BPCL_SDR_2009_10

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					B U I L D I N G A S U S TA I N A B L E F U T U R E




SUSTAINABLE DEVELOPMENT REPORT 2009-2010
2




    CONTENTS




    Building a sustainable future    3   Conserving water                32
    C&MD’s Message                   4   Nurturing people, fostering
                                         talent                          36
    Sustainable development:
    Agenda at board level            6   Ensuring safety and security,
                                         promoting health                40
    Company profile                  8
                                         Developing sustainable
    ‘DreamPlan’ for
                                         communities                     44
    a sustainable future            12
                                         Assurance statement             48
    Responsible governance          18
                                         Content Index                   50
    Performing for a purpose        20
                                         Glossary                        52
    Consuming resources
    responsibly                     24   Epilogue                        54
    Managing energy efficiently     28   Share your feedback             55
                                                                                                                                                                                                                                                                                                                                                        3




                                                                                                                                                           BUILDING A SUSTAINABLE FUTURE


                                                                                                                                                                                                                                    2
                                                                                                                                                           PERFORMANCE HIGHLIGHTS
Building a sustainable future                                                                                                                              Criteria                                                                     Units                     2009-10
Energy is a lifeline of growth – economic or human. Being a responsible energy company, we                                                                                                                                                               What we targeted What we achieved
are committed to meet energy demands while ensuring minimal impact on the environment                                                                      Gross Margin                               %                                                               2.42             18.4
and protecting the interests of our stakeholders. We have carefully expanded our product                                                                   Gross Sales                         ` Billion                                                          1,241.50         1,315.00
portfolio to include cleaner fuels and made headway in non-conventional energy sources. Our                                                                Customer Satisfaction
efforts are towards nurturing our employees and business associates by providing them
                                                                                                                                                             Reseller (MS/HSD)                        %                                                                                    96                                     98.5
opportunities to achieve their potential. Our focus is on building sustainable communities
through appropriate interventions.                                                                                                                           LPG                                      %                                                                                    93                                     98.1
                                                                                                                                                             Aviation                                 %                                                                                    94                                       99
Report Scope
                                                                                                                                                             Direct Consumers                         %                                                                                    94                                     98.2
‘Building a sustainable future’ is our fourth sustainable development report covering triple                                                               Refinery Crude throughput
bottom line performance for FY 2009-10. The current report progressively builds on our
                                                                                                                                                             Mumbai Refinery               Million Tons                                                                                11.7                                     12.52
previous reports Energizing Lives (2006-07), Energy Sustenance (2007-08) and Responsible
Development (2008-09). Previously known as Corporate Sustainability Report, this year                                                                        Kochi Refinery                Million Tons                                                                                7.55                                      7.89
(2009-10) we have changed it to Sustainable Development Report to create a global outlook and                                                              Quality Assurance
distinct identity. Building a sustainable future has been prepared in accordance with A+ application                                                       Benchmarking
level of the Global Reporting Initiative (GRI G3) guidelines 2006. The report also refers to the                                                             Mumbai Refinery                          %                                                                                    89                                     92.3
API/IPIECA Oil and Gas Industry Guidance on Voluntary Sustainability Reporting 2005.                                                                         Kochi Refinery                           %                                                                                    89                                      100
The scope of the report includes seven Strategic Business Units (SBUs) in India over which the                                                             Specific Energy Consumption
Company has significant operational control. The seven SBUs are Refineries, Retail, Lubes, LPG,                                                              Mumbai Refinery           MBTU/BBL/NRGF                                                                                       74                                   71.95
Industrial & Commercial Aviation and Gas1 . Our subsidiary company Numaligarh Refinery                                                                       Kochi Refinery            MBTU/BBL/NRGF                                                                                       91                                    89.7
Limited (NRL) is also included in the scope of the report. The retail outlets are excluded from
                                                                                                                                                           Average Refining cost/tonne
the scope of the report.
                                                                                                                                                             Mumbai Refinery                           `                                                                                508                                        460
As we mature in the reporting process, certain data provided for previous years may not be                                                                   Kochi Refinery                            `                                                                                620                                        591
comparable with the previously published data. This is due to the enhancement and progress
                                                                                                                                                             Average Marketing cost/tonne              `                                                                                833                                        788
made in reporting process. Wherever necessary, explanations are provided to guide the readers
on the interpretation of data and information. We strive to make further progress in the                                                                   No.of Reportable accidents
reporting journey by expanding our scope and enhancing our reporting systems. This year, we                                                                per million manhours worked
have engaged KPMG to present the gap analysis along with suggestions on sustainable                                                                        (MR+KR+Marketing)                Frequency                                                                                  0.43                                       0.17
development management strategy for future and provide professional services for developing                                                                HSSE training to employees
and designing this Sustainable Development Report. Ernst & Young Pvt. Ltd has provided                                                                     (Mumbai Refinery)                  Mandays                                                                                1,575                                      1,787
external assurance on this report.                                                                                                                         We achieved a market share of 28.70 % for Motor Spirit and 24.17 % for High Speed Diesel.
                                                                                                                                                           During the year we conducted 171 leadership development programs for management employees.
                                                                                                                                                           360-degree assessments were conducted covering 119 role holders.
1                                                                                                                                                          2
    As the Gas SBU was formed in the year under review, the performance data does not include Gas SBU. We would be including the same in future reports.       The targets set are based on the MoU signed between MoPNG and BPCL for the year 2009-10, of which select few have been presented here and may differ from previously reported targets.
4




    CHAIRMAN &
    MANAGING DIRECTOR’S MESSAGE


                                                                      Sustainable Development Report
                                                                                                                  ion
                                                                                                               vision of what sustainable development
                                                                                                                 eans t
                                                                                                               means to BPCL:


                                                                                                                                  Our focus is to remain
                                                                                                                  financially strong, which means
                                                                                                                  responsible growth and profitability. To

                                                      Building a Sustainable Future                               beyond compliance, leverage from
                                                                                                                  global best practices, and act local. To

