Godrej Properties

Godrej Properties has set targets to reduce its scope 1 and 2 emissions intensity by 73% by 2035 compared to 2020. This target has been submitted to the Science Based Targets initiative (SBTi) for validation. The company has also set a target for 60% of its suppliers to have set SBTi-validated targets by 2027. Godrej Properties can substantiate its commitment to a low-carbon transition by also setting targets for its scope 3 emissions, which account for 99.8% of the company’s emissions.

Godrej Properties does not report how it works with its clients to reduce emissions. The company can improve its performance in this area by creating a client engagement strategy, governed by a clear policy and integrated into business decision making. Moreover, the company’s client engagement strategy will benefit from setting specific emissions reduction targets and embedding actions that drive change.

Godrej Properties has implemented board-level oversight of climate change, with one member of the board demonstrating significant expertise in the low-carbon transition. Further, 12% of the incentive programmes for company executives is linked to environmental, social and governance (ESG) metrics, but it is unclear what percentage of this is directly related to climate mitigation targets. Godrej Properties has completed climate change scenario analysis to test its low-carbon transition plan using two scenarios, including a 1.5°C scenario. Moreover, it has published the results in qualitative form. However, the company can strengthen this by also including a quantitative financial analysis.

Scope 3 emissions from purchased goods and services make up nearly 83% of Godrej Properties’ emissions. The company’s strategy to reduce emissions through its supplier engagement is to encourage its key suppliers to set science-based targets. The company aims to have 60% of its suppliers set science-based targets by 2027. Furthermore, it requires all its suppliers to complete ESG self-assessments and report the scores of the assessments in their annual reports. By collaborating with its suppliers in research and development (R&D) or mitigation projects, Godrej Properties can ensure that their scope 3 emissions are incorporated in these projects.

Godrej Properties has set targets to reduce its scope 1 and 2 emissions intensity by 73% by 2035 compared to 2020. This target has been submitted to the SBTi for validation. Further, the company commits that 60% of its suppliers will have set SBTi-validated targets by 2027.

Godrej Properties’ low-carbon transition plan is informed by climate change scenario analysis. Additionally, one member on the company’s board has significant expertise in the low-carbon transition. However, the company’s transition plan does not contain financial aspects beyond the installation costs of specific projects.

Godrej Properties has installed a 100 kilowatt (kW) solar on-grid system for its project offices in Mamurdi, Pune. This can be dismantled post-project and reinstalled elsewhere. The company also tracks operational energy consumption with building management systems. Furthermore, it integrates energy efficiency into the building design by adhering to energy guidelines.

As Godrej Properties only publishes scope 3 emissions from the use of its sold products since the financial year 2020-2021, it was not possible to calculate an emissions intensity trend for the company. However, between 2020 and 2022, the scope 3 emissions intensity of the company increased from 0.11 to 0.19 kilograms of carbon dioxide equivalent (CO2e) per square foot.

Godrej Properties has set scope 1 and 2 emissions reduction targets that it has submitted to the SBTi for validation. However, 99% of the company’s emissions are scope 3 emissions. The company aims to reduce these emissions by encouraging its suppliers to set science-based targets. In addition, the company should set its own scope 3 emissions reduction targets.

No evidence was found of Godrej Properties’ commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.

No evidence was found of the company undertaking just transition planning to mitigate the social impacts of the low-carbon transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

No public commitment by Godrej Properties was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s actions to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks.

The company discloses the actions it takes to provide training opportunities for workers and affected stakeholders. For instance, it offers an automated learning management system to its workers and aims to provide employability skills that empower 250,000 people. Furthermore, the company discloses the measures it takes to embed equality of opportunity for women and vulnerable groups in these actions. It does this through a mentorship programme which helps in empowering women to take up leadership positions. However, no public commitment by the company was found stating its intention to re- and up-skill workers displaced by the low-carbon transition.

No relevant disclosure was found to show if Godrej Properties identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.

No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

While Godrej Properties commits to respecting human rights and the ILO fundamental rights at work, no evidence was found that it expects its business relationships to respect the ILO fundamental rights at work. Further, no evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and in its supply chain. Moreover, no evidence was found of the company disclosing the stakeholders whose human rights have been affected by its activities. While the company has a grievance mechanism available to workers to report human rights concerns, it is unclear whether external individuals and communities who may be adversely impacted can also make use of it.

Godrej Properties commits to respecting worker health and safety and expects the same commitment of its business relationships. However, no evidence was found that the company discloses quantitative information on health and safety for its workers. Further, no evidence was found of the company having a time-bound target for paying all its workers a living wage. The company discloses some indicators of workforce diversity, including the age, gender and nationality of its workforce by employee category. Additionally, the company commits to promoting gender equality and women’s empowerment and discloses indicators of workforce diversity.

While Godrej Properties has a publicly available policy statement prohibiting bribery and corruption, no other company policies or commitments related to key ethical business topics – personal data protection, tax, and lobbying and political engagement – were found in the public domain. This includes ensuring ethical business conduct throughout its operations and in its relationships with business partners.