0% found this document useful (0 votes)
193 views160 pages

HPCL

Uploaded by

Shivansh Singh
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
Download as pdf or txt
0% found this document useful (0 votes)
193 views160 pages

HPCL

Uploaded by

Shivansh Singh
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
Download as pdf or txt
Download as pdf or txt
You are on page 1/ 160

2022-23

Hindustan Petroleum Corporation Li


Limited
imited
Sustainability Report 2022-23
Nayaa HPCL…
Hindustan Petroleum Corporation Limited (HPCL) is transforming
the energy landscape with solutions that satisfy a spectrum
of requirements not just across the nation but also beyond.
Embedding diversified energy requirements with myriad
innovative offerings, we constantly endeavour to bring the
latest solutions in the evolving energy and responsible climate
landscape. We operate in an environment steered by innovative
technology to create value for our stakeholders.

We advance hand-in-hand with nature and In light of these transformative trends, we are
live the mantra of Delivering Happiness adjusting our course to head seamlessly into
through safety, sustainable growth and the future while upholding our commitments
community engagement every moment. to achieving the economic, ecological
and social responsibilities outlined in
Acknowledging the profound impact on sustainable development.
sustainability and the pressing need to
address ongoing challenges, the energy Inspired by these shifts, HPCL has undertaken
sector is swiftly transforming and adopting to channelise itself with renewed resolve to
strategies to mitigate and minimise its create a Nayaa HPCL. Nayaa in every respect
influence on the environment. This evolution and known across the globe for its human
points towards a future characterised values, integrity, superior performance, agility
by a diverse energy landscape, reduced and out-of-box thinking by rekindling the true
carbon emissions and a strong focus on HP Spirit which our future generations would
customer needs. be proud of.
Contents

02 Introduction 102 Health and Safety at HPCL


02 2022-23 Highlights 102 Safety Management
04 About the Report 103 Safety Stewardship
06 C&MD’s Message 107 Safety in Transportation
12 Message from Directors 109 Hale and Hearty HPCL
110 Safety and Security of Critical Assets
16 HPCL at a Glance
16 About HPCL 112 Building Lasting Relationships
21 Supply Chain 112 Customer Satisfaction
29 Awards and Recognitions 114 Quality Assurance
114 Quality Control
32 Governing a Successful Organisation 115 Customer Centric Initiatives
32 Governance 117 Listening to our Customers
34 Board of Directors
39 Internal System and Control Mechanisms 118 Engaging with the Local Communities
118 Corporate Social Responsibility
48 Sustainability at HPCL 121 Lives Touched Through CSR Projects
48 Operating Context
50 Stakeholder Engagement 122 Economic Performance
54 Materiality 122 Physical Performance,
Infrastructure Projects
58 Doing Business Responsibly 131 Financial Performance
58 Environment Management 134 Going Digital
64 Energy Efficiency
67 GHG Emissions and Air Quality 137 Alignment of our Business Practices to
72 Biodiversity 137 India’s Nationally
Determined Contributions
74 Research and Development
137 UNGC Principles
80 Water Management
138 Task Force on Climate-related
83 Waste Management Financial Disclosures

86 Manpower and Work Environment


139 Independent Assurance Statement
86 People Management
89 Performance Management,
Career Growth, Progression
144 GRI Context Index

90 Rewards and Recognition 151 Abbreviations


90 Nurturing Talent
91 Employee Engagement
92 Capacity Building, Training
and Development
97 Industrial Harmony
98 Human Rights

2022-23
The cover page option provides a pictorial view of Registered Office and Corporate
various businesses of HPCL in a creative rendering. Headquarters
Hindustan Petroleum Corporation Li
Limited
imited
Sustainability Report 2022-23

The entire business of HPCL is shown encircled Hindustan Petroleum Corporation Limited,
by the 9 principles of National Guidelines of Petroleum House, 17, Jamshedji Tata Road,
Responsible Business Conduct (NGRBC) denoting Churchgate, Mumbai – 400 020,
HPCL’s commitment to conduct its business in a Maharashtra, India
responsible manner.

The infographics of NGRBC denotes the


Marketing Headquarters
9 principles of NGRBC viz.
Hindustan Petroleum Corporation Limited,
P1: Ethics, transparency P5: Human Rights;
Hindustan Bhawan, 8, Shoorji Vallabhdas Marg,
and accountability; P6: Environmental
Ballard Estate, Mumbai – 400 001
P2: Product life cycle and Protection;
Maharashtra, India
sustainability; P7: Public Policy
P3: Employee Well-being; Advocacy;
P4: Stakeholder P8: Inclusive Growth;
Engagement; P9: Customer Satisfaction
Introduction

2022-23 Highlights

Environment

85,042 185.26 MW 20.43 Crore kWh


standard refinery fuel tonnage (SRFT) (100.9 MW of wind power + 84.36 MW Renewable energy generation
of solar power)
Energy conservation at refineries
Renewable power capacity

23.25 MMT 10.59% 5,46,672 KL


Highest-ever pipeline throughput Ethanol blending achieved Rainwater harvested

9,75,429 KL 1st 476


Water recycled at Mumbai refinery In India to launch bio-marine fuel Cumulative LOIs released for
compressed biogas plants

2,037 4,406 MT
Retail outlets with EV-charging Plastic waste recollected
facility

2 Hindustan Petroleum Corporation Limited


Social Economic

35.6 Million ~9.75 Lakh ₹ 4,64,684 Crore


safe man-hours Mapped beneficiaries of Highest sales revenues
Best-ever safety record at CSR projects
Mumbai refinery
₹ 92,204.21 Crore
Contribution to the exchequer

₹ 154.85 Crore 16,000+


Expenditure on CSR activities Scholarships provided to students 43.45 MMT
from socially and economically Highest-ever sales volume
disadvantaged sections

3,800+ 38.97% Zero


Cybersecurity incidents leading to
Students trained for employment Procurement from MSEs* breach of business-critical systems
enhancement at SDI,
Visakhapatnam

*Micro and Small Enterprises (MSEs)

Sustainability Report 2022-23 3


Introduction

Report Profile
Reporting Boundary
About the Report
The report boundary remains unchanged from
Our Sustainability Report 2022-23 our previous reports and encompasses all
provides insights into our approach fully owned operations of the Company. This
towards integrating sustainability into boundary includes:
our governance system, strategy, and Æ Our refineries at Mumbai and Visakhapatnam
performance. This Report highlights the
Æ The operations of the Strategic Business
environmental, social, and economic Units (SBUs) under marketing:
aspects of our operations. This Report
• Aviation
aims to share our sustainability • Industrial & Consumer
commitments with various stakeholders, • LPG
including investors, shareholders, • Lubes
• Natural Gas
customers, suppliers, employees,
• Biofuels and Renewables
communities, and the government. • Supplies, Operations and Distribution
We consistently review our performance • Projects and Pipelines
on sustainability parameters and • Retail (Company-owned and Company-
operated outlets).
communicate the same with our
stakeholders. Æ This report does not include joint ventures,
subsidiaries and international operations.
HPCL’s significant location of operation is
Reporting Period India. Entities included in the consolidated
financial statements are detailed in our
We prepare and publish our Sustainability Annual Report for 2022-23 which can be
report annually. In this Sustainability Report, accessed at HPCL Corporate Website.
material information related to our business,
performance, operating context, material risks, Æ The Corporation has robust internal
interests of its stakeholder’s strategy, outlook management systems governing all facets
and prospects and governance, among others, of operations. Data/information which
covering the financial year April 1, 2022, to forms part of this report gets collected from
March 31, 2023, is presented which also aligns these internal systems at the corporate
to the reporting period of our Corporate and operative levels. The data presented
Annual Report. in the report gets sourced either from our
Enterprise Resource Planning (ERP) system
The most recent Sustainability report for and IT applications or directly from the
2021-22 and all our previous Sustainability operations within the report boundary.
Report are available at: https://www.
Æ The data measurement techniques and
hindustanpetroleum.com/pages/sustainability
underlying assumptions/calculations are
mentioned duly in the relevant sections of
the report.

4 Hindustan Petroleum Corporation Limited


Restatements Assurance
Restatements to data, if any, have been marked The quality of information and disclosures in
in relevant sections of the Sustainability report this report are maintained through a robust
with their reasons and effects. assurance process, leveraging our internal
expertise and external assurance methodology.

The information in this Report has undergone


appropriate internal reviews. It has been
subjected to independent assurance by a third-
Frameworks, Guidelines and Standards
party, M/s Bureau Veritas India Private Limited,
The report provides a transparent disclosure of under the AccountAbility Assurance Standard
HPCL’s Environmental, Social and Governance AA1000AS version 03 Type 2 Moderate
performance for the reporting period. assurance. Readers can access further details
on the independent assurance statement in the
This report has been prepared in-accordance annexure of this Report.
with the Global Reporting Initiative (GRI)
Standards, GRI 1: Foundation 2021, Applicable
GRI Sector Standard(s): GRI 11: Oil and Gas
Sector 2021 and has also been aligned to the
requirements of: Forward-looking statements
This report contains forward-looking
Æ India’s Nationally Determined Contributions
statements that describe projections, targets,
Æ Mission LiFE
expectations and forecasts based on certain
Æ United Nations Sustainable Development
assumptions, historical data and predictions
Goals (UN-SDGs)
of future events, which are continuously
Æ United Nations Global Compact
evolving considering contemporary industry
(UNGC) Principles
developments, market conditions, government
Æ Sustainability Accounting Standards Board
regulations, laws and other prevailing factors
(SASB)
therefore, our actual results, performance or
Æ Task Force on Climate-related Financial
achievements could differ materially from those
Disclosures (TCFD)
projected or implied. Important or unforeseen
Æ Sustainability reporting guidance for the
factors that could make a difference to the
oil and gas industry by The International
Corporation’s operations include economic
Petroleum Industry Environmental
conditions, demand/supply and price
Conservation Association (IPIECA); The
conditions in the domestic and international
International Association of Oil and Gas
market, changes in regulations and other
Producers (IOGP); The American Petroleum
incidental factors.
Institute (API)

Feedback
We welcome feedback on our reports to
ensure that we are on the right path to disclose
and make relevant information available to
our readers and stakeholders in an easily
comprehensible manner.

Any queries, suggestion or feedbacks


can be submitted giving your details at:
[email protected] or online on the
HPCL website at https://crminterface.hpcl.
co.in/CRMInterface/hpclcomplaints.aspx

Sustainability Report 2022-23 5


C&MD’s Message

Building a Better,
More Sustainable World

Dear Esteemed Stakeholders,

Thank you for partnering with us in traversing the by a vision that transcends boundaries. Increasing
ebbs and the flows as your Company crosses one momentum of business growth, we continue
milestone after another to attain its vision of being to ‘Deliver Happiness’ by fulfilling the nation’s
a World Class ‘Energy’ Company. I am delighted to energy needs while demonstrating the highest
unveil the vibrant Sustainability Report for the fiscal standard of corporate responsibility with focus on
year 2022-23, capturing the remarkable journey of environmental and social sustainability. As part of
Hindustan Petroleum Corporation Limited (HPCL) our communique, we have shared our Environment,
during this period. HPCL stands at the frontier of Social and Governance (ESG) and Sustainability
a transformative energy revolution, reshaping not disclosures for the year 2022-23 in our inaugural
only our nation's energy landscape but extending Business Responsibility and Sustainability Report,
its influence far beyond. Amid the rippling currents as mandated by the Securities and Exchange Board
of change in the energy sector, including the of India (SEBI). We appreciate SEBI for its proactive
progressively changing Oil & Gas Industry, HPCL is step in mainstreaming ESG in corporate disclosures.
actively engaged through a process of reflection, While our annual report provides insights into
reconceptualisation, adaptation and action to various aspects of our financial and physical
transform in to an “Energy” Company. performance, this Report goes further, offering a
comprehensive view of our accomplishments, future
prospects, and business landscape, meticulously
Reporting What Matters aligned with the latest GRI standards. This report
Committed to providing energy to society in varied speaks about our untiring efforts in cultivating a
forms, anytime and across the nation, we are driven sustainable business model.

6 Hindustan Petroleum Corporation Limited


HPCL’s five-year strategy roadmap up to The Corporation plans to achieve net zero Scope
1 & 2 emissions by 2040 and is guided by the
2025–26, christened as “T25 strategy," validated roadmap developed in 2022-23 towards
is under implementation. The aim is to this direction. We have identified numerous
initiatives under the categories of Fuel Substitution,
capture opportunities in the changing Green Hydrogen, Energy Efficiency & new refining
energy landscape, leverage the technologies, usage of renewable energy, flare
emerging opportunities, navigate the reduction and abating emissions by CCU/offsetting,
to reduce overall emission intensity.
future challenges, and diversify into
new business lines helping in de-risking To have focussed approach, we have set up separate
verticals for Natural Gas Business, Biofuels and
business portfolio. Renewable Energy and an Energy transition Cell to
drive these activities. The progress of our initiatives
shall be transparent disclosed in a timely manner
to stakeholders.
ESG – From Priority to Core Value
Responsible business ethos is the foundation of Being a signatory of United Nations Global Compact
a solid, sustainable business and is deep rooted (UNGC), HPCL supports the principles on Human
in our Vision, Mission and Values. HPCL has been Rights, Labour, Environment and Anti-Corruption.
able to reap the benefits of the triple bottom line HPCL’s business activities are aligned with the
approach by aligning R&D, manufacturing and United Nations’ Sustainable Development Goals
marketing with safe and environmentally responsible (SDGs) and are also in consonance with India’s
practices. We are constantly reviewing and Nationally Determined Contributions (NDCs).
embracing environment-friendly processes, striving
to reduce carbon footprint and making operations
resource efficient. The early adoption of sustainable
business practices has helped your Company
to consistently stay resilient in the challenging
business environment.

The future of Oil and Gas is exciting and challenging


characterised by increasing competition, policy
reforms and enforcement of progressively evolving
environmental and carbon related regulations. In a The Dawn of "Nayaa HPCL"
nutshell, we see the future as “Less Carbon, More
Inspired by the transformative tide in oil and gas
Energy”. Over the years, we have incorporated ways
industry to be multi-energy, low-carbon, and
of working with enhanced focus on ESG aspects
customer-centric, HPCL has embarked on the
moving from compliance to priority to making it a
journey to become a "Nayaa HPCL" – a paradigm
core value.
shift towards being globally recognised for its
HPCL’s five-year strategy roadmap up to human values, integrity, exceptional performance,
2025–26, christened as “T25 strategy," is under agility and innovative thinking. Our aim is to craft an
implementation. The aim is to capture opportunities energy enterprise that generates value and drives
in the changing energy landscape, leverage the responsible growth, all while nurturing the spirit of
emerging opportunities, navigate the future HP-FIRST for generations to come.
challenges, and diversify into new business lines
helping in de-risking business portfolio.
The Year that Was
The T25 strategy is intended at creating value and In the fiscal year 2022-23, we achieved an
delivering growth responsibly by strengthening unprecedented turnover of ` 4,64,684 Crore,
existing businesses, leveraging new growth engines a remarkable growth of 24.7% in a challenging
such as petrochemicals and natural gas, and seizing macroeconomic landscape. Our refineries achieved
green and emerging opportunities with a focus on record-breaking crude throughput of 19.09 MMT
technology and innovation. Special emphasis on with a capacity utilisation of 107% and our sales
ESG parameters and building strategic partnerships numbers soared to new heights of 43.45 MMT.
will provide a competitive edge to the organisation Average GRMs for 2022-23 were US$ 12.09 per
in the changing business landscape. barrel compared to US$ 7.19 per barrel during
the corresponding period of the previous year,

Sustainability Report 2022-23 7


C&MD’s Message

recording an increase of 68.2%. The exceptionally We have a green cover of over 1,450
high international oil prices along with suppressed
marketing margins on select transport fuels, acres inside our premises as on March
severely impacted the profitability. 31, 2023. We focus on planting tree
HPCL continued to augment its refining and species which are native to the location,
distribution capacities to ensure availability and have low water requirement and offer
seamless and cost-efficient distribution energy
high carbon sequestration.
products across the country. During the year, HPCL
attained multiple milestones in major projects which
have sustainability built in by design.
of ethanol tankages was carried out coupled with
The ongoing Visakh Refinery Modernisation transportation of ethanol by railway rake.
Project (VRMP) attained the critical milestone of
HPCL is constructing a Second-Generation ethanol
commissioning a highly energy efficient 9 MMTA
bio refinery at Bathinda, Punjab, with a production
Crude Distillation Unit (CDU-4). The commissioning
capacity of 100 KL per day of ethanol from biomass.
of the 697 km long Vijayawada Dharmapuri pipeline
HPCL’s first Compressed Biogas Plant (CBG) of
(VDPL), along with a major greenfield terminal at
100 TPD Biomass processing capacity has been
Dharmapuri and the 650 km long Hassan-Cherlapalli
commissioned at Badaun, UP. HPCL launched the
LPG pipeline (HCPL), helped increase the operating
Country’s first Bio-Marine fuel from its Visakh New
cross-country pipeline network to 5,132 km thereby
Black Oil Terminal (10% Biodiesel Blended VLSFO).
enabling mass transportation of products in an
This Biodiesel supply was sourced from International
environment friendly manner.
Sustainability & Carbon Certification (ISCC)
We also reached 21,186 Retail Outlets mark with the certified supplier to meet the stringent global norms
commissioning of 1,161 Retail Outlets during 2022- specified for bunker supply to ships.
23. In addition, 45 new LPG distributorships and
HPCL is setting up a waste-to-biogas plant at
51 non-domestic distributorships were established
Yerada Park in Vizag, Andhra Pradesh and a
during the year, bringing the total number of
Compressed Biogas (CBG) plant of 100 TPD of cow
distributors to 6,283 and 328 respectively.
dung processing capacity under the CSR scheme
Several projects are underway to strengthen our at Pathmeda, Rajasthan. During the year, HPCL
distribution network. These include the Bathinda- released Letters of Intent (LOIs) for setting up 63
Sangrur product pipeline, the Haldia- Panagarh Compressed Bio-Gas (CBG) Plants with a production
LPG pipeline, the revamping of Raipur and Vashi capacity of ~321 ton/day, taking the cumulative to
POL terminals, new LPG plants at Varanasi (Uttar 476 LOIs with capacity of ~2,584 ton/day across the
Pradesh) and Abu Road (Rajasthan) and the 80TMT country to increase usage of biofuels in the energy
LPG Cavern at Mangaluru. and transportation sectors.

During 2022-23, HP Green R&D Centre (HPGRDC) In the natural gas value chain, HPCL along with
developed and launched 33 new products/ its JVs have authorisation for setting up of CGD
technologies. HPGRDC filed 90 patents in 2022- 23, network in 23 Geographical Areas (GA’s) comprising
taking the cumulative Indian and international patent 48 districts spread across 12 states with planned
applications to 443. During the year, 36 patents were investment of over ` 10,000 Crore during next
granted to HPGRDC, taking the cumulative patents few years. CNG facilities were added in 301 retail
granted to 160 as of March 31, 2023. outlets taking the total number of HPCL outlets
with CNG facilities to 1,387 as of March 2023.
HPCL’s subsidiary HPCL LNG Limited has achieved
Less Carbon, More Energy – Greening the mechanical completion of the 5 MMTPA LNG
Business Lines terminal at Chhara, Gujarat.

In consonance with our long-term vision to reduce With 1,026 new EV charging stations commissioned
carbon intensity of our products, HPCL increased during 2022-23, HPCL now has EV Charging facilities
its scale of low carbon energy offerings during the at 2,037 outlets i.e. nearly 10% of its retail network.
year. We achieved 10.59% of ethanol blending in
motor spirit while also being the first oil marketing On the renewable electricity front, HPCL has 100.9
company to commence 12% blending from MW of installed wind power which generated 18.29
December 2022. E20 fuel was launched at 23 Retail Crore kWh during the year. The installed capacity of
Outlets along with Green Mobility Rally by Hon’ble solar power was increased by ~30 MW to reach 84.36
Prime Minister in February 2023. Augmentation MWp within HPCL premises and at 10,475 retail

8 Hindustan Petroleum Corporation Limited


outlets. HPCL also provided solar street lights at 400 of waste plastic, planted more than 1,500 trees,
locations in Uttar Pradesh under CSR benefitting the sold more than 9,000 high efficiency thermal LPG
public in an environment friendly manner. stoves with efficiency more than 73% and organised
numerous awareness session such as nukkad natak,
HPCL is using Green Hydrogen in operating hydro street plays, school competitions etc.
processing pilot plants and batch reactors at its
Green R&D Centre. HPCL was the first Oil Marketing HPCL has best-in-class operating systems,
Company to place an order for Electrolyser to practices and procedures oriented to environmental
produce Green Hydrogen. The 370 TPA green preservation to achieve environmental stewardship.
hydrogen plant at the Visakh Refinery is in an Both refineries and major marketing installations
advanced stage of completion. have adopted ISO 14001 environment management
system to ensure continuous improvement in
In pursuit of energy efficient operations, both environmental protection. HPCL also has a
Mumbai and Visakh refineries have taken a process of HSSE audits to ensure compliance with
proactive role by continuously improving their applicable environmental laws and regulations at
operating practices. HPCL refineries through various locations.
Energy conservation schemes achieved a savings of
85,042 SRFT. Various energy saving initiatives are State-of-the-art effluent treatment plants for
also implemented at marketing locations such as treating and recycling effluent water are available
efficiency monitoring, high efficiency prime movers, at major locations to ensure the protection of the
energy audits, stakeholder awareness among others. environment. During the year, Mumbai refinery
recycled about 975 TKL of water. As part of ongoing
We have a green cover of over 1,450 acres inside expansion project (VRMP), Integrated Effluent
our premises as on March 31, 2023. We focus Treatment Plant is installed where in the treated
on planting tree species which are native to the effluent will be further treated in RO DM plant and
location, have low water requirement and offer high reused. The reject will be used as make up for sea
carbon sequestration. water cooling tower.
HPGRDC also continued to support energy transition Best-in-class technologies such as Volatile
through innovation, research, indigenisation, cost Organic Compound (VOC) monitoring and the
optimisation and revenue generation improving the Leak Detection and Repair (LDAR) programme
self-reliance. During the year, HPGRDC developed has been adopted for monitoring and controlling
a process for producing H2 enriched CNG (H-CNG) fugitive emissions at major installations. Vapour
technology without emission of CO2 and requirement Recovery Systems (VRS) have been installed at
of any water; Battery and electrolyser technology various supply locations and 1,458 retail outlets.
(for producing green hydrogen) and scaled up blue HPCL recollected 4,406 MT of plastic waste
hydrogen generation using in-house developed (including packaging) as part of Extended Producer
process intensification concept for demonstration. Responsibility. Environment awareness programmes
are regularly conducted in the Corporation to
promote sustainability in all facets of the business.
Caring for the Environment For addressing the issue of used oil, HPCL joined
HPCL is actively implementing the action plan for hands with the Petroleum Re-Refiners Association
‘Mission LiFE’, an India-led global mass movement to of India (PRAI), in association with Rosefield Energy
nudge individual and community action to protect Tech during 2022-23 to hold a Seminar on “Business
and preserve the environment, propounded by our Opportunities in Used Oil – Transformation by
Hon’ble Prime Minister. 2027” at New Delhi. This is the first time when
all the stakeholders (Policy Makers/Lubes
During January–April 2023, HPCL displayed Mission Manufacturers/Re-Refiners/Subject Matter Experts
LiFE creatives on energy conservation, water on environmental studies and taxation, etc.) were
conservation and single use plastic reduction at brought to a common Platform. This collaboration
1,250 retail outlets, engaged more than 5,000 Pro with the lube eco-system of the country was made
Planet People, recollected more than 1,000 MT to help fast-track the journey of this entire sector
towards a more sustainable future through adoption
of principles of circular economy.

1,026
New EV charging stations commissioned
during 2022-23.

Sustainability Report 2022-23 9


C&MD’s Message

Enriching People, Fostering Growth We engage the extended workforce such as


contract workers engaged through contractors,
HPCL’s success is intricately woven with the apprentices, tank truck driver crew, suppliers,
competency of its workforce. HPCL has over dealer and distributor staff among others to raise
8,500 trained and loyal employees with an average their awareness levels on important issues. During
age ~42 years. The human resources profile of 2022-23, we conducted over 25,000 trainings
the organisation is a mix of energetic youth and for LPG deliverymen and Showroom staff, over
experienced seniors so as to harmonise the efforts 4,100 programmes for Retail Outlet Customer
jointly. We have diverse expertise to handle various Service Assistants, over 3,700 programmes for
forms of energy and materials, i.e. Solid/Gas/ Transport crew, about 860 programmes for dealers/
Liquid fossil fuels, emerging fuels, renewables distributors among others.
among others. HPCL has embraced the principles
of DEI (Diversity, Equity, and Inclusion) to foster

25,000
innovation, engage employees, attract top
talent, enhance reputation and meet legal and
societal expectations.
Trainings for LPG deliverymen and Showroom
staff, over 4,100 programmes for Retail Outlet
HPCL has embraced the principles of DEI
Customer Service Assistants
(Diversity, Equity, and Inclusion) to foster
innovation, engage employees, attract top We celebrate Statutory Compliance Fortnight every
talent, enhance reputation and meet legal year to recognise and honour the enormous and
and societal expectations. toiling efforts put in by the workers and disseminate
awareness among them of their rights. This initiative
We have myriad employee support policies follows a multi-dimensional approach of Education,
and programmes to help employees meet their Engagement and Empowerment.
aspirations. During 2022-23, we had a return-to- During the year, HPCL also celebrated Vigilance
work rate of 98% for our permanent employees Awareness Week engaging about 1.65 lakh citizens
availing parental leave. We have nurtured a across 2,941 locations with the Central Theme
culture of continuous learning, participation, and “Corruption Free India for a developed Nation”.
feedback. Multi-modal training methodologies such
as webinars, experiential workshops, e-modules,
certifications, simulations, action learning, drama- Digital Dexterity for Organisational
based workshops, etc. are undertaken with Sustainability
extensive use of technology for progressive learning
and building the capabilities of employees. Recognising technology's transformative power, we
have woven it into our fabric to enhance customer
HPCL has been making continual improvements experiences, transparency, and convenience. With
in HSE management systems and procedures with initiatives like SMART terminals and advanced
the adoption of new technologies, upgradation of analytics, we are enhancing safety, operational
infrastructure, benchmarking of existing practices efficiency, and stakeholder satisfaction. The
and regular surveillance audits. Safety performance, "Parikalp" digital transformation programme and
OISD and Internal Audit, recommendations, Project "Aarohan" further solidifies our commitment
their compliance status and incident analysis are to technological advancement.
periodically reviewed by Senior Management and
also reported to CFD and Board. During the year, During the year, the ERP modernisation project,
HPCL underwent Organisational HSE Audit by aimed at building a robust digital foundation
OISD wherein the HSE management systems of the in HPCL, has reached an advanced stage of
organisation were audited. completion. HPCL also launched training practices
with Virtual Reality (VR) techniques in both
Vulnerability Index (VI) for job safety monitoring refineries, AI/ML based demand forecasting solution
has been implemented in refineries in 2022- for fuel stations and LPG distributorships, Crude
23. Vulnerability Index implementation helps in to Customer application for strategic insights to
identifying potential safety risks and hazards in management teams, analytics and visualisation
operations, enabling proactive measures to mitigate solution for enhancing workforce productivity,
those risks and ensuring a safer workplace. drone surveillance for pipelines, robotic loading
system for LPG cylinders among various other
Mumbai Refinery has achieved its best-ever safety digital initiatives.
performance, with 35.6 million man hours of safe
operation as of March 31, 2023.
10 Hindustan Petroleum Corporation Limited
HPCL undertook several cybersecurity upgrade Awards
projects and trainings thereby ensuring nil
cybersecurity incidents during the year. For outstanding performance in its sustainability
commitments, HPCL has been recognised as the
"Sustainably Growing Corporate of the Year" at the
Serving Those in Need FIPI Oil and Gas Awards 2022. This esteemed award
acknowledges HPCL's significant impact in the realm
HPCL has always strived to be a model of excellence
of sustainability and its unwavering commitment to
and a catalyst of transformation in all its endeavours
a greener and more sustainable future. Ministry of
be it business prosperity or its commitment to
Corporate Affairs, Government of India announced
society. It has always believed in creating shared
HPCL as Winner of National CSR Awards 2020 under
values and delivering happiness through its various
Sub-category ‘1.1: Companies having eligible CSR
initiatives that have touched millions of lives.
Spend equal and above ` 100 Crore’.
During the year, HPCL spent ` 154.85 Crore
on CSR activities covering more than 200 CSR
projects under the focus areas of Childcare, Charting the Way Forward
Education, Health Care, Skill Development, Sports As we move ahead, we find inspiration in "Mission
and Environment and Community Development LiFE" introduced by Hon'ble Prime Minister.
touching about 9.75 lakh lives. HPCL also has several Our initiatives and projects echo its essence,
community-based initiatives which have benefitted inspiring positive behavioural change and
various sections of the society as a whole. fostering environmentally conscious lifestyles.
As the global energy landscape evolves, ‘Nayaa’
This year, we also released the impact assessment HPCL is embracing change with environmental
of 9 CSR projects having outlays of one crore rupees and social commitment, leading by example to
or more and which have been completed during create sustainable value and deliver happiness
financial year 2020-21. through collaboration.
HPCL observed Swachhata Pakhwada Campaign by With gratitude for your unwavering support and
undertaking various initiatives to spread awareness constructive feedback, we extend our best wishes
through all HPCL locations and involving more 20 for success in all your endeavours.
Lakh stakeholders across country. For Swachhata
Pakhwada campaign held during the period July Thank you
1-15, 2022, HPCL was awarded among top three
Oil and Gas CPSEs by Ministry of Petroleum and Pushp Kumar Joshi
Natural Gas.

⊲ "Sustainably Growing Corporate of the Year" award to HPCL at the FIPI Oil and Gas Awards 2022
Sustainability Report 2022-23 11
Message from Directors

Leading with Purpose

RAJNEESH NARANG
Director – Finance

HPCL is committed to serving the energy needs such as COSO ERM 2017 and ISO 31000:2018
of our nation. The year gone by was indeed a Framework. The updated ERM Policy covers all
challenging one for the Oil industry as a whole and types of risks impacting the strategic objectives and
OMCs in particular. HPCL was no exception to the performance of the organisation, including ESG-
dynamics of geopolitical developments. Despite related risks, information and cyber security related
these challenges, our Corporation achieved all- risks and business continuity plan.
round stellar performance in physical parameters
during 2022-23. The ongoing geo-political situation The design of internal controls and their operating
has had its bearing on Crude prices. Stressed effectiveness for the key business processes is
marketing margins, mainly on Retail petroleum tested by reputed external consultant who observed
products and hardening of interest rates with that there are no material weaknesses in Internal
adverse INR/USD exchange rates, self-sufficiency Controls over Financial Reporting. As of March 2023,
in meeting marketing volumes from own refineries, your Corporation commands international long
impacted us. term issuer rating at par with sovereign ratings from
Moody’s Investors Services and Fitch Ratings.
To ensure availability, seamless and cost-efficient
distribution of petroleum products across the The finance function is working with the strategy
country, HPCL significantly expanded the refining group to contribute towards Corporation’s Net Zero
and supply chain infrastructure during the year with Target. Substantial investments are planned towards
a capital expenditure of ` 14,043 Crore (including achieving Net Zero target. Work is underway on
equity investment in its JVCs and subsidiaries) unlocking value by consolidation of all green and
in 2022-23. emerging business opportunities under one umbrella
and also exploring options including carving out to
HPCL has updated the existing Enterprise Risk unlock value in the lubricant business which would
Management (ERM) framework by adopting the best enable a differentiated focus on this high growth
practices recommended by international standards high potential distinct business line.

12 Hindustan Petroleum Corporation Limited


been identified and are undergoing detailed study
for feasibility.

Refineries are committed to prioritising workplace


safety, health and the environment in all aspects of
their operations. The Vulnerability Index (VI) for job
safety monitoring has been implemented in refineries
in 2022-23. Mumbai Refinery has achieved its best-ever
safety performance, with 35.6 million manhours of safe
operation as of March 31, 2023.
S BHARATHAN
Director - Refineries Showcasing continuous efforts towards innovation and
research, HP Green R&D Centre (HPGRDC) received
its 36th patent during the year, taking the total patents
HPCL refineries play a strategic role in the crude to to 160; 90 patent applications were filed in the year,
products value chain to ensure availability, quality, taking the total to 443.
safety and viability while prioritising environmentally
sustainable and robust practices. During 2022-23, During 2022-23, 33 new products and technologies
HPCL refineries achieved highest ever combined were developed and launched by HPGRDC.
crude throughput of 19.09 MMT with a growth of HPGRDC is also aligned to HPCL’s decarbonisation
36.7% over historical. Highest ever annual MS, HSD initiatives and during the year undertook process for
and LOBS production was also achieved during producing H2 enriched CNG (H-CNG) technology
the year. Market opportunities were capitalised by without emission of CO2 and requirement of any water;
maximising opportunity import of crude oil. Battery and electrolyser technology (for producing
Mumbai and Visakh refineries are certified with ISO green hydrogen) and scaling up of Blue H2 using
14001 environment management system. Best-in- in-house developed process intensification concept
class practices are being implemented at refineries for demonstration.
to address impacts on air, water, soil, GHG emissions HPGRDC is a 'Platinum' rated building by Indian
among others. Green Building Council (IGBC) and 5-star-rated by
HPCL has undertaken major projects at refineries Green Rating for Integrated Habitat Assessment
for increasing the refining capacity, substantially (GRIHA) Council. Continuing its momentum on
improving distillate yield, reducing dependence adoption of green features, during the year, HPGRDC
on outsourced products and improving energy administration block which is approx. 60,000 sq.ft. with
efficiency. During 2022-23, there was reduction a designed load of 200 KW has been awarded with Net
in the energy intensity (GJ of Direct and Indirect Zero Energy Rating by IGBC. This is the first building
Energy consumed per ton of crude throughput) of with “Net Zero Rating” for HPCL and one amongst the
Refineries by 7.2% while there was a reduction in the very few in India.
GHG Intensity (Scope 1+2 GHG emitted in tCO2e per Refineries have been focused on reducing water
ton of crude throughput) by 5.5%. While numerous footprint by wastewater recycling, water efficiency
energy efficiency schemes were included in Mumbai and rainwater harvesting. In Mumbai refinery about
Refinery Expansion Project which was completed 1,42,368 KL rainwater was harvested in 2022-23
last year, as part of Visakh Refinery Modernisation thereby saving equivalent quantity of BMC water
Project, a highly energy efficient 9 MMTPA Crude for community usage. In Visakh Refinery, as part of
Distillation Unit, LPG and Off-gas Treating Units ongoing expansion project (VRMP), state-of-the-
were commissioned in March 2023. During the year, art integrated Effluent Treatment Plant is under
HPCL refineries achieved 85,042 SRFT of energy advance stage of commissioning with Zero Discharge
savings in absolute terms. concept. These efforts will go a long way in ensuring
Our refineries have a major role to play in sustainability of scare natural resources.
contributing to HPCL achieving its goal of Net HPCL was a part of “The Energy Transition Advisory
Zero Scope 1 and 2 emissions by 2040. We have Committee of the Ministry of Petroleum & Natural Gas
identified major decarbonisation levers as Fuel which published the report titled "The Green Shift"
substitution, Green Hydrogen, Energy Efficiency in keeping with India’s endeavour to reach Net Zero
and new refining technologies, Usage of renewable emissions by the year 2070 and making India a key
Energy, Flare reduction among others. Projects have player in the global fight against climate change.

Sustainability Report 2022-23 13


Message from Directors

AMIT GARG
Director – Marketing

As a responsible corporate citizen, HPCL has been pipeline network was increased to 5,132 km with the
in the forefront of leading the change in the new commissioning of 2 new pipelines viz. 697 km long
energy landscape and actively participating in Vijayawada-Dharmapuri pipeline (VDPL) along with
inclusive growth. The Company strives to accelerate a major greenfield terminal at Dharmapuri and 650
India’s transition to a low carbon path and create km long Hassan-Cherlapalli LPG pipeline (HCPL).
value for the nation by elevating the quality of life
across the entire socio-economic spectrum. HPCL has implemented Environment Management
Systems and Greenco Rating System at our major
Sustainability is at the core of HPCL's mission, and marketing installations. HPCL has a renewable
our annual sustainability report serves as a vital tool energy installed capacity of 100.90 MW (wind)
to communicate our progress, achievements, and and 84.36 MWp (captive solar). The wind power
future goals in this crucial area. The sustainability projects generated 18.29 Crore kWh during the year.
report for 2022-23 represents a comprehensive Solarisation of 4,067 retail outlets was undertaken
overview of our Environmental, Social, and in 2022-23, whereby about 49% of the total retail
Governance (ESG) initiatives, highlighting our outlets have now been solarised.
commitment to responsible business practices,
environmental stewardship, and social responsibility. HPCL is actively working towards promoting the
usage of biofuels in the transportation sector. During
The year 2022-23 has been a phenomenal year of 2022-23, HPCL achieved ethanol blending of 10.59%
physical performance for HPCL. HPCL achieved its in motor spirit and launched E20 fuel at 23 retail
highest ever annual sales of 43.45 MMT with growth outlets. Compressed biogas plant (CBG) with 100
of 11%, registered highest ever sales in all the three TPD biomass processing capacity has been setup
major products with Petrol sales growing by 16.2%, at Budaun. Another CBG plant with 100 TPD of
Diesel sales by 16.5% and LPG sales by 4.9%. This cow dung processing capacity is being set up at
was also the 7th consecutive year of market share Pathmeda, Rajasthan under CSR scheme. This year
gain in Domestic LPG segment. The lubricants also witnessed the launch of Country’s first Bio-
business also registered an impressive YoY growth Marine fuel at the hands of Secretary-PNG, MoPNG
of 16.0%. which is 10% Biodiesel blended with VLSFO.

With deeper focus on ESG, HPCL is taking HPCL is poised on a path of growth by offering
proactive steps to improve the “Green” quotient clean, green and differentiated products and
of its products as well as marketing infrastructure. services while adopting environment and social
HPCL retail outlets with CNG and EV charging stewardship in its businesses and supply chain
facilities stood at 1,387 and 2,037 respectively as network. We are dedicated to embodying
of March 2023. Towards reducing carbon footprint ‘Nayaa HPCL’ in all aspects of our business to
and enhancing safety in product movement HPCL transform sustainably.

14 Hindustan Petroleum Corporation Limited


SURESH K SHETTY
Director – Human Resources

HPCL has recorded its best-ever physical During the year, ‘HP Possible’ - a flagship 11-month
performance during 2022-23, a testimony to leadership development programme aimed at
exemplary performance of its most valuable asset building leadership competencies in future leaders
– its employees. Being a value-driven Corporation, was launched. We introduced ‘Vista - Agla Kadam’
the key focus is towards ensuring consistent and - a role-based competency framework, learning
quality engagement with employees, retaining and development curriculum model wherein
high performing talent, and providing better 3,900 officers were covered. We also continued
opportunities for employees to grow and build ecosystem-based learning interventions, employee
lasting careers at HPCL. engagement programmes throughout the year
among other initiatives.
Over the years we have made significant strides
in the HR domain from being transactional to To engage the extended workforce and disseminate
becoming transformational. In the times to come awareness among them of their rights, we
enabling human performance and leveraging human celebrated ‘Statutory Compliance Fortnight’ which
potential will continue to be the guiding factor follows a multi-dimensional approach of Education,
for HR. Engagement and Empowerment.

HPCL has embraced the principles of DEI HPCL continues to positively impact the lives of
(Diversity, Equity, and Inclusion) to foster greater those in need through its societal interventions.
inclusivity at the workplace, attract diverse talent, During the year, we were able to touch around 9.75
enhance reputation and meet legal and societal Lakh lives through our CSR activities including our
expectations. The percentage of women employees projects in aspirational districts. We also continued
as a percentage of total employees has been several community-based initiatives which have
steadily increasing over the years. As of FY 23 end, benefitted various sections of the society as
HPCL’s average workforce age is ~42 years. Our a whole.
seniors play an important role in passing on their
experience, positive attitudes and the values of HP
First to the next generation to take the Company to
greater heights.

Among the key HR leading indicators for supporting


Nayaa HPCL are building competencies in the
emerging business lines, enhancing existing
capabilities through developmental programmes
and feedback mechanisms, active engagement
with millennials and building a robust leadership
succession pipeline.

Sustainability Report 2022-23 15


HPCL at a Glance

Transforming Energy
Responsibly
About HPCL Major Products
Hindustan Petroleum Corporation Ltd.
Light Distillates
(HPCL) is one of the largest public sector
Ì Liquefied Petroleum Gas
enterprises under the administrative
Ì Motor Spirit
control of the Ministry of Petroleum and Ì Naphtha
Natural Gas, Government of India, having Ì Hexane
‘Maharatna’ status. We stand 149th and Ì Propylene
Ì Solvent
147th by market capitalisation as of
March 31, 2023, at the BSE Limited and Middle Distillates
National Stock Exchange of India Limited
Ì High Speed Diesel
(NSE). We have a strong presence in the Ì Superior Kerosene Oil
petroleum refining and marketing sector. Ì Light Diesel Oil
Ì Aviation Turbine Fuel
We supply mobility fuels and LPG solutions to Ì Mineral Turpentine Oil
numerous households in India and are the largest Ì JBO
distributor of industrial and automotive lubricants in Ì Lube Oil Base Stock/
the country. We are actively involved in the sale of Turbine Oil Base Stock
bulk petroleum products and the transportation of
such products through pipelines. Furthermore, we Heavy Distillates
are progressively expanding our involvement in the
Ì Bitumen
renewable energy sector, specifically through wind
Ì Furnace Oil
and solar power generation.
Ì Low Sulphur Heavy Stock
Ì Others

SHAREHOLDING PATTERN AS ON MARCH 31, 2023 Pursuant to the Share Purchase Agreement entered
% of total into between the President of India (POI) and Oil
Category issued Shares held
shares
and Natural Gas Corporation Limited (ONGC) for
sale of Government of India (GOI) Shareholding in
Oil and Natural Gas 54.9 77,88,45,375
Corporation Ltd. HPCL, 77,88,45,375 (Seventy-Seven Crore Eighty-
Eight Lakh Forty-Five Thousand Three Hundred
FPI (includes OCBs, 14.36 20,37,03,673
FIIs & Foreign Banks) Seventy-Five) of Equity Shares of ` 10 Each
representing 51.11% of the total paid-up equity
Mutual Funds (Includes AIF) 13.44 19,05,81,178
share capital of HPCL, have been transferred
Public 7.55 10,70,07,142
to ONGC on 31.1.2018. Consequent to the Buy
Insurance Companies 7.97 11,30,69,750 Back of Equity Shares by HPCL during the period
Other Bodies Corporate 0.87 1,23,80,204 from November 17, 2020 till May 14, 2021, the
Foreign Nationals 0.44 62,71,099 percentage of shareholding of ONGC has increased
(includes NRI) from 51.11% to 54.90%.
Financial Institutions 0 61,097
(includes NBFC) Consequent to the transfer of the above shares
Banks 0 559
by GOI to ONGC, the current shareholding of GOI
in HPCL is “NIL”. However, HPCL continues to be
Others 0.47 66,28,268
a Government Company within the meaning of
Section 2(45) of the Companies Act, 2013.

16 Hindustan Petroleum Corporation Limited


Vision Our Values – HP First
To be a world-class energy company known HP First is our cultural motto and instils pre-
for caring and delighting the customers with eminence of HPCL’s vision and mission above all else
high quality products and innovative services and act as a guiding beacon in all our professional
across domestic and international markets endeavours and engagement.
with aggressive growth and delivering superior
financial performance. The Company will It guides us to ensure that the organisational
be a model of excellence in meeting social interest, its long-term sustainability and value
commitment, environment, health and safety creation objectives receive pre-eminence over
norms and in employee welfare and relations. personal egos, aspirations and conflicts.

Free, Frank and Fair


We are informal but disciplined

Mission Integrity
We do the right thing
HPCL, along with its joint ventures, will be a
fully integrated Company in the hydrocarbons
sector of exploration and production, refining
Respect for Individual
and marketing; focusing on enhancement of We value people
productivity, quality and profitability; caring
for customers and employees; caring for Sustainable Performance
environment protection and cultural heritage. We work together towards tomorrow
It will also attain scale dimensions by diversifying
into other energy related fields and by taking up Team Spirit
transnational operations. We connect, collaborate and celebrate

Our Logo, Our Pride


The HP logo serves as the visual representation
of the brand HP. It plays a vital role in
establishing the identity of HPCL in the minds
of consumers and stakeholders. It creates a
distinct and recognisable brand identity, making
it easier for people to identify and connect with
the Corporation.

Our logo conveys essential information about HPCL's


industry, values, and unique selling propositions through
its design elements, colour scheme, and typography. It
conveys that the Corporation is Dependable, Reliable,
Efficient, Business-like and Service-oriented, Nationally
owned and yet an independent entity, not bureaucratic
but innovative and alive.

Sustainability Report 2022-23 17


HPCL at a Glance

Markets Served

Types of customers
The Company’s primary customers can be categorised into domestic (household), automotive, commercial,
government and industrial.

28 States 18 Countries
and 6 UTs
International Presence

National Presence

Refineries
We own and operate two refineries at Mumbai and Mittal Energy Investments Pte. Ltd., Singapore,
(West Coast of India) and Visakhapatnam (East with an equity holding of 48.99% and from the
Coast of India). These refineries process crude oil Mangalore Refinery and Petrochemicals Ltd. (MRPL)
into Light, Middle, and Heavy distillates producing a schedule ‘A’ Miniratna, Central Public Sector
many value-added products. Both refineries Enterprise (CPSE) based in Mangaluru with equity
underwent upgradation to produce BS-VI-compliant of 16.96%.
transportation fuels.
We are setting up a new 9 MMTPA Greenfield
We also own India’s largest Lube Refinery in Refinery-cum-Petrochemical complex at Pachpadra
Mumbai, producing lube oil base stocks which in the Barmer district of Rajasthan through a joint
go into making multiple grades of lubricants, venture company, HPCL Rajasthan Refinery Limited
specialties, and greases. Additionally, we source (HRRL) in joint venture with the Government
our product requirements from Guru Gobind Singh of Rajasthan. The construction activities are
Refinery at Bathinda, a joint venture between HPCL progressing in full swing at the site.

9.5 MMTPA
Mumbai Refinery

8.3 MMTPA
Visakh Refinery*

428 TMT
Mumbai Lube Refinery

11.3 MMTPA
JV HMEL Refinery

15 MMTPA
JV MRPL Refinery
* Under expansion to 15 MMTPA – phase-wise commission in progress

18 Hindustan Petroleum Corporation Limited


HP Green R&D Centre
We have established a
prestigious research and
development (R&D) unit,
'HP Green R&D Centre'
in Bengaluru, to develop
innovative and path-breaking
technologies and products for
the government and private
sector and works closely with
various stakeholders, including
academia and industry.

Marketing Infrastructure
From being a key supplier of kerosene oil in the early create a synergy for our superlative performance.
1900s, we have evolved to meet the country’s fuel Our extensive PAN India marketing infrastructure
demands through various petroleum products over consists of Pipeline network, Terminals/
the last seven decades. Today, we are also catering Installations/Tap Off Points, Aviation Service
to India’s future energy needs through new business Facilities (ASF), Auto LPG Pumps, CNG outlets,
like EVs, Natural Gas, CNG, and CGD. Depots, LPG Bottling Plants, LPG Import Facilities,
Lube Blending Plants, Petrol Pumps, HP Gas LPG
Our business verticals include HP Retail, HP Gas, Distributors, SKO/LDO Distributors, and Lube CFAs,
HP Lubricants, HP Aviation, HP Direct Sales, HP among others, which serve as the connecting link to
Projects and Pipelines, HP Supplies, Operations and place the product to the needs of our customers.
Distribution (SOD), HP Natural Gas & Renewables
and HP Petrochemicals.

Over the years, we have been expanding our


infrastructure and marketing network to delight our
stakeholders through our distinguished products
and services across the country. The end users
of our products include domestic, automotive,
commercial, and industrial segments.

Our marketing infrastructure is supported by a


vast network of 154 offices (Zonal, Regional) in
the Retail, Direct Sales, Lubes and LPG segments
spread across the length and breadth of the
country to bring business offerings near esteemed
customers and close coordination with the
stakeholders for Delivering Happiness through our
differentiated services.