                                                                                                                  long-term sustainability on all aspects, at

                                                                                                                  envelope further, to innovate and
                   This year also witnessed the formalization of BPCL’s ‘DreamPlan’ – an articulation of our      capture opportunities we create for
                   aspirations and where we want to reach by 2015, co-created by our team members at all          ourselves. We will roll out our
                   levels across the organisation. There are six strategic elements of the plan –                 ‘DreamPlan
                                                                                                                  achieve 50 million tons by 2015.
                                                                                                                                                 We have
                                                                                                                  an important responsibility towards the
                                                                                                                  natural environment. We recognize the
                                                                                                                  challenges faced by our business, be it
                      in the face of greater competition                                                          in terms of depleting crude resources,
                                                                                                                  climate change, or our impact on
                                                                                                                  communities. We are aware that
                                                                                                                  providing energy is a great contribution
                      found profitable
                                                                                                                                                                                         5




to economic growth and are cognizant   t         adeq
                                            with adequate security infrastructure             lives across the country, through           increasingly environment and social-friendly
of the fact that related fallouts need        d manpower.
                                            and m                                             education programs, infrastructure,         products.
responsible addressal. Fostering                                                              health care, employability development
                                                                                                                                          This report is here to share our vision and
innovation is our approach to tackle                                                          programs, etc.
                                                    Our businesses being fast                                                             achievements. We look forward to your
these challenges. We produced cleaner
                                            growing and labor intensive, human                                                            views/suggestions, which will help us better
fuels compliant with Euro III and IV
                                            talent is definitely a key asset. In                                                          our performance, thereby creating more
guidelines and made headway in
                                            addition, our employees dedicate a             We have been presented with several            value for our stakeholders.
creating a renewable energy portfolio.
                                            significant part of their days working         accolades in environment and eocial
We know other milestones on this
                                            with us, and our responsibility is to offer    responsibility and we are proud of our
journey are still ahead of us, and we
                                            them a challenging, rewarding and              progress. We aspire to embed sustainable
acknowledge our responsibilities to
                                            exciting working environment and               development into all our management
continuously work towards minimizing
                                            suited career opportunities. Our               processes. We will launch next year an
our environmental foot-print.
                                            responsibility is also to attract and retain   ambitious program aiming at formulating a
                           Our              talent, at all levels, as our strategy         clearer roadmap in the area of sustainable     Ashok Sinha
responsibility is to ensure safety of our   requires such talent to be there with us       development. We intend to ensure full
employees, contracted manpower, and         in the long-run.                               cohesiveness and a close alignment of our
assets. I regret the loss of three lives                                                   sustainable development initiatives with our
due to work related accidents this year                                                    corporate strategy and vision.
                                                            Our operations touch
across our operations. We recognize
                                            the lives of thousands of people from          The broader definition of sustainable
safety is a never ending journey, and
                                            the neighbouring communities across            development, “Meeting today’s generation’
we will sustain year after year our
                                            our operations, often in remote places         needs without comprising those of our
efforts to make BPCL a safe workplace.
                                            where basic amenities may be absent,           children”, is indeed a challenge at hand for
On workplace security front, we have
                                            and education levels may be low. We            many industry sectors, and ours in
developed an in-house “security
                                            have dedicated teams and budgets               particular. At BPCL we consider these
scorecard” to assess the emergency          towards Social Responsibility, and our         challenges as opportunities to grow our
preparedness. Based on the scorecard        programs have touched thousands of             competitive edge, while bringing to market
assessment, each location is equipped
6




    SUSTAINABLE DEVELOPMENT:
    AGENDA AT BOARD LEVEL


    Q 1: What does sustainability mean
    to you?
    Director (Marketing): Sustainable
    development is about Business itself.
    Especially for Hydro Carbon sector, it is all
    about securing energy supplies and making
    cleaner fuels available at affordable rates. We
    at BPCL always endeavored to secure energy
    supplies and our foray into exploration and
    the gas business, is testimony of our efforts.
    Director (Refineries): Sustainable
    development to me is to reduce dependence
    on other oil companies and meet market
    demand. It is all about increasing refining
    capacities and ensure we run our refineries in
    a safe manner and ensure zero loss of life and
    property.
    Director (Finance): Sustainable development
    is foundation of proactive organization and for
    us it is all about longevity. Our approach is to
    go beyond compliance and focus on meeting          We need to continue and find the treasure      stakeholders?                                    Director (Refineries): Key stakeholders
    customer expectations and to achieve               within. Our employees make all the                                                              according to me include Employees, contract
    employee satisfaction. Governance is the                                                          Director (Marketing): Key stakeholders for
                                                       difference by putting the vision of building                                                    labor and customers. At Refineries, most
    foundation for sustainability.                                                                    us include – Government, Employees and JV
                                                       sustainable future into effect through WIN                                                      important requirement is to ensure high
                                                                                                      partners. We are well positioned to address
    Director (Human Resources): For us,                (We Innovate Now) –with the objective to
                                                                                                      their concerns and fulfill their expectations.
                                                                                                                                                       standards in safety, security and workplace
    sustainable development is everyday                introspect and innovate for better tomorrow.                                                    environment. We already have management
    business. Last two years have been difficult                                                      We meet up with these stakeholders at            systems deployed at refineries but we need
                                                       Q 2: Who are your key stakeholders?
    for our sector but that doesn’t mean we bring                                                     regular intervals to map their                   to integrate these systems to avoid multiple
                                                       How well are you positioned to
    economy to a halt and look for external help.                                                     concerns/expectations.                           audits, documentation and develop a robust
                                                       address varied expectations of your
                                                                                                                                                                                                         7




