities.” Additionally, ACF worked with other
third-party quasi-governmental entities such as the National Bank for Agriculture and Rural
Development (NABARD). After the passage of the Indian Companies Act of 2014, corporations of a
particular size (or larger) had to set aside 2% of their average net profits for CSR activities. Ambuja for
years, much before the passage of the Act, had routinely exceeded the 2% rule on CSR expenditure.
More recently even a few corporates and corporate foundations directed small amounts of their CSR
money through ACF.
Relationship with Ambuja Corporate
While ACF operated as a separate legal entity, the CEO of the foundation reported to both the
Chairman of the ACF Board (Mr. Narotam Sekhsaria, the original founder & promotor of Ambuja
Cements Ltd) and Ambuja’s current CEO, Ajay Kapur, who was a member of the ACF board. Pearl Tiwari
took pride in the fact that ACF was run as an independent developmental organization with a mandate
that was larger than the geographic footprint of Ambuja’s operations alone. By 2016, ACF directly
employed 150 qualified professionals in program development, implementation and measurement.
Professional ACF staff sometimes took an active role within Ambuja. In 2012, Ambuja began
organizing sustainability committees to better plan expansion and operate existing plants. In most cases
an ACF program officer served alongside Ambuja unit heads, plant managers and land acquisition teams.
Tiwari offered an example of the committee’s work, “The sustainability committee may discuss opening
a new mine. This will involve the foundation representative on the committee to begin considering
preemptive interventions for the surrounding communities. They would start a needs assessment and
begin talking to local stakeholders. When the mine opens our programs would have already
communicated our intention to work closely with the community, and the value we intend to create.”
Pearl Tiwari, as president of CSR & Sustainability at Ambuja and CEO of ACF, bridged the gap
between the corporate entity and the foundation. This dual role allowed her to direct activities at ACF
while simultaneously understanding and contributing to the strategic decisions of Ambuja. Tiwari
explained the benefits of the close relationship, “In my role, I was able to keep my ears at the grassroots
level but also have access to headquarters and this eventually influenced attitudes. Initially, people in
the company used to talk about the foundation as a cost-center. Today they talk about the money we
spend on social and environmental programs as ‘investments’.”
Here we provide brief details of an illustrative program area, namely, Water Resources
Management. Exhibit 5 provides further brief descriptions of ACF’s activities in Agriculture, Skills
Development & Human Life, and Alternate Fuels.
Water Resources Management
Water was an early focus of ACF’s efforts and a continued priority due to its importance in the
cement production chain, and the role it played in social and human development for the communities in
the vicinity of Ambuja’s plants. The goal of ACF’s water program was to create drought resistant
villages and ensure farmers and residents had adequate water throughout the year. Tiwari commented on
their water interventions, “At first we thought only about drinking water but then began to address the
entire demand side, agriculture and micro-irrigation as well.”
To achieve local water security, ACF initiated programs on rainwater harvesting, micro-irrigation
and efficient end use. Water harvesting initiatives included building and maintaining water-related
infrastructure such as rain capture systems, irrigation networks and reservoirs, which regenerated and
reduced the consumption of groundwater. 18 On a larger scale, ACF developed projects on watershed
development and interlinking of local river streams and canals, to help farmers secure adequate ground
water for irrigation. Not only did such long-range projects provide water supply year-around, seawater
ingress in the coastal areas (especially in the Ambujanagar area) was arrested as ground water levels
rose due to ground water recharge. Simultaneously, ACF worked to educate local communities,
specifically farmers, about the efficient use of water and the upkeep of existing infrastructure. In 2011,
ACF received the Confederation of Indian Industry’s National Water Management Award for its work
with farmers in the Mundwa district of Rajasthan. 19 The Mundwa intervention was an example of
ACF’s “pre-emptive” CSR, addressing a community’s needs prior to opening operations.
Over the years, ACF had committed over $24.1 million (Rs. 1.6 billion) to create water storage
facilities in excess of 53 million cubic meters and lay more than 70 kilometers of irrigation piping. The
rainwater and irrigation programs had succeeded in raising the water table between 2 and 12 meters in
certain regions. To continue the positive momentum, ACF set ambitious goals to provide safe
drinking water to 12,000 families and 200 villages by 2020.
SROI (Social Return on Investment)
In 2013, ACF commissioned a study on the impact of its water resource management (WRM) activities
in two areas. One at Kodinar area (in the west), which included the Ambujanagar site, and the other at
Rabriyawas (in the north), which included the Mundwa site. Sustainable Square, the consulting company
that did the assessments, worked out a social return on investment calculation (SROI), which showed a
return of 1:13 at Kodinar, and 1:5 at Rabriyawas. The methodology involved the following 5 steps.
1. The water challenges in each area were different and hence the required interventions were
different, as well as their potential impacts. (See Exhibit 6.)
2. Next in order to compute the total value of investments made in each area, the consultancy
calculated the value of all the investments in each of the locations taking care to ensure that
structures constructed before the baseline year (2005 for Kodinar and 2010 for Rabriyawas) were
appropriately depreciated.
3. In order to evaluate the impact on each of the respective communities, the consultancy
conducted a personal interview of stakeholders from a stratified random sample of roughly 700
households/stakeholders in each area, to then project the results to the target populations of
8,000 and 6,000 households in Kodinar and Rabriyawas respectively. Twelve measures of value
were constructed for each area under the three headings of Benefit for Women, Benefit for
Farmers, and Benefit for the Community. The interviews provided estimates of the value of the
intervention for the beneficiary populations. Two important metrics were constructed to
monetize the social value of the interventions. One was change in income, and when that was
not appropriate, the second was the imputed value represented by the willingness to pay for
the intervention. Exhibit 7 shows the financial proxies for each component of the intervention.
4. Not wanting to claim credit for the full value of the projected impact, four adjustments were
made: a) Deadweight - What would have happened anyway, without the activity? b) Displacement
- What other activity was being displaced? c) Attribution - What is ACF’s contribution to the change?
Thus if Deadweight =15%, Displacement= 5%, and Attribution = 20%; then a total value of
100,000 units would be adjusted down by 40% (15%+5%+20%) for a value of 60,000 units, and
from thereon going forward that value would be adjusted down by d) Drop-off - How much will
the impact diminish every year? (e.g., 10%) every year. Such adjustments were made for each of the
twelve indicators for each area respectively.
5. Finally, the net value calculated from step #4 above was divided by the Investments for each
area calculated in step #2 to arrive at the SROI. See Exhibit 8 for key highlights.
ACF was currently engaged in estimating a similar SROI number for its Skills Development &
Human Life Initiatives over the years.
Business True Value

