Godrej Consumer Products : BRSR Assurance Statement

BRSR Assurance Service

Independent Assurance Statement

To the Directors and Management

Godrej Consumer Products Limited,

GODREJ ONE, Pirojshanagar, Vikhroli, Mumbai, Maharashtra 400079

Godrej Consumer Products Limited (hereafter 'GCPL') commissioned TUV India Private Limited (TUVI) to conduct independent external assurance of non-financial information (Essential and Leadership Indicators) disclosed in GCPL's Business Responsibility and Sustainability Report (hereinafter 'the BRSR') for the period April01, 2022 to March 31, 2023. The BRSR is based on the National Guidelines on Responsible Business Conduct (NGRBC), SEBI circular:SEBI/HO/CFD/CMD-2/P/CIR/2021/562,dated 10/05/2021 pertaining to Business Responsibility and Sustainability Reporting (BRSR)framework. This assurance engagement was conducted in accordance with ISAE 3000 (Revised)- "Limited Level".

Management's Responsibility

GCPL developed the BRSR's content. GCPL management is responsible for identifying "Essential and Leadership" indicators, carrying out the collection, analysis, and disclosure of the information presented in the BRSR (web-based and print), including website maintenance, integrity, and for ensuring its quality and accuracy in accordance with the applied criteria stated in the BRSR framework, such that it's free of intended or unintended material misstatements. GCPL will be responsible for archiving and reproducing the disclosed data to the stakeholders upon request.

Scope and Boundary

The scope of work includes the assurance of the following non-financial performance / Essential andLeadership Indicators disclosed in the BRSR. In particular, the assurance engagement included the following:

1. Review of General Disclosure, Management & Process and the disclosures against all 09 BRSR principles submitted by GCPL;
2. Review of the quality of information;
3. Review of evidence (on a sample basis) for identified non-financial indicators

TUVI has verified the below Essential and Leadership Indicators disclosed in the BRSR

Principles	Essential	Leadership
	Indicators	Indicators
Principle 1: Businesses should conduct and govern themselves with	1,2,3,4,5,6,7	2
integrity, and in a manner that is Ethical, Transparent and Accountable.
Principle 2: Businesses should provide goods and services in a manner	1,2,3,4	1,2,4
that is sustainable and safe.
Principle 3: Businesses should respect and promote the well-being of all	1,2,3,4,5,6,7,8,9,1	1,2,3,4,5,6
employees, including those in their value chains.	0,11,12,
	13,14,15
Principle 4: Businesses should respect the interests of and be	1,2	1,2
responsive to all its stakeholders.
Principle 5: Businesses should respect and promote human rights.	1,2,3,4,5,6,7,8,9,1	1,3,4,5
	0
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Principle 6: Businesses should respect and make efforts to protect and	1,2,3,4,5,6,7,8,9,1	1,2,3,4,6,7,8
restore the environment.	0,11,12
Principle 7: Businesses, when engaging in influencing public and	1,2	1
regulatorypolicy, should do so in a manner that is responsible and
transparent.
Principle 8: Businesses should promote inclusive growth and equitable	1,2,3,4	1,2,3,4,5,6
development.
Principle 9: Businesses should engage with and provide value to	1,2,3,4,5,6	1,2,3,4,5
theirconsumers in a responsible manner

GCPL operates several manufacturing facilities in India spread over seven locations and grouped into four operating clusters. The South cluster has plants in Pondicherry and Chennai, North East cluster has plants in Guwahati and Sikkim, North cluster has manufacturing sites in Kathua (Jammu), Baddi and Katha (Himachal Pradesh), and Central West cluster has flagship plant in Malanpur (Madhya Pradesh).

The assurance activities were carried out together with a desk review and on site verification. On 25-27th April 2023, verification activities are performed at GCPL Head Office, Vikhroli (E), Mumbai. Site visit is performed at Pondicherry and Karaikal plant on dated 12-16 May 2023 and Malanpur plant on site verification conducted on 4-5 May 2023.

Limitations

TUVI did not perform any assurance procedures on the prospective information disclosed in the Report, including targets, expectations, and ambitions. Consequently, TUVI draws no conclusion on the prospective information. During the assurance process, TUVI did not come across any limitation to the agreed scope of the assurance engagement. TUVI didn't verified any ESG goals and claim through this assignment. TUVI verified data on a sample basis; the responsibility for the authenticity of data entirely lies with GCPL. TUVI does not accept or assume responsibility for any other person or organization. Any dependence of person or third party may place on the BRSR Report is entirely at its own risk.

Our Responsibility

TUVI's responsibility in relation to this engagement is to perform a limited level of BRSR assurance and to express a conclusion based on the work performed. Our engagement did not include an assessment of the adequacy or the effectiveness of GCPL's strategy, management of ESG-related issues or the sufficiency of the Report against BRSR reporting principles, other than those mentioned in the scope of the assurance. TUVI's responsibility regarding this verification is in reference to the agreed scope of work, which includes non-financial quantitative and qualitative information (KPIs) disclosed by GCPL. Reporting Organization is responsible for archiving the related data for a reasonable time period. The intended users of this assurance statement are the management of 'GCPL'. The data is verified on a sample basis, the responsibility for the authenticity of data lies with the reporting organization. Reporting Organization is responsible for archiving the related data for a reasonable time period. TUVI expressly disclaims any liability or co-responsibility 1) for any decision a person or entity would make based on this assurance statement and 2) for any damages in case of erroneous data is reported. This assurance engagement is based on the assumption that the data and information provided to TUVI by GCPL are complete and true.