monitoring plan.                                   Q 3: You have been reporting on                   Director (Human Resources): I feel we have        preparedness and response plans.
                                                   sustainable development performance               just started this journey and hit a couple of
Director (Finance): As I explained earlier, the                                                                                                        Director (Finance): Expectation of our
                                                   for last four years. What changes have            milestones. But there is need to further
expectation of stakeholders is varied and we                                                                                                           stakeholders is multi-fold; Government
                                                   you observed? Are your efforts                    percolate this agenda at shop floor. These
are working towards developing a robust                                                                                                                expects energy security, customers want
                                                   delivering results?                               three years gave us robust data management
framework to engage with key stakeholders                                                                                                              operational stability and quality, shareholders
                                                                                                     systems to capture sustainable development
including employees, customers and                 Director (Marketing): One of the key                                                                want long-term returns and so on. We want
                                                                                                     performance.
shareholders. In the past decade we have           challenges we had recognized last year was                                                          to play the role of a responsible corporate,
already revisited our vision twice and this year   awareness among employees on                      Q 4: What do you see the role of BPCL             admired by its stakeholders. We need to get
we are rolling out our ‘DreamPlan’. One of         sustainability. Reporting exercise has            in the society to be?                             involved in social programs way beyond
the initiatives worth mentioning here is the IT    addressed this concern to a large extent,                                                           donations and play a larger role in society
                                                                                                     Director (Marketing): I strongly believe that
interface. We deployed IT systems in retail        however, we need to further scale up our                                                            addressing concerns on water availability,
                                                                                                     the business flourishes well in a healthy
business, dealer network and installed             communication efforts. Last year our                                                                primary education and basic healthcare.
                                                                                                     society. Our products touch lives of millions
automated sensors resulting in reduced             Lubricants business initiated Carbon footprint
                                                                                                     of people everyday and it is in our interest to   Director (Human Resources): We want to
inventory levels and ensured quality and           project which was received very well among
                                                                                                     expand our customer base to help them with        set an example of being a Responsible
quantity at customer end. We need to scale         employees. We plan to estimate carbon
                                                                                                     cleaner options. We are preparing a five year     Corporate. We have taken step in this
up these initiatives and sensitize our             footprint of entire BPCL.
                                                                                                     strategy called ‘DreamPlan’ and key feature       direction by entering into Gas business,
stakeholders on our sustainable development
                                                   Director (Refineries): While we have done a       here is to enhance refining capacity to 50        developing Euro III and Euro IV compliance
approach.
                                                   fairly good job, we need to bring in the risk     million tons by 2015, ensuring energy             products, constructing green campus in
Director (Human Resources): For me most            element in the report and our in house            security.                                         Noida and Kolkata, converting wastes into
                                                   communications, around sustainable                                                                  resources such as coke and using ash in brick
important stakeholders include Employees.                                                            Director (Refineries): Due to the very
                                                   development. We need to make this                                                                   manufacturing.
With the launch of WIN we fostered the                                                               nature of our business, most stakeholders
                                                   document, easy to read and directly hitting
culture of innovation and reinforced the                                                             want us to demonstrate high standards in          Director (Marketing) –
                                                   the nail, and avoid encyclopedic style.
concept of doing it right. We carried out                                                            health, safety and environmental                  Mr. S. RADHAKRISHNAN
change management exercise and introduced          Director (Finance): Reporting on non              performance, which is the most important
                                                                                                                                                       Director (Refineries) –
four new elements – developed culture              financial performance has been received well      element of running a refinery. We need to
                                                                                                                                                       Mr. R. K. SINGH
footprint; introduced ownership concept;           among the senior management, however, we          expand it to our contractors and ensure that
introduced performance related                     need to sensitize various levels within BPCL      they follow the same practices. For us            Director (Finance) –
remuneration and rolled out redeployment           and encourage participation. This will further    dealing with emergency situation is very          Mr. S. K. JOSHI
and re-skilling programmes.                        help in ingraining sustainability into everyday   important and better still is the understanding   Director (Human Resources) –
                                                   activity within BPCL.                             at community level on our emergency               Mr. S. MOHAN
8




                                COMPANY
                                PROFILE
    “I strongly believe that the business flourishes
    well in a healthy society. Our products touch
    lives of millions of people everyday and it is in
    our interest to expand our customer base to
    help them with cleaner options”
                      Mr. S. Radhakrishnan,
                            Director (Marketing)
                                                                                                                                                                                                       9


Organizational Highli
   anizational Highlights3                                                  PRODUCT SALES
                  ing
Refineries (including NRL)                         3           Nos                                                                       Sales Volume            Market Share5
Installations and depots
                     ots
                      t                          141
                                                  41           N
                                                               Nos                                                                        (’000 MT)                  (%)
LPG bottling plants                                49
                                                    9          Nos
                                                               N            Naphtha
                                                                            Na                                                                    897                28.9
Aviation filling stations                          30
                                                    0          No
                                                               Nos          LPG (Bulk & packed)                                                 3,236                25.9
Retail outlets                                  8,692
                                                  692
                                                8,692          Nos
                                                               N                rs i
                                                                                  spi
                                                                            Motor spirit                                                        3,575                28.4
LPG distributors                               2 187
                                               2,187           Nos          Special boiling point spirit
                                                                            S                                                                      39                34.9
Crude throughput                                23.03
                                                23 03
                                                23 03           MT
                                                               MMT
                                                               MMT          Benzene                                                                 60               84.3
Market sales                                    27.70          MMT          Toluene                                                                24                97.9
Gross sales                                    1,315           ` billion          opyle
                                                                            Polypropylene feedstock                                                71                 NA
Total assets                                  361.41           ` billion    Regasified LNG                                                        710                 NA
Market participation                           22.38           %            Aviation Turbine Fuel                                                 925                20.3
Fortune 500 rank (2009)                          289                        Superior Kerosene Oil                                               1,646                17.2
                                                                            High Speed Diesel                                                  13,298                24.2
Shareholding pattern4                                                       Light Diesel Oil                                                       59                12.8
                                                                            Mineral Turpentine Oil                                                107                56.5
                                                                            Furnace Oil                                                         1,450                18.7
                                                                            Low Sulphur Heavy Stock                                               447                 18
                                                                            Bitumen                                                               627                14.4
                                                                            Lubricants                                                            231                18.7
                                                                            Others                                                                234                 NA


                                                                                SUBSIDIARY COMPANIES

                                                                                Bharat PetroResources Limited
                                                                                Numaligarh Refinery Limited


         Government                                                55.79%
                                                                                JOINT VENTURES
         Life Insurance Corporation of India                       10.57%
         BPCL Trust for Investment Shares                          9.33%
                                                                                Bharat Renewable Energy Limited                                             Bharat Star Services Private Limited
         Unit Trust of India                                       1.20%
                                                                                Central UP Gas Limited                                                      Indraprastha Gas Limited
         Foreign Institutional Investors                           7.97%
         Other Financial Institutions                              7.74%        Maharashtra Natural Gas Limited                                             Matrix Bharat Marine Servies Pte Limited
         Private Corporate Bodies                                  4.37%        Petronet CCK Limited                                                         Petronet India Limited
         Others                                                    2.94%        Petronet LNG Limited                                                         Sabarmati Gas Limited
         Non Resident Indians                                      0.09%



3                                                                           5
As on 31 March 2010 for Bharat Petroleum Corporation Limited                 Market share is based on sales volumes of Indian Public Sector Oil Companies
4
As on 31 March 2010 for Bharat Petroleum Corporation Limited
10