In 2012, with ACF’s activities growing, Ambuja began looking for ways to better measure their
environmental and social performance. The company recognized that while the inherent nature of
cement production led to several negative social and environmental externalities, they were also
creating numerous positive externalities. For example, despite contributing to air pollution from
emissions and ecosystem harm from mining, ACF created positive social value through its health
interventions that protected people’s wellbeing. ACF also generated positive environmental value by
educating farmers on sustainable practices and rehabilitating ecosystems.
While financial statements provided information on the financial health of the business, Ambuja
felt this view was limiting. Suresh Joshi, Chief Financial Officer, explained, “Financial performance
alone did not adequately reflect the challenges and opportunities that we faced in the long term. It did
not tell us much about the value we created for people and the environment.” The company felt that
assigning a monetary value to societal and environmental activities was a key step in setting priorities
and achieving the best possible return on investment. Joshi continued, “If we were not able to measure
something, how could we possibly fully understand it and improve on it?” The polluting nature of the
cement industry made it more compelling for Ambuja to quantify its positive societal contributions.
Joshi added, “When it came to the environment or society, the discussion was far more skewed towards
the negative impact of our business. If we could effectively quantify our social and environmental
activities, maybe some of the positive impact that we are trying to make could come to life.”
Some companies had begun using the “triple bottom line” framework to present their financial,
environmental and social performance. This involved presenting the social and environmental impact,
both positive and negative. However, companies did not typically provide the financial value of the
impact, instead quantifying it along different dimensions. For example, a reforestation effort would
count the number of trees planted but not the monetary impact of the benefits. Puma, the shoe and
clothing company, had developed an Environmental Profit and Loss analysis that put a monetary value
on their environmental impact. However, as Kapur explained, “…this still didn’t seem enough. Given
our steadfast commitment to social activities and our efforts to be a sustainable company, we wanted
to adopt a tool that could shed light on all value generated—be it financial, environmental, or social.”
In Late 2012, KPMG- created the ‘True Value’ methodology. True Value tried to capture financial,
social, and environmental value into a single financial number. The first step of the calculation was to
quantify Ambuja’s economic value-addition, along with social and environmental externalities. This
translated into not only a financial profit and loss statement, but also a ‘Social and Economic Profit and
Loss’ (SE P&L) analysis. After material externalities were identified and quantified, data could be
mapped in a True Value ‘Earnings Bridge’ as shown below.
Figure 1 True Value Earnings Bridge
Source: Company documents.
Once the True Value Earnings Bridge had been prepared; the second step was to understand how
these elements impacted the company’s future profitability. Joshi explained, “New social and
environmental regulations, taxes and standards could impact future costs on the company. On the
other hand, improved community relations, strengthened brand value or innovation could improve
profitability.” Scenario planning and modeling techniques were used to understand the most likely
ways in which the company’s social and environmental actions could affect its future financial
performance.
The third, and final step of the process required the company to develop a range of strategic
responses to reduce negative environmental and social value, and increase positive value. The objective of
the entire process was finding the most cost effective ways to increase net True Value.
Ambuja Calculates True Value

