Documente Academic
Documente Profesional
Documente Cultură
Development
Report
2017-18
Energising
Responsible
Growth
Theme
India is one of the fastest growing economies The good governance practices maintained at
of the world. There has been an incremental BPCL manifest its adherence to good
growth in the infrastructure development and governance principles such as transparency,
manufacturing. As the country develops the accountability, responsibility, ethics and
appetite for consumption of energy also integrity towards all its stakeholders. BPCL,
increases. It has become imperative to balance being a responsible corporate, manages its
development with growing energy demand in operations and processes in a manner which
a sustainable manner. The Government has renders minimal impact on the society and
advanced towards implementation of environment. It contributes signi icant
Intended Nationally Determined participation in line with the Government's
Contributions (INDCs). The nation-wide commitments and initiatives to meet SDGs
target capacity installation for renewable (Sustainable Development Goals). BPCL
energy is 175 GW by 2022. The nation is also endeavours to reduce the burden on the
participating actively in initiatives like Swachh environment and address its ESG
Bharat Mission, cleaning of rivers, Zero Effect responsibilities.
Zero Defect, Make in India, Smart Cities
Mission, Housing for All.
Table of Contents
1. History and Journey of BPCL 1
2. Messages from the Leadership 3
3. About this Report 10
4. BPCL at a Glance 12
5. Corporate Governance and Ethics 21
6. Opportunities, Risk and Challenges 28
7. Achievements of the Year – 2017-18 34
8. Stakeholder Engagement and Materiality 41
9. Growth Pro ile 51
10. Harmonising with Workforce 56
11. Approach towards Safety 68
12. Connecting with Communities- CSR Programmes 77
13. Minimising Environmental Impact 88
14. Operations of BPCL 110
15. Annexures 122
Annexure 1:Material Usage Breakup 123
Annexure 2A: GHG Calculation Quanti ication Methodology 125
Annexure 2B: Water Calculation Quanti ication Methodology 126
Annexure 3: Hazardous and Non-hazardous Waste Breakup 126
Annexure 4: Employee Representation 130
Annexure 5: Stakeholder Engagement and Materiality 131
Annexure 6: BPCL's Policies 131
16. Glossary 133
17. Acknowledgement 134
18. GRI Content Index 135
19. Linkage with Sustainable Development Goals 143
BPCL Sustainability Highlights
Environment
Reduction of
GHG emission by 11.80 MW of Total 7% increase in total
43,660 metric Wind Energy catchment area under
tonne of CO2 installed 21.61% increase rainwater harvesting in 18.89% increase in
14.56 MW
in Energy Ef icient FY 2017-18 as compared capacity of renewable
of Total Solar to previous year
Lighting capacity energy in FY 2017-18 as
Energy installed
in FY 2017-18 as compared compared to previous year
to previous year
Economic
Social
BPCL
ISO 50001
ranked among Energy Audit at 5S Certi ication at
implemented at 22
the top 20 Oil & Gas 36 more locations 17 more locations
additional locations
re ining & Marketing during FY during FY
during FY
Companies in 2017-18 2017-18
2017-18
FY 2017-18
Local
Total 166.02 procurement
3,49,424 man Crore spent from MSMEs
hours of training on Community stood at 27.11%
to employees Activities against the
target of 20%
History and Journey
of BPCL
History and Journey of BPCL
A Pioneering Approach
Burmah Shell began its operations with the import and marketing of kerosene and soon proved itself
to be a pioneer in more ways than one. The Company imported oil products in bulk and transported
them in 4-gallon and 1-gallon tins all over India. The Company also took up the challenge of reaching
out to people in remote villages to ensure every home was supplied with kerosene. Thus, the
development and promotion of ef icient kerosene-burning appliances for lighting and cooking
became an important part of its kerosene selling activity.
4
Bharat Petroleum Corporation Limited
marketing teams. Mumbai Re inery has Some of the lagship projects like Computer
successfully implemented the production of Assisted Learning (CAL) enhancing digital
superior quality hexane as a by-product from literacy for students, “Saksham” an initiative to
Isomerization Unit and this has been highly enhance competency level of school teachers,
appreciated and recognized by Centre for High BOOND a water conservation project through
Technology, Ministry of Petroleum & Natural rain water harvesting have been very effective
Gas. We have increased capacity of renewable in addressing the needs of communities. We
energy from 22.17 MW to 26.36 MW have also made signi icant contributions
registering an increase in capacity of 18.89% towards skilling and employment, integrated
as compared to previous year. community development, health services,
Rainwater harvesting, and installation of Swachh Bharat and conservation of cultural
energy ef icient lighting are a few other steps heritages across multiple locations. With all
taken toward reduction in carbon footprint. these efforts, BPCL was adjudged as the 12th
Last year witnessed an increase in total Best Company in Responsible Business
catchment area under rainwater harvesting to Rankings ( irst among PSUs and the oil
7,73,427 m2 from 7,22,800 m2 an increase of industry).
7%, while energy ef icient lighting capacity We are thankful to our stakeholders who have
has also been increased from 6.2 MW to 7.54 trusted and recognized our abilities to face the
MW, an increase of 21.61%. Through such challenges. Going forward, we appreciate that
initiatives, we have achieved an annual business models are changing at an incredible
reduction of GHG emission by 43,660 MTCO2e. pace in this disruptive business environment.
We are happy to inform that Treated Ef luent Therefore, adopting innovative and disruptive
Water Quality and Ambient Air Quality at both sustainability concepts would keep us ahead
the re ineries are well within prescribed of our peers. I am con ident that BPCL will
standard limits. However, we strongly believe successfully continue in its journey towards
that still a lot to be done and we are fully enduring excellence and delivering value to all
committed to minimize carbon footprint its stakeholders.
across our touch points.
With its motto “Safety First, Safety Must”, BPCL
continues to drive safety consciousness across Warm Regards,
its operating locations and of ices. We
understand and strongly advocate adherence
of safety standards not only by employees and
contract workmen, but also by channel and
business partners. We continually engage with
D. RAJKUMAR
o u r p e o p l e a n d p a r t n e r s to i n c re a s e
Chairman & Managing Director
awareness on safety in all areas of operations.
In line with our vision to 'Energise Lives' we
made signi icant progress in CSR thrust areas
of Education, Water Conservation, Skill
D eve l o p m e n t , H e a l t h & H yg i e n e a n d
Community Development. The Company
partners with several capable organizations,
thereby supporting projects that bene it the
underprivileged and marginalized sections of
society.
5
Sustainable Development Report 2017-18.
Message from Director - Re ineries
Dear Stakeholders,
At BPCL, we are aware that our re ineries are
major contributors towards BPCL's business
as well as its environmental footprint. We are
continuously striving for maintaining a
balance in improving performance of the
re ineries while ensuring our responsibility
towards the environment.
On performance front, Mumbai and Kochi
Re ineries achieved the highest ever crude
processing of 28.15 MMT as against 25.39
MMT in 2016-17 with the successful
commissioning of Isomerization and Diesel
Hydrotreater units at Mumbai Re inery and all
the process units of the Integrated Re inery
Expansion Project at Kochi Re inery.
BPCL re ineries are producing environment
friendly BSIV quality fuels. To provide better have been planted by the re ineries in FY
environment, BSVI fuels will be produced from 2017-18. A new solar power plant of 85,000
our Re ineries bypassing BSV grades. The kWh capacity was inaugurated during April
projects are expected to be completed well 2017 in Kochi Re inery.
ahead of the ambitious target deadline of April Other Go Green initiatives – installation of
2020 set by the Government of India. Mumbai effective Energy Management Systems, better
Re inery has been successful in achieving Ef luent Treatment Plants, Monitoring
production of superior quality hexane as a by- Systems, Bio Remediation to name a few were
product from Isomerization Unit. Focused also taken up in the re ineries. Our re ineries
initiatives have also been taken up along have been intensifying their social
energy conservation front. responsibility activities over the last years.
BPCL is continuously working on to reduce Focused interventions in the areas of
environmental pollution and reducing education, skill development, health and
Greenhouse gas emissions (from burning of hygiene, cleanliness, community development
the residual agricultural waste) by setting up are carried out, thereby reaching out to
thre three Bio-Re ineries at Bargarh in Orissa, thousands of people.
Bina in Madhya Pradesh and Khamgaon in We are thankful to our stakeholders who have
Maharashtra. Feed stock for the Re ineries is put their utmost efforts to bring BPCL to the
agricultural waste. These re ineries will present status. We are committed to the vision
produce ethanol which will be blended in of attaining excellence and at the same time
Motor Spirit to reduce environmental being one of the most responsible corporate
pollution. Water conservation is given high entity.
priority and both the re ineries are expanding I wish all stake holders of BPCL a very
volumes of the rain water harvesting. Mumbai prosperous and safe year ahead.
Re inery, fully utilizing rainwater harvesting
facilities, achieved harvesting of more than
66,000 KL in FY 2017-18. At Kochi Re inery Warm Regards,
rainwater harvesting of around 76,933 KL was
achieved through roof top collection systems R. RAMACHANDRAN
and open quarries. More than 30,000 trees Director (Re ineries)
6
Bharat Petroleum Corporation Limited
Message from Director – Marketing
Dear Stakeholders,
For BPCL, 2017 was another year of strong
performance. BPCL's market sales volume
increased by 9.37% to 41.38 MMT as
compared to 37.74 MMT in the previous year.
BPCL's market share amongst public sector oil
companies stood at 23.75% as on 31st March
2018, as compared to 22.77% as on the end of
the previous year. For its outstanding global,
inancial and industry performance, BPCL has
been ranked among the top 20 Oil and Gas
Re ining and Marketing companies in the
Platts Top 250 Global Energy Company
Rankings for 2017. BPCL ranks 5th in Oil & Gas
Re ining and Marketing in the Asia/Paci ic
Rim; 7th in Oil & Gas Re ining and Marketing choices in various scenarios and making BPCL
globally; and 10th in overall performance in future ready.
the Asia/Paci ic Rim. On an overall global On the sustainability front, BPCL has carried
performance, Bharat Petroleum has been out many projects in re ineries and marketing
ranked 27th. Further for the 8th consecutive locations for renewable energy and clean
year, BPCL was awarded the 'Best LPG technology. Giving credence to such initiatives
Marketing Organization' by Oil Industry Safety were our efforts for certi ications, ISO 50001
Directorate (OISD). was implemented at 22 additional locations,
BPCL has been conferred with the coveted Star Energy Audit at 36 more locations, and 5S
PSU Award at the Business Standard Annual certi ication at 17 more locations. With the
Awards for Corporate Excellence 2017. Apart spirit of taking the growth to the local & small
from inancial metrics and competitive producers, local procurement from MSMEs
advantage, the criteria for selection included stood at 27.11 % against the target of 20%.
s c a l e , s u s t a i n a b i l i t y, l e a d e r s h i p a n d Further to encourage this momentum, A
innovation, bearing testimony to BPCL's national level premier vendor workshop was
capabilities in these diverse spheres and to our organized by Central Procurement Of ice-
commitment to be a responsible supplier to Marketing (CPO-M) and Central Procurement
meet the energy needs of the country. O f i c e Re i n e r i e s ( C P O - R ) f o r M S M E
To meet this commitment, we strive to enterprises where a capacity building exercise
constantly innovate, follow sustainable was conducted.
practices of operations & doing business and Continuing its CSR efforts, UJJWALA PLUS
focusing on impact driven CSR with deep FOUNDATION (UPF) A Joint Venture Company
commitment from our team – from the staff was formed for charitable purposes among
working in our re ineries to driving our trucks three PSU Oil Marketing Companies viz. BPCL,
to our most senior leadership. HPCL & IOCL (in the ratio of 25:25:50) under
BPCL is looking at various options to play in Section 8 of the Companies Act, 2013 on non-
the Electric Vehicle (EV) value chain. BPCL is pro it basis which aims to provide LPG
also working on scenario planning to visualize connections to Below Poverty Level (BPL)
and plan for the changed macro-economic households not covered under Pradhan
environment 15 years into the future. Several Mantri Ujjwala Yojana. Multiple CSR Projects
scenario-planning workshops have been are carried out by the Company that are based
conducted to identify future scenarios on extensive need assessment and focuses on
affecting the energy business, BPCL's strategic providing sustainable solutions that engage
7
Sustainable Development Report 2017-18.
the community that is bene itted and lays the quality, time-frame for service delivery, the
foundation for sustainability of the projects grievance redressal mechanism and other
through a constructive exit strategy. Through such topics. A technology initiative, BPCL's
“Umang”, BPCL aspires to bring to the rural Customer Care System (CCS) provides a single
population a wide range of services round the window to address the concerns of its
clock through technology, thereby making customers across all BUs and geographies. It is
their lives easier as well as meeting the a n i n te g ra te d p l a t fo r m fo r c u s to m e r
corporate vision of inancial inclusion. interactions across all channels such as email,
BPCL's Start-up initiative “Project Ankur” aims website, social media, Vigilance, National
to develop a supportive ecosystem that Consumer Helpline as well as walk-ins. CCS
nurtures entrepreneurship in the country, by has registered its highest ever 0.9 million
backing innovative ideas and concepts that (with 38% CAGR) interactions during FY
have the potential to grow and become a 2017-18. It has now evolved into a robust
successful commercial venture. During the platform and certainly the most preferred
year FY 2017-18, twenty proposals have been choice of customers, resulting in substantial
shortlisted by the steering committee for improvement in the Customer Satisfaction
funding, out of which six start-up initiatives Index.
have been provided with a cumulative funding I believe that our committed sustainability
of Rs. 4.2 Crores. Also, to build the ideas plan would bring positive development not
pipeline, BPCL has entered into MOUs with only for BPCL, but also for the countries we
Incubation hubs such as KSUM (Kerala Start- invest in. We also irmly believe that each
Up Mission), Invest India, IIT Madras and KIIT section of society must work together to create
Bhubaneshwar. the balance in equal harmony among
With the customer at the centre, The Citizen's economic, environmental and social factors
Charter is published on the BPCL website that our country and the world requires for a
provides details of a range of services offered sustainable future.
to the customers, with an overview of the
marketing activities of the Corporation, policy
guidelines and processes on marketing of Warm Regards,
petroleum products.
It covers the mandate of the Corporation, ARUN SINGH
customer rights with respect to standards, Director (Marketing)
8
Bharat Petroleum Corporation Limited
Message from Executive Director – HSSE and
Advanced Liquid Biofuels
Dear Stakeholders,
Sustainability is a journey of evolution at
BPCL. We adopt better technologies and
methods which help us meet our aspiration of
sustainable development on an annual basis.
BPCL signi icantly contributes towards the
progress of the nation by catering to its energy
demands. It does so in a responsible manner
keeping a strong focus on safety, health and
well-being of its people and communities.
In FY 2017-18, Mumbai and Kochi Re inery
completed 31 and 53.57 million man-hours
without Lost Time Accident respectively. A
total of 3,070 man-days of HSSE training was
imparted to BPCL employees at Mumbai comprehensive analysis of threats from
Re inery alone. Implementation of safety audit climate change to our locations and provided a
recommendations was 96.2% during the year. way forward to tackle the challenges.
Kochi Re inery imparted HSSE training to Bio-Fuels, the cleaner alternative energy, have
18,898 contract employees. Fire and Safety been growing steadily in the world market to
training were also imparted to 2,153 BPCL tackle carbon imbalance in environment while
employees. Mumbai and Kochi Re ineries and also meeting growing energy needs. Biofuels
Retail Operations are certi ied for Integrated in India is of strategic importance as it augers
Management Syste. well with the ongoing initiatives of the
We acknowledge that Climate Change has Government such as Make in India & Swachh
become a cause of global concern. Numerous Bharat Abhiyan and offers great opportunity
initiatives have been taken up to minimse our to integrate with the ambitious targets of
impact towards global warming. We have d o u b l i n g o f Fa r m e r s I n c o m e , I m p o r t
implemented various initiatives on renewable Reduction, Employment Generation, Waste to
energy which emphasizes on increased use on Wealth Creation. BPCL proposes to set up 3
solar / wind power. The capacity of Renewable nos. Bio-Re ineries in Odisha, Madhya Pradesh
Energy has been increased from 22.17 MW to & Maharashtra for production of Second
26.36 MW and ef icient lighting has been Generation(2G) Ethanol, which will be
increased from 6.2 MW to 7.54 MW in FY blended with MS. The National Policy on
2017-18. Also, the rainwater harvesting Biofuels -2018 sets the new agenda consistent
capacity has been increased to 7,73,427 sqm. w i t h t h e re d e i n e d ro l e o f e m e rg i n g
from 7,22,800 sqm. With these initiatives we developments in the Renewable Sector,
have achieved an annual reduction of emission including Bio-CNG & Bio-Diesel.
by 43,660 MTCO2e. To reduce the Sulphur Our Sustainability Report highlights the
content in the fuels and environmental processes and the people within and outside
pollution, we are currently producing low the organization who have effectively
Sulphur BS IV auto fuel. Our re ineries are in contributed to build the strong fundamentals
the process of transitioning from producing BS of BPCL, which makes it responsible and a
IV to BS VI (MS / HSD) grade auto fuel i.e. by sustainable organization. This also explains
April 2020 as per Government directive. how we are working towards improving our
Recognizing the gravity of the situation we had safety performance and minimizing our
undertaken a study on climate change risk impact on the environment and communities.
preparedness for the Oil and Gas sector. This Warm Regards,
study was initiated in collaboration with peer
Oil and Gas PSUs, through The Energy and M. S. PATKE
Resources Institute (TERI) which provided a ED (HSSE and Advanced Liquid Biofuels)
9
Sustainable Development Report 2017-18.