Our Strategic Business Units (SBUs) get ably


supported by other departments/ functions, such as
Audit, Company Secretary, Corporate Strategy and
Planning, Finance, Human Resources, International
Trade and Shipping, Legal, Public Relations, Refinery
Coordination Department, Market Research,
Analysis and Planning, HSE among others that

Sustainability Report 2022-23 19


HPCL at a Glance

Marketing Infrastructure (As on 31.03.2023)

21,186 6
Retail Outlets Lube Blending Plants

156 34
Auto LPG Dispensing Stations Exclusive Lube Depots
(ALDS) (COLD/COD)

1,387 1,638
CNG Outlets SKO/LDO Dealerships

10,475 126
Solarised Outlets Industrial Lube Distributors

18 303
Battery Swapping Stations Bazar Lube Distributors

2,019 15
EV Charging Stations POL – Pipelines
(Including Main Lines, Branch

760
Lines, Spur Lines and JV
Pipeline)

Door Delivery Dispensers

4
55 LPG – Pipelines
(Including Main Line, Branch
LPG Bottling Plants
Line and Joint Investment
Pipelines)

2
LPG Import Locations 3
Ongoing Pipeline Projects

6,283
LPG Distributorships 5,132 kms
Total Pipeline Network

81 Operated by HPCL

Terminals, TOPs and Depots

54
Aviation Fuel Stations

20 Hindustan Petroleum Corporation Limited


Supply Chain
We are committed to adopting responsible Our Supply Chain Network
business practices across our supply chain HPCL supply chain broadly includes the following:
for a greener future and holistic societal
Æ Crude oil suppliers, shipping vendors
development. Among our stakeholders,
our suppliers, distributors, dealers and Æ Dealers, distributors, business partners
transporters are our vital supply chain Æ Transporters including transport crews
partners who are engaged regularly in our Æ Suppliers, contractors including contract
business processes for inclusivity in the workmen, security personnel, services providers,
sustainability ecosystem. material suppliers

We engage with vendors/suppliers in our value


We serve the energy needs of millions of citizens chain from national and international geographies
through our high-quality, value-added products dealing in a wide range of products and services.
and distinguished services. This requires us to Depending on the business process requirements,
have close collaboration and synergies among our these suppliers have various types of engagements,
facilities, infrastructure, network and stakeholders which may range from one-time to short-term or
at various levels in the hierarchies entailing efficient long-term associations as per contractual terms.
management of the supply chains. During 2022-23, we transacted with about 11,000
vendors of which around 3,700 were MSE vendors.

During the year 2022-23, HPCL was conferred with the following Awards:

Æ Express Logistics and Supply Chain Æ Prestigious Awards at the CPSE Conclave
Conclave & Leadership Awards in categories on Public Procurement Policy amongst
of Supply Chain Disruptor of the Year and Maharatna CPSEs during 2021-22
Best Supply Chain Team.1 on Highest Procurement in terms of
procurement value from SC-ST MSEs,
Highest Procurement in terms of % of total
procurement from SC-ST MSEs & Highest
Procurement in terms of procurement value
from Women Entrepreneurs.

Sustainability Report 2022-23 21


HPCL at a Glance

Our Supply Chain Network

Imported Refineries Lube Blending Lube Distributors Bazaar Lubes


Crude Pipeline Plants

Clearing and Industrial


Forwarding Agents Customers

Vessel

Indigenous POL Terminals/ Aviation Service Aircrafts


Crude Terminal Depots Facilities

Rail
Retail Outlets Automotive

Finished Product LPG Import LPG Plants LPG Domestic


Imports Facilities Distributorships Customers
Road

CNG Industrial
Customers

Road

Natural Gas NG Import CNG CNG CNG


Facilities Station Outlets Customers

We also conduct business through Subsidiaries and Joint Venture companies in various areas, including oil
refining and petrochemicals, value-added bituminous products, marketing of POL products, POL pipelines,
natural gas pipelines, LPG pipelines, City Gas Distribution (CGD), LPG cavern, LNG terminal, Aviation fuel
farm facilities and biofuels. Readers can access details of Joint Ventures & Subsidiaries from our Annual
Report and Corporate Website.

22 Hindustan Petroleum Corporation Limited


Significant changes in the supply chain during 2022-23:

Æ Investment of ` 14,043 Crore in 2022-23 (including Æ Commissioned three new LPG plants with a
equity investment in its JVCs and subsidiaries) to combined capacity of 360 TMTPA at Barhi
strengthen Refining & Marketing infrastructure. (Jharkhand), Patalganga (Maharashtra) and
Sitarganj (Uttarakhand).
Æ As part of the Visakh Refinery Modernisation
Project (VRMP), a highly energy efficient 9 Æ The 5 MMTPA underconstruction LNG Terminal
MMTPA Crude Distillation Unit, LPG and Off gas through the subsidiary Company, HPCL LNG
Treating Units was commissioned in March 2023. Limited, achieved mechanical completion in
March 2023.
Æ Commissioned 697 km long Vijayawada-
Dharmapuri pipeline (VDPL) along with a major Æ With the commissioning of 1,161 new Retail
greenfield terminal at Dharmapuri and 650 km outlets, HPCL crossed the milestone of 21,000
long Hassan-Cherlapalli LPG Pipeline (HCPL), Retail outlets during the year and has 21,186
taking the total pipeline network to 5,132 km. Retail outlets under its network.

Greening the Supply Chain


We have mapped our supply chain and continuously energy-efficient modes like pipelines, coastal and
work to identify the bottlenecks, improve logistics rail over conventional road transportation.
and expand the network to enhance the reach
and resource optimality. The wide adoption We are also making strides towards sourcing
of digitalisation and digitisation, technology, materials locally and sustainably to reduce the
resource conservation practices and many other supply chain’s emissions. Various local and small
innovative initiatives have enabled us to synergise vendors are encouraged to participate in green
with our supply chains for environment and initiatives undertaken by the organisation.
social stewardship.
Through continuous evaluation, review and
We utilise best-in-class optimisation tools to plan upgradation of the systems and processes, adoption
and optimise sourcing, transportation linkages of environment-friendly interventions like enhancing
and infrastructure requirements. This helps in the the share of renewables for energy requirements,
reduction of carbon footprint and transportation expansion of transition fuels PNG, CNG, LNG for
costs by maximising product movement through captive usage and in the product basket, promotion
of bio-fuels and expansion of EV charging network,
we are promoting green element in our supply chain.

We map the environmental impacts in our Supply Chain and have put in place mitigation measures to
address the same.

Significant Impact Mitigation Measure

GHG/Air Emissions arising Expanding the cleaner energy offerings such as:
from products • BS VI Auto fuels
• Bio-ethanol, Bio-diesel, Compressed Bio Gas
• Very Low Sulphur Fuel Oil (VLSFO)
• Other allied products such as Long Drain Engine Oils, HP-Diesel Exhaust Fluid, Lubes with
re-refined oils among others
Operational GHG/Air • Vessels engaged are required to meet global emission standards set by the International
Emissions arising from Maritime Organisation (IMO), whereby they use VLSFO for fuel or use scrubbers in the
manufacturing, supply, event of high sulphur fuels
distribution and retailing • Evacuating more than 80% products from refineries through pipelines
• Increasing installed capacities of renewable energy generation within premises and in
retail outlet network
• Deploying energy efficiency measures at refineries and marketing locations
• Having age limit in selection of Tank Trucks used for transporting products
• Installing Vapour Recovery System at major POL terminals/depots and Retail Outlets
• Implementation of GreenCo Rating System at marketing locations
• Sensitisation of value chain partners towards sustainability
• Network optimisation tools for improved logistics and reduced carbon footprint
Used Oils and Product • Setting up of systems for collection and reprocessing of used oils and lube oil packages/
Packaging Waste containers under EPR

Sustainability Report 2022-23 23


HPCL at a Glance

Supplier Assessment
Suppliers, distributors, dealers and transporters We undertake assessments on health and safety
have been identified as important stakeholders and and working conditions for all of our Dealers,
are involved in stakeholder engagement sessions Distributors and Transporters. We also undertake
in order to make them aware of the important supplier screening parameters based on PCBs/ IS
sustainability topics. We choose our suppliers /BIS /OISD /PNGRB /OSHAS / other statutory
on a combination of quality, cost, location and provisions etc. as per applicability or stipulate
compliance to our policies. specific performance criteria on a tender-to-tender
basis per project requirements.

We address significant concerns arising from assessments of health and safety practices and working
conditions of value chain partners:

Retail Network/Dealers/Distributors

Health and Safety Concerns Major Efforts Undertaken

Safety in Operations • A flagship programme called Total Retail Safety is conducted to train field officers on
aspects of retail safety.
• Specialised training programmes are conducted for Dealers/Fore court Sales Managers
(FSMs) and COMCOs/sales officers.
• Management Development Programmes (MDP) are conducted, covering Dealers on
SOP Training and Fore court Sales Managers. Through a structured “Gurukul” training
programme FSMs are trained.
• Training and awareness on Incident handling and Root cause analysis are imparted.
• Field officers carry out Regular Safety Audits/ inspections as per Oil Industry Safety
Directorate (OISD) standard no. 225 Checklist. Corrective actions on violations as per
Marketing Disciplines Guidelines get taken.

Transporters/ TT Crew

Health and Safety Concerns Major Efforts Undertaken

Safety in Road • To promote secure and safe driving habits, safety guidelines, training and awareness
Transportation initiatives, such as Sadak Suraksha and HP-Safety on Wheels (SOW), are carried out
regularly for our transporters and their crew.
• Drivers of the vehicles also possess special endorsement to carry hazardous goods from
RTOs after detailed training as per CMV Rule 9. We include age limit and fitness criteria
for selecting Tank Trucks for transporting products. During the induction of these vehicles
under contract and the pendency of the contract, we ensure that they have RTO-certified
fitness certificates, PESO approval and Pollution under Control certificates before these get
loaded. Regular checks are also get carried out to ensure the Road fitness of the vehicles.
• TT crew working at locations are facilitated with health camps and guided on health issues.
We also organise training Camps for tank truck fleets in collaboration with leading OEMs.
We also award the best drivers.
• As per Transport Disciplines Guidelines, we have implemented a vehicle tracking system
(VTS) to monitor truck movements and corrective actions on violations.

LPG Delivery chain/Customers

Health and Safety Concerns Major Efforts Undertaken

Safe delivery and usage of • Distributors are regularly advised and guided on product safety management through
LPG cylinders campaigns, meetings and training programmes.
• LPG distributors undergo periodic safety inspections and evaluations.
• Specific SOPs for delivery men on product safety and handling are in place.
• SOP has been developed for mass awareness about the safe usage of LPG. LPG users are
continuously engaged with and educated on the safe usage and handling of LPG through
safety clinics.
• Corrective actions on violations as per Marketing Disciplines Guidelines get taken.

24 Hindustan Petroleum Corporation Limited


We make a concerted effort to ensure that all contract for these vehicles, we ensure that they have
our suppliers adhere to national and international RTO-certified fitness certificates, PESO approval
standards. Our suppliers have to abide by various and Pollution under Control Certificate before
terms and conditions of contracts which cover loading. We also conduct regular checks to ensure
topics of safety and health, working environment, that vehicles used for transportation are fit for
compliance to labour laws enactments thereby, the road.
human rights, ethical behaviour, environmental
preservation, etc. We ensure that while our suppliers As a Principal employer, we ensure applicable
help us meet our business objectives and targets, statutory compliances such as the Minimum Wages
quality and safety remain sacrosanct. Act, Employee Compensation Act, etc. are being
made by the respective contractors, including
For us, crude oil is a major raw material. Our timely disbursal of wages through e-payment and
International Trading department undertakes only other statutory benefits, remittance of statutory
Principal to Principal sourcing. Tender Documents contributions of the contract workmen before the
and Purchase Orders/Awards include Anti-bribery concerned Statutory Authorities (EPFO/ESIC,
and Anti-corruption clauses. etc.). Prior to processing the bills, the concerned
contractor needs to attach the proof of ensuring
To ensure responsible execution of shipping applicable Statutory Compliances, remittance of
logistics, the vessels engaged are required to meet contributions before EPFO/ESIC, etc. Periodic
global emission standards set by the International Check audits are conducted wherein compliances
Maritime Organization (IMO), whereby they use Very are checked at three levels i.e. Officer handling the
Low Sulphur Fuel Oil (VLSFO) for fuel or scrubbers activities, Location Incharge and Finance Team level.
in the event of high sulphur fuels. Vessels necessarily
must undertake Protection and Indemnity for $1 This year also Training Programmes were conducted
Billion and are bound by International Conventions to sensitise the employees, workers, and contractual
such as the Civil Liability Convention, International workforce on various aspects of human rights.
Maritime Organization (IMO), International These trainings briefly focused on nuances of labour
Convention for the Prevention of Pollution from legislations viz. prohibition on employment of child
Ships (MARPOL) and International Convention for labour, no forced labour, timely wage payment,
the Safety of Life at Sea (SOLAS) guidelines. payment of statutory payments, ensuring deduction
under PF/ESI and others, Prevention of Sexual
Vessels calling on ports adhere to the requirements Harassment (POSH), safety measures, awareness
of the port authority for enabling the grant of free on various government schemes like Pradhan Mantri
pratique (to ensure crew health) before berthing. Jan-Dhan Yojana (PMJDY), Pradhan Mantri Suraksha
We do not contract aged vessels to ensure Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti
environment-friendly and safe operations. We only Bima Yojana (PMJJY), among others, and focusing
engage vessels with valid Ship Inspection Reports on financial literacy and investment, etc.
(SIRE) assessed and cleared as per Oil Companies
International Marine Forum (OCIMF) guidelines and Observations, if any, arising from the assessments
issued by Oil Majors. We demand a valid certificate carried out by the organisation or statutory
of SIRE during the tendering process and further authorities with respect to human rights and
ensure that the certificate is valid during the period other labour law enactments are appropriately
that the vessel is engaged by us. responded to, by us and mechanisms are set in
place to prevent a recurrence of the same. We
We engage a large fleet of tank trucks and LPG- share the learnings through various media with the
packed trucks for transportation of its products. concerned stakeholders.
During induction during the pendency of the

⊲ HPCL engages regularly with its value chain partners


Sustainability Report 2022-23 25
HPCL at a Glance

Approach to Contract Transparency

Æ We follow the guidelines issued by the Æ Details of Purchase orders placed are
Government of India, CVC and other displayed on the corporate website as
competent authorities from time to time well as the CPP portal as per the Public
and procurement is based on the principles Procurement Policy.
of fairness and transparency taking into
Æ We have a corporate-wide ERP system where
consideration the specific requirements
all purchase orders, receipts, and payments
pertaining to the type of industry.
get recorded.
Æ We have our own e-procurement platform
Æ We also have an online bill-tracking system
certified by STQC under MeITY. All
where vendors can track the status of
tenders are floated on the e-Procurement
their payments.
platform or on the GeM platform. Receipt
and opening of bids are done on the Æ All payments are made through
e-Procurement platform using digital keys electronic systems.
and digital signatures and can be viewed by
Æ We have functionality for recording all
the participating bidders.
measurements of works contracts through
Æ Reverse auction if specified in the ITB is also eMB (electronic measurement book) which
conducted on our online Reverse Auction provides a concurrent recording of the
platform or on the GeM platform. physical and financial progress of works.
These joint measurements flow through
Æ The e-Procurement platform and reverse
a defined workflow, from the contractor
auction platform have audit trails. GeM
to the approving authority; and further
follows their own methodology of document
enable payments.
security/audit trails.
Æ The annual procurement plan is also displayed
on our website.

Promoting Local Procurement and Vendor Development


In order to encourage our first level of
Percentage of input material (inputs to total
suppliers and contractors, an approved inputs by value) sourced from suppliers
list of suppliers for a product or service Directly sourced from MSMEs / small producers
is maintained in the organisation to float
38.97%*
limited tender enquiry up to certain value
37.29%*
as per Organisation laid down criteria.

New suppliers can also get registered for the


items through online vendor enrolment process.
After evaluation, new suppliers that satisfy the
requirements as per guideline are enrolled for
limited tenders. It helps to utilise possible suppliers 2021-22 2022-23
that have not previously been used in the supply
chain after due diligence. *We have achieved the stated percentage of
procurement against a target of 25% of procurement of
goods & services from MSEs excluding items beyond
We provide purchase preference to local suppliers,
the scope of MSEs. The excluded items are Crude
MSEs, and startups in line with Government Oil, Petroleum Products, and logistics costs through
and company policies. We give purchase shipping, Railways & Pipelines, LNG/Natural Gas,
preference to MSEs as per the applicable Public API Line pipes, OEM spares & services, proprietary
items and services, Technology Licenses and Licensor
Procurement Policy. mandated items, Plant & Machinery and single item
value equal to or more than ` 50 Crore.

26 Hindustan Petroleum Corporation Limited


The Government of India has notified a Public Supplier Training
Procurement Policy for Micro and Small Enterprises
(MSEs) Order, 2012 and its amendments thereof. In To compete for bidding and contracting
line with said Policy, HPCL had set an annual goal of opportunities, MSEs are made aware of
sourcing a minimum procurement of 25% of its total
the latest Government policies through
requirements from MSEs and within it, 4% of total
requirement has been earmarked for procurement vendor development programmes to make
from MSEs owned by SC/ST entrepreneurs and them competitive with other companies.
another 3% from women entrepreneurs. For the Pre-bid meetings are also conducted
benefit of MSEs, the MSE procurement details are
which helps to bridge the gap between the
regularly uploaded on the Sambandh Portal of the
Ministry of MSME, besides displaying the Annual requirement of the organisation and the
Procurement Plan on the Corporation’s website. existing capacity of local vendors.
During 2022-23, the percentage of input material To engage vendors into discussion/their
(inputs to total inputs by value) directly sourced development, national vendor development
from MSMEs/small producers/suppliers is 38.97%. programmes (VDPs) are organised by MoMSME
HPCL has achieved this percentage of procurement and other industrial federations like CII, FICCI,
against a target of 25% of procurement of goods DICCI, etc. wherein HPCL participates along with
& services from MSEs excluding items beyond the other PSUs/Private Companies. Wherever domestic
scope of MSEs. The excluded items are Crude Oil, vendor is not available, the organisation approaches
Petroleum Products and logistics costs through DPIIT to provide the list of possible suppliers in India
shipping, Railways & Pipelines, LNG/Natural Gas, with the help of various chambers of commerce.
API Line pipes, OEM spares & services, proprietary
items and services, Technology Licenses and We organise workshops to promote and enhance
Licensor mandated items, Plant & Machinery and procurement from SC/ST MSEs and Women MSEs,
single item value equal to or more than ` 50 Crore. dedicated VDPs and workshops to increase their
participation in our tenders. Also, we took the
During the year, 3.07% of total procurement initiative to conduct Entrepreneur Development
(by value) came from vulnerable and Programmes in the past for SC/ST enterprises along
marginalised suppliers. with their hand holdings.

In order to strengthen the manufacturing sector, To promote the objectives of procurement from
we are aligning with Government policies related MSEs as laid down in Public Procurement Policy, 71
to public procurement. Such efforts aimed at Vendor Development Programmes/Buyer-Supplier
developing domestic vendors will also lead to meetings for MSEs were conducted during the
economic development as local suppliers would be financial year. During these meets, the Corporation’s
able to comfortably cover a widespread area for procurement processes were articulated through
providing items in demand. detailed presentations to MSE vendors with an intent
to increase awareness of the vendor registration
We are registered with the TReDS Digital platform, process, tendering process, availability of the TReDS
an institutional mechanism set up by the Reserve platform, procurement on the GeM platform, etc.
Bank of India (RBI), to facilitate the trade receivable Implementation of various Government directives/
financing of Micro Small and Medium Enterprises policies of providing relief to MSMEs and promoting
(MSMEs) from corporate buyers through multiple indigenisation of products and services was also
financiers. Integrating our ERP System with that explained during the programme.
of 3 of the service providers, namely; A.Treds Ltd.,
We regularly engage with its dealers, contractors
Mynd Solutions Pvt. Ltd. and Receivables Exchange
and suppliers to conduct business ethically, improve
of India Ltd., we have enabled the MSMEs to
transparency and ensure compliance with national,
auction their trade receivables at competitive rates
state and international laws and regulations. We
through online bidding by financiers. Numerous
collaborate with them for optimising operations and
MSME vendors have onboarded this platform and
collective growth.
benefitted from the bill discounting facility that

71
provides liquidity.

Vendor Development Programmes/Buyer-


Supplier meetings for MSEs were
conducted during the financial year.
Sustainability Report 2022-23 27
HPCL at a Glance

Awareness programmes conducted for value chain partners during the financial year include:

Total number of training and awareness % of value chain partners covered


Topics/principles covered under the training under the programmes
programmes held

SOP, Safety for LPG Deliverymen/ 100%


25,029 Showroom Staff

4,168 SOP, Safety for Retail Outlet Fore Court


Salesmen
51%

SOP, Safety, Fuel Efficient Driving for 100%


3,767 Transport Crew

2,396
SOP, Safety, Statutory Compliances for 90%
Contractors/Suppliers

Refresher Programme for Dealers / ~60%


859 Business Trainings for Distributors

Medical Camps/ Trainings/Health and 17.9%


187 Wellness/ Eligible Benefits Awareness to
Contract Workers

121
Vigilance Awareness for Value Chain 90%
Partners

Procurement Related Awareness Session 14.4%


71 for Value Chain Partners

28 Hindustan Petroleum Corporation Limited


Awards and Recognitions
Our commitment to excellence is validated by awards from diverse
forums, industry bodies, and government authorities. These accolades
in 2022-23 reflect our relentless pursuit of innovation, best practices,
and exemplary leadership. Here's a snapshot of some national and
international awards bestowed upon HPCL during this period. Details of
many other awards/recognitions under various categories are available
in our annual report.

Environment, Sustainability

⊲ Swachhata Pakhwada 2022 Award to HPCL by the Ministry of Petroleum & Natural Gas (MoP&NG).

Æ Hazarwadi LPG Bottling Plant wins SAKSHAM Æ Best Brand Award for Sustainable Excellence &
2022 Award for Best EEE Score. Award for Customer-Centric Excellence at the
ET Ascent Global Business Leader Awards (21st
Æ Zee National Achievers Awards from ZeeDigital to
edition).
HP Lubricants Sustainability Push.
Æ Company of the Year awards in two categories
Æ HP Lubricant won the Best Brand Award at ET
- EV Charging Installer- Public and EV Charging
Ascent National Awards for Excellence in CSR
Infrastructure - PPP at EV Charge Leadership
and Sustainability categories of Best Sustainable
Awards - 2023, Maharashtra.
Business Practices & Customer Service
and Loyalty. Æ Platinum Award” in “Grow Care India
Sustainability Award 2022” instituted by Grow
Æ HP Nagar East Housing Complex, Mumbai,
Care India in ‘Oil and Gas Refining and Marketing
certified with IGBC Platinum Ratings.
Sector’.

Sustainability Report 2022-23 29


HPCL at a Glance

HR, CSR, Skill Development

ÆEMnrgrEb H$mo df© 2021-22 ‘| CËH¥$ï> amO^mfm H$m¶m©Ýd¶Z Æ Bagged prestigious Award for Swachhata
Ho$ {bE noQ—>mo{b¶‘ Ed§ àmH¥${VH$ J¡g ‘§Ìmb¶ H$s amO^mfm erëS> Pakhwada Campaign (1st – 15th July, 2022)
instituted by Ministry of Petroleum and
(àW‘ nwañH$ma) go gå‘m{ZV {H$¶m J¶m h¡&
Natural Gas.
Æ Organisation with Proactive IR Practice award
Æ Bagged ‘Best CSR Integrated Business’ for
to Visakh Refinery at Southern India Chamber of
embedding CSR as part of Business Operations
Commerce and Industry IR Awards 2022.
by ‘ET Ascent National Award for Excellence’.
Æ NHRDN People First Ace Award, Winner in the
Æ Winner of Leadership Award 2022 for Project
category of Learning & Development and 2nd
Kashmir Super-30 Medical – Education Adding
Runner Up in the category of Employee Relations.
Value to the Local Community (Education, Health,
Æ Global HR Skill Development 2023 - Platinum Sports) at 11th India CSR Awards instituted by
Award by Energy & Environment Foundation. India CSR Network.

Æ Excellence in the categories of CSR Æ Winner of 9th CSR India Awards 2022 under
Commitment, Reskilling of Employees (Learning the category ‘Welfare of Divyangs’ instituted by
& Development) and Investment in Start-Ups Greentech Foundation.
amongst all Central PSUs from Governance Now.
Æ 1st Runners-up of CSR & Sustainability Award at
Æ Best Leadership Transformation Program of the 12th PSE Excellence Awards & Conclave instituted
Year and Impactful Learning Program of the Year by Indian Chamber of Commerce (ICC).
as winners in both categories at L&D Confex
Awards 2023.

⊲E
 MnrgrEb H$mo df© 2021-22 ‘| CËH¥$ï> amO^mfm H$m¶m©Ýd¶Z Ho$ {bE noQ—>mo{b¶‘ Ed§ àmH¥${VH$ J¡g ‘§Ìmb¶ H$s amO^mfm erëS> (àW‘
nwañH$ma) go gå‘m{ZV {H$¶m J¶m h¡&

30 Hindustan Petroleum Corporation Limited


Business, Communications Digital

Æ Awards at Express Logistics and Supply Chain Æ CII Digital Transformation (DX) Award 2022
Conclave & Leadership Awards in Supply Chain in most Innovative Best Practice in Digitize
Disruptor of the Year & Best Supply Chain Maximize: Digital All Along and Innovative
Team categories. Best Practice in AI/ML-based demand
forecasting solutions.
Æ Prestigious Awards at the CPSE Conclave on
Public Procurement Policy amongst Maharatna Æ PSU Awards 2022 in Digital Transformation
CPSEs during 2021-22 on Highest Procurement Category during Dun & Bradstreet PSU and
in terms of procurement value from SC-ST Government Summit 2022.
MSEs, Highest Procurement in terms of % of
Æ Data Centre Champion Award to HPCL at Data
total procurement from SC-ST MSEs & Highest
Centre Infrastructure Summit 2022.
Procurement in terms of procurement value from
Women Entrepreneurs. Æ Award for Excellence for Use of Emerging
Technologies in Analytics/Big Data, Artificial
Æ HP Gas was awarded Gold at the ET Brand Equity
Intelligence and Data Centre Storage amongst all
Shark Award for its Marketing Campaign on the
Central PSUs from Governance Now.
COVID-19 crisis.

Æ Best Performance Award & Long-Term


Innovation, R&D
Association Award to HP Lubricants by
M/s. Bosch India.
Æ HP Green R&D Centre bagged the prestigious
Æ Eleven PRCI Excellence Awards at the 16th Global Innovation Award instituted by IESA.
Communication Conclave to HPCL for House
Æ Golden Peacock Award 2022 to HP Gas for HP
Journal Print (Regional), Best Production of Book,
VITRAN App in the Innovative Product & Service
Digital News Letter under Gold Category, for
Award category.
Consumer Relations Campaign, Best Corporate
Event, Website of the Year, Corporate Business
Communication Campaign, Corporate Social Safety
Responsibility Campaign under Silver Category
and for Internal Communication Campaign, Æ Apex India Health & Safety Awards 2022 in
Annual Report under Bronze category and Petroleum Storage & Transport Sector to Mumbai
Consolation Award for House Journal - Print Pune Solapur Pipeline, Mazagaon Lube Plant,
(English). Kanpur Terminal in Platinum Category and to
Miraj IRD, Sewree II Terminal, Silvassa Lube
Æ CGD Company of the Year 2022 Award to
Terminal, Uran Chakan Shikhrapur Pipeline in
Aavantika Gas Ltd. at ET Energy World Annual
Gold Category.
Gas Awards 2022.
Æ Golden Peacock Award 2022 to Palghat LPG Plant
Æ Emerging Brand of the Year Award to
in Occupational Health and Safety category.
Happy Shop at Global Marketing Excellence
Award Ceremony Æ FAME National Award 2022 to Irumpanam
Terminal, Mangalore Hassan Mysuru Bangalore
Æ PRSI National Awards 2022 by Public Relations
LPG Pipeline, Mangalore LPG Import Facility
Society of India for CSR communication
for excellence in Occupational Health &
campaign, Internal Communications Campaign,
Safety Excellence.
Annual Report, House Journal (English), House
Journal (Hindi) and Sustainability Report. Æ Best Industry Award to HP Gas Bahadurgarh
LPG Plant under Occupational Health & Safety
Æ Best Aviation Fuel Provider award by ASSOCHAM
category for Longest Accident-free Period
at their 14th International Conference for
& Lowest Accident Frequency by DoIS&H,
Civil Aviation.
Haryana Government.
Æ CII Supply Chain and Logistics Excellence
Æ NSCI Safety Award 2022 to three HPCL locations
(SCALE) Awards 2022 for Exemplary
for their outstanding contributions in the
Performance in Improving of Ethanol Logistics in
Occupational Safety and Health (Manufacturing
the Country.
Sector) Excellence.

Sustainability Report 2022-23 31


Governing a Successful Organisation

Accountability Drives Performance


Governance At HPCL, we conduct our business transparently,
following the policies and internal and external
At HPCL, we believe that strong corporate regulations. Being a government company,
our operations are scrutinised by various
governance plays a key role in augmenting
external agencies and authorities that include
trust and securing the long-term the Comptroller and Auditor General of India
interests of our shareholders and other (CAG), the Central Vigilance Commission (CVC)
stakeholders. We continue to improve and Parliamentary committees. We are also a
signatory to the United Nations Global Compact
systems and processes that integrate
supporting principles on Human Rights, labour
sustainability priorities into overall business standards, environment, and anti-corruption. Our
conduct and ensure oversight and management accords these areas due importance to
accountability. implementing compliance.

Salient Governance Principles and Practices

Æ Well-defined policy frameworks for uniform Æ Complete adherence and compliance to the
understanding, effective implementation prevalent and associated rules, regulations,
and controls regulatory frameworks and legal requirements

Æ Clearly defined management performance Æ Accuracy and transparency in


roles, responsibilities and accountability business operations, performance and
financial transaction
Æ Well-exercised internal control systems,
processes and procedures, risk and Æ Timely disclosures of material information
strategy management and financial on operational and financial aspects to
reporting mechanism the stakeholders

Policy Framework

The National Guidelines for Responsible minimise environmental impacts, address social
Business Conduct principles emphasise concerns and contribute to a more inclusive and
the importance of maintaining ethical and responsible global economy.
sustainable practices by industry. By embracing
these principles - conducting and governing We have formulated the policies as per the
business with integrity and being ethical, relevant statutory laws, guidelines issued
transparent and accountable; practicing by the Government of India, Regulatory
sustainable development; ensuring the well- bodies and industry-best practices. We refer
being of employees, including value chain to National/ International Standards while
partners; respecting interests and being formulating these policies. Standards such
responsive towards stakeholders; promoting as ISO 9001/14001/27001/45001, BIS, OISD,
human rights; protecting and restoring GHG Protocol etc, as applicable, are adopted.
environment; maintaining transparency We review these policies regularly to keep
and responsible manner in the advocacy of them updated in light of emerging trends and
public policy; promoting inclusive growth & business paradigms. These Policies are approved
equitable development; and providing value by Board/Competent Authorities. We have
to consumers in a responsible manner - the translated the policies into procedures. These
oil and gas industry can demonstrate their policies extend to the value chain partners as
commitment to responsible business conduct, per applicability.

32 Hindustan Petroleum Corporation Limited


Our policies and guidelines cover the principles and the core elements of the National Guidelines on
Responsible Business Conduct (NGRBCs) viz.

Principle Policy/Guideline/Reference

P1 Code of Conduct; Whistle blower Policy;


Integrity Pact to enhance transparency
in business operations, Public Grievance
Redressal Mechanism; Empowerment &
Authority Manual; Procurement Manual
P9
P1 P2 HSE Policy; Sustainable Development Policy
P8 P3 Signatory to United Nations Global Compact
(UNGC); Whistle Blower Policy; Internal
Human Resource Policies
P2
P4 CSR Policy; Sustainable Development Policy
P7 NGRBC
Principles P5 Signatory to UNGC; CDA Rules; Internal
Human Resource Policies

P3 P6 HSE Policy; Sustainable Development Policy,


Climate change Policy Statement
P6
P7 Sustainable Development Policy
P4
P5 P8 CSR Policy

P9 Citizen Charter; Sustainable Development


Policy; Internal Quality Control Vision
Document, Data Privacy Policy

Web Link of the Policies

Policy Weblink

Code of Conduct  https://hindustanpetroleum.com/pages/code-of-conduct


Whistle blower Policy  https://hindustanpetroleum.com/images/Whistle_Blower_policy.pdf
HSE Policy  (Health) https://hindustanpetroleum.com/health-at-hpcl
(Safety) https://hindustanpetroleum.com/safety-at-hpcl
(Environment) https://hindustanpetroleum.com/environment-at-hpcl
Sustainable Development  https://hindustanpetroleum.com/pages/sustainability
Policy
UNGC  https://hindustanpetroleum.com/pages/un-global-compact
CDA Rules  Company Intranet
Human Resource Policies  These include Inter alia (Appointment, Compensation, work related reimbursements and
location-based allowances, transfer benefits, Leave Policies (EL, CL, LHP, SSL, Study leave,
Maternity, Adoption, Paternity, Surrogacy, Childcare, CDO, SCDO, Festival holidays, special
leaves), Employee benefits, Welfare Measures, Promotions, Idea Sharing, Performance
Appraisal, Separation and Post-Retirement Benefits). All HR Policies are on our Intranet.
Climate Change Policy  https://hindustanpetroleum.com/documents/pdf/HPCL_Climate_Change_Policy.pdf
CSR Policy  https://hindustanpetroleum.com/images/pdf/HPCL_CSR_Policy_wef%2020052021.pdf
Citizen’s Charter  https://hindustanpetroleum.com/documents/pdf/HPCL_Citizens_Charter.pdf
Privacy Policy  https://hindustanpetroleum.com/pages/WebPolicy

Sustainability Report 2022-23 33


Governing a Successful Organisation

Board of Directors
The Board of Directors (consisting of Whole-time Directors, Government
Nominee Directors and Independent Directors) is the highest governing
body in the organisation.

HPCL being a government company, our Directors The Chairman, Managing Director, and other
are appointed by the Government of India through Whole-time Directors generally get appointed for
the administrative ministry, i.e. the Ministry of five years from the date of assuming charge or till
Petroleum & Natural Gas, , after due assessments as the date of their superannuation or until further
per the laid down guidelines. A Public Enterprises orders from the Government of India, whichever
Selection Board, a high-powered body constituted is earlier. Independent Directors usually get
by the Government of India and appointed by appointed for three years. Government Nominee
MoP&NG, selects the Company’s Whole-time Directors continue the Board at the discretion of the
Directors who possess adequacy and the required Nominating Authority or till ceasing to be officials of
competency/skills/expertise in the business context such nominating authority.
and sector. These selections get due approval from
the Appointments Committee constituted by the The performance evaluation of the Directors is
Government of India from a combination of eminent undertaken by MoP&NG at the end of each financial
personalities with requisite expertise and experience year through the process of MoU on specified
in diverse fields. The Director profiles and their economic, environmental and social parameters.
experience can be accessed at: https://www. The MoU Ratings directly affect the performance-
hindustanpetroleum.com/board-of-directors related pay of the Directors.

Whole-time Directors

Shri Amit Garg Shri Rajneesh Narang Shri Pushp Kumar Joshi Shri S Bharathan Shri Suresh K Shetty
Director Marketing Director Finance Chairman & Managing Director Refineries Director Human
(DIN: 08515246) (DIN: 08188549) Director (DIN: 09561481) Resources
From 27/12/2022 (DIN: 05323634) From 01/10/2022 (DIN: 09760899)
From 01/05/2023

34 Hindustan Petroleum Corporation Limited


Government Nominee Directors

SMT. SUJATA SHARMA SHRI PANKAJ KUMAR SHRI SUNIL KUMAR


Joint Secretary (M&OR), MOP&NG ONGC Representative Joint Secretary (Refineries), MOP&NG
(DIN: 07775238) From 27/12/2022 (DIN: 09252235) From 22/06/2022 (DIN: 08467559) Up to 27/12/2022

Independent Directors

SMT. VIMLA PRADHAN SHRI BECHAN LAL SHRI VIVEKANANDA BISWAL


(DIN: 09398793) (DIN: 09397116) (DIN: 00977767)

SHRI RAMDARSHAN SINGH PAL DR. NAGARAJA BHALKI SHRI K S NARENDIRAN


(DIN: 09400298) (DIN: 09451587) (DIN: 10070865) From 15/03/2023

Independent Directors Whole-time Directors

SHRI G RAJENDRA PILLAI SHRI MUKESH KUMAR SURANA SHRI VINOD S SHENOY
(DIN: 08510332) Up to 14/07/2022 Chairman and Managing Director Director Refineries
(DIN: 07464675) Up to 30/04/2022 (DIN: 07632981) Up to 30/09/2022

Sustainability Report 2022-23 35


Governing a Successful Organisation

Diversity of Governance Body


Name of Director Gender Age

Shri Pushp Kumar Joshi Male Over 50 years


Shri Rajneesh Narang Male Over 50 years
Shri S Bharathan Male Over 50 years
Shri Amit Garg Male Over 50 years
Shri Suresh K Shetty Male Over 50 years
Shri Pankaj Kumar Male Over 50 years
Smt. Vimla Pradhan Female Over 50 years
Shri Bechan Lal Male Over 50 years
Shri Vivekanand Biswal Male Over 50 years
Shri Ramdarshan Singh Pal Male Over 50 years
Dr. Nagaraja Bhalki Male 30-50 years old
Smt. Sujata Sharma Female 30-50 years old
Shri K S Narendiran Male Over 50 years

Role of Board in overseeing the Management of Impacts


The Board, Board Committees, C&MD, Functional The Board has constituted a Corporate Social
Directors and Executive Directors are responsible Responsibility and Sustainability Development
for implementing and overseeing the principles as (CSR&SD) Committee that provides leadership
identified in the National Guidelines of Responsible and direction in matters of Sustainability and
Business Conduct issued by the Ministry of Corporate Social Responsibility. It also conducts
Corporate Affairs (MCA), Government of India. an annual review of progress and performance
across identified focus areas under its purview. This
The Board holds periodic meetings to review, committee is headed by an Independent Director.
evaluate and approve matters of policy, strategy,
risks, business opportunities and governance, The corporate HSE department under the guidance
etc. for the corporation aligned to the national of the Executive Director – HSE (Corporate)
priorities through strategic supervision across formally carries out the process of material topics
various aspects of business, including human identification, reporting on identified materiality
resources, refining, finance, accounting, marketing, topics and Sustainability Reporting based on a
strategy, projects, technology and operations, consultative process with the CFD (Committee of
among others. The Board is presented with Functional Directors), SBU (Strategic Business Unit)
statutory and material information to discharge its heads and concerned officials.
responsibilities efficiently.
The recent materiality matrix for HPCL is an
The outcomes of the Board meetings are outcome of a stakeholder engagement during which
implemented and executed by the respective the external strategy experts undertook Belief
functionaries in the business domains. In addition audits with top and senior management during
to new items of discussion based on the agenda, the development of the environment strategy to
specific progress reviews of actionable items understand their vision for the Company and the
from previous meetings are also undertaken perceived importance of the list of material topics.
and discussed. Key decisions of the Board
and its committees are communicated to the
stock exchanges. Please refer ‘Matters critical to value creation’ of this
Report for more details.

36 Hindustan Petroleum Corporation Limited


To create an atmosphere of synergy, team spirit & infusing collective responsibility as HPCL brand
and collaboration, our top management and ambassadors to conduct in a way that reflects our
senior officials undertake regular field visits, commitment to the organisation every day, every
including visits to locations and field offices. moment. The discussions focus on leadership
This approach leads to productive engagements development, succession planning and the key
with employees, senior officials and stakeholders focus areas of our various business streams, plans
from various SBUs and departments, reinforcing and expectations as per the constitution of the
corporate commitment to growth and excellence participating stakeholders.

Board Committees
The Committees constituted by the Board focus on specific areas and make informed decisions within the
delegated authority framework to make specific recommendations to the Board on matters in their purview.
The decisions and recommendations of the committee are placed before the Board for information or
approval, as per requirements.

There are six committees of the Board which were functional as on March 31, 2023, as follows:

Audit Nomination and Risk Management


Committee Remuneration Committee Committee

Corporate Social
Stakeholders’ Responsibility Investment Committee
Relationship Committee & Sustainability
Development Committee

The Board and its different committees consult


with the relevant internal stakeholders (Strategic
Business Unit Heads, Senior executives, and other
concerned officials) for developing, approving
Sustainability @
and updating strategies, risks and processes, Board Room
values, mission statements, policies and goals
of the Company. The Board and the concerned To reduce the use of paper in
committees conduct periodic reviews of progress organisations, an initiative named,
and performance on referred and related topics Digital Board Meeting solution was
under their purview for updates on the status,
implemented to digitalise the board
feedback, and follow-up action plans to provide
leadership and direction. meeting proceedings. The solution
is being leveraged for conducting
Members of the committee of Functional Directors
key management meetings and
engage with subject experts, regulatory experts,
trade associations and various industry bodies in various sub-committee meetings.
national and international forums and OMCs, among This solution helps in the efficient
others, in the area of Business, emerging trends, management of records, and
risks, strategy, technology, expansion, growth
effective monitoring of projects
and consolidations, among others, through direct
engagements, structured presentations and case and enhances collaboration.
studies and regular visits and interactions at the
field and administrative office levels.

Sustainability Report 2022-23 37


Governing a Successful Organisation

Remuneration of Directors

The Pay scales, pay-related benefits/ A component of total remuneration, i.e.,


performance-related pay of the Board-level
allowances and superannuation benefits
executives and senior executives, is based on
for Board-level Executives, among others, ratings as per the MoU of the organisation with
are governed by Pay revision guidelines Administrative Ministry, Strategic Business Unit
for CPSEs issued by Department of Public (SBU) ratings and their performance ratings. The
parameters of MoU, SBUs and Individual Rating
Enterprises Guidelines (DPE) vide its
consider economic, environmental and social
Office Memorandums issued from time to impacts. Aspects such as economic performance,
time. The Department of Public Enterprises environmental performance considerations such
is the nodal department for all the Central as energy consumption, water consumption,
rainwater harvesting, green belt enhancement,
Public Sector Enterprises (CPSEs) and
plastic recollection and social factors such as
formulates policy pertaining to CPSEs. stakeholder engagement, risk management, health
and safety initiatives, project safety measures, skill
It lays down policy guidelines on performance development and training as applicable to the job
improvement and evaluation, autonomy and role are considered for arriving at the performance
financial delegation and personnel management in rating parameters.
CPSEs. The DPE is independent of the organisation
(HPCL), its highest governance body and In 2022-23, the annual total compensation ratio of
senior executives. the highest-paid individual to the median annual
total compensation for all employees (excluding
The remuneration policies constructed as per DPE the highest-paid individual) is 3.04*. The ratio of the
guidelines are put in for Board resolution. These percentage increase in annual total compensation
are then put up to the administrative ministry for of the highest-paid individual to the median
Presidential directives. The remuneration payable to percentage increase of all other individuals,
officers below the Board level is also approved by excluding the highest-paid individual, is 1.03*.
the GoI.

The Independent Directors are paid sitting fees

3.04
for Board Meetings and Committee Meetings of
the Board attended by them. HPCL does not pay
commission on profits to any of the Directors of the
Company. The Government Nominee Directors are Annual total compensation ratio of the
not paid any remuneration/sitting fees. highest-paid individual to the median
annual total compensation for all employees
The Corporation has constituted a Nomination and (excluding the highest-paid individual)
Remuneration Committee as required under the
Companies Act, SEBI LODR and DPE Guidelines.
The terms of reference of the Nomination and
Remuneration Committee are as prescribed under
Section 178 of the Act and as provided under Part 1.03
D of Schedule II of Regulation 19 (4) of the SEBI Ratio of the percentage increase in annual
LODR, 2015, except to the extent of exemptions total compensation of the highest-paid
granted to Government Companies. It also approves individual to the median percentage increase
performance-related pay to the executives of the of all other individuals, excluding the highest-
Company as per the DPE Guidelines. paid individual

*The above are calculated considering the Basic Salary + Dearness Allowance applicable to employees. The salary of the highest-
paid individual and the rest of the organisation is taken for 2021-22 and 2022-23. The median is calculated for both and the ratio of
the percentage increase is accordingly calculated and reported.

38 Hindustan Petroleum Corporation Limited


Internal System and Control Mechanisms
Business Ethics, Transparency and Compliances
At HPCL, we conduct our business transparently, in the form of audits, inspections, system-based
following the policies and internal and external alerts, approvals and escalation matrices. Digital
regulations. Being a government company, our tools are leveraged to ensure compliance. We
operations are scrutinised by various external also have adequate Internal Financial Controls
agencies and authorities that include the for ensuring the orderly and efficient conduct of
Comptroller and Auditor General of India (CAG), our business including adherence to our policies;
the Central Vigilance Commission (CVC) and the safeguarding of its assets; the prevention
Parliamentary committees. We are also a signatory and detection of frauds and errors; the accuracy
to the United Nations Global Compact (UNGC) and completeness of the accounting records and
and voluntarily submit our Annual Communication the timely preparation of reliable information,
on Progress declaring support for the principles commensurate with our operation.
of Human Rights, Labour Standards, Environment
and Anti-corruption. Our management accords due We foster an environment where employees feel
importance to these areas to ensure compliance. safe and empowered to raise concerns regarding
non-compliance with laid rules, regulations and
We have systems and procedures in place for review policy directives.
of compliances to various statutory requirements

Delegation of Authority, Role and Responsibilities

The Members of the Board, Executive Directors, The manual has segments representing functions/
Chief General Managers and General Managers activities like Sales, International Trade, Supply,
constitute the Senior Management of the Operations, Distribution, Sourcing of RLNG/Gas/
Corporation. The head of the SBU/Department is Hydrogen-Refinery, Procurement and Marketing
accountable for activities related to the respective of Biogas, Finance, Capital Projects, Operations &
SBU/Department’s performance. Distribution, Finance, Capital Projects, Procurement,
Disposal & Mega Projects, Leases, Human
We have detailed manuals and guidelines to Resources, Information Systems, Public Relations
facilitate decentralised decision-making at multiple & Corporate Communications, Company Secretary
levels of hierarchy in the organisation. These Research & Development, Digital Initiatives. It
manuals form the basis of guiding the decisions and provides for a decision-making process through
administrative functionalities across our business various committees, as above, represented by
domains. Some of these are as follows: inter-functional groups, including Finance. This
approach ensures a transparent, well-considered,
Empowerment and Authority Manual (EAM)
and streamlined decision-making process adhering
We have a well-documented Empowerment and to the laid down systems and procedures, leaving no
Authority Manual (earlier known as Limits of room for arbitrariness.
Authority Manual).
The provisions in the EAM guide decisions about
The EAM serves as a reference guide for employees various levels of officers. The decisions related
at all levels in the organisation. It lays down the to key concerns requiring approval from the
authorities that can be exercised at various levels, Committee of Functional Directors (CFD) or
i.e. the Board, Committee of Functional Directors, the Board as per the LAM get put up for the
the Executive Committee, the Contracts Committee, consideration of the CFD or the Board.
the Bids Committee and the senior individual
positions for different activities of the Corporation.

Sustainability Report 2022-23 39


Governing a Successful Organisation

Procurement Manual
The Procurement Manual is a handbook developed Procurement Manual, which includes various anti-
to outline policies and procedures governing the corruption policies based on the broad principles
following functions: outlined in the GFR of the Government of India.

Æ Procurement of materials and supplies and award This manual lays down elaborate procedures to be
of construction/service contracts. followed while undertaking procurement and in the
finalisation of contracts. It lays down, inter-alia, the
Æ Disposal of obsolete, surplus, unserviceable, and
procurement authorities at various levels, norms,
slow-moving materials, equipment, and scrap.
and processes for procurement.
All the procurement policies and procedures
currently prevalent in the corporation, as well as The endeavour is always on building trust with
the guidelines issued by the Government from shareholders, employees, Customers and other
time to time, are incorporated in the manual. stakeholders based on the basic principles of
All procurement for supplies is governed by Corporate Governance, i.e. transparency, fairness,
the provisions enumerated in the Corporation's disclosure and accountability.