Adding the value created by positive social and environmental impact to the company’s financial
earnings, and subtracting the negative social and environmental impact created an estimate of
Ambuja’s True Value. In 2015, the company’s True Value was $301.7 million (Rs. 20.01 billion) (see
Exhibit 9a and 9b for Ambuja’s True Value). As per this calculation, Ambuja cost society, and the
environment, $538.7 million (Rs. 35.7 billion), largely from emissions. Carbon and Sox/NOx/dust
contributed 79% and 15%, respectively. Conversely, the company created $703.1 million (Rs. 46.64
billion) in positive environmental and societal value by providing sustainable solutions to waste
utilization and its various social activities.
Using carbon and water as examples of environmental externalities, and human development as an
example of social externalities, the company showed how the value was calculated.
Carbon
Ambuja used an established formulab to calculate its carbon footprint. The company added all its
carbon emissions from activities including the use of raw materials, carbon generated from traditional
kiln fuels, and carbon produced from grid purchased electricity. It measured the total in tons and
multiplied it by the social cost of carbon of $30 (~Rs. 1,900). 20 Ambuja determined that it eroded $423
million (Rs. 28.04 billion) of value through its carbon emissions. (See Table 1.)
Table 1 Environmental Negative Value—Carbon Emissions (2015)
CO2 Emissions
CO2 from raw materials

CO2 from traditional kiln fuels
CO2 from Alternative fossil fuels (Kiln)
CO2 from non-kiln fuels
CO2 from Bio-mass fuels
CO2 from inbound clinker
CO2 from purchased power
Total CO2 emissions- metric tons (A)
Social Cost of CO2* - INR/ton (B)
True value eroded by Carbon Emissions- in million INR (A*B)
The social cost of carbon was the same as used by parent (formerly Holcim, now LafargeHolcim) in
its calculations, which described the logic as follows: “We acknowledge that there are a large range of
estimates of the CO2 societal value. We based our figure on the Stern report (assuming 25 USD/t in
b
Formula developed by Cement Sustainability Initiative (CSI) of World Business Council of Sustanbale Development (WBCSD)
2007, and then inflating it to reflect the seven years that had elapsed), combined with prevalent
assumptions used by governments that internalize the cost of CO2.”21
Positive environmental value towards carbon mitigation stemmed from Ambuja’s use of industrial
and agricultural waste as a source of alternative fuel as well as use of renewable energy. Ambuja
purchased waste—byproducts such as biomass, plastics, and tires—that were usually discarded in a
landfill or incinerated, and converted it to fuel for their kilns. Sanjay Singh, Deputy General Manager
(Environment and Sustainability) at Ambuja, explained the dual benefit, “By using waste to generate
energy, not only are we using a less carbon intensive fuel, but we are also saving the environmental
cost of landfill.” In 2015, Ambuja consumed an estimated 0.26 million tonnes of Alternative Fuel in its
co-processing facility. The company estimated that it created $14.2 million (Rs. 939.93 million) in value
through the use of alternative fuels. (See Table 2.)
Table 2 Environmental Positive Value—Carbon Emissions Saved from Alternative Fuel Use (2015)
Conventional Cost of Disposal or CO2 Emissions True Value

Method of Cost of CO2 Saved Saved Created
Alternative Fuel Type Disposal Used (INR/metric ton) (metric ton) (million INR)
(A) (B) (A x B)
Biomass Open Fire* 2,662 75,118 199.97
Industrial Waste, Plastics, Tires, Non-Impregnated Saw Dust Landfill** 3,391 101,113 342.87
Non-Recyclable Oil & other fossil based wastes Incineration** 5,843 67,959 397.08
Total 939.93