About this Report
About this Report
Bharat Petroleum Corporation Limited BPCL seeks assurance for their Sustainable
(BPCL) has endured towards bringing about Development Report every year and the
phenomenal growth and change in the Oil and assurance process is facilitated by the
Gas sector of India. Upholding its aspirations Corporate HSSE Team.
and values, the Company has been working Previously published Sustainability
towards fuelling a billion lives. BPCL is Development Reports are available on the link
delighted to publish its 12th Annual below:
Sustainable Development Report for FY 2017- https://www.bharatpetroleum.co.in/sustaina
18 centred around the theme 'Energising bility/sustainability-reports.aspx
Responsible Growth'. BPCL has been on its The most recent Sustainable Development
sustainability journey for more than a decade Report was published in December 2017.
now. It has a robust mechanism for reporting
on the triple bottom line i.e. Economic, Reporting Boundary:
Environment and Social. Data/information During FY 2017-18, there has been no
which forms a part of this report is collected on signi icant change in terms of organization,
a software tool, p3 (acronym for People, size, structure, ownership structure or supply
Planet, Pro it) at the corporate and operative chain. Pipeline has been added to the report
levels. boundary of BPCL. The report boundary
'This report has been prepared in accordance comprises of the directly controlled seven
with the GRI Standards: Comprehensive Strategic Business Units (SBUs) operating in
option'. BPCL needs to report on all indicators India, namely Re ineries, Retail, Lubricants,
of each identi ied material aspect along with Industrial and Commercial, LPG, Aviation and
their management approach to obtain the Gas.In consultation with the Senior
'Comprehensive' criteria. The report has been Management, it has been decided that BPCL
developed in adherence to all the reporting will report only on the high priority material
principles with respect to content and quality topics.
as per GRI Standards. BPCL also adheres to In the report, local refers to India. Mumbai
disclose on the Oil and Gas Sector Supplement Re inery (MR) and Kochi Re inery (KR) are the
(OGSS), the International Petroleum Industry most signi icant area of operations. The
Environmental Conservation Association boundary excludes BPCL's Retail Outlets, LPG
(API/IPIECA/OGP) and the American Distributers, Joint Ventures, Subsidiaries and
Petroleum Institute’s Oil and Gas Industry In-transit product movement.As per the
Guidance on Voluntary Sustainability requirement of GRI Standards, management
Reporting (2010), Sustainable Development approach for each material topic has been
Goals (SDGs), NVG of SEBI and the Citizen included in each section of this report.
Charter. BPCL appreciates feedback and suggestions
BPCL has appointed M/s NextGen PMS Pvt. from all internal and external stakeholders.
Ltd. for providing advisory services to develop Please reach out to the address given below:
this report. The information in the report is
assured by a third party, KPMG in India, Ashish Gupta
appointed through e-tendering process. The Corporate HSSE, Bharat Petroleum
assurance is conducted as per International Corporation Limited,
Standard on Assurance Engagement (ISAE) Sewree Fort Road, Sewree East, Mumbai –
3000 (revised) and AA1000 (2008) Assurance 400015
Standard Limited (Type 2) at moderate level. Email: guptaashi@bharatpetroleum.in
11
Sustainable Development Report 2017-18.
BPCL at a Glance
BPCL at a Glance
Bharat Petroleum Corporation Limited Burma Shell Re ineries Limited (BSR) in 1952.
(BPCL) is India's 'best performing' Maharatna It was later renamed as Bharat Petroleum
public-sector enterprise operating in the Oil Corporation Limited in 1977. BPCL's re inery
and Gas sector. BPCL started its journey under was the irst in India to process the newly
the name of Bharat Re ineries Ltd. which was found indigenous crude (Bombay High).
formed when Government of India undertook
Important Milestones
BPCL enterprises through seven strategic BPCL as a responsible organisation has been
business segments namely Re inery, Retail, enduring numerous initiatives to deliver its
Lubricants, Industrial and Commercial, s o c i a l , e c o n o m i c a n d e nv i ro n m e n t a l
Liqui ied Petroleum Gas, Aviation, and Gas. It responsibilities. In FY 2017-18, it has
offers a comprehensive range of products advanced to identify further opportunities to
from lubricants, solvents, petrochemicals to sustain value. Therefore, it has initiated the
aviation fuel. The Company is head-quartered process of adopting an integrated approach
in Mumbai, Maharashtra,India with for formulating its Sustainable Development
operations across the nation. It has four Report. This process focuses on distinguishing
regional of ices in Delhi, Mumbai, Kolkata and and enriching the value creation for all
Chennai and has a pipeline network of 2,241 stakeholders beyond the inancial value
kms. generated.
13
Sustainable Development Report 2017-18.
Shareholding Pattern of BPCL as on 31st March 2018 (Percentage)
Shareholding Pattern of BPCL
Govt. of India
3.09%
2.5
Govt. of Kerala
7%
6% Insurance Companies
5.5
1%
4.3 Foreign Ins tu onal Investors
3%
9.3
0.86%
Bodies Corporate
0.16%
Others
02 04 75* 51
BPCL’s Business units (BUs)
Avia on Industrial
and Gas
(Avia on Loca ons,
Commercial Geographical
Fueling Sta ons, For Areas
On wheels) Industrial
customers
52# 16
Note:
*Retail Operations : stopped at 7 locations due to various business reasons.
# Aviation: 17 new units opened
14
Bharat Petroleum Corporation Limited
Presence Across Value Chain and Diversi ied Product Offering
As an Oil sector company, BPCL serves the nation across sectors from household requirements to
industrial usage of fuel.
REFINERIES:
Mumbai Re inery - Mumbai Re inery They have been operational and servicing the
achieved the highest ever crude processing of re ineries and marketing Business Units for
14.1 MMT and total throughput of 14.29 MMT two decades. Pipelines are the most economic,
(crude oil and other feedstocks) as against environment friendly and safe mode of
crude processing of 13.54 MMT & total transportation for various petroleum
throughput of 13.60 MMT achieved in FY p ro d u c t s . B P C L p i p e l i n e s h ave b e e n
2016-17. The capacity utilization in this accredited to Integrated Management System
inancial year was of 119%, as compared to (ISO 9001:2015, ISO 14001:2015 & OHSAS
113.3% in the previous year. The Gross 18001:2007 Certi icates) for their operations
Re ining Margin (GRM) for FY 2017-18 and maintenance across the country since
achieved by Mumbai Re inery was the highest 2010. At Mumbai and Bijwasan state-of-the-
ever at USD 7.26 per barrel, as compared to art SCADA system with irst ever dual Master
USD 5.36 per barrel realized in 2016-17. The Control Stations was implemented, which also
overall gross margin for the re inery in 2017- has a proven leak detection system. BPCL was
18 amounted to Rs. 5,023 Crores (37% higher) irst in India to get the benchmarking study
as compared to Rs. 3671 Crores in 2016-17. completed through M/s Solomon Associates
for all its pipelines for the year 2015-16.
Kochi Re inery -Kochi Re inery achieved the Pipelines have achieved a throughput of 14.97
highest ever crude processing of 14.1 MMT MMT in the year 2017-18 which is about 6%
and total throughput of 14.25 MMT (crude oil higher than previous highest which was
and other feedstocks) with the successful achieved in year 2016-17. Petroleum product
commissioning of all the process units of the movements through pipelines was 5,728
Integrated Re inery Expansion Project as MMTKM across northern, central, western and
against crude processing of 11.82 MMT and southern parts of the country. First Parcel of
total throughput of 11.79 MMT achieved in BS VI products for National Capital Territory
2016-17. This represents a capacity utilization (NCT) was launched from Bina in this
of 115%, as compared to 107.5% in the reporting year. Total 38 TMT of BSVI products
previous year. The Gross Re ining Margin delivered at Delhi. The pumping of ATF started
(GRM) for the year also increased to USD 6.44 at ex-Bina Re inery in August 2017 and 36
per barrel, as against USD 5.16 per barrel TMT of ATF has been delivered to Delhi market
realized in FY 2016-17. The gross margin for in FY 2017-18. Product pumping ex- Mumbai
the Re inery in FY 2017-18 is Rs. 4,333 Crores Re inery has crossed the 7.0 MMT mark for the
(41.5% higher), as against the previous irst time in any inancial year, reaching the
inancial year igure of Rs. 3,061 Crores. highest ever igure of 7.015 MMT products in
this year. Product pumping ex-Bharat Oman
PIPELINES: BPCL has a network of 2,241 km Re inery Limited also crossed the 3.0 MMT
of multiproduct product pipelines with design mark for the irst time, reaching the highest
capacity of 17.84 MMT and total 3,173 km ever igure of 3.388 MMT products.
inclusive of Vadinar- Bina Pipeline (VBPL)
crude oil pipeline.
15
Sustainable Development Report 2017-18.
RETAIL: BPCL's retail sales of petroleum computerized offerings monitored through
products during FY 2017-18 grew at 6.1% CCTV, assuring the promise of purity with
while the major products, petrol and diesel, higher service levels.
put together grew at 6.5%, with
LPG: The LPG SBU registered a sale of 6 MMT
corresponding PSUs growth at 5.7%. BPCL's
and for the second consecutive year, registered
retail business registered a total sale of 26.5
the highest growth of 9.98%, thereby
MMT with an overall growth of 5.4% in FY
increasing market share by 0.36% during FY
2017-18 against PSU growth of 3.7%. The
2017-18. Record performances of LPG BU
sales volume of MS at 6.9 MMT was 8.9%
observed in the areas of new distributorship
higher than 6.4 MMT achieved last year. HSD
commissioning, customer enrolment ,
sales volume stood at 18.6 MMT, as against
commercial sales, plant illing etc. The
17.6 MMT last year, re lecting growth of 5.6%.
'Pradhan Mantri Ujjwala Yojana' (PMUY) this
In the alternate fuels segment, BPCL recorded
year as well, has continued the momentum of
a growth of 11.2% on the sale of Compressed
new customer acquisition in rural areas,
Natural Gas (CNG) and the sales volumes for
enabling extensive enrolment of new
the year stood at 383 TMT. Auto LPG grew at
customers. The use of digital technology and
3.4%, recording a sales volume of 33 TMT.
social media on a mass scale enabled the
Government policy linked SKO performance
business in expanding LPG footprints across
stood at 554 TMT, degrowing at 31.0%. Focus
the country. New customer enrolment of 76
on the sale of core retail products was coupled
Lakhs during FY 2017-18 has taken the
with a sustainable focus on environmentally
domestic customer base to 670 Lakhs by the
friendly endeavours. Premium branded fuel
end of the inancial year. Also, second cylinders
'Speed' sales were 567 TKL with a conversion
were supplied to 19.90 Lakh customers. BPCL
of 5.7%. The 'Speed 97' network was
added 406 new distributorships, taking the
expanded to 40 and the product was
total distributor network to 5,084. Under the
repositioned as the highest-Octane Unleaded
successfully accomplished PAHAL project of
Petrol. 32 CNG stations have been added
the Government of India, so far 202.05 million
across the country. In FY 2017-18, 464 New
customers have been enrolled on an Industry
Retail Outlets (NROs) were commissioned,
basis as Cash Transfer Compliant, out of which
129 of which were in key priority rural
BPCL enrolled 51.41 million customers. BPCL
markets. The total Retail Outlet network after
had transferred Rs. 17,221 Crores directly into
the annual addition stood at 14,447 at the end
the customer accounts.
of FY 2017-18. Besides NRO commissioning,
120 Retail Outlets have been revived towards LUBRICANTS: The “MAK” brand delivered a
creating a healthier and more effective strong performance in FY 2017-18, with a
network. higher growth rate as compared to the peers, it
At the end of FY 2017-18, 8,046 Retail Outlets increased its market share with 0.9%. Apart
across the country offer Pure for Sure (PFS) from the domestic markets, MAK lubricants
service standards. These certi ications are have fared well in a challenging and
given by an independent agency to the Retail competitive environment by recording a
Outlets, maintaining the business promise of growth of 8.9% in exports during FY 2017-18.
quality and quantity assurance in refuelling. Seamless transition to the GST regime
Retail Outlets that not only ensure quantity demonstrated the ability of Supply Chain
and quality but surpass prevalent standards of Management (SCM) to overcome challenges
high-tech facilities are awarded the PFS and deliver growth in a changing environment.
Platinum certi ication. As of 31st March 2018, Network management and expansion ensured
BPCL has 1,506 PFS Platinum Outlets across that the Reseller channel grew by 4.5% in FY
India, equipped with fully automated and
16
Bharat Petroleum Corporation Limited
2017-18. The Retail channel, comprising over AVIATION: Aviation segment of BPCL
14,000 petrol pumps and the Bazaar channel recorded the highest ever sales of 1,790 TMT
comprising over 700 active distributors. in FY 2017-18 with an increase in market
Marketing in the Direct channel with supplies share to 25.66% from 25.03% in the previous
to lagship customers consolidated the year amongst PSUs. Sales growth of 15.7% was
presence of “MAK” in the B2B segment. BPCL achieved against the PSU growth of 13.0%
was awarded as the best and consistent during FY 2017-18. In the civil segment,
quality supplier globally at Bangkok by Showa BPCL's market share grew from 26.61% to
Japan for supplies to their Indian partner. MAK 27.13% with a growth of 26.6% in the
lubricants is at the forefront of capturing the domestic segment and 11.0% in the
new opportunities in the dynamic lubricant international segment. The defence segment
market with a very robust and innovative had negative growth due to reduction in lying
Product and Application Development operations. BPCL's aviation segment has
(P&AD) department. New products like MAK expanded its customer portfolio with
Steel EP100, MAK Knit22 plus, MAK Textrol acquisition of new customers while retaining
EE10, MAK EDM Oil, MAK Film bear, MAK all its major customers in this year. A pilot
Drillol were introduced to tap the potential in project on automation at AFS and refuelling
the direct market . The new products vehicles is in progress. It is proposed to be
introduced to OEM customers were KOEL care implemented at all locations in a phased
premium, ELGI Airlube ECO, TVS Tru4 Skutta manner.
etc. Value added services to customers was a
key focus area in the Retail and Bazaar GAS: BPCL handled 1,872 TMT of Gas in the
channels. The Quick Oil Change (QOC) corner year 2017-18, as against 1,371 TMT in the
has been established as a strong service previous year, a growth of approx. 26%. Out of
initiative for 2-wheeler and 4-wheeler 1,872 TMT, 357 TMT of gas was supplied to
customers. In the Bazaar segment, Mechanics Mumbai Re inery and 479 TMT was supplied
from Non-Franchise Workshops (NFW) are to Kochi Re inery to meet their internal
key in luencers in the customers' buying requirements. The remaining 1,036 TMT of
decision of Lubricants. A series of programs Gas was supplied to various customers in
have been designed at various levels, to fertilizer, power, City Gas Distribution (CGD),
educate this set of 68 Bharat Petroleum steel and other industries across the country
Corporation Limited in luencers and enhance and for the irst time since inception, the Gas
their knowledge of Lubricants - MAK Shagun, BU surpassed 1 TMT in customer sales. BPCL
MAK Milan and culminating with 'MAK imported 5 cargoes of LNG in the last inancial
Manthan'. year at Dahej Terminal in FY 2017-18. Around
99% of BPCL's supply has been through
INDUSTRIAL AND COMMERCIAL (I&C): The pipelines to its various consumers. However,
journey of an Industrial and Commercial (I&C) to take care of customers located far from the
business in the inancial year 2017-18 became pipelines, BPCL supplied around 12 TMT of
momentous. It crossed the 5 million tonnes LNG through Tank Trucks.
mark in sales volume. An overall sale of 5,301
TMT was recorded and an unparalleled
growth of 24.3% was registered to become the
industry growth leader. Furthermore, the BU's
market share in the industry, including private
players, saw a quantum leap from 8.9% in
2016-17 to 10.6% in 2017-18, a phenomenal
increase of 1.7% in a single year.
17
Sustainable Development Report 2017-18.
Products Sold Directly Sold through Retail Dealers &
Distributors
Fuel Oils (FO/LSHS/HPS) Motor Spirit (MS)
Toluene High Speed Diesel (HSD)
Benzene Superior Kerosene Oil (SKO)
Naptha Mineral Turpentine Oil (MTO)
Solvents Liqui ied Petroleum Gas (LPG)
Aviation Turbine Fuel (ATF) Lubricants
Bitumen
Sulphur
BPCL's Network
Subsidiaries – Indian: 5 · BPRL Ventures Mozambique BV
· Numaligarh Re inery Limited (NRL) · BPRL Ventures Indonesia BV
· Bharat Petroresources Limited (BPRL) · BPRL International Ventures Limited
(subsidiaries of BPRL International BV) -
· Bharat PetroResources JPDA Ltd Netherlands
· Petronet CCK Limited (PCCKL) · BPRL International Singapore Pte Ltd.
· BPCL-Kial Fuel Farm Private Limited (BKFFPL) (BISPL) – Singapore
2 Tass 9.86%
RUSSIA*
2 Area 1 -Offshore 7.88%
3 Cauvery Basin 20% - 100%
3 Rajasthan 33.3%
2 Cambay
1 BM-C-30 25%
25%
1 Assam - Arakan
3 BM-SEAL-11 20%
40%
3 Mumbai Basin
2 BM-POT-16 20% - 100%
20%
1 Nunukan 12.5%
1 EP -413 28%
18
Bharat Petroleum Corporation Limited
The World map represents the number of BPCL has a presence in 24 blocks in 8
countries and locations in which BPCL countries. BPCL does not undertake any direct
operates, including the number of discoveries operations at its international locations. Only
in FY 2017-18 which has increased from 22 to the subsidiaries have overseas operations.