Risk and Opportunities


We operate in a dynamic environment which not only provides opportunities but also
exposes the business to various risks.

To proactively identify and manage key risks for Our ERM framework demonstrates management's
achieving our strategic objectives and to enable the acceptance and adoption of a set of self-regulated
Corporation to deal with these enhanced business processes and procedures to ensure that business is
challenges and risks, an effective and pragmatic conducted in a risk-conscious manner.
risk management process has been institutionalised
across the organisation. Keeping up with leading An important purpose of the ERM is to outline a
global best practices, technology remains at structured and comprehensive risk management
the forefront to support the Enterprise Risk system which establishes a common understanding,
Management processes with a focus on optimising language and methodology for identifying,
risk exposures and automating risk reporting across assessing, monitoring and reporting risks. It also
the organisation. provides management and the Board, assurance,
that key risks are being identified and managed
Our current Risk Management charter and proactively in a consistent and standardised
policy document is aligned with the regulatory manner. It provides necessary support to the
requirements in relation to Risk Management business to steer through the continuously evolving
specified under the relevant regulations of SEBI risk terrain through a dynamic risk management
(LODR) Regulations, 2015 (including SEBI LODR approach that embraces disruption and enhances
(Second Amendment) Regulations, 2021) and resiliency and trust. Risks and the effectiveness of
Companies Act, 2013. We updated the existing control measures are continuously monitored, the
Enterprise Risk Management (ERM) framework risk register is updated, and the progress of risk
under the Corporation’s Risk Management Charter treatment action plans is assessed periodically by
and Policy, which is embedded in the forefront our respective SBUs and Departments.
of business strategies and focuses on forging a
stronger, deeper and trust-based relationship with The updated ERM Policy covers all types of risks
the stakeholders; by adopting the best practices impacting the strategic objectives and performance
recommended by international standards such as of the organisation, including but not limited to -
COSO ERM 2017 and ISO 31000:2018 Framework. operational, regulatory, financial, sectoral, strategic,
and sustainability in particular ESG (Environmental,
Social, and Governance) related risks, information
and cyber security related risks and business
continuity plan.

40 Hindustan Petroleum Corporation Limited


Under the emerging Risks, the framework includes The Risk Management Committee meets periodically
the identification and management of new risks (at least twice in a year) to ensure that appropriate
or familiar risks that become apparent in new or methodology, systems and processes are in place to
unfamiliar conditions that the trends indicate to be review these risks as well as monitor the progress of
on the horizon. implementation of various mitigation steps.

Reputed professional external consultants have also The Board is updated regularly on the risk
been engaged to facilitate the transformation of assessment and mitigation procedures of the
existing ERM processes. We undertook workshops identified risk and a summary of the Board
across SBUs and updated the risk registers reportable risks is also placed before the Audit
considering changing trends and risk areas including Committee for information.
ESG risks with their probable severity, likelihood,
velocity and likely impact to categorise them into
critical, cautionary and acceptable risks.

Code of Conduct
We have a “Code of Conduct for Board Members The Code would be read in conjunction with the
and Senior Management Personnel of Hindustan Conduct, Discipline and Appeal for management
Petroleum Corporation Limited” in compliance employees. Part II – Section A of Discipline and
with the terms of Regulation 17 (5)(a) of the SEBI Appeal Rules of the CDA rules define ‘misconduct’
(Listing Obligations and Disclosure Requirements) which includes corruption and bribery while Section
Regulations, 2015, including the duties of B of Discipline and Appeal Rules of the CDA rules
Independent Directors as envisaged in Regulation lays down the different types of penalties for the
17 (5) (b) of the SEBI (Listing Obligations and misconducts. For non-management employees,
Disclosure Requirements) Regulations, 2015. the conduct is guided by standard procedures
The Code aims to further enhance ethical and as defined in the Standing Orders, which clearly
transparent processes in managing the affairs of identifies areas of misconducts in corruption
the Corporation. and bribery.

This Code has been made applicable to: All Board Members and senior management
personnel have provided the Annual Compliance
Æ All Whole-time Directors Certificate duly signed by them as on March
Æ All Non-Whole-time Directors including 31, 2023.
Independent Directors
During the financial year 2022-23, there were no
Æ Senior Management Personnel materially significant related party transactions
with Directors or their relatives having potential
The Code of Conduct stipulates that: The Board
conflict with the interest of the Company; there
Members and the Senior Management Personnel
were no complaints received in relation to issues
shall act within the authority conferred upon them,
of Conflict of Interest of the Directors/KMPs; there
keeping the best interests of the Company and
were nil Cases of Disciplinary action taken by any
shall not involve in taking any decision on a subject
law enforcement agency for the charges of bribery/
matter in which a conflict of interest arises or which
corruption against Directors/KMPs/employees/
in his opinion is likely to arise.
workers and no adverse orders have been passed
Our Code of Conduct policy is available at: https:// by the regulatory authorities related to anti-
hindustanpetroleum.com/pages/code-of-conduct competitive conduct.

Sustainability Report 2022-23 41


Governing a Successful Organisation

Vigilance Mechanism
Vigilance mechanism in HPCL follows the directives Apart from conducting preventive vigilance
issued by the Central Vigilance Commission (CVC), activities, the major work areas of Vigilance include
Department of Personnel & Training (DoPT) and investigating complaints received from various
Ministry of Petroleum & Natural Gas (MoP&NG) from sources, including citizens, stakeholders, the
time to time. Ministry of Petroleum and Natural Gas, the Central
Vigilance Commission, the Management and others.
The Vigilance Department is headed by the
Chief Vigilance Officer (CVO), who administers During 2022-23, various operational areas were
supervision and control of all the vigilance matters reviewed for systemic improvements throughout the
in the Corporation. The Vigilance Department year. In addition to investigating complaints, surprise
deals mainly with matters related to corruption and inspections of Depots, Terminals, LPG Plants,
matters having a Vigilance Angle. The complaints Regional Offices, LPG Distributors, Retail Outlets,
get handled as per the compliant handling policy Tank Trucks, Major Works (CTE Pattern), Tender
stipulated in the Vigilance Manual 2021 of the Review and other facilities were conducted.
Central Vigilance Commission (Hosted at HPCL
Corporate website under URL: https://www. All locations of HPCL under CVO, HPCL jurisdiction,
hindustanpetroleum.com/pages/vigilance) have been assessed for corruption-related risks.
The Corporation’s anti-corruption policies and
Complaints containing factual details and verifiable procedures have been communicated to all the
facts are taken up for investigation. As per governance body members, and employees.
guidelines in vogue, anonymous and pseudonymous
complaints are generally not entertained. The During the year, there were 19 vigilance cases that
Vigilance Department also carries out focused were recommended to the disciplinary authority;
preventive vigilance activities, which help ensure while there was one public legal case regarding
transparent business decisions by respective corruption brought against the organisation during
Departments. The CVC, the country's apex integrity the reporting period. There were eight cases of
institution and the MoP&NG's vigilance wing review violations involving business partners recommended
the Vigilance activities regularly. for action to the Competent Authority.

All procurement for supplies is governed by the Preventing Corruption


provisions enumerated in our Procurement Manual, CVO, HPCL is part of Vigilance Study Circle, a group
which includes various anti-corruption policies of CVOs of CPSE of Mumbai where knowledge
based on the broad principles outlined in the GFR of gets shared regarding various corruption risks and
the Government of India. Anti-corruption clauses are mitigation measures. The vigilance department
included in tenders and agreements that HPCL has publishes a Quarterly Newsletter, "Sajag", which
with its business partners. Purchase Orders of value contains articles, dos and don'ts and case studies
` 1 Crore and above placed for contracts for goods to sensitise employees about corruption and
and services include an Integrity Pact in line with the policy adherence.
directions of CVC on the subject.

⊲ Spreading awareness on vigilance, corruption eradication, usage of technology for integrity, business
ethics through 'Jagaran’, HPCL's in-house Vigilance magazine
42 Hindustan Petroleum Corporation Limited
⊲ Hon'ble Lokpal of India, Hon'ble Member Lokpal, CVC, Addl. Director - CBI and Senior Officials of CVC.
HPCL and BPCL organised Regional Conference of CVOs of Western India Region

Our Vigilance department, during the investigation, During the week, the Vigilance Department
identifies the avenues where systemic controls identified and nominated employees for the
can be implemented to enhance transparency and Preventive Vigilance Award of the Central Vigilance
accountability in business processes and suggest Commission. CVC has recognised the contribution
systemic improvement to Management. During of nine officers for their preventive Vigilance action.
2022-23, the Vigilance Department suggested 28 The CMD and CVO felicitated these nine officers
systemic improvements to Management. during VAW 2022.

Every year, Vigilance Awareness Week (VAW) is


observed at all our locations. During 2022-23, the
VAW was observed under the central theme of
"Corruption Free India for a Developed Nation".
Various training programmes and awareness
activities, viz. focused group presentations,
Quizzes, Drawing/Painting Competitions, Skits/
street plays, Workshops, Technical talks, Grievance
redressal camps/Awareness Gram Sabhas, Rallies/
Walkathons, School/College Programmes were
undertaken to spread awareness among citizens/
stakeholders and employees. Besides, VAW also
witnessed various other awareness activities, such as
the display of banners/posters at all retail outlets/
LPG distributorships/Offices/Schools, Colleges and
other areas. Awareness was spread using audio
⊲ Making the youth aware of the importance
messages, IVRS messages, pamphlet distribution,
of Preventive Vigilance
grievance redressal camps, and social media.

Activity Locations No. of Participants

Integrity e-pledge Kiosk 2,000 1,00,211


Awareness Programmes for stakeholders 465 19,521
School and College Programmes 241 31,671
Programs at Village(s) and Rural Areas 78 5,352
Technical talks through Internal/External Experts 36 5,422
Transporter/ Vendor/Other Meets 121 2,796

Sustainability Report 2022-23 43


Governing a Successful Organisation

Grievance Redressal
We strive for excellence in delivering services, Our Public Grievance Redressal system has
customer delight and sustainable business designated officers during specified times at
conduct, thereby targeting minimal grievances our major locations to facilitate the redressal
to the public. We believe in creating shared value of grievances of the public. The details of the
through effective and transparent communication Grievance Redressal Officer are available on our
with our stakeholders. Proactive measures are corporate website.
in place to seek advice, understand and address
the suggestions and concerns of our extensive We also promote the use of the Centralised
network of people, organisations and communities. Public Grievances Redress and Monitoring System
Our SBUs and departments maintain structured (CPGRAMS), a web-enabled grievance redressal
mechanisms to stay connected with stakeholders. system of the Department of Administrative Reforms
This approach helps us identify key material issues & Public Grievances (DARPG) through a link on
by prioritising the concerns of the internal and our corporate website. It is a web-based One India
external stakeholders. One Portal that aims to provide citizens pan-India
with a platform to redress their Grievances. It is a
We conduct discussions at various levels to evaluate single window application for various Ministries/
stakeholder concerns and continuously review to Departments/Organisations of the Government of
incorporate their inputs into our systems to enhance India to receive grievances from various channels
the stakeholder engagement process. and process them for redressal with stipulated
timelines. Individuals can access this application at:
For seeking advice, raising concerns by various https://pgportal.gov.in/
stakeholders and seeking feedback on various
matters of business, sustainability, social Root cause analysis of grievances and necessary
engagement, ethics, transparency, vigilance updating of our service standards help eliminate the
and ideation, we have internal and external recurrence of such cases.
communication channels as follows:
We also have a structured Grievance Redressal
Æ Regular interactions – one-to-one, policy to resolve the grievances of employees
segmental meetings including grievances pertaining to human rights. The
procedure starts with a complaint by the aggrieved
Æ Annual General Meeting
employee in an e-enabled platform through the
Æ Press releases HP Portal. The Employee Relations Committee
looks into grievances and discusses the same with
Æ Training workshops Group Discussions
aggrieved employee. The aggrieved employee, if
Æ Feedbacks & Surveys not satisfied with the decision of the committee may
appeal within 10 days.
Æ Grievance Redressal mechanism – Management
Employees Relations Committee (MERC), ICS We also ensure compliance with various provisions
E-care, HR Direct, Reflexion under The Sexual Harassment of Women at
Æ E-platforms, online platforms Workplace (Prevention, Prohibition and Redressal)
Act, 2013. To inculcate appropriate workplace
Æ Stakeholders Relationship Committee to behaviour and promote gender sensitisation, we
addresses security holders' grievances have mandated all our executive employees to
We have a structured grievance redressal undergo awareness sessions through online courses
mechanism to address all stakeholders’ grievances. and workshops conducted on the subject.
We address citizens' grievances meaningfully
In respect of the Disclosure in compliance with
through effective coordination and qualitative
relevant provisions of The Sexual Harassment of
redressal. Our grievance mechanism enables
Women at Workplace (Prevention, Prohibition and
customers to reach out through the corporate
Redressal) Act, 2013, there were three cases of filed
website, customer care numbers and customer apps
complaints which were disposed of. The number of
or by directly registering grievances/suggestions at
complaints pending as on the end of 2022-23 is nil.
our customer touch points or through the customer
complaints management systems embedded in
our SBUs to handle specific queries, feedback,
or complaints.

44 Hindustan Petroleum Corporation Limited


Internal Complaint Committees (ICC) of the Guidelines pertaining to grievance redressal are
Corporation have been reconstituted and detailed updated from time to time to address the grievances
guidelines on procedures relating to the functioning of employees. No changes were required to be made
of the ICC have been circulated. Guidelines are also during 2022-23.
framed regarding the procedure to be adopted
while conducting an inquiry by Internal Complaint
Committees (ICC) for handling any complaints.

Stakeholder Grievances/Complaints during 2022-23:

Stakeholder
Number of Number of complaints
group from whom Grievance Redressal
complaints filed pending resolution at Remarks
complaint is Mechanism and Link
during the year close of the year
received
Centralised Public 3,778 43 Complaints received on
Grievance Redress and Centralised Public Grievance
Monitoring System Redress Portal.
Average Disposed time: 10
Customers/
https://pgportal.gov.in/ days. Pending complaints
Citizens/
less than
Communities
0-15 days.
rnt.helpdesk@linkintime. 70 1 Complaints received from
co.in SEBI/NSE/BSE/RTI/Public
Grievances.
Investors and
Mechanism in place
Shareholders
to address requests/
complaints from
shareholders through
Registrar & Transfer Agent.
(Shareholder Compliances
are dealt with as required
under the Statutes)
HPCL’s Internal Employee 1,158 0 1. Performance rating-
Portal; Transparency Portal related complaints raised
on HPCL website by employees
Employees and
https:// 2. Complaints raised by
workers
hindustanpetroleum.com/ employees with HPCL
pages/transparency-portal vigilance department and
processed subsequently
as per guidelines
Centralised Public 187,937 247 Customer Complaints
Grievance Redress and
Monitoring System;
Transparency Portal on
Customers
HPCL website

https://www.
hindustanpetroleum.com/
pages/transparency-portal
Transparency Portal on 40 3 Integrity Pact-related
HPCL website references received from
Vendors
https://www.
Value Chain
hindustanpetroleum.com/ Tender-related grievances,
Partners
pages/transparency-portal Vigilance-related complaints
from vendors/dealers and
processed subsequently as
per guidelines
https://www. 559 27 Vigilance-related complaints
hindustanpetroleum.com/ raised by LOI holders,
pages/transparency-portal prospective business
partners and general public
Others
and processed subsequently
as per guidelines

Sustainability Report 2022-23 45


Governing a Successful Organisation

Right to Information Integrity Pact


The dictum "knowledge is power" applies to We imbibe the spirit of transparency, integrity and
the modern world, and information is the most accountability in our business. We have integrated
important means to acquire knowledge. The the virtues into the system as a prerequisite for
information in the possession of the Public achieving its Vision of becoming a major integrated
Authorities, by itself, does not give any added energy company. Our business relationships with its
value to the public. This information belongs to numerous domestic and international contractors
the public and gets held for public benefit. UN and vendors of goods and services are steered
General Assembly realised this and resolved that constantly towards a well-thought-of direction with
the Freedom of Information is a fundamental transparency and ethical standards as guiding lights
human rights touchstone for all freedoms the UN in the transaction process.
consecrates. The Commonwealth Human Rights
Initiative propounds that the right to information We have been among the first Public sector units
underpins all other human rights. to sign an MOU with Transparency International
India (TII) in July 2007 to implement the integrity
In this direction, The Right to Information Act 2005 Pact in procurement processes and contracts. The
(RTI) empowers the people of India with a free flow Integrity Pact has come into effect from September
of information from the Government. We comply 1, 2007, and is applicable for contracts of ` 1 Crore
with the Right to Information Act, 2005 (RTI), which and above. The Integrity Pact had become a part of
went into effect on October 12, 2005. tender documents to be signed by the Company and
by the vendor(s)/bidder(s).
We are also affiliated with the DoPT (Department
of Personnel & Training), the Government of The Integrity Pact and the appointment of
India's Online RTI portal. All applications/appeals Independent External Monitors (IEM) have been
received through the portal, including physical conceptualised to usher in greater transparency in
applications, get handled there. Mandatory the purchase process. Under the above mechanism,
reports, such as quarterly and annual reports, are we appoint IEM(s) in consultation with the TII and
submitted regularly within the timeframes specified the Central Vigilance Commission (CVC). The
on the Central Information Commission's website, implementation procedure is full of cooperation and
www.cic.gov.in. All relevant details and suo motu monitoring of standards.
disclosures under Section 4(1)(b) of the Act, have
been hosted on the corporate website https:// The references received from the Vendors are
hindustanpetroleum.com/ for greater transparency placed before the Independent External Monitors
and public understanding. (IEM) for their review and recommendation of
their decision to the Management for compliance.
We have designated a Nodal Officer at our Meetings of the IEMs are also held regularly to
Headquarters Office to coordinate and oversee the brief on our Purchase Process and review of orders
implementation. The RTI applications get addressed covered under the Integrity Pact. Apart from
within 30 days through the Online RTI portal www. ensuring a higher level of transparency, the process
rtionline.gov.in. is also beneficial for resolving disputes through
the IEM.
A team of Central Public Information Officers (CPIO)
and First Appellate Authorities (FAA) spread across Salient features of the integrity pact are available on
the country, covering various functions at the Head our Corporate Website.
Offices, Zones, Refineries and major SBUs like
Retail, LPG, Direct Sales, Lubes, Zones, Head Office,
ensure the smooth handling of RTI applications.
Whistle blower Policy
We believe in conducting our business fairly and
Detailed information is available on the website transparently by adopting the highest standards
www.hindustanpetroleum.com. of professionalism, honesty, integrity and ethical
behaviour. We are therefore committed to
developing a culture where it is safe for employees
- officers and workers to raise concerns about
instances if any, where such rules, regulations and
policy are not followed in furtherance of business.

46 Hindustan Petroleum Corporation Limited


Clause 49 of the Listing Agreement between listed Our whistle blower policy is approved by the Board
companies and the Stock Exchanges, inter-alia, and the same is available to stakeholders on our
provides as a non-mandatory requirement for all website. This policy enables employees to report
listed companies to establish a mechanism called to the management concerns about unethical
“whistle blower policy” for employees to report behaviour, actual or suspected fraud or violation of
to the management concerns about unethical the Company’s Code of Conduct or Ethics Policy.
behaviour, actual or suspected fraud or violation This mechanism also provides adequate safeguards
of the Company’s code of conduct or ethics policy. against the victimisation of employees who avail
This mechanism is also required to provide adequate of the mechanism and for direct access to the
safeguards against the victimisation of employees Chairman of the Audit Committee. It also warrants
who avail of the mechanism and for direct access to disciplinary action against misuse of the policy.
the Chairman of the Audit Committee. The policy does not absolve employees - officers/
workers from their duty of confidentiality in the
course of their work. It is also not a route for taking
up personal grievances.

Memberships, Affiliations, Participative


Collaboration, Advocacy
We engage responsibly with government bodies and (CBC), Government of India with regards to the
regulators in public policy discussions to share our exercise on strengthening the succession planning
views and the perspectives of our clients, employees and leadership development processes across
and communities on issues relevant to our business. Maharatna and Navratna CPSEs.

By regularly participating in the nominated We were actively involved with Karmayogi Bharat for
consultative committee meetings for setting up conducting an exercise/development of Framework
policy frameworks and providing opinions to the of Roles, Activities and Competencies (FRAC) for
government, its departments and constituted bodies various Government agencies/companies & their
like the Ministry of Petroleum & Natural Gas and training platform. We have also participated in the
other bodies such as the Oil India Safety Directorate process of documenting excellent efforts in public
(OISD), Petroleum and Natural Gas Regulatory administration for the Gyaan Kosh through constant
Board (PNGRB), Center for High Technology (CHT), engagement with the CBC.
Bureau of Indian Standards (BIS) etc. towards the
advancement of public good and nation building. Some of our Institutional Memberships are with:

The topics covered during these meetings range Æ All India Association of Industries (AIAI)
from the formulation of standards, policies, Æ Confederation of Indian Industries, Delhi (PSE
frameworks, guidelines, and topics on issues of Fund) (CII)
governance, climate change, environment, social
aspects, community developments, economic Æ Council For Fair Business Practices
aspects, strategic directions, technology, etc. Æ Federation of Indian Chamber Of Commerce &
among others. Industries (FICCI)

During 2022-23, we actively engaged and Æ Federation of Indian Petroleum Industry (FIPI)
participated with “The Energy Transition Advisory
Æ IMC Chamber of Commerce & Industries
Committee ("Committee") of the Ministry of
Petroleum & Natural Gas in the formulation and Æ Indo German Chamber of Commerce
publishing of the report titled "The Green Shift"
Æ Standing Conference of Public Enterprises
("Report”) in keeping with India’s endeavour to
(SCOPE)
reach Net Zero emissions by the year 2070 and
making India a key player in the global fight against Æ The Associated Chambers of Commerce And
climate change. During the year, we also actively Industry Of India (ASSOCHAM)
engaged with the Capacity Building Commission
Æ United Nations Global Compact (UNGC)

Sustainability Report 2022-23 47


Sustainability at HPCL

Key Trends Transforming


the Industry
Operating Context
In today’s evolving energy landscape, decarbonisation, renewables, innovative
technologies, and ESG concerns are driving a global shift towards lower-carbon energy
alternatives. Geopolitical uncertainty further impacts the market dynamics, affecting
energy security and affordability. Amid this unprecedented volatility, it’s imperative
that we, as part of the oil and gas (O&G) sector, align with the Paris Agreement for
climate action. We understand that success hinges on our capacity to evolve in tandem
with industry.

Global Trends

World Economic Outlook India's Economic Outlook


The global economy's forecasted growth presents India's economy is projected to grow at a rate of 6%
an opportunity that influences our operations and to 6.5% in 2023-24. Key drivers include agricultural
market dynamics. production, post-pandemic recovery in contact-
intensive services, and improved financial health in
Projected growth by both the private and public sectors increasing credit
2.8% in 2023, supply and the government’s capex push.

rising to India is projected to emerge as a


3.0% in 2024 $26 trillion economy by 2047
Source: IMF Source: EY

Energy Demand Projections Climate Change Imperatives


India's transition into the world's most populous Climate change is a paramount challenge with global
country brings forth a surge in energy demand. repercussions. The Paris Agreement's objective to
Significant investments will be required across limit temperature rise to 2°C (or even 1.5°) by 2100
energy sources, including oil, which currently is a pivotal focus, with the global oil industry playing
meets one-third of the country’s energy demands, a catalytic role in achieving these goals.
emphasising the need for a sustainable and
diversified energy mix aligned with energy security
and climate change goals. Evolving Energy Industry Dynamics
The energy industry is undergoing a transformative
India’s oil demand is projected to rise from
shift. Key global trends encompass decarbonisation,
4.7 mn barrels per day (2021) to an increased share of renewables, the role of natural

6.7 mn barrels per day by 2030 gas as a transition fuel, and the rapid emergence
of innovative technologies such as Electric Vehicles
Source: IEA
(EVs), Green Hydrogen (H₂), and e-fuels.

48 Hindustan Petroleum Corporation Limited


Our Response

As the way forward, these factors necessitate that To align with changing stakeholder expectations
we embrace evolving consumption trends marked and address Environmental, Social, and Governance
by enhanced environmental and safety concerns. (ESG) concerns, energy markets must incorporate
This shift calls for increased green electrification, climate change considerations into organisational
technological adaptation, digitalisation, and policies for enhanced environmental stewardship
customer-centric approaches. and redressal of ESG concerns.

⊲ HPCL's shares its vision and journey on SDGs and climate action with industry

Navigating the Future through our T25 Strategy


At HPCL, we are in the midst of executing our five-year T25 strategy, stretching until
2025-26. This comprehensive plan is designed to seize opportunities in a dynamic energy
landscape, bolster our market presence, and diversify into new business realms, thus
mitigating risks in our existing portfolio.

Creating Sustainable Value Charting a Greener Path


Our T25 strategy is laser-focused on creating We are dedicated to environmental
value while upholding ESG principles. stewardship. We have devised a validated
We are committed to strengthening our roadmap, developed with the guidance
core businesses, tapping into new growth of world-renowned consultants, aimed at
engines such as petrochemicals and achieving Net Zero emissions in Scope 1 and
natural gas, and capitalising on green and 2 by 2040. Our emphasis on transitioning
emerging opportunities through innovation into a multi-energy green corporation aligns
and technology. us with the global shift toward sustainable
energy solutions.

Sustainability Report 2022-23 49


Sustainability at HPCL

Managing our Relationships


Efficiently
Stakeholder Engagement
Stakeholder dialogue plays a critical role in our innovation investments enabling
us to create opportunities to design services and solutions with high growth
potential. Indeed, our ongoing discussions with our stakeholders are essential for
our business operations and our corporate responsibility process which includes
our yearly materiality assessment process.

We have identified our stakeholders as those


persons, groups or organisations directly impacted Stakeholder Identification
by our activities, as well as those persons,
groups or organisations who can reasonably Our key stakeholders are identified based on their
be foreseen to impact our activities. A planned levels of association with our business and their
system of engagement exists to ensure the timely impacts on our business. For our business, we have
communication of accurate and relevant information established the following stakeholder categories:
to and interaction with each stakeholder group in a
consistent manner. Internal Stakeholder

Engagement Approach Employees


Æ Management
We have adopted a structured approach of
effective discussion at various levels to evaluate the Æ Non-management
concerns raised by our stakeholders. In line with
this, we sensitise our stakeholders on sustainability External Stakeholder
issues and garner feedback through stakeholder
engagement workshops/meetings/interactions. Æ Customers Æ Contract Workers/
We consistently improve our stakeholder Security Personnel
Æ Dealers
engagement process through continuous review and Distributors Æ Competitors
and incorporating the inputs received from
our stakeholders. Æ Suppliers/ Æ Investors
Contractors
Æ Local Community
Æ Transporters
Stakeholder Identification Æ Regulatory
Æ Forecourt Staff at Departments
Retail Outlet
Æ Local
Stakeholder Prioritisation Æ LPG Delivery Administration
Person/Staff
Æ Shareholders

Stakeholder Engagement

Stakeholder Prioritisation
Stakeholder Expectation
Management Stakeholder prioritisation is the preliminary step
when determining the manner and frequency of
stakeholder engagement. This may range from one-
on-one interaction at a different frequency to annual
group-level meetings, strengthening the strategic
partnership. We analyse the nature and depth of the
impact these stakeholders may have on our business
and the extent to which our business decisions may
affect them to develop an effective strategy.

50 Hindustan Petroleum Corporation Limited


Stakeholder Engagement

Stakeholder engagement is a method for Our comprehensive materiality analysis consists


understanding stakeholders' realistic expectations, of customised questionnaires for our targeted
interests, and information needs. Each stakeholder stakeholder groups. During our stakeholder
may have varying understanding, opinions, and engagement workshops and materiality assessment
appreciation for a specific subject in the context exercises, we discussed topics such as sustainable
of our business. As a result, we have built and development, environmental challenges, current
refined our stakeholder engagement approach over trends, best practices, regulatory landscapes, and
years of organising engagement workshops across future scenarios.
the country.

⊲ Synergising ideas through stakeholder engagement

Stakeholder Expectation Management

List of stakeholder groups identified as key for our entity and the frequency of engagement with each
stakeholder group:

Purpose and scope of engagement including key


Channels of Communication Frequency of Engagement
topics and concerns raised during such engagement

Customers

SMS, website, Periodic campaigns Æ Product quality and service standards


advertisements, face-to- and surveys Æ Awareness on safety and
face interactions environment aspects
Æ Resolving complaints

Sustainability Report 2022-23 51


Sustainability at HPCL

Purpose and scope of engagement including key


Channels of Communication Frequency of Engagement
topics and concerns raised during such engagement

Investors and Shareholders

E-mail, newspaper, website, Annually, Periodic Æ Financial performance


press releases Æ Good corporate ethics and compliance
Others - Annual Report,
AGM, Analyst meet, Æ ESG performance
Sustainability Report,
Response to ESG ratings

Regulators

E-mail, face-to- Regular interactions Æ Compliance


face meetings Æ Disaster management

Employees (Management and non-management)

SMS, Website, Notice Board Annually, Half- Æ Focus on health and safety
yearly, Quarterly, Æ Aspirations for career progression and
Regular interactions higher education
Æ Grievance redressal
Æ Ecosystem-based and need-
based trainings
Æ Work-life balance
Æ Rewards and recognition

LPG Distributors

SMS, E-mail, Website Regular interactions Æ Product quality and delivery


Æ Safety
Æ Competition from peers

Retail Dealers

SMS, E-mail, Website Regular interactions Æ Upgradation of outlet and


dispensing units
Æ Improvement in vendor services

Delivery men

Regular training Regular interactions Æ Customer retention


sessions, Interactions Æ Training needs
Æ Health and Safety

52 Hindustan Petroleum Corporation Limited


Purpose and scope of engagement including key
Channels of Communication Frequency of Engagement
topics and concerns raised during such engagement

Suppliers and Vendors

E-mail, Supplier portal, face- Regular and as per Æ Health and Safety
to-face interactions business requirements Æ Higher running and maintenance costs
Æ Complaint redressal mechanism
Æ Improved RTKM transportation rates
Æ Increased transparency
Æ On-time payments
Æ Payment process

MSE, SC/ST Vendors

E-mail, Supplier portal, face Regular and as per Æ Health and Safety
to face interactions business requirements Æ Complaint redressal mechanism
Æ Increased transparency
Æ On-time payments
Æ Payment process
Æ Preferred vendor status

Contract Workers

Training sessions, Regular and as per Æ Health and Safety


regular interactions business requirements Æ Regular payment
Æ Training needs

Local Communities

Multiple modes On regular basis Æ Empowerment, upliftment and overall


development of communities
Æ Provision of sanitation, educational and
health infrastructure in rural areas
Æ Collaboration during special cleanliness
awareness campaigns

Corporate Communication
Through the corporate communication department we ensure that our
messaging is clear, consistent and aligned with our business goals and
objectives. By leveraging both internal and external communication tools, we
build trust, enhance our reputation and create a positive engagement with
society while achieving business goals.

During 2022-23, mega events such as Energy Technology Meet, India Energy Week, multitudes
of events under Azadi Ka Amrit Mahotsav, Har Ghar Tiranga, World Biofuel Day, Saksham 2022,
Iconic Week of DPE, etc. were organised and hosted/co-hosted by HPCL for increased visibility,
branding, awareness and engagement amongst our employees and stakeholders.

Sustainability Report 2022-23 53


Sustainability at HPCL

Matters Critical to Value Creation


Materiality
At HPCL, we understand and resolve material issues which are relevant to our business
and that need to be addressed by stakeholders to achieve long-term success as a
responsible and sustainable business.
Material topics represent an organisation’s most Our materiality matrix formulated earlier using the
significant impacts on the economy, environment, and survey questionnaire to sample respondents was
people, including impacts on their human rights across evaluated by external expert consultants in the context
the organisation’s activities and business relationships. of national and international trends and contemporary
An issue is considered to be material if it has the materiality topics of importance in various ESG rating
potential to considerably impact our commercial frameworks. The external experts also undertook Belief
viability, social relevance and quality of relationships audits with top and senior management to understand
with our stakeholders. the approach and perceived importance of the list of
topics. Viewpoints of the investment community for
Our material issues are informed by the economic, defining material topics were also included by studying
social and environmental context in which we operate. reports of prominent investment bodies. Since the
Oil & Gas Refining and Marketing and Oil & Gas Storage country's various regulations govern us, various
& Transportation companies are covered under the requirements under the applicable regulations were
GRI-11-Oil & Gas Sector Standard. Accordingly, the also studied and included in the finalising of the list of
GRI-11-Oil & Gas Sector applies to us and has been topics material for us.
used to report the applicable material topics.
In order to provide a concise and comprehensive
The latest materiality topics for us are an outcome of narrative to the stakeholders, interconnected
a consultative process of engagement with relevant materiality topics have been clubbed together and
stakeholders and experts. We have recently formulated narratives are disclosed that will address the relevant
our environment strategy to achieve Net Zero Scope 1 issues holistically.
and Scope 2 emissions by 2040 by engaging the expert
services of a world-renowned consultant who have
helped in redefining the materiality matrix for HPCL.

Materiality Matrix
GHG
emissions

Occupational
health & safety
Importance to Stakeholders

Business ethics,
Product safety transparency
& quality Safety and & regulatory
security of compliance
Customer critical assets
satisfaction

Water & wastewater


management
Manpower
Air quality management

R&D Energy
Biodiversity
efficiency

Diversity & inclusion Supplier


environmental
assessment
Human rights
Transport safety

HPCL's Business Priorities

Critical High importance Moderate importance


54 Hindustan Petroleum Corporation Limited
List of Material Topics
ESG Materiality Topic GRI-
Pillar HPCL Materiality Topic as per GRI-3, GRI-11 Oil & Materiality Link Between Materiality topic and SDG
Gas Sector Topic

GHG Emissions GHG Emissions 11.1

Water and Wastewater


Water and Effluents 11.6
Management
Product Safety and Not a material topic as
Quality per GRI-11
Climate adaptation,
Energy Efficiency 11.2
resilience and transition

Environment
Supplier Environmental Not a material topic as
Assessment per GRI-11

Air Quality Air Emissions 11.3

Biodiversity Biodiversity 11.4

Not a material topic as


Research & Development
per GRI-11

Waste 11.5

Occupational Health & Occupational Health &


11.9
Safety Safety

Manpower Management Employment Practices 11.10

Not a material topic as


Customer Satisfaction
per GRI-11
Non-discrimination and
11.11
equal opportunity
Forced labour and
11.12
modern slavery
Human Rights Freedom of Association
11.13
Social and collective Bargaining
Rights of indigenous
11.17
peoples
Conflict and Security 11.18

Diversity & Inclusion Local Communities 11.15

Not a material topic as


Transport Safety
per GRI-11

Closure & Rehabilitation 11.7

Land and Resource Rights 11.16

Anti-competitive
11.19
Business Ethics, Behaviour
Transparency & Anti-corruption 11.20
Regulatory Compliance Payments to governments 11.21
Public Policy 11.22
Governance
Safety and security of Asset integrity and critical
11.8
critical assets incident management

Economic Impacts 11.14

Not a Material Topic as per the HPCL materiality matrix

Sustainability Report 2022-23 55


Sustainability at HPCL

Our Approach to Material Issues


Material issue
Rationale for identifying the
E – Environmental Management Approach
issue
S – Social
GHG Emissions (E) Æ Growing Regulatory/ Æ Measurement, monitoring, feedback,
Energy Efficiency (E) Stakeholder emphasis on corrective action
Air Quality (E) climate change concerns Æ Inclusion of climate-related risks in enterprise
requiring integration risk assessment
of energy transition
into business Æ Accessing physical climate risks and its impacts
Æ Improvements in Æ Increasing climate-resilient components (biofuels,
energy efficiency CBG, EV) in product offerings
directly impacts GHG Æ Increasing use of renewable energy in operations
emission reductions Æ R&D initiatives on new and cleaner energy solutions
Æ Important as a Æ Awareness creation, Capability building and
decarbonisation lever Stakeholder communication
Æ Air pollution is a major
aspect for health
concerns. Air quality
impacts quality of health
Water & Wastewater Æ Water stress and Æ Identification of vulnerable locations to water stress
Management (E) shortages can lead to Æ Measurement and monitoring of water utilisation,
business disruptions feedback, corrective action
Æ Promoting Reuse, Recycling and
Recharging practices
Æ Awareness creation, Capability building and
Stakeholder communication
Biodiversity (E) Æ Growing Regulatory/ Æ Developing, maintaining and enhancing green
Stakeholder concerns on belt coverages
environment, ecological Æ Periodic review and monitoring of biodiversity
balance (Flora and footprints at locations through audits
Fauna)
Æ Preservation of local biodiversity flora, fauna to
maintain ecological balance
Æ Awareness creation amongst employees and
stakeholders on importance and preservation
of biodiversity
Occupational Health & Æ Important for human Æ Periodical review and monitoring of Health
Safety (S) well-being, loss and Safety management system, SOPs, Safety
Product Safety & Quality(E) prevention, business Committees, compliance, audits, surprise
Safety & Security of critical reputation, creation inspections, Board level reviews, Process safety
Assets (S) of safety culture management, Emergency and Crisis Plans, periodic
and generation of health examinations
Transport Safety (S) economic value Æ Hazard Identification, risk assessment and mitigation
Æ Trainings and capacity enhancements - safety
induction, trade specific, live fire trainings,
stakeholder engagements, empowerment
Æ Incident investigation, Root cause analysis, sharing
of learnings from incidents
Æ Focus on quality products and customer awareness
on product Safety and Quality
Æ Periodic and preventive maintenance systems for
critical assets

56 Hindustan Petroleum Corporation Limited


Material issue
Rationale for identifying the
E – Environmental Management Approach
issue
S – Social
Manpower Management (S) Æ Attract and Retain talent Æ Periodic review and management of HR practices
Æ High level of job and policies, monitoring, welfare initiatives, health
satisfaction leads initiatives, employee satisfaction, feedback,
to long-term encouraging participation, motivation, career
business associations progression, enhancement of technical and
behavioural competencies
Æ Competent manpower
contribute to Æ Continual engagement, enablement and empowering
Sustainable development of stakeholders through variety of interventions
Æ Work-life balance results Æ Maintaining excellent stakeholder relations
in higher efficiencies, Æ Ensuring objectives of various labour enactments
performance satisfaction, and labour law compliances
health, safety and well-
being
Customer Satisfaction (S) Æ Key to consistency, Æ Delighting customers through differentiated services
customer retention, and delivering happiness through participative and
business and longevity consultative practices, surveys, feedbacks
of associations Æ Usage of efficient and environment-friendly
Æ Creates products, solutions, services, technology,
brand ambassadors automation, digitalisation
Æ Continual engagement, enablement and empowering
of stakeholders
Supplier Environment Æ Emerging regulations/ Æ Awareness creation among suppliers on
Assessment (E) expectations on environmental impacts of supply chain and
alignment of supply emerging trends
chain to societal and Æ Identifying high value supplier partners for carrying
corporate environment out supplier environment assessment
and social objectives
Æ Time-bound implementation of supplier criteria for
Æ Equal social development environmental stewardship
and collaboration on
topics of climate change Æ Raising performance standards of identified
suppliers on environment front thereby reducing
supply chain footprint
Research & Development (E) Æ Key to support energy Æ Developing innovative products, solutions and
transition through technologies to bring value to stakeholders
innovation, research and Æ Developing knowledge base and conducting industry
cost optimisation relevant research
Æ Revenue generation Æ Develop safe and green solutions to protect
through technologies of the environment
mass adoption
Æ Growing organically in all verticals relevant to
Æ Indigenisation resulting in energy, chemicals, petrochemicals through internal
self-reliance in business capacities and collaboration
Human Rights (S) Æ Non-compliance to Æ Submit annual communication on Progress for
Diversity & Inclusion (S) upholding human rights, adherence to Human Rights principles of the United
working conditions may Nations Global Compact
lead to reputational risks Æ Inclusion of labour laws addressing
Æ Equitable distribution elements of Human Rights requirements in
and growth of society, procurement contracts
Opportunities for Æ Providing mandatory training on statutory
livelihood and growth compliance of human rights aspects, POSH to
officers and educating stakeholders on the subject
Æ Field audits by HR function and statutory authorities
on compliance
Ethics, Transparency and Æ Important to protect Æ Formulation of applicable policies, Identification of
Regulatory Compliance (G) against litigation and vulnerable areas, auditing mechanisms and reporting
reputation risk to management
Æ Transparency positively Æ Enterprise Risk Management System for close
impacts stakeholders monitoring and mitigation of risks
Æ Ensuring adherence to national/international/
customer standards & quality assurance
Æ Accurate, Balanced, Comprehensive, Comparable,
Contextual and Timely Reporting

Sustainability Report 2022-23 57


Doing Business Responsibly

Minimising Environmental Impact


Environment Management
We believe in maintaining environmental sustainability for the health of our planet, the
well-being of current and future generations and the preservation of ecosystems and
biodiversity. To that end, we are focused on greening our operations by implementing
sustainability initiatives for energy efficiency, reducing carbon footprint, conserving
water, harvesting rainwater, managing waste and more.

We equally focus on the triple bottom line Environment Management


framework of financial, social and environmental
capital towards greater business values. To revitalise We are adopting best-in-class operating systems,
the organisation towards future challenges, HPCL practices and procedures oriented to environmental
has undertaken, with renewed resolve, to create a preservation to achieve environmental stewardship.
“Nayaa HPCL”. Robust environmental management systems
have been established in our refineries and
ESG Orientation major marketing locations. Major installations
have adopted environmental management
Environment, Social, and Governance (ESG) systems to ensure continuous improvement in
parameters are becoming increasingly relevant for environmental protection.
evaluating an organisation’s performance. Focusing
on ESG helps in better risk management, enhancing Hazardous waste treatment and disposal systems
reputation and stakeholder trust, long-term are available at various locations in line with industry
sustainability and resilience and meeting regulatory best practices. State-of-the-art effluent treatment
compliance and legal requirements. plants for treating and recycling effluent water are
available at major locations to ensure the protection
We are integrating ESG factors into future strategies of the environment. Best-in-class technologies such
and business operations with a view to enhance as volatile organic compound (VOC) monitoring and
competitive advantage, attracting investors, the leak detection and repair (LDAR) programme
building resilient business models and contributing have been adopted for monitoring and controlling
to a more sustainable and inclusive global economy fugitive emissions at major installations. Vapour
and are committed to achieving our ESG objectives recovery systems (VRS) have been installed at
by implementing best practices in our operations various supply locations and retail outlets. Gaseous
and activities. The ESG performance has also been emissions to the environment and ambient air
benchmarked with national and international peers. quality are continuously monitored with the use of
Special emphasis on ESG parameters and building the latest technologies, including real-time data
strategic partnerships will provide a competitive transfer to regulatory agencies in major locations.
edge to the organisation in the changing Online monitoring of emissions and air quality
business landscape. has a system of alerts in place for monitoring and
rectifying deviations.

⊲ Mass collaboration for environmental conservation

58 Hindustan Petroleum Corporation Limited


We also have a process of HSSE audits to ensure The top target-setting bodies, including Science
compliance with applicable environmental laws Based Targets initiative (SBTi) and Transition
and regulations at various locations. We regularly Pathway Initiative (TPI), were compared basis
conduct environment awareness programmes for methodology used, number of companies assessed,
encouraging rainwater harvesting, reforestation reputation and reach.
and biodiversity in the corporation to promote
sustainability in all facets of the business. By applying the TPI methodology, a range of
scenarios corresponding to different transition
Adaptable HPCL pathways were created and the most appropriate
was selected to showcase the minimum target
We are implementing the T25 strategy, our five- that HPCL needs to take to achieve substantial
year strategy roadmap up to 2025-26, with the aim decarbonisation. The IEA SDS and STEPS scenarios
to capture opportunities in the changing energy were considered for conducting climate-related
landscape, leverage emerging opportunities, scenario analysis.
navigate future challenges and diversify into new
business lines. This will help us to de-risk the Key levers identified for achieving Net Zero in
existing business portfolio. We have developed operational emissions:
a validated roadmap with the help of world-
renowned consultants for achieving Net Zero in Æ Fuel substitution,
Scope 1 and 2 emissions by 2040 with a strong Æ Green hydrogen,
focus on transitioning towards being a multi-energy
green corporation. Æ Energy efficiency and new refining technologies,

Æ Usage of renewable energy,


The strategy aims at creating value and delivering
growth responsibly by strengthening existing Æ Flare reduction, among others.
businesses, leveraging new growth engines such
Towards emission-intensity reduction, we
as petrochemicals and natural gas and seizing
are exploring various business areas such as
green and emerging opportunities with a focus on
renewable energy and storage, biogas, biofuels,
technology and innovation. Special emphasis on
petrochemicals and green hydrogen.
ESG parameters and building strategic partnerships
will provide a competitive edge to the organisation Large-scale energy projects are essential for India
in the changing business landscape. to meet its growing energy demand, diversify its
energy sources, improve energy access, stimulate
Environment Strategy economic development, create jobs, enhance
While formulating the environment strategy after energy security and promote environmental
considering the GHG emission estimations and sustainability. We are cognizant of evolving energy
projections, an exhaustive set of factors required for scenarios, changing consumer preferences,
emissions’ target setting were reviewed to galvanise proliferation of digital technologies and are
reduction efforts and identify GHG reduction continually remodelling our actions to be relevant
opportunities. During the process, aspects such and future-ready.
as the right target setting to choose from, key
target-setting dimensions (such as emissions Value Unlocking
scope, business scope, type of target, timeframe, We continue to explore new business models to stay
Net Zero ambition, target-setting approach) and competitive, respond to changing market dynamics,
related options (intensity-based/absolute target, drive innovation and maximise growth opportunities.
self-determined/Science-based Targets (SBT), all/ To that end, we developed a roadmap for unlocking
selected assets) were identified by the consultants. value in the lubricant business. In-principal approval
has been accorded for exploring options, including
Further, a benchmarking of decisions for target
carving out to unlock value in the high-growth, high-
setting was performed, i.e. for each of the target-
potential lubricant business subject to the approvals
setting dimensions and related options, along with
from competent authorities. The incorporation of a
reasons for leading patterns amongst O&G peers. At
wholly-owned subsidiary, subject to the approvals
the time of formulating our environmental strategy,
from Competent Authorities, for consolidation of all
the consultants found that 100% of the targets are
green and emerging business opportunities under
self-determined targets as SBTs is not validating
one umbrella is being planned.
targets for O&G sector until guidance is provided.

Sustainability Report 2022-23 59


Doing Business Responsibly

Transition Initiatives
We have undertaken several large-scale projects Æ Increasing share of renewables, using renewable
for strengthening the existing businesses in refining power in refineries, solar and wind
and marketing. Most of these projects are either Æ Carbon sequestration through green belt
completed or nearing completion. Completion and development projects
commissioning of these major projects will help
us enhance our capacities and create value in the More opportunities for green business models
coming years. and practices are emerging in the country. We
are seizing green and emerging opportunities by
We have taken up several projects and are also expanding our footprint in advanced/alternative
working on several environmental stewardship fuels. Various biofuels projects are under
initiatives to meet the growing energy demand of execution by HPCL as well as with the participation
the country while reducing the operational impact of entrepreneurs.
on the environment. These are:
We are well aligned with the Government of India’s
Æ Energy efficiency plans to increase the percentage of natural gas in
Æ Introduction, adoption and promotion of alternate the country’s energy mix given its valuable role in
and cleaner product offerings mitigating climate change, improving air quality,
enhancing energy security and providing cleaner
Æ Emissions management: Reducing flare
transportation solutions.
gas emissions and exploring other evolving
abatement techniques Natural gas and petrochemicals are recognised
Æ Water conservation as new growth engines for our business portfolio.
Æ Waste management and circularity Leveraging the existing presence and investments
by HPCL and HPCL’s JVCs/subsidiaries in these
Æ Logistics improvement
areas is being planned.
Æ Biofuels: Setting up of ethanol production
facilities, increasing percentage of ethanol We are participating in the entire value chain of
blending, biodiesel, bio-marine fuel; promoting the natural gas business by setting up an LNG
use of Compressed Bio-Gas (CBG) through import and regasification terminal through a 100%
CBG projects subsidiary, participating in natural gas pipelines
Æ Natural gas: Augmenting CNG facilities at our through joint ventures and expanding its presence in
Retail Outlets the City Gas Distribution (CGD) business.