            COMPANY PROFILE



     Operational overview                                                                       Organizational overview


        GAS SUPPLIES FROM                 HYDROCARBONS PROCURED FROM                                                                         C & MD
       IMPORTED SOURCES                 INDIGENOUS AND IMPORTED SOURCES
                                                                                                     Director          Director            Director                 Director             CVO
                                                                                                     Refineries     Human Resources         Marketing                 Finance           Vigilance


                                                           Refineries                                 ED                   ED                 ED                          ED                            Company
                                                                                                Mumbai Refinery            HRD               Retail                Corporate Treasury                   Secretary

                                                                                                                                              ED
                                                                                                      ED                   ED                LPG                         GM                                ED
                                                                                                 Kochi Refinery            HRS                                      Mgmt Accounts                     Internal Audit
                       Industrial    L.P.G.           Libes          Retail
                                                                                    Aviation
          Gas                       storage         blending        depots                                                                    ED
                          and                                                       service                                                  Lubes
      installations   commercial      and              and            and                                                                                               Integrated                         ED
                                                                                    station           ED                  DGM                                          Information
                                    bottling        storage       installation                 Corporate Planning   Quality control cell                                                             Corp Affairs &
                                                                                                                                              ED                     systems & ERP                      Stategy
                                                                                                                                             I&C

                                                                                                      ED                                      ED                         GM                                ED
                                                                                                     R&D                                    Aviation                     Legal                      Supply Chain Opt.
                                    Marketing network
                                    Dealers and distributors                                                                                  ED
                                                                                                      ED                                                                                                  GM
                                                                                                  Internation                                E&P
                                                                                                    al Trade                                                                                          Cordination

                                                                                                                                              ED
                                                                                                                                              Gas
          Industrial and                                                                                                                                                                                 DGM
                                       Retail customers                 Airline customers                                                                                                                  ESE
       Commercial customers                                                                                                                 HEAD
                                                                                                                                             HSSE

                                                                                                                                             GM
                                                                                                                                           Mktg Corp

                                                                                                                                                        DGM
                                                                                                                                                      PR & Brand
                          BPCL is 6th                    Bharatgas is accredited     Association of Business Communicators                         Mr. S.K. Joshi, Director
among the Top 50 Most Valuable Brands    as Consumer Superbrand by                   of India (ABCI) awards. BPCL won Gold       (Finance) was conferred the Business
according an assessment done by Brand    Superbrands India                           Award for MAK Viral, Silver Award for       Today ‘Best CFO in a PSU’ award for
Finance                                                                              CSR campaign and Bronze for Corporate       exemplary leadership in ensuring
                                                                                     website                                     availability of fuel and cooking gas in the
                         BPCL won the    BPCL won the prestigious PetroFed
                                                                                                                                 country
Reader’s Digest Most Trusted Brand in    ‘Oil&Gas Marketing Company of the                                          BPCL
Gold category                            Year’ award for second year in succession   was awarded Best Overall Safety                           BPCL’s Mumbai Refinery
                                                                                     performance amongst LPG Marketing           won the Ramakrishna Bajaj National
                         BPCL ranked
                                                                                     Organizations and lube Oil Blending         Quality Award 2009, the highest
289th on the coveted Fortune Global                        BPCL was awarded the
                                                                                     Plants by OISD                              recognition in the manufacturing category,
500 companies list for 2009              Star Retailer award and Beyond LPG was
                                                                                                                                 for the third consecutive year.
                                         recognized as Unique Concept in
                                         Marketing by Franchise India Holdings                           BPCL’s Kochi Refinery                               BPCL was
                 BPCL has been ranked
                                                                                     was awarded the Excellence in               awarded with Business Leadership Award
5th in refining & marketing among the                                   BPCL
                                                                                     Environmental Management award by           in CSR category by NDTV Profit
Asian companies on the Platts Top 250    won the Boston Strategies International’s
                                                                                     Kerala State Pollution Control Board
Global Energy Companies 2009 list        2009 Oil, Gas & Energy Industries Award                                                                              BPCL was
                                         for Exemplary leadership in Supply Chain                                  BPCL’s        awarded the prestigious FE EVI (Financial
                                         Synchronization                             Bengaluru LPG Plant was declared the        Express & Emergent Ventures India)
          BPCL stands 305th in the Top
                                                                                     winner of G-Cube Good Green                 Green Business Leader Award for
500 Global Brands list compiled by
                                                                                     Governance Award in the manufacturing       2009-10.
UK-based Brand Finance                   BPCL walked away with four
                                                                                     category among non-processing
                                         communication awards at 49th Annual
                                                                                     industries
12




                                ‘DreamPlan’ FOR A
                                SUSTAINABLE
                                FUTURE
     Looking forward, bolder aspirations and fresh challenges
     await us. We have already completed envisioning
     workshops with Directors, EDs and GMs and we are
     now in the process of involving the next level of the
     organization. To achieve these aspirations, we now need
     to refine the strategy and detail the initiatives. This has
     been christened as Project ‘DreamPlan’
                                         Mr. Ashok Sinha,
                                           C&MD, June 2010
                                                                                                                                                                                                         13


Conceptualized in 2009-10, Project ‘DreamPlan’ is an articulation of our aspirations and where we want to reach by 2015. As a part of this project we want to achieve
the goal of becoming one million barrels per day company, triple our profits, and undertake capital spend in excess of `5,000 billion. There are six elements of the
‘DreamPlan’ as mentioned below:


                                                        Big-capex, game changers                         Protect and grow existing                         Seed options for the future
                                                                                                         leadership position in marketing




     ‘DreamPlan’                                    acceptable manner. Being a public sector          for industry to minimize carbon emissions.      business this year. We have a vision to reach
                                                    enterprise our commitment to sustainable          We are geared for Renewable growth and          5 million tons mark in next five years and
                                                    development rests on our obligation to do         have made headway in wind and solar             scale it to 10 million tons in next ten years.
                                                    the right thing and demonstrate commitment        energy, but our core strength would be fossil   This was the year of consolidation with
                                                    to social responsibility.                         fuels. With the foray into exploration we are   streamlining of operations in Brazil, moving
                                                                                                      geared to be self reliant on energy supplies.   ahead decisively on the Indian and overseas
                                                    This year we further strengthened our
                                                                                                                                                      work programme, and venturing in to the
                                                    materiality framework and encouraged
                                                                                                                                                      unexplored virgin basin of Mozambique. Our
                                                    participation at various levels to suggest        emerging gas market in India, when we
                                                                                                                                                      target customers include industrial consumer
                                                    issues. . The feedback so obtained was            became one of the promoters of Petronet
                                                                                                                                                      and aggregators. We have also made a
                                                    discussed at the board level and finally, the
                                                                                                                                                      humble entry into city gas distribution through
                                                    top five material issues identified were:         greater focus, gas marketing, which was
                                                                                                                                                      joint ventures, covering 4 cities and we plan to
                                                                                                                                                      have 10 more cities included in our portfolio.
                                                                                                      business, was converted in to a separate