26.
Organisational Structure
Chairman and Managing Director
ED I/C (Corp
Strategy &
ED I/C Business
CGM (HRS) ED (Retail) ED (IS)
(Mumbai Re inery) Development)
CGM
ED I/C ED (LPG) ED (Legal)
CGM I/C (HRD) (Co-ordination)
(Kochi Re inery)
ED
ED (International CGM (Quality ED (Lubes) (Corporate CVO
Trade) Control Cell) Treasury)
ED (HSSE &
Advanced Liquid ED (I & C) ED Company
Biofuels) (Corp. Finance) Secretary
ED (Re ineries
Co-Ordination and ED (Gas) ED (Corporate
Special Projects) Affairs)
GM I/C
ED (IS) (Mktg Corp)
Group Re inery
19
Sustainable Development Report 2017-18.
Values, Vision, Mission, and Culture
VALUES VISION
1. Trust is the bedrock of our existence 1. We are the most admired global
2. Customer centricity is intrinsic to our energy Company leveraging talent and
achievements technology
3. Development of people is the only 2. We are the irst choice of customers,
way to success given our constant pursuit for customer
4. Ethics govern all our actions service quality excellence
5. Innovation is our daily inspiration 3. We exploit pro itable growth
6.Collaboration is the essence of opportunities outside energy to give
individual action back to society and environment
7.Involvement is the way we pursue our 4. We are role models for implementing
organizational goals ef icient Health Safety, Security and
Environment initiatives
5. We are a great organisation to work
for as we ensure both personal and
professional growth equally
6. We are an organisation that
constantly learns, improves and
innovates
MISSION 7. We take social responsibility
1. Participate prominently in nation- seriously as a model corporate entity
building by meeting its growing energy
needs, and to support this endeavour,
pursue the creation of economic surplus
by ef iciently deploying all available
resources and aiming towards global
competitiveness in the energy sector
2. Strengthen and expand areas of core CULTURE
competencies throughout the country, 1. We care for people
total quality management in all spheres 2. We enrol people through open
of business and maintain the status of a conversations
leading national Company 3.We remain result focused with
3. Create awareness among people on accountability for governance
the imperatives of energy conservation 4. We proactively embrace change
and ef icient consumption of petroleum 5. Our every action delivers value to the
resources, by disseminating information customer
through appropriate media 6. We collaborate to achieve
4. Availing ourselves of new organisational goals
opportunities for expansion /
diversi ication arising from the
liberalization of the economy to achieve
a global presence
5. Promote ecology, environmental
upgradation and national heritage
20
Bharat Petroleum Corporation Limited
Corporate
Governance and
Ethics
Corporate Governance and Ethics
Note:
1. Board Composition and the various committees of the Board and their responsibilities are available
in the Annual Report 2017-18.
Link: https://www.bharatpetroleum.com/pdf/OurFinancial/Annual-report-f6fce7.pdf
2. The details regarding selection procedure, quali ication, remuneration determination process and
training of the Directors is available in the Annual Report 2017-18
Link: https://www.bharatpetroleum.com/pdf/OurFinancial/Annual-report-f6fce7.pdf
3. The details regarding Con licts of Interest, collective knowledge of highest Governance body,
evaluating the highest governance body performance are available in the Annual Report 2017-18.
Link: https://www.bharatpetroleum.com/pdf/OurFinancial/Annual-report-f6fce7.pdf
22
Bharat Petroleum Corporation Limited
S.No Name of Director Gender Designation
1 Shri. D. Rajkumar Male Chairman & Managing Director
Independent Director
17 Shri. Vinay Sheel Oberoi Male
(w.e.f. 21.9.2017)
Ms. Jane Mary Shanti Independent Director
18 Female
Sundharam (w.e.f. 21.9.2017)
Dr. Tamilisai Independent Director
19 Female
Soundrarajan (w.e.f. 28.9.2017)
23
Sustainable Development Report 2017-18.
Committees of the Board
The Board Committees comprise of the Board Enterprises (DPE) Guidelines/Companies Act.
of Directors. They were set up to ensure swift Notably, the Committees gather feedback from
and ef icient decision-making. The various wide ranging stakeholders and to integrate
Board Committees are constituted in line with economic, social, and environmental impact
the requirements of the organisation. The into the business conduct. In FY 2017-18, the
committees exist with different roles under Board met ifteen times.
the provisions of Department of Public
1. Audit Committee
24
Bharat Petroleum Corporation Limited
Compensation/ Remuneration of the Fund and other funds, other bene its and
Board of Directors perquisites and performance related pay. The
ixed remuneration component is
BPCL is a CPSE, therefore the appointment/ accompanied by a variable pay component,
nomination of all the Directors is made by based on the performance of the Management.
President of India through the Ministry of The Performance Related Incentive Scheme
Petroleum and Natural Gas (MoPNG) for Management Staff (PRISM) is evaluated
including ixation of remuneration of the based on targets in the MOU with MoPNG. At
whole-time Directors and employees. the beginning of each inancial year, BPCL
Stakeholders' views are not considered during signs a Memorandum of Understanding
determination of the renumeration of (MOU) with the MoPNG. The MOU speci ies
Directors.The Part-time (Independent) targets for various parameters including
Directors received sitting fees for each physical, inancial, social and environmental
Board/Audit Committee/other committee parameters. The process of Board evaluation
meetings attended by them during FY 2017- can be referred to as reported in Annual
18. For computing the compensation, only Report, FY 2017-18. The Board is evaluated on
regular heads of compensation (one-time numerous parameters but not with respect to
payments and perquisites are excluded) are governance of economic, environmental, and
considered. The major components are salary social topics.
and allowances, contribution to Provident
Corporate memberships
BPCL is a part of various industrial and trade associations. Major ones are listed below:
Ethics and integrity are entrenched as a core The policy formulated by BPCL on Ethics,
value in BPCL's work culture. It is mandatory Prevention of Corruption and Bribery covers
for all management, non-management and i t s e n t i r e o p e ra t i o n s . B P C L e n s u r e s
contract employees to comply with all the transparency of revenue low from sector to
applicable laws. BPCL has formulated speci ic the host Governments. BPCL has taken
procedures, processes and systems to adopt implementation of Government policies in a
the “Code of Conduct , Procedure and proactive manner and has also provided
Disclosures for Prevention of Insider Trading relevant information regarding ethical
in the Securities of BPCL” and “Code of conduct to the employees through intra link.
Corporate Disclosure Practices”. BPCL follows a rigorous mechanism to
25
Sustainable Development Report 2017-18.
communicate concerns with its stakeholders. India and has also signed a voluntary code of
The primary level of grievance redressal is Transparency International's Integrity Pact
done at the BU level. In the event that the Programme (IPP). BPCL stands upto the
grievance stays unresolved, it is then taken up requirements not only on paper but in sprit by
by the Committee of Functional Directors. not getting involved in any anti-competitive
Post review of the Concern Committee, the behaviour. However, the cases iled by
discussion is initiated with the Board of stakeholder against BPCL, regarding unfair
Directors. 100% of the operations are trade practices, irresponsible advertising
assessed for risks related to corruption. There and/or anti-competitive behaviour during the
signi icant risks related to corruption are last ive years and pending as on end FY 2017-
identi ied through the risk assessment 18 are mentioned below. No case regarding
process. The aggregate number of concerns anti-competitive behaviour has been iled in
raised during FY 2017-18 cannot be disclosed FY 2017-18, though there are pending cases
due to con identiality reasons. BPCL abides by regarding the same. The details of which are
the rules of the Competition Commission of mentioned in the table below:
Anti-competitive Behaviour 5 5
26
Bharat Petroleum Corporation Limited
a) Not allowing to use petroleum products of This was done with a premise to promote
other OMCs. clean business transactions, professionalism,
b) Reserving Dealer land just for selling oil and productivity, promptness and ethical
impose condition to give land to OMC when practices. Corporate Vigilance was also
dealership is terminated- Sub Judice. carried out thorough investigations into the
Complaints and Source Information. All
employees (100%) are communicated about
Vigilance Mechanism the anti-corruption policy and procedure
BPCL inculcates the culture for proactive and regularly and are imparted exclusive trainings
preventive efforts to promote good on the same. There is no speci ic number
governance and ethical standards in all its available for anti-corruption trainings, but the
business processes. Raising awareness has total number of trainings conducted include
been quintessential and therefore, there has those. Complaints including those received
been a focus in FY 2017-18 on regular online, were investigated both directly by
interactions with employees and other Team Vigilance and through Businesses/
stakeholders. Vigilance Awareness Week, an Entities within the stipulated time frame.
annual outreach program instituted by Central The 8th edition of Vigilance Plus was released
Vigilance Commission is celebrated for the this year and was well received by the
staff of the organizations/ departments and stakeholders. This magazine contains articles
general public to rededicate their on good governance, ethics and values,
commitments towards Honesty, Probity and experiences of individuals, poems and
Ethical values. highlights of the activities conducted during
The integrity Pledge was administered to the year as well as an overview of Vigilance
15,500 employees on the irst day. Efforts were Awareness Week 2017.
maximised to ensure wide coverage and The Vigilance function has closely interacted
enhance participation of the public for their with the Businesses/ Entities to ensure all
commitment to the vision of 'Corruption Free facets are covered while arriving at justi ied
India' by taking the E-Integrity Pledge on the conclusions of cases. In matters referred by
CVC Website by sending 4 Crore SMS messages CVC and MoP&NG, necessary investigations
in Hindi and English to more than 4 Crore were carried out and recommendations were
customers, vendors and business associates; given within the prescribed time-frame.
playing the message in Hindi and English at
Customer Helpline and other IVRS systems,
providing the E-Integrity Pledge link on all
BPCL's corporate websites; printing e-pledge
message on all LPG re ill invoices and
organising several competitions at various
company of ices and many schools across the
country. As a part of preventive vigilance,
awareness sessions were conducted for BPCL
employees working at operating locations and
regional of ices by Vigilance of icers during
t h e i r v i s i t s to e n h a n c e k n owl e d g e &
awareness on the operational aspects of
various guidelines and standard operating
procedures in vogue.
BPCL Vigilance Administration
27
Sustainable Development Report 2017-18.
Opportunities, Risk
and Challenges
Opportunities, Risk and Challenges
Oil has been at the core of most important Risk Management Framework:
commodities traded since last 150 years. The
oil market is constantly evolving and churning Risk assessment is the overall process of risk
out opportunities in abundance. However, identi ication, risk analysis, and risk
trading of hydrocarbons remains dif icult due assessment. Risks can be assessed at an
to the presence of various interconnected organizational level or a departmental level
players and processes, it requires specialised for projects, individual activities, or speci ic
skills to capture potential and create value. risks. Different tools and techniques may be
The Oil & Gas sector globally is in a constant appropriate in different contexts. Risk
state of complexity, due to the bizarre trend of assessment provides an understanding of
the geopolitical forces. Globally, the oil risks, their causes, consequences, and their
inventories have decreased whereas the probabilities.
demand has increased. This has created The igure below provides an illustrative view
pressure on the market equilibrium. of BPCL Risk Assessment & Management
17% of the world's population resides in India Framework as applicable to all project stages
and is one of the fastest growing economies. namely
The tremendous increase in the infrastructure 1. Planning / Design & Engineering (including
and manufacturing development in India has management of change)
led to increased economic activities, 2. Construction and Commissioning
urbanization and industrialization. This 3. Operation & Maintenance
results in making India energy intensive, oil 4. Decommissioning and asset disposal
being the major source. As over the last few
decades India has been amongst the world's
fastest growing economies its Oil and Gas Risk management framework comprises of
companies are under immense pressure to following steps:
prepare for a possible low-carbon future.
BPCL contributes to the energy requirements
of the nation. It recognises risk identi ication Establish the context
as an integral component of business. It
identi ies and manages its risks in accordance
with the regulatory requirements laid down
Consultation
Identity hazards
by Securities and Exchange Board of India
Review
29
Sustainable Development Report 2017-18.
The main objectives for carrying out a risk
assessment is to ensure that human health,
assets, and the environment are protected, 141 risks
and the necessary resources are allocated in a
prioritised and defensible manner to ensure identi ied
that any unacceptable risks identi ied will be
reduced to acceptable levels.
BPCL's Board of Directors have the overall
responsibility for the establishment and
oversight of its risk management framework.
The Risk Management Committee of the Board 82 risks reportable
has de ined roles and responsibilities,
which includes reviewing and recommending
at SBU/entity level, but
the risk management plan and the risk not at Audit Committee
management report for approval of the Board
with the recommendation of the Audit
Committee. BPCL has adopted a Risk
Management Charter and Policy for self-
regulatory processes and procedures for 59 risks reportable to
ensuring the conduct of the business in a risk
conscious manner. BPCL has exposure to the the Audit Comittee
following risks arising from inancial
instruments:
·Credit risk ·Liquidity risk
·Market risk ·Currency risk
7 risks at Corporate level
The critical risks identi ied for FY 2017-18 reportable to the Board
are enlisted below:
30
Bharat Petroleum Corporation Limited
2. Non-compliance of various laws and
statutes applicable:
There are regular workshops conducted in Issuance of informative circulars to SBU's /
collaboration with external consultants for entities on amendments and changes of tax
increasing awareness on topics such as laws is a regular affair at BPCL
corporate taxation and GST.
33
Sustainable Development Report 2017-18.
Achievements of the
Year – 2017-18
Achievements of the Year – 2017-18
35
Sustainable Development Report 2017-18.
BPCL Mumbai Re inery Received
First Prize for the 'Re inery
Performance Improvement &
Innovation Awards' 2016-17
36
Bharat Petroleum Corporation Limited
BPCL Honoured as 'Project
Management Company of the
Year – 2016' on 08.08.2017
37
Sustainable Development Report 2017-18.
BPCL receives the Best Corporate
Communication Campaign/
Programme 2017 (Internal) for the
brand quiz Baadshah
38
Bharat Petroleum Corporation Limited
BPCL Mumbai Re inery Wins
'Challenger's Award' Under
“Sustainability 4.0 Awards - 2017”
39
Sustainable Development Report 2017-18.
BPCL bags First award in
IDEAS'16 Creative Stroke
(Marketing - Technical)
40
Bharat Petroleum Corporation Limited
Stakeholder
Engagement and
Materiality
Stakeholder Engagement and Materiality
Stakeholder engagement
42
Bharat Petroleum Corporation Limited
The below sections have addressed the key stakeholder concerns and the response of BPCL towards
those concerns.
43
Sustainable Development Report 2017-18.
The order of the above-mentioned stakeholders as per prioritisation.The below table depicts
the frequency and mode of engagement of BPCL with its various stakeholders.
Individual Interactions
Dealers and Meetings and training with Dealers and
Distributors sessions Distributors
Vendor Meets
44
Bharat Petroleum Corporation Limited
Material Topic Prioritisation and Analysis
Material topics are the ones having the based on stakeholder engagement responses
potential to signi icantly affect sustainability and feedback from senior management of
performance of a company. To understand the BPCL. Reponses were obtained from the
material topics for BPCL, a universal list of stakeholder groups on the speci ic
material topics was compiled with the questionnaires formulated for them. The
reference to the study of primary and responses of the stakeholder engagement
secondary sources. From this universal list of exercise were collated and analysed.
topics, top material topics were inalized
Materiality Matrix
The Materiality Matrix is the result of Stakeholder Engagement process. The Material topics
identi ied through Stakeholder engagement process and the resultant Materiality Matrix
is presented below:
High
Asset Integrity
Being a
Responsible
Corporate
Creating an
Energised
Workforce
Grievance
Ensuring Mechanisms
Human Rights
Low
Issues currently a focus Issues gaining importance Issues which are low on concern
In this report, BPCL have followed GRI the relative importance of aspects and does
Standards to identify key material issues. In not necessarily depict that an aspect rated as
consultation with the Senior Management, it 'low' has low impact or relevance. In FY 2017-
has been decided that BPCL will report only on 18 based on the discussion with Senior
the high priority material topics. Each material Management, BPCL has reported only on the
topic has been discussed in detail in the issues which are a current focus for the
subsequent chapters. The categorization Company and its stakeholders.
under low, medium and high demonstrates
45
Sustainable Development Report 2017-18.
GRI Category Material topic GRI Topic Boundary Impact by
BPCL
Economic GRI: 201: Economic Direct and
performance performance Internal
Indirect
Sustainable GRI 204: Procurement Internal and Direct and
Economic Procurement practices External Indirect
Economic GRI 419: Socioeconomic Internal and
Compliance compliance External Direct
Social
Health and Safety GRI 403: Occupational Internal and Direct and
Health and Safety External Indirect
Asset Integrity and GRI OG13: Asset Integrity Internal and Direct and
Process Safety and Process Safety External Indirect
46
Bharat Petroleum Corporation Limited
The data and information presented in the The joint ventures, LPG Distributers, retail
report is collected on a regular basis. BPCL has outlets and subsidiaries are excluded from the
considered all their strategic Business Units in boundary of material aspect. There are no
India which includes, Re ineries (Mumbai & signi icant changes from previous reporting
Kochi), Aviation, Retail, LPG, Gas, Industrial, periods in the Scope and Aspect Boundaries.