Æ VLSFO; BSVI auto fuels We are also actively participating in the Government
Æ Petrochemicals; bitumen of India’s SATAT (Sustainable Alternative Towards
Æ Undertaking projects in Green Hydrogen Affordable Transportation) initiative for the
promotion of Compressed Bio-Gas (CBG).
Æ Environmental initiatives through our R&D
Æ Expansion of the EV charging network

⊲ HPCL LNG Limited - Transition to Cleaner fuels

60 Hindustan Petroleum Corporation Limited


We have forayed into the marketing of Climate Governance
petrochemical products with the launch of the
We have constituted a Board-level sub-committee,
HP DURAPOL brand. For further building our
the CSR and Sustainability Development Committee,
petrochemical manufacturing capacities through
comprising of Whole-time Directors, Independent
the joint venture route, large-scale investments
Directors and led by an Independent Director. It
are underway.
meets on a regular basis to review, discuss and
Expansion in renewables is being done through provide guidance on various CSR and sustainability
the solarisation of retail outlets, enhanced usage development initiatives and measures.
of renewable power for meeting operational
Incentives like performance-related pay (PRP) are
requirements of refineries, setting up of
provided to management employees (including
infrastructure for power import at both refineries,
Whole-time Directors) and productivity incentive
and more. The 370 TPA green hydrogen plant
schemes to non-management employees
at Visakh refinery is in an advanced stage
to encourage them to achieve high levels of
of completion.
performance. Overall efficiency initiatives are
With respect to alternative fuels and energy storage, included in the KPIs of location in charges and
new avenues of value creation in the EV ecosystem, plant heads. This has an impact on the overall
including battery swapping and energy storage performance rating of the officers and consequently
solutions, are being explored in collaboration with the monetary performance-related pay for
various technology start-ups and OEMs. the officer.

Our Green R&D Centre is provided with state-of- Under employee engagement on climate-related
the-art infrastructure facilities comprising energy issues, we carry out campaigns with awards for
efficient green buildings. This centre’s strengths employees, contract workmen and business
are being leveraged to provide advanced technical associates on climate-related events such as World
support to various strategic business units and Environment day, Saksham Programme, and others.
for the conceptualisation, development and Employees are encouraged to take up climate-
commercialisation of products and technologies in related issues through campaigns and contact
emerging areas. programmes. Other initiatives include driver training
on fuel efficient driving, defensive driving, etc.

During 2022-23, we invested ` 319.22 Crore in


R&D initiatives directed towards new product
formulations, improving product efficiency, research
on biofuels lowering emissions, longer life, and
improving processes and capital expenditure
We have a scheme for supporting ‘startups’ called (capex) investments in technologies of ` 10,853.71
‘Udgam’, which enables technology innovators and Crore. This will also create an enormous positive
entrepreneurs to pursue a promising business and impact to improve the environmental and social
technology idea to fruition. impacts of products and processes.

(Details of these and several other initiatives are


elaborated in relevant sections of this report).

Adoption of Best Practices


We have adopted a comprehensive rating assessment
of our marketing locations by the Confederation of
Indian Industry (CII) based on various sustainability
parameters, which takes a life cycle approach. To
improve the ‘Green Quotient’ of our operations, we
continued implementing the GreenCo Rating System
at our marketing locations. We are the country's
first company in the Oil and Gas sector to adopt the
GreenCo rating. As of March 31, 2023, 25 locations
were assessed and certified with ‘GreenCo Rating’ by
CII. In 2023-24, we have taken up implementation of ⊲ "Platinum" Award in “Grow Care India
Greenco Rating at 30 locations. Sustainability Award 2022” to HPCL
Sustainability Report 2022-23 61
Doing Business Responsibly

Mission LiFE
This is an India-led global mass movement to nudge
individual and community action to protect and preserve
the environment.

The idea of Mission LiFE was introduced by Hon'ble


Prime Minister Shri Narendra Modi during the 26th United
Nations Climate Change Conference of the Parties
(COP26) in Glasgow (November 2021).

We are actively participating in the ‘Mission LiFE’


movement to bring individual behaviours to the forefront
of the global climate action narrative, for providing the
movement with a greater mass reach and to meet the
objectives of the country’s sustainable development
agenda. We displayed Mission LiFE creatives at
1,250 retail outlets, engaged more than 5,000 Pro‑Planet
People, recollected more than 1,000 MT of waste plastic,
planted more than 1,500 trees, sold more than 9,000
high-efficiency thermal LPG stoves with efficiency of
more than 74% and organised numerous awareness
sessions such as nukkad natak (street plays), school
competitions, and more.

62 Hindustan Petroleum Corporation Limited


Sustainability Report 2022-23 63
Doing Business Responsibly

Energy Efficiency
We serve the energy needs of the people through our high-quality value-added products
(fuels and non-fuels) offerings. Manufacturing and distribution of these products require
a significant amount of energy. Energy conservation is one of the important factors in
lowering refinery operating costs and therefore, energy efficiency is a priority area.

Our energy consumption is due to the direct fuel consumption in various processes and equipment, captive
power generation, import of grid electricity, transportation, etc. We measure and monitor our energy
consumption and derive actionable insights through process modifications, the use of energy-efficient
equipment and technologies and the adoption of best practices at our refineries and marketing locations.

Internal Energy Consumption (Direct + Indirect + Renewable), Energy intensity

Energy Consumption UoM 2022-23 2021-22


From renewable sources
Total electricity consumption (A) GJ 105,616 86,051
Total fuel consumption (B) GJ 0 0
Energy consumption through other sources (C) GJ 0 0
Total energy consumed from renewable sources (A+B+C) GJ 105,616 86,051
From non-renewable sources
Total electricity consumption (D) GJ 39,37,084 28,76,326
Total fuel consumption (E) GJ 51,639,096 41,036,852
Energy consumption through other sources (F) GJ - -
Total energy consumed from non-renewable sources GJ 55,576,179 43,913,178
(D+E+F)
Energy intensity per rupee of turnover GJ/` Crore 119.83 118.07
(Total energy consumption / turnover in rupees)
Energy intensity per MT of Refinery throughput* GJ / MT of Refinery 2.92 3.15
Throughput

* Energy intensity has been calculated in terms of refinery throughput as energy consumption at our Refineries constitutes ~ 95% of
total energy consumption in our refining and marketing operations.
Restatement: This year we have given the bifurcation on energy consumption through Renewable Sources (Solar+Wind) and
accordingly restating the data for 2021-22 as per the new bifurcations for parity.
Local Conversion factors are used for energy consumption calculations.

External Energy Consumption


This year, we estimated 9.7652 Million GJ of energy and Visakh are proactively conserving energy and
consumption towards product movement and significantly improving their operating practices and
employee commute. This energy consumption is implementing energy conservation projects.
accounted for in our product movement by road
Our Visakh Refinery Modernisation Project (VRMP)
for marketing SBUs and employee commute. Local
to enhance the crude refining capacity from 8.3 to
Conversion factors have been used.
15.0 MMTPA has attained the critical milestone of
the commissioning of a 9 MMTPA Crude Distillation
Energy Conservation initiatives at HPCL Unit (CDU), which is highly energy efficient. The
associated facilities and utilities, such as the Grid
Various energy conservation projects leading
Power Supply, Raw Water System, Bearing Cooling
to enhancement in energy efficiencies have
Water system, Sea Cooling Water System, Plant/
been undertaken.
Instrument Air systems, Cryogenic Nitrogen Unit
Refineries and Staged Flare System were also commissioned
during the year. The completion of the key milestone
Our Refineries are committed to continuously of CDU commissioning marks a significant step
improving their performance, promoting sustainable towards optimising the refining processes, reducing
practices and reducing our energy consumption the environmental footprint and meeting the
through modernisation of our infrastructure. In growing demand for high-quality products. The
pursuit of this goal, both of our refineries at Mumbai refinery expansion project is in an advanced stage

64 Hindustan Petroleum Corporation Limited


of completion, which will further enhance energy both refineries are participating in the Refinery
security and sustainability. Performance Improvement Programme
(RPIP) to optimise processes and improve
Both of our refineries are participating in a energy consumption.
performance benchmarking study conducted
by M/s. Solomon Associates, USA, to achieve
reliability and operational excellence. Additionally,

Other projects that our Refineries have implemented in the recent years include:

Mumbai Refinery Visakh Refinery


Æ Achieved higher flare gas recovery from Æ Stopping of one of the hydrogen generation
hydrocarbon flare by implementing modification units (HGUs) by generating higher quantity of
in fuel gas system. hydrogen through another HGU post replacement
of catalyst with superior grade.
Æ Reduced steam consumption in ejector of new
vacuum distillation unit (NVDU) based on the feed Æ Routing of continuous catalytic reforming
quality resulting in significant energy savings. (CCR) stabiliser off gas to Net Gas compressor
(NGC) suction resulting in higher recovery and
Æ LP steam consumption in de-aerator of
energy efficiency.
continuous catalytic reforming (CCR) was reduced
through optimisation of operating conditions. Æ Dry ice blasting of make up heater (MUH) tube
surfaces in heat recovery steam generator (HRSG)
Æ Maximisation of hot feed in DHT (Diesel Hydro
-3 & 5 leading to higher heat transfer.
Treater) resulting in energy savings.
Æ Restoration of flare purge gas routing of Vizag
Æ The installation of a plate-type heat exchanger
Refinery Clean Fuel Project (VRMP) from
has resulted in an increase in the approach
MS Block.
temperature of sour water feed to strippers.
Æ Implementation of heat integration in propane
de-asphalting (PDA) unit using Pinch analysis
resulting in greater energy efficiency and
reduction in overall energy consumption.

Both Mumbai and Visakh Refinery celebrated Sanrakshan Kshamta Mahotsav (SAKSHAM) under the aegis of
the Petroleum Conservation Research Association (PCRA) to generate mass awareness amongst the public
for the conservation of petroleum products. As part of this celebration, a furnace efficiency survey was
carried out by the CHT nominated team in both the refineries.

⊲ HPCL refineries monitor processes closely for improving productivity, efficiency and reduction in emissions
Sustainability Report 2022-23 65
Doing Business Responsibly

Parameter UoM Mumbai Refinery Visakh Refinery


Capital Investment on Energy Conservation Equipment ` Crore 5.5 26.4
Energy Savings SRFT 46,262 38,780
Specific Energy Consumption MBTU/BBL/ NRGF 76.0 79.12

HPCL Mumbai and Visakh refineries are Designated Consumers under Perform, Achieve and Trade
(PAT) scheme. Whereas MBN Target under PAT scheme has been achieved by Mumbai Refinery, Visakh
Refinery was below its PAT targets due to ongoing Visakh Refinery Modernisation Project for which
phase wise commissioning is in progress from Q4 of 2022-23. Same will be achieved once the facilities are
commissioned as the new facilities are state-of-the-art energy efficient facilities.

⊲ VFDs for product pumps and LED lighting in sheds for energy conservation

Marketing Locations
Electrical energy is the primary energy used to Æ Replacing conventional lights with energy-
power the storage and distribution facilities. We efficient lights
measure and monitor our energy consumption
Æ Conducting awareness programmes on
and derive insights for action through process
energy conservation
modifications, use of energy-efficient equipment
and technologies and adoption of best practices. Æ Using optimisation tools for the most effective
logistic linkages for maximising turn-arounds and
Our marketing locations undertake several initiatives minimising idling and wastages
to achieve energy savings such as:
Energy efficiency and cost optimisation have
Æ Measurement and close monitoring of been key focus areas for pipeline operations.
energy consumption With sustained efforts towards efficiency and
conservation, the operating cost of pipelines
Æ Installation of high-efficiency prime movers and
has seen a reduction of about 5% in comparison
associated equipment
with historical levels. On the back of various cost
Æ Conducting periodic energy audits to identify optimisation initiatives implemented during the year,
energy saving opportunities we have improved performance on the Solomon
Global Benchmarking of Manageable Non-Volume
Æ Maintaining power factor near unity by using
Expenditure (MNVE), which is in the top quartile of
capacitor banks
Indian Pipelines’ average performance.

66 Hindustan Petroleum Corporation Limited


GHG Emissions and Air Quality
Direct (Scope 1), Indirect (Scope 2) Emissions, Emissions Intensity
GHG Emissions - Scope 1, 2 UoM 2022-23 2021-22
Total Scope 1 emissions tCO2e 4,304,201 33,41,914
Break-up of Scope 1 emissions
CO2 tCO2e 42,66,795 33,00,035
CH4 tCO2e 31,489 37,552
N2O tCO2e 5,917 4,325
Total Scope 2 emissions # tCO2e 776,480 6,31,194
Total Scope 1 and Scope 2 Emissions per tCO2e / ` Crore 10.94 10.67
rupee of turnover
Total Scope 1 and Scope 2 Emissions tCO2e / MT of Refinery Thruput 0.27 0.28
Intensity*

# Break-up of Scope 2 emissions into individual GHGs is not available as we use average Grid Emission Factor for Indian Grid issued
by Central Electrical Authority

* GHG emissions intensity has been calculated in terms of refinery throughput as GHG Emissions at HPCL Refineries constitutes ~
95% of total GHG Emissions in HPCL refining and marketing operations

Data for 2021-22 is restated due to bifurcation of renewables in energy matrix

GHG Emission Reduction Initiatives and their Impact in 2022-23


Initiative Million tCO2e
Energy-saving initiatives in refineries 0.272
Renewable energy 0.044
Carbon sequestration through trees (within premises) 0.004

Estimation of Scope 3 Emissions


Scope 3 Emissions Category Million tCO2e
3- Fuel and Energy (includes WTT and T&D emissions) 0.160
4- Upstream Transportation and Distribution (includes transportation of crude in oil tankers and 0.577
liquid petroleum products)
6- Business Travel (by Air) 0.004
7- Employee Commuting 0.016
9- Downstream Transportation (includes transportation of products by rail, road and ship) 1.077
11- Use of Sold Products (includes sold products combusted as fuels by end consumer, assuming 127.191
complete combustion of fuels)

Calculation Methodologies
The standards, methodologies and assumptions (based on operational control) used for the purpose of
our calculations were obtained from the Intergovernmental Panel on Climate Change (IPCC), Guidelines
for National Greenhouse Gas Inventories 2006, the IPCC Sixth Assessment Report (with consideration of
2019 Refinement to the 2006 IPCC Guidelines for National Greenhouse Gas Inventories), Central Electricity
Authority (CEA) - CO2 Baseline Database for the Indian Power Sector, Version 18.0, December 2022,
India GHG Programme, Version 1, 2015 (emission factor for material transport by rail) and UK Govt. GHG
Conversion factors for Company reporting 2022 (for ship transport). The emission calculations consider
CO2, CH4 and N2O GHGs. For the purpose of this report, 2019-20 is the base year. The process emissions
from Hydrogen production at refineries are calculated using local conversion factor. The emissions
from flaring at refineries is calculated using Default IPCC Tier-1 emission factors for crude oil based on
conservative approach.

Sustainability Report 2022-23 67


Doing Business Responsibly

Methane Emissions
Methane is recognised as a potent contributor to To accelerate our energy transformation journey,
GHG, but its emissions from downstream oil & gas we have established a new 'Energy Transition
operations are limited. Methane is part of the fuel Cell,' which is dedicated to achieving our net-
gas stream used as refinery fuel. IPCC emission zero goals. These efforts reflect our strong
factors are used to estimate the methane emissions commitment to sustainability and our willingness
from the fuel combusted data. This is an effort to explore innovative solutions to reduce our
to capture possible methane emissions due to environmental impact.
leakages. All flare losses are combusted before
release through refinery stacks. We undertake We are increasing our share of energy sourced from
robust actions to mitigate the same. At present, we low-carbon fuels such as natural gas, electricity and
have undertaken efforts like minimising losses in renewable energy in its overall energy basket.
natural gas storage and transport, Leak Detection
Our Mumbai Refinery continued to source more
and Repair (LDAR), use of double sealed tanks,
than 70% of its power requirement from the
vapour recovery systems to reduce hydrocarbon
grid. Additionally, as part of the Visakh Refinery
and related methane emissions.
Modernisation Project (VRMP), the Visakh Refinery
commissioned a project to connect the refinery
Projects and Initiatives Related to power to grid at 220 KV levels.
Reducing Green House Gas emissions
PMUY: The Pradhan Mantri Ujjwala Yojana (PMUY)
Being part of the Oil & Gas sector, we have unique
was launched in 2016 to provide environmentally
responsibility and opportunity to contribute to the
friendly and clean cooking fuel to women,
development of solutions for addressing the issue
particularly in rural areas and to alleviate health
of climate change and its impacts. Our Sustainable
risks associated with the use of traditional fuel.
development policy emphasises on carbon footprint
This Yojana has several goals, including eliminating
measurement and mitigation the same.
hazardous traditional cooking fuel, empowering
women and supporting and promoting the use
of LPG.

1 2

⊲ Launch of Country’s first Bio-Marine fuel

68 Hindustan Petroleum Corporation Limited


Some of the projects related to efficiency enhancements and GHG emissions reduction are:

Sustainability
Impact/Performance
Initiative

Bio-Fuels Æ Ethanol Blending: We achieved ethanol blending percentage of 10.59% in 2022-23 (historical 9.03%).
We are the first oil marketing company to commence 12% blending from December 2022.
Æ Augmented ethanol tankage at locations; ethanol blending in all states of India.
Æ Transportation of ethanol by rake.
Æ Construction of second-generation ethanol bio-refinery at Bathinda, Punjab, with a production
capacity of 100 kiloliters per day of ethanol from biomass.
Æ Commissioning of our first Compressed Biogas Plant (CBG) of 100 TPD of lignocellulosic Biomass
processing capacity producing about 14 TPD of CBG at Badaun (Uttar Pradesh).
Æ Setting up a waste-to-biogas plant at Yerada Park in Vizag, Andhra Pradesh.
Æ Setting up Compressed Biogas (CBG) plant of 100 TPD of cow dung processing capacity under the
CSR scheme at Pathmeda, Rajasthan.
Æ Actively participating in the Indian government’s SATAT initiative to promote CBG. Released letters
of intent (LOIs) for setting up 63 compressed bio-gas (CBG) plants with a production capacity of
~321 ton/day, taking the cumulative to 476 LOIs with capacity of ~2,584 ton/day across the country to
increase usage of biofuels in the energy and transportation sectors.
Æ Commissioning of 4 CBG plants cumulatively.
Æ Signed an MoU with National Agriculture Cooperative Marketing Federation of India (NAFED) for
collaboration in biomass/feedstock sourcing and marketing of end products.
Æ Launch of E20 fuel at 23 Retail outlets along with Green Mobility Rally in February 2023 by Hon’ble
Prime Minister.
Æ Blending of Biodiesel with Marine Fuel: Launch of Country’s first Bio-Marine fuel at the hands of
Secretary-PNG, MoPNG in December 2022 from HPCL Visakh New Black Oil Terminal. This product
is a 10% blend of biodiesel (B100) in very low sulphur furnace oil (VLSFO). This biodiesel supply was
sourced from an International Sustainability & Carbon Certification (ISCC)-certified supplier to meet
the stringent global norms specified for bunker supply to ships. This is the first Bio-Marine (Biodiesel
blended) bunker supply by any OMC in the country meeting the standard of Marine fuel. This Bio-
Marine fuel is expected to bring down GHG emissions. 1, 2

Natural Gas Æ We, along with its JVCs, have authorisation for setting up of CGD network in 23 Geographical Areas
(GA’s) comprising 48 districts spread across 12 states with planned investment of over ` 10,000 crore
during next few years.
Æ Addition of CNG facilities in 301 retail outlets taking the total number of our outlets with CNG facilities
to 1,387 as of March 31, 2023.

Electric Vehicle Æ With 1,026 new EV charging stations commissioned during 2022-23, HPCL now has EV charging
Infrastructure facilities at nearly 10% of its retail network, i.e. at a network of a total of 2,037 outlets as of March
31, 2023.
Æ Signed an MoU with Petromin Corporation, Saudi Arabia, for exploring setting up of vehicle service
centres in retail outlets of the Corporation and collaboration in the field of e-mobility.

Sustainability Report 2022-23 69


Doing Business Responsibly

Sustainability
Impact/Performance
Initiative

Renewable Æ Various projects have been undertaken for leveraging renewable energy (RE) sources to reduce the
Energy
carbon footprints and electricity cost across the value chain.
Æ Installed capacity of 100.9 MW of wind power; during 2022-23, wind farms generated 18.29 Crore
kWh electricity.
Æ Installed 30.34 MWp of captive solar power capacity across various locations, taking the total to
84.36 MWp.
Æ Installed solar panels at 4064 retail outlets during the year taking solarisation at 10,475 retail outlets
covering about 49% of the total retail outlets.
Æ Commencement of work for two new projects for supplying green power to our locations in
Haryana (Panipat – 6 MW AC side) and Uttar Pradesh (Jhansi – 6MW AC side), which would reduce
consumption of grey power and GHG emission.
Æ Provision of solar streetlights at 400 locations in Uttar Pradesh under CSR for providing benefit to
public in an environment-friendly manner.
Æ Commissioned roof top solar panel of capacity 700 KW at Mumbai Refinery.
Æ Signed MoUs with the Government of Andhra Pradesh and NTPC Green Energy Ltd for collaboration
in the renewable energy sector, paving the way for sizeable investments in Andhra Pradesh with a
focus on solar and hybrid RE projects.

Green Hydrogen Æ Use of green hydrogen in operating hydro processing pilot plants and batch reactors at HPGRDC.
Æ Production of green hydrogen at Visakh Refinery. We were the first OMC to place an order for
electrolyser to produce green hydrogen. A 2.6 MW electrolyser will be installed in Visakh Refinery to
produce 370 TPA of green hydrogen.

Energy Æ Refer to section on Energy Conservation initiatives at HPCL in this report for more details.
Efficiency

Green Belt Æ We have a green cover of over 1,450 acre inside our premises as on March 31, 2023. We focus on
Development planting tree species, which are native to the location, have low water requirement and offer high
carbon sequestration and encourage usage of Miyawaki technique for achieving faster sequestrations.

Logistics Æ Dependence on road transport for evacuation of products has been reduced drastically, major volume
of the petroleum products from the refineries are being evacuated through pipelines. This is resulting
in considerable reduction in GHG emissions.
Æ During 2022-23, HPCL commissioned 697 km long VDPL (Vijayawada-Dharmapuri pipeline along with
a major greenfield terminal at Dharmapuri and 650 km long HCPL (Hassan-Cherlapalli LPG pipeline)
taking the total pipeline network to 5,132 km.
Æ We recorded our highest ever pipeline throughput of 23.25 MMT against previous years throughput of
19.91 MMT, thus registering a YoY growth of 16.8%.
Æ Use of best-in-class optimisation tools to plan and optimise the sourcing, transportation linkages and
long-term infrastructure needs.
Æ Use of dedicated rakes for LPG transportation service.

70 Hindustan Petroleum Corporation Limited


Air Quality/Air Emissions Pollution Control Measures
Our Refineries continue to focus on environmental
Mumbai Refinery
protection. Both the refineries have implemented
internationally accepted Environmental Management Æ Ensured compliance in parameters on stack
Systems based on ISO-14001 Standards. Best emission, hazardous waste disposal and effluent
practices, such as volatile organic compound generation as per consent conditions.
(VOC) emission monitoring and leak detection and Æ Low sulphur fuel gas and fuel oil is fired to
repair (LDAR) programme, have been adopted minimise stack emission. Low Nox burners are
for monitoring and controlling fugitive emissions. used in refinery heaters.
Gaseous emissions to the environment and ambient
Æ All hydrocarbon samplings are done in a closed
air quality are continuously monitored including real-
loop system.
time data transfer to regulatory agencies.
Æ Effluent Treatment Plant has VOC capture and
Our Mumbai Refinery has a target for maintaining
treatment system for preventing air emissions.
NOx and SOx emission under 5.9 and 12.6 tons per
day respectively; while our Visakh Refinery has a Æ Petroleum storage tanks are complying to roof
target for maintaining NOx and SOx emissions under requirements as stated in MoEF&CC G.S.R.
6.5 and 11.5 tons per day respectively. 186(E) dated March 18, 2008, for minimising
air emissions.
Actions ensured to comply with the air emission
(NOx and SOx) limits at Refineries: Æ Hydrocarbon flare is connected to recovery gas
compressors for maximising recovery of vent
Æ Furnaces and boilers are provided with low gases. Smokeless flare is deployed.
NOx burners. Æ Leak detection & repair (LDAR) survey
Æ Sulphur Recovery Units (SRUs) are provided to is carried out on quarterly basis for early
remove H2S from off gases of product treatment identification of fugitive emissions, for minimising
(desulfurisation) units. All these units have Tail fugitive emissions.
Gas Treatment facilities towards maximizing the Æ Automated sweeper vacuum trucks are used
efficiency of Sulfur recovery. for removal of road dust to minimise particulate
Æ Amine absorption units are provided towards matter emissions.
desulfurisation of fuel gas before using as fuel in Æ Mumbai Refinery is a member of Tier-I OSR
furnaces / boilers. facility kept deployed under the supervision of
Æ Only low Sulphur fuel oil and sweet refinery fuel Bombay Port Trust (BPT) for handling any major
gas are used as fuels in furnaces and boilers. accidental oil spills, along with nearby industries.
Æ Maximizing of RLNG in furnace firing (at Mumbai
Refinery). Visakh Refinery
Æ Flue Gas Desulphurisation units are installed in Æ Ensured all measures to meet compliance levels
FCCUs for removal of SOx and SPM from FCC of ambient air quality, stack emissions, hazardous
regenerator flue gases. waste and effluent treatment.
Æ All the furnaces and boiler stacks are provided Æ Obtained consent for operation for Visakh
with on - line analysers for continuous monitoring Refinery Modernisation Project (VRMP)
of NOx, SOx, CO and SPM parameters and from APPCB
immediate corrective action is taken in case
Æ Obtained renewed consent for operation of
of any deviation observed from the stipulated
Single Point Mooring (SPM) facility from APPCB.
emission limits.
Æ Obtained vetting of Indian Coast Guard for Oil
Spill Contingency Plan for SPM facility.

Air Emissions for Refineries in 2022-23*

SOx
4,960 MT
NOx
Particulate matter (PM)
1,730 MT Volatile organic compounds (VOC)

*Measured Values
366 MT

24 MT

Sustainability Report 2022-23 71


Doing Business Responsibly

Biodiversity

We are committed to conserving biodiversity and habitats in the places of our


operations. We consider biodiversity protection in our decision making and
management from the earliest stages of project initiation, execution, operations and
closure at our location.

Biodiversity is the variability among living organisms. Pre-construction activities are also carried out,
It includes diversity within species, between species including site topographical and contour surveys, soil
and of ecosystems. Biodiversity not only has intrinsic investigations, pre-project approvals from concerned
value, but is also vital to human health, food security, departments viz. factory inspectorate, PESO, PCB/
economic prosperity and mitigation of climate change SLEIAA/DM NOC. Final project cost estimates and
and adaptation to its impacts. Further, growing return calculations are carried out before preparing
Regulatory, Stakeholder concerns on environment Detailed Feasibility Report (DFR).
and ecological balance (Flora and Fauna) have
necessitated addressing the biodiversity requirements. All statutory and legal compliances as well as higher
level industry compliance requirements, like OISD,
Since our locations are restricted to access by general are identified for developing and implementing action
public and are controlled areas, they provide excellent items on the compliances. Public Consultation is
avenues for growth and sustenance of local species carried out as per applicable terms of reference.
of flora and fauna, both of which are nurtured at
our locations. Health, Safety and Environment Management
plans are also developed concentrating on waste
Many of our locations have excellent green belt cover generation, disposal by the contractors carrying out
with preserved land topography that nurtures the the jobs.
local species of flora and fauna. They have excellent
variety of herbal plants, fruit bearing trees and green
belt which is maintained regularly and is frequented
by many species of local and migratory birds, insect
and butterflies.

At HPCL, land identification and assessment is


undertaken upon approval of the Detailed Feasibility
Report (DFR). The assessment criteria includes
environmental and safety considerations to evaluate
the land feasibility on proximity to populated areas,
environmental impact assessment, requirements of
green buffer to meet Pollution Control Board (PCB)
requirements, non-violation of Coastal Regulation
Zone (CRZ) Regulations, selection based on soil
conditions, avoiding land parcels containing large
number of trees requiring permission from forest
authorities, avoiding plots adjacent to reserve forests
among others.

After the selection process, in-principle approval


from statutory authorities is obtained. After internal
technical approvals and cost approvals, land
acquisition proceedings are undertaken through
a structured process. Based on the desired layout
and product handling configurations, HARA/
HAZOP/remote sensing survey study and an EIA are
conducted. This report is submitted to State Pollution
Control Boards, State Level Environment Impact
Assessment Authority, Factories Inspectorate, Fire
services department for seeking approvals. ⊲ Going Green - Promoting Biodiversity

72 Hindustan Petroleum Corporation Limited


The study of presence of IUCN Red List species and locations, the following typical conditions, inter alia,
national conservation list species with habitats in are adhered to:
areas affected by the project are generally undertaken
during the EIA of projects. The EIA/SLEIAA/PCBs Æ Compliance to the specific conditions mentioned
terms of references to environmental parameters are in the environmental clearance and CRZ approvals
thoroughly reviewed and implemented. from MoEFCC.

Æ Norms of Oil Industry Safety Directorate (OISD)


To maintain biodiversity, our locations undertake
are followed in respect of storage and transport of
several initiatives like:
petroleum products.
Æ Developing, maintaining and enhancing green Æ Construction of structures are undertaken as per
belt coverages plans approved by concerned local authorities while
Æ Periodically reviewing and monitoring biodiversity meticulously confirming to existing applicable local
footprints at locations through audits and central rules and regulations.

Æ Preserving local biodiversity flora, fauna to maintain Æ Monitoring of volatile organic compounds is carried
ecological balance out regularly.

Æ Creating awareness amongst employees and Æ In case of pipeline passing, necessary signage is
stakeholders on importance and preservation installed in English and regional languages.
of biodiversity Æ Disaster management plan is prepared and
As a part of the disclosure requirements of the complied with and oil spill contingency plan is put
Business Responsibility and Sustainability Report in place.
(BRSR) and the criteria given therein, our Kandla Æ Wastewater generated is properly treated and
Terminal Kozhikode IRD, Chennai New Terminal reused with provision of oil water separator system.
fall under the requirements of the CRZ, have
valid approvals and comply to the conditions of Æ Oily waste is stored in dedicated storage area and
environmental approval/clearance. In respect of these disposed to authorised recyclers.

Sustainability Report 2022-23 73


Doing Business Responsibly

Research & Development

Research and development (R&D) is a key opportunity area to support energy transition
through innovation, research, indigenisation, cost optimisation and revenue generation
improving self-reliance.

Our approach to capitalise on this opportunity Core Purpose of HPGRDC is to make


area includes developing innovative products,
energy and chemicals accessible to
solutions and technologies to bring value to
stakeholders, developing knowledge base and everyone through innovation.
conducting industry-relevant research, develop
safe and green solutions to protect the environment HPGRDC Vision
and growing organically in all verticals relevant to
energy, chemicals, petrochemicals through internal Æ Is an energy research centre par excellence,
capacities and collaboration, among others. pioneering innovative & sustainable technologies
and products, globally.
We focus on R&D to create an enduring advantage
Æ Delights its customers by providing innovative,
for our business. Hindustan Petroleum Green
cost effective and timely solutions and meets the
R&D Centre (HPGRDC) has been set up with the
expectations of stakeholders.
objective of providing advanced technological
support to marketing SBUs and refineries. It aims to Æ Nurtures innovation and provides
provide operational excellence, develop and adopt challenging work environment for sustained
innovative, path-breaking technologies and become employee engagement.
a knowledge hub.
Æ Fosters fairness, frankness, trust, transparency
We continue to look beyond traditional products and safety as its core value.
and foray into various niche and specialty product
segments. The key strengths of HPGRDC in Research Approach and Thrust Areas
developing high-quality products are being
leveraged in this direction. Æ Indigenisation of refinery technologies

Æ Indigenisation of chemicals, additives, catalysts


The research centre is provided with state-of-the-art
infrastructure facilities, comprising energy-efficient Æ Valorisation of low value refinery streams
green buildings with a built-up area of about 6 lakh
Æ Specialty lubes/additives/products
square feet (sq. ft) on a sprawling campus of 170
acres. With the commissioning of seven labs in Æ Process intensification
Phase 2, the state-of-the-art HPGRDC has 14 labs in
Æ Novel separations
various areas.
Æ Petrochemicals and polymers

Æ Renewable energy (Biofuels, solar)

Æ Battery and energy storage devices

⊲ HPGRDC - making energy and chemicals


accessible to everyone through innovation
74 Hindustan Petroleum Corporation Limited
HPCL Green R&D Centre is an Indian Green At HPGRDC, power for the administration
Building Council (IGBC) Platinum-rated facility. block is being supplied from the solar PV plants
During November 2022, the administration installed at the centre. Also, the green features
Block of the R&D Centre facility which is approx. incorporated in the building include:
60,000 sq. ft. with a designed load of 200 KW
has been awarded with Net Zero Energy Rating, Æ Energy-efficient glazing, external facade that
which showcases our R&D’s continuous efforts curtails heat but harvests natural light and
towards sustainable R&D. provides connection to the outdoors.

Æ Natural daylighting and efficient lighting:


IGBC recognises and awards green ratings
Energy-saving measures like occupancy
basis the sustained performance in terms of
sensors in cabins, motion sensors in corridors
implementation of green features, eco-friendly
and building orientation (East & West for
technologies and renewable energies. The
natural lighting).
net-zero energy rating is issued to facilities that
utilise renewable energy sources for their entire Æ Efficient HVAC Systems: Variable Air Volume
power requirement. (VAV) is installed to ensure proper air flow,
reduced CO2 emission, heat island reduction.

Æ Sustainable materials: Wood, stone, natural


fibre and recycled materials to minimise the
impact of the building on environment.

Æ High efficiency lighting systems, IBMS and


other measures to reduce overall energy use.

Æ Use of green chemistry in research and


various green materials with minimal life-
cycle environmental impact to reduce virgin
material exploitation.

Sustainability Report 2022-23 75


Doing Business Responsibly

In line with the Make in India initiative, HPGRDC has We have also implemented various activities under
completed many projects for indigenisation of products the focus area of contribution to incubators or
and processes and implemented in Refineries. research and development projects in the field of
science, technology, engineering and medicine,
funded by the Central Government or State
Green Initiatives at HPGRDC
Government or public sector undertakings (PSUs)
Æ Green hydrogen is produced using solar power. or other agency of the Central Government or State
Government, and made contributions to public-
Æ PEM Water electrolysis: Water is electrochemically
funded Universities.
split into hydrogen and oxygen.

Æ Biogas (green methane) generated from biomass Expenditure Incurred On R&D (` Crore)
and canteen waste is used in canteen. It is also
utilised for research activities.
210.06
Æ Four vermicomposting pits contribute sufficient 191.62 172.05
manure every 90 days for R&D horticulture needs.
Australian breed red wiggler earthworms are used in
vermi-composting pits. 109.16

Æ Treated municipal sewage water is used in


the campus.

Æ HPGRDC has butterfly park, petal garden


and nursery. 2022-23 2021-22

Capital Revenue
R&D Highlights
Æ Developed/launched 33 new products /
technologies. The above investments, by way of expenditure, have
Æ Filed 90 patents during 2022-23, taking the been carried out towards new product formulations,
cumulative Indian and international patent improving product efficiency, research on
applications to 443. biofuels lowering emissions, longer life, improving
processes, etc.
Æ During the year, 36 patents were granted to
HPGRDC, taking the cumulative patents granted to Some of the key green initiatives undertaken by
160 as of March 31, 2023. HPGRDC are as under:

Æ Towards acquiring advanced scientific knowledge, Æ Process for producing H2 enriched CNG (H-CNG)
increased resources, innovation and collaborative technology without emission of CO2 and
agreements were signed with various organisations/ requirement of any water.
institutions during the year. These shall result in the
development, commercialisation and licensing of Æ Battery and electrolyser technology
various technologies and products. (for producing green hydrogen).

Æ Blue H2 using in-house developed process


intensification concept is being scaled-up

33 for demonstration.

Æ Multiple collaborations with international


New products launched
agencies:

• For commercialisation and licensing of HP-

90 HiGAS Technology.

• Collaborations in hydrocracking, FCC, plastic


Patents filed
material recycling, bio-oil treatment, green
hydrogen and bitumen.

36 The R&D initiatives will help in the development of


future-ready low carbon technologies aligned to our
Patents granted net-zero ambition and overall energy transition.

76 Hindustan Petroleum Corporation Limited


New Products / Processes / Technologies introduced:

Technology Details Benefits Envisaged


HP-DAK Æ It encompasses converting kerosene and diesel Æ Low aromatic solvents are less toxic
range hydrocarbon streams to low aromatic de- than aromatic solvents and can be
aromatised solvents. Feed stock light distillate produced from the light distillate
(LD) is converted to HP-DAK in a fixed bed stream of the refinery.
reactor and then fractionated in different grades Æ HP-DAK products have substantially
as per market demand. high value compared to the LDs,
Æ In-house developed aromatics saturation which are now being blended in HSD.
catalysts are used in the process.
HP FilmMax HT Æ Accidental leaks are reduced to due to Æ Lower corrosion rate and longer
less corrosion. equipment lifetime.
HP Thermopro W Æ Improves the preheat temperature and reduces Æ Mitigates the fouling in
CO2 emissions. preheat exchangers.
Æ Cost-effective and high performance.
HP Laundry Sanitiser Æ Enhances the anti-microbial activity of Æ Cost effective
the laundry.
HP FurnOKare V2.0 Æ Improved cleaning of the furnace. Æ Less fuel oil consumption and
less emissions.
HP SolarOKare Æ Enhances the solar power output with Æ Cost-effective and highly efficient
higher antimicrobial property and less towards hard dust deposits.
corrosive behaviour.
HP Shine Pro Æ New greener formulation to achieve premium, Æ High gloss premium finish at a
high gloss, high solvency paint thinners. significantly cheaper cost.
Æ Improved solvency reduces VOCs.
Power 95 Æ Reduces gasoline consumption, engine deposits, Æ Improved fuel economy
NOx, particulate matter and HC emissions. Æ Faster acceleration
Æ Cleaner engine, lower maintenance
and improved overall engine health
HP PPD ULSD Æ Refiners meet diesel fuel cold flow specifications Æ Improves the low temperature
without adding kerosene operability just by changing physical
properties of the fuel
Æ Cost-effective and self-reliant
HP Frost-free Æ Non-hazardous, non-corrosive formulation for Æ Provides hassle-free driving
frost removal from vehicle windshields in cold experience in cold climate zones.
climate zones Æ Easy-to-use formulation
HP Frost-shield Æ Non-hazardous, non-corrosive formulation for Æ Provides hassle-free vehicle
preventing frost build-up on vehicle windshields maintenance experience for
in cold climate zones customers in cold climate zones
HP-EGIN (Ethanol Æ A corrosion inhibitor for mitigating corrosion in Æ This product will enable corrosion
Gasohol Inhibitor)
storage, blending, handling and transportation of prevention of assets handling ethanol
neat ethanol and gasohol. and gasohol in the supply chain
Æ The product is a mixture of additives in solvents wherein predicted ethanol demand
formulated considering performance of inhibitor will significantly ramp up with
on steel corrosion and shall qualify minimum B+ changing policies.
rating as per NACE 01-72 standard.
Æ The product is stable from -4 to 50 deg. C and
compatible to various metallurgies such as Steel,
SS and brass which means it can be handled and
employed in different geographies.
Æ It was bench marked for commercially available
inhibitor at same dosage rate with a marginal
cost reduction.

Sustainability Report 2022-23 77


Doing Business Responsibly

Technology Details Benefits Envisaged


HP - BCA Æ Bottom cracking additive to reduce FCC Æ Indigenous alternative to imports,
CLO yield. self-reliant and contributes to GOI
Æ Designed based on fine tuning acidity, initiatives like Atmanirbhar Bharat and
accessibility and attrition of the raw materials. Make in India.
Æ The developed additive is scaled up and Æ Due to improved feed VGO conversion
demonstrated at Vizag Refinery-FCC unit. and enhanced bottoms conversion,
Æ HP-BCA has improved 0.6% bottoms conversions significant amount of CO2 emissions
when compared to base case and its activity is could be minimised.
better than benchmark additives. Æ Based on the yield patterns and fuel
oil production, HP-BCA reduces CO2
emissions by 40,000 tons per annum
for 1 MMPTA FCC unit.

Low-carbon Technologies
We have developed our own renewable based demonstration HP-HiGAS unit for CO2 capture from
technology (HP-Trijet) to produce SAF and green HGU process streams at HPCL-Visakh Refinery.
diesel (GD) from used cooking oil (UCO), which
can reduce the anthropogenic CO2 emissions. HPGRDC has signed technology partnership
HP Trijet technology is a unique process, which agreement with M/s Kellogg Brown & Roots LLC,
involves a single step to convert used cooking oil USA, for global marketing and licensing of HP-HiGAS
to sustainable aviation fuel and green diesel. At technology, which has huge potential for application
different process conditions, the current technology in carbon capture (post combustion applications).
can yield 40% of sustainable aviation fuel or 85% of
green diesel. Technology also produces propane Carbon Utilisation Technologies
as a valuable by-product. This technology meets HPGRDC is working on the development of CO2 to
the key objective of PCRA about substitution of methanol process for abating the Scope 1 emissions
petroleum products with alternate and renewable from the refinery. CO2 will be hydrogenated to
fuels. One of the salient features of HP Trijet value added chemical such as methanol. Process
process is that this technology is suitable for placing development using the in-house developed catalyst
modular plants at various locations instead of is in progress to put up the demo plant at our
collecting the UCO and transporting to centralised Vizag Refinery.
location. At present, the technology is tested at pilot
scale and BDEP studies are completed for setting up Technologies for IC Engines to Run
of demonstration plant of 7.4 KTPA. Conversion of 1
ton of UCO to fuels reduces 3.6 tons of CO2 emission
with Additised CNG/HCNG
in atmosphere. In HP Trijet technology, 7.4 KTPA of Additised gaseous fuels: Use of CNG reduces carbon
feed is being converted to renewable fuels which emissions substantially compared to gasoline.
can reduce approximately 26 KT of CO2 emissions. However, CNG imposes certain inherent issues
like lower engine-efficiency. Hence, additised
Carbon-capture Technologies gaseous fuels, where fuel additives are doped to
CNG to enhance its combustion performance, is
HP-HiGAS is a cutting-edge process intensification
being developed.
technology developed by HPGRDC for gas
treatment applications and has huge potential in the Hydrogen IC engine: Hydrogen offers zero tailpipe
areas of carbon capture, natural gas sweetening, carbon emissions. However, it imposes engineering
refinery gases treatment, marine scrubbers. The difficulties for it to be used on the engine. The
technology leads to significant equipment size proposed project would aim at developing strategies
reduction over conventional columns, along with to use H2 in an IC engine in a safe and efficient
other benefits such as low capital cost and improved manner. These engines will completely mitigate the
safety. The first-of-its kind demonstration HP-HiGAS tailpipe GHG emissions.
unit was set up at our Visakh refinery for removal
of H2S from refinery fuel gas, which has achieved Improvements on fuel additives for gasoline, diesel,
10 times size reduction vis-à-vis conventional CNG will enable reduced fuel consumption/tail pipe
column. As part of its continuous technology emission from automobiles and directly benefit on
efforts, HPGRDC is currently setting a 24 KTPA GHG emission reduction.

78 Hindustan Petroleum Corporation Limited


Biomass Pyrolysis to Transportation Fuels
Biomass is considered a renewable source of carbon H-CNG (hydrogen compressed natural gas): H-CNG,
and therefore, it is seen as a potential replacement by definition is, a mixture of 15-20 volume % (4-9%
for petroleum crude oil. Biomass can be converted energy content by H2) of H2 in compressed natural
into a liquid called bio-oil through pyrolysis, which gas which can be used as fuel instead of compressed
can be further upgraded to renewable drop-in fuels natural gas. H-CNG has proven advantages of low
in gasoline and diesel range. India produces around emissions compared to CNG and higher engine
250 MT of surplus biomass residue annually; this can efficiency. This process can use natural gas as well
potentially be converted into 30-50 MT of renewable as renewable biogas as feed to produce hydrogen
transportation fuels. We are currently working on enriched CNG and carbon nanotubes.
developing a technology for converting biomass
residue into drop-in fuels. Once developed, the HP-HCNG technology has no processed carbon-
technology will be demonstrated through a tonnage dioxide emissions. However, its competitive
level demo unit. This technology will help reduce technology—steam methane reforming—produces
India's dependency on imported crude oil. 10 kg carbon dioxide per Kg of hydrogen
gas produced.

Technology Absorption, Adaptation and Innovation


Efforts made towards technology absorption, adaptation & innovation aimed at product and reliability
improvement, cost reduction, product development and import substitution are as follows:

Mumbai Refinery Visakh Refinery


Æ Usage of HPCL R&D developed HP DEWA De- Æ Installation of UPTIME package for CCR net gas
emulsifier in crude tank, resulting in settling compressors to monitor the performance of the
time reduction, which has helped for sustaining compressors on a real-time basis.
crude throughput. Æ Modification of Lock Hopper Disengaging Drum
Æ Modification of continuous catalytic reforming vessel to avoid thermal cycling operation problem
(CCR)– Cyclemax Lock Hopper by installation of in CycleMax.
fluted pipe enabled to reduce the thermal cycling Æ As part of indigenisation, installation of HPCL R&D
of regen burn zone temperature profile. designed and licensed, Pressure Swing Absorber
Æ Implementation of co-solvent dosing facility in all (PSA) PLC system in Hydrogen Generation
SEUs has improved the Raffinate yield. Unit (HGU) of Diesel Hydro De-Sulphurisation
Æ CCR furnace burner tips’ replacement with (DHDS) unit.
indigenously designed burner tips helped to Æ NIU Hydrogen purification package commissioned
sustain feed rate. which removes CO/CO2 in hydrogen and improves
Æ Installation of “Total Chloride analyser” in lab the life of the Naphtha Isomerisation catalysts.
to analyse the total chloride in all petroleum Æ Additional coils were provided in convection
products and crude helped to predict the section of DHDS furnace, which increased the
asset integrity. heat transfer efficiency and furnace heat duty.
Æ HPCL R&D developed bio-nutrients “HP BioFeed” Æ A novel co-development of fresh catalyst for
used in ETP to improve COD/BOD in sequential Fluidised Catalytic Cracking Unit - 2 (FCCU) done
bio reactor. and implemented; this resulted in higher net-
Æ Deployment of online robotic sludge cleaning value realisation.
for improved performance of oil separators and
sludge handling.
Æ Procurement of advance safety device which has
two-way communication, live detection, person
fall detection, person still detection, SOS trigger
to enable faster emergency response.
Æ Implementation of online thermography with
inbuilt wireless sensors in electrical switchgear
panel providing temperatures of breaker, cable &
bus-bar compartments.

Sustainability Report 2022-23 79


Doing Business Responsibly

Water Management

Water holds significant value for both operational and non-operational needs within
HPCL. Recognising the significance of water as a life-sustaining resource and the
challenges presented by its scarcity, we are consistently dedicated to the adoption of
sustainable water management practices in all our operations.

Water is required in the process, cooling, firefighting quality parameters set by Minimum National
preparedness and domestic consumption, and Standards (MINAS) and is used as make-up in
therefore, all efforts are made to see that efficient cooling tower, fire water header and horticulture.
and judicious usage and management leads to Both refineries' discharges are monitored for
resource conservation by creating the least impact. quality parameters.

We are continuously learning and adopting newer We ensure that our withdrawal does not significantly
methods and technologies for water conservation impact water sources. During the reporting period,
and harvesting. Wherever water is used in the there was no significant impact on water bodies
processes, which is mainly in refineries, we strive due to discharge from our operations and no water-
to reduce its consumption through efficiency related incidents (operation interruptions/plant
enhancement practices. closures among others) with substantial impacts
on revenues.
We monitor our water footprint to strengthen our
water stewardship initiatives through the use of At Visakh Refinery, as part of the ongoing expansion
technology and methodologies, such as water- project (VRMP), an Integrated ETP is installed
efficient fixtures, avoiding water wastage, water wherein the treated effluent will be further treated in
reuse and recycling. For measurement, we use the RO DM plant and reused. The reject will be used
mechanical and electronic techniques (meters, as make-up for the seawater cooling tower.
water tank levels, etc.) and estimation methods.
We accord importance to rainwater harvesting At our Mumbai refinery, about 75% of effluent water
and strive to implement them in our operating is recycled back to process from ETP after primary,
locations, with the goal of expanding their reach into secondary and tertiary treatment. RO reject
neighbouring communities as well. water (25%) is used as make-up water for the fire
water system.
Our refineries and major marketing locations employ
ETP/STPs for recycling effluent. Our refineries have As part of augmenting green cover within premises,
effluent treatment plants consisting of physical, we focus on planting tree species, which are native
chemical biological and tertiary treatment facilities. to the location, have low water requirements and
The treated effluents from ETP meet the stipulated offer high carbon sequestration.