                                                                                                      We aim to

                                                    We are aware of the fact that energy
                                                    consumption in our country is expected to            development challenges, including employees, investors, NGOs, suppliers and
For us, sustainable development means - the
impact of the company’s operations on
environment and society. We take care to            cleaner fuel, has been the fastest-growing
ensure our impacts are minimal and we               energy source in recent decades, and this
operate profitability, safely and in an ethically   trend is likely to continue, making it possible
14




     STAKEHOLDER ENGAGEMENT



                                                                                                                                                                                               our employees regarding key decisions of the     Stakeholder Groups          Corporate SBU/
                                                                                                                                                                                                                                                                                      Regional   Facility
                                                                                                                                                                                                                                                                            Level     Level      Level
                                                                                                                                                                                               company including our business strategy. We
                                                                                                                                                                                               intend to engage with our senior                 Shareholders and Lenders
                                                                                                                                                                                               management and union representatives
                                                                                                                                                                                                                                                Government and regulators
                                                                                                                                                                                               across our regions with respect to our five
                                                                                                                                                                                               year business strategy development, Project      Employees
                                                                                                                                                                                               DreamPlan. At SBU and regional level, we
                                                                                                                                                                                               have focused channels of interaction with our    Industry Associations
                                                                                                                                                                                               customers, suppliers and regulatory bodies.
                                                                                                                                                                                                                                                Customers
                                                                                                                                                                                               Our engagement with communities and
                                                                                                                                                                                               NGOs is two fold. The central corporate          Suppliers

                                                                                                                                                                                               social responsibility function partners with     Business & JV Partners
                                                                                                                                                                                               NGOs and communities through company
                                                                                                                                                                                               wide initiatives. The facility levels focus on   Communities
                                                                                                                                                                                               local issues and adopt a suitable engagement
                                                                                                                                                                                                                                                Dealers & Distributors
                                                                                                                                                                                               model benefiting the local communities.
                                                                                                                                                                                                                                                Contractors & Contractual
     Stakeholder engagement at BPCL is viewed                                                     major shareholder, we engage with various                                                    In our endeavor to further enhance our           labour
     as an important element of our business                                                      Ministries and Regulatory bodies at corporate                                                engagement with stakeholders on issues
                                                                                                                                                                                                                                                NGOs
     strategy. We believe in constructive dialogue                                                level on varied issues including but not limiting                                            related to sustainable development, this year
     with various stakeholders making them an                                                     to company performance, product pricing,                                                     we adopted a focused approach in engaging        Academic Institutions
     integral part of our success.                                                                new projects, and industry regulations. We                                                   with select employees on the specific agenda
                                                                                                  interact with all our shareholders at corporate                                              of sustainable development. The constructive     Media
     Over the years, we have adopted a
                                           6                                                      level through various forums like Annual                                                     dialogue process with our stakeholders has
     diversified and customized approach towards
                                                                                                  General Meetings, Investor meets etc.                                                        provided us with key insights on the
     engaging with our stakeholders. Owing to the
                                                                                                  Employee engagement is one of our core                                                       prioritization of material issues which are of
     nature and scale of our operations and also
                                                                                                  strengths, which has helped us achieve                                                       mutual interest to both our stakeholders and
     the diversity of our stakeholders, we make
                                                                                                  business excellence. Various formal and                                                      the Company. The inputs were further
     sure that we engage with each of the
                                                                                                  informal engagement channels are used to                                                     deliberated by the panel consisting of C&MD
     stakeholder groups at different levels in the
                                                                                                  address the concerns of employees while                                                      and Directors to arrive at material issues
     organization. Being a Public Sector Unit (PSU)
                                                                                                  meeting their expectations. We engage with                                                   assuming the
     with the Government of India (GoI) as a



     6
     Refer to our previous sustainability report “Responsible Development” for detailed information on stakeholder engagement for individual stakeholder groups. The report can be accessed through our website www.bharatpetroleum.in
                                                                                                                                                                                                      15




                                                                                                    MATERIAL ISSUES



highest priority.                                interest and concern to stakeholders, thereby      operations and plan to extend the same to       unsafe events occur and ensure appropriate
                                                 assigning priorities to the issues in alignment    our refineries in the next financial year. We   changes in our management systems, culture
We are guided by the principle of materiality
                                                 with the Company’s business strategy. The          are also focussing on developing Clean          and processes that could help prevent such
to identify and prioritize the issues of
                                                 issues assuming the highest material               Development Mechanism (CDM) projects to         incidents in the future. Our goal is to improve
importance or concern to both our
                                                 significance that emerged from this exercise       reduce our CO2 emissions.                       our performance until we have no
stakeholder groups and the Company. The
                                                 were:                                                                                              work-related injuries at our company. We
Board of directors has the overall                                                                  Health & Safety
responsibility to provide the Company with                                                          The safety our employees and the
business strategy and the roadmap for the                                                           neighbouring communities is one of our          leading role in terms of employee
future. Apart from the dynamic business and                                                         highest priorities. There is absolutely no      engagements through active participation and
regulatory scenario, the board also takes in                                                        compromise when it comes to safety and          sharing best practices across businesses and
account the concerns and expectations of                                                            health parameters. We conduct intensive         entities. This year special emphasis was given
various stakeholder groups while formulating     Energy & Climate Change                            internal assessments to understand how          to training programmes with a thrust on
the roadmap for the Company.
                                                                                                                                                    reinforcing safety culture across BPCL.
Though we do not have a formal process of        inter-related parameters that are of prime
identification and prioritization of material    importance for safeguarding the present and
issues on our sustainable development            planning for the future. We have initiated
agenda, the Company uses the inputs from         energy efficiency programs including initiatives
business strategy and roadmap, directives        for knowledge sharing across our operations
from Government and regulatory authorities       to enable replication of similar projects
and various stakeholder inputs to identify the   thereby increasing productivity and lowering
material issues for BPCL. These issues are       energy consumption. With an aim of reducing
discussed at various levels of the Company       dependency on non-renewable energy
including the board.                             sources, we have started harnessing
This year we have used the focused               renewable energy sources. Lower energy
employee sessions to identify and prioritize     consumption will naturally help us to lower
the sustainable development issues of interest   our carbon footprint. We are well aware of
and concern to stakeholders. The insights        the ill-effects of climate change and the
from these sessions were then presented to       contribution of our operations in terms of
the panel consisting of C&MD and Directors.
The panel deliberated on the various issues of   carbon footprint analysis of our lube
16