Commercial and lubricants as the boundary
for each material aspect.
GRI Material
Category Topics GRI Topic Management Approach
Economic Socioeconomic BPCL follows compliance not just in letter but also in
Compliance compliance spirit. The Company has policies, systems and adequate
monitoring mechanism for sustained and effective
compliance uniformly across the Corporation
For Details on Management Approach refer chapter Growth Pro ile
47
Sustainable Development Report 2017-18.
Ef icient Water Water
Management BPCL manages its natural capital ably and works
towards minimising impacts of its operations on nearby
water resources. The Company has taken several
initiatives such as rain water harvesting system and
reusing/recycling of water wherever possible etc. in
various Business Units to reduce water consumption.
The Company works with preventive and mitigating
activities based on an evaluation of areas with the
highest water-related risks.
Minimizing Material Emissions Due to the nature of the business, BPCL recognises that it
Environmental Ef luents and has an impact on the environment. Therefore, BPCL
Impact Waste strives to operate with the lowest possible ecological
impact and handles each activity with utmost care. The
signi icant locations of operations- the Mumbai re inery
and Kochi re ineries have ISO 9001, 14001, OSHAS
18001 certi ications for quality, environment and health
and safety.
For Details on Management Approach refer chapter Minimising
Environmental impact
Fossil Fuel GRI Oil and Gas Climate change presents multiple challenges. Therefore,
Substitutes Sector Supplement India has assumed greater responsibility and has set an
GRI OG2, OG3 ambitious target of 175 GW renewable energy target by
and OG14 2022 to combat climate change. BPCL understands that
their energy intensive operations are one of the leading
contributors to climate change and therefore engages
regularly in exploring investments in renewable to ful il
the energy demand. BPCL also has a policy of renewable
energy which emphasizes increased use on solar / wind
power
48
Bharat Petroleum Corporation Limited
and stakeholders. The primary level of grievance
redressal is tended to at the BU level. The Company has
in place processes and policies to handle grievances. The
Companies Health, Safety and Environment Policy
emphasizes on the use of appropriate technologies to
minimise the impact of the activities on the
environment.
Delivering Customer health BPCL believes in the motto 'Pure for Sure' and strives to
Responsible and safety deliver quality product to consumers. All products
Products undergo safety testing as per the requirements to assess
health and safety impacts. All marketing
communication relating to the products and services
adheres to ASCI voluntary standards on marketing and
communications.
Inclusive Local communities Government of India has initiated several missions and
Development initiatives to achieve goals that together ensure the
growth and development of the nation and the wellbeing
of its citizens. Being a responsible Company, BPCL
contributes its efforts towards being in line with the
Social missions and initiatives.
Health and Occupational BPCL strives towards a safe and healthy work
Safety health and safety environment for its employees. The safety of the
employees is a priority at BPCL. Throughout the year,
many actions have been taken to improve the wellbeing
and safety of employees. BPCL work hard to keep them
safe and target zero occupational accidents. The safety
culture is driven, on priority, by the top management and
executed at every level through the Health and Safety
Committee.
49
Sustainable Development Report 2017-18.
Asset Integrity GRI OG13: Asset B P C L h a s e s t a b l i s h e d P ro c e s s S a fe t y Eve n t s
and Process Integrity and
Safety Process Safety identi ication and Measurement System in accordance
to American Petroleum Institute (API) Recommended
Practice (RP) 754 Standard. In addition, Process Safety
Events are also increasingly reported by leading process
companies in their sustainability reports. BPCL ensures
that process safety events are monitored, recorded,
analysed and the learning is shared across the locations.
To maintain high safety standards every location has a
HSSE (Health, Safety, Security, and Environment) role
holder. His primary responsibility is to ensure
adherence to the HSSE Policy.
Being a Anti-corruption BPCL has built its reputation over the years by
Responsible Anti-competitive maintaining high standards of ethics and integrity. This
Corporate behaviour has helped to build stakeholder trust and preeminent
Public Policy customer satisfaction. BPCL has formulated speci ic
procedures, processes and has systems in place to
promote good governance and ethical standards in all its
business processes.
For Details on Management Approach refer chapter Corporate
Governance and Ethics
Social Socioeconomic BPCL follows compliance not just in letter but also in
Compliance compliance spirit. The Company has put in place an adequate
monitoring mechanism for sustained and effective
compliance uniformly across the Corporation.
For Details on Management Approach refer chapter Harmonising with
Workforce
For the boundary of each Material Topic refer chapter Stakeholder Engagement and Materiality
50
Bharat Petroleum Corporation Limited
Growth Pro ile
Growth Pro ile
As per estimates from the World Economic with almost 75% of the crude processed being
Forum, India is the world's sixth largest high sulphur crude. On the same lines BPCL as
economy with a GDP exceeding USD 2.5 a major Oil and Gas Maharatna Company is
trillion. As the economy grows, so does its energising the Indian economy and acting as
appetite for energy. Over the past decade, building blocks of the nation. Although BPCL
India has added re ining capacity of close to weighs its performance by its Triple Bottom
two thousand barrels per day, increasing its Line contribution but steady inancial
share in the world's re ining capacity to 5%. As performance is must as it in luences all
on 1st April 2018 India's installed capacity stakeholders.BPCL ensures to have world-
stands at 247.6 MMTPA, an increase of 6% class assets with structural advantages in
over the previous year. The increase in re ining terms of costs, size and scalability to drive
capacity is primarily due to capacity sustainable growth. The foundations have
enhancement and stabilization at BPCL's been laid upon which BPCL can continue to
Kochi Re inery, HPCL-Mittal Energy Limited grow. Based on the inancial and quality
(HMEL)'s Bhatinda Re inery and Reliance performances all its stakeholders can trust
Industries Limited (RIL)'s Jamnagar Re inery. that BPCL will deliver as promised. BPCL has
The Indian re ineries processed crude close to taken several strategic steps to ensure optimal
252 MMTPA, 3% up from the previous year, use of resources and better productivity.
30 26.95
24.21
22.05 22.15 22.97
25
7.95
20 6.64 7.27
6.44 6.19
15
10 16.05
12.57 13.21 13.84 14.49
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Bharat Petroleum Corporation Limited
Re inery Throughput (Million Metric Tonnes)
30 Imported Indigenous
28.54
25.39
25 23.35 23.36 24.12
20
10
5
6.59 5.70 6.09 4.97 4.74
0
2013-14 2014-15 2015-16 2016-17 2017-18
2017-18
2016-17
2015-16
2014-15
2013-14
53
Sustainable Development Report 2017-18.
Total Funds employed (Rs. Crore)
54
Bharat Petroleum Corporation Limited
Direct Economic Value Generated and Distributed
Direct Economic
2,49,857.45 2,18,363.60 2,50,095.75 2,80,173.11
Value Generated
Economic Value
2,43,830.77 2,11,189.33 2,44,314.03 2,70,624.56
Distributed
Employee wages
2,139.26 2,934.33 3,486.07 3,500.19
and bene its
Payments to providers
2,210.04 2,821.50 4,758 2,884
of capital
Payments to
18,282.54 32,448.51 43,601.16 44,125.17
government
Community
Investments (including 76.01 95.59 90.98 166.02
CSR Expenditure)
Economic value
6,026.68 7,174.27 5,277.63 9,548.55
retained
Subsidies 734.23
BPCL does not make any contribution towards any political parties either inancially or through
in-kind contributions.
55
Sustainable Development Report 2017-18.
Harmonising with
Workforce
Harmonising with Workforce
57
Sustainable Development Report 2017-18.
There were no open cases from the past year. meditation. On World Mental Health Day an
Towards proactive grievance identi ication 'ESE Fest' was celebrated to connect with
and resolution, ESE conducted 70 awareness employees, add joy and energize their lives. To
s e s s i o n s a n d v i s i te d 4 0 l o c a t i o n s to drive home the theme of emotional itness, a
proactively interact with employees. All the campaign on ‘Stress Proof Yourself - Build
data mentioned in the report is related to FY Resilience’ was conducted along with
2017-18. counselling sessions. A thought-provoking
International Yoga Day was celebrated by ESE program, ‘Rendezvous with Dr. Vikas Amte’,
at all regional of ices in association with the renowned social entrepreneur, was
regional HRS, MR, KR and at many other conducted to learn and share the joy of giving.
locations. More than 1,100 employees World Earth Day and World Environment day
participated in the yoga programs. A 'Dance were also celebrated. The main objective was
Movement Therapy' program was organized to create awareness in employees about
on the occasion of Mothers' Day. Various talk environment needs like water conservation,
sessions, events, contests and workshops planting trees, recycling of kitchen waste/ e-
were also organized. Psychological well-being waste and conservation of natural resources.
correlates highly with emotional and physical
wellness and this can be achieved by
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Bharat Petroleum Corporation Limited
HR Initiatives:
59
Sustainable Development Report 2017-18.
Mercurix – Annual story telling event gives Educational assistance scheme –There are
employees an opportunity to exhibit their liberal inancial assistance programs which
skills and enhance their leadership abilities by support employees who choose to enhance
using a compelling story / narrative as an their skillsets by upgrading their skills and
inspirational tool. knowledge.
Socratix – Case study events that evaluate E-library – All executives at BPCL have access
thinking and strategic execution skills in to the e-library, it provides them access to the
employees. latest material.
E-Learning programs – In collaboration with Lecture series – In order to keep the
global e-learning providers, there are cost and employees motivated and widen their
time optimised training programs developed. h o r i z o n s , B P C L i nv i te s i n s p i ra t i o n a l
They cover behavioural, managerial and personalities to conduct sessions for them.
functional effectiveness of employees.
Talent management and leadership are of and individual plans for employee
paramount importance at BPCL. Therefore, engagement and skill development. This
BPCL has launched various programmes that created a clear, cohesive and transparent
have helped individuals within the system by which the employees could clearly
o rga n i s a t i o n to n u r t u re t h e i r t a le n t . see their progress and it allowed better
Project 'CALIBER' is aimed at creating an de inition of employee goals in line with
organised means to asses, identify and organisational growth. This model uses three
develop existing talent within BPCL. Under main parameters to assess individual
this initiative employees underwent all- performance - ability, aspiration and
inclusive assessment process which was performance engagement.
followed by a detailed review, integrated The above-mentioned detailed process is
feedback and enrichment plans. available for middle and senior level
P r o j e c t 'A S C E N D ' w a s d e v e l o p e d i n professionals. For junior levels employees,
continuation to the aforementioned project. It there are additional distinctive assessment
provides multi-rater .assessment, multiple tools known as the Growth Factor Index (GFI).
level personnel review, integrated feedback
3. My Voice/ Merivaani
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Bharat Petroleum Corporation Limited
4. Every thought is important
BPCL encourages its employees to put forward them as per their requirement after parting
questions on matters of interest and concerns from the organisation.
related to the BPCL and C&MD through its
open interaction channels, such as 'Let's Talk ' Employees classi ication: Employees at
and 'Tea with C&MD'. Through these BPCL are classi ied into management and non-
initiatives, BPCL has successfully formulated management staff. Senior Management is
and implemented ive and seven-year plans. de ined as per the organizational chart and all
T h i s h a s p ro m o te d exc e p t i o n a l te a m of them are hired from the local community.
performance across the organisation. BPCL The employment type provided by BPCL is of
ensures continuous development through its full-time in nature for the permanent
I n t e r n a l C o a c h i n g , S p e a k e r s Fo r u m , employees. BPCL being an oil and gas sector
Continuous Improvement Initiatives (Quality company, does not show any signi icant
circle, 5S, TPM, TQM, Kaizen, etc.), Quality variation in the numbers reported for
circles and Six Sigma technique. permanent employees due to seasonal
variation. BPCL does not engage in or support
5. Building a culture of high performance d i re c t o r i n d i re c t d i s c r i m i n a t i o n fo r
There is a structured approach followed at employees in their appointment,
BPCL for determining organisational goals compensation, termination or retirement
and objectives along with plans to achieve based on caste, religion, disability, gender, age,
them. The HR initiatives begin with a ive-year race, colour, ancestry, marital status or
plan which is further broken down into annual a f i l i a t i o n w i t h a re l i g i o u s o r u n i o n
plans. These goals and objectives are organisation or minority group.The details of
tabulated in the form of Balanced Score Card recruitment are available across locations:
(BSC) which is monitored from periodically.
The senior leaders are trained and certi ied in
performance counselling techniques that are
in line with the global trends to ensure an
integrated work environment.
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Sustainable Development Report 2017-18.
Number of Newly recruited permanent Employees
Total Male Female
in FY 2017-18
North Region 27 0 63 8
South Region 32 0 51 9
East Region 2 0 33 2
West Region 7 0 95 27
Mumbai Re inery 30 0 49 6
Kochi Re inery 38 0 27 3
The data collected for Non-management employees is not bifurcated age-wise but is available with the
HR department.
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Bharat Petroleum Corporation Limited
The contribution of workers who are not employees is not signi icant for BPCL operations.
Age Distribution of
Permanent Employees Total Management Non-Management
All the employees working at BPCL are entitled to avail parental leave either male or female.
63
Sustainable Development Report 2017-18.
Return to work and retention rates
after parental leave Management Non-Management
# This is not reported as per Company Policy. However, details are available with HR Department.
E-learning course module was also launched including the e-learning hours. On an average
from 2016-17 onwards on Role based and 15.09 manhours of training per employee was
Managerial based courses. The total number provided. This training is inclusive of safety
of hours spent on training are 3,49,424 related training undetaken at plants.
Remuneration and Allowance
BPCL does not discriminate in wages based on contract on principal to principal basis) are
gender. This calculation is made considering also being paid an additional amount per
m i n i m u m wa g e s f o r c o n s t r u c t i o n o f month over and above the Central Minimum
roads/buildings schedule for the unskilled Wage rate, depending upon the skill/ type of
labour in line with the applicable central or Area classi ication/ nature of contract. The
state rates (whichever is higher). Further, the ratio of the entry level wage for males and
marketing locations w.e.f. 01.01.2016, females to the minimum wage is 1.54.
contract labour (excluding labour engaged by
service provider with whom BPCL have
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Bharat Petroleum Corporation Limited
Particulars FY 2015-16 FY 2016-17 FY 2017-18
The percentage increase in the total annual The ratio of the annual total compensation
compensation of the organisation's highest percentage increase of the highest-paid
paid individual is 34.26*% and the median individual to the median annual total
percentage in the total annual compensation compensation percentage increase for all
for all the employees except for the highest employees is 2.02.
paid individual is 16.95%.
65
Sustainable Development Report 2017-18.
Employee Grievance Mechanism
BPCL re lects on employee feedback with keen ESE vision is 'to be an active facilitator towards
interest. Employee Satisfaction Enhancement a healthy, productive, vibrant and energized
Department organises varied interventions workforce'. It is working towards 360-degree
across pan India locations to connect better wellness living up to core purpose of
with employees and proactive handling of energizing lives to make 'BPCL – A Great Place
their grievances. All grievances were to Work'. ESE conducts health camps, talks on
redressed well in time. lifestyle modi ication to inculcate healthy
Employee Engagement Cell is dedicated solely lifestyle amongst employees, at various
towards identifying and resolving the all the locations.
employee grievances. Employees also voice All the operations of BPCL have been subject to
their grievances through various formal and Human rights reviews or Human rights impact
informal channel such as emails to the assessments. Sexual harassment cases are
Chairman, ED(HR) or any other senior handled with great care and sensitivity at
manager directly to address their issues. BPCL. The sexual harassment panel deals with
Employee Satisfaction Enhancement (ESE) any cases raised on these lines. The number of
cell focuses on employee wellness, employee sexual harassment complaints iled during FY
engagement and prompt grievance redressal. 2017-18 are 01 and pending is 01.
Trade Unions
BPCL gives its employees freedom of association and collective bargaining. The health, safety and
welfare provisions of Factories Act, 1948 are applicable to the factories of BPCL. Apart from that, the
long-term settlement signed with Unions consists of explicit clauses pertaining to safety and security.
Formal contracts
1. 21 Registered Unions with trade
(including Re ineries) unions cover
2. Representing 93% of
BPCL employees • Workers’ right to refuse
(non- management) working in unsafe
environment
3. BPCL enters into • Mechanisms to raise safety
formal contracts with concern
the trade unions • Methods to implement
constant inspections
4. These contracts cover at various locations
100% of health
and safety aspects
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Bharat Petroleum Corporation Limited
BPCL has a long-term settlement (LTS) Labour Management
agreement with its unionised staff through The permanent and contract employees are
trade unions, which covers the details of notice treated alike by the Company in terms of
period for consultation and negotiation of the various aspects especially for protecting their
operations of organisation. Minimum notice rights and skilling. This helps BPCL to develop
period of 21 days is typically provided to a strong and mutually bene icial association
employees and their representatives prior to with its workforce. It is mandatory for the
the implementation of signi icant operational workforce of BPCL to abide by the 'Integrity
changes that could substantially affect them. Pact'. This comprises of the legal
The measures taken by BPCL intended to commitments towards governance and ethical
support rights to exercise freedom of conduct, which encompass aspects like
association and -bargaining are as follows: Human Rights, Child Labour, Forced Labour,
Fair Wages and Gender Equality. BPCL being a
a) “Aarohan” – a two-day workshop exclusively responsible organisation complies by all the
designed for the Union leaders was organized national and international Human Rights
for the union leaders across various regions standards. There were no labour grievances
and re ineries. The intent of this workshop iled in FY 2017-18. In addition, there were no
was to give the union leaders a varied signi icant ines and non-monetary sanctions
exposure by putting together a mix of sessions for non-compliance with laws and/or
and discussions which would help them in regulations in the social and economic area. A
enhancing their leadership capabilities as a minimum notice period of 2 months is
leader. provided to BPCL employees and their elected
b) Regular union meetings are also conducted representatives, prior to the implementation
in which employee representatives discuss of signi icant operational changes.
and resolve various issues with the human To ensure transparency and accountability, IT
resources/ employee relations team who systems are set for contract management. The
ensure speedy and effective solution. system tracks the entry and exit timings and
serves as a security mechanism to ensure
discipline amongst contractors/ contract
labour.
