ESG Framework
KEI’s ESG governance is overseen by a dedicated Corporate Social Responsibility and Environment, Social, and Governance (CSR & ESG) Committee, constituted in line with Section 135 of the Companies Act, 2013 and the CSR Policy Rules, 2014. The Committee provides strategic direction and oversight for the company’s sustainability agenda. Its responsibilities include recommending CSR and ESG policies, approving annual action plans, and ensuring effective implementation of initiatives aligned with Schedule VII of the Act. It also oversees ESG risk identification and mitigation, ensures compliance with statutory sustainability disclosures such as BRSR, and supports ESG goal setting and performance tracking. By working closely with other Board committees and leveraging robust monitoring mechanisms, the Committee reinforces accountability, transparency, and continuous improvement across KEI’s ESG performance.
ESG Governance Structure: CSR & ESG Committee
KEI’s Board of Directors provides oversight of the Company’s ESG strategy, ensuring robust governance, accountability, and long-term value creation. Through the CSR & ESG Committee, the Board sets strategic direction, approves key policies, and monitors the implementation and performance of sustainability initiatives. It regularly reviews ESG risks, statutory compliance, and alignment with applicable regulations and leading practices, while guiding the development of annual action plans and long-term ESG goals. By embedding ESG considerations into Board-level decision-making and promoting transparency, the Board reinforces KEI’s commitment to responsible business conduct and sustainable growth.
The following are the roles and responsibilities of the CSR & ESG Committee:
- (a) Formulate and recommend to the Board, a CSR & ESG policy which shall indicate the activities to be undertaken by the company as specified in Schedule VII of the Act including any amendments or modifications from time to time as applicable;
- (b) Recommend the amount of expenditure to be incurred on the activities referred to in clause (a); and
- (c) Monitor the CSR & ESG policy of the company from time to time;
- (d) Institute a transparent monitoring mechanism for implementation of the CSR projects or programs or activities undertaken by the company;
- (e) The CSR and ESG Committee shall formulate and recommend to the Board, an annual action plan in pursuance of its CSR & ESG policy, which shall include the following, namely:
- The compilation of Corporate Social Responsibility initiatives or programs that have received approval for implementation in the areas or topics outlined in Schedule VII of the Act.
- The method of implementing the projects or programs outlined in sub-rule (1) of rule 4.
- The methods for utilizing funds and the timelines for executing the projects or programs.
- A system for overseeing and documenting the progress of the projects or programs.
- An evaluation of the requirements and the potential effects, if applicable, for the initiatives carried out by the organization.
- (f) To review, implement and monitor all CSR activities from time to time and regularly report to; the Board on the progress;
- (g) To periodically review and assess the adequacy of the existing policy and seek approval from the board for revision(s), if any;
- (h) To ensure compliance with the requirements of the Act;
- (i) To focus on the macro-level trends and developments in ESG parameters, guide the creation of ESG goals of the Company, continuously review the actions taken to achieve such goals and monitor the ESG performance of the Company;
- (j) The CSR & ESG Committee shall have the authority to obtain professional advice from external sources and have full access to information contained in the records of the Company as well as the powers to call any employee / external consultant or such other person(s) and for such purpose as may be deemed expedient for the purpose of accomplishments of overall CSR objectives laid down under the Act;
- (k) To review any statutory requirements for Sustainability reporting e.g. Business Responsibility and Sustainability Reporting, as may be applicable from time to time;
- (l) To review and evaluate the ESG risks identified by the Company and establish mitigation steps around it which can be reported to the Risk Management Committee and Board;
- (m) To co-ordinate with other Committees of the Board as may be required and recommend/ update to the Board implementation of the ESG framework;
- (n) Performing such other functions as may be required under the relevant provisions of the Companies Act, 2013, the Rules made there under and various circulars issued by the regulatory authorities thereof, as may be applicable and amended from time to time and discharge such other functions as may be specifically delegated to the Committee by the Board from time to time.
The CSR & ESG Committee convenes at regular intervals and, where necessary; holds additional meetings based on business requirements and the scale and progress of ongoing CSR and ESG initiatives.
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