* Cost of CO2 saved by avoiding agricultural waste being burnt in the air was considered from the Technical Support Document:
Technical Update of the Social Cost of Carbon for Regulatory Impact Analysis under Executive Order 12866 by Interagency
Working Group on Social Cost of Carbon, US Government. https://www.epa.gov/sites/production/files/2016-
12/documents/sc_co2_tsd_august_2016.pdf, accessed June 2017.
** Cost of Disposal (landfilling and incineration) was derived from TruCost Natural Capital at Risk (April 2013)
http://naturalcapitalcoalition.org/wp-content/uploads/2016/07/Trucost-Nat-Cap-at-Risk-Final-Report-web.pdf.
Measures to reduce clinker proportion in the cement, energy efficiency, and biological sequestration
also enabled the company to reduce CO2 emissions significantly. In 2015 the net specific kgCO2
emission per tonne of cement was 545 kg, down 29.4% from the 1990 levels.
By quantifying the environmental costs and benefits of its carbon-related activities, Ambuja
expected to drive improvements and better manage risk. While Indian companies were not taxed on
carbon emissions, recent regulatory developments indicated a coming change that could negatively
impact Ambuja’s earnings. In 2012, the Government of India launched its ‘Perform, Achieve and Trade’
(PAT) scheme that set energy efficiency targets for polluting industries. For Ambuja, this meant that it
had to improve the energy efficiency of their plants by 5% over a three-year period. If the company fell
short of these targets, the government would levy a $153.2 (Rs. 10,154) fine per metric ton of oil
equivalent. On the other hand, if the company exceeded targets, it would receive tradable energy
saving certificates. Similarly, in 2015, the passing of India’s Renewable Purchase Obligation (RPO)
required power heavy industries to purchase 12.5% and 2.5% from non-solar and solar renewable
sources, respectively. Finally, the company also anticipated a 25% probability that India would begin
levying a $10 tax per ton on carbon emissions. Given these scenarios, Ambuja estimated that it ran the
risk of losing $14.2 million (Rs 940 million), by 2020. Kapur highlighted the strategic implications,
“‘Polluter pays’ legislation means that how Ambuja manages its exposure to current and future
regulations will increasingly determine future earnings. In the same vein, it is critical for us to be able
10
to effectively measure and communicate the positive work that we are doing. An inability to do so will
undermine our ongoing efforts.”
Water
Although the company’s operations were not water intensive, a majority of Ambuja’s plants were
located in water-stressed locations. Kapur explained Ambuja’s resulting emphasis on water
management, “If the community around us faced water shortages that came in the way of farming or
people’s health, our plants would be the first thing to get scrutinized.” Given increasing shortages in
India, water use by industry was a politically sensitive issue. In 2014, Coca Cola Company, India was
forced to shut down a bottling plant due to allegations that the company exceeded the legal limit of
groundwater extraction. A local campaigner remarked, “This was a great victory and a welcome
confirmation that local communities could successfully take on big, powerful business.” 22 Singh put it
in context, “We were doing far more to replenish water than we were depleting it. This was a conscious
decision that we made keeping in mind that water was mission critical for our communities.”
Having implemented an entirely dry process in its kilns, cement making at Ambuja was not water
intensive. However, there were other parts of the process—the use of water in captive power plants
and the use of water-cooled condensers—that were water intensive. Tiwari emphasized the social
implications of water use: “We are not a water guzzling company. But given that many of our sites are
in water scare regions, cement makers that used more water would be less desirable neighbors for local
populations than those that use less water.” In order to determine the cost of water use, Ambuja first
recorded water consumption across its sites. It then used the World Resource Institute’s Aqueduct
software—an interactive tool that mapped water scarcity around the world—to determine plant-wise
scarcity percentage levels.23 Using those scarcity levels, it correlated the social cost of water using an
analysis undertaken by TruCost, an environmental data and research agency. Finally, the company
multiplied the water consumption figures (per site) with the social cost of water consumption. The true
value calculation showed that the value erosion in value through water consumption was $19.8 (Rs.
1,312.6) million. (See Exhibit 10a for Environmental Cost of Water Use.)
To calculate the positive value generated by its water harvesting investments, Ambuja used the
same methodology. It multiplied water credits earned per site by the social cost of water in the region.
In 2015 the company generated $110.1 million (Rs. 7.30 billion) in value through its water investments.
(See Exhibit 10b for Value Generated Through Water Harvesting.) However, the investment cost borne
by ACF was not considered in this calculation. Singh explained, “Investment costs for projects like
these went into the Foundation’s financial statement as it was considered an expenditure towards CSR
initiatives.” As a result of its efforts, Ambuja was certified as water positive by 4.03 times in 2015, which
increased to 5.5 times water positive in 2016. It was the only water positive cement company in India. 24
While there was no legislation relating to water usage and conservation, Ambuja expected that it
was just a matter of time before the Government introduced restrictions on water. Much like carbon,
Ambuja expected policymakers to start pricing water and introduce a penalty for those who used water
over set limits. Internal estimates anticipated water could cost around $0.15/m3 (Rs 10/m3).
Measuring social value of water presented interesting challenges. In a good rainfall year, water
scarcity levels dropped reducing the social benefit of water conservation efforts. This made it seem that
Ambuja’s value addition had decreased. Further, ACF had to make some decisions looking at factors
beyond efficiency. As Singh explained, “Rooftop rainwater harvesting was our most expensive water
harvesting initiative. But it was also the best solution for accessing drinking water. In this case, the
community’s needs were prioritized over cost.” Overall, as compared to 2011, the total water
withdrawal volume in 2015 reduced by about 14% and water harvesting volume increased by 73%.
11
Ambuja reused and recycled about one million cubic meter of water in 2015, or about 14 % of its total
water withdrawal. The company had no discharge of water or wastewater into natural resources like
streams, lakes or ponds.
Analysts acknowledged that measuring water conservation was far more complex than carbon.
Subsequently, a functioning credit system was more complex to devise. 25 First, rainfall in India was seasonal
with the majority of rainfall coming during the monsoon season. Consequently, the timing of water credits
was important for companies like Ambuja. Second, unlike carbon credits, locality and immediacy was
important for water, especially in water stressed areas. Therefore, the location of the water credit also
needed to be considered. Third, some argued that water saved from any intervention needed to be allocated
to another use in order for it to gain value. Finally, since only water of certain purity could be used for
humans, agriculture and livestock, the quality of water also needed to be considered.
Human Life and Skill Development