Corporate Safety Management System manual launch during annual HSSE award function at Chennai
BPCL ensures to deliver energy to the nation in
a safe and responsible manner. The Health,
Safety and Environment (HSE) Policy validates
the concern and commitment for protecting
the health and safety of all BPCL employees,
contractors, customers and the communities
in which it operates, while having a target of
zero occupational incidents. It complies with
all statutory regulations and may even go
b e yo n d t h e s e f o r t h e b e n e i t o f t h e
environment and well-being of its employees.
At BPCL, safety is embedded in the mindset of
the people with the moto of 'Safety First –
Safety Must'. Strong and dedicated safety
leadership is essential components to have
safe and sustainable work environment. An Project SHUNYA
effective safety culture requires proactive The nature of risk attached with oil and gas
c o m m i t m e n t , a c c o u n t a b i l i t y, a n d i t s industry calls for comprehensive preventive
continuous reinforcement from all levels of the measures in the business processes, protocols
management. All health and safety related and work culture. BPCL's emergency response
data mentioned in this report is related to plan covers Preparedness, Mitigation,
FY 2017-18. BPCL's Corporate Safety Planning and Restoration (PMPR).
Management System (CSMS) is a systematic
and structured approach to manage the I.
Emergency
occupational health & safety risks associated
IV. Preparedness
with the operations to As Low as Reasonably
Restoration
Practicable (ALARP) level in accordance to
BPCL's business goals, values and HSE policy.
CSMS the highest-level document in BPCL's
safety management system and describes the II.
corporation's strategic approach to safety Mitigation
management. It applies to all BPCL operations,
assets, and facilities, employees, contractors, III.
and other relevant stakeholders. Planning
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Sustainable Development Report 2017-18.
I. Emergency Preparedness Response and Disaster Management Plan
Emergency preparedness includes developing (ERDMP) which is prepared as per the PNGRB
plans for what to do, where to go, persons to be guidelines. A set of guidelines have also been
contacted for help before an event occurs. This shared with the workmen so that they are alert
planning of actions improves chances of and well-equipped to handle emergency
successfully dealing with an emergency. situations.
At re ineries and all the marketing locations A key annual target of the Health, Safety,
employees and workmen are prepared to face Security and Environment (HSSE)
emergency situations through regular mock Department review the Emergency Response
drills. Proper planning/preparations saves and Disaster Management Plan (ERDMP) for
lives and helps minimising the impact of any certain selected locations (locations with
emergency or calamity. To ensure that major operations), DCMPs of certain locations
recurrence of the accidents is averted, all & Fire Drill reports, identify gaps in emergency
accidents are documented and analysed. preparedness, and align BUs for taking
There is also an involvement of local necessary mitigation methods. HSSE also
communities during the safety brie ings. monitors BUs for undertaking live ire ighting
These drills are based on Emergency training.
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Bharat Petroleum Corporation Limited
Fire Truck at Kochi Re inery
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Sustainable Development Report 2017-18.
There was no case of male or female fatality with the Company and contract employees due to BPCL
operations in FY 2017-18. The data collected for injury, cases of occupational diseases, man-days lost
and missed (absentee) days is currently not bifurcated into male female.
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Bharat Petroleum Corporation Limited
Fire ighting at Mumbai Re inery Fire ighting in progress - Mock Drill, Bijwasan
73
Sustainable Development Report 2017-18.
The ERDMP plan for all locations has been On 22.08.2017, ED (I&C) arrived at MR to
prepared and certi ied in line with PNGRB participate in the irst ever Safety program
guidelines. Exhaustive trainings were designed exclusively for the customers which
conducted during the year (17 Nos. trainings received participation from 50 customers and
by Retail & 16 Nos. by LPG). Also, Corporate of icials from MR & Sewree, besides the
HSSE has published an induction training Mumbai territory team.
booklet for new of icers inducted into retail
BU.
The 7-70-700 Mission got bigger with 'Safety Connect' at Mumbai Re inery!
received participation from 50 customers and
Of icials from MR & Sewree, besides the
Mumbai territory team.
Queries of the customers related to supplies
and ire handling were taken up and safety
presentation was made. The excitement levels
rose higher with Safety Quiz conducted.
The highlight of the day was one of the
customers occupying the chair of the Chief
Guest which was in complete sync with the
Philosophy of a customer-centric
organization. The customers appreciated the
program and mentioned that for the irst time
any oil company has shown such concern for
safety at their premises thereby strengthening
On 22.08.2017, ED (I&C) arrived at MR to the bond with them. All the participants were
participate in the irst ever Safety program presented with a certi icate of participation
designed exclusively for the customers which and memento as a token of gratitude.
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Bharat Petroleum Corporation Limited
Director (Re ineries) launches "BPCL KR Online" of icial YouTube channel of
Kochi Re inery
Kochi Re inery is pleased to announce the videos published, featured and followed by
launch of "BPCL KR Online" with the New BPCL Kochi Re inery.
Year Greeting from Mr. R Ramachandran,
Director (Re ineries), BPCL on the irst day of This can also be shared through social media
the New Year. channels on Facebook and Twitter. Links to the
The YouTube channel, BPCL KR Online will videos will be available on the KR page in the
serve as the central repertoire of all HD BPCL website and can be accessed using
news,events, campaigns and commercial smart-phones or external drives.
75
Sustainable Development Report 2017-18.
A Road from Waste Plastic – A Novel Concept Developed by CRDC, Greater Noida
Waste plastic has become a massive concern, • Plastic once utilized will not enter into
as its disposal is one of the critical challenges atmosphere and hence environmentally
faced globally. In order to tackle this, a road has friendly.
been constructed in Mumbai Re inery with • Can accommodate most types of waste
novel concept developed by CRDC Scientist, Dr. plastic with high volume of consumption.
Mahesh Kasture. Mixed waste plastic from • There is almost no need to segregate
paper industry has been used to construct this amongst different kind of plastic.
road. • Locally generated waste plastic can be used
Prior to this, the irst demo road was within the same vicinity that will arrest it from
constructed at CRDC, Greater Noida that is in spreading in the surrounding area.
use since last 9 months. A module developed • It may result in a best business model for
form mixed waste plastic from paper industry utilization of mixed waste plastic.
can be directly put to use on site.
In order to valorize the concept with higher The waste plastic used is being characterized
wheel load, a stretch of 130 square meter on by NCL, Pune and technical and structural
road no 13 of Mumbai Re inery has been parameters of this road will be tested by IIT,
prepared using waste plastic modules Roorkee.
wherein about 2 tons of waste plastic has been
utilized. It is worth noting that, with this
technology, around 40 tons of waste plastic
can be utilized in 1 km (6 meters width and
1000 meters length). A product and process
patent for this innovation has been iled by
CRDC. This technology has a number of ' irsts'
to its credit like:
Road from plastic
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Bharat Petroleum Corporation Limited
Connecting with
Communities- CSR
Programmes
Connecting with Communities- CSR Programmes
BPCL believes that some of their inest Keeping in mind the huge income gap and
achievements aren't those found in their disparity in the rural and urban population,
balance sheets but those found through their BPCL initially started working in Mahul, a
CSR activities in small towns and villages village located in the neighborhood of its
spread across India. This year with attainment Mumbai re inery in 1986.The sole reason of
of the Maharatna status, BPCL has not only working was social upliftment of the ishing
attained huge brand value but also an community as they needed direction and help
increased responsibility and expectations in many areas such as education and health.
from all its stakeholders. The involvement in After the initial success and satisfaction, BPCL
sharing this wider responsibility dates way immediately adopted another village –Karjat.
back to 1984. BPCL's vision and overall This helped BPCL to introspect about the
strategic objective is to embed sustainability future social responsibility and its role in
in the corporate culture and processes to further contributing to this effort. BPCL
achieve sustainable growth while pursuing its sel lessly contributes to development of the
philosophy “to give back to the society/ society, these investments for development of
community to the best”. BPCL moves forward infrastructure and services are pro-bono and
aligning its CSR mission and vision with the in-kind in nature. Currently, BPCL has adopted
vision of the Company. Over the years, BPCL villages across India to make them fully self-
has contributed towards the goal of achieving reliant, providing them with fresh drinking
Sustainable Development and made water, sanitation facilities, medical facilities,
considerable progress in the thrust areas. enhancing income standards by imparting
CSR being ingrained into the business vo c a t i o n a l t ra i n i n g a n d a g r i c u l t u ra l
strategy; various initiatives have been innovations. BPCL believes that education is
pioneered to address some important the only means to raise the villagers from their
developmental challenges. Other aspects that present state. Therefore, there is a focus on
are an integral part of CSR – connected with providing grants for opening schools and
operating and inancial results, corporate opening adult literacy camps as well. Today,
governance and customer satisfaction – are through institutionalized and project-based
handled in a cross-disciplinary way. BPCL aims approach, BPCL has scaled up existing
to help the people enrich their lives, be it their projects, taken up new initiatives and exited
employees, their families or people in from those that have been completed and
surroundings and thus started their efforts for handed over to the stakeholders involved.
the society.
The information, material for this report is
aligned with the GRI Standards for
sustainability reporting, was gathered from
internal departments and is mainly based on
information available through internal
reporting. The information is limited to the
activities of BPCL, excluding its subsidiaries.
In partnership with several organisations
BPCL has been supporting projects that
bene it the underprivileged and marginalized
sections of society. Thus, contributed towards
the goal of achieving sustainable
development.
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Bharat Petroleum Corporation Limited
EDUCATION SKILL HEALTH AND
DEVELOPMENT HYGINE
WATER COMMUNITY
CONSERVATION DEVELOPMENT
BPCL KEY
CSR AREAS
CSR VISION
"Be a model corporate entity with social responsibility committed to energizing lives through
sustainable development".
CSR MISSION
CSR OBJECTIVES
Health and Safety - To ensure the health and safety of our work force and communities
as part of CSR strategy.
Environment - To minimize adverse impacts while taking steps to protect and enhance
the natural environment.
79
Sustainable Development Report 2017-18.
BPCL CSR Methodology
Community
• Initiatives to be integrated with
Development business strategy and context.
PA
LV
RT
VO
N
IN
ER
Constitution of the CSR Committee of the Board and its core responsibility :
·The CSR projects are largely executed · The assessment of the impact of projects
in and around the Business Units is crucial. The impact assessment is
mainly in the above-mentioned conducted as a part of the project for
thrust areas. most of its projects. The impact is
generally designed for a big project,
·Furthermore, certain initiatives are which is then replicated or scaled up.
carried out in rural or tribal areas for Also, third party impact assessment
backward, underprivileged, SC / ST/ is conducted as per the policy.
OBC population as well. These are with
the sole intention of nation building.
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Bharat Petroleum Corporation Limited
BPCL CSR Initiatives
Corporate Social Responsibility (CSR) is an BPCL acknowledges the positive and negative
integral part of BPCL's culture and their core impact caused by its business operations on
values. The Company has worked beyond the local communities surrounding the
compliance by impactful investments for locations. Therefore, BPCL has a committed
socio-economic development of the most CSR department solely dedicated towards
underprivileged sections of the society in the assessment of impacts on the communities
vicinity of their footprints and in remote areas surrounding all their business locations.
a s w e l l . B P C L' s a p p r o a c h t o s o c i a l The impact assessments aid in identifying the
responsibility and subsequent CSR policy is grievances of the community. It is ascertained
what has made it an 'innovative, caring and that the Companies operations do not have
reliable' Company. any negative impact on local community. With
In FY 2017-18, BPCL provided a budget of Rs. an aim to build powerful partnerships with
183.33 Crores and has allocated the entire society for sustainable development, some of
budget for various projects within the items the key initiatives undertaken by BPCL are
enumerated in Schedule VII, which includes mentioned in the following pages:
several initiatives of national importance.
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Sustainable Development Report 2017-18.
Education
In order to empower Mathematics
teachers to facilitate conceptual
learning in students, a Mathematics
Enhancement Project, 'Ganit Shakti'
was taken up in Government schools
of Chhattisgarh.
Saksham is also one of the lagship
projects of BPCL for teacher and
headmaster training. This project
encourages teachers to use new
techniques for teaching, classroom
management as well as developing
new teaching materials according to
the differential needs of the class. A
set of primary/upper primary
Computer Assisted Learning class at BMC school - Mumbai
BPCL believes that imparting quality teachers and headmasters from 64 low
education is the key to uplift socially backward income/ Government schools of Mumbai were
or underprivileged sections of society. It is taken through a series of sessions on various
transforming lives through improving the topics, both pedagogical and management-
quality of education while imbibing related. This year it has completed its ifth
technology and innovation into the process. batch successfully.
BPCL's commitment towards education can be
recognised with its lagship projects
Computer Assisted Learning (CAL). This
project has been replicated and scaled up
where possible. CAL is one such project that is
promoting education through digital literacy
for students, up to 10th Std. in low income
schools of Mumbai and Jaipur. This FY 2017-
18 project CAL has been replicated in 50
centres located in Municipal Corporation of
Greater Mumbai (MCGM) school buildings and
20 schools in Washala, a tribal village in Thane
district . The intervention focuses on
improving children's learning levels in
Mathematics and Language using computers.
More than 1 lakh children have been
bene itted under this initiative so far. Further,
valuing the importance of learning while
reading, BPCL has set up 24 libraries covering
3,779 children in Zilla Parishad schools of
Uran Taluka, District Raigarh in Maharashtra.
These libraries are managed by Children
Management Committees in the respective
schools.
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Bharat Petroleum Corporation Limited
Health and Hygiene
83
Sustainable Development Report 2017-18.
Ensuring a Bright Future
Skill development
In line with 'National Skill Development One such high impact project was the skilling
Mission' of India, of icially launched by the of 396 leprosy affected youth in various trades
Hon'ble Prime Minister on the occasion of like Motor Vehicle Mechanic, Welder,
World Youth Skills Day in 2015, BPCL has Computer Operator, Programming Assistant,
taken lead in setting up a state-of-the-art Skill at centres at Nashik, Champa, Faizabad,
Development Institute (SDI) in Kochi and also Bankura, Vadathorasalur and Vizianagaram.
participated in and contributed towards other In a similar manner, projects have been
SDIs in Bhubaneshwar, Visakhapatnam, undertaken for training visually impaired
Raebareli and Guwahati. These SDIs have been youth in Acupressure and Massage Therapy in
set up to enhance their employability quotient Latur, rehabilitation and skilling of street
for the Oil & Gas Industry as well as for other youth in Mumbai and employment linked
Industries requiring skills of a similar nature training to 30 adolescents with autism /
Various skill development programmes intellectual disability in Mumbai. Moreover, in
focuses on placement/employment-linked line with the 'Skill India Mission' of
skilling of women, unemployed youth and the Government of India.
disabled.
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Bharat Petroleum Corporation Limited
Community Development
In order to make a difference, BPCL has made B i o - G a s P l a n t s fo r r u ra l h o u s e h o l d s ,
continuous efforts for community promoting better life for women folk by
development by creating various providing a sustainable and non-polluting
opportunities through focused and proactive fuel. Creating similar impact are projects like
projects.The projects are based on extensive installation of Solar Street lights in rural areas,
need assessment and focuses on providing which not only serve to electrify rural villages,
sustainable solutions that engage the but also improve safety and convenience for
community that is bene itted. the villagers.
BPCL has been supporting the construction of
Water Conservation
Water is integral part of human existence and practices has led to one of the biggest
its ef icient management is indispensable. environmental and social challenge India faces
Today, thousands of people do not have access today (UN Report). India has about 17 per cent
to basic drinking water and this lack of water of the world's population as compared to only
availability of water and poor management 4 per cent of its water resources.
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Sustainable Development Report 2017-18.