Verification Methodology

During the assurance engagement, TUVI adopted a risk-based approach, focusing on verification efforts with respect to disclosures. TUVI has verified the disclosures and assessed the robustness of the underlying data management system, information flows, and controls. In doing so:

1. TUVI examined and reviewed the documents, data, and other information made available by GCPL for non-financial Essential and Leadership Indicators (non-financial disclosures);
2. TUVI conducted interviews with key representatives, including data owners and decision- makers from different functions of GCPL;
3. TUVI performed sample-based reviews of the mechanisms for implementing the sustainability-related policies and data management (qualitative and qualitative);
4. TUVI reviewed the adherence to reporting requirements of "the BRSR Framework";

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Opportunities for Improvement

The following are the opportunities for improvement reported to GCPL. However, they are generally consistent with GCPL management's objectives and programs.

1. GCPL can disclose its principle wise commitments, goals and targets and report the corresponding status of achievements;
2. Internal periodic review mechanism of the principle wise BRSR data needs to be established;
3. The GCPL can utilize the best practices/ requirements of ISO 20400 to develop its sustainable procurement policy. Furthermore, GCPL can conduct ESG assessment of its value chain partners in phased manner
4. GCPL can opt for the principles and requirement of ISO 46001:2019 - Water Efficiency Management Standard
5. GCPL can accelerate the water positive index initiative, zero waste to landfill, zero liquid discharge, Net Zero initiatives
6. GCPL may develop the LCA baseline study of major range of products and implement the circular economy principles with interim and long term targets to reduces impact on environment
7. Training on human rights issues and policies can be increase with more frequency
8. GCPL may communicate their ESG stewardship program achievement to end user via digital media or packaging material information

Our Conclusion

In our opinion, based on the scope of this assurance engagement, the essential indicator performance reported in the BRSR report along with the referenced information provides a fair representation of the material topics, related strategies, and meets the general content and quality requirements of the Report.

Disclosures: TUVI is of the opinion that the reported disclosures generally meet the BRSR requirements. GCPL refers to general disclosure to report contextual information about GCPL, while the Management & Process disclosures the management approach for each indicator (Essential and Leadership).

Limited Assurance Conclusion: Based on the procedures we have performed; nothing has come to our attention that causes us to believe that the information subject to the limited assurance engagement was not prepared in all material respects. TUVI found the information to be reliable in all principles, with regards to the reporting criteria of the BRSR.

Report complies with the below requirements

1. Governance, leadership and oversight: The messages of top management, business model to promote inclusive growth and equitable development, action and strategies, focus on products, risk management, protection and restoration of environment, and priorities are disclosed appropriately.
2. Connectivity of information: GCPL discloses various principles and their inter-relatedness and dependencies with factors that affect the organization's ability to create value over time.
3. Stakeholder responsiveness: The Report covers mechanisms of communication with key stakeholders to identify major concerns to derive and prioritize the short, medium and long-term strategies. The Report provides insights into the organization's relationships (nature and quality) with its key stakeholders. In addition, the Report provides a fair representation of the extent to which the organization understands, takes into account and responds to the legitimate needs and interests of key stakeholders.
4. Materiality: The materiality assessment process has been carried out already during GRI reporting, based on the requirements of "GRI". The GRI Report reflects how GCPL has appropriately identified issues that affect its value creation, have high importance to its stakeholders, linked to strategy and governance considering aspects that are internal and external to the GCPL's range of business. The Report fairly brings out the aspects and topics and its respective boundaries of operations. The Report discloses information on material topics that substantively affect GCPL's ability to create value over the short, medium and long term.

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1. Conciseness: The Report reproduces the requisite information and communicates clear information in as few words as possible. The disclosures are expressed briefly and to the point sentences, graphs, pictorial, tabular representation are applied. At the same time, due care is taken to maintain continuity of information flow in the BRSR.
2. Reliability and completeness: GCPL has established internal data aggregation and evaluation systems to derive the performance. The reported data is duly verified and authenticated by GCPL. The majority of the data and information was verified by TUVI's assurance team (on sample basis) during the assessment of the BRSR and found to be fairly accurate. All data, is reported transparently, in a neutral tone and without material error.
3. Consistency and comparability: The information in the Report is presented on an annual basis in a reliable and complete manner. Thus, the principle of consistency and comparability is established.

This assurance statement has been prepared in accordance with the terms of our engagement and ISAE 3000 (revised) requirements

Independence:

TUVI follows IESBA (International Ethics Standards Board for Accountants) Code which, adopts a threats and safeguards approach to independence. It is confirmed that the assurance team is selected to avoid situations of self-interest,self-review, advocacy and familiarity. The assessment team was safeguarded from any type of intimidation.

Quality control:

The assurance team complies with the code of ethics for professional accountants issued by the IESBA, which includes independence and other requirements founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. In accordance with International Standard on Quality Control, TUVI 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.

Our Assurance Team and Independence

TUVI is an independent, neutral third-party providing BRSR verification services with qualified environmental and social specialists. TUVI states its independence and impartiality and confirms that there is "no conflict of interest" with regard to this assurance engagement. In the reporting year, TUVI did not work with GCPL on any engagement that could compromise the independence or impartiality of our findings, conclusions, and recommendations. TUVI was not involved in the preparation of any content or data included in the BRSR, with the exception of this assurance statement. TUVI maintains complete impartiality towards any individuals interviewed during the assurance engagement.

For and on behalf of TUV India Private Limited

		Date: 17-05-2023
Manojkumar Borekar
Place: Mumbai, India
Project Manager and Reviewer
Project Reference No: 8121513894
Head - Sustainability Assurance Service	www.tuv-nord.com/in

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