80 Hindustan Petroleum Corporation Limited


Water Withdrawal by Source
Parameter UoM 2022-23 2021-22
(i) Surface water KL 78,736 70,324
Surface water – Freshwater KL 26,412 26,072
Surface water – Other Water KL 52,324 44,252
(ii) Groundwater KL 6,23,706 6,51,063
Groundwater – Freshwater KL 5,71,286 5,94,144
Groundwater – Other Water KL 52,420 56,919
(iii) Third-party water KL 1,10,68,071 1,03,68,131
Third-party water – Freshwater KL 1,08,70,866 1,02,01,935
Third-party water – Other Water KL 197205 166196
(iv) Seawater/desalinated water KL 12,69,83,244 15,17,41,608
Seawater – Freshwater KL NA NA
Seawater - Other Water KL 12,69,83,244 15,17,41,608
Total volume of water withdrawal KL 138,753,757 162,831,126
(In kilolitres) (i + ii + iii + iv + v)
Total volume of water consumption KL 11,839,533 15,898,895
(In kilolitres)
Water intensity per rupee of turnover KL/` Crore 25.48 42.67
(Water consumed/turnover)
Water intensity per unit Refinery KL/MT Refinery 0.62 1.14
Throughput * Throughput

*Water consumption at our refineries constitutes about 87.5% of total water consumption in our refining and marketing operations.

Water Discharge by Destination


Destination UoM 2022-23
Seawater – Other Water KL 126,847,780
Sent to third parties – Other Water KL 4,038
Others – Other Water KL 62,406
Total water discharged KL 126,914,224

Water Withdrawal, Consumption and Discharge in Areas of Water Stress


While the major portion of our water consumption Business Unit Name of the Area
(about 87%) is attributable to our coastal refineries, Aviation Service Delhi, Bhuj, Jaipur
As of March 31, 2023, 24 marketing locations can Facilities
be classified under water-stressed areas as per CGD Facility Ahmedabad
the Central Ground Water Board (CGWB)’s block- LPG Plants Ajmer, Jind, Jodhpur, Kota, Loni
wise Ground Water Resources Assessment 2022 Lube Plants Chennai
recommended in the SEBI BRSR Questionnaire Pipeline Stations Ajmer, Awa, Bachau, Jaipur,
Guidance Document. We have also mapped the Pindwara, Salawas
location of our Refineries using the World Resources POL Depots/ Terminals Ajmer, Bharatpur, Cassimode,
Chennai, Indore, Jaipur,
Institute's Aqueduct Water Risk Atlas. Our Mumbai
Jalandhar, Jodhpur
refinery is in a low-medium water-stressed area,
whereas our Visakh Refinery is in a low water- Nature of operations: Receipt, Storage, Dispatch of
stressed area. Petroleum Products; Receipt, Storage, Blending and
Dispatch of Lubricants
The aggregated volumes of water withdrawal,
discharge and consumption at our sites in water-
stressed areas, as per Central Ground Water Board
(CGWB)’s block-wise Ground Water Resources
Assessment 2022, have been provided in the
table below. The water consumption at these
locations accounts for about 1.7% of our total
water consumption.

Sustainability Report 2022-23 81


Doing Business Responsibly

Water Withdrawal, Consumption and Discharge in Areas of Water Stress


Parameter UoM 2022-23 2021-22
Water Withdrawal by Source
(i) Surface water KL 0 0
(ii) Groundwater KL 67,023 60,541
(iii) Third-party water KL 135,603 120,824
(iv) Seawater/desalinated water KL 0 0
(v) Others KL 0 0
Total volume of water withdrawal (in kilo litres) KL 202,626 181,365
Total volume of water consumption (in kilo litres) KL 202,314 181,293
Water intensity per rupee of turnover (Water consumed/turnover) KL/` Crore 0.435 0.487
Water discharge by destination and level of treatment (in kilo litres)
(i) Into Surface water
- No treatment KL 0 0
- With treatment KL 0 0
(ii) Into Groundwater
- No treatment KL 0 0
- With treatment KL 0 0
(iii) Into Seawater
- No treatment KL 0 0
- With treatment KL 0 0
(iv) Sent to Third-parties
- No treatment KL 0 0
- With treatment KL 241 0
(v) Others*
- No treatment KL 0 0
- With treatment KL 71 72
Total water discharged (in kilo litres) KL 312 72

*Wastewater generated is properly treated and reused with provision of oil water separator system.

Approach to mitigate water risk Water Management Initiatives

Æ Identification of vulnerable locations to Æ Mumbai Refinery recycled 9,75,429 KL


water stress water during the year, saving equivalent
quantity of natural resources
Æ Measurement and monitoring of water
utilisation, feedback, corrective action Æ Our locations harvested 5,46,672 KL
rainwater through more than 390 rainwater
Æ Promoting reuse, recycling and
harvesting structures
recharging practices
Æ Installation of water-efficient fixtures at
Æ Awareness creation, capability building and
operating locations
stakeholder communication
Æ Reuse of water in processes

Æ Recycling of water through ETP, STPs and


reusing treated water

Æ Enhancement of employee awareness


through contact programmes, newsletters,
technical bulletins

82 Hindustan Petroleum Corporation Limited


Waste Management

We are committed to reduce the environmental impact through efficient material


and waste management practices, such as identification and segregation of waste,
seeking avenues for recycling and proper disposal as per applicable norms.

We continuously review our systems and processes EPR has been made applicable to the consumed
to take stock of the waste generated and devise lube oil plastic packages. Plastic packaging
methods to minimise waste generation in our recycling and safe disposal is undertaken as per
operations. Proper waste management is necessary the regulations. A system is in place for collecting
to prevent untoward effects on human and consumed lube oil packages’ plastic waste to meet
animal life and the environment. As a responsible the EPR through an external agency. For petchem
corporate, we have undertaken various applicable products, we have already applied online for
measures to minimise our impact on the biota. registration on centralised EPR portal of CPCB as
brand owner; this is under process.
Our operations generate both hazardous and non-
hazardous waste. The hazardous waste generated During the year, there were two ongoing cases
in our locations and refineries are disposed pertaining to environmental laws and regulations.
through MoEF&CC/CPCB registered recyclers or The details of these cases and corrective action
reprocessors as per the statutory requirement. taken are described on page no. 184 of our Annual
Systems are also in place to handle non-hazardous Report 2022-23 in the BRSR section.
waste. We comply with statutory norms and
regulations stated by MoEF&CC, CPCB and SPCB. This can be accessed at:

The processes in place for other materials are https://hindustanpetroleum.com/documents/pdf/


as follows: HPCL_Annual_Report_2022-23.pdf

Plastics: Lubricants are marketed in plastic During the year, there was one incident of release
containers and packets. A mechanism is in place of Silica Dust from a unit in Mumbai Refinery, for
to collect plastic waste from the market as part of which an amount of ` 10 Lakh was recovered by the
extended producer responsibility (EPR) through tie- state PCB from the Bank Guarantee provided by us
up with an authorised third party. to them.

E-waste: We do not sell products that may lead to A majority share (above 90% in 2022-23) of
the generation of e-waste. our products are fuels that are combusted by
consumers for energy. As such, these products are
Hazardous Waste (Used Oil): Through the seminar not reclaimable for reuse, recycling and disposal.
‘Business Opportunities in Used Oil - Transformation For lube packaging, we are aligning our value chain
by 2027’, we joined hands with the Petroleum Re- with the upcoming EPR requirements of including
Refiners Association of India (PRAI), in association recycled/reused input material.
with Rosefield Energy Tech during May 2022, for
bringing the stakeholders comprising of policy
makers, lubes manufacturers, re-refiners and
subject matter experts on environmental studies
and taxation to a common platform. Various senior
experts presented technical research papers and
industry perspectives in the used oil transformation.
This collaboration with the lube eco-system of the
country will help us fast-track the journey of this
entire sector towards a more sustainable future
through adoption of principles of circular economy.

Other Waste (Metallic Scrap): LPG cylinders, valve,


regulator (CVR) are decommissioned as per the
company procedures and treated as metallic scrap.
These and other metallic scrap are disposed by ⊲ Industry meet on "Hazardous Waste
selling to recyclers for recycling through MSTC. Management" by HPCL and CHT
Sustainability Report 2022-23 83
Doing Business Responsibly

Details of the Products and Packaging Reclaimed Products and Their Packaging
Reclaimed* at End of Life of Products (MT) Materials* (as percentage of products sold) (%)

4,406 70% 70%

2.97

Plastics (including packaging) Packaging (HDPE Drums / PPCP)


Hazardous Waste (Used Oil) Packaging (Multilayer Plastic)

*Data pertains to Lubricant related products

Details Related to Waste (In Operations)


Waste Recycled/ Reused/
Total Waste Generated (MT) Waste Disposed (MT)
Recovered (MT)
Parameter
2022-23 2021-22 2022-23 2021-22 2022-23 2021-22

Plastic Waste (A) 174.0 121.4 2.5 6.1 168.5 114.3

E-Waste (B) 5.2 3.4 0.4 0.5 4.0 1.5

Bio-medical Waste (C) 0.2 0.1 0.0 0.0 0.1 0.1

Construction and Demolition Waste (D) 8,254.6 190.4 55.3 113.6 8,190.4 66.2

Battery Waste (E) 19.3 11.2 0.3 0.2 17.6 11.0

Radioactive Waste (F) 0.0 0.0 0.0 0.0 0.0 0.0

Other Hazardous Waste (Oily Sludge, 10,685.0 3,206.0 8,094.2 1,092.4 2,268.4 2,052.1
Paint Sludge, Used Oil, Oily Cotton
Waste) (G)

Other Non-hazardous Waste (Metal 22,762.6 16,861.7 16,266.9 11,587.2 6,196.0 5,191.7
Scrap, Wood Waste, Garden Waste, Food
Waste, LPG Cylinder, Valve, Regulator
Scrap) (H)

Total (A+B+C+D+E+F+G) 41,900.9 20,394.4 24,419.7 12,800.0 16,844.8 7,437.0

Data for 2021-22 is being restated due to recalculation.

Waste Management Initiatives, Circularity Initiatives

Mumbai Refinery Visakh Refinery


Æ Ensured compliance in pollution parameters on Æ Ensured all measures to meet 100% compliance
stack emission, hazardous waste disposal and levels of ambient air quality, stack emissions and
effluent generation as per consent conditions effluent treatment

Æ Disposed of 1,361 MT of hazardous Æ Bio-remediation of 445 m3 of low oily sludge


waste to authorised recyclers and waste was undertaken
management facility
Æ Disposed 318.7 MT of hazardous waste materials
Æ Completed Bio-remediation of 2,500 m3 of oily
Æ As part of improving Bioreactor performance,
waste sludge
trials with HPCL R&D developed bacteria HP
Bioactiva started in ETP-1

84 Hindustan Petroleum Corporation Limited


Marketing
Æ Disposal of waste generated through SPCB- Æ Pilot Project for Recycled Plastic Tiles: Recycled
authorised common hazardous waste treatment, plastic tiles can prove to be a cost-effective,
storage and disposal facility (CHWTSDF) smart and advanced alternative to the traditional
concrete paver blocks. These tiles were made out
Æ Deployment of composting pits and organic waste
of 100% recycled plastic waste having superior
converter machines at various locations to convert
properties to be used in various applications.
organic waste to manure
This initiative aims at a solution to tackle
Æ Treatment of effluent and sewage through ETPs plastic pollution.
and STPs at our locations
Æ Use of Plastic Waste with Bitumen: Plastic
Æ Reuse of scrap material waste acts as a good binder of bitumen for road
construction. This initiative can help meet EPR
Æ Use of polybags for packed bitumen:
obligations by claiming plastic credits and provide
Conceptualisation and designing of polybags
solution to plastic pollution.
with special features for filling bitumen is a
cost-effective, environment-friendly, convenient Æ Launch of HP Enklo 68 Green: A new formulation
handling and logistics alternative to the traditional in the range of our flagship hydraulic oils, using
packing in MS drums, bulk packages. This 30% of re-refined base oils, meeting the IS:10522
initiative aims to facilitate improved logistics in standards. This promotes circular economy.
packaging and transportation of bitumen and
disposal of the polybags after use. The innovative
packaging dissolves into the bitumen on heating,
thereby eliminating the need of drums requiring
cutting and disposal after usage. This results
in elimination of plastic waste and material
conservation due to zero wastage.

Sustainability Report 2022-23 85


Manpower and Work Environment

A Workplace that
Inspires Growth
People Management
As a socially responsible organisation, we believe in creating a workplace that
fosters inclusivity and innovation. We deeply care about the growth of our
employees and constantly try to provide them with the resources needed to help
them achieve their full potential.

We place a strong focus on effective human We work with a vast network of vendors, including
capital management to ensure long-term success contractors, supplying agencies and suppliers of
in a rapidly evolving business landscape. The materials, equipment and products. The contract
entire spectrum of human capital management, workforce is engaged through contractors for
including talent acquisition and retention, employee non-core activities at our locations. HPCL has
development and growth, promotion of productivity a mechanism in place for implementation of
and performance, succession planning, leadership statutory compliance verification through periodical
development, and more, are being managed audits, inspections, site visits at different levels of
with our guiding principle of ‘enabling people hierarchies both internally and through external
performance’. agencies, grievance redressal mechanisms, portals,
meetings, induction programmes, consents to terms
We have embraced the principles of DEI (Diversity, and conditions of tenders and orders containing the
Equity, and Inclusion) to foster innovation, engage above conditions by the vendors/suppliers, etc.
employees, attract top talent, enhance reputation
and meet legal and societal expectations. These We lay great emphasis on continually engaging,
principles and practices make us more dynamic, enabling and empowering our stakeholders through
resilient and better equipped to navigate the a variety of interventions. We are committed to
challenges of a diverse and rapidly changing world. taking proactive steps for the contract workforce
and ensuring they are covered under the various
Our strong brand presence and resonance across social benefit schemes. We expect our business
India’s top institutions in different domains help us partners and contractors to treat their employees
attract quality talent. We adopt a fair, objective, with dignity and respect their human rights to
structured and reliable recruitment process that uphold the spirit of the Constitution of India and
helps identify and attract talented individuals with a other international standards.
passion to excel. Recruitment generally happens at
the entry-level. However, recruitment at the Middle We continue to provide greater flexibility,
Management and Senior Management levels is done personalised approaches and optimum working
from external sources as per the Corporation’s conditions to build a stimulating work environment.
requirement. These recruitments are restricted to Our workforce has an ideal mix of experience,
positions requiring specialised skills. HPCL recruits youthful energy, and an innovative mindset
100% of candidates from the local community (Local having multiple perspectives. This work culture
Community means India). has resulted in the development of committed,
dedicated and competent employees who serve
A focus on encouraging and achieving diversity in as the organisation’s backbone. By committing to
our recruitment processes helps us acquire talent a fair, transparent and inclusive work culture, we
from different backgrounds, gender, caste, and create a safe, smart and sustainable environment
origin, among others. We adhere to the Presidential for our employees and leverage technology and
Directives along with guidelines issued by the simplify policies and processes for improving
Government of India for reservation in services of their experiences.
persons falling under the category of SCs/STs/
OBCs/PwD/EWS. Our focus on people-orientation and enablement
has borne fruit in creating a pool of about 8,500
committed, dedicated and competent employees
who are the backbone of the organisation.

86 Hindustan Petroleum Corporation Limited


⊲ "Company of the Year" - "Excellence in Human Resource Management" Award 2022 by FIPI

Workforce Matrix for Employees and Workers


Male Female
Particulars Total
No. % No. %

Employees

Permanent 5,818 5,103 87.71 715 12.29

Other than permanent* 147 79 54.00 68 46.00

Total employees 5,965 5,182 86.87 783 13.13

Workers

Permanent 2,686 2,518 93.75 168 6.25

Other than permanent 38,848 37,947 97.80 901 2.20

Total workers 41,534 40,465 97.42 1,069 2.57

As on March 31, 2023


* Fixed-term research associates and project associates at HP Green R&D Centre

There has not been a significant fluctuation in number of contractual workers from 2022-23 vis-à-vis 2021-22
on account of various undergoing expansion projects.

Differently-abled Employees and Workers


Male Female
Particulars Total
No. % No. %

Differently-abled Employees – Permanent 97 86 88.6 11 11.34

Differently-abled Workers - Permanent 49 46 93.88 3 6.12

As on March 31, 2023

Sustainability Report 2022-23 87


Manpower and Work Environment

Workforce Gender Diversity


Diversity Indicator % Share*
Share of women in total workforce (as % of total workforce) 10.38%

Share of women in all management positions, including junior, middle and top management (as % of 12.29%
total management positions)
Share of women in junior management positions, i.e. first level of management (as % of total junior 16.09%
management positions)
Share of women in top management positions, i.e. maximum two levels away from the CEO or 2.6%
comparable positions (as % of total top management positions)
Share of women in management positions in revenue-generating functions (e.g. sales) as % of all such 9.7%
managers (i.e. excluding support functions such as HR, IT, Legal, etc.)
Share of women in STEM-related positions (as % of total STEM positions) (S-science, T-technology, 9.7%
E-engineering, M - mathematics)
* (As on March 31, 2023)

Employee Turnover Statistics


Total Employee Turnover (Numbers)
Employee Category <30 years 30-50 years >50 years Male Female

Senior Management - - 30 29 1
Middle Management - 17 97 104 10
Junior Management 115 44 35 164 30
Non-Management 28 5 407 420 20
Total 143 66 569 717 61

Total Turnover Rate*


Employee Category Male Female Total

Permanent Employees 5.72% 5.65% 5.71%


Permanent Workers 15.62% 11.30% 15.35%
Total 9.10% 6.76% 8.86%

* Total Employee Turnover includes employees leaving the organisation voluntarily or due to dismissal, termination, retirement or
death in service.

Voluntary Employee Turnover (Numbers)


Employee Category <30 years 30-50 years >50 years Male Female

Senior Management 1 1
Middle Management 16 12 22 6
Junior Management 113 41 3 128 29
Non-Management 26 4 25 54 1
Total 139 61 41 204 37

Voluntary Turnover Rate*


Employee Category Male Female Total

Permanent Employees 2.89% 4.96% 3.14%


Permanent Workers 2.01% 0.56% 1.92%
Total 2.59% 4.10% 2.74%

* Voluntary Employee Turnover includes employees leaving the organisation voluntarily i.e. early retiring, resigning employees.

88 Hindustan Petroleum Corporation Limited


As per the Guidance note for Business Responsibility Compensation
& Sustainability Reporting format, the turnover rates
All of our permanent employees are provided
for 2022-23 for the particular category are calculated
with compensation and benefits, which include
basis the following formula:
inter alia: work-related reimbursements and
Æ (No. of persons who have left the employment of location-based allowances, transfer benefits, leave
the entity in the fiscal year *100) / Average no. of policies (EL, CL, LHP, SSL, study leave, maternity,
persons employed in the category adoption, paternity, surrogacy, child care, CDO,
SCDO, festival holidays, special leaves) and other
Æ Average number of persons employed in a employee benefits like health and welfare measures,
category are calculated as (Persons employed promotions, idea sharing, performance appraisal,
in the category at the beginning of fiscal year + separation and post-retirement benefits, health
Persons employed in the category at the end of insurance, and accident insurance coverage.
fiscal year) / 2.
All our employees and workers are paid
more than minimum wages prescribed as per
national regulations.

Return to Work and Retention Rates of Permanent Employees and Workers that took
Parental Leave

Permanent Employees
Gender
Return to Retention
Work Rate Rate
Male 100.00% 100.00%

Female 100.00% 95%

Total 100.00% 98%

During the year, none of the permanent workers availed parental leave

Performance Management, Career Growth, Progression


We have a robust performance management system Aspirations for career and growth of our employees
for objective assessment, career progression and are monitored and managed through an annual
development of individuals based on the Balanced performance review and appraisal system wherein
Score Card Methodology. The performance timely performance evaluations and appraisals are
management system helps employees effectively provided by a feedback mechanism through an
work towards aligned organizational goals while online system comprising of goals and target setting
adhering to HPCL’s code of conduct and CDA rules. aligned with corporate objectives and periodical
We have established a culture in which individuals yearly reviews.
and groups take responsibility for the continuous
improvement of business processes and of their own During 2022-23, all our permanent management
skills and contributions. Towards achieving this aim, and non-management employees have undergone
we have implemented strong internal processes for performance and career development reviews.
managing the performance and aspirations of our
employees. The clarity in the process flow, periodic
review and feedback have enabled a transparent and
strong performance management system.
100%
Permanent management and non-management
employees have undergone performance and career
development reviews

Sustainability Report 2022-23 89


Manpower and Work Environment

Reward and Recognition


Our reward and recognition schemes are aimed at enhancing employee engagement and creating a more
positive overall workplace, leading to many benefits for the Company, including increased productivity
and retention.

Award Details
HPCL ICON-People Manager Æ Instituted to recognise the leaders who take responsibility for finding potential in
Award people and have the courage to develop that potential
Æ During 2022-23, 36 leaders were recognised as HP ICON-2022

HP Outstanding Achievers Æ Instituted to recognise outstanding achievements of officers in the Junior


Recognition Management category.
Æ Intended to identify and recognise officers who have lived and displayed HP FIRST
values, displayed extraordinary commitment, delivered extraordinary performance
and achieved outstanding results during a particular year, in line with the
corporation’s business interests.
Æ Themes - Cost Leadership, Business development/Revenue Maximisation,
Differentiated products and services, Reliability of Operations and Services, Project
Management and Infrastructure Development, Technology & Innovation, Improving
Internal processes, Safety & ESG (Environment, Social, and Governance), Leadership.
HP Gaurav Awards Æ To recognise outstanding efforts, sustained excellence in work, commitment,
adherence to safety measures and adherence to high standards of conduct in the
discharge of duties amongst the non-executive category of employees.
Æ During 2022-23, 78 employees were felicitated with the HP Gaurav Award.

Nurturing Talent
Leading Lights We have taken several initiatives to acquire and
retain top talent, while contributing towards nation
This is our quarterly magazine building through effective implementation of various
socio-economic development programmes.
for appreciating employees
who demonstrate key enabling Our employees drive progress, and we work
behaviours that represent role- incessantly to attract, motivate, develop and retain
the best talent in the industry. Our decades of
based behavioural competencies
experience in manpower management has guided
in its true spirit. The magazine us through to serve the evolving landscape with
also includes a special section on the talent required to sustain and flourish our
innovation, with an emphasis on business using our recruitment and capability
building interventions.
any innovative approach taken or
changes made towards delivering
Samavesh
an impact on the role.
We understand the anxieties, challenges and hurdles
During 2022-23, a pilot of this individuals face when joining a new organisation.
Samavesh is one of our flagship programmes
initiative was carried out for
designed to ensure a seamless shift for recruits into
Retail SBU covering six roles. HPCL culture, values and business familiarisation
Appreciation parameters specific through presentations and interactions with
to each role were developed and experienced internal and external subject experts.
assigned with weightages for This induction programme facilitates the new
assessments, basis which 22 final joinees with activities designed to enhance smooth
awardees were recognised in the transition from college to corporate and integrating
them with the ethos of the Corporation at a
magazine.
professional, personal and cultural level.

90 Hindustan Petroleum Corporation Limited


Samavesh Learning Agenda is aligned with role-based competency framework. Top and senior management
interact with the officers to influence the young minds positively for the Company’s and the country’s future.
All SBUs conduct sessions in this programme for business overview including field visits.

During the year, Samavesh programme was conducted for 116 new officers (CAs, Engineers, R&D Officers).

New Employee Hires


Age Group Wise Gender Wise
Employee Category
<30 years 30-50 years >50 years Male Female

Senior management 1 1

Middle management 2 1 1

Junior management 89 13 79 23

Non-management 168 1 165 4

Total 257 16 1 246 28

During the year, 21% of open positions were filled by internal candidates (internal hires). The average hiring
cost / Full time employee was ~ ` 1.22 Lakh/-

Employee Engagement
Employee engagement plays a pivotal role in fostering employee participation and
igniting their enthusiasm for contributing to the company’s achievements. Our goal is to
enhance their engagement among all demographic groups.

Employee engagement initiatives are conducted with the objective of creating an emotionally and
psychologically safe work environment across locations.

Initiative Details

HP Pariwar Æ This is a digital platform that continues to be extensively used to connect employees and families.

Æ As a part of this initiative, our employees/families participated in various programmes including


endurance events such as Trail Walker, Marathon and Walkathon challenges during the year.
Reboot@35+ Æ This initiative was undertaken for officers in the age group of 35 to 50 years.

Æ It focused on self-development in personal, professional, family and social domains, with


mindfulness as core theme.

Æ Walkathons/marathons for employees and families were conducted apart from other
engagement activities.

Æ A special workshop experience, Power of Mind, was curated by Reboot@35+ Committee for school-
going children on aspect of “Concentration” which is essential for children's growth and for learning
new skills, leading to self-confidence and positive self-esteem.
HP Sampark Æ This employee volunteer programme has been created to channel the volunteering spirit of the HP
Family to contribute time and skill and to nurture inclusiveness, societal good and the health of
the community.

Æ The programme, with the support of 58,269 HP Sampark volunteers, touched around 2.67 Lakh lives
since inception. Employee contributions in 2022-23 helped over 62,440 people in the community.
Youphoria Æ It is an engagement and development platform among seven oil and gas CPSEs under the aegis of
MOP&NG and Skill Development.

Æ The platform is targeted specifically at young executives under 35 years of age.

Æ It is aimed at developing, leveraging and channelising the creative energy of youth in the oil and
gas sector.

Æ During 2022-23, our employees participated in various events organised under this forum.

Sustainability Report 2022-23 91


Manpower and Work Environment

Initiative Details

Yuvantage Æ It is a youth engagement initiative “By the Youth, For the Youth and Of the Youth”, aimed at
the holistic development of young officers by enhancing their managerial, behavioural and
technical competencies.

Æ During the year, various programmes such as ‘Spark’, ‘Corporate Ranneeti’, ‘Foundation Day
Activities’ and ‘Anand’ were organised covering 3,115 participants across the country.
HumRahee Æ This is our virtual platform, focuses on interaction and gaining insights from one another in a
safe environment.

Æ ‘HumRahee’ sessions help participants learn about themselves and their well-being through
their interactions with each other and it gives them strength and courage to deal with their
own concerns.
Paramarsh Æ This 24x7 Employee Assistance Programme (EAP) was continued during the year to provide
confidential and professional support for personal and work-related issues that may affect their job
performance, health and well-being.

Æ During 2022-23, awareness sessions were conducted on ‘Avoiding Procrastination/Dual Career


Couples' for all employees and ‘Responding to Suicidal crisis’ for all HR leaders.
Swayam Æ It is an organisation-wide platform for Women officers, where they can network, engage, support
and guide/mentor one another for providing a sustainable impetus to the talent pool and leadership
pipeline of the organisation.
WIPS (Women in Æ An initiative made by the public sector for focusing on the issues related to advancement of
Public Sector) women through recognition of the changing profile of the work force in enterprises and providing
appropriate environment for their advancement and growth.

Capacity Building, Training & Development


Our dedication lies in cultivating individuals by establishing an environment that
nurtures learning and development and empowers us to construct a future-ready
organisation, focusing on advancing innovation, delivering business value, and propelling
thought leadership.

Multi-modal training methodologies such as Æ Embedding learning in the performance


webinars, experiential workshops, e-modules, management systems
certifications, simulations, action learning, drama-
Æ Pull and push methods to encourage learning
based workshops, and others, are undertaken with
extensive use of technology for progressive learning Æ Curating experts and learning content for
and building the capabilities of employees. engaging learning experience

We are focused on delivering learning interventions Æ Personalised recommendations


efficiently and equitably to employees through our Æ Curation of innovative and multi-model learning
Capability Building Department and leveraging programmes using new-age technologies
technology and utilising a variety of learning
methods to create superior learning experiences. Æ Multi-pronged communication approaches

Æ Reward and recognition for self-learners


The interventions are aimed at continual capability
building of employees for ensuring optimal To achieve the intended corporate objectives,
organisational performance. Trainings basis the various capability building initiatives are in progress:
need identification are regularly imparted at our
Management Development Institute, HPMDI - Nigdi. HP Possible: A flagship and unique 11-month
leadership development programme aimed at
This year, we focused on delivering learning building leadership competencies among future
interventions efficiently and equitably to employees leaders was launched in 2022-23. Under this
by leveraging technology and utilising variety of initiative, we have collaborated with the leading
learning methods for creating learning experiences. national academic institutions for assessing business
To address the evolving learning requirements and competencies and delivering learning experiences.
business imperatives for promoting self-directed The first batch of 50 senior leaders is currently
learning, the following approaches were adopted: undergoing the programme.

92 Hindustan Petroleum Corporation Limited


HP Possible mentee programme is a structured at the beginning of the programme. The executive
mentorship programme for the future leaders in coaches guide the mentors in conducting effective
HPCL. The programme consisted of project groups mentorship programmes.
of mentees (150 mentees) each assigned to a mentor

⊲ HP Possible - Leadership Development Programme

Vista - Agla Kadam: This is a role-based competencies and various technical competencies
competency framework, learning and development which are divided into domain knowledge and
curriculum model. Nearly 3,900 officers have technological advancement. During the year, the
been introduced to the model for enhancing the competency framework of all Marketing SBU’s were
technical and behavioural competencies of junior developed including the emerging business domains
management officers. The framework consists of like Renewables & Bio-Fuels, Petrochemicals,
07 organisational competencies, 03 behavioural Gas SBU.

Domain Financial
Knowledge Acumen (FA)
(DK)
Technological Digital
Advancements Agility
al
(TA)
hnic (DA)

ec
T

Thought Enabling
Or

Leadership Compliance
ganisational

(TL) (EC)
ioural

Altro- Logistics
hav

Centricity Efficiency
(AC) (LE)
Be

Personal Customer
Excellence Intimacy
(PE) (CI)
Energy
Sustainability
(ES)
Operational
Excellence
(OE)
3,900
Officers introduced to
Vista - Agla Kadam

Sustainability Report 2022-23 93


Manpower and Work Environment

Anand: This a holistic wellness initiative for HPCL Future Planning Programme: This is a pre-
officers. AmZ§X is derived from AmZ§X, [ZX«m Ed§ Xoh. retirement programme for management employees
The first programme under the initiative, Building intended to prepare them for life transition, under
Resilient Leaders, designed for millennials under the which we covered 154 retiring management
age of 35, was conducted for over 400 officers. The employees during the year.
intervention, spread over a period of six months,
includes online personal assessments, fortnightly Path of Light: This is a pre-retirement programme
webinars and one-to-one personal coaching through for our non-management employees intended
professional counsellors. to prepare them to deal with retirement from a
psychological, physical and financial perspective.
Project Utkarsh: This programme is aimed The path of light is conducted in two phases upon
at bringing about significant productivity completion of age of 55 (Virtual Programme)
improvements by fostering collaboration, building and 59 years (Classroom Based Programme) of
ownership and imparting knowledge and skills. the employee.
The project helps improve overall efficiency
by implementing a collaborative approach of During the year, 199 and 208 employees were
Total Quality Management, Total Productivity covered in Phase 1 and 2, respectively.
Management, Six Sigma & Participative
Management. The objective of the initiative is HP Academy/Learning Resources
to enable the employees to achieve excellence
consistently through the involvement of frontline We continued to leverage the e-learning platform,
workers and managers in a collaborative manner. HP Academy, with provision to administer, monitor
and track online training for employees, in 2022-
Leadership Excellence Programmes: This 23 towards training employees. We are upgrading
programme has been conceptualised for employees this platform for enhanced user experience by
of the middle management; aligned with HP PATH incorporating improved analytics, user interface and
competencies. Programmes for two batches were integrating it with Google Analytics and Zoom.
conducted in collaboration with IIMs.
The platform hosts over 1,970 hours of learning
Advanced Management Programmes: As part of content, including over 601 technical and
leadership development initiatives to develop the behavioural online courses and inspirational videos.
perspectives and skills necessary for managing
organisations effectively in a rapidly changing Global Digital libraries such as EBSCO and Magzter are
Environment, Senior Management Officers were available on the HP Academy platform, which hosts
nominated to attend three Advanced Management a collection of scientific journals, eBooks, business
Programmes conducted by ASCI-Hyderabad and magazines, audio books and a wide range of online
MDI-Gurgaon during the year. reading materials.

During 2022-23, an EBSCO Awareness Campaign


Other Training Interventions: and a Quiz was conducted for increasing the
awareness, functionality and reach of EBSCO
Æ Trainings from DPE(OTNS) & CBC were introduced
platform to motivate employees for self-paced
during the year in which participants for 17 different
learnings on various trending topics in area of
training were nominated through Online Training
energy, sustainability and business.
Nomination System (OTNS) of the DPE.

Æ Officials handling various functions in Projects, During the campaign, multiple awareness
Finance, Procurement and Corporate Strategy, sessions were conducted where 1,434 employees
and others, were nominated for training participated online. The campaign culminated with
programmes conducted by India’s premium a Quiz in which 246 employees participated. It
Institutes, and organised by Capacity Building also tripled the usage of EBSC database as well as
Commission Government of India. download of e-books.

Æ Nominated teams for Business Simulations, Additionally, more than 30 SCORM based e-learning
case Study Presentation and Management courses and 90 videos were added in HP Academy
Competitions organised by All India Management this year, including curated videos on HP Path
Association (AIMA). We were selected as the Competencies, videos on technical topics of various
champion in AIMA’s Pragati – Best Practices SBUs, Statutory Compliances and byte size videos
Competition aimed at celebrating achievements on topics such as RTI, among other.
of women from diverse backgrounds.

94 Hindustan Petroleum Corporation Limited


Total 11,141 training man-days imparted on HP Capability Building Learning Management
Academy in 2022-23. System (LMS)
As the next step in revolutionising the training

11,141 and development experience and democratising


learning, we have plans to acquire an intelligent,
globally proven, learner-centric system that will
Training man-days imparted on HP
Academy in 2022-23 present a concise structured development plan to all
learners in the Company, assess their competencies
as desired and encourage self-driven learning. This
Tie-ups with Academic Institutes will contribute to creating a pool of highly efficient
We have partnered with various Centres of employees enabling high performance, business
Excellence (CoE) and premier institutions to growth and sustainability.
promote industry academia collaboration and
enhance the technical and behavioural capabilities Other Capability Enhancement
of employees. During 2022-23, a total of 998 Opportunities
officers underwent training with the CoE/Premier
academic institutions. Study Leave: We facilitate employees for taking
up higher studies by providing the option of taking
With added focus on sustained growth of Chemical Study Leave to pursue a regular full-time course
engineers in HPCL in this dynamic competitive from reputed Institutes, subject to eligibility
scenario by partnering with IIT Bombay, two officers and approvals.
were nominated into the M. Tech Academic batch of
2022-24. Presently, there are four officers pursuing Education Growth Plan: The Education Growth Plan
the course sponsored by HPCL. has been framed with the objective of encouraging
self-development of employees and meeting the
During 2022-23, the average hours of trainings business requirement of enhanced competencies
imparted to male and female employees was 105 and to encourage a larger number of employees
and 92 person hours respectively. to enhance their capabilities through higher
education to enable the Corporation to succeed in a
The average amount spent per employee on training competitive environment.
and development through capability building
department was around ` 35,000/-.

Ecosystem-based Interventions
Intervention Description and Coverage

Project Prerana A programme for retail SBU sales officers to upskill them in both functional and behavioural areas of
(Retail SBU) the role by honing the competence in managing self, engaging dealers and driving business to our
network.
Benefitted: 77 officers
Project Prerana A customised programme aimed at upskilling the RE&A officers in both functional and behavioural
Realtics areas by way of network management, real estate management and processing various sales data.
(Retail SBU) Benefitted: 49 officers
Project Shrestha A year-long management development intervention for LPG plant managers aimed at equipping
(LPG SBU) them with cutting-edge managerial and techno-behavioural skills to help them improve their
efficiency and effectiveness.
Benefitted: 18 LPG Plant Managers
Project Daksh A year-long management development intervention for first-time location in-charges aimed at giving
(SOD SBU) them personalised attention to managerial development needs of terminal depot in charges.
Benefitted: 25 Location in Charges
Project Lakshya Programme aimed at developing the capabilities of all stakeholders of the Direct Sales ecosystem
(I&C SBU) including RMs, Sales Officers and Manager Marketing. It included Sales Coaching sessions,
Diagnostic Survey for understanding competency development needs, MDP on Achieving Sales
Excellence - B2B Key Account Management by SP Jain Global Institute
Coverage: 9 regions
Project Kshitij Programme aimed at developing the capabilities of all stakeholders of the Lubes sales ecosystem
(Lubes SBU) through internalising use of scientific tools like Sales Equation, ABC Analysis, Market Mapping and
Account Mapping as a way of working in the SBU.
Benefitted: Sales Profiling: 37 new officers; Behavioural Sales Programme: 23 new officers

Sustainability Report 2022-23 95


Manpower and Work Environment

Intervention Description and Coverage

Project Ekagra Programme aimed towards process standardisation in Pipeline Security & Safety Systems with
(Projects & Pipelines emphasis on uniformity, new tools to ease work, rewards and recognition, performance monitoring
SBU) and capability building of officers and stakeholders.
Benefitted: 40 Officers (Statutory Compliance and Legislations); 58 Officers (Growth Mindset); 58
Officers (Artificial Intelligence and Machine Learning)
Project Savrottam Programme aimed at providing structured techno-behavioural inputs to all the stakeholders of LPG
(LPG SBU) SBU such as Sales Officers, Regional Managers, Dealers and Distributors.
Coverage: 60 participants identified

Other Capability-building Initiatives


Intervention Description and Coverage

L&T Project Longitudinal programme on project management curated to meet the developmental needs
Management of the Project officers, being conducted in coordination with the L&T IPM. Aimed at providing
Certification exposure on best practices and contemporary research and tools that are being used in Project
Programme Management within Oil & Gas as well as other industries locally as well as globally and personalised
and individualised attention to the development needs of the Project Officers through Coaching,
Projects, etc.
Coverage: 25 officers
L&T Retail A developmental programme curated for Retail Engineers entailing the processes and associated
Engineering Project learning events from the “Conceptualisation” to the “Completion” stage of the Retail outlets and
Maintenance & Modernisation activities thereof and to enable them to develop skills in stress
management, negotiation and problem solving.
Progress: Training Design finalised; MS Excel Training provided to Retail Engineering Officers.
Design Thinking A Workshop for LPG SBU covering Sales Officers, Operations Officers, RMs and Plant Managers
Workshop under NWZ to come up with transformational ideas which would help the LPG Team excel in all
areas.
Coverage: 50 officers
HP POD A first-of-its-kind podcast medium that has engaging and insightful content, designed in-house
aimed towards driving purposeful development and engagement.
Progress: An in-house HP Pod Website has been developed which will be accessible on the HP Mini
App. Platform hosts 63 episodes, covering 15 new shows around three themes:
Æ Organisation-centric pods that emphasise on Industry Knowledge, business acumen, leadership
and Live interactions.
Æ Domain-specific pods that focus on technical and functional knowledge.
Æ Employee-empowering pods that drive engagement.

Initiatives for Other Stakeholders


Intervention Description and Coverage

Engagement of GAT With reference to the guidelines from the Ministry on engagement of apprentices, HPCL engages
/ TAT Graduate Apprentice Trainees (GAT) & Trade Apprentice Trainees (TAT) at various locations. The
engagement of GAT is governed by Board of Apprenticeship Training (BOAT) while engagement
of TAT is governed by guidelines laid down by Regional Directorates of Skill Development and
Entrepreneurship (RDSDE).
Coverage: HPCL engaged 514 GATs and 316 TATs to ensure timely engagement of apprentices under
Apprenticeship Act 1961.
Projects through HPCL offers internships to students of several institutions to undertake projects of short duration.
Summer Interns During 2022-23, the Internship process was further enhanced and over 500 internships were offered.
Project Surakshit An in-house designed training initiative focusing on the learning needs of security guards posted at
(SOD and LPG SBU) terminals/depots and LPG Plants across HPCL locations.
Under SOD SBU, it covers training security personnel regarding the latest technological surveillance
systems and other automation affecting their role and to develop interventions for enhancing their (1)
Work Efficiency (2) Capability Development (3) Welfare
Coverage: Pan India SOD Locations
Under LPG SBU it is aimed at training security guards in line with OISD 154 standard module 5.3.4;
ensuring uniformity of user experience across LPG Plants and to train security personnel regarding
their roles and responsibilities.
Coverage: Pilots conducted at Mysore and Ajmer LPG Plants

96 Hindustan Petroleum Corporation Limited


Industrial Harmony
We lay great emphasis on continually engaging, enabling and empowering our
stakeholders through a variety of interventions and have continued to enjoy excellent
employee relations during the year with no reported instance of industrial unrest at any
of our operating locations.

Æ Constructive meetings were regularly conducted Æ Under the aegis of Central Vigilance
with unions to ensure employees’ participation in Commission, our in-house faculties conducted
the decision-making process. training Programmes for IOs/POs on
Departmental Enquiries for various CPSEs/
Æ Effective grievance management systems,
Government Organisations.
fairness and an emphasis on transparency have
resulted in the alignment of unions and employees Æ Actions were taken to extend coverage to direct
with the corporation’s vision. and indirect stakeholders with medical insurance
coverage, ex-gratia compensation in case of
Æ In 2022-23, a new career development policy
untoward accidents, organising special medical
was signed with the unions representing non-
camps, among others, even post-pandemic.
management employees in the marketing division.

Æ Modifications in various clauses of the Certified Leaders' Training at V. V. Giri National


Standing Order of Mumbai Refinery were Labour Institute
certified by the Competent Authority after mutual
discussions with unions representing workmen. A week-long Leadership Development Programme
was organised in June 2022 for the office bearers
Æ Harmonious industrial relations have been of both trade unions of HPCL-Visakh Refinery along
sustained through continual and proactive with representatives from all India unions of HPCL at
engagement with the unions representing the V. V. Giri National Institute. The primary objective of
workmen across the Corporation. the training programme was to inform them about
Æ With a view to encouraging the engagement the new labour codes, role of unions in emerging
level of outsourced workers in the Corporation economic scenario, fostering work culture and
and encouraging meritorious children, the ‘Merit ethics, sharpening negotiation skills, organisational
Scholarship Scheme’ was introduced during building and managing change.
the financial year for the grant of one-time
scholarships to meritorious children of contract
workers who passed 10th/12th, or Diploma/
Degree.

⊲ Visit by C&MD to HPCL LPG Cavern project at Mangaluru

Sustainability Report 2022-23 97


Manpower and Work Environment

Freedom of Association & Collective Human Rights


Bargaining We are a signatory to the United Nations Global
We strongly uphold Freedom of Association and Compact (UNGC) supporting principles on Human
Collective Bargaining rights and place emphasis on Rights, labour standards, environment and anti-
building cordial and harmonious relations with our corruption. Our management accords these
Unions, whom we consider equal partners in our areas due importance to uphold these values and
progress. Fairness and emphasis on transparency implement compliance. Our robust grievance
coupled with effective grievance management mechanism has been created to safeguard these
system helps in alignment of Unions and employees values by allowing individuals for open and
with our vision. We have formal agreements with structured raising of concerns for their fair and
trade unions to deal with issues related to wage timely resolution.
revisions, productivity improvement, conditions
of employment, health and safety, training and We are committed to uphold the spirit of human
education and grievance redressal, among others. rights as outlined in the Constitution of India, various
Of our non-management employees, 84% are applicable statutes, guidelines, relevant laws,
members of unions. regulations and various applicable international
declarations and guidelines covering the relevant
Before implementing any initiatives that affect or aspects of human rights. HPCL ensures that it is not
are likely to impact employees represented by the complicit in human right abuses.
unions, we engage in constructive dialogue with
trade unions to understand their perspectives and We encourage our employees and stakeholders
addressed their concerns. (including our business and supply chain partners)
to adopt, promote and respect the elements of
With regard to any operational change affecting human rights which include inter alia forced labour,
the workmen, we also comply with the relevant child labour, discrimination, equal remuneration,
provisions of Industrial Disputes Act, 1947, human trafficking, collective bargaining among
wherever warranted. others within their operations and their supply
chains by adhering to all applicable laws and
We lay great emphasis on continually engaging,
international principles on human rights.
enabling and empowering our stakeholders
through a variety of interventions. We also fulfil all Our suppliers have to abide by various terms
statutory requirements regulating the payment of and conditions of the contracts. The general
wages, measures related to health, welfare, safety, terms and conditions of our procurement tenders
conditions of work, and more, of our contractual/ include compliances to various labour laws
outsourced workmen at our locations. also addressing topics on human rights like the
abolition of child labour, labour law compliances,
Before implementation of any operational change,
welfare & ethical behaviour in the conduct of
we inform the employees about the change
business, safe and healthy working conditions,
through conferences, meetings, mails and intranet
environmental preservation etc. for workers
communication channels and ensure minimum three
engaged by contractors along with requirements
weeks period before implementing the change.
of signing agreements during bid submission. We
strictly implement model codes for labour welfare
stipulated in Laws and Regulations by respective
regulatory bodies for compliance. Due diligence
on these matters is carried out through periodic
internal audits conducted by HR officers at various
locations. Further, statutory agencies e.g. labour
officer also carry out audits of locations to check
adherence to labour laws by contractors.

98 Hindustan Petroleum Corporation Limited


Diversity and Equal Opportunity
Our value system ‘HP First’ calibrates the behaviour and perform. We have fair and transparent policies
of our employees as well as their professional laid down to protect the interests of our employees.
pursuits and engagements. These values are
outlined based on principles of which Equal A focus on encouraging and achieving diversity
Opportunity, Workforce Diversity and Inclusion are in our recruitment processes helps us acquire
an important constituent. talent across Indian geographies from different
backgrounds, gender, caste, origin, among others.
HPCL is committed to comply with the provisions Irrespective of the varied cultural backgrounds,
of the Rights of Persons with Disabilities (RPwD) all newly recruited employees are treated equally
Act, 2016. Accordingly, HPCL has adopted an Equal and given equal opportunities to learn, grow and
Opportunity policy approved by Management perform. We have fair and transparent policies laid
which is displayed in employee portal to promote down to protect the interests of our employees.
workplace culture based on fair practices to
safeguard the rights of persons with disabilities to We are an equal opportunity employer and practice
be treated with dignity, respect and equal terms. zero tolerance towards any kind of discrimination on
The scope of the policy applies to current and the basis of caste, religion, disability, gender, sexual
prospective employees of HPCL. The policy is orientation, status, race, colour, ancestry, marital
available on Company’s Internal Portal. status, political opinion, national extraction, social
origin, or affiliation with a political, religious or union
We adopt a fair, objective, structured and reliable organisation or majority/minority group or other
recruitment process that helps identify and attract factors and have strict mechanisms to deal with
talented individuals with a passion to excel. Our such cases.
offices are accessible to differently abled visitors as
per the requirements of the Rights of Persons with To support diversity and promote inclusive growth,
Disabilities Act, 2016. a host of engagement activities are taken up
throughout the year. Each year, special learning
We conduct special recruitment drives to identify initiatives are undertaken for the growth and
differently abled candidates for potential roles development for SC/ST/OBC employees.
across the organisation. Irrespective of the varied
cultural backgrounds, all new incumbents are treated There were no incidents of discrimination during the
equally and given equal opportunities to learn, grow reporting year.

Diversity of Employees (As on 31.03.2023)


Age group-wise Gender-wise
Category
<30 years 30-50 years >50 years Male Female
Employees 20.6% 42.3% 37.1% 89.6% 10.4%

Ratio of the Basic Salary, Remuneration of Women to Men for each Employee Category,
by significant locations of operation

Employee Category Basic Salary Remuneration


Senior Management 1.02 0.91
Middle Management 0.95 0.92
Junior Management 0.95 0.91
Non-management 1.45 1.22

Note:
Æ Basic salary consists of basic pay and dearness allowance.
Æ Remuneration includes perquisites and allowances along with basic pay and dearness allowances. The perquisites depend on
the employee's grade and the allowances depend on the nature and location of work for individual employees.
Æ Within the same seniority and same grade, the ratio of the remuneration of women to men is 1:1. The difference in the ratio of
remuneration of women to men are on account of number of male employees versus female employees and varying seniority.
Æ Significant location of operation of HPCL is India.