Clean drinking water stand for community people at Ottaya godwa dewas, Udaipur
Recognising the severity of this daily battle To ensure that all the BOOND projects are
being fought by thousands of people living in s u s t a i n a b l e , B P C L h a s e n ga g e d l o c a l
rural and urban India, BPCL has undertaken its communities by supporting formation of
lagship project BOOND to minimise the village level associations, children's clubs,
impact of this problem. This project has micro- inance groups or farmer federations,
received prestigious recognition over the t h e re fo re wo r k i n g to wa rd s e n s u r i n g
years. Starting out with four villages in 2009, sustainability. This project is in operation in
today BPCL has transformed more than 190 the states of Maharashtra, Tamil Nadu,
villages into water positive dwellings through Karnataka and Rajasthan and has covered 38
Project Boond. villages during FY 2017-18, helping to
BPCL started with a focus on 'drinking-water', increase agricultural yield, loriculture and
however gradually evolved to include projects horticulture in the villages, thereby reducing
which are aimed at increasing availability of migration. To further their involvement in the
water for agriculture, livestock and ground projects, BPCL also motivated them to
water recharge. contribute 25% of the expenses so that they
BPCL has successfully reached out, both become more responsible and assume its
directly and indirectly, to the communities in ownership. It also contributes to the
the villages through desilting of tanks, supply community themselves where they adopt
channels and link channels in the tank chain additional skills in the process of contributing
cascade, strengthening of bunds, check-dams, to the projects. Community contribution
village ponds, repair /reconstruction of i n c re a s e s t h e c o m m i t m e n t f ro m t h e
structures for water regulation, setting up roof community, motivates them, thus developing a
rainwater harvesting, thereby increasing the long-term sustenance for the projects. Several
availability of water. Thus, transforming committees such as Village Water Committees,
villages from water scarce to water positive. Women's Self-Help Group, Farmers' group and
Children Water Clubs were also formed to
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Bharat Petroleum Corporation Limited
educate and empower participants. This made The process of involving the community,
it an organized effort, where all members of encouraging them to make a inancial
the community are focused and work towards contribution, organizing the community into
a particular goal. Lastly, BPCL also held work groups for focused effort and building
sessions for capacity building of these their capacities to achieve the desired goal has
community groups. These sessions equipped led to formulate an effective foundation for
them with skills required to maintain and BPCL to step out of the areas once the
monitor the projects independently. community self-reliant.
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Sustainable Development Report 2017-18.
Minimising
Environmental
Impact
Minimising Environmental Impact
Energy
Management
Emissions Water
(Renewable and
Management Management
Non-Renewable)
Wastes and
Biodiversity
Ef luents
Management
Management
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Sustainable Development Report 2017-18.
which was undertaken by 'The Energy and across India. These plants are being developed
Resources Institute' (TERI), supported by the as pilot projects, where rooftop solar plants
'Federation of Indian Petroleum Industry' with battery storage will be incorporated. The
(FIPI) inwhich BPCL was an active participant. detailed feasibility and system design study
This study was aimed at understanding the has already been completed and construction
challenges and their nature for the Indian oil of these plants will commence soon. In the FY
and gas sector. The study also analysed the 2017-18, rooftop solar units in 216 retail
preparedness of the Indian oil and gas sector outlets were installed, taking the number of
to meet the Paris Agreement reporting total solarized retail outlets to 1,217.
requisites. The study proposed sets of short- The renewable energy capacity has increased
and long-term action points for helping the from 22.17 MW to 26.36 MW by year end. The
oiland gas sector of India to face the challenges capacity of energy ef icient lighting has also
of climate change. been increased from 6.20 MW to 7.54 MW.
These initiatives have resulted in an annual
The impact of transition towards low-carbon reduction of GHG emissions by 43,660 Metric
development is subject to the pace of Tons of CO2 equivalent. Further, BPCL plans to
technological advancements and coming up of venture into development of large scale
renewable energy sector. In line with India's solar/wind power projects on JV basis as a
target of developing 175 GW power from long-term plan.
renewable energy sources and to mitigate the BPCL takes continuous energy conservation
climate change threats arising out of use of initiatives through energy monitoring
conventional, BPCL is promoting use of green systems, energy audits, technology
energy. innovation, replacement by energy ef icient
The Company is now constructing rooftop and equipment etc. These energy conservation
ground mounted captive solar plants in 5 initiatives are also benchmarked with global
installations / depots and 5 LPG plants. The standards. The Re ineries have underdone
total capacity of these plants will be about 4 structural changes to improve energy
MW. ef iciency, resulting in fuel saving.
BPCL is also developing hybrid plants in 18.
Company owned large format retail outlets
World Environment celebration at Piyala (Pipeline) World Environment celebration at Piyala (Pipeline)
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Bharat Petroleum Corporation Limited
Mumbai Re inery Initiatives:
M u m b a i Re i n e r y h a s a c c o rd e d h i g h • Continuous monitoring and control of all
importance to energy conservation and parameters of Furnaces and Boilers.
environment protection. The following energy • Continuous recovery of lare gas with the
conservation and loss control measures were help of FGRS and strict monitoring of process
adopted by Mumbai Re inery during FY 2017- conditions to control lare loss.
18 which have resulted in signi icant fuel • Survey of Pressure Safety Valves/ Pressure
savings: Control Valves to identify passing valves and
• “Chemical decontamination” technique has recti ication to reduce lare loss.
been adopted during re inery turnarounds. • Periodical Survey of Compressed air and
This resulted in reduction of turnaround Nitrogen leaks and recti ication.
duration and also improved heat exchanger • Superior insulation was provided on steam
cleaning. headers to reduce surface heat loss.
• Excellent Hydrogen Management was • Availability of a robust “Energy Portal” for
achieved by processing of hydrogen rich off on-line monitoring of re inery process
gas ex CCR (Continuous Catalytic Reforming performance and energy consumption,
Unit), in Hydro-cracker-PSA (Pressure Swing including monitoring of “signi icant energy
Absorption Unit) and Hydrogen Unit to uses”.
recover valuable hydrogen from the off gases. • Implementation of various Advance Process
• On-line chemical cleaning of furnaces to Control (APC) strategies in CDU3/4, HCU, CCR,
clean off fouling and deposits on the radiation Boiler house, DHDS, ARU complex and CCG
tubes leading to better heat absorption in splitter.
radiation section. • Effective usage of Advance Process Control
• Implementation of “Steam Trap and Leak (APC) in High Ef iciency Boilers (HEB) and
Management” project to achieve zero steam “Online Utility Planner and Optimizer”, a irst
leaks in FCCU (Fluidized Catalytic Cracking of its kind in the country.
Unit /CCR/DHDS (De-hydro De- • Replacement of AFC fan blades with energy
sulphurisation) Complex. ef icient FRP (Fiber-Reinforced Plastic) blades
in CCR and ARU.
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Sustainable Development Report 2017-18.
Steps taken by BPCL's Mumbai • Installation of vapour absorption machine in
Re inery for utilising alternate Air conditioning systems of sub-stations and
Satellite Rack Rooms (SRR).
sources of energy:
• Online connectivity: BPCL Kochi Re inery is
• A Solar power plant has been installed at
one of the irst industries to give online
Re inery Admin building to harness solar
connectivity of all its stack monitoring data.
energy. In FY 2017-18 solar power generated
(All 26 stacks in the then existing re inery
was 50.46 MWH. During the year 2017-18,
given on-line connectivity starting with 23
Mumbai Re inery has added 614 KW of solar
stacks on 24-2-2016) Continuous online SO2,
power generating capacity to the existing
CO and NOx analyzers are provided for heaters
capacity of 40 KW, taking the total generating
and boilers for monitoring the sulphur
capacity of solar power to 654 KW. 13
dioxide, carbon monoxide and nitrogen oxide
separate units have been added during the
emissions from them and the data are
year 2017-18 alone.
provided online to CPCB server/KSPCB. All the
• During FY 2017-18, 5,315 ittings were
data monitored online is made available to
installed with a cumulative power saving of
CPCB server through CPCB approved agency
115.5 KW. Further, during the year 2018-19,
M/s Yokogawa India Limited.
all the 125 Watt and 250-Watt HPMV (FLP)
• Rain water harvesting: Roof-drain rain water
ittings in the entire Re inery will be replaced
harvesting schemes are implemented for
with 45 Watt and 105-Watt LED ittings
collecting rainwater from administration
respectively. The overall savings achieved will
block and ARU/CDU2 block. About 1,75,000
be reported in the subsequent report.
KL water is collected during monsoon period
by way of surface runoff generated at the
ACTP/APTP area alone. Another rain water
harvesting pond is constructed at Shore Tank
Kochi Re inery Initiatives: Farm, Puthuvypeen in an area of 5 acres. The
The following energy conservation and loss rain water so collected is used for cooling
control measures were adopted during FY water make up, ire- ighting purposes and
2017-18, resulting in signi icant fuel savings: green belt development.
• Installation of Plate Type Heat Exchangers in • Paper recycling: BPCL Kochi Re inery has
Crude/ Vacuum Residue service in CDU2 to engaged M/s Plan@Earth, a registered NGO
improve Crude Pre Heat Temperature. working for the environment to take all sorts
• Usage of Very High Pressure (VHP) steam in of waste paper and also clean plastic from the
Integrated Re inery Expansion Project (IREP) premises. The waste paper so collected from
instead of High Pressure (HP) steam, along the premise is sent straight for pulping to ITC
with back pressure turbines. Ltd under the WOW (Wealth Out of Waste)
• Installation of Power Recovery Turbine for Project. Value is realized in terms of fresh
Diesel Hydro-treater (DHDT) unit feed pump recycled paper.Green Certi icate is also issued
in IREP. at the rate of 60 kilos of recycled paper
• Installation of Power Recovery Turbine for equivalent to one tree. This way Kochi
Vacuum Gas Oil Hydro-treater (VGO-HDT) unit Re inery recycled 69.65 tons of paper this year
feed pump in IREP. thus saving around 1,161 trees as per the
• Installation of Power Recovery Turbine for calculations.
VGO HDT unit Amine pump in IREP. • A “Waste to Energy” project for the city of
• Installed Power Recovery Expander for Petro Kochi is under implementation and BPCL
Fluidised Catalytic Cracker unit (PFCCU) in
IREP.
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Bharat Petroleum Corporation Limited
Kochi Re inery has offered a viability gap • Ecological park: An ecological park
funding to the tune of Rs 25 Crores for the developed over an area of 5.5 acres is
successful implementation of the same. maintained within the re inery premises. This
Through this project it is proposed to produce is with a view to maintain a healthy ecosystem,
electrical energy from municipal solid waste develop clean environment, control pollution
by utilizing the services of an external agency and prevent soil erosion. About 3770 different
(M/s G J Nature Care and Energy Pvt. Ltd varieties of plants are planted in this area.
Consortium). • RO plant: A Reverse Osmosis (RO) plant is
• Re-gasi ied Liquid Natural Gas (RLNG) for being set up to re-use treated ef luent and thus
power generation: Installed facilities for using to reduce water consumption.
Re-gasi ied Liquid Natural Gas (RLNG) for • ESP: An electrostatic precipitator (ESP) has
power generation to reduce greenhouse gas been installed downstream of CO Boiler for
emissions. minimizing particulate matter emission from
• ISO 50001 Implementation: One of the irst FCCU regenerator lue gases.
companies in Kerala to adopt ISO 50001 to • AAQMS: Five continuous online Ambient Air
bring in better energy management practices. Quality Monitoring Stations (AAQMS) have
BPCL Kochi Re inery got certi ied as per ISO been installed for monitoring ambient air
50001 Energy Management System. quality in the re inery premises. Three
• Natural day light usage: 56 numbers of day continuous ambient air quality monitoring
lighting systems – Norikol were ixed in the stations (AAQMS) are installed at theShore
main Workshop and the central warehouse to Tank Farm area also for proper monitoring of
make them a totally day lit area. the ambient air quality in that area.
• Rejuvenation of a nearby fresh water lake: • Low NOx burners: To control emission of
BPCL Kochi Re inery supported the NOx, low NOx burners have been provided in
rejuvenation of a nearby fresh water lake all high capacity heaters and boilers.
(Thanneerchal Project) at Irimpanam with a
funding of Rs 1.42 crores. The area has now Steps taken by Kochi Re inery for
developed into a park cum boating club. utilising alternate sources of energy:
• Solar powered security watch towers: Five • Installed 60 kW solar plant on top of the
security watch towers at remote locations get CDU2 substation. The annual electricity
powered fully from the sun making it a net generation was 46.8 MWh.
energy zero green building. • Installed 56 natural day-lighting systems
• 25,000 Trees for Mother Nature: Large scale inthe main workshop and the main warehouse
afforestation is one of the important instead of luorescent tubes resulting in
programmes against fugitive and particulate annual electricity savings of 25 Mwh.
emissions and noise pollution. It is more than
well established that vegetation interacts
Pipeline Initiatives: The total number of
with gaseous and particulate pollutants and
energy ef icient LED lights installed at stations
mitigate their adverse effects. With this
of pipelines as energy conservation measures
objective Kochi Re inery rolled out a
is 984. This resulted in a saving of 7,742 kWh
programme for planting 25,000 trees for
units. A notable achievement after July 2017 is
m o t h e r n a t u r e o n t h i s ye a r ' s Wo r l d
about using old pumps (2 no.s) at MDT which
Environment Day.
consume comparatively lesser power than the
• Biogas plant: A bio-gas plant with a capacity
new pump (1 no.). By using DRA for old pumps,
of processing one ton of food waste generated
the same low rate was achieved as that of the
at the canteen is in operation. The bio gas
new pump (approx. 1,150 kl/hr). We have
generated from the plant is used for cooking in
achieved Net saving achieved is Rs. 1.88 Crores
the canteen and the organic manure is utilized
from July 17 to March 18.
as manure for vegetation.
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Sustainable Development Report 2017-18.
Steps taken by Pipeline Segment for using alternate source of energy:
Renewable energy capacity has increased The total amount invested on renewable
from 22.17 MW to 26.36 MW. These initiatives energy is Rs. 6,25,43,230.
have resulted in an annual reduction of
emission by 43,660 metric tons of CO2
equivalent.
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Bharat Petroleum Corporation Limited
Capital Expenditure on Sustainable Development projects:Mumbai Re inery:
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Sustainable Development Report 2017-18.
Replacement of AFC fan blades with 0.03
EFRP blades of CCR splitter O/H: 0.25
13.
Power saving is about 30 kWh.
Provision of Step less control in DHDS 0.112
1.33
MUG compressor:
14. By installing Hydro-COM step less capacity
control system, power consumption reduced
Reduction in steam consumption of HCU RGC 833
by correction in gas/oil ratio based on current
15. molecular weight: Nil
Steam reduction of 35 MTPD could be realized.
Revision in HCU Fractionator (C204: 132P213B) 595
and Product stripper (C203: 132P211B)
16. re lux turbine pumps rpm: Nil
This resulted in reduction of 25 MTPD of
steam consumption.
Energy saving bene its as achieved and 7,500
17. sustained from APC:
From various strategies implemented in
Nil
CDU3/4, HCU, CCR, Boiler house, DHDS,
ARU complex and CCG splitter, 22.5 MTPD
of fuel was saved.
Kochi Re inery:
Capital Energy Savings
S Details of energy conservation
Investment in Fuel Power
No. equipment and division
₹ Crores (MT/year) (MWH/year)
Installation of Plate Type Heat Exchanger in 8,238
2.16
1. Crude/ VR service in CDU2 to improve Crude
Pre Heat Temperature by 25oC.
2,972.5
Installed Power Recovery Turbine for Included in
4. DHDT feed pump saving power by 359 KW IREP cost
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Bharat Petroleum Corporation Limited
Renewable energy status of BPCL
Solar Energy
1,362.03
(off grid) consumed 50.46 MWh 50.97 MWh 1,260.60 MWh
MWh
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Sustainable Development Report 2017-18.
The amount of energy consumed outside the travel by air and the import of crude and LNG.
organisation is 27,183.86 thousand GJ. BPCL There is a restatement on the energy intensity
does not sell electricity, heating and cooling as the calculation methodology has been
energy. The energy consumed outside the updated.
organisation has been calculated for business
*The unit taken for the values is MBN, where: M = Thousand BTU (British Thermal Units),
B = Barrel and N = NRGF (net re ining gain factor)
Signi icant Location Direct energy (Million GJ) Indirect energy (Million GJ)
Mumbai Re inery 30.06 0.54
Kochi Re inery 44.84 0.33
For energy consumption calculation local as direct and indirect energy consumption
conversion factors released by TERI were respectively in the above table. For total
used. Energy consumed at BPCL is broadly energy and energy intensity igures energy
through burning of non-renewable fuels and consumed within the organisation is
purchase electricity from the grid, presented considered.
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Bharat Petroleum Corporation Limited
Retail LPG
Energy Consump on within the Organisa on Energy Consump on within the Organisa on
( 000GJ) ( 000GJ)
600 567.61 575.26 578.72
550
513.11
500
450
Lubricants Aviation
Energy Consump on within the Organisa on Energy Consump on within the Organisa on
( 000GJ) ( 000GJ)
The types of energy involved in energy savings are diesel, steam and electricity. Reduction is based on
the total numbers presented in the above-mentioned graphs.
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Sustainable Development Report 2017-18.
Emissions Management
Indian government holds primary This in turn will mitigate climate change and
responsibility to contribute to securing the global warming.
energy supply with respect to the growing BPCL's emissions from operations include
energy demand. The imperatives of low- carbon dioxide, NOx, SOx, methane and other
carbon development, embedded in India's gases. BPCL has set periodic targets at all
Nationally Determined Contributions (NDC), locations. Systems and system up-gradations
has put tremendous pressure on the Oil and are made to measure the quantum of
Gas sector to invest in lower emission emissions. BPCL is progressing towards zero
intensive technologies. In line with India's ozone depleting substance (ODS) emissions
NDC target of reducing GHG emissions from both Mumbai and Kochi re ineries. The
intensity of GDP by 33 to 35% from 2005 levels details of the direct and indirect GHG
by 2030, BPCLs seek opportunities to reduce emissions over the years along with the GHG
its emissions associated with its operations emissions intensity for both Mumbai and
and the products by energy ef icient Kochi re ineries is represented below:
technologies in their operations.
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Bharat Petroleum Corporation Limited
Total GHG Emissions- Scope 1+
Re inery Other BUs
Scope 2 ('000 MTCO2e)
FY 2014-15 3,721.62 118. 49
FY 2015-16 3,959.25 116.76
FY 2016-17 4,084.60 135.81
FY 2017-18 5,311.55 128.64
The amount of lared and vented hydrocarbon from MR and KR is 28,389 MT.