     MATERIAL ISSUES



     Community Development                              businesses are working to develop tailored          aspirations, we have developed a detailed
                                                        solutions for harnessing renewable energy           book titled ‘Rainwater Harvesting’ on this
     We believe that it is our duty to use the
                                                        resources for their businesses. These               subject. We understand the importance of
     resources made available to us to improve
                                                        solutions include the work done for                 water management and have undertaken
     the quality of life in our communities. Our
                                                        constructing and managing solar and wind            various water management schemes in our
     commitment to the communities we serve is
                                                        installations. Further, we have deployed            neighbouring communities by developing
     demonstrated through a wide range of
                                                        newer or cleaner technologies such as               surface and ground water sources to augment
     programs, activities, donations and grants to
                                                        chemical decontamination techniques, high           the quantity and quality of existing water
     educational, environmental and community
                                                        emissivity ceramic coatings, automatic              supplies.
     organizations. Our social responsibility
                                                        combustion control, gasoline splitter unit,
     programs are built on the premise that our                                                             While the above-mentioned issues remain
                                                        naphtha splitter unit, etc. across our
     financial resources and employees can have a                                                           high on priority, the other issues, which were
                                                        operations and will continue to do so.
     profound and positive impact on the world                                                              identified as material to BPCL, include energy
                                                        Through deployment of cleaner technologies
     around us. We contribute to community                                                                  security, affordable energy, corporate
                                                        we want to move a step further towards
     development through philanthropic activities                                                           governance and compliance, talent attraction
                                                        building a sustainable future, where energy
     and creation of sustainable livelihoods. At the                                                        and retention, and waste management. Our
                                                        scarcity would cease to exist.
     corporate level, we are concentrating our                                                              overall approach in addressing the material
     financial and other resources on four areas of     Water Management                                    issues is guided by our business strategy and
     focus where we believe we can make the                                                                 roadmap. Our future plans and current
                                                        Water is a vital part of energy generation and
     greatest difference in improving quality of life                                                       performance on the identified material issues
                                                        its incessant withdrawal can alter the natural
     of people around our areas of operation:                                                               is detailed in various sections of the report.
                                                        conditions of surface and ground water
     education, health, infrastructure and water.                                                           We also intend to adopt a formal process in
                                                        resources, potentially affecting aquatic life, as
                                                                                                            the near future to identify and prioritize
     New and Clean Technology                           well as other animals and people that use
                                                                                                            material issues, including inputs from our
                                                        water in that ecosystem. Water conservation
     As one of the leading energy companies in                                                              prioritized stakeholders.
                                                        is on our agenda and we have made
     India, we continue to carefully manage our
                                                        concerted efforts to save, re-use and recycle
     limited natural resources and address the
                                                        water. Additionally, we are implementing rain
     environmental and health effects of our
                                                        water harvesting systems across our
     operations. We are currently making
                                                        installations as we progress towards achieving
     investments in upgrading our processes to
                                                        our dream of becoming a water positive
     produce cleaner energy with a view of
                                                        organization. To further propagate our
     diversifying our fuel portfolio. Some of our
17
18




                                          E
                                RESPONSIBLE
                                GOVERNANCE
     Our philosophy on corporate governance
     stems from its belief that timely disclosures,
     transparent accounting policies and a strong
     and independent Board go a long way in
     maximizing corporate value and building a
     sustainable future for the Company.
                                                                                                                                                                                                                                                                            19