Ambuja was committed to ‘zero harm’ at its workplace. While workplace safety initiatives had
substantially reduced the number of onsite injuries, the company did experience one fatality and 134
injuries in 2015. To quantify the value lost by these casualties, referred to October 2007 edition of Social
Indicators Research journal that addressed the statistical value of human life and injury. It concluded
that $0.30 million (Rs. 20.21) million in earning capacity was cumulatively lost by such mishaps. (See
Exhibit 11a for Cost of Fatalities and Injuries.)
Recognizing that only 3% of India’s workforce received formal training, ACF established the Skill
and Entrepreneurship Development Institute (SEDI) in 2006. SEDI offered short courses in different
trades that helped train young people, largely of agrarian backgrounds, to enter the formal workforce.
To calculate the social positive value of SEDI, Ambuja first counted the number of persons trained at
each training site. Then, using Government data on wage rates per sector, it calculated the difference
in the minimum wages of skilled versus unskilled persons, multiplied the difference with the number
of trainees, and arrived at a value of $0.56 million (Rs. 37.1 million). However, taking into consideration
that SEDI programs were partially funded by ACF, the company only considered those benefits
attributable to ACF’s contribution. It concluded that ACF’s value created was $0.47 million (Rs. 31.3
million). (See Exhibit 11b for Value of Skilling.)
ACF ‘s healthcare intervention programs worked towards preventative and curative care across its
rural locations. The foundation provided support through mobile dispensaries, diagnostic centers and
health camps. In 2015, to determine the social value of its healthcare programs, the company first tallied
the number of patients who had visited their healthcare sites. Then using a 2009 study conducted the
state government of West Bengal, it approximated that patients in rural areas were willing to pay up to
$3 (Rs.200) for primary healthcare services. 26 Taking into consideration that healthcare programs were
partially funded by ACF, they only considered those benefits that were attributable to the
Foundation’s contribution. It concluded that ACF created value worth $0.13 million (Rs.8.83 million).
(See Exhibit 11c, Social Positive Value-Healthcare Programs.)
Ambuja faced several challenges around measuring both the negative and positive externalities of its
social activities. Ashwin Raykundalia, Head (Health and Safety) at Ambuja commented on the sensitive
nature of measuring human casualty, “It made us feel uncomfortable to assign a monetary figure to a
person’s life. Also, what if different values were assigned to different types of people? How would that
be seen amongst our stakeholders?” Tiwari commented on the limitations in calculating SEDI’s value,
“The Foundation invested heavily in skilling but the value add measured was minimal as we used the
government’s mandated wage rate as a standardized figure.” The government figures only took into
account 300 days of part-time employment, when in fact most of the trainees went on to full-time
12
employment. The benefit of skilling a person was calculated for only a period of one year, when arguably
the trainee benefitted long after the initial year. Raykundalia conceded, “We exercised caution when
assessing the value of social activities because we did not want to seem as if we were overreaching. Our
conservative estimates didn’t always do justice to the substantial work that we were doing.”
The methodology behind determining the value of ACF’s healthcare programs presented its own
set of challenges. In the absence of other standardized benchmarks, Ambuja used a regional survey of
one state to understand a rural patient’s willingness and ability to buy healthcare. However, it was
unclear if the same value could be applied to patients across India. Furthermore, the calculation was
unable to factor in the convenience and accessibility of ACF programs. Furthermore, while public
health services in India were highly subsidized, they were not always available to patients due to poor
facilities, shortage of doctors, and geographic constraints. Kapur noted the limitations of these factors
on the model, “How do you factor in the time it took for patients to get there, the wages lost waiting in
line and the risk of infection that our programs were preventing? These factors were critical to patient
outcomes but could not be captured in our analysis.”
Looking Ahead
Reflecting on the work done by Ambuja and ACF, Ajay Kapur noted, “Typically, when people talk
about the environmental and social impact of a business, it is done qualitatively with a strong emphasis
on the negative impacts of the business. There is rarely a discussion about the positive value that a
company creates.”
The True Value analysis, on the other hand, helped Ambuja identify the value created by material
socio-environmental actions, thereby shifting the conversation towards the performance of non-financial
metrics. The company had learned a significant amount about True Value implementation, improved its
methodology for measuring social and environmental externalities and created databases to track the
performance of various social and environmental initiatives. However, while there existed globally
accepted monetary values for carbon and gaseous emissions, methods to measure the value, especially
long-term impact, of water, education, quality of life and health remained relatively less developed.
Kapur considered the path forward. Was their understanding of True Value sophisticated enough to
drive investment decisions? If yes, how should Ambuja better integrate True Value in its investment
process and engagement with stakeholders? Or was ACF’s SROI method good enough to communicate
with stakeholders? Did the True Value methodology supplement, complement or detract from the
great work done by ACF. And finally, should Ambuja publicly disclose the details of the True Value
analysis? Would it help, hurt or distract from the work of the company?
13
Exhibit 1 Top 10 Cement Producing Nations and their Percentage of Global Carbon Emissions (2015)
Source: Source for Cement Production: “Major Countries in Worldwide Cement Production from 2010-2015,”
https://www.statista.com/statistics/267364/world-cement-production-by-country/, accessed November 2016.
Source for CO2 Emissions: Global Carbon Atlas http://www.globalcarbonatlas.org/en/CO2-emissions, accessed
5/11/2017.
14
Exhibit 2 Map of Ambuja Cement Facilities, 2015
Exhibit 3 Sources of Funding at Ambuja Cement Foundation- 2006-2016 (INR Millions)