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Sustainable Development Report 2017-18.
Water Management
Water management is an important aspect at 7,22,800 sq. meter which has been increased
BPCL as water is vital for all forms of life. BPCL to 7,73,427 sq. meter during the year. No water
recognises the value of this natural capital and bodies have been signi icantly affected by
works to manage their water use and to limit withdrawal of water by units of BPCL around
adverse impacts to water resources. BPCL has the areas of operations nationally.
taken several initiatives to optimise water In FY 2017-18 the total water withdrawn by
consumption at various locations throughout BPCL is 57,459.98 thousand KL. The major
India. It has adopted rain water harvesting water sources along with the details of water
system and reusing/recycling of water consumption for re ineries and another BUs
wherever possible. The total catchment area for FY 2017-18 is given in the table below.
under rain water harvesting is
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Bharat Petroleum Corporation Limited
Total water consumed in pipelines was Rain water harvesting is achieved at IPS-
2,29,398 m3 during FY 2017-18. Pipelines Washala where the rain water is collected in
h ave i n s t a l l e d ra i n wa te r h a r ve s t i n g pit and transferred to ire water storage tanks
mechanisms at various locations including (1,160 KL) for ire ighting to conserve water.
Gujri, Piyala, Mathura and Javkheda, which has Waste water discharged by BPCL is not used by
captured approx. 4,087 KL rain water in 2017- any other organization.
18. Rain water is used for domestic purpose.
Waste generation is inevitable but minimising BPCL is trying to utilise this water for
environmental damage, possible onsite signi icant operations of the industry,
treatment and proper disposal in the best p rov i d e d i t m e e t s t h e wa t e r q u a l i t y
possible way is feasible. BPCL continuously requirements. BPCL uses the treated water for
strives to reduce waste generation and secondary purpose. Most of the waste water is
enhance waste management. BPCL aims to discharged to open land within the boundary
maintains a regular check on the discharge of of the location. The waste water discharged
ef luents from all the operations involved in outside the boundary by BPCL has not
the industry. The installed Ef luent Treatment negatively affected any water body. Waste
Plants (ETPs) are functioning satisfactorily water discharged by BPCL is not used by any
and the ef luent quality is in conformance with other organization.
the regulatory standards. To achieve the
recycling goals, focus on proper waste
selection is imparted by awareness campaigns
and internal audits. Solutions to minimize
waste production are sought to enhance the
recycling in an economical, ecological and
ef icient way.
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Sustainable Development Report 2017-18.
Total water discharged by quality
Mumbai Re inery Kochi Re inery
(Concentration in mg/L)
pH 7.39 7.24
Treatment and
3,249.14 347.04 79.89 35.88
disposal of waste
Depreciation and
maintenance cost
of equipment's used 2,996 1,475.99 59.39 44.24
in pollution control
External services
for environmental 480.84 273.93 146.23 39.11
management
External
certi ication of 4.22 2.32 52.49 35.35
management systems
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Bharat Petroleum Corporation Limited
BPCL maintains environmental standards as sanctions or cases brought through dispute
per national laws and regulations. In FY 2017- resolution mechanisms nor there has been any
18 there were no ines, non-monetary major accident, incident/ oil spill.
Waste Management:
Launch of Waste Management Manual during annual HSSE Award function at Chennai
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Sustainable Development Report 2017-18.
Waste generated from Re ineries
Batteries/
Electronic Handed to Suppliers Paper Sold to authorised agencies
Waste
• Through buy back agreements • For Recycling
Used ilters
/ Used oil Handed over to Ferrous Sold to authorised
rags/ PCB authorised Vendors Scrap agencies
cotton
• Futher treatment and disposal • Recycling and refurbishing
in secured land ills
These are some of the most signi icant waste that is generated within BPCL with the methods of
disposal. A list of hazardous and non-hazardous waste generated and disposed with their quantities is
reported in annexure 3 of this report.
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Bharat Petroleum Corporation Limited
BPCL has a contract with Central Pollution Bioremediation is a process that uses living
Control Board (CPCB) authorised hazardous organisms such as microbes and bacteria to
waste disposal vendors, they collect the waste reduce contaminants, pollutants and toxins
from the premise and accordingly transport from soil and water. It can be used to clean up
the same as per the requirement of disposal environmental problems like an oil spill or
method. BPCL complies with all the statutory contaminated groundwater.
norms and regulations stated by MoEF & CC, BPCL and the farmer jointly surveyed and
CPCB and State Pollution Control Board identi ied vacant piece of land in his ield
(SPCB). In FY 2017-18, hazardous waste of adjoining to leak site for sun drying oil-soaked
more than 2000 tonnes was treated through soil. Speci ic marking and fencing of vacant
bio-remediation. No hazardous waste was piece of land was carried out having proper
transported, exported and imported by BPCL. access for personnel and vehicular movement
Total hazardous waste (such as used oil, oily for handling, unloading and spreading of the
sludge, battery, e-waste, waste hand gloves, oil soil. BPCL mobilized waterproof canvas
contaminated cotton, scrap cable and CI / DRA tarpaulin sheet for sun drying the soil inside
empty drums) generated by the pipeline noti ied and fenced area. BPCL facilitated
segment was 3,443 kgs. Total non–hazardous farmer in obtaining NOC from Gram Panchayat
waste (paper waste, kitchen waste) generated for drying the soil inside noti ied and fenced
and disposed was 245 kgs. The packaging area. The soil was bio-remediated using oil
material for LPG, which is cylinders (domestic zapper technology and sun dried till oil
and commercial) are reclaimed as 100% as per contents in the soil came within prescribed
LPG Cylinder Distribution Policy, however no limits and report was submitted to MPCB area
packaging material is reclaimed for the other of ice, Nasik for closure of the soil remediation
products. activity.
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Sustainable Development Report 2017-18.
Biodiversity Management
BPCL has initiated the identi ication of of informative note on biodiversity. On the
protected areas and potential areas of high World Environment Day, BPCL conducts tree
biodiversity value near all its industrial units plantation drives throughout various of ices
in India. It conducts Environmental Impact and locations. As on 31st March 2018, BPCL
Assessment (EIA) for all new projects to has planted more than 1,88,000 trees. BPCL
identify the impact of operations on lora and has contributed towards a better
fauna. It has also initiated the process of environment, by sequestering approx. 2,879
sensitising employees on the importance of tons of carbon dioxide and releasing approx.
biodiversity at various locations with the help 7,674 tons of oxygen annually.
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Bharat Petroleum Corporation Limited
The details of the trees planted is mentioned below:
Trees at BPCL
1,88,818
1,56,002
1,13,667
1,01,999
51,978
46,194
19,603 23173
12,928 7,809 7,230
BPCL continues to make efforts to increase the average percentage of Green Cover area.BPCL under its
CSR initiatives organises plantation drives.
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Sustainable Development Report 2017-18.
Operations of
BPCL
Operations of BPCL
Over the past several years growth in in crude volumes has been only 3%, higher
developing economies has contributed crude prices are the reason for an increased
immensely to boost the global demand for oil import bill. The Indian crude basket was at
and other commodities. The price of oil has around USD 56 per barrel during FY 2017-18,
witnessed signi icant volatility; OPEC made 19% higher than the USD 47 (approximate)
conscious efforts to control supplies in the per barrel during the previous year. A 4%
earlier parts of the year to curtail free fall of oil appreciation in the Indian rupee vis-à-vis the
prices resulting in oil prices stabilisation. US dollar has aided in containing the import
However, increasing geopolitical risks, bill for 220 crude MMT imported during FY
especially in Venezuela, Iran, Libya and Nigeria 2017-18. Indigenous crude oil production
has aggravated by the inventories declining to during FY 2017-18 stood at 35.7 MMT,
5-year averages, oil prices started increasing marginally lower than the 36 MMT of lastyear.
rapidly over a very short period of time. While While the contribution from onshore ields
the recent intervention by OPEC and non- has been declining over the past several years,
OPEC suppliers to enhance oil, output is contribution from off-shore ields has also
expected to yield the desired impact of started declining in the past two years, causing
stabilising prices, much will depend on the an overall decline in the share of indigenous
outcome of US sanctions on Iran that will take crude in the crude requirements of the
effect by November 2018 and the impact of country.
increasing demand for oil and oil products that
continues to witness robust growth.
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Sustainable Development Report 2017-18.
BPCL is committed to managing health and In addition, Process Safety Events are also
safety risks and demonstrate continual increasingly reported by leading process
improvement is its safety performance. BPCL companies in their sustainability reports. This
has developed a Corporate Safety Technical Standard is expected to assist BPCL
Management System (CSMS) which de ines in meeting stakeholder's sustainability
requirements for managing Occupation reporting requirements. This Technical
Health and Safety (OHS) risks across its Standard is intended to provide guidance to all
o p e ra t i o n s to A s L ow a s Re a s o n a b ly BUs and operating locations on collection,
Practicable (ALARP) level. reporting and measurement of process safety
Monitoring and Safety Performance events (commonly referred as PSEs) to detect
Measurement of Corporate Safety early leads in detecting key process safety
Management System requires BUs to establish failures, which may otherwise lead to major
Process Safety Events identi ication and process safety incidents due to unplanned
Measurement System in accordance to releases. During the reporting period no
A m e r i c a n Pe t r o l e u m I n s t i t u t e ( A P I ) signi icant process safety event has taken
Recommended Practice (RP) 754 Standard. place.
Mumbai Re inery
Investor Suppliers
An investor funds the Company's operation Suppliers are the key component to ensure
thus receiving part ownership therefore the in constant availability of product and services.
luence in decision making is very high. BPCL To ensure sustainable operations and
works in the best interest of their Investors as responsible growth, BPCL collaborates with
the Investors are their key stakeholders. BPCL its suppliers. Maintaining a strong and healthy
maintains constant with their Investors relationship with suppliers encourages
through various meets, conferences and other greater ef iciency and lower turnaround time.
indirect touch points such as website. During BPCL fosters long term mutually bene icial
FY 2017-18, 26 complaints received from relationships with suppliers through a series
investors through SEBI and NSE which were of different engagements throughout the year.
attended to and resolved on a priority basis. Some of the engagement initiatives are
mentioned.
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Bharat Petroleum Corporation Limited
Annual ‘Premier Meetings to ensure
Periodic meetings
Vendor’ workshops for smooth functioning of
with small
material and equipment the process and
vendor groups
suppliers to eliminate bottle necks
Relationship building
Make formal and
with National Oil
informal channels to
Companies
address grievances
of different countries
of the suppliers
& Oil Traders
BPCL follows the mandates from the Public procurement from MSEs owned by SC/ST
Procurement Policy Order, 2012 to have 20% entrepreneurs. Apart from crude, signi icant
of the total annual purchases of products procurement for BPCL is done locally from
produced and services rendered by MSEs. Out India. The proportion of indigenous and
of 20% target of annual procurement from imported crude is presented in the Annual
MSEs, a sub-target of 20% (i.e. 4% of total Report page 9 and 115.
procurement) shall be earmarked for
113
Sustainable Development Report 2017-18.
FY 2015-16 FY 2016-17 FY 2017-18
Sr. Figures Figures Figures
Particulars
No in Crores in Crores in Crores
Total Annual Procurement Value
1. 5,434.09 4,919.61 7,071.94
(only Non-Hydrocarbon)
Total value of Procurement
2. from MSEs (including MSE 1,253.30 1,613.88 1,916.87
owned by SC/ST entrepreneurs)
Phase
Phase Phase
Phase Measure Supply Chain
To select suppliers and Learn, Evaluate and
Creating Meaningful Performance
making them agree to Improve
expectations
targets
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Bharat Petroleum Corporation Limited
Operational Overview
Hydrocarbons produced
Gas Suppliers from C.P.O C.P.O
from indigenious and
imported sources (Re ineries) (MArketing)
imported sources
Re ineries
Pipeline
Gas Industrial L.P.G storage Lubes Bending Retail Depots Aviation service
installations & commercial & botting & storage & installation station
Marketing Network
Dealers & distributors
Industrial and
Retail customers Airline customers
commercial customers
Supplier Assessment
BPCL maintains consistent efforts to ensure These suppliers encompass contract staff
that all suppliers adhere to the applicable supplying agencies and suppliers of products,
national and international standards. BPCL is materials and equipment. The robust e-
in constant touch with large number of tendering system on-boards all the vendors
suppliers. and suppliers.
Constant
Suppliers-Self Quality check
declaration
Integrity pact
signed as part of
on-boarding
process
BPCL has a high regard for ethical conduct. BPCL and includes conditions on environment
Thus, every supplier is to sign an integrity pact protection, child labour, timely payment of
before empanelment. The integrity pact dues and good working Conditions. All
contains the terms and conditions and Business Units and location heads are aware
monitoring mechanisms of working with about the working conditions and ethics that
are articulated to the Company.
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Sustainable Development Report 2017-18.
Dealers and Distributers
Dealers and distributers play a vital role as The process right from dealer selection and
they are the interface with customers directly. eligibility to training and product delivery is
They provide customers with a wide range of robust and has been developed in
products and services before and after the collaboration with other oil marketing
sale. BPCL ensures quality customer companies.
treatment through its dealers.
Customers
BPCL aims to provide value to their customers It is a technology driven initiative for
by giving them superior quality of product providing a single window to address the
with uninterrupted supply. Customer concerns of its customers across all BUs and
satisfaction, loyalty and retention are the geographies. It is used to used to gather
prime objectives at BPCL. BPCL is very queries, suggestions and grievances. It is an
sensitive towards grievances raised across all integrated platform for customer interactions
categories and stakeholders. All customer across all channels such as email, website,
complaints and grievances are addressed by a social media, vigilance, National Consumer
separate department within each BU. The Helpline as well as walkins.
Nodal of icers for grievance redressal have CCS has registered its highest ever 0.9 million
been designated right from the corporate (with 38% CAGR) interactions during FY
of ice to the State and Territory of ices and 2017-18. It has now evolved into a robust
their details are available in the Citizen's platform and certainly the most preferred
Charter. BPCL also has in place an interactive choice of customers, resulting in substantial
toll-free number on our centralized Customer improvement in the Customer Satisfaction
Care System (CCS) called 'Smart-Line'. Index.
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Bharat Petroleum Corporation Limited
Customer Provisions
BPCL's initiatives are driven by commitment BPCL has not undertaken any structured
and desire to enhance customer experience. survey during the year 2017-18, but it does
As stakeholder expectations are constantly take customer feedback to identify customer
changing, BPCL continuously strives to meet satisfaction trends. In FY 2017-18, BPCL
its expectations. Currently, BPCL with received 91,675 customer feedbacks, of which
initiatives such as Smart Fleet, Petro Card, In & 64,296 were satis ied customers.
Out stores and Ghar initiative are trying to Subsequently, the other customers were
m e e t evo lv i n g c u s to m e r n e e d s m o re approached, and the pending issues were
ef iciently. resolved to their satisfaction.
Customer Safety
BPCL believes in the motto 'Pure for Sure' and services adhere to ASCI voluntary standards
s t r ive s to d e l ive r q u a l i t y p ro d u c t to on marketing and communications. BPCL
consumers. In FY 2017-18, BPCL did not have ensures that its product do not pose
any incidents of non-compliance with unintended harm to the environment and to
regulations and voluntary codes concerning persons involved during its production,
product and service information and labelling transportation, consumption or disposal. The
or concerning the health and safety impacts of products are in compliance with the necessary
products and services during their life cycle. national and international standards and
Also, there were no monitory ines imposed BPCL provides customers with the necessary
due to non-compliance. All marketing information about the products and their safe
communication relating to the products and usage as mandated by regulatory bodies.
117
Sustainable Development Report 2017-18.
Product and Application Development
R&D
Original
Equipment Technical
Manufacturers Services
(OEM)
Quality
Assurance
The major thrust areas of R&D center are These developments help BPCL to reduce
process improvement and the development of environmental footprints while improving the
products that are resource effective. Some of Company's pro itability while move with a
the products with enhanced environmental steady pace with the changing scenario. R&D
performance resulting in improvement of the has contributed signi icantly to the business
safety aspect thereby, are mentioned. volume and pro itability through
Product Research and Development development of new grades and alternate
formulations. This has helped in increasing the
The advancement of the unprecedented
product portfolio and reducing the input cost.
developments and disruptive innovations in
All products undergo safety testing as per the
the energy sector demonstrate that the
requirements to assess health and safety
current scenario of the sector is dynamic .The
impacts. In line with this prelude, the
most imperative way of endurance is by
Corporate R&D Centre at Greater Noida, Uttar
keeping operations, processes, products and
Pradesh and Product & Application
services refreshed .Innovation is a technique
Development Centre at Sewree, Mumbai are
to keep up with the pace of the changing continuously striving for value creation
world. through research activities.
There is an emergence of technologies like
electrical vehicles in the transport sector,
biofuels, solar and wind power, which can The research work is broadly divided into
potentially change the course of business. four categories, as per focus research
Nevertheless, there are burgeoning areas:
opportunities for value added petroleum · Technical support to Strategic Business Units
products and petrochemicals. The Research (SBUs).
and Development Centres of BPCL proactively · Development of energy ef icient technologies
engage in development of innovative products, for fuel and chemical production.
process technologies, cleaner fuels and fuel · New product and additive development.
additives. · Alternative fuels and energy.