The Board has adopted a Code of Conduct7,8                                           to adopt a defined process for managing its                                           investigations with specific recommendations    participants were held with the objective of
for the Directors and management cadre of                                            risks on an ongoing basis. Being a PSU                                                for corrective action and system                enhancing Vigilance Awareness among the
the Company as well; and, there is a system in                                       company, we are under the purview of a                                                improvements. As a part of preventive           employees/vendors. Workshops on
place for affirming compliance to it by the                                          robust mechanism of audits and checks by the                                          vigilance, periodic / surprise inspections of   Dealerships / Distributorships were
Board Members and Senior Management of                                               Comptroller and Auditor General (CAG) of                                              refineries, depots and installations, retail    conducted at all regions covering 139
the Company.                                                                         India. The checks are stringent and happen at                                         outlets and LPG distributorships are carried    participants. As part of preventive vigilance
                                                                                     regular intervals thus ensuring our systems                                           out throughout the year. In addition, a         activities, inspections including surprise
The Board is assisted by expert committees9
                                                                                     are in place. A full time member nominated                                            Whistleblower Policy that contains details      inspections were done at 467 Retail Outlets,
in its supervision of the overall affairs of the
                                                                                     by CAG operates from our premises and is                                              about formal channels of reporting incidents    161 LPG Distributorships and 167 locations
company and to ensure transparent governance.
                                                                                     privy to all board resolutions and other                                              of corruption has been formulated.              including depots and installations.
                                                                                     matters of interest.
                                                                                                                                                                           Headed by a Chief Vigilance Officer (CVO),      BPCL’s commitment towards fair practices
                                                                                     BPCL has an Internal Audit department                                                 the department, based on the investigations     ensures that there are no instances of
                                                                                     consisting of cross functional experts, which                                         carried out, provides advice to the             anti-competitive behavior. Being a significant
                                                                                     supplements the review of key business                                                management to bring about qualitative           player in India’s Oil & Gas sector and earning
                                                                                     processes and controls through regular audits.                                        improvement in the functioning of the           the coveted ‘Navratna’ status from the
                                                                                     Audit reports, significant risk area assessment                                       company. The CVO also acts as a link            Government of India, BPCL has earned its
                  Audit                   Investor                                   and adequacy of internal controls are also                                            between the corporation and the agencies        rightful place in many advisory panels and
                 committee                  Grievance
                                 BPCL        committee                               periodically reviewed by the Audit                                                    such as MoPNG, PMO, CBI, CVC, etc.              industrial decision making bodies like OIDB,
                                Board of
                                Directors                                            Committee through meetings held with                                                                                                  OISD, BIS, IMC, BCCI, ASSOCHAM, FICCI
                                                                                                                                                                           An important step in the ongoing efforts of
                                                                                     Management, Internal Audit and the Statutory                                                                                          and CII.
                                                                                                                                                                           corporate vigilance to enhance transparency
                                                                                     Auditors. We also abide by the Integrity pact
                       Remuneration committee
                                                                                                                                                                           and increase efficiency is, “Online Vigilance   Leveraging technology for business
                                                                                     program10 in relation to our tendering
                                                                                                                                                                           Clearance”, which was inaugurated during the    excellence, BPCL launched the Access
                                                                                     process through a MoU with Transparency
                                                                                                                                                                           year. This application accelerates process      Control component of SAP GRC
Managing risks through internal                                                      International.
                                                                                                                                                                           requests for vigilance clearance for            (Governance, Risk and Compliance) for the
control systems                                                                      There were no cases of non-compliance by                                              resignations, progressions, retirements etc.    LPG SBU in April’09. This was a pilot project
BPCL has a system of internal controls to                                            the Company and no penalties / strictures                                             This year more than 114 training                and the solution would be rolled out across
ensure optimum utilization and protection of                                         were enforced on the Company by the Stock                                             workshops/seminars involving 1800               BPCL in a phased manner.
resources, IT security, accurate reporting of                                        Exchange / Securities & Exchange Board of
financial transactions and compliance with                                           India (SEBI) or any other statutory authority
applicable laws and regulations. For this                                            on any matter related to the functioning of
purpose, a clearly defined organization                                              the Company during the year.
structure, authority limits and internal                                             Ethical business practices
guidelines, rules for all operating units and
service entities have been formulated by the                                         Our corporate values guide us in maintaining
Company.                                                                             high ethical standards. Vigilance is a critical
                                                                                     element of the Company and is in line with
We have established an effective and efficient                                       the philosophy of “Vigilance for Corporate
risk management framework at BPCL. The                                               Excellence”. The Corporate Vigilance
Risk Management Charter and underlined                                               department at BPCL acts effectively on
policies are intended to enable the Company                                          complaints by conducting detailed



7BPCL’s Corporate Vision and Values can be found in detail at the corporate website www.bharatpetroleum.in
8BPCL’s Code of conduct has been enlisted in detail in the corporate website www.bharatpetroleum.in
9Constitution of the Board, information on Directors, committees and its responsibilities are mentioned in BPCL’s Annual report at http://bpcl.in/EnergisingBusiness/In_Financial.aspx?id=1
10Refer to our previous sustainability report “Responsible Development” for information on ‘Integrity Pact Program,.. The report can be accessed through our website www.bharatpetroleum.in
                                                                                                                                                                                                                                                                              23




            80                                                    certified. This year we have invested a total of                           Environmental expenditure – marketing SBUs
                                             67.44    69.41
            70                                                    ` 382 million on environmental management
                                                                                                                                                         25                                            22.71
            60                                                    at our refineries. The environmental
                                                                  management expenditure for our marketing                                               20                                                                                             5.42
            50
                                                                  SBUs significantly increased to ` 22.71 million                                                                                                             1.66
billion `




            40                                                                                                                                           15




                                                                                                                                           million `
                                                                  from ` 10.89 million last year. This was                                                                              10.89
            30                                                                                                                                                         9.37                                                                                    6.07
                                                                  primarily due to the renewed focus on                                                  10
            20
                                                                  environmental management systems across                                                                                                                            2.53
                                                                                                                                                          5
            10     2.65     4.06
                                                                  our marketing SBUs and energy saving                                                                                                                                                                 7.03
             0                                                                                                                                            0
                  Capex Projects           Refinery Operations
                                                                  initiatives contributing to cleaner                                                              2007 - 2008       2008 - 2009    2009 - 2010                                            million `
                                                                  environment.
                 Local goods &          Total goods &                                                                                                  Installation of           Waste treatment   Operations and             External services and     Other environment
                 supplies procurement   supplies procurement      Environmental expenditure – refineries                                               cleaner technologies      and disposal      maintenance of pollution   certifications for        related coast
                                                                                                                                                                                                   control equipments         enviromental management
                                                                             500           449
                                                                                                             415         382
Dignity of labor is recognized in every aspect                               400
of our operations and we ensure that none of
                                                                             300
                                                                 million `




our operational procedures interfere with the
human rights of any individual. All our                                      200

significant investments, including contracts                                 100
with suppliers incorporate the aspects of
                                                                                0
human rights as stipulated by various national                                         2007 - 2008      2008 - 2009   2009 - 2010
and state laws.                                                   Environmental expenditure – refineries
As a conscious corporate citizen we                               (2009-10)                5.63 21.4

recognize our responsibility towards                                         Waste treatment                                     119.81
                                                                             and disposal
environment. We are exploring opportunities                                  Operation and
in alternate energy and making resolute                                      maintenance of pollution
                                                                             control equipment
efforts to seize every opportunity. We have                                  External services and
made efforts to minimize the impact of our                                   certifications for
                                                                             environmental management
operations by investing in clean technology
                                                                             Other environment
and sound environmental management                                           related costs
                                                                                                     235.1
practices while seeking new means to further                                                                                   million `
reduce it. All our refineries are ISO 14001
20




                               PERFORMING
                               FOR A PURPOSE
     “Robust business is the foundation for a
     proactive organization and its primary focus
     for longevity. While growth should always be
     the driver, one should not lose focus on
     important issues such as climate change and
     social responsibility”
                               Mr. S. K. Joshi
                              Director (Finance)
                                                                                                                                                                                                                                                         21