Sustainability Report 2022-23 99


Manpower and Work Environment

At HPCL, we submit annual Communication We have a mechanism in place for implementation


on Progress for adherence to Human Rights of statutory compliance verification, which forms a
principles of the United Nations Global Compact part of various modes of engagement like periodical
and ensure inclusion of labour laws addressing audits, inspections, site visits at different levels of
elements of Human Rights requirements in hierarchies both internally and through external
procurement contracts. agencies, grievance redressal mechanisms, portals,
meetings, induction programmes, consents to terms
In line with our commitment to sound manpower and conditions of tenders and orders containing the
management practices, we ensure that no person above conditions by the vendors, suppliers, etc.
below the age of eighteen years is employed by
the organisation and forced or compulsory labour Various initiatives and campaigns focused at
is prohibited in all our units. We are committed to enhancing compliance awareness and training on
ensuring that no instance of child or forced labour elements of human rights, POSH to the officers and
occurs in any of our operations and establishments. stakeholders are undertaken from time to time.
We prohibit associated vendors, contractors and To inculcate appropriate workplace behaviour
suppliers from engaging in child and/or forced and promote gender sensitisation, a number of
labour and human trafficking. online POSH workshops were organised across the
Corporation during 2022-23.

100 Hindustan Petroleum Corporation Limited


Statutory Compliance
Fortnight
We celebrate Statutory
Compliance Fortnight every year
to recognise and honour the
enormous and toiling efforts put
in by the workers and disseminate
awareness among them of their
rights. This initiative follows a
multi-dimensional approach
of Education (Compliance
Workshops, Flyers & Posters,
Knowledge Bytes, Anubruti
Programme); Engagement
(Compliance Quizzes,
Health & Well-Being session;
Interactions with Statutory
Authorities and Recreational
Activities) and Empowerment
(Prerna - Economic and Social
Empowerment of workers
and Nirvahan - Facilitation of
Compliance Audits).

Official Language Implementation


Æ Usage of Hindi is ensured by us in our business Mumbai-based PSUs in the field of Official
by motivating the employees through persuasion, Language Implementation.
incentive and harmony.
Æ HPCL has trained the officials of different PSUs
Æ Hindi is being promoted by utilising various by conducting various programmes such as Hindi
facilities available in the field of information and Translation, Promotion of Hindi and Regional
technology including video conferencing. Language, and others.

Æ To promote the linguistic talent of the employees, Æ During 2022-23, we were conferred with
awareness about Hindi is created in the offices ‘Petroleum Rajbhasha Shield – First Prize’ for
through on-line Hindi competition, Hindi implementation of Official Language for the year
fortnight, official language conferences and Hindi 2021-22 by MOP&NG. This award is given for
workshops, among others. the best performance in the field of OLI (Official
Language Implementation) among oil PSUs.
Æ We are coordinating Town Official Language
Implementation Committee (TOLIC) of Mumbai Æ We maintained our record in the entire oil
based PSUs since 1983, thereby guiding 65 industry by receiving 57 Rajbhasha awards from
Government of India and other agencies.
Sustainability Report 2022-23 101
Health and Safety at HPCL

Our Commitment to
a Secure Environment
Safety Management
Safety is at the core of facilitating enhanced workforce productivity, which
culminates in improved operational efficiencies. Moreover, we are dedicated
towards building a safety-centric mindset in our workforce as the success of
our management systems and the capacity building programmes hinges on our
employees translating this mindset into actions in their daily operational activities.

We ensure the best Health, Safety, and Environment overlooked or compromised", guides us toward our
(HSE) and sustainability practices across all commitment to "zero accident."
spheres of business activities to achieve the highest
standards in the area of HSE and sustainability. To achieve the goal of ‘zero accidents’, stringent
We have been making continuous improvements HSE management systems have been put in place
in HSE management systems and procedures with across all locations to strengthen HSE governance
the adoption of new technologies, upgradation of and compliance through surveillance audits and
infrastructure, benchmarking of existing practices benchmarking. Risk management systems are in
and regular surveillance audits. place to identify potential risks and take protective
measures to minimise incidents. We strive for
We provide a safe workplace to all our employees continuous learning and upgrades our systems by
and contract workforce, safety to the communities leveraging information technology.
wherever it operates and all our stakeholders.
We have rigorous health and safety policies and We implement best industry practices, industry
procedures in place to identify and minimise safety regulations, technologies, tools, materials, and more
risks related to our plants, operations and processes. to ensure safety in all facets of operations across
all locations and construction sites. For that, the
We have well-defined and structured health and governance practices of the safety systems and
safety policies and procedures in place to categorise procedures of the critical processes are regularly
and reduce safety risks associated with the monitored. At major project sites, dedicated teams
Company's plants, operations and processes. Our monitor the safety aspects of construction. Well-
Safety Policy, which states that "no work, service, established emergency response systems and crisis
or activity is so important or urgent that safety be management plans are available to manage any
untoward incidents at any operating location.

⊲ HPCL organized a “Knowledge Sharing Workshop on Petroleum Refineries” at Visakhapatnam in


association with PNGRB, aimed at bolstering safety
102 Hindustan Petroleum Corporation Limited
Our Refineries are committed to prioritising The various measures include interlocking of various
workplace safety, health and the environment in all equipment and alarm systems in the terminal/
aspects of their operations. The Vulnerability Index depot premises, SOP based hands-on training for all
(VI) for job safety monitoring has been implemented operating staff, training on safe driving for tank truck
in refineries in 2022-23. Vulnerability Index (VI) drivers, monitoring of tank truck movement through
implementation helps in identifying potential safety a vehicle tracking system, and others.
risks and hazards in operations, enabling proactive
measures to mitigate those risks and ensuring a
safer workplace. Mumbai Refinery has achieved its
Safety Stewardship
best-ever safety performance, with 35.6 Million man- Standard Safety Procedures and practices have been
hours of safe operation as of March 31, 2023. implemented in all aspects of daily operations. Some
of the important safety systems and procedures we

35.6 Million
have adopted are:

Accreditation: Our major manufacturing


Safe man-hours installations are certified by Environment and Safety
Best-ever safety record at management systems with accreditations such as
Mumbai Refinery ISO 14001, OSHAS 18001.

Inherently Safety design: Inherent safety by


We have a management system for occupational
design is adopted in facility design, process units,
health and safety across all our operations including
construction as per international and national codes
refineries, plants, facilities and other locations.
and standards, in all installations.
The system covers all employees, workers and
nearby communities. The effectiveness of safety Fire protection facilities: All installations are
management system and the root cause for the equipped with fire protection facilities meeting
occurrence of an incident are reviewed at plant-level OISD standards and having designated/qualified
and Apex safety committees. safety officers to take care of safety systems.
Plants, equipment, machinery including fire-fighting
We have Health, Safety and Environment (HSE)
facilities are regularly checked for functionality,
departments at all levels, beginning with the
proper engineering controls are established.
headquarters, which include Corporate, Marketing
and SBU levels as well as Refineries, Zonal Offices. Safety/Live Fire Simulation Trainings: All
They are also at the operating level that includes employees and contract workmen undergo safety
all locations across the country. They monitor and induction and regular trainings on fire and safety
assess the safety mechanisms through regular covering topics. Job-specific safety training is
audits, raise awareness among stakeholders imparted as per OISD Standards No. 154 - the
and work with government officials on relevant safety aspects of functional training periodically.
issues and amendments as per the requirements. Live fire simulation training is imparted to officers,
Operational/ product safety-related trainings and employees, contract workmen and security staff on
awareness and stakeholder engagement exercises various prototype facilities to train in various live fire
are regularly undertaken. scenario to enhance emergency preparedness.

The safety culture is accorded priority by the top Uniform Safety Operating Procedures (SOP) and
management and driven through HSE department standards: Latest guidelines have been implemented
and safety committees. It focusses on design to bring in uniformity in the standard operation
and enforcement of safety rules and procedures, procedures (SOP) in all SBUs, SOPs are regularly
conducting safe operations, ensuring statutory reviewed for updation.
compliance, being vigilant and prepared for
emergencies, awareness creation and progress Safety Trainings, PPE Training and Usage: We
review on policy compliance. Our top management continue to develop new training programmes based
periodically reviews progress on compliance of on the identified training and learning needs of the
various statutory audits and time-bound action employees. We take feedback from the ongoing
plans for redressal of the safety observations. programmes and incorporate the same to improve
the subsequent programmes. Mandatory usage of
We have taken multipronged actions to enhance PPEs based on hazard of the activity and training on
safety in all facets of operations, i.e. operations their use is ensured for protection of all personnel.
within terminals/depots, transportation and
unloading at other terminals/depots/retail outlets.

Sustainability Report 2022-23 103


Health and Safety at HPCL

Training Man–days by Capability-building Department in 2022-23


Health
Gender Category
and Safety
Male Employees (Management + Non-management) 3,585

Female Employees (Management + Non-management) 369

Total Employees (Management + Non-management) 3,954

Trainings Man-days by Refineries and Marketing Locations in 2022-23


Health and
Gender Category
Safety
Male Employees (Management + Non-Management) 15,845

Contractual Workforce 90,346

Transport Workforce 59,217

Female Employees (Management + Non-Management) 770

Contractual Workforce 3,149

Total All categories 1,69,327

Work Permit System, Job Safety Analysis, The committee meetings are conducted quarterly,
Execution of High-Risk jobs: A detailed and and all the safety aspects of the location are
exhaustive work permit system to carry out hot reviewed to ensure that the Corporation's HSE
and cold jobs has been devised in line with OISD- policies and the regulations are followed leading
STD-105 requirements. Before commencement of all to a healthy and safe work environment. The
jobs, their occupational risks are evaluated through committees solicit feedback from the workforce,
Job Safety Analysis (JSA). Special precautions, discuss HSE issues pertaining to the location and
as recommended by a multifunction team, are propose solutions for further strengthening safety
taken before executing high risk jobs and contract sustainability through the participatory management
workmen/supervisors are advised about the dos and process. While the goal is to learn from experience
don’ts on specific job. and case studies, the committees also identify
specific training needs of employees and locations.
Risk Analysis and Emergency Preparedness &
Disaster Management Plan (ERDMP): Quantitative Asset Integrity: Preventive, predictive maintenance
Risk Analysis (QRA) is carried out periodically as and residual life analysis of equipment is carried
per MSIHC Rules, 1989, at all locations. Emergency out to avoid the failure of equipment, especially the
response and Disaster Management plan is designed rotating equipment and subsequent emergencies.
and implemented as per PNGRB ERDMP regulations
2010, which are certified by PNGRB-approved third Management of Change: Any infrastructural and
party and the Board and is updated periodically. technical modification or changes are implemented
Onsite and offsite mock drills are conducted at through structured management of change system
all locations as per PNGRB regulations to make to prevent the incident.
employees aware of their roles, responsibilities, to
Contractor Safety: Special safety requirements
assess their alertness during an emergency and
are part of tender conditions while awarding the
to see the effective working of the firefighting
contract. It is ensured that contractor personnel
equipment and facilities.
are trained in the work practices necessary to
Safety Committees: According to the Factories Act perform their job safely. Contractors are required to
of 1948, safety committees exist in the refineries provide and maintain equipment, tools, machinery
and all marketing locations to encourage proactive to minimise the risk of accident or injury to workers.
participation and involvement of the workforce Contract personnel are made aware of fire,
in HSE matters, with equal representation of explosion or toxic release hazards related to their
management and non-management employees for job and assembly points as per provisions of the
implementation of best practices at the workplace emergency preparedness plan and are provided
through process of engagement and consultation. with a contractor safety manual. Such workers
are given training in Hindi and their local/own
language and are required to participate in tool-

104 Hindustan Petroleum Corporation Limited


box meetings, pre-shutdown briefing, and others. Review by Management: Safety performance,
We also carry out safety training certification to OISD and Internal Audit, recommendations,
contractor supervisors. their compliance status and incident analysis are
periodically reviewed by Senior Management and
Analysis of Incidents: All incidents, including also reported to CFD and Board.
near-miss, are recorded. Critical incidents are
analysed to prevent recurrence. The findings
of recommendations are presented and Work-related Hazard Identification and
reviewed at safety committee meetings for Risk Assessments
timely implementation. The process we use to identify work-related hazards
and assess risk are as follows:
All major incidents are reviewed by a committee
formed by members from outside the location Æ All employees undergo safety induction training
for identifying the root cause and providing covering occupational hazards of workplace, risk
recommendations to prevent recurrence of the assessment and mitigation measures and usage
same. Based on the root cause analysis, suitable of PPE.
disciplinary actions are also taken for violations. All
major incidents along with root cause analysis and Æ SOPs are followed for all routine operations. All
compliance to the recommendations are reviewed non-routine jobs are systematically assessed for
and monitored at SBU/ CFD and Board Level. work-related hazards and mitigation measures
These are also informed to Petroleum and Natural are taken through work permit system, job safety
Gas Regulatory Board (PNGRB). Learnings are analysis and management of change. Industry
shared within the SBU and with other SBUs as well. standards are followed for all SOPs.
Compendium of learning from incidents are released Æ Review of safety management system through
by HSE department to all SBUs. safety audits, surprise inspections and board-
level review of audit recommendation and
Apart from the above, Multi-Disciplinary
implementation is conducted.
Safety Audits, External Safety Audits by OISD,
OH&S Audits by third parties are conducted Æ Investigations are done for injuries, illnesses,
at all the locations for checking the health incidents and near misses to determine the
and safety practices and working conditions. underlying causes and safety & health programme
Recommendations of the OH&S audits are reviewed shortcomings. Learnings from incidents are
at zonal, SBU and HSE – HQO level and compliance shared with all employees to prevent recurrence
is monitored. of such incidents.

A quarterly report on safety audit recommendation


status is submitted to OISD.

Audits and Inspections: Internal Safety Audit


(once a year), External Safety Audits by OISD
and T4S audit by PNGRB approved third
parties are conducted for all locations and their
recommendations are compiled on priority,
status updated on quarterly basis and are
critically reviewed by each SBU, HSE department,
Committee of Functional Directors and Board.
At marketing locations, surveillance safety audits
are carried out to oversee Safety management
system implementation.

Daily and Weekly Safety Incident Report: The


Safety in-charges send daily and weekly safety
incident report to the senior management to apprise
the status of safety features, incidents and safety
equipment of the location.

Sustainability Report 2022-23 105


Health and Safety at HPCL

Æ Emergency preparedness and disaster that meet the highest standards of emergency
management plans are prepared, and drills preparedness. As part of the management review
are conducted periodically to meet any kind and continuous improvement process, training
of emergencies. programmes and refresher courses for awareness,
as well as compliance audits, are implemented.
Æ Occupational risks in all jobs are evaluated in a
systematic way called Job Safety Analysis (JSA) At our refineries, process safety risks are assessed
before commencement of the job. The risks on regular basis by the concerned risk champion and
identified in JSA are addressed to minimise risks risk owner. The status of the risk is reviewed at SBU
to as low as practicable and acceptable levels level. The status of critical risks are updated to the
by employing engineering and administrative Board level. Approach towards Tier-3 and -4 leading
methods and using suitable Personal Protective metrics are closely monitored, and performance is
Equipment (PPE) as a last line of defence. highlighted at SBU level on a monthly basis.
Æ A detailed and exhaustive work permit system to
Æ With the objective of averting Loss of Primary
carry out hot and cold jobs has been devised in
Containment (LOPC) type of events, the integrity
line with OISD-STD-105 requirements.
of PRVs is tracked for testing and healthiness.
Æ All our plants and offices are assessed on health RCFA of SIS events are arrived and presented to
and safety and working conditions by HPCL Management for approval and execution.
officers or statutory authorities or third parties.
Æ The operating envelop are tracked through
the historian-enabled portal and deviations
Processes for Reporting the Work-related are escalated at the decision-making level for
Hazards and their Mitigation due closures.
Workers and management participate in safety Æ The management system effectiveness is ensured
committees at all operating locations to report and by decentralisation approach through Unit Area
participate in process of managing work-related Team (UATs), which are empowered to take
hazards for devising methods and strengthening appropriate decisions at the right time. Also, this
processes to eliminate them. Safety committees are is steered by a separate dedicated safety vertical
in operation as per requirements of the Factories to keep a watch and ensure compliance.
Act of 1948 and best practices are implemented at
the workplace in consultation with workers. Besides, Æ The capability building department develops
there are safety suggestion registers, near-miss an annual training calendar for skill-based or
incident reporting and online incident reporting behavioural training. Contractor training is
systems in place to help workers report and remove imparted as part of access control and are issued
workplace hazards. safety card with one year validity.

Æ An approved MOC procedure is also in place


Process Safety and all the process or technological changes
are captured, treated and tracked. Permit to
Process safety is a disciplined framework that
work is an online system for issuing, receiving
focuses on major hazards that may have an impact
and monitoring of the activities carried out
on safety, cause environmental damage, or result in
in refineries.
business losses. It is concerned with the prevention
and control of events that may result in the release We have cardinal rules for process safety and other
of hazardous materials and energy. It is based on streams like Static, Electrical, Rotary, and others.
good design principles, as well as engineering, We also have Life Saving rules for Occupational
operating and maintenance practices. Safety, clearly internalised to effect consistent
performance regarding leadership, risk awareness
Process Safety Management (PSM) is embedded and employee development.
in the Corporation's safety and environmental
policies. Our stakeholders are involved in well- As part of zero-incident target, pro-active safety
established provisions for preventing/minimising is being accultured by rolling out a novel concept
the consequences of a loss of primary containment called Vulnerability Index. As of now Vulnerability
(catastrophic releases of toxic, flammable, or Index is being practiced for all the Maintenance jobs
explosive chemicals), ongoing maintenance of and shall be implemented in phase wise at all the
sound operating systems, practices and procedures Marketing locations.
equipped with multi-layered protection barriers

106 Hindustan Petroleum Corporation Limited


Safety in Transportation
We are committed to preventing road accidents certified fitness certificates, PESO approval and
to ensure health and safety in transportation and Pollution under Control certificate before the
handling of materials and products. trucks are loaded. Regular checks are also carried
out to ensure road fitness of the vehicles.
Our aim is to reduce the number and frequency of
transport-related accidents among our employees Æ TT crew, working at locations, are facilitated
and contractual partners. To this end, we have with health camps and guided on health issues.
integrated technologies that augment transport Training Camps for tank-truck fleet are also
safety and ensure that our people are adequately organised in collaboration with leading Original
trained in understanding, responding and mitigating Equipment Manufacturers (OEMs). Moreover, the
transport-related safety risks, through preventive best drivers are awarded.
measures, maintenance of vehicles and behaviour- Æ Vehicle tracking system (VTS) has been
based road safety interventions. implemented for monitoring of truck movements,
and corrective actions on violations as per
Æ To promote secure and safe driving habits, safety
Transport Disciplines Guidelines are taken.
guidelines, trainings and awareness initiatives,
such as Sadak Suraksha and HP-Safety on Wheels During the year, 59,217 man-days of technical
(SOW), are carried out on a regular basis for our and behavioural trainings were imparted to
transporters and their crew. transport workforce.

Æ Drivers of the vehicles also possess special


endorsement to carry hazardous goods from
RTOs after detailed trainings as per CMV Rule 59,217
9. Age limit and fitness criteria is included for Man-days of technical and
selection of Tank Trucks used for transporting behavioural trainings imparted to
products. During induction of these vehicles transport workforce
under contract and during the pendency of the
contract, it is ensured that they are having RTO

⊲ Safety training for transport crew in progress

Sustainability Report 2022-23 107


Health and Safety at HPCL

Safety Highlights
Æ Mumbai Refinery achieved its best-ever safety refineries to create a virtual plant environment
performance, with 35.6 Million man-hours of safe where employees can undertake training and
operation as of March 31, 2023. equipment operations safely before working in the
actual plant.
Æ The VI for job safety monitoring implemented in
refineries in 2022-23. Æ Several health and safety campaigns were
undertaken during the year. Among these, over
Æ To enhance safety in operations at terminals,
1,043 Sadak Suraksha camps were organised,
depots and retail outlets, various steps, such
covering both technical and behavioural aspects
as interlocking of various equipment and alarm
of driving on public roads for LPG transporters
systems in the terminal/depot premises, SOP-
and crew.
based hands-on training for all operating staff,
training on safe driving for tank truck drivers, Æ To ensure compliance with SOPs and consistent
monitoring of tank truck movement through a service standards, video analytics of forecourt
vehicle tracking system, etc, were taken. operations with the help of new-age technologies
have already been implemented at select outlets.
Æ During 2022-23, four locations were added
The technology platform has been further
as SMART terminals, resulting in enhanced
extended to include safety aspects of retail outlet
operational & cost efficiencies and safety and
operations as well. The data management of over
stakeholder convenience. Currently, we have 64
11,000 retail outlets has been integrated into the
SMART terminals in our network.
video analytics platform.
Æ Video analytics of forecourt operations have been
Æ Robust control and monitoring systems with strict
further extended to include safety aspects of
adherence to SOPs ensured safe operations and
retail outlet operations.
optimum inventory at operating locations.
Æ AR/VR-based training and simulation facilities
have been installed at Mumbai and Visakh

Safety Performance
Safety Incident/Number Category 2022-23 Remarks

Lost Time Injury Frequency Rate Employees 0.163 Æ Driving practices


(per one million-person hours worked) (Management + Non-management)
Æ SOP
Workers (Contractual) 0.087
Æ Construction
Total Recordable Injury Frequency Rate Employees 0.1628
(TRIFR - per one million-person hours (Management + Non-management)
worked) Workers (Contractual) 0.1193

Total recordable work-related injuries Employees 2


(Management + Non-management)
Workers (Contractual) 11

No. of fatalities Employees 0


(Management + Non-management)
Workers (Contractual) 4

High consequence work-related injury or Employees 0


ill-health (excluding fatalities) (Management + Non-management)
Workers (Contractual) 1

Number of hours worked (Million Hours) Employees 12.32


(Management + Non-management)
Workers (Contractual) 92.79

108 Hindustan Petroleum Corporation Limited


Hale and Hearty HPCL
The occupational health and well-being of all industrial hygiene surveys and impart first aid &
employees is our key priority. We undertake various occupational health training to the employees.
initiatives on a regular basis to ensure preventive
and curative health services for employees and The OHCs also have tie-ups with nearby hospitals for
all stakeholders. managing medical emergencies and providing best
quality treatment to all employee and workers.
For preventive health measures, all employees
undergo regular Periodic Medical Examinations
Marketing Locations
(PME) and the results are analysed to provide
targeted interventions from qualified doctors. To At all major locations, Company Designated
ensure the best accessibility of health services, Physician (CDP) visits regularly and provides
designated physicians are provided at major necessary medical assistance as required. Primary
locations, while smaller locations have tie-ups with medical treatment is provided to all employees,
local hospitals. workers for common illnesses like fever, cold, cough,
skin problems, among others. Health reviews,
We organise several health education programmes, medical checkups and medical prescriptions are also
awareness sessions and diagnostic camps for provided by the CDPs for contract workmen and TT
employees, their families and other stakeholders. Crew on need basis.
Sports activities and marathons were regularly
conducted for improved physical strength, reduced Moreover, first-aid boxes and are available at all
stress and social engagement. locations for immediate handling of first-aid cases,
for which certified trained persons are also available.
To promote mental health, an employee assistance First-aid training is also being provided conducted
programme called ‘Paramarsh’ is in place, which through authorised agencies to employees and
provides virtual mental health counselling services contract workmen at locations. Effort is made for
for employees and their family members. availability of at least one certified trained person
in shifts.
Under the aegis of ‘Prerna’ initiative, HPCL
conducts health campaigns for all our contract Contact numbers of hospitals, blood banks and
workers, tank truck crew and LPG delivery staff at ambulances available nearby are maintained in
various locations. Emergency Response & Disaster Management Plan
(ERDMP) document of the location. Hospitals that
Some of the important health related systems and
have been identified are fully equipped and have
procedures adopted by the company are:
various facilities available to promptly address any
emergency situation.
Refineries
Medical check-up of all employees is done on
Our refineries have Primary Medical Treatment yearly basis as per our policy. In addition to this,
Centers called Occupational Health Centre (OHC) medical check-up of contract workmen and security
situated within the Refinery boundary, which caters personnel is conducted as per specified intervals.
to all onsite employees and contract workers Health check-up camps are regularly organised at
for medical examinations and emergency first- marketing locations for TT Crew, contract workmen.
aid treatment.
We have the best medical insurance policy in
They provide prompt treatment towards any the industry that provides IPD, OPD and other
medical or surgical emergency related to illness diagnostic facilities covering all the employees
or accident within the refinery premises, including and their eligible dependents. We also include
Disaster Management protocol; contribute to the rare healthcare issues in insurance coverage,
establishment and maintenance of the highest empanel more network hospitals and enhance
possible degree of physical and mental well-being medical benefits from time to time. Additionally, all
of the employees; conduct pre-employment medical employees have access to HP Wellness Portal, which
examination and periodic-medical examinations; hosts a variety of health-related informative topics.
conduct frequent health & hygiene surveys like
canteen hygiene, ergonomic survey & other During the reporting year, there were NIL cases of
recordable work-related ill health.

Sustainability Report 2022-23 109


Health and Safety at HPCL

Safety and Security of


Health-related Initiatives Critical Assets
Safe and secure assets are crucial to maintain
Aarogyam: the continuity of our operations. We deploy
A health initiative for employees at Marketing the best technology, maintenance practices,
Headquarters with an objective to enhance trainings on maintenance of equipment
the welfare of the employees through and reliability improvement measures to
knowledge-sharing sessions on various maintain reliability of our assets. We leverage
diet and health-related topics, one-on-one technology to enhance productivity and
teleconsultations with dieticians and ensuring operational excellence.
inclusion of healthy lifestyle in our day-to-
day routine. We continue to lay strong emphasis
on operational efficiency and cost
Health Talks: optimisation towards achieving operational
During the year, 29 health talks were excellence. Both refineries are taking part
conducted for 1,687 employees, covering in a performance benchmarking study
topics such as causes, symptoms, stages,
prevention and treatments of hypertension,
diabetes, workplace ergonomics, workplace
ergonomics, indigestion, gastro problems and
other lifestyle diseases.

Health Record Portal


Our HR team is working on ‘Health Record
Portal’ to have an artificial intelligence-
based Health Management System—an
integrated application to collate medical
records of employees, track their health
parameters, nudge to form healthy habits
and gain meaningful insights on their health
and behaviours.

Envisaged Objectives:
Æ Providing Competitive Health Solution

Æ Cost Management

Æ Productive organisation

Æ Healthier employees

110 Hindustan Petroleum Corporation Limited


by M/s. Solomon Associates, USA, to achieve Deploying Digital for Asset Integrity
reliability and operational excellence. They are
We are deploying a predictive analytics-based
also participating in the Refinery Performance
maintenance solution for real-time performance
Improvement Programme (RPIP) to optimise
prognosis of critical equipment at refineries and
processes and improve energy consumption.
marketing installations. This initiative is expected
At marketing locations, our M&I teams inspect to substantially increase asset reliability and
our facilities and carry out timely maintenance of availability, pre-empting surprise failures/outages,
assets. They also assess potential risks, prepare minimise risk of unplanned shutdowns and provide
mitigation plans and identify the need for new alerts, insights and warnings in advance.
investments towards improving asset integrity with
the aim of achieving safe, incident-free and efficient Security Services
operations. Preventive and predictive maintenance
Both our refineries are guarded by Central
and residual life analysis of equipment is carried out
Industrial Security Force (CISF), which is under the
to avoid equipment failure, especially the rotating
administrative control of Ministry of Home Affairs.
equipment and subsequent emergencies.
Our other facilities such as offices, depots,
During the year, there were no significant spills.
terminals, LPG plants, lube plants and stations of
cross-country pipelines are guarded by private
security guards from DGR-empanelled security
agencies. This is in line with the direction given by
the Department of Public Enterprises. Some of the
locations in the State of Maharashtra are guarded
by private security guards from Maharashtra State
Private Security Guards Board. At pipeline locations,
line walkers provided by private security agencies
patrol pipelines. The service conditions of private
security guards and line walkers are regulated as per
Statutory/Government guidelines.

⊲H
 PCL locations regularly conduct safety and
security drills for emergency preparedness

Sustainability Report 2022-23 111


Building Lasting Relationships

Elevating the Customer


Experience
Customer Satisfaction
We are consistently working towards improving operational excellence, customer
value, and convenience by innovating, developing, and deploying new technologies.
Our vision is to be a world-class energy company known for caring and delighting
customers with high-quality products and innovative services across domestic and
international markets, while also delivering superior financial performance.

Our commitment to continuous improvement and Our products meet BIS specifications, as well as
business excellence pivots on improving product internationally recognised and customer-specific
performance, delivering quality, fostering innovation, standards. All our products are evaluated and
securing safety and enhancing customer value. We assessed for health and safety parameters on
focus on developing and providing premium quality applicable specifications and relevant norms.
products with high performance efficiency and Qualified auditors assess our operations related to
safety with minimal environmental impacts to delight manufacturing, storage and marketing periodically
our customers and foster product stewardship in for health-, safety- and environment-related risks.
our business. Our dealers and distributors are regularly advised
and guided on product safety management through
We strive to execute our product stewardship campaigns, meetings, training programmes. We
responsibilities through innovative research & also undertake operational and product safety-
development (R&D), process re-design and product related trainings and awareness and stakeholder
safety by extending sustainability and responsibility engagement exercises. Specific SOPs for delivery
across our value chain. men on product safety and handling are in place.

Safety is of utmost importance to us throughout We also communicate information pertaining to


the lifecycle of our products. While our facilities the safe use of all our products to ensure that our
are designed to ensure safe operations, we have customers are well-informed and aware. Product
implemented safety management systems and safety information is also disseminated through
protocols to pre-empt and prevent potential booklets and guidelines on product-handling
safety incidents. The workforce is provided procedures and risks, including Material Safety Data
rigorous safety training and appropriate safety Sheets (MSDS).
protection equipment.

112 Hindustan Petroleum Corporation Limited


Information of our products and services can be
accessed through the following links:

Æ Corporate Website: www.hindustanpetroleum.com

Æ Facebook: www.facebook.com/hpcl

Æ Twitter: www.twitter.com/hpcl

Æ Instagram: www.instagram.com/hpcl

Æ LinkedIn: https://www.linkedin.com/company/
hpcl
Æ SOP has been developed for mass awareness
Æ YouTube: https://www.youtube.com/c/
about safe usage of LPG. Field officers/
Hindustanpetroleum74
distributors conduct safety clinics in line with
Apart from the above, information on product the same.
features, services and safety are also available at our
During 2022-23, over 19,450 of LPG Panchayats
customer touch points such as retails outlets, LPG
were conducted across the country to promote
distributorships and CNG stations, among others.
consumption, safety and environmental aspects of
Website and social media platforms have a wide
LPG usage, which is highest amongst industry.
reach to communicate any important information in
a timely manner to consumers. Press release can be
used to communicate through major news dailies.
19,450
Educating Consumers about Safe and LPG Panchayats conducted
Responsible Usage of Products in 2022‑23

Consumers are educated about the safe and Majority of our products are sold in bulk except
responsible usage of products and services through packed LPG, lubricants, specialty products and
regular information on website through banners petrochemicals. Important information about the
and pages in addition to posts and videos on social product are displayed on the invoices. All our
media platforms. Press releases are also shared LPG packages (cylinders), include information
in case of any important information; these are on safe and responsible usage of products, lube
circulated through major news dailies which are containers and polymer bags (polypropylene and
uploaded on the website as well. Promotions, polyethylene) are labelled with recycling code.
including advertisements (TV, Print, Outdoor, Product specifications and MSDS are available on
Digital), Events & Exhibitions, LPG Panchayats under the company website. At retail outlets, the details of
Pradhan Mantri Ujjwala Yojana, Mock Drills, Regular the product are displayed in the dispensing unit and
Safety awareness campaigns, technical awareness also in the Pylon with details of price. For Petchem
sessions at industrial consumer premises, are also products, pictorial, depictive information pertaining
carried out. At customer touch points, various safety to storage and handling such as ‘Use No Hooks’,
messages are displayed through information boards. ‘Store Under Roof’ and ‘Keep Dry’ are mentioned on
the polymer product packaging.
Since LPG cylinders provide energy access to
consumers right up to their kitchen, we also Our product labels provide information required
undertake the following measures to educate our as per the national and international specifications.
customers about its safe usage: Relevant information on safe handling of the
products is appropriately disseminated. There was
Æ Safety instructions card is given to customers at no non-compliance on irresponsible advertising as
the time of release of connections. per applicable regulatory codes. In the reporting
Æ At the time of installation of connections at the period, we have not identified any non-compliance
premises, it is ensured that the hotplate is kept with respect to applicable legal requirements of
at higher level than cylinder. Customer is also product labelling regulatory codes. This year also we
advised about the safe way to use LPG. witnessed Nil voluntary and forced product recalls.

Æ Safety messages are promoted through social Consumer satisfaction surveys are carried out as
media highlighting safety norms in usage of LPG. a regular part of business. These include product
trials-related feedback, telephonic feedback,
among others.

Sustainability Report 2022-23 113


Building Lasting Relationships

Quality Assurance
Quality assurance entails carrying out administrative Highlights
and procedural activities to meet the quality
Æ Inspected 2,951 retail outlets, 10 kerosene (PDS)
objectives and goals for products and services.
distributorships, 572 LPG distributorships and 11
We have a Quality Assurance Cell (QAC) to ensure LPG bottling Plants.
stakeholders' confidence in the fulfilment of quality Æ Organised 405 physical training programmes
requirements. This is achieved by conducting across India, covering 2,983 participants on topics
surprise inspections for evaluation of compliance such as quality, MDG, inspections and automation.
with various statutory requirements and standards
and remedial actions are advised to satisfy the Æ Attended four industry meets with OEMs on
quality norms. knowledge exchange sessions held on changes
introduced in DUs to ensure there is no leeway for
In line with the Ministry of Petroleum and channel partners to partake in malpractices.
Natural Gas (MoP&NG) directives to ensure
Æ Developed three training modules during the year
stakeholders' confidence in the fulfilment of
for QAC officers (Retail & LPG), regional sales
quality requirements, we maintain a dedicated
officers, engineering & MIS, dealers and their staff.
QAC (with officers stationed across all zones),
which functions independently of the refining and Æ Organised a three-day workshop on Stakeholders
marketing activities. Under the new Marketing Management and Relationship Techniques
Discipline Guidelines (MDG) and HQO directions, (SMART) at HP Management Development
the QAC conducts surprise inspections of retail Institute, Nigdi to enable officers to handle
outlets, kerosene public distribution system provocative situations tactfully and manage
(PDS) distributorships, LPG distributorships and stressful situation by converting disagreements
supply locations. into agreements for QAC and Vigilance Officers in
association with Indian Trainers Guild LLP.
The Quality Assurance team focuses on critical
aspects of product quality and quantity, safety,
automation system functioning, branding &
Quality Control
visual identity and random product samplings, Our quality control (QC) department, with our
among others. To track compliance concerning fully equipped laboratories across India for testing
associated metrics and identify areas of constant various petroleum products, has enabled us to
improvement, an online e-inspection portal has maintain high standards of quality across our entire
been made available. Surprise inspections are product portfolio.
conducted regularly at sites as per prevailing norms
and directions. Product quality is monitored at different stages
of the product life cycle i.e. receipt, storage and
The implementation of strong QA procedures has dispatch of the products at terminals, depots and
allowed us to set high customer service criteria for outlets. Industry Quality Control Manual (IQCM) is
supply sites and channel partners and helps us offer the guideline for the oil industry to assess product
improved products and services to customers. quality at different stages. Our QC caters to the
needs of the customers through our network
Capability development in the domain of Quality of forty-eight laboratories across India. These
is an important feature of staying up to date labs are designed according to the requirement
with the current process, product and regulatory of the Oil Industry Safety Directorate (OISD).
requirements. To provide our regional officers and Accordingly, our laboratories perform various tests
other stakeholders i.e., dealers and their staff with on different products, providing prompt service and
the most up-to-date information in these areas, accurate results.
QAC officers conduct training programmes across
the country. We have also invested in the latest technologies
and instruments. The accuracy of test results are
Regular meetings with OEMs are conducted administered by implementing ISO 17025 Quality
to improve the execution of inspections with a Management System.
better understanding.
NABL accreditation as per ISO 17025 is available
at 36 testing labs. In addition, QC marketing has
two calibration labs at Delhi and Secunderabad
accredited as per ISO 17025, reference material

114 Hindustan Petroleum Corporation Limited


producer (RMP) facility at Visakh accredited as per Æ Conducted 187 QC audits; supported technical
ISO 17034 and HP PTP facility at Vashi accredited as groups and field offices, locations in various
per ISO 17043 accreditation, taking the total NABL- quality related requirements.
accredited facilities in QC marketing to 40. All other
Æ Established protocol for Periodic Quality
labs are covered under SOPs developed in line with
Monitoring Programme (PQMP) of MS and HSD at
ISO 17025 requirements.
terminals/depots covering Full BIS Parameters.
The ISO 17025 system not only ensures that the Æ Emerged as industry leader in MoP&NG’s
labs maintain Quality Management Systems, but it ambitious programme of biodiesel blending
also endorses the technical competence of the lab in HSD. In the biodiesel tender/EoI, two stage
personnel. Ten of our labs are approved by Director certification of product was required, i.e. Type
General of Civil Aviation (DGCA) and Directorate Approval of the process and Batch Certification
General of Aeronautical Quality Assurance after Joint Sampling. Our QC Lab at Vashi is the
(DGAQA). The performance of the labs are also only one in the industry having biodiesel-testing
adjudged by various internal and external audits by facility for full BIS parameters.
these agencies.
Æ Extended support for field trials of low-smoke
kerosene, conducted jointly with Indian Army.
Highlights Trials were conducted successfully for use of
Æ Tested a total of 1,07,712 samples at labs and also product in Bukharies (heat sources for soldiers to
achieved highest revenue generation by testing keep warm in extreme cold conditions).
external samples.

Æ Commissioned Smart Quenchometer at Mazagaon


Customer-centric Initiatives
Lab for determination of Cooling Characteristics Our customers are the bedrock of our sustenance
of Quenching Oils by Cooling Curve Analysis. and the reason for our existence. Our overall
business strategy pivots around customer-centricity
Æ Audits by multiple external auditors, including
and is embedded in our promise to deliver products
OEM auditors were concluded at various QC labs
of high quality at the right quantity and at the right
at our installations.
time to exceed their expectations.
Æ Learning and growth initiatives such as QC
training programmes, technical bulletins, technical We engage with customers and other stakeholders
refresher course were continued during the year. to expand initiatives with the aim of being their
Six officers from HPCL QC marketing attended supplier of choice. We work towards earning their
the NABL assessor Training course. QC Officer trust by providing solutions that integrate deep
presented technical paper on Topic Butanol - A industry insights, leading technologies and best-in-
Promising Alternate of Ethanol in Commercial class delivery processes.
Blends at the India Energy Week 2023.
As a part of the energy transition process, the
Æ Celebrated QC week and World Quality Day, vast network of over 21,000 retail outlets of HPCL
conducted Quality Awareness & Customer is being leveraged while foraying into emerging
connect programmes to enhance the awareness opportunities, including non-fuel and adjacent
about the quality among stakeholders. business opportunities to transform them as
Energy Stations.

Sustainability Report 2022-23 115


Building Lasting Relationships

Highlights
Æ We continued to focus on the non-fuel business Æ To ensure the quality and quantity of fuel
(allied retail business) with a wide range of delivered at delivery points, upgraded centralised
facilities for customers across the network, Vehicle Tracking Systems (VTS) integrated with
including ATMs, take-away food counters, ‘C’ electromechanical locking devices have been
stores, vehicle accessories, etc., through tie-ups implemented at all tank trucks.
with leading banks, food brands and OEMs.
Æ All our products are designed keeping in mind the
Æ HPCL continues to improve its customer reach requirements of the customers.
by adding new customer touchpoints such as
Æ Besides network expansion, improving the
retail outlets. With a total network of 21,186 retail
volumes within the existing network has been a
outlets, we are the second largest retail network
key focus area for the Retail SBU.
owner in the country.
Æ Towards an enriching customer experience, the
Æ Our ‘Drive Track Plus’ loyalty programme, which
powerful loyalty and payment programme ‘HP
combines control, convenience, security and
Pay’ is being leveraged to provide complete
attractive benefits for fleet owners and drivers,
fuel management solutions to customers in
kept up our momentum for client retention and
the form of an unbeatable combination of
growth in the commercial vehicle category.
control, convenience, security and attractive
The on-boarding of significant commercial
reward points.
vehicle OEMs, aggregators, NBFCs, large fleet
transporters, small fleet owners, etc., on ‘Drive Æ Taking a step forward in providing customers
Track Plus’ platform, contributed to our top line. with enhanced quality products that meet their
evolving needs, we launched ‘Power 95’, a high-
Æ To enhance the customer experience, the
octane premium-branded petrol, during the year.
technology solution has been expanded with
new features. The digital transformation of Æ To cater to the evolving market needs and
loyalty programmes was launched during the consumer preference for digital and cashless
year towards improved customer engagement payment modes, cobranded credit cards were
and experience. Social media promotion was launched during the year on the Rupay platform.
continued throughout the year, which helped HPCL collaborated with IDFC First Bank to launch
with enhanced visibility, targeted advertising co-branded credit cards named ‘First POWER’
options, leveraging social proof and getting and ‘First POWER +’. The co-branded credit card
customer feedback. with Bank of Baroda is named ‘ENERGIE’.

Æ Added fire extinguishers to LPG allied


business product line to support safety in
customers’ premises.

Æ We sustained our leadership position in the


Free Trade LPG (FTL) segment in 5 kg and 2
kg packages to meet the niche requirements
of customers, especially small vendors and
young professionals.

Æ We are committed to strengthening our


relationships with key accounts through various
customer-centric initiatives. The Customer
Relationship Management (CRM) tool is being
leveraged to facilitate quicker and more efficient
responses to customer leads and to offer a better
customer experience. A continued focus has been
maintained on the retention of existing business
and the solicitation of new customers in the MSME
sector to sustain growth in all product lines.

⊲ Expanding reach of cleaner fuels

116 Hindustan Petroleum Corporation Limited


Listening to our Customers
We pursue sustainable growth by improving to expect in terms of services and how to seek a
our products according to social expectations remedy in case of problem. The citizen’s charter is
and consumer preferences. It is this symbiotic hosted on the HPCL corporate website.
relationship that encourages innovation and
improvement, be it incorporating intelligent systems We can receive grievances from multiple sources
or investing in future technologies. viz. End-Customer (B2C & commercial, bulk, direct),
Govt. & Statutory bodies, stakeholders, and others.
Grievance Redressal Mechanism These sources can choose to raise a grievance via
multiple channels, the resolution process being
HPCL has provided a link to the Centralised different for each channel. These channels comprise
Public Grievances Redress & Monitoring System of our website, call centre (3rd party), letter (post)
(CPGRAMS), a web-enabled Grievance Redressal to officer, email to officer, call to officer, walk-in at
System of the Department of Administrative office, social media (handled by 3rd party E-Seva
Reforms & Public Grievance (DARPG) to enable team), CPGRAMS, National consumer helpline.
Public to submit their Grievance on the Portal. It is
a single-window application for various Ministries, A consumer, who wishes to register a complaint
Departments, Organisations of the Govt. of about any product or service can visit our corporate
India, which provides a mechanism for grievance website and register the complaint using the online
submission to various Channels to enable their form of complaints and feedback by selecting the
processing for redressal with Stipulated Timelines. appropriate business segment. After submission, the
Grievances submitted on the CPGRAMS portal are status of the complaint can also be monitored by
forwarded by Ministry of Petroleum & Natural Gas the consumer online. This is accessible at: https://
(MOP&NG) to the Nodal officer for Public Grievances hindustanpetroleum.com/pages/Complaints-and-
in HPCL for redressal. Feedback

HPCL has a citizen charter whose objective is HPCL has also established a Public Grievance
to improve the quality of public services. This is Redressal system, details of which are provide in the
done by letting people know the mandate of the Company website at https://hindustanpetroleum.
Corporation, how to reach Company’s officials, what com/pages/Public-Grievance-Redressal

Customer Complaints:
2022-23 2021-22

Number of consumer complaints in respect of Pending Pending


Received during Received during
Resolution at end Resolution at
the year the year
of the year end of the year
Data privacy NIL NIL NIL NIL

Advertising NIL NIL NIL NIL

Cyber-security NIL NIL NIL NIL

Delivery of essential services 1,87,937 247 2,10,730 162

Restrictive Trade Practices NIL NIL NIL NIL

Unfair Trade Practices NIL NIL NIL NIL

Other NIL NIL NIL NIL

Total 1,87,937 247 (0.13%) 2,10,730 162

Sustainability Report 2022-23 117


Engaging with the Local Communities

Our Role in Societal


Progress
Corporate Social Responsibility
We have always been a Corporation with conscience, firmly believing that business
priorities can co-exist with social commitments and inclusive growth. To foster the growth
and well-being of the communities surrounding us, we actively engage in a diverse range
of thoughtfully curated social programmes. These initiatives are specifically tailored to
drive meaningful transformations in the regions where we have a presence.
We have always strived to be a model of Mission, Clean India Movement, Transformation of
excellence and a catalyst of transformation in all Aspirational Districts programme and other policies
our endeavours, be it business prosperity or our on rural/community development.
commitment to society and hence, create shared
values and deliver happiness through our various We support projects that create empowered
initiatives that have touched millions of lives. We individuals and communities through sustainable
believe that responsible business practices are social and economic development. We have
synonymous with caring and contributing for the undertaken and implemented various activities
welfare of the communities and the society. under the focus areas of childcare, education,
health care, skill development, sports, environment
Our commitment towards good corporate & community development, contribution to
citizenship is driven by our motivation to create incubators or research and development projects
a positive social change. Our business purpose in the field of science, technology, engineering
guides us to serve the communities and the society. and medicine funded by the Central Government
Through our core competencies, expertise and or State Government or public sector undertaking
technology, we reach out to various segments of the or any agency of the Central Government or
community with a special focus on the underserved State Government; and contributions to public
and underprivileged. funded universities.

Making a positive, long-term difference to the The initiatives have further strengthened our
community is the bedrock of our CSR strategy, image as a socially responsible Corporate Citizen.
which has been in-sync with various prevailing We have been very successful in bringing positive
statutes and guidelines. changes in the lives of the most vulnerable and
marginalised section of society such as children
The CSR activities as stated in our CSR Policy are with special needs, girl child from tribal areas, long-
undertaken as projects, programmes, activities in distance truckers, socially-disadvantaged groups,
line with Schedule VII of the Act and are not for unemployed & women, and more.
pursuance of normal course of business. These
initiatives are implemented either directly or through Our CSR projects are designed in consultation with
expert external agencies registered as Trust, Society the community, considering its developmental
or Company under Section 8. The provision of our needs and available opportunities. Through our
CSR policy states that projects/activities shall be efforts, we aspire to be a catalyst for change. The
undertaken at any of the following: CSR projects are implemented through a community
engagement process and with the assistance of our
Æ The local development plan of HPCL which is in field offices as per the nature of the engagement.
proximity to HPCL operation areas/locations Local communities have been identified nearby our
Æ In Aspirational Districts notified by Government area of operation, as one of key stakeholders and
of India use multiple channels of communication at regular
intervals to connect with them.
Æ Where there is a strategic connect for HPCL
While we directly implement some initiatives, we
The CSR projects are well-established and in sync
also collaborate with external agencies including
with (and seek inspiration from) issues of national
Government and Non-Government Organisations for
importance and Government of India policies like
many. We have undertaken various social initiatives
National Health Mission, National Skill Development
and activities across the nation for the welfare and
118 Hindustan Petroleum Corporation Limited
development of underprivileged communities and Æ Project Kashmir Super-50 Medical: We
promotion of environmental stewardship: continued our collaboration with Indian Army for
this project under which aspiring students from
Æ Implemented more than 200 CSR projects under Union Territory (UT) of Jammu & Kashmir are
the focus areas of Childcare, Education, Health provided mentoring and coaching for Medical
Care, Skill Development, Sports and Environment & stream. This residential training programme gives
Community Development with complete allocation wings to academic aspirations of youth for their
of CSR obligation of ` 154.85 Crore for 2022-23. career development.
Æ Implemented more than 100 CSR projects Æ Implementation of four Flagship CSR Projects
under the annual common theme ‘Healthcare’ with Indian Army viz. Kashmir Super - 50 Medical
in line with guidelines on CSR expenditure by (5th Batch), Ladakh Ignited Minds – (Medical
Department of Public Enterprises, GOI. and Engineering) Super - 45 (2nd Batch), White
Æ Across the country, various medical devices Knight Centre of Wellness and Excellence (1st
and equipment were procured and provided Batch), Ladakh Ignited Minds - Kargil Super -
to Primary Healthcare Centers, Community 50 (1st Batch) for providing residential quality
Healthcare Centers, District Hospitals to meet the education and coaching facilities for needy and
grassroot healthcare needs in local and remote deserving students from Jammu & Kashmir UT
areas surrounding our business locations like and Ladakh UT
Terminals, Depots, LPG Plants, Pipelines, Aviation Æ The year saw commencement of similar
Stations, Lube Blending Plants, among others. residential project in Kargil District of UT of
Ladakh exclusively for girl students and in Rajouri
District, UT of Jammu & Kashmir for coaching
the deserving youth in streams like Engineering,
Medical and other career-oriented programmes.