* Donor agencies including funds received from other corporate foundations, and domestic and international donor agencies.
** Direct Funding is government funding that is not received directly by ACF but goes directly towards a project that ACF is
involved with.
15
Exhibit 4 Ambuja Cement Foundation Activity wise Performance Indicators, 2014-2016
16
Exhibit 5 Ambuja Cement Foundation
Agriculture
ACF’s agricultural interventions focused on farmers and their families. Like its holistic approach to water, ACF
aimed to work with farming communities to improve productivity, increase profitability and ensure sustainability.
By 2016, ACF had worked with over 130,000 farmers and 17 Farmer Producer Organizations to improve yields,
expand crop diversity, save water and increase profits. As with its water initiatives, many ACF projects ran with
the support of public and private sector partners including local government, NABARD, State Agricultural
Universities, the Indian Council for Agricultural Research, IDH Sustainable Trade Initiative* and Tata Trusts.
Skill Development & Human Life
According to ACF, in 2016, 15 million Indians entered the work force but only 25% were properly trained. 1 The
divide was particularly stark in rural areas. Therefore, ACF undertook a series of programs through its Skills &
Entrepreneurship Development Institute (SEDI) to identify the needs of local businesses and develop programs that
addressed those needs. By 2016, SEDI offered 42 job-training courses in 20 centers across the ACF service region.
The program had graduated over 32,000 youths and was averaging 7,000 graduates per year. The job placement
rate for young people who successfully completed the programs was 72%. Additionally, some 3000 enterprises
were started by SEDI graduates (30% women).2
As part of its human development activities, ACF focused on basic social services, and the creation of
entrepreneurial skills relating to health, education, income-generation, and women’s empowerment. One such
program trained neonatal workers—called “Sakhis”— in rural villages to support and advocate on behalf of
expectant and new-mothers.3 By 2016, over 350 Sakhis were trained to serve as a needed bridge between mothers
and the health system in rural areas. ACF also addressed a range of other public health challenges—many of which
disproportionality impacted women—including sanitation, sexually transmitted diseases, and malnutrition. 4
Alternative Fuels
A more recent CSR focus was the development and use of alternative fuels. The direction was largely in line
with Ambuja’s attempts to improve efficiency during energy generation—the fuel source used to power its kilns—
and ACF’s commitment to water conservation. In 2013, Ambuja began converting its self-owned and dedicated
power plant in Gujarat to accept fuel sources other than coal, including groundnut shells. Similarly, a plant in Punjab
was converted to run almost exclusively on rice husks. In both cases the proximity of the fuel source—in these cases
agricultural communities—played a role in its adoption. 5
The need for farmers in the alternative fuel value chain highlighted the collaboration between Ambuja, ACF and
local communities. ACF program officers worked with Ambuja employees to set up FPOs centered on the
procurement of biofuels such as wheat and cotton stalks, cow dung, sugarcane and residues from cumin and
mustard seeds. While Ambuja benefited from the low-cost inputs, farmers also developed an additional revenue
stream. The whole process strengthened ACF’s commitment to farmers and sustainability 6
Source: Compiled from; 1), 2) Skill and Entrepreneurial Development Institute,” Ambuja Cement Foundation, 2016; 3) Ambuja
Cement Foundation, “Annual Report 2015-2016,”; 4) Ambuja Foundation, “Annual Report 2015-2016,” &
“Comprehensive Healthcare Programme,” Ambuja Cement Foundation website, http://www.ambujacement
foundation.org/focus_areas/healthcare_issue.html, accessed October 2017; 5) Kripa Raman, “ACC, Gujurat Ambuja
Looking at Alternative Fuel Materials,” The Hindu Business Line, November 2013,
http://www.thehindubusinessline.com/todays-paper/tp-economy/acc-gujarat-ambuja-looking-at-alternative-fuel-
materials/article2195253.ece, accessed October 2017; and 6) “Case Study-Inclusive Business: Biomass Procurement as
an Alternative Fuel,” Holcim, 2014, http://www.holcim.com/fileadmin/templates/CORP/doc/SD13/
130619_Case_Study_Biomass.pdf, accessed October 2017.
* An Indian-based NGO, largely funded by European institutions that focused on agricultural development in rural India
17
Exhibit 6a Kodinar
Source: Company documents: Ambuja Cement Foundation - Economical Value of Social Impact Report.
18
Figure 6b Rabriyawas
Source: Company documents: Ambuja Cement Foundation - Economical Value of Social Impact Report.
19
-20-
518-063
Exhibit 7a Kodinar Impact Map
Company documents.
Source:
-21-
518-063
Exhibit 7b Rabriyawas Impact Measures and Financial Proxies
Company documents.
Source:
-22-
518-063
SROI at Rabriyawas and Kodinar
Company documents.
Exhibit 8
Source:
Exhibit 9a Ambuja True Value (2015)
Summary of Activities under True Value Bridge- 2015
23
Exhibit 9b Ambuja True Value (2015)
Summary of True Value Bridge- 2015
24
Exhibit 10a Environmental Negative Value—Water Extraction at Select Ambuja Plant Sites (2015)
Exhibit 10b Environmental Positive Value—Rainwater Harvesting at Select Ambuja Plant Sites (2015)
Note: The World Resource Institute’s Aqueduct software—an interactive tool that mapped water scarcity around the
world—was used to determine plant wise scarcity percentage levels. The social cost of water is considered from
Natural Capital at Risk: Top 100 Externalities of Business, April 2013, the report by TruCost.
25
Exhibit 11a Social Negative Value—Cost of Fatalities and Injuries (2015)
Note: Statistical Value of Fatalities and Major & Minor Injuries were obtained from S.Madheswaran, “Measuring the Value
of Statistical Life- Estimating Compensating Wage Differentials among Workers in India. Social Indicators Research,
2007. Accessed June 2017.
Exhibit 11b Social Positive Value—Skilling & Entrepreneurship Development (2015)
Difference in Total additional