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Bharat Petroleum Corporation Limited
These units are the backbone for the Lubes • Environmental-friendly, multi-purpose
Business Unit and provide competitive soluble metal working luid designed for a
advantage to Business operations through multitude of machining operations on metals
continuous innovation in the areas of which are being widely used in Automobile
lubricants, new product development, value and Aerospace applications respectively. This
added services to customers and major OEM would help us in generating new business.
tie-ups. • Synthetic transmission luid enables smooth
Under the above-mentioned core categories, shifting of gears and provides better overall
the speci ic areas in which R&D is been carried protection. The synthetic transmission luid
out by BPCL is on developing the following sustains its viscosity over a wide range of
grades/products: operating temperatures ensure in a better
• High Performance Engine Oil compatible lubrication of manual transmission.
with Ethanol blended petrol (up to E85) for 4 • Water resistant grease for industrial
Stroke 2 Wheelers . application provides effective protection for
• Synthetic Engine Oil for high performance bearings and other moving parts in industries
passenger cars. where moisture ingress affects lubrication
• High performance Hydraulic Oil. longevity and corrosion resistance, thereby
• Cutting Oil for new generation materials. reducing overall grease consumption.
• Fully synthetic transmission luid for • Alternate formulation for existing grades
passenger cars. would provide operational lexibility, besides
• Water resistant grease for industrial reducing the input cost of respective grades.
applications.
• Alternate formulations for existing products. The plan of action is on developing high
performance engine oil for high powered
The bene its derived out of the Research racing bikes, heavy duty diesel engine oil for
and Development: ultra-low emission BS VI engines, bio
• High Performance Engine Oil for 4 Stroke 2 degradable cutting oil, ire resistant hydraulic
wheelers would be suitable for ethanol luid for coal sector, universal tractor
blended petrol (up to E85) as it enhances the transmission luid for farm tractors, long life
engine and engine oil life, provides support to wheel bearing grease for heavy commercial
the Government initiative of ethanol blending vehicles and alternate formulations for
in petrol and helps us to generate new existing products.
business.
• Synthetic Engine Oil for high performance
passenger cars would offer better low at low
temperatures and excellent engine protection
at high temperatures, hence a trouble free and
smooth driving experience for end customers
and helps us to generate new business.
• High performance energy ef icient Hydraulic
Oil would enable manufacturing facilities
using hydraulic systems to operate at
maximum ef iciency, increase production
output and reduce fuel consumption. This
would help us in generating new business. Startup Leap
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Sustainable Development Report 2017-18.
Particulars ( Rs. In Crores)
Expenditure 2017-18
Capital Expenditure 35.81.
Revenue/Recurring Expenditure 47.38
Total 83.19
Landmark Initiatives:
• The tremendous efforts of the Technical • An informative laboratory HSSE manual was
Services Department got BPCL's grades compiled by the Quality Assurance (QA)
proven in core sector industries and also a Department in consultation with HSSE
customized oil was developed for steel mills. department. Extensive support for BS IV to BS
• 12 programs for the staff and channel VI fuel (MS & HSD) conversion in the National
partners were conducted by MAK Center of Capital Region (NCR) area was provided to roll
Excellence and MAK Tech Know League out BS VI fuel within the stipulated time frame
covering all lubes staff was carried out for the of 31st March 2018.
irst time. • The OEM Team has obtained approval from a
leading automotive company for automotive
gear oil and engine oils.
120
Bharat Petroleum Corporation Limited
PROJECT
121
Sustainable Development Report 2017-18.
Annexures
Annexures
REFINERIES
Oil/Lubricant KL 667.5
Hydrochloric Acid Tonnes 486.3
FCCU Catalyst Tonnes 545.6
Caustic Lye (Sodium Hydroxide) Tonnes 1,217.3
Hydrogen Peroxide Tonnes 1,704.6
123
Sustainable Development Report 2017-18.
RETAIL
Type of Material UoM Quantity
Additives - Speed KL 132.1
Additives - Hi Speed Tonnes 2
Additives - Speed 97 Tonnes 60.5
Blue Dye Tonnes 22.8
Grease Tonnes 2
Oil/Lubricant KL 15.1
LUBRICANTS
Type of Material UoM Quantity
Oil/Lubricant KL 24,023
Base Oil Tonnes 46,543.9
Additives (Barrels) Tonnes 2,758.5
Dye Tonnes 2.6
SKO (For Cleaning) Tonnes 4.6
124
Bharat Petroleum Corporation Limited
AVIATION
Type of Material UoM Quantity
Oil/Lubricant KL 0.4465
Any other (Liquid) KL 0.79801
Any other (Solid) Tonnes 0.064
Foam procured for ire ighting KL 50.00
DCP Powder procured for ire ighting Tonnes 3.818
BPCL does not use any recycled input except Ethanol (Bio-ethanol)are non-
materials to manufacture the organization's renewable. Due to the nature of business,
primary products and services. All materials products sold by BPCL can't be reclaimed.
The methodology of calculation of GHG emissions from BPCL operating locations are aligned
with the following standard de initions:
125
Sustainable Development Report 2017-18.
5. GHG Emissions (Scope 3): The Air travel • The emission factor used for Air Travel is
emissions are calculatedbasis the total 0.1599
distance travelled by the employees for • The emission factor used for Crude and LNG
Business related activities (domestic and import by VLCC/ULCC/VLGC and Other
international). The calculation of emissions smaller capacity Carriers is 0.00000359 and
due to the Crude and LNG import is done by 0.0000288 respectively
considering the quantity of each of them 6. Ozone-Depleting Substances (ODS): The
transported by either VLCC/ULCC/VLGC emission factors used for calculating the ODS
carriers and smaller capacity carriers. For the are taken from GHG protocol.
purpose of this report FY 2017-18 is the Base 7. 1BTU=1.055x10^-6GJ
year.
Hazardous waste transported out of your premises during the reporting period Tonnes 13,577.1
126
Bharat Petroleum Corporation Limited
Re ineries
Non-Hazardous Waste UoM Quantity
Ferrous Scrap (Non-Hazardous) Tonnes 10,889.4
Tyres (Non-Hazardous) Tonnes 5.81
Non-Ferrous Scrap (Non-Hazardous) Number 212.9
Retail
Hazardous Waste UoM Quantity
Batteries (Hazardous) Number 309
Sludge (Hazardous) Tonnes 1,206.2
Paper Gasket (Hazardous) Tonnes 16.2
Retail
Non-Hazardous Waste UoM Quantity
Ferrous Scrap (Non-Hazardous) Tonnes 34.5
Tyres (Non-Hazardous) Number 12
Non-Ferrous Scrap (Non-Hazardous) Tonnes 1.4
127
Sustainable Development Report 2017-18.
Seal Wire (Non-Hazardous) Tonnes 2.5
Plastic Seals (Non-Hazardous) Tonnes 3.2
Lubricants
Hazardous Waste UoM Quantity
Used Cotton Waste (Hazardous) Number 6.9
Used Additive Barrels (Hazardous) Tonnes 342.9
Ows Sludge (Hazardous) Tonnes 34
Lubricants
Non-Hazardous Waste UoM Quantity
Tyres (Non-Hazardous) Number 32
Saw Dust (Non-Hazardous) Tonnes 8
Kitchen Waste (Non-Hazardous) Tonnes 5.2
LPG
Hazardous Waste UoM Quantity
Batteries (Hazardous) Number 241
Paint Residue/Sludge (Hazardous) Tonnes 21.9
Scrap Rubber O Ring (Hazardous) Tonnes 373.8
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Bharat Petroleum Corporation Limited
Used Hand Gloves (Hazardous) Number 59,318.5
Used Filters (Hazardous) Number 30,797
Oil & Grease Barrels (Hazardous) Number 462.9
LPG
Non-Hazardous Waste UoM Quantity
Ferrous Scrap (Non-Hazardous): Tonnes 1,160.6
Tyres (Non-Hazardous): Number 18,434
Non-Ferrous Scrap (Non-Hazardous): Tonnes 75.2
AVIATION
Hazardous Waste UoM Quantity
Drums/Tins(Hazardous) Kgs 4
AVIATION
Non-Hazardous Waste UoM Quantity
Ferrous Scrap (Non-Hazardous) Kgs 371.6
Tyres (Non-Hazardous) Number 107
Non-Ferrous Scrap (Non-Hazardous) Kgs 40
129
Sustainable Development Report 2017-18.
Drums/Tins (Non-Hazardous) Kgs 7
Filters (Non-Hazardous) Number 948
Solid Waste (Disposed Through Municipal Lorry) (Non-Hazardous) Kgs 606
Safety Committee: 29 25
130
Bharat Petroleum Corporation Limited
Annexure 5- Stakeholder Engagement and Materiality
131
Sustainable Development Report 2017-18.
II. Security Policy of BPCL
Commitment - the Security Manual – at all Re ineries and
We have the highest concern forthe Security of Marketing establishments.
human lives and Corporation' sproperties, · Keep ourselves in readiness to meet all
goods and services. We also commit ourselves emergency situations by appropriate action
to be alert and responsible to prevent theft, plans.
misuse, loss, damage, pilferage and sabotage · Actively participate in implementation of
of any nature which will hamper our business security measures to combat external threats.
interests / continuity.
· Reinforce the security set up by providing
Policy - Commensurate with this commitment,
regular trainings and up gradation of facilities.
we shall:
· Monitor effectiveness of security measures
· Adhere to security rules, regulations and
by surprise checks, mock drills and take
laws of the land.
corrective actions.
· Provide effective and proactive measures for
Physical and Internal Security as explained in
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Bharat Petroleum Corporation Limited
Glossary
AFS Aviation Fuelling Station IREP Integrated Re inery Expansion
API American Petroleum Institute Project
ASSOCHAM Associate Chambers of Commerce ISAE International Standard on
and Industry Assurance Engagements
ATF Aviation Turbine Fuel IDP Individual Development Plan
BMCG Bharat Metal Cutting Gas IREP Integrated Re inery Expansion
BPCL Bharat Petroleum Corporation Limited project
BPLC Bharat Petroleum Learning Centre I&C Industrial & Commercial
BPRL Bharat Petro Resources Ltd JV Joint Venture
BPRL Bharat Renewable Energy Limited KL Kilo Litre
BRR Business Responsibility Report KR Kochi Re inery
CAL Computer Assisted Learning LED Light Emitting Diode
CDU Crude Distillation Unit LPG Lique ied Petroleum Gas
CFC Chloro luorocarbon MMBTU Million British Thermal Unit
CII Confederation of Indian Industry MMTPA Million Metric Tonnes per Annum
C&MD Chairman and Managing Director MoP&NG Ministry of Petroleum and
CSR Corporate Social Responsibility Natural Gas
CREP Corporate Responsibility for MOU Memorandum of Understanding
Environment Protection MR Mumbai Re inery
COCO Company Owned Company Operated MS Motor Spirit
CPO Central Procurement Of ices MSE Micro and Small Enterprises
CUBE Customer Understanding for MTO Mineral Turpentine Oil
Business Excellence MRT Manglia Receipt Terminal
DPE Department of Public Enterprises NGO Non-Governmental Organisation
DEP Directorate of Public Enterprises NRL Numaligarh Re inery Limited
E&P Exploration & Planning NSC National Safety Council
ED Executive Director NVG National Voluntary Guidelines
ERP Enterprise Resource Planning ODS Ozone Depleting Substance
ESE Employee Satisfaction Enhancement PPM Parts Per Million
ETP Ef luent Treatment Plant PRISM Performance Related Incentive
EEL Energy Ef icient Lighting Scheme for Management Staff
FICCI Federation of Indian Chambers of PMPR Preparedness, Mitigation,
Commerce and Industry Planning and Restoration
FO Fuel Oil PMUY Pradhan Mantri Ujjwala Yojana
GHG Green House Gas PSU Public Sector Undertaking
GJ GigaJoule QPR Quarterly Performance Reviews
GRI Global Reporting Initiative R&D Research and Development
HSD High Speed Diesel RLNG Regasi ied Lique ied
HSE Health, Safety and Environment Natural Gas
HSSE Health, Safety, Security and Environment RWH Rain Water Harvesting
IOCL Indian Oil Corporation Limited SBU Strategic Business Unit
IRQS Indian Register Quality System STP Sewage Treatment Plant
IPIECA International Petroleum Industry SEBI Securities and Exchange
Environmental Conservation Association Board of India
SME Small and Medium Enterprises
SRU Sulfur Recovery Unit
STP Sewage Treatment Plant
SECC Social Economic Caste Census
TRPs Talent Review Panels
UV Ultra Violet
VTS Vehicle Tracking System
133
Sustainable Development Report 2017-18.
Acknowledgement
We hope that the readers found the Sustainable Development Report informative!
It gives us immense pleasure to present to you our 12th Annual Sustainable Development Report. The
Corporate HSSE team at BPCL has put in their efforts in the development of the report. The report has
been developed in accordance with the triple bottom line approach of BPCL. We extend our gratitude
towards our internal and external stakeholders for their valuable time and constant support extended
throughout the preparation of the report.
We are one of the largest Oil and Natural Gas companies of the nation and are thoroughly aware of the
criticality of operating in an extensively resource consuming sector. It is most crucial for us to
incorporate sustainability as a foundation for all our operations. We focus on enhancing energy and
operational ef iciency, improving processes and technologies, reducing resource consumption to
minimise our impact on the environment and creating a healthy, safe and secure workplace. We work
towards creating value for our stakeholders, improve on our disclosures and engage with the
stakeholders.
We would be glad to receive feedbacks on our report.
134
Bharat Petroleum Corporation Limited
GRI Content Index
135
Sustainable Development Report 2017-18.
GRI Standards Disclosure Page No. Omissions
this disclosure cannot
102-18 Governance structure 22-24
be omitted
this disclosure cannot
102-19 Delegating authority 24
be omitted
102-20 Executive-level this disclosure cannot
responsibility for economic, 24 be omitted
environmental, and social topics
102-21 Consulting stakeholders
this disclosure cannot
on economic, environmental, 42-50 be omitted
and social topics
102-22 Composition of the highest this disclosure cannot
governance body and its committees 22-24
be omitted
102-23 Chair of the highest this disclosure cannot
governance body 23
be omitted
102-24 Nominating and selecting this disclosure cannot
the highest governance body 22
be omitted
this disclosure cannot
102-25 Con licts of interest 22
be omitted
102-26 Role of highest governance
body in setting purpose, values, and this disclosure cannot
22, 24
strategy be omitted
102-27 Collective knowledge of this disclosure cannot
highest governance body 22
be omitted
GRI 102: General 102-28 Evaluating the highest this disclosure cannot
Disclosures 2016 governance body's performance 22
be omitted
102-29 Identifying and managing
economic, environmental, and this disclosure cannot
24, 42, 45
social impacts be omitted
136
Bharat Petroleum Corporation Limited
GRI Standards Disclosure Page No. Omissions
102-38 Annual total compensation this disclosure cannot
65
ratio be omitted
GRI 102: General
Disclosures 2016 102-39 Percentage increase in this disclosure cannot
annual total compensation ratio 65
be omitted
Stakeholder Engagement
137
Sustainable Development Report 2017-18.
GRI Standards Disclosure Page No. Omissions
Material Topics
138
Bharat Petroleum Corporation Limited
GRI Standards Disclosure Page No. Omissions
206-1 Legal actions for anti-
GRI 205-
competitive behavior, anti-trust, 26
Anti-corruption 2016
and monopoly practices
GRI 301- Materials
GRI 103: Management
103-1,2,3 Management Approach 47-50
Approach 2016
301-1 Materials used by weight
123-125
or volume
GRI 301- Materials 301-2 Recycled input materials
2016 125
used
301-3 Reclaimed products and
their packaging materials 107
139
Sustainable Development Report 2017-18.
GRI Standards Disclosure Page No. Omissions
305-6 Emissions of ozone-depleting
substances (ODS) 101 ,126
140
Bharat Petroleum Corporation Limited
GRI Standards Disclosure Page No. Omissions
141
Sustainable Development Report 2017-18.
GRI Standards Disclosure Page No. Omissions
413-2 Operations with signi icant
GRI 413- Local actual and potential negative 81
Communaties 2016 impacts on local communities
142
Bharat Petroleum Corporation Limited
Linkage with Sustainable Development Goals
Goals Sustainable Development Goals Chapter Names
• Approach towards
Safety
Ensure healthy lives and promote
• Connecting with
well-being for all at all ages
Communities – CSR
Programmes
• Connecting with
Ensure availability and sustainable
Communities – CSR
management of water and sanitation for all
Programmes
• Minimising
Ensure access to affordable, reliable,
Environmental Impact
sustainable and modern energy for all
• Operations of BPCL
• Harmonising with
Promote sustained, inclusive and Workforce
sustainable economic growth, full • Connecting with
and productive employment and Communities – CSR
decent work for all Programmes
• Operations of BPCL
143
Sustainable Development Report 2017-18.
Goals Sustainable Development Goals Chapter Names
• Harmonising with
Workforce
Reduce inequality wthin and among • Connecting with
countries Communities – CSR
Programmes
• Connecting with
Make cities and human settlements
Communities – CSR
inclusive, safe, resilient and sustainable
Programmes
• Stakeholder Engagement
and Materiality
Ensure sustainable consumption and
• Minimising
production patterns
Environmental Impact
• Operations of BPCL
144
Bharat Petroleum Corporation Limited
CHAIRMAN’S OFFICE
Bharat bhavan,
4 and 6 Currimbhoy Road,
Ballard Estate,
Mumbai 400001, India