Æ Project ADAPT: Under this project, we


endeavoured to enhance the quality of lives
of 150 Children with Special Needs (CwSN)
through education, individual training and
therapeutic treatment. Æ Contribution towards reconstruction
and restoration of Kedarnath Dham and
Æ Project Nanhi Kali: Through this project, surrounding areas.
adolescent girls were provided with remedial
classes, material kits, sports curriculum training Æ Contribution towards Construction and
and counselling sessions on personal hygiene and Redevelopment of Badrinath Dham as spiritual
career development. smart hill town.

Æ Distributed more than 16,000 scholarships to


students from various socially, economically
disadvantaged sections like SC, ST, OBC and
PwD across the country, giving support to the
students for their Education from School-Level to
Professional courses.

Æ Provided basic facilities like furniture items,


teaching aids, water coolers, in various schools
for benefit of students in rural areas.

Sustainability Report 2022-23 119


Corporate Social Responsibility

Æ Pitching of seed balls and sapling plantation


was carried out to promote green environment
along with various competition on slogan writing,
elocution, drawing and more, under the theme of
‘Swachhata’.

Æ Contribution was made to the Armed Forces


Flag Day Fund for the care, support, welfare and
rehabilitation schemes for Ex-Servicemen (ESM)
and their dependents.
Æ Project Dhanwantari: Under this project,
five Mobile Medical Vans were operated to We recognise the importance of monitoring and
provide basic healthcare facilities in remote measurement in understanding the effectiveness
rural areas i.e., to provide diagnosis, treatment and impact. It is done through periodic evaluation
and health awareness at the doorsteps of less and feedback which provide insights and help us
privileged people. make better decisions.

Æ Project ‘Dil without Bill’: Under this project, In pursuance of Sub-Rule (3) of Rule 8 of the
support was extended for conducting heart Companies (Corporate Social Responsibility Policy)
surgeries of 300 beneficiaries from lower Amendment Rules, 2021, dated January 22, 2021,
economic section with special focus on children. we have engaged Jamia Millia Islamia, a Central
University, as an ‘Independent Agency’, to undertake
Æ We supported Skill Development Institute (SDIs) at
the Impact Assessment of nine CSR projects having
Ahmedabad, Bhuvaneshwar, Rae Bareily, Guwahati
outlays of ` 1 Crore or more and which have been
and Visakhapatnam. These are conceptualised
completed during financial year 2020-21.
by Government of India and operationalised
by Oil & Gas CPSEs and focused on imparting The Executive Summary of Impact Assessment
skills in industry-oriented trades for improving is provided in the Annexure to Directors’ Report
employability of weaker sections of the society. – Annexure III (REPORT ON CSR ACTIVITIES/
Æ SDI Visakhapatnam is being managed by us INITIATIVES) in our Annual Report 2022-23.
along with support of other Oil & Gas CPSEs.
We carry Social Impact Assessments (SIA) and
More than 3,800 students were trained in various
Environment Impact Assessments (EIA) of our
trades for their employment enhancement at
projects based on the applicable laws.
SDI Visakhapatnam.

Æ Upskilled more than 1,500 apprentices engaged In the reporting year, we undertook the SIA of
under 'The Apprenticeship Act. 1961'. our Varanasi LPG Bottling Plant Project. Refer our
Annual Report 2022-23 (Principle-8, BRSR) for
Æ During the year, we commenced the work for more details.
establishment of Compressed Bio-Gas (CBG)
Plant at Village Pathmeda, District Jalore, In the reporting year, we undertook the EIA of our
Rajasthan. This project is envisaged to provide Haldia Panagarh LPG pipeline project (HPPL). Refer
purified Bio-Gas in rural areas produced from our Annual Report 2022-23 (Principle-6, BRSR) for
Waste/Bio-mass sources like agricultural residue, more details.
cattle dung, etc.

Æ We supported the Har Ghar Tiranga Campaign


(13th – 15th August, 2022) by providing National
Flags to school students and general public
in cities and villages, encouraging the spirit of
patriotism under the aegis of ‘Azadi Ka Amrit
Mahotsav’.

Æ During Swachhata Pakhwada Campaign (July


1-15, 2022), there was outreach of more than 20
Lakh stakeholders across the country. Various
awareness generation activities were undertaken,
like administration of Cleanliness pledge,
providing Masks and Hygiene kits to support fight
against COVID-19. ⊲ Recognition to HPCL for its CSR initiative
"Dil without Bill"
120 Hindustan Petroleum Corporation Limited
CSR Projects Undertaken in Designated Aspirational Districts
(in ` Lakh) (in ` Lakh)
Sr. Amount Sr. Amount
State Aspirational District State Aspirational District
No. spent No. spent
1 Andhra Pradesh Visakhapatnam 781.91 17 Jharkhand Giridih 0.75
2 Andhra Pradesh Vizianagaram 11.04 18 Jharkhand Hazaribagh 0.75
3 Assam Darrang 10.02 19 Jharkhand Palamu 0.75
4 Bihar Aurangabad 2.25 20 Jharkhand Purbi Singhbhum 21.69
5 Bihar Begusarai 3.75 21 Jharkhand Ranchi 1.50
6 Bihar Gaya 0.75 22 Jharkhand Sahibganj 1.50
7 Bihar Katihar 3.00 23 Madhya Pradesh Rajgarh 1.79
8 Bihar Muzaffarpur 3.75 24 Maharashtra Gadchiroli 38.39
9 Bihar Nawada 1.50 25 Maharashtra Nandurbar 39.53
10 Bihar Purnia 3.01 26 Odisha Kalahandi 0.75
11 Bihar Sheikhpura 1.50 27 Odisha Nawarangpur 6.50
12 Bihar Sitamarhi 0.75 28 Rajasthan Dholpur 0.75
13 Chhattisgarh Bijapur 2.46 29 Rajasthan Jaisalmer 16.78
14 Gujarat Narmada 19.76 30 Rajasthan Karauli 3.98
15 Haryana Mewat (Nuh) 33.10 31 Uttar Pradesh Chandauli 8.48
16 Jharkhand Bokaro 33.35 32 Uttar Pradesh Fatehpur 17.67

Lives Touched Through CSR Projects


% of Beneficiaries
Sr. No. CSR Project No. of Beneficiaries from vulnerable and
marginalised groups
1 Promoting Education 3,74,908 100%*
2 Promoting Healthcare 3,39,261
3 Swachh Bharat Abhiyan 1,49,971
4 Rural Development 78,130
5 Environment Sustainability 20,500
6 Empowerment of Socially and Economically Backward groups 5,030
7 Activities under various other Schedule VII areas 3,625
8 Imparting Employment by Enhancing Vocation Skills 3,177
9 Promotion of Nationally recognised and Para-Olympic Sports 23

*The above details are for CSR projects where beneficiaries are mapped. However, there are several community-based initiatives,
which have benefitted various sections of the society as a whole.

Promotion of Sports Activities


We play a significant role in the promotion of Inter Unit Badminton Tournament at Bengaluru.
sports and regularly host and participate in various We also participated in PSPB tournaments in various
tournaments for the Petroleum Sports Promotion sports disciplines. In 2022-23, we won the team
Board (PSPB) and the All-India Public Sector Sports championship in the PSPB swimming tournament
Promotion Board (AIPSSPB). We also organised and the team champion (in the unrated category) in
various internal tournaments during the year to the PSPB chess tournament.
promote sports. The Sports Portal was launched
during the Annual Sports Meet 2022-23 and helps us
in managing the sports activities.

We hosted the 42nd Inter Unit PSPB Bridge


Tournament at Amritsar, the 41st PSPB Inter Unit
Athletics Meet at Kolkata and the AIPSSCB All India

Sustainability Report 2022-23 121


Economic Performance

Focusing on Sustainable
Returns
We are committed to ensuring energy security of India and are working
towards creating value for our stakeholders, thereby ‘Delivering Happiness’
to the society at large.

The global economy grew by 3.4% in 2022 despite Highlights


the multifarious challenges posed by geopolitics,

19.09 MT
the associated inflationary pressures and economic
woes in countries around the world. With a growth
rate of 7.2%, India’s output rebounded to its pre-
pandemic level in 2022-23, reinforced by the Crude throughput
government’s capex push and resilient private
consumption. Against the backdrop of the increased

107%
prices and volatility of global crude prices, India’s
petroleum product consumption also hit a new
record in 2022-23, reaching the highest ever level of
over 220 MMT. Capacity uitilisation

During the year, the global geopolitics held centre


stage leading to volatility in crude oil prices, new
energy supply dynamics and increased focus on The highest-ever crude throughput of 19.09 MMT
energy security. Despite the heightened price and and capacity utilisation of 107% was achieved by our
margin fluctuations witnessed by the oil and gas refineries, which is 36.7% higher than the 13.97 MMT
industry, we have continued to meet the market of crude processed during the previous year.
demands and ensured the availability of petroleum
products across our network. With the stabilisation of the expanded capacity, our
Mumbai Refinery achieved its highest ever annual
To ensure availability and seamless, cost-efficient crude throughput of 9.8 MMT. Mumbai Refinery
distribution of petroleum products across the achieved outstanding performance during the
country, we have significantly expanded the refining financial year 2022-23 by surpassing numerous
and supply chain infrastructure during the year with previous best performance milestones for unit
a capital expenditure of ` 14,043 Crore (including throughput and production through optimum asset
equity investment in our JVCs and subsidiaries) in utilisation. The annual production of LPG, MS, HSD
2022-23. and LOBS reached the highest-ever level for the
Mumbai Refinery.

Physical Performance, The Visakh refinery also exhibited excellent

Infrastructure Projects performance by processing a crude throughput of


9.29 MMT with an impressive capacity utilisation
Refineries of 111.9%. In January 2023, the Visakh Refinery
achieved the highest-ever monthly production of
During 2022-23, our Mumbai and Visakhapatnam MS. In addition to these remarkable achievements,
refineries demonstrated exceptional performance in six new crudes were processed for the first time
their refining operations, showcasing an impressive in our refineries. As part of the Visakh Refinery
improvement. Meticulous crude sourcing, right Modernisation Project (VRMP), a new Crude
crude mix and expeditious evacuation of finished Distillation Unit (CDU-4) has been commissioned.
products, duly complemented by improved refinery
reliability and standardised operating processes, HPCL imported 14.97 MMT of crude oil in 2022-23,
were the key contributors to the performance as compared to an import of 10.12 MMT during
of refineries. 2021-22 and procured 3.95 MMT of crude oil from
indigenous sources.

122 Hindustan Petroleum Corporation Limited


Refineries – Operating Performance
Parameter Unit Mumbai Visakh
Crude Throughput TMT 9,804.3 9,286.6
Capacity Utilisation % 103.2 111.9
Distillate Yield % 77.4 68.0
Fuel & Loss % 7.40 7.54
Specific Energy Consumption MBTU/BBL/NRGF 76.0 79.12
Gross Refinery Margin (Before factoring in impact of export $/BBL 14.82 9.20
levies)

Marketing
On the back of a wide array of customer-centric initiatives supported by a strong supply chain network, we
achieved our highest-ever annual sales of 43.45 MMT (including exports) during the period, with a growth
rate of 11% compared to the historical. In the domestic segment, we recorded the highest ever volumes of
42.19 MMT with a growth of 12.8% and achieved a market share gain of 0.94% amongst Industry.

Retail
Retail SBU is the face of our Corporation as retail Æ Added 1,026 EV charging stations to a total of
sales constitute a major share of our total market 2,037; secured an order for installation of EV
sales. Through a widespread network of retail chargers in 10 parking lots of Brihanmumbai
outlets, we take care of not only the customer’s Municipal Corporation.
fuel needs, but also of the complete vehicle. We
Æ Commissioned 117 door delivery dispensers to a
have Club HP and Club HP Star as outlets offering
total of 760.
differentiated services. In addition, products for
cashless transactions, like Co-branded cards, Fleet Æ Opened HaPpy shops at 50 locations taking the
cards and other loyalty cards have been developed total to 60.
for the convenience of customers.
Æ Conducted 4,168 GURUKUL Training Programmes
Highlights for 60,103 CSAs.

Æ Achieved highest sales volume of 28.2 MMT; Æ Conducted 997 numbers of sales area-wise dealer
sales of petrol and diesel increased by 16.2% and meets; these were attended by 16,962 dealers
16.5%, respectively. and 812 numbers DEEKSHA Training Programmes
across all Zones.
Æ Branded fuel continued to be an asset for us,
helping us differentiate offerings and create value
for the organisation. The highest-ever sales of fuel
additives ‘PoWer Petrol Plus’ and ‘Turbojet Diesel
Plus’ were registered during the year.

Æ Commissioned 1,161 retail outlets taking the total


retail network to 21,186 numbers spread across
the country.

Æ Automated 1,400 retail outlets during the year,


taking the total to 19,631 automated outlets.

Æ Achieved No Automation, No Operation (NANO)


at 91.03 % and connectivity at 90.67 % of total
active operating outlets.

Æ Added 301 CNG stations to a total of 1,387,


ensuring wider availability of alternate fuels and
offering more choices to customers. ⊲ Forging partnerships for growth

Sustainability Report 2022-23 123


Economic Performance

LPG
LPG is an ideal fuel in terms of quality, cost, Æ Released 15 Lakh new LPG connections under
efficiency and environment. It is supplied under the PMUY 2.0.
HP Gas brand. We ensure highest safety standards
Æ Sensitised people about safe and sustainable
throughout the value chain. Apart from domestic
use of LPG by conducting over 19,450 LPG
LPG, HP Gas also markets LPG cylinders for
Panchayats across the country, which is the
commercial and industrial purposes and bulk LPG by
highest among industry.
tanker for industries.
Æ We continue to focus on augmenting bottling
Highlights capacities and LPG storage at locations to meet
Æ HP Gas serves over 9.3 Crore consumers. the growing LPG demand. Commissioned LPG
plants at Barhi (120 TMTPA), Patalganga (180
Æ Achieved highest ever LPG sales of 8.1 MMT with TMTPA) and Sitarganj (60 TMTPA); 21 Mounded
growth of 4.9%, highest among the industry. The Storage Vessels across nine locations to augment
domestic LPG segment gained market share for LPG storage capacities (9.8 TMT).
the seventh consecutive year. HPCL is the second-
largest LPG marketer in the country. Æ Sustained leadership position in the Free Trade
LPG (FTL) segment, selling over 5.5 Million ‘APPU’
Æ Commissioned 45 new domestic LPG distributors, cylinders in package sizes of 5 kg and 2 kg and
taking the total to 6,283; commissioned a record achieving a market share of over 44% in this
51 non-domestic distributors were commissioned, competitive segment.
to tap the non-domestic segment, taking the total
to 328. Æ Launched HP Sakhi-initiative for last-
mile connectivity.
Æ We enrolled 25.98 Lakh new LPG customers
(including 14.96 Lakh customers under PMUY 2.0)
enhancing customer reach, thereby taking total
LPG customer base to over 9.3 Crore.

⊲ Dedication of Goalpara LPG Plant to Nation - fostering energy independence and


empowering communities.

124 Hindustan Petroleum Corporation Limited


Direct Sales (Industrial and Consumer Sales)
Our Industrial and Consumer (I&C) business line (High-density Polyethylene) LLDPE (Linear Low
handles the institutional sales of fuels, bitumen, Density Polyethylene) and PP (Polypropylene).
naphtha, solvents, petrochemicals and other bulk The polymer products will cater to several end-
products consumed by industries such as mining, use segments, e.g. food, agriculture, textiles,
construction, power plants, shipping, and more, in construction, medical, etc. The foray into the
both the private and government sectors and also petrochemical business will help in reinforcing the
carries out exports of these products to various Government of India’s mission of ‘Atmanirbhar
overseas markets. Bharat’. HPCL has commenced the marketing of
polypropylene and polyethylene during the year in
Effective key account management continues to the key markets of Maharashtra and Gujarat.
play a pivotal role in sustainable, long-term growth
in the I&C business. We supply bulk diesel to various Æ Launched new products like HP Super Solvent
public and private entities, including Indian Railways, for adhesive industry, LSHS Premium (LSFO) in
State Transport Undertakings (STUs), defence units, Goa, Kandla, West Bengal markets; Marine Biofuel
major road construction companies and industrial (10% blend in VLSFO) in coordination with DG
consumers. We also cater to the fuel requirements shipping and SOD SBU as a green fuel for Indian
of Army and paramilitary forces such as BSF, ITBP, Shipping Industry; and Warm Mix Additive with
SSB, CRPF and Border Roads Organisation (BRO) differentiated characteristics for meeting the
for the supply of fuels and bitumen by delivering unique needs of our customers.
products to even their most remote locations. Æ Commercialised HP TUFFBIT in 26 kg Polybags.

Highlights Æ Commissioned, Augmented facilities at several


locations for expanding reach and scale of
Æ I&C business line recorded overall sales of
product delivery to customers viz. MTO rake
4.32 MMT.
unloading facilities at Dharmapuri and Vadodara,
Æ Surpassed sale of 1.2 MMT of Furnace Oil and 1.5 LDO rake receipt and Tank Truck loading facility
MMT of Bitumen. at Haldia and Hexane tankages at Akola and
Sitarganj depots.
Æ Recorded highest ever sales of 27 TMT in the
specialty product line of Hexane. Æ Commercialised several products developed
by HPGRDC.
Æ In bunker marine fuels, sales of 172 TMT were
recorded, with a growth rate of 153%. Æ We are also exporting products like furnace oil,
bitumen, hexane, JBO and MTO to countries like
Æ Made deeper inroads into the Low Sulphur
Nepal, Bhutan and others.
Furnace Oil (LSFO) business, which recorded a
volume of 37 TMT. Æ Bitumen storage at Haldia has been increased
through our JV, M/s Hindustan Colas
Æ Forayed into marketing of Petrochemical products
Private Limited.
with the launch of the HP DURAPOL brand.
The brand will cover various grades of HDPE

⊲ Launch of HP DURAPOL, the groundbreaking petrochemical product

Sustainability Report 2022-23 125


Economic Performance

Lubricants
We are a major producer of base oils in the country, Æ The geographical reach of the lubes marketing
with the capability of producing Group I, Group II network has been enhanced by adding 36 new
and Group III base oils. The Indian lubricant market channel partners.
is one of the fastest-growing markets in the world Æ The focus on Original Equipment Manufacturers
and the third largest in terms of consumption. The (OEMs) and their customers from core sectors
total demand for finished lubricants is estimated to was maintained towards consolidation of business
be about 2,800 TMT, with process oils contributing through partnerships. Started nine new OEM
about 1/3rd of this demand. relationships during the year to a total of 60.

Highlights Æ Lubricants business continued to benefit


immensely from the close interactions between
Æ Continued to improve operational efficiencies OEMs and our R&D/Technical Services teams with
at lube blending plants through infrastructure stakeholders. Close to 2,000 customer-connect
augmentation, automation and various other activities were conducted during the year.
innovative solutions.
Æ Achieved channel expansion through new
Æ Recorded year-on-year growth of 16% and a distributorships at Bangladesh, Kenya and Nigeria;
market share increase of 2.48%. LOI issued for Cambodia, new B2B relations in
Æ Recorded an overall sales volume of 632 TMT of Tanzania, Mauritius, Cambodia and Mauritania.
lubricants, including exports of about 6 TMT to Æ Inaugurated distributor for HP Lubricants Brand
18 countries. in Qatar.
Æ Enhanced market reach through our 100% Æ Launched multiple new products and packages to
subsidiary Company, HPCL Middle East FZCO and suit varied customer requirements.
achieved our highest-ever sales to countries in the
Æ Obtained certifications from OEMs and
Middle East region and Africa.
automobile industry associations for
Æ Signed a Trademark Licensing Agreement with various products.
Chevron Corporation, to manufacture, distribute
Æ Scaled up commercial production and sales of
and market Chevron’s lubricants products
Diesel Exhaust Fluid (DEF) for second year in a
under Caltex brand complementing our existing
row, recording highest ever sales of more than 25
product portfolio, especially in the competitive
TMT during the year.
Bazaar segment. The partnership paves the way
to leverage HPCL’s market leadership to add Æ Continued to play an innovative and proactive role
value via a broader, premium product offering in developing new products for government and
to consumers through synergies between HPCL private sector customers. Close interactions with
and Chevron. the Army, Air Force and other agencies enabled a
number of approvals for new products.

⊲ Promoting resource conservation through circularity initiatives

126 Hindustan Petroleum Corporation Limited


Aviation
We supply Aviation Turbine Fuel (ATF) to airline
customers through a vast network of Aviation
Service Facilities (ASFs), covering all the major
airports in India.

‘HP Aviation’ fuelling service meets stringent


international regulations in addition to the various
rules and regulations stipulated by various agencies/
regulatory bodies. To better serve all non-scheduled
clients, improve customer satisfaction and keep our
commitment to on-time fuel delivery, HP Aviation
operates a unique single point of contact service HP
Aviation Hub, which is accessible round-the-clock ⊲ HP Aviation - Expanding Wings through
and operates as per stringent global standards. Customer Connect

Highlights
Æ Achieved ATF sales of ~693 TMT, registering a
growth of over 33.1%

Æ HP Aviation was bestowed with the “Best Aviation


Fuel Provider” award from ASSOCHAM

Æ With the addition of new aviation refuelling facilities


at Kannur (Kerala) and Mopa (Goa), we now have 54
Aviation Service Facilities (ASFs), including defence
and open access locations across the country.

Æ Secured business with national and


international airlines.
Æ Conducted training programme on ATF fuel-
handling for several nominated Indian Air
Force officers.

Æ Carried out Refuelling of VVIP flight during January


– March 2023.

Æ Commissioned ATF facility at Vashi Terminal and


Irugur Depots.

Natural Gas
To create a gas-based economy, the Government of Æ On an all India and standalone basis, we added CNG
India has envisaged increasing the share of natural facilities at 301 retail outlets during the year, taking
gas in India’s primary energy mix to 15% by 2030. We the total number of our retail outlets with CNG
have also undertaken several initiatives to expand facilities to 1,387.
our presence in the natural gas sector by increasing Æ Marketed 257 TMT of Natural Gas, strengthening
our footprints in India’s midstream and downstream our presence in this business segment.
gas markets. We are participating in the import,
Æ Towards natural gas transportation in the country,
regasification, transportation, City Gas Distribution
we are participating in the development of
(CGD) networks and marketing value chains.
three cross-country natural gas pipelines, i.e.
Highlights the Mehsana-Bathinda pipeline, the Bathinda-
Gurdaspur pipeline and the Mallavaram-Bhilwara-
Æ For import and regasification, HPCL LNG Ltd. a
Bhopal-Vijaipur pipeline, through JV companies
100% subsidiary of HPCL, is constructing a 5 MMTPA
viz. GSPL India Gasnet Limited (GIGL) and GSPL
LNG regasification terminal at Chhara Port (Gir
India Transco Limited (GITL). By 2022-23, GIGL had
Somnath district) in Gujarat. The terminal has been
commissioned about 1,254 km of gas pipeline. GITL
mechanically completed and pre-commissioning
activities have been initiated.
Sustainability Report 2022-23 127
Economic Performance

is operating a 365 km gas pipeline for the supply of Æ Domestic PNG supply is continuing in 3 cities and
natural gas to the Ramagundam Fertiliser Plant. industrial PNG supply is being given to 13 industrial
Æ Overall, we, along with our JVCs, have the customers in GAs authorised to HPCL.
authorisation for setting up of CGD networks in 23 Æ In addition, we operate a Network of 1 mother
GAs in 12 States. station and 18 daughter booster stations in and
Æ We are actively participating in the establishment around the city of Ahmedabad.
of CGD networks both on our own and through JVs, Æ In addition to retail sales through City Gas
namely Aavantika Gas Limited (AGL), Bhagyanagar Distribution network, we are also expanding our
Gas Limited (BGL), Godavari Gas Pvt. Limited customer base to include large industrial units,
(GGPL) and HPOIL Gas Pvt. Limited. CGD networks including fertiliser plants, refineries, petchem
are being operated in nine geographical areas plants and CGD companies. During 2022-23, we
(GAs) by these JVs in the states of Madhya Pradesh commenced gas supply to 19 new customers.
Andhra Pradesh, Telangana, Maharashtra and Æ We also commenced the sourcing and marketing
Haryana. 30 CNG stations were commissioned, and of gas through the Indian Gas Exchange, adding
more than 59,000 domestic PNG connections were flexibility to operations.
added during the year through these JVCs in 2022-
Æ While building the infrastructure for the marketing
23.
of natural gas in the country, the sourcing of
Æ On a standalone basis, we are currently building natural gas is also being secured through various
City Gas Distribution networks in 13 GAs contracts. We have entered into long-term gas-
(Geographic Areas) in 7 states, i.e. Haryana, Uttar sourcing contracts from ultra-deep-water fields
Pradesh, Uttarakhand, Bihar, Rajasthan, Jharkhand in the KG Basin and other indigenous sources.
and West Bengal, across 36 districts. We are also in the process of sourcing LNG at a
Æ During the year, we commissioned 86 new CNG competitive price from the international market to
stations in the GAs authorised to HPCL, taking the balance our gas portfolio and meet our captive and
total number of CNG stations in HPCL-authorised marketing demand.
GAs to 209. Æ We released 63 LOIs for CBG plants during the year,
Æ In the CGD pipeline network, 2,110-inch km of steel taking the cumulative number to 476 LOIs and plant
pipeline, 1,233 km of MDPE pipeline and 22,733 new capacity to 943 TMTPA.
PNG connections were released during the year. Æ Cumulatively commissioned 4 CBG Plants.

⊲ Expanding cleaner fuel offerings through HPCL LNG Limited

128 Hindustan Petroleum Corporation Limited


Supplies, Operations and Distribution
Supplies, operations & distribution (SOD) Æ Sold 2,74,816 KL of biodiesel-blended HSD.
department ensures effective petroleum product
Æ Launched E20 fuel at 23 ROs along with
distribution and marketing across India. A robust
Green Mobility Rally during February 2023 by
supply chain and infrastructure ensures seamless
Hon’ble PM.
product movement with assured quality and
quantity at optimum cost. Æ Implemented Phase-III Electromechanical Locking
at 32 locations.
SOD continued to play a pivotal role in maintaining
a robust supply chain management and seamless Æ Installed new VTS device in 100% tank
product movement from the supply source to the trucks under POL contracts and successfully
end consumer in the stipulated time, utilising the implemented No VTS No LOAs.
strong infrastructure of 81 terminals/depots. Æ As a first in industry, completed installation and
commissioning of mass flow meters (MFM) for
Highlights
MS and HSD for vessel unloading in jetty lines at
Æ Recorded significant gains in overall throughput Mundra Terminal.
performance and productivity across the network
of depots and petroleum product pipelines. Æ Commissioned 15 vapour recovery units (VRUs)
taking the total to 43.
Æ Achieved an all-time high throughput of 57.3 MMT
in supply and distribution of petroleum products Æ Commissioned a new Terminal at Dharmapuri
with a growth of 13.9% and ensured uninterrupted (Tamil Nadu) and a POL depot at Sitarganj
product availability across the country. (Uttarakhand); existing POL depot at Kozhikode,
Kerala, was recommissioned after a major
Æ Achieved an overall ethanol blending of 10.59% revamp which helps enhance product distribution
by blending ethanol in Motor Spirit thereby saved capabilities in the state.
GHG emissions exceeding MoU parameters set by
the GOI. First OMC to commence 12% blending
from December 2022. Received recognition from
CII for exemplary performance in improving
ethanol logistics in the country.

⊲ Promoting learning culture, strengthening team spirit & collaboration among the Officers through QUISOD

Sustainability Report 2022-23 129


Economic Performance

Project and Pipelines


We have a high level of competency in the Æ Obtained PNGRB authorisation for laying 215 Km
execution of pipeline projects and managing X 10” LPG Pipeline from Haldia to Panagarh in
pipeline operations effectively to optimise costs and West Bengal.
enhance efficiencies.
Æ Implemented first-of-its-kind in-industry
Highlights innovations such as Smart Pump Stations in VDPL
Project, Smart SV Stations in HCPL Project, PIG
Æ Recorded the highest-ever pipeline throughput of
Valves in SV Stations in HCPL Project, Outdoor
23.25 MMT, registering a growth of 16.8%.
Gas-insulated Switchgear in HCPL Project.
Æ Commissioned 697 km long Vijayawada-
Æ To leverage technology for enhanced productivity
Dharmapuri pipeline (VDPL), along with a major
and safety in operations, a trial run of the survey
greenfield terminal and the 650 km long Hassan-
of cross-country pipelines using drones has
Cherlapalli LPG pipeline (HCPL) increasing the
been done during the year. We are the first
operating cross-country pipeline network to 5,132
to conduct a drone-run covering 51 km in the
km; petroleum-product-pipeline mainline capacity
Rewari-Kanpur pipeline to survey a section of our
has gone up to 35.2 MMTPA.
pipeline network.
Æ Commissioned green field marketing terminal
Æ Commissioned Phase-1 facilities for Indore
at Dharmapuri, Tamil Nadu; 697 km long 16” dia
Revamping project, New Sitarganj and
Vijayawada-Dharmapuri pipeline (VDPL); 650 km
Elathur Depots.
long 14” dia Hassan-Cherlapalli pipeline (HCPL)

Æ Achieved mechanical completion of 216 Km long,


18” dia Barmer Palanpur Pipeline (BPPL)

⊲ Interaction of C&MD with Project team of Hassan-Cheralapalli LPG Pipeline

130 Hindustan Petroleum Corporation Limited


Financial Performance
We continued to meet the nation’s energy needs even while marketing margins were suppressed for certain
petroleum products.

While navigating the challenging environments, gross sales registered a growth of 24.7% in 2022-23, rising
from ` 3,72,642 Crore in 2021-22 to ` 4,64,684 Crore, reaching a new peak.

Financial Performance 2022-23


Total Dividend Payout per share (`) - Dividend declared for the year -
Gross Sales (` Crore) 4,64,683.79
EBITDA (` Crore) (5,453.09)
EPS (`) (63.26)
Networth (` Crore) 27,713.43

Economic Value Generated (K Crore) 2022-23


Total Revenue 4,68,261.49
Profit After Tax (8,974.03)

Economic Value Distributed (K Crore) 2022-23


Operating and Service Cost (Including Cost of Materials Consumed, Purchases, Stores & Spares, 4,41,401.38
Utilities)
Employee Wages and Benefits 2,962.81
Payments to Providers of Capital 4,117.82
Contribution to Exchequer 92,204.21
Community Investment 154.85#
# Includes ` 58.74 Crore of provision towards unspent CSR for the Financial Year 2022-23 which has been deposited and will be
spent subsequently in accordance with CSR Rules.

Financial assistance received from government (K Crore) 2022-23


Subsidies 102.48
Investment grants, research and development grants and other relevant types of grants 5,781.90

HPCL does not make any contribution towards any political parties either financially or through in-kind contributions.

Average GRMs for 2022-23 were US$ 12.09 per Ongoing Projects
barrel compared to US$ 7.19 per barrel during
the corresponding period of the previous year, Infrastructure continues to be our key strength in
recording an increase of 68.2%. The exceptionally delivering products efficiently and at competitive
high international oil prices along with suppressed prices to customers.
marketing margins on select transport fuels,
We undertake infrastructure investments towards
severely impacted the profitability, resulting in Net
efficiency improvement, expanding capacities,
Loss of ` 8,974 Crore in 2022-23.
modernising facilities & logistics improvement,
The Board of Directors, after taking into account renewables, biofuels, etc. During the year, we made
the Financial Results of the Corporation, has not a capex investment of ` 10,853.71 Crore.
recommended any dividend for the financial year
2022-23. A final dividend of ` 14 per share was
recommended for 2021-22.

As a responsible corporate, the approach followed


by the Corporation towards Tax is governed by the
elements of (a) Strict Statutory Tax Compliance
(b) Minimising Tax litigation (c) Contesting the
superfluous tax demands (iv) Availing all the eligible
tax set off at the immediate available opportunity.

Sustainability Report 2022-23 131


Economic Performance

Status of a few ongoing infrastructure Æ Given the market’s projected expansion and
projects include: the present low per capita consumption of
petrochemicals in the country, we have prioritised
Æ Other units of Visakh Refinery Modernisation expanding our petrochemical portfolio. Large-
Project (VRMP) to enhance the refining capacity scale investments are underway for building
to 15 MMTPA are in advanced state of completion. petrochemical manufacturing capacities through
Æ The 5 MMTPA LNG terminal at Chhara, Gujarat, the joint venture route. For marketing our own-
being constructed through our subsidiary produced and externally sourced petrochemical
company, HPCL LNG Limited, achieved products, the ‘Route to Market’ strategy has been
mechanical completion in March 2023. developed and is under implementation.

Æ HPCL Rajasthan Refinery Limited (HRRL) project Æ With respect to alternative fuels and energy
has already made significant progress, with major storage, new avenues of value creation in the
process turnkey contracts and LSTK contracts for electric vehicle (EV) ecosystem, including battery
associated works/utilities already in place. The swapping and energy storage solutions, are being
project construction work is underway at the site explored in collaboration with various technology
in full swing. start-ups, OEMs, etc.

Æ A number of projects are underway to strengthen Some ongoing sustainable energy initiatives through
our distribution network by expanding pipeline our start-ups & Green R&D Centre at Bengaluru:
network and capacities for enhanced logistic
Æ Tie-ups with startups for:
efficiencies and associated environmental
benefits with an estimated investment of over • Manufacture of air-quality monitoring devices.
` 2,000 Crore. These include the Barmer Palanpur
• Promoting circularity of used cooking oil.
Pipeline, Bathinda Sangrur product pipeline,
the Haldia- Panagarh LPG pipeline. The pipeline • Renewable energy generation through vertical
projects will increase our pipeline capacity to wind turbine installation.
over 40 MMTPA and network length by 500 km
• Design of carbon emitter dashboard to monitor
to about 5,600 kilometres thud significantly
carbon emission and predictive maintenance of
strengthening our position in key markets.
heat exchanger train.
Æ We have also teamed up with other PSU OMCs in
Æ Tie-ups with Tata Power, various start-ups and
development of India’s longest LPG pipeline from
established companies for undertaking EV
Kandla to Gorakhpur (~2,800 km) through joint
charging station pilots. Battery swapping stations
venture route.
with Honda Power.
Æ Other projects include the revamping of
Æ DFR for joint collaboration with the Shell and
Raipur and Vashi POL terminals, new LPG
other industries in Mumbai for forming a CCUS
plants at Varanasi (Uttar Pradesh) and Abu
Cluster Consortium in Mumbai.
Road (Rajasthan) and the 80TMT LPG Cavern
at Mangalore. Æ Jointly bidding for supply of Green Ammonia.

Æ The 370 TPA green hydrogen plant at the Visakh Æ Working on developing and marketing
Refinery is in an advanced stage of completion. lithium battery products for the Indian and
global markets.

⊲ Expanding footprints in EV charging infrastructure through collaboration

132 Hindustan Petroleum Corporation Limited


Some of the Pilot Projects supported for Startups

Monter Technologies VayuJal PetroBot Technologies


The innovative technology This IIT Madras-incubated PetroBot Technologies is
for promoting clean energy startup uses nano-structure an Indian deep technology
will combine multiple wind patterned surfaces to startup providing real-time
turbines and store the energy condense atmospheric water In-service storage Tank
in a flywheel. The technology vapour, which is later purified Inspection Services (ITIS)
is validated by IITB. and remineralised into and innovative robotic NDT
water, using cartridges for solutions using indigenously
adding minerals like calcium, developed remotely operated
magnesium, potassium Robotic crawlers.
Benefits
and copper.
20% savings in discom charges
for 20 years with a power
backup of up to 6 hours Benefits
daily, thus no power outages; Benefits Their innovative solution
savings of 1.04 tonnes of CO2 This offers systems with a enables non-destructive
per MWH of power generation production capacity of 40-2k testing without any tank
litres per day. outage, without productivity
We have placed a work order loss, without any sludge
to install the prototype in HP We have provided an disposal requirements
Green R&D Centre. opportunity of a paid pilot and without any
project for the startup in human intervention.
HPCL Rajasthan Refinery Ltd.
site and install 120 LPD at We have provided the
refinery site. startup to carry out paid pilot
project for two tanks in the
Mumbai refinery.

Integrated Margin Management


The Integrated Margin Management (IMM) group For sustaining continual improvement, ideas
operates with the objective of enhancing Net generated across the corporation are driven through
Corporate Realisation (NCR) by planning and a structured ‘Initiative Management Office’ called
optimising end-to-end supply chain logistics from ‘Idea Junction’ and are regularly tracked. During
crude oil to customers and aligning various strategic 2022-23, Idea Junction crossed the landmark of
business units to a common corporate goal. IMM receiving 20,000 ideas with a cumulative employee
continued its efforts during 2022-23 to drive the participation rate of 59%. The group ran monthly
planning operations of HPCL with the objective of theme-based idea campaigns and conducted idea
enhancing net corporate realisation. workshops to enhance employee participation and
focused idea generation.
IMM leveraged margin improvement opportunities

20,000
by planning for processing of crude grades
available at competitive rates at both our refineries.
Our refineries achieved the highest-ever crude
throughput of 19.09 MMT during the year with Ideas received by
meticulous planning. Overall value realisation was Idea Junction
enhanced with a focus on increased production and
sales of higher-value products and the introduction
of new niche products such as HP Super Solvent,
Low Aromatics Kerosene, Low Sulphur Fuel Oil,
etc. Through meticulous planning, IMM enabled the
highest cross-country pipeline throughput thereby
enhancing asset utilisation.

Sustainability Report 2022-23 133


Economic Performance

Central Procurement Organisation


The Central Procurement Organisation (CPO) at HPCL We have embraced FOSS (Free Open - Source
has enhanced standardisation, competitiveness, Software) technologies such as enterprise messaging,
efficiency and transparency, including ensuring object storage, API Manager and FOSS databases to
policy compliance in handling procurement for meet the changing requirements of service delivery.
various SBUs on a centralised basis. CPO ensures the By leveraging FOSS technologies, we have been
adoption of various government directives/policies able to keep up with the rapidly evolving technology
to strengthen the ecosystem for MSMEs and promote landscape and provide top-notch services to
the indigenisation of products and services. It has also our stakeholders.
helped in effective vendor management.
The Continuous Integration and Continuous Delivery
CPO has actively driven various initiatives undertaken (CI/CD) methodology has now been integrated with
by the Government of India to strengthen the the Software Development Life Cycle (SDLC) and
ecosystem for MSEs in the country. Procurement for Development, Security and Operations (DevSecOps)
commonly used goods and services through GeM approach. The DevSecOPs approach integrates
(Government e-marketplace) was encouraged. The security as a shared responsibility throughout the
concerted efforts to onboard MSE vendors under entire IT lifecycle. With this, we ensure the timely
TReDS (Trade Receivable Discounting System) delivery of high-quality software that meets security
resulted in vendor invoices of ` 351 Crore being standards and complies with regulatory requirements.
discounted through the platform.
ERP Modernisation: Enterprise Resource Planning
(ERP) systems help businesses to streamline their
Going Digital operations, improve data management and facilitate
Technology has always been the integral component collaboration and innovation. The ERP modernisation
of our business strategy and we lay strong thrust on project, aimed at building a robust digital foundation
effective adoption of technology across all spheres in HPCL, has reached an advanced stage of
of business activities. We have a well-calibrated completion during 2022-23. The project shall help us
digital strategy and vision in place, which is helping in enhancing productivity in view of the availability of
us meet varying customer expectations and create facilities for handling large amounts of both structured
technological edge to stay ahead in the competitive and unstructured data, enhanced real-time analytic
energy market space. Our digital strategy & vision capabilities, scalable solutions, better transaction
guides the ongoing digital transformation programme controls, flexibility and versatility.
‘Parikalp’, which envisages a comprehensive digital
During 2022-23, we have made digital acceleration
make-over across the corporation with an end-to-
a top priority and launched several initiatives to
end technological intervention approach extending
achieve our digital acceleration objectives for
from supply chain and internal business processes to
treading the digital transformation journey towards
enhance customer experience, increase operational
improving processes, increasing productivity,
efficiency, achieve cost leadership, enhance
enhancing customer value and convenience. The
productivity & service delivery and ensure safety
digital transformation journey encompasses multiple
& security.
layers, such as modernisation of our technological
Our digital strategy is inseparable from our foundation, reimagining and redesigning existing
sustainability objectives and future plans which processes to leverage the capabilities of digital
are tied to corporation’s net zero commitments technologies and improving the interactions and
and excellence in corporate citizenship. Several experiences that customers have with us.
sustainability initiatives undertaken by us are
Highlights
technology-centric in nature and our ongoing
digital transformation is going hand-in-hand with Information Technology (IT) activities have been
Corporation’s ESG roadmap. aligned with SBUs to keep pace with ever-growing and
dynamic business requirements.
We continue to focus on technology for business Æ To meet the high computing demand, IT
transformation and for delivering value to our infrastructure was augmented with the latest and
customers. A digital strategy is in place and various most advanced technologies.
digital transformation projects have been completed
or are ongoing. Æ As part of modernisation of the technological
foundation, our ERP Modernisation Project
‘Aarohan’ has been completed successfully.

134 Hindustan Petroleum Corporation Limited


⊲ Launch of AR/VR training and simulation facilities at Visakh Refinery

Æ Project Parikalp: Under this project, HPCL is


extensively leveraging major digital technologies,
viz. AI/ML, augmented & virtual reality, IoT,
Robotics, among others, across various
spheres of business as part of the digital
transformation roadmap.

Æ To enable effective inventory management


of products across the supply chain, we have
implemented an AI/ML-based demand forecasting
solution that predicts the demand for various
products at the granular level of fuel stations, LPG
distributorships and institutional customers with
high accuracy.

Æ Towards the digital acceleration of the training Æ An advanced digital experience centre has
process, we have launched training practices with been set up at HPMDI-Nigdi to demonstrate the
Virtual Reality (VR) techniques in both refineries. seamless immersive application of various digital
Implementation of virtual reality techniques is technologies. AR/VR-based training and simulation
adding value with enhanced engagement, cost facilities have been installed at Mumbai and Visakh
& time efficiencies, ensuring a safe, sustainable refineries to create a virtual plant environment
environment and scalability in the learning and where employees can undertake training and
development of our employees. equipment operations safely before working in the
actual plant.
Æ To enable effective inventory management of
products across the supply chain, an AI/ML- Æ We commenced implementation of an advanced
based demand forecasting solution has been analytics and visualisation solution with a unified
implemented that predicts the demand for various data repository. Through this initiative, we aim to
products at the granular level of fuel stations, LPG generate a number of analytics-based outcomes in
distributorships and institutional customers with the areas of customer, logistics, pricing and Human
high accuracy. Resource management. This initiative is expected to
strengthen the data-driven decision making across
Æ We have implemented an application giving a
the organisation, increase the digital inclusion in
comprehensive overview of the entire operation,
the workforce by creating citizen data analysts and
i.e. from ‘Crude to Customer’ to have strategic
increase the workforce productivity.
insights into our refinery plans and operations.
This application provides both summarised and
detailed views of various parameters of refinery
operation, such as crude landed cost, crude
supplier plan vs. actual uplift, production, inventory,
etc. The application helps in making informed
decisions and taking proactive measures to improve
operational efficiencies.

Sustainability Report 2022-23 135


Economic Performance

Æ We have undertaken numerous initiatives, including Æ End-point redemption QR coupons: HPPAY and
periodic digital maturity assessments, an annual Paytm-based mini application for Mechanics,
digital conference, comprehensive communication end customers - more than 6 Lakh unique
& workforce engagement on digital, periodic users registered.
quizzes and customised learning & development
Æ Usage of social media for HP Lubricants brand
programmes to facilitate the ongoing digital
building: Connecting with Mechanic Community
transformation and create an enabling culture and
through Mechanik TV on Youtube.
environment, in various areas of digitalisation.
These efforts are aimed at promoting the effective Æ Influencer Videos: Reached more than 2 Million
usage of digital technologies in HPCL, enhancing unique views through engaging with social
digital inclusion in the workforce and augmenting media influencers.
digital skills & capabilities.
Æ Some of other projects undertaken at various SBUs
Æ Launched pilot for CBDC Digital Rupee include: Development of reconstitution portal,
(e`) at 4 outlets with IDFC First Bank in Feasibility study portal for new Retail Outlets, OMC
controlled environment. Sales data exchange for industry weekly reporting,
CGD rates consolidation at HQO level, DT Plus:
Æ Piloted digital payment through Static QR,
new development & old data migration for Retail
conceptualised to promote digital transactions in
SBU; Non-Domestic booking application for end
LPG SBU
customer, Central Accounting for LPG distributor
Æ E-cash memo for all domestic LPG customers settlement for online payments for LBU SBU,
Vulnerability Index application, MGKM (Minimum
Æ Launched India’s first LPG Cylinder Robotic Loading
Guaranteed Km) implemented at Sagar, Vashi &
System at Nashik LPG Plant
Ajmer depots, Dedicated ethanol plant monitoring
Æ Implemented AI based Video Analytics at 92 system for OMCs, New VTS implementation for
Marketing Locations and 200 real-time and 3,638 SOD SBU.
offline Retail Outlets

Æ Carried out digitisation of earth pit testing, a Cybersecurity


critical safety requirement and on boarded 11,279 Cybersecurity has been a key focus area for our
Retail Outlets onto a digital platform. This was management. Several security upgrade projects
implemented by on boarding electrical contractors were taken up during the year. Our data centres are
in the VA (Visual analytics) portal, enabling them to certified with latest ISO 27001 security standards.
conduct on-line testing of Earth Pit resistance. These upgrade projects involved adoption of latest
Æ Conducted a successful sortie of 51 km non-stop technologies and features. Apart from signature-
drone surveillance with live video feed for the based solutions, behaviour-based technologies
first time in the country at RRKPL. Pilot is being leveraging AI/ML were adopted for identification of
implemented at Rewari. anomalous/malicious behaviour of any entity and to
aid in early identification of a breach. Other important
Æ HP Buddy app extended for I&C Customers for initiatives like network segmentation and active
visibility of transactions & supplies directory domain segregation were implemented to
Æ Chatbot made live for LPG, Lubes, Retail & restrict the blast radius in case of a breach. Inventory
Refinery Purchase was also a priority. A real-time inventory helps act
on threat intel quickly and efficiently. Cybersecurity
Æ Launched HP Pay with unified services (Retail, LPG training was made mandatory for all employees.
& Lubes) Several phishing campaigns were conducted to
Æ Generation of revenue using Single Customer View identify and educate vulnerable employees.
thru 521 Cross & 3,117 External leads generation
During the year, no cybersecurity incident was
Æ Conducted 18 campaigns covering 60 Lakh reported, there were no complaints received with
customers using Customer Engagement Platform respect to cybersecurity and data privacy and there
were no instances of data breach.
Æ Achieved Go-live of MoP&NG driven Common LPG
Data Platform (CLDP) by active coordination with
OMCs and Government agencies.

Æ Implemented solution for I&C Customers to track


Ex-MI supplies.