No. of persons min. wages of income (assumes Total ACL Benefits
trained, April skilled person 300 working Spending Spending attributable to
2015-March v. non-skilled days, millions (millions (millions ACL (millions
State 2016 person INR) INR) INR) INR)
(A) (B) (C) A*B x 300 (D) (E) (C*E)/D

Punjab 248 64.5 4.80 - - -
Chatisgarh 104 17 0.53 3.32 3.20 0.51
Maharashtra 378 24.39 2.77 13.21 9.61 2.02
MP 392 96 11.29 3.7 2.57 7.84
Rajasthan 1,159 20 6.95 11.95 6.09 3.54
UP 250 60.15 4.51 3.41 2.95 3.90
HP 269 44.17 3.56 12.52 4.87 1.38
West Bengal 570 45.19 7.73 6.47 4.79 5.72
Gujarat 1,113 17 5.68 13.84 11.22 4.60
Uttarakhand 219 29.43 1.93 5.93 5.40 1.76
Total 4,702 50 74.35 50.70 33.93
Source: Source for wages: Indian Institute of Management Paycheck India Project, http://www.paycheck.in/main/labour-
law-india/work-and-wages, accessed May 2017.
26
518-063 -27-
Exhibit 11c Social Positive Value—Healthcare Programs (2015)
Sankrail Dadri Bathinda Chandrapur Roorkee Nalagarh Darla
Patients benefitted from health camps 11,807 249 1,168 1,612 487 670 2,677
Patients treated through mobile & weekly dispensaries 1,044 2,206 - 10,741 4,543 7,390 2,248
Total Patients Benefitted 12,851 2,455 1,168 12,353 5,030 8,060 4,925
Total Spending 4,347,000 607,174 89,836 2,573,000 758,341 6,980,800 570,605
Share of ACL Funds in total expenditure of initiative (%) 44% 96% 100% 100% 89% 43% 79%
Willingness to pay for Healthcare Services (INR)* Rs.200
True Value attributable to ACL (millions INR) 1.13 0.47 0.23 2.47 0.89 0.69 0.78
Bhatapara Farraka Ambujanagar Rabriyawas Ropar Surat Total
Patients benefitted from health camps 832 467 3,362 0 1,325 595 25,251
Patients treated through mobile & weekly dispensaries 2,915 0 8,488 6,815 0 0 46,390
Total Patients Benefitted 3,747 467 11,850 6,815 1,325 595 71,641
Total Spending 1,552,767 19,8184 761,158 548,890 62,992 153,550 19,204,297
Share of ACL Funds in total expenditure of initiative (%) 57% 100% 1% 94% 81% 94%
Willingness to pay for Healthcare Services (INR)* Rs. 200
True Value attributable to ACL (millions INR) 0.43 0.09 0.03 1.28 0.21 0.11 8.83
Source: The willingness to pay for healthcare services (Rs.200) was derived from S. Mazumdar and M. Guruswamy, “Demand and Willingness to Pay for Healthcare in rural West
Bengal,” Social Change Journal (December 2009).
* The figure was determined using a study for willingness to pay for malaria and diarrhea treatments and the study found that on average customers were willing to pay Rs. 200 for
treatment. http://www.indiaenvironmentportal.org.in/files/Health%20care.pdf, accessed June 2017.
Endnotes
1
American Cement Manufacturers website, “How Cement is Made,” http://www.cement.org/cement-concrete-basics/how-
cement-is-made, accessed November 2016.
2
Shraddha Mishra, “A Review on Environmental and Health Impacts of Cement Manufacturing Emissions,” International
Journal of Geology, Agriculture and Environmental Sciences, Volume 2 Issue 3, June 2014,
https://www.woarjournals.org/admin/vol_issue1/upload%20Image/IJGAES021313.pdf, viewed November 2016.
3
Shraddha Mishra, “A Review on Environmental and Health Impacts of Cement Manufacturing Emissions,” International
Journal of Geology, Agriculture and Environmental Sciences, Volume 2 Issue 3, June 2014, https://www.woarjournals.org/
admin/vol_issue1/upload%20Image/IJGAES021313.pdf, viewed November 2016.
4
India Brand Equity Foundation website, “Cement Industry in India,” http://www.ibef.org/industry/cement-india.aspx,
accessed November 2016.
5
“Construction Materials in India,” Marketling Industry Profile October 2016 page 7-9. Accessed May 2017.
6
7
8
9
Cement Industry Federation website, “Cement Emissions,” http://www.cement.org.au/SustainabilityNew/
ClimateChange/CementEmissions.aspx, accessed November 2016.
10
https://www.epa.gov/enforcement/cement-manufacturing-enforcement-initiative.
11
http://www.forbes.com/sites/jenniferhicks/2014/06/23/green-cement-to-help-reduce-carbon-emissions/#40ad64db5b93,
12
Martina Bertoldi et. al., “Health effects for the population living near a cement plant: An epidemiological assessment,”
Environmental Epidemiology and Cancer Registry Unit, National Cancer Institute, https://www.ncbi.nlm.nih.gov/
pubmed/22245540, accessed November 2016.
13
Statista website, “Major Countries in Worldwide Cement Production from 2010-2015,”
https://www.statista.com/statistics/267364/world-cement-production-by-country/, accessed November 2016.
14
www.theguardian.com/environment/2013/nov/20/90-companies-man-made-global-warming-emissions-climate-change.
15
https://www.theguardian.com/environment/2007/oct/12/climatechange.
16
Holcim website, “Holcim Environmental Policy,” http://www.holcim.com/fileadmin/templates/CORP/doc/
Sustainable_Dev/Environment_Policy.pdf, accessed November 2016.
17
http://economictimes.indiatimes.com/news/company/corporate-trends/mahindra-mahindra-tops-csr-list-in-india-even-
as-companies-scale-up-operations/articleshow/49330470.cms.
18
http://www.conserve-energy-future.com/advantages_disadvantages_rainwater_harvesting.php.
19
Ambuja Cement Foundation, “Annual Report 2015-2016.”
20
http://www.holcim.com/uploads/CORP/Holcim_IPL_Final2.pdf.
21
Page 14, Holcim Integrated profit and Loss Statement 2014 available at
http://www.holcim.com/uploads/CORP/Holcim_IPL_Final2.pdf, accessed on June 10, 2017.
22
https://www.rt.com/news/167012-coca-cola-factory-closed-india/.
23
http://www.wri.org/applications/maps/aqueduct-atlas/.
24
www.worldcement.com/asia-pacific-rim/11032015/ambuja-cements-is-indias-leading-water-positive-company-493/.
25
https://www.theguardian.com/sustainable-business/net-positive-feasible-water.
26
http://www.indiaenvironmentportal.org.in/files/Health%20care.pdf.
28