136 Hindustan Petroleum Corporation Limited


Alignment of our Business
Practices to
India’s Nationally Determined Contributions
No NDC Page No

1 'LiFE'-'Lifestyle for Environment' as a key to combating climate change 62-63

2 Adopting a climate friendly and a cleaner path than the one followed hitherto by others at 58-85
corresponding level of economic development.

3 Reducing Emissions Intensity of GDP by 45 percent by 2030, from 2005 level 67-71, 74-79

4 Achieve about 50 percent cumulative electric power installed capacity from non-fossil 64-70
fuel-based energy resources by 2030, with the help of transfer of technology and low-cost
international finance including from Green Climate Fund (GCF)

5 Creation of an additional carbon sink of 2.5 to 3 billion tonnes of CO2 equivalent through 72-73
additional forest and tree cover by 2030.

6 Better Adaptation to Climate Change 48-49, 58-85, 134-135

8 Building Capacities for diffusing cutting edge climate technology 76-77, 92-96

NDCs applicable to HPCL

UNGC Principles
No Category Description Reference Page no.

1 Human Rights Businesses should support and respect the protection of Human Rights 98
internationally proclaimed human rights

2 Human Rights Businesses should make sure that they are not complicit in Human Rights 98
human rights abuses

3 Labour Businesses should uphold the freedom of association Human Rights 98


and the effective recognition of the right to collective
bargaining

4 Labour Businesses should uphold the elimination of all forms of Human Rights 98
forced and compulsory labour

5 Labour Businesses should uphold the effective abolition of child Human Rights 98
labour

6 Labour Businesses should uphold the elimination of discrimination Talent 98-99


in respect of employment and occupation Acquisition,
Human Rights

7 Environment Businesses should support a precautionary approach to Acquisition, 58-59


environmental challenges Human Rights

8 Environment Businesses should undertake initiatives to promote greater Environmental 58-85


environmental responsibility Performance

9 Environment Businesses should encourage the development and Environmental 58-85


diffusion of environmentally friendly technologies Performance

10 Anti - Businesses should work against corruption in all its forms, Environmental 39-47
Corruption including extortion and bribery Performance

Sustainability Report 2022-23 137


Alignment of our Business Practices to

Task Force on Climate-related Financial Disclosures


Core Elements Recommended Disclosure Location of Disclosure

Governance Describe the Board’s oversight of climate-related risks and opportunities. 32-47

Describe management’s role in assessing and managing 32-47


climate-related risks and opportunities.

Strategy Describe the climate-related risks and opportunities the organization has 48-49
identified over the short, medium, and long term.

Describe the impact of climate related risks and opportunities on the 48-49
organization’s businesses, strategy, and financial planning.

Describe the resilience of the organization’s strategy, taking into consideration 48-49
different climate-related scenarios, including a 2°C or lower scenario.

Risk Management Describe the organization’s processes for identifying and assessing climate- 40-41
related risks.

Describe the organization’s processes for managing climate-related risks. 40-41

Describe how processes for identifying, assessing, and managing climate- 40-41
related risks are integrated into the organization’s overall risk management.

Metrics and Targets Disclose the metrics used by the organization to assess climate related risks 61
and opportunities in line with its strategy and risk management process.

Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) 67


emissions, and the related risks.

Describe the targets used by the organization to manage climate-related risks 54 (Net Zero)
and opportunities and performance against targets.

138 Hindustan Petroleum Corporation Limited


Independent Assurance
Statement
INDEPENDENT ASSURANCE STATEMENT

To:
Hindustan Petroleum Corporation Limited
Petroleum House, 17, Jamshedji Tata Road,
Churchgate, Mumbai,
Maharashtra 400020

Introduction and objectives of work


Bureau Veritas has been engaged by Hindustan Petroleum Corporation Limited (HPCL) to
provide limited assurance of its sustainability report 2022-23 (hereafter referred to as “the
Report”). This Assurance Statement applies to the related information included within the
scope of work described below:
➢ An assessment of the data collection and reporting methods for the selected sustainability
performance indicators.
➢ Checking of existing methods of data collection process and methods
➢ Checking, on a sample basis, of evidence supporting the data mentioned in the
Sustainability Report.
➢ Verification of the sample data and information on selected material topics reported by
HPCL for the defined reporting period.
➢ Assessment of the consistency between the data for the selected sustainability
performance indicators and the related written comments in the narrative of the Report.
➢ The Company's compliance with legal obligations/disclosures.
➢ The General and topic-specific disclosures are subject to assurance.
➢ Completion of assurance statement for inclusion in the report, which will reflect the
verification of findings and conclusion.
➢ Review of sustainability performance non-financial disclosures data carried out based on
the review of data provided for respective units along with related backup; site visits and
discussions with the concerned personnel for HPCL Limited's operations at Silvassa
Lubes Plant, MHMBPL Mangalore pipeline, Dumdum ASF, Secunderabad Terminal, Auto
care center Bandra, Hoshiarpur LPG Plant, Mumbai Refinery and Corporate office
verifying key performance disclosures through the data provided:
• Testing reliability and accuracy of data on a sample basis
• Reviewing the processes deployed for collection, compilation, and reporting of
sustainability performance non-financial disclosures.
• Gap assessment in the data compilation against each non-financial disclosure and
present Sustainability Report w.r.t. GRI Standard Framework
Classifying observations and findings and issuance of Assurance Statement.
Assurance over full sustainability report
The scope of our work was limited to assurance over data and information included in the
Sustainability Report (‘the Report’) for the period 1st April 2022 to 31st March 2023 based on
GRI Standards done of the following operations:

• On-site assessments were conducted for this assurance at the HPCL Mumbai
Refinery and their headquarters in Mumbai.
• Off-site (virtual) assessments were conducted for the following locations:
o LPG Plant, Hoshiarpur, Punjab
o SOD Terminal, Secunderabad, Telangana
o Lubes Plant, Silvassa
o Aviation Service Facility, Dumdum, Kolkata
o Mangalore-Hassan-Mysore-Bangalore LPG Pipeline (MHMBPL), Mangalore,
Karnataka
o Retail Outlet (Petrol Pump), Auto Care Centre, Bandra, Maharashtra

The review of the sustainability performance non-financial disclosures is limited to the


above-mentioned operations of HPCL only.

Ref: BV_CLIENT_JD18819236_2023/09/29 ASR_T10_270823 Page 1 of 5

Sustainability Report 2022-23 139


Independent Assurance Statement

An assessment of the procedures or approaches followed for data compilation and reporting
of the sustainability performance non-financial disclosures for specific operations was carried
out as follows:
• Testing, on a sample basis, of evidence supporting the data.
• Verification of the sample data evidence and information on selected material topics
reported at the above-mentioned operations for the defined reporting period.
• Assessment of the suitability between the backup data for the selected sustainability
performance non-financial disclosures and the information presented in the
sustainability report.
• The General and topic-specific sustainability non-financial standard disclosures are
subject to limited assurance based on the extent of information available for
assurance
• Completion of assurance statement for inclusion in the report reflecting the
verification, findings, and conclusion of the disclosure’s assurance. Gap assessment
as per GRI standards highlights findings during verification of disclosures, draft
assurance statement, and final signed assurance statement as per GRI standards
compliance

The Universal and Topic Specific Standard Disclosures of subject to assurance were as
follows:

Universal Standard

General Disclosures

➢ Organizational and its reporting practices (2-1 to 2-5, 2-16, 2-18, 2-21, 2-25, 2-27)
➢ Activities and Workers (2-6 to 2-8)
➢ Governance (2-9 to 2-15,2-17, 2-19, 2-20)
➢ Strategy, policies, and practices (2-22 to 2-26, 2-28)
➢ Stakeholder Engagement (2-29 to 2-30)

Disclosures on Material topics

➢ Process to determine material topics (3-1)


➢ List of material topics (3-2)
➢ Management of material topic (3-3)

Topic Disclosures

➢ Direct Economic value generated and distributed (201-1)


➢ Financial implications and other risks and opportunities due to climate change (201-2)
➢ Defined benefit plan obligations & other retirement plans (201-3)
➢ Financial assistance received from government (201-4)
➢ Market Presence (202-1 to 202-2)
➢ Indirect Economic Impacts (203-1 203-2) and Procurement Practices (204-1)
➢ Anticorruption (205-1 to 205-3) and Anti-competitive Behavior (206-1)
➢ Tax (207-1 to 207- 4)

Topic-Specific Standard Disclosures

Environment

➢ Energy (302-1 to 302-4)


➢ Water and Effluent (303-3 to 303-5)
➢ Biodiversity (304-1, 304-4)
➢ Emissions (305-1 to 305-4, 305-6, 305-7)
➢ Waste (306-1 to 306-5)

Ref: BV_CLIENT_JD18819236_2023/09/29 ASR_T10_270823 Page 2 of 5

140 Hindustan Petroleum Corporation Limited


➢ Supplier Environment assessment (308- 1, 308-2))

Social
➢ Employment (401-1, 401-2, 401-3)
➢ Labour Management (402-1)
➢ Occupational Health and Safety (403-1 to 403-10)
➢ Training and Education (404-1 to 403)
➢ Diversity and Equal Opportunity (405-1, 405-2) and Non-Discrimination (406 -1)
➢ Freedom of association and collective Bargaining (407-1)
➢ Child Labour (408-1) and Forced or Compulsory Labor (409-1)
➢ Security Practices (410-1)
➢ Local Communities (413-1, 413-2) and Supplier Social Assessment (414-1, 414-2)
➢ Customer health & safety (416-1, 416-2)
➢ Marketing and Labelling (417-1, 417-2, 417-3) and Customer Privacy (418-1)

Reporting criteria
➢ Hindustan Petroleum Corporation Limited has adopted the below criteria for preparing
the report:
• Global Reporting Initiative (GRI) Standards 2021 and sector Standard GRI 11:
Oil and Gas Sector 2021, as set out at
https://www.globalreporting.org/standards/standards-development/sector-
standard-for-oil-and-gas/ where the methodology can be found.
Limitations and Exclusions
Excluded from the scope of our work is any verification of information relating to:
▪ Activities outside the defined verification period;
▪ Positional statements (expressions of opinion, belief, aim, or future intention by
Hindustan Petroleum Corporation Limited (HPCL) and statements of future
commitment;
▪ The assurance does not extend to the activities and operations of “HPCL” outside of
the scope and geographical boundaries mentioned in the report as well as the
operations undertaken by any other entity that may be associated with or have a
business relationship with “HPCL”.
▪ Compliance with any Environmental, Social, and legal issues related to the regulatory
authority.
▪ Any of the statements related to company aspect or reputation.

▪ This moderate assurance engagement relies on a risk-based selected sample of


sustainability data and the associated limitations that this entails. The reliability of the
reported data is dependent on the accuracy of metering and other production
measurement arrangements employed at the site level, not addressed as part of this
assurance]. This independent statement should not be relied upon to detect all errors,
omissions, or misstatements that may exist.

Responsibilities
The preparation and presentation of the information in the Report are the sole responsibility of
the management of Hindustan Petroleum Corporation Limited (HPCL).
Bureau Veritas was not involved in the drafting of the Report or of the Reporting Criteria. Our
responsibilities were to:
• providing moderate assurance about whether the assured Information has been
prepared in accordance with the Reporting Criteria;
• form an independent conclusion based on the assurance procedures performed and
evidence obtained; and

Ref: BV_CLIENT_JD18819236_2023/09/29 ASR_T10_270823 Page 3 of 5

Sustainability Report 2022-23 141


Independent Assurance Statement

• report our conclusions to the management of Hindustan Petroleum Corporation


Limited (HPCL).

Assessment Standard
Bureau Veritas conducted assurance process in line with the requirements of the Assurance
standard AA1000 AS V3, Type 2 assurance as per the principles of AA1000 AS: inclusivity,
materiality, responsiveness and Impact. Under this standard, Bureau Veritas has reviewed
the information presented in the report against the characteristics of relevance, completeness,
materiality, reliability, neutrality, and understandability. Moderate assurance consists primarily
of inquiries and analytical procedures. The procedures performed in a limited assurance,
engagement vary in nature and timing and are less in extent than for a reasonable assurance
engagement.

Summary of work performed


As part of our independent verification, our work included:
1. Assessing the appropriateness of the Reporting Criteria for the Selected Information;
2. Conducting interviews with relevant personnel of Hindustan Petroleum Corporation
Limited (HPCL).
3. Reviewing the data collection and consolidation processes used to compile Selected
Information, including assessing assumptions made, and the data scope and
reporting boundaries;
4. Reviewing documentary evidence provided by Hindustan Petroleum Corporation
Limited (HPCL);
5. Reviewing Hindustan Petroleum Corporation Limited (HPCL) systems for quantitative
data aggregation and analysis;
6. Assessing the disclosure and presentation of the Selected Information to ensure
consistency with assured information.
7. Other verification activities:
a. carrying out site visit to HPCL Mumbai Refinery, as per scope of audit. This
site contributes to over 95% of the Selected Information.
b. confirmation of accuracy of information with third parties and/or external
stakeholders
c. reperforming [a selection of] aggregation calculations of the Selected
Information
d. reperforming greenhouse gas emissions conversion calculations
e. comparing the Selected Information to the prior year's amounts taking into
consideration changes in business activities, acquisitions, and disposals
f. evaluating the design of internal systems, processes, and controls to collect
and report the Selected Information
g. reviewing the current sustainability issues that could affect [Hindustan
Petroleum Corporation Limited (HPCL)] and are of interest to stakeholders
h. reviewing [Hindustan Petroleum Corporation Limited (HPCL)]’s overall
approach to stakeholder engagement
Conclusion
Moderate assurance
On the basis of our methodology and the activities described above:
▪ Nothing has come to our attention to indicate that the Selected Information has not
been properly prepared, in all material respects, in accordance with the Reporting
Criteria

Ref: BV_CLIENT_JD18819236_2023/09/29 ASR_T10_270823 Page 4 of 5

142 Hindustan Petroleum Corporation Limited


▪ It is our opinion that HPCL has established appropriate systems for the collection,
aggregation, and analysis of quantitative data such as GHG emissions from the
process, electricity and fuel consumption, pollution emissions, water consumption,
waste generation and employee’s welfare and HSE related data.

Statement of Independence, Integrity and Competence


Bureau Veritas is an independent professional services company that specialises in quality,
environmental, health, safety, and social accountability with over 185 years of history. Its
assurance team has extensive experience in conducting verification over environmental,
social, ethical, and health and safety information, systems, and processes.

Bureau Veritas operates a certified1 Quality Management System which complies with the
requirements of ISO 9001:2008 and accordingly maintains a comprehensive system of quality
control including documented policies and procedures regarding compliance with ethical
requirements, professional standards, and applicable legal and regulatory requirements.

Bureau Veritas has implemented and applies a Code of Ethics, which meets the requirements
of the International Federation of Inspections Agencies (IFIA)2, across the business to ensure
that its employees maintain integrity, objectivity, professional competence, and due care,
confidentiality, professional behaviour, and high ethical standards in their day-to-day business
activities.
The assurance team for this work does not have any involvement in any other Bureau Veritas
projects with [Hindustan Petroleum Corporation Limited (HPCL)].

Bureau Veritas (India) Private Limited


72 Business Park, 9th Floor, MIDC Cross Road ‘C’, Opp. SEEPZ Gate #2, Andheri (East)
Mumbai-400 093 India.

Bholenath Vishwakarma
Lead Assurer

Dr. Apurva Srivastava Issued by: Anantha Prabhu


Team Member
Issued Date :09/10/2023
Date: 28/09/2023
Place: Mumbai, India

Report ID: V3-WRXAL

1
Certificate of Registration FS 34143 issued by BSI Assurance UK Limited
2
International Federation of Inspection Agencies – Compliance Code – Third Edition

Ref: BV_CLIENT_JD18819236_2023/09/29 ASR_T10_270823 Page 5 of 5

Sustainability Report 2022-23 143


GRI Content Index
Statement of use Hindustan Petroleum Corporation Limited has reported in accordance with the GRI
Standards for the period April 01, 2022 - March 31, 2023.
GRI 1 used GRI 1: Foundation 2021
Applicable GRI Sector Standard(s) Oil and Gas Sector 2021

GRI Standard/ Disclosure Location Omission GRI Sector IPIECA/ API/ SASB
Other Source Standard IOGP
Requirement(s) Reason Explanation
Ref. No.
Omitted
General disclosures
GRI 2: General 2-1 Organizational details Cover A gray cell indicates that reasons for omission are not
Disclosures 2021 page permitted for the disclosure or that a GRI Sector Standard
reference number is not available.
2-2 Entities included in the 4
organization’s sustainability
reporting
2-3 Reporting period, 4-5
frequency and contact point
2-4 Restatements of 4 GOV 1 - A4
information GOV 2 - A2
2-5 External assurance 139-143 GOV 1 - A2
2-6 Activities, value chain and 16, 21-23 SOC 5 - C2, C3
other business relationships
2-7 Employees 87 SOC 5 - C2
2-8 Workers who are not 87 GOV 1 - C1
employees
2-9 Governance structure and 34 GOV 1 - C1
composition
2-10 Nomination and 34 GOV 1 - C1
selection of the highest
governance body
2-11 Chair of the highest 34 GOV 1 - C3,
governance body C5, A3
GOV 2 - C1, C4
2-12 Role of the highest 36-37 GOV 1 - C1, C5
governance body in
overseeing the management
of impacts
2-13 Delegation of 39 GOV 2 - C1
responsibility for managing
impacts
2-14 Role of the highest 36
governance body in
sustainability reporting
2-15 Conflicts of interest 41
2-16 Communication of 44-45, 54 GOV 1 - A1, A6
critical concerns
2-17 Collective knowledge of 34
the highest governance body
2-18 Evaluation of the 34 GOV 1 - A5
performance of the highest
governance body
2-19 Remuneration policies 38, 61 GOV 1 - A5
CCE 2 - A2
2-20 Process to determine 38, 61
remuneration
2-21 Annual total 38, 61 CCE 1 - C1, C2,
compensation ratio C3, C4
CCE 1 - A1, A2
CCE 2 - C1,
C2, C4
CCE 3 - A8
2-22 Statement on 6-15 GOV 1 - C2,C4
sustainable development GOV 2 - C3. A1
strategy
2-23 Policy commitments 32 GOV 1 - C4

144 Hindustan Petroleum Corporation Limited


GRI Standard/ Disclosure Location Omission GRI Sector IPIECA/ API/ SASB
Other Source Standard IOGP
Requirement(s) Reason Explanation
Ref. No.
Omitted
2-24 Embedding policy 32 GOV 2 - C2
commitments CCE 1 - C1
2-25 Processes to remediate 36, 40- SOC 12 - C1,
negative impacts 41, 44 C2
2-26 Mechanisms for seeking 44, 117
advice and raising concerns
2-27 Compliance with laws 32, 39 GOV 5 - A3 EM-RM-
and regulations 140a.2
2-28 Membership 47 GOV 2 - A4
associations SOC 6 - C1
SOC 9 - C1
2-29 Approach to stakeholder 50
engagement
2-30 Collective bargaining 98
agreements
Material topics
GRI 3: Material 3-1 Process to determine 54 A gray cell indicates that reasons for omission are not
Topics 2021 material topics permitted for the disclosure or that a GRI Sector Standard
reference number is not available.
3-2 List of material topics 55
GHG Emissions (GRI OGSS Topic : GHG Emissions; Climate adaptation, resilience, and transition)
GRI 3: Material 3-3 Management of material 67 11.1.1
Topics 2021 topics 11.2.1
11.3.1
GRI 305: 305-1 Direct (Scope 1) GHG 67 11.1.5 CCE 4 - C1, C2, EM-RM-
Emissions 2016 emissions C3, A3 110a.1
305-2 Energy indirect (Scope 67 11.1.6
2) GHG emissions
305-3 Other indirect (Scope 67 11.1.7 CCE 2 - C3, A2
3) GHG emissions CCE 5 - C1, C2,
A2, A4
305-4 GHG emissions 67 11.1.8 CCE 4 - C4, A7
intensity
305-5 Reduction of GHG 67 11.2.3 CCE 3 - C1, C2 EM-RM-
emissions 110a.2
305-6 Emissions of ozone- NA Not NA
depleting substances (ODS) applicable
Energy Efficiency (GRI OGSS Topic : GHG Emissions)
GRI 3: Material 3-3 Management of material 64 11.1.1 CCE 6 - C2
Topics 2021 topics
GRI 302: Energy 302-1 Energy consumption 64 11.1.2 CCE 3 - A4
2016 within the organization CCE 6 - C1
302-2 Energy consumption 64 11.1.3
outside of the organization
302-3 Energy intensity 64 11.1.4 CCE 6 - A2
302-4 Reduction of energy 64
consumption
302-5 Reductions in energy NA Not
requirements of products and applicable
services
Water and Wastewater Management (GRI OGSS Topic: Water and Effluents)
GRI 3: Material 3-3 Management of material 80 11.6.1
Topics 2021 topics
GRI 303: Water 303-1 Interactions with water 80 11.6.2
and Effluents as a shared resource
2018 303-2 Management of water 80 11.6.3 ENV 1 - C5, A6
discharge-related impacts
303-3 Water withdrawal 81-82 11.6.4 ENV 1 - C1, C3, EM-RM-
C4, A7, A8, A9 140a.1
303-4 Water discharge 81 11.6.5 ENV 1 - A5
ENV 2 - C2,
A6, A7
303-5 Water consumption 81-82 11.6.6 ENV 1 - C2, A2

Sustainability Report 2022-23 145


GRI Content index

GRI Standard/ Disclosure Location Omission GRI Sector IPIECA/ API/ SASB
Other Source Standard IOGP
Requirement(s) Reason Explanation
Ref. No.
Omitted
Product Safety and Quality (GRI: Customer Health and Safety 2016)
GRI 3: Material 3-3 Management of material 112 SHS 5 - C1, C2,
Topics 2021 topics C3, A1,
GRI 416: 416-1 Assessment of the 112-113 11.3.3
Customer Health health and safety impacts
and Safety 2016 of product and service
categories
416-2 Incidents of non- 113
compliance concerning the
health and safety impacts of
products and services
Product Safety and Quality (GRI: Marketing and Labeling 2016)
GRI 3: Material 3-3 Management of material 112
Topics 2021 topics
GRI 417: 417-1 Requirements 113-114
Marketing and for product and service
Labeling 2016 information and labeling
417-2 Incidents of non- 113-114
compliance concerning
product and service
information and labeling
417-3 Incidents of non- 113-114
compliance concerning
marketing communications
Product Safety and Quality (GRI: Customer privacy 2016)
GRI 3: Material 3-3 Management of material 117 SHS 7 - C3
Topics 2021 topics
GRI 418: 418-1 Substantiated 117 SHS 7 - C3
Customer Privacy complaints concerning
2016 breaches of customer privacy
and losses of customer data
Supplier Environmental Assessment (GRI: Supplier Environmental Assessment 2016)
GRI 3: Material 3-3 Management of material 24 SOC 2 -
Topics 2021 topics C1, 2
GRI 308: Supplier 308-1 New suppliers that 24-25 SOC 2 -
Environmental were screened using C1, 2
Assessment 2016 environmental criteria
308-2 Negative environmental 24-25
impacts in the supply chain
and actions taken
Air Quality (GRI OGSS Topic: Air Emissions)
GRI 3: Material 3-3 Management of material 71 11.3.1 ENV 5 - C2
Topics 2021 topics
GRI 305: 305-7 Nitrogen oxides (NOx), 71 11.3.2 ENV 5 - C1 EM-RM-
Emissions 2016 sulfur oxides (SOx), and other 120a.1
significant air emissions
GRI 416: Disclosure 416-1 Assessment 112-113 11.3.3
Customer Health of the health and safety
and Safety 2016 impacts of product and
service categories
Biodiversity (GRI OGSS Topic: Biodiversity)
GRI 3: Material 3-3 Management of material 72 11.4.1 ENV 3 - C1, C3
Topics 2021 topics
GRI 304: 304-1 Operational sites 72-73 11.4.2 ENV 3 - C2
Biodiversity 2016 owned, leased, managed ENV 4 - C1
in, or adjacent to, protected ENV 4 - C2
areas and areas of high
biodiversity value outside
protected areas
304-2 Significant impacts 72-73 11.4.3
of activities, products and
services on biodiversity
304-3 Habitats protected or 72-73 11.4.4
restored
304-4 IUCN Red List species 72-73 11.4.5
and national conservation list
species with habitats in areas
affected by operations

146 Hindustan Petroleum Corporation Limited


GRI Standard/ Disclosure Location Omission GRI Sector IPIECA/ API/ SASB
Other Source Standard IOGP
Requirement(s) Reason Explanation
Ref. No.
Omitted
Research & Development (Additional disclosure)
GRI 3: Material 3-3 Management of material 74 NA CCE 3 - A1, A2,
Topics 2021 topics A3, A5
Waste (GRI: Waste 2020)
GRI 3: Material 3-3 Management of material 83 11.5.1 ENV 7 - C2
Topics 2021 topics SHS 5 - A2
GRI 306: Waste 306-1 Waste generation and 83 11.5.2
2020 significant waste-related
impacts
306-2 Management of 83-84 11.5.3
significant waste-related
impacts
306-3 Waste generated 83-84 11.5.4 ENV 7 - C3 EM-RM-
150a.1
306-4 Waste diverted from 83-84 11.5.5 ENV 7 - C3
disposal
306-5 Waste directed to 83-84 11.5.6 ENV 7 - C3
disposal
Occupational health and safety (GRI OGSS Topic: Occupational health and safety)
GRI 3: Material 3-3 Management of material 102 11.9.1 SHS 1 - C1, A1,
Topics 2021 topics A3, A4
SHS 6 - C3
GRI 403: 403-1 Occupational health 102 11.9.2 SHS 1 - C3, A2 EM-RM-
Occupational and safety management 320a.2
Health and Safety system
2018
403-2 Hazard identification, 102-103 11.9.3 EM-RM-
risk assessment, and incident 320a.2
investigation
403-3 Occupational health 102-103 11.9.4 EM-RM-
services 320a.2
403-4 Worker participation, 104 11.9.5
consultation, and
communication on
occupational health and safety
403-5 Worker training on 104 11.9.6 SHS 1 - C2
occupational health and SHS 7 - C2
safety
403-6 Promotion of worker 109 11.9.7 SHS 2 - C1,
health C2, C3
403-7 Prevention and 102-103 11.9.8
mitigation of occupational
health and safety impacts
directly linked by business
relationships
403-8 Workers covered by 102-103 11.9.9
an occupational health and
safety management system
403-9 Work-related injuries 108 11.9.10 SHS 3 - C1, C2, EM-RM-
C3. C4 320a.1
403-10 Work-related ill health 109 11.9.11 EM-RM-
320a.1
Manpower Management (GRI OGSS Topic: Employment Practices)
GRI 3: Material 3-3 Management of material 86 11.10.1 SOC 15 - C1
Topics 2021 topics
GRI 401: 401-1 New employee hires 88, 91 11.10.2
Employment 2016 and employee turnover
401-2 Benefits provided to 90-101 11.10.3
full-time employees that are
not provided to temporary or
part-time employees
401-3 Parental leave 89 11.10.4
11.11.3

Sustainability Report 2022-23 147


GRI Content index

GRI Standard/ Disclosure Location Omission GRI Sector IPIECA/ API/ SASB
Other Source Standard IOGP
Requirement(s) Reason Explanation
Ref. No.
Omitted
Manpower Management (GRI OGSS Topic: Economic impacts)
GRI 3: Material 3-3 Management of material 24 NA SOC 14 - C1
Topics 2021 topics
GRI 204: 204-1 Proportion of spending 26 11.14.6 SOC 14 - A1,
Procurement on local suppliers 2,3, 5,6, 7
Practices 2016
Manpower Management (GRI: Labor/management relations 2016)
GRI 3: Material 3-3 Management of material 86 NA SOC 6 - C2
Topics 2021 topics SOC 8 - C1
GRI 402: Labor/ 402-1 Minimum notice 91 11.7.2
Management periods regarding operational 11.10.5
Relations 2016 changes
Manpower Management (GRI: Training and education 2016)
GRI 3: Material 3-3 Management of material 92 11.10.1 SOC 7 - C1, C2,
Topics 2021 topics
GRI 404: Training 404-1 Average hours 95 11.10.6 SOC 7 - C2,
and Education of training per year per 11.11.4
2016 employee
404-2 Programs for 91-96 11.10.7 GOV 2 - A3, A5
upgrading employee skills
and transition assistance
programs
404-3 Percentage of 91-96 NA
employees receiving regular
performance and career
development reviews
Manpower Management (GRI: Supplier social assessment 2016)
GRI 3: Material 3-3 Management of material 24 NA SOC 1 -
Topics 2021 topics C1,2,3,4,5
SOC 2 - C1, 2
GRI 414: 414-1 New suppliers that 24 11.10.8
Supplier Social were screened using social
Assessment 2016 criteria
414-2 Negative social impacts 24 11.10.9
in the supply chain and 11.12.3
actions taken
Customer Satisfaction (Additional disclosure)
GRI 3: Material 3-3 Management of material 112 NA
Topics 2021 topics
Human Rights (GRI OGSS Topic: Non-discrimination and equal opportunity)
GRI 3: Material 3-3 Management of material 39 11.11.1 SOC 1 -
Topics 2021 topics C1,2,3,4,5
GRI 406: Non- 406-1 Incidents of 44-45 11.11.7
discrimination discrimination and corrective
2016 actions taken
Human Rights (GRI OGSS Topic: Non-discrimination and equal opportunity)
GRI 3: Material 3-3 Management of material 98 11.11.1 SOC 1 -
Topics 2021 topics C1,2,3,4,5
SOC 5 - C1
GRI 405: Diversity 405-1 Diversity of governance 98-99 11.11.5
and Equal bodies and employees
Opportunity 2016 405-2 Ratio of basic salary 99 11.11.6
and remuneration of women
to men
Human Rights (GRI OGSS Topic: Forced labor and modern slavery)
GRI 3: Material 3-3 Management of material 98 11.12.1 SOC 1 -
Topics 2021 topics C1,2,3,4,5
GRI 409: Forced 409-1 Operations and 25 11.12.2
or Compulsory suppliers at significant risk
Labor 2016 for incidents of forced or
compulsory labor

148 Hindustan Petroleum Corporation Limited


GRI Standard/ Disclosure Location Omission GRI Sector IPIECA/ API/ SASB
Other Source Standard IOGP
Requirement(s) Reason Explanation
Ref. No.
Omitted
Human Rights (GRI OGSS Topic: Freedom of association and collective bargaining)
GRI 3: Material 3-3 Management of material 98 11.13.1 SOC 1 -
Topics 2021 topics C1,2,3,4,5
GRI 407: Freedom 407-1 Operations and 98 11.13.2
of Association suppliers in which the right to
and Collective freedom of association and
Bargaining 2016 collective bargaining may be
at risk
Human Rights (GRI OGSS Topic: Economic impacts)
GRI 3: Material 3-3 Management of material 122 NA
Topics 2021 topics
GRI 203: Indirect 203-1 Infrastructure 122-130 11.14.4
Economic investments and services
Impacts 2016 supported
203-2 Significant indirect 131 11.14.5
economic impacts
Human Rights (GRI OGSS Topic: Rights of indigenous peoples)
GRI 3: Material 3-3 Management of material 72 11.17.1 SOC 1 -
Topics 2021 topics C1,2,3,4,5
SOC 10 - C1
GRI 411: Rights 411-1 Incidents of violations 72-73 11.17.2
of Indigenous involving rights of indigenous
Peoples 2016 peoples
Human Rights (GRI OGSS Topic: Conflict and security)
GRI 3: Material 3-3 Management of material 110 11.18.1 SOC 1 -
Topics 2021 topics C1,2,3,4,5
SHS 7 - A2
GRI 410: Security 410-1 Security personnel 110-111 11.18.2 SHS 7 - C1
Practices 2016 trained in human rights
policies or procedures
Diversity & Inclusion (GRI OGSS Topic: Local communities)
GRI 3: Material 3-3 Management of material 118 11.15.1 SOC 9 - C1
Topics 2021 topics SOC 13 - C1, 2;
A1,2,3,4,5
GRI 413: Local 413-1 Operations with local 118-121 11.15.2 SOC 9 - C2, C3
Communities community engagement, SOC 10 - A1
2016 impact assessments, and
development programs
413-2 Operations with 118-121 11.15.3
significant actual and
potential negative impacts on
local communities
Transport Safety (Additional disclosure)
GRI 3: Material 3-3 Management of material 107 NA SHS 4 - C1, C3
Topics 2021 topics SHS 4 - A4,
A7, A8
Business Ethics, Transparency & Regulatory Compliance (GRI OGSS Topic: Anti-competitive behavior)
GRI 3: Material 3-3 Management of material 39 11.19.1
Topics 2021 topics
GRI 206: Anti- 206-1 Legal actions for 41 11.19.2
competitive anti-competitive behavior,
Behavior 2016 anti-trust, and monopoly
practices
Business Ethics, Transparency & Regulatory Compliance (GRI OGSS Topic: Anti-corruption)
GRI 3: Material 3-3 Management of material 39 11.20.1
Topics 2021 topics
GRI 205: Anti- 205-1 Operations assessed 42-43 11.20.2 GOV 3 - C1,
corruption 2016 for risks related to corruption C3, C4
205-2 Communication and 42-43 11.20.3 GOV 1 - A7
training about anti-corruption GOV 3 - C2
policies and procedures
205-3 Confirmed incidents of 42-43 11.20.4
corruption and actions taken

Sustainability Report 2022-23 149


GRI Content index

GRI Standard/ Disclosure Location Omission GRI Sector IPIECA/ API/ SASB
Other Source Standard IOGP
Requirement(s) Reason Explanation
Ref. No.
Omitted
Business Ethics, Transparency & Regulatory Compliance (GRI OGSS Topic: Economic Impacts)
GRI 3: Material 3-3 Management of material 122 11.21.1 GOV 4 - C1,
Topics 2021 topics 11.14.1 C2,
GRI 201: 201-1 Direct economic value 131 11.21.2
Economic generated and distributed 11.14.2
Performance 201-2 Financial implications 122-133 11.02.2
2016 and other risks and
opportunities due to climate
change
201-3 Defined benefit 122-133 Not Not a material
plan obligations and other applicable issue
retirement plans
201-4 Financial assistance 131 11.21.3
received from government
Business Ethics, Transparency & Regulatory Compliance (GRI OGSS Topic: Payments to governments)
GRI 3: Material 3-3 Management of material 122 11.21.1
Topics 2021 topics
GRI 207: Tax 2019 207-1 Approach to tax 131 Not Not a material 11.21.4
applicable issue.
Refer page 131
207-2 Tax governance, 131 Not 11.21.5
control, and risk management applicable
207-3 Stakeholder 122-133 Not 11.21.6
engagement and applicable
management of concerns
related to tax
207-4 Country-by-country 122-133 Not 11.21.7
reporting applicable
Business Ethics, Transparency & Regulatory Compliance (GRI OGSS Topic: Public policy)
GRI 3: Material 3-3 Management of material 122 11.22.1 GOV 5 - C1
Topics 2021 topics
GRI 415: Public 415-1 Political contributions 131 11.22.2 GOV 5 - C2
Policy 2016
Business Ethics, Transparency & Regulatory Compliance (GRI: Market presence 2016)
GRI 3: Material 3-3 Management of material 34, 86 11.14.1
Topics 2021 topics
GRI 202: Market 202-2 Proportion of senior 86 11.11.2 SOC 15 - C1
Presence 2016 management hired from the 11.14.3
local community
Safety and security of critical assets (GRI OGSS Topic: Asset integrity and critical incident management)
GRI 3: Material 3-3 Management of material 83 11.8.1 ENV 6 - C1, C4
Topics 2021 topics SOC 3 - C1,
C2, C3
GRI 306: 306-3 Significant spills 83, 110 11.8.2 ENV 6 - C2
Effluents and
Waste 2016

Topics in the applicable GRI Sector Standards determined as not material


Topic Explanation
Topic 11.7 Closure and rehabilitation This has not been identified as a material issue. In the rare case of closure of any
location, HPCL ensures that the facilities, residual materials at the locations are
handled and disposed / treated in a manner as required by regulations.
Topic 11.16 Land and resource rights HPCL follows all the applicable rules and regulations while setting up any facilities.
For major projects, environmental and social impact assessments are undetaken in
coordination with the relevant authorities and mitigation measures are ensured for
identified impacts.

150 Hindustan Petroleum Corporation Limited


Abbreviations
Abbreviation Full Form Abbreviation Full Form

AIAI All India Association of Industries DoPT Department of Personnel and Training

AIMA All India Management Association DPE Department of Public Enterprises

AIPSSPB All India Public Sector Sports EAM Empowerment and Authority Manual
Promotion Board
EAP Employee Assistance Programme
API The American Petroleum Institute
ERDMP Emergency Preparedness and Disaster
ASF Aviation Service Facilities Management Plan

ASSOCHAM The Associated Chambers of Commerce ERM Enterprise Risk Management


and Industry of India
ERP Enterprise Resource Planning
BBL Barrel
ESG Environment, Social and Governance
BIS Bureau of Indian Standards
EV Electric Vehicle
BSE (Formerly) Bombay Stock Exchange
FAA First Appellate Authorities
CAG Comptroller and Auditor General of India
FCC Fluidised Catalytic Cracking
C&MD Chairman and Managing Director
FCCU Fluid Catalytic Cracking Unit
CBC Capacity Building Commission
FICCI Federation of Indian Chamber of
CBG Compressed Biogas Plant Commerce and Industries

CDP Company Designated Physician FIPI Federation of Indian Petroleum Industry

CDU Crude Distillation Unit FRAC Framework of Roles, Activities


and Competencies
CEA Central Electricty Authority
GA’s Geographic Areas
CFD Committee of Functional Directors
GOI Government of India
CGD City Gas Distribution
GHG Green House Gas
CHT Centre for High Technology
GJ Gigajoule
CII Confederation of Indian Industry
GRI Global Reporting Initiative
CNG Compressed Natural Gas
GRIHA Green Rating for Integrated
CoE Centres of Excellence
Habitat Assessment
CPGRAMS Centralised Public Grievances Redress
HGUs Hydrogen Generation Units
and Monitoring System
HPGRDC HP Green R&D Centre
CPIO Central Public Information Officers
HRRL HPCL Rajasthan Refinery Limited
CPSE Central Public Sector Enterprise
HRSG Heat Recovery Steam Generator
CSR Corporate Social Responsibility
HSE Health, Safety and Environment
CVC Central Vigilance Commission
ICC Indian Chamber of Commerce
CVO Chief Vigilance Officer
ICC Internal Complaints Committee
CwSN Children with Special Needs
IEM Independent External Monitor
DARPG Department of Adminstrative Reforms &
Public Grievances IGBC Indian Green Building Council

DEI Diversity, Equity and Inclusion IMM Integrated Margin Management

DHT Diesel Hydro Treater IMO International Maritime Organisation

Sustainability Report 2022-23 151


Abbreviations

Abbreviation Full Form Abbreviation Full Form

IOGP The International Association of Oil and POI President of India


Gas Producers
POSH Prevention of Sexual Harassement
IPCC Intergovernmental Panel on
PRAI Petroleum Refiners Association of India
Climate Change
PRP Performance Related Pay
IPIECA The International Petroleum Industry
Environmental Conservation Association PSPB Petroleum Sports Promotion Board

ISCC International Sustainability and RPIP Refinery Performance


Carbon Certification Improvement Programme

LDAR Leak Detection and Repair RTI Right to Information

LOI Letter of Intent SASB Sustainability Accounting


Standards Board
LOPC Loss of Primary Containment
SBUs Strategic Business Units
MARPOL The International Convention for the
Prevention of Pollution from Ships SCOPE Standing Conference of Public Enterprises

MDP Management Development Programme SDGs Sustainable Development Goals

MERC Management Employees SEBI Securities and Exchange Board of India


Relations Committee
SIRE Ship Inspection Reports
MNVE Manageable Non-Volume Expenditure
SMART Stakeholders Management and
MoP&NG Ministry of Petroleum & Natural Gas Relationship Techniques

MRPL Mangalore Refinery and SOD Supplies, Operations and Distribution


Petrochemicals Ltd
SOLAS Safety of Life at Sea
MSEs Micro and Small Enterprises
SOP Safety Operating Procedures
NDCs Nationally Determined Contributions
SOW Safety on Wheels
NGC Net Gas Compressor
SRFT Standard Refinery Fuel Tonnage
NSE National Stock Exchange
TCFD Task Force on Climate-related
NVDU New Vacuum Distillation Unit Financial Disclosures

OCIMF Oil Companies International Marine Forum UATs Unit Area Teams

OEMs Original Equipment Manufacturers VAW Vigilance Awarness Week

OHC Occupational Health Centres VDPL Vijaywada Dharmapuri Pipeline

OISD Oil Industry Safety Directorate VDPs Vendor Development Programmes

ONGC Oil and Natural Gas Corporation Limited VLSFO Very Low Sulphur Fuel Oil

OTNS Online Training Nomination System VOC Volatile Organic Compound

PAT Perform, Achieve and Trade VR Virtual Reality

PMJDY Pradhan Mantri Jan Dhan Yojana VRMP Visakh Refinery Modernisation Project

PMJJY Pradhan Mantri Jeevan Jyoti Yojana VRS Vapour Recovery System

PMSBY Pradhan Mantri Suraksha Bima Yojana VTS Vehicle Tracking System

152 Hindustan Petroleum Corporation Limited


भयारत सरकयार

मंत्रिमंडल सत्िवालय
लोक त्िकायत त्िदेिालय
क्या आप अनसूलझी शिकया्तों से परे ियान हैं ?
आप लोक शिकायत निदे िालय के काय्य क्ेत्र के अंतर्यत मंत्रालयों /विभागों और संगठिों से
संबंधित शिकायतों के समािाि के शलए लोक शिकायत निदे िालय की सहायता ले सकते हैं।
वपछले कुछ सालों में , इस निदे िालय दिारा उठाई गई लगभग िबबे प्रनतित शिकायतों का
संतोषजिक समािाि ककया गया है ।

अपनी शिकया्त दर्ज करयाने से पहले कृप्या नीचे दी गई िततों को ध्यानपर


ू क
्ज पढें :-
• आपिे अपिी शिकायतों को समबधित विभाग के समक् समािाि हे तु प्रसतुत कर शलया हो।
• आपकी शिकायत सेिा मामले ( ग्ेचयुटी,जीपीएफ इतयादद जैसे सेिांत दहतलाभों के भुगताि के अलािा) संबंधित विभाग
के मंत्री के सतर पर निपटाए गए मामले, िाणिज्यक अिुबंि,नयायािीि मामले. ऐसे मामले जहां निि्यय लेिे के शलए
अद्यिनयानयक पधदनत और अपीशलय प्रकरियाएं नििा्यररते की गई है . आरटीआई मामले, िाशम्यक मामले से संबंधित ि हो।
• ककसी भी प्रकार के सुझाि को शिकायत रुप में िही मािा जाएगा।

लोक शिकया्त ननदे ियाल् के कया््जक्ेत्र के अंतग्जत आने रयाले मंत्रयाल्ों/ वरभयागों/संगठनों की सूची

(क) रे ल मंत्रालय (ज) साि्यजनिक क्ेत्र के बैंक

(ख) डाक विभाग (झ) साि्यजनिक क्ेत्रों की बीमा कंपनिया

(ग) बीएसएिएल और एमटीएिएल सदहत दरू संचार (त्र) वित्त मंत्रालय की राष्ट्ीय बचत सकीम
विभाग

(घ) ददलली विकास प्राधिकरि, भशू म और विकास का- (ट) श्रम और रोजगार मंत्रालय के अंतग्यत कम्यचारी
या्यलय, सीपीडबलयूडी और समपदा निदे िालय सदहत रा्य बीमा निगम नियंत्त्रत ईएसआई असपताल और
िहरी विकास मंत्रालय | औषिालय |

(ठ) कम्यचारी भविष्य निधि संरठि

(ङ) पेट्ोशलयम और प्राकृनतक गैस मंत्रालय, इसके साि्य- (ड) विदे ि मंत्रालय के अंतग्यत क्ेत्रीय पासपोट्य प्राधिकरि
जनिक क्ेत्र के उपरिम सदहत

(च) भारतीय विमािपत्ति प्राधिकरि और एअर इंडडया (ढ) सिास्थ और पररिार कलयाि मंत्रालय के अंतग्यत
सदहत िागर विमािि मंत्रालय केंद्ीय सरकार सिास्थ योजिा

(छ) केंद्ीय माधयशमक शिक्ा बोड्य, केंद्ीय विदयालय (ि) पय्यटि मंत्रालय
संगठि, राष्ट्ीय मकु त विदयालयीय सं स ्थाि, ििोदय
विदयालय सशमनत, केंद्ीय विशिविदयालय समविशि- (त) यि
ु क काय्यरिम मंत्रालय
दयालय(केंद्ीय) और मािि संसािि विकास मंत्रालय
(्थ) पोत पररिहि, सडक पररिहि और राजमाग्य मंत्रालय
की छात्रित्त
ृ ी सकीमें ।

िोट: आप हमारी िेबसाइट हमसे यहां संपक्य करें :-


http:// dpg.gov.in पर सधचि
अपिी शिकायत दज्य कर सकते है । लोक शिकायत निदे िालय
आप अपिी शिकायत, संपूि्य सूचिा दस ू रा तल, सरदार पटे ल भिि, संसद माग्य, िई ददलली- 110001
और संगत दसतािजों के सा्थ दरू भाष : 011-23743139, 011-23741228, 011-23363733
हमें डाक/फैकस फैकस : 011-23345637
या ईमेल दिारा भेज सकते है । िेबसाईट : http://dpg.gov.in

Sustainability Report 2022-23 153


GOVERNMENT OF INDIA

CABINET SECRETARIAT
DIRECTORATE OF PUBLIC GRIEVANCES
Unresolved Grievances Bothering You ?
You may seek help of Directorate of Public Grievances [DPG] in resolution of

Grievances relating to Ministries / Departments and Organizations under its

Purview. In last few years, nearly ninety percent of the grievances taken up by the

Directorate have been resolved favourably.

Please read carefully the conditions listed below before lodging your grievance :
• You should have exhausted the Departmental remedies for individual grievances
• Your grievance should not relate to service matter[other than payment of terminal benefits like gratuity,
GPF etc.], a case disposed off at the level of Minister of the concerned Department, commercial contract,
a subjudice case, a case where quasi-judicial procedures and applellate mechanisms are prescribed for
decision making, RTI matter, Religious matter.
• Suggestion of any sort will not be treated as grievance.

List of Ministries /Departments/Organizations under DPG’s purview


[a] Ministry of Railways [i] Public Sector Banks
[b] Department of Posts [j] Public Sector Insurance Companies
[c] Department of Telecommunications including [k] National Saving Scheme of Ministry of Finance
BSNL and MTNL
[d] Ministry of Urban Development including Del- [l] ESI Hospitals and Dispensaries directly con-
hi Development Authority, Land & Develop- trolled by Employees State Insurance Corpo-
ment Office, SPWD and Directorate of Estates ration under Ministry of Labour and Employ-
ment
[e] Ministry of Petroleum and Natural Gas includ- [m] Employees’ Provident Fund Organization
ing its Public Sector Undertakings
[f ] Ministry of Civil Aviation including Airports [n] Regional Passport Authorities under Ministry
Authority of India and Air India of External Affairs
[g] Ministry of Shipping, Road Transport and [o] Central Government Health Scheme under
Highways Ministry of Health and Family Welfare
[h] Ministry of Tourism [p] Central Board of Secondary Education, Ken-
driya Vidyalay Sangathan, National Institute of
Open Schooling, Navodaya Vidyalaya Samiti,
Central Universities, Deemed Universities
[Central] and Scholarship Schemes
[q] Ministry of Youth Affairs

Note : You can lodge your Contact us at :


Grievance online on our website The Secretary
http://dpg.gov.in. Directorate of Public Grievances
You may also 2nd Floor, Sardar Patel Bhawan, Sansad Bhawan, New Delhi 100001
send your grievance to us by post or Tel : 011-23743130, 011-23741228, 011-23363733
fax with complete information and Fax : 011-23345637, e-mail : [email protected]
relevant documents Website : http://dpg.gov.in

154 Hindustan Petroleum Corporation Limited


Notes
Notes
Visit us at: www.hindustanpetroleum.com | Like us at: www.facebook.com/hpcl | Follow us at: www.twitter.com/hpcl

You might also like