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REV: JUNE 20, 2019

Measuring True Value at Ambuja Cement

To be the most sustainable and competitive company in our industry.

— Ambuja Vision Statement

The Cement Industry in India

Environmental and Human Health Impact of Cement

Ambuja Cement Foundation

Development Model & Activities

Relationship with Ambuja Corporate

Water Resources Management

SROI (Social Return on Investment)

Business True Value

Figure 1 True Value Earnings Bridge

Source: Company documents.

Ambuja Calculates True Value

Table 1 Environmental Negative Value—Carbon Emissions (2015)

CO2 from raw materials

Source: Company documents.

Conventional Cost of Disposal or CO2 Emissions True Value

Source: Company documents.

Human Life and Skill Development

Exhibit 2 Map of Ambuja Cement Facilities, 2015

Source: Company documents.

Exhibit 3 Sources of Funding at Ambuja Cement Foundation- 2006-2016 (INR Millions)

Source: Company documents.

Exhibit 4 Ambuja Cement Foundation Activity wise Performance Indicators, 2014-2016

Source: Company documents.

Exhibit 5 Ambuja Cement Foundation

Skill Development & Human Life

Exhibit 7a Kodinar Impact Map

Exhibit 7b Rabriyawas Impact Measures and Financial Proxies

SROI at Rabriyawas and Kodinar

Exhibit 9a Ambuja True Value (2015)

Summary of Activities under True Value Bridge- 2015

Source: Company documents.

Exhibit 9b Ambuja True Value (2015)

Summary of True Value Bridge- 2015

Source: Company documents.

Source: Company documents.

Source: Company documents.

Exhibit 11a Social Negative Value—Cost of Fatalities and Injuries (2015)

Source: Company documents.

Exhibit 11b Social Positive Value—Skilling & Entrepreneurship Development (2015)

Difference in Total additional

(A) (B) (C) A*B x 300 (D) (E) (C*E)/D

Exhibit 11c Social Positive Value—Healthcare Programs (2015)

Sankrail Dadri Bathinda Chandrapur Roorkee Nalagarh Darla

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(A) (B) (C) AB x 300 (D) (E) (CE)/D