Industry overview                                                                                the previous year. India’s domestic               Economic Value Generated & Distributed           Winning in tough times..
                                                                                                 production of finished products is
The year 2009-10 started on a difficult note                                                                                                       2009-10                                          Last year we had reported on the initiation of
                                                                                                 considerably higher than the domestic
for India, which is not isolated from the
                                                                                                 demand. The domestic crude oil processing                                                          ‘Project We Innovate Now (WIN)’ to tackle the
impact of the global economic slowdown that                                                                                                        Economic Value
                                                                                                 in 2009-10 stood at 186.6 MMT as                                                                   economic slow down and make BPCL future
began in industrialized nations in 2007. While                                                                                                     Generated                       1,403.30
                                                                                                 compared to 157.1 MMT in the previous                                                              ready by improving our cash position in
there has been no significant improvement in                                                                                                       Revenues                         1,403.30
                                                                                                 year. With additional capacities expected to                                                       immediate term, putting in place competitive
the global economic scenario, Indian
                                                                                                 come on stream in the coming days, India will                                                      cost structures and building a ‘cost and value
economy showed signs of recovery in the                                                                                                            Economic Value
fiscal year 2009-10. The Indian economy
                                                                                                 continue to remain long on refining capacity                                                       DNA’ across the organization. Its aim was to
                                                                                                                                                   Distributed                      1,372.83
grew by 8.6 % (year-on-year) with industrial                                                     Performing for a purpose                                                                           develop a culture of P&L and cash flow
                                                                                                                                                   Operating Costs                   1,199.57       conviction and accountability across SBUs and
output growth pegged at 17.6 %. Gross
                                                                                                 Our performance is driven by the purpose of       Employee benefits & wages            22.78
Domestic Product (GDP) achieved a growth                                                                                                                                                            percolate the accountability to all levels. Six
                                                                                                 creating an enduring stakeholder value. We
rate of 7.4 % in 2009-10, despite a decline of
                                                                                                 envisage creating a sustainable future for the
                                                                                                                                                   Payments to providers of capital     16.73       ‘deep-dive’ initiatives were taken up as a part of
0.2 percent in agricultural output owing to
                                                                                                 Company. While the business operating             Payments to Governments             133.69       the project. Supply Chain Optimization through
sub-normal monsoon. However, the                                                                                                                                                                    rigorous retro analysis aims at maximizing the
                                                                                                 conditions were influenced by global
emergence of high double-digit food inflation                                                                                                      Economic Value Retained             30.47        Net Corporate Realisation by improving
                                                                                                 economic scenario, our performance in
in the second half of the year continues to be
                                                                                                 2009-10 was characterized by our corporate        All figures are in billion `                     adherence level on the SCO plan to around
an area of concern for economic growth. The
                                                                                                 values and operational prudence. In 2009-10                                                        95-97% on a sustainable basis. Purchasing
Indian rupee appreciated during the year                                                                                                           in 2009-10. This year, we have also made
                                                                                                 we were able achieve crude throughput of                                                           Excellence targeted at leveraging the market
which had an impact on the export sector as                                                                                                        significant investments at our Mumbai and
                                                                                                 23.03 MMT, an increase of 3.7 % over                                                               conditions to procure at best possible rates
well as on major imports like crude oil.                                                                                                           Kochi refineries to upgrade our process
                                                                                                 previous year. Like wise, our market sales                                                         leading to formation of Central Procurement
Even though there was a sharp fall in the                                                        increased by 2.22 percent to 28.06 MMT.           equipments to meet the Bharat Stage IV fuel
                                                                                                                                                   standards. A total of ` 2.54 billion have been   Organization (CPO) for marketing and refineries
demand for oil as compared to the previous                                                       Due to volatile crude oil prices and difficult
                                                                                                 market conditions, our revenues witnessed a       invested in the year towards this endeavor.      SBUs. Capital Productivity focuses on improving
year on account of the decline in demand in
Europe and North America, strong demand in                                                       decrease of 4.25 % over the previous year.                                                         ROI of two capex intensive areas - Retail outlets
                                                                                                                                                   We are committed to the well being of our
countries like India and China ensured that                                                      The total revenues during the year were `                                                          and LPG cylinders. Lowering overheads aims at
                                                                                                                                                   employees, suppliers, distributors, customers,
the overall fall was contained. As in the case of                                                1,403.30 billion. A total economic value of `                                                      brining in greater efficiencies in overhead
                                                                                                                                                   communities and other stakeholders. We
crude oil, the average prices of key petroleum                                                   1,372.83 billion was distributed while            provide various benefits to our employees        spending. Reduction of transportation cost
products in 2009-10 were lower than the                                                          retaining ` 30.47 billion. We invest rightly in   including gratuity schemes, provident fund       maximizes value for the marketing business.
prices in 2008-09. Oil & gas industry in India                                                   our processes, people and planet to continue      schemes, medical insurance coverage,             Minimization of money blocked in inventory,
continued its high dependence on imports of                                                      to deliver the performance for the purpose        support for employee higher education,           receivables and other elements of working
petroleum and petroleum products. As                                                             we believe in.                                    scholarships for employee children, housing      capital helps unlock the capital. All the above
compared to the imports of 128.16 MT in
                                                                                                 We have made significant investments in our       and vehicle loans at low interest rates and      initiatives under Project WIN are expected to
2008-09, the quantum of crude oil imported                                                                                                         other long term benefits. We carry out
                                                                                                 processes to achieve higher efficiency leading                                                     deliver cash release of around Rs. 29.00 billion
in 2009-10 stood at 159.26 MMT. With 15                                                                                                            periodical actuarial valuations of employee
                                                                                                 to greater product volumes. We are                                                                 resulting in a Profit before tax (PBT)
new oil and gas discoveries during the year,                                                                                                       benefit funds to ensure that employee benefit
                                                                                                 continually investing in new technologies to                                                       improvement of around ` 11.50 billion over a
domestic availability is expected to improve.                                                                                                      liabilities are met. In the year under review,
                11                                                                               modernize our operations while striving to                                                         period of 2-3 years. During 2009-10, almost
Consumption of petroleum products in the                                                                                                           we have contributed ` 22.78 billion towards
                                                                                                 reduce the impact on the environment. We
country in 2009-10 was of the order of 138.2                                                                                                       employee wages and benefits.                     70% of the PBT target and 50% of the cash
                                                                                                 invested a total of ` 344.66 billion towards
MMT representing an increase of 3.44% over
                                                                                                 expansion and modernization of our capacity                                                        target set for 2009-10 have been accrued.



11
 Based on provisional figures released by the Petroleum Planning & Analysis Cell in the MoPNG.
24




                                CONSUMING
                                RESOURCES
                                RESPONSIBLY
     “Sustainable development to me is to reduce
     dependence on other oil companies and
     meet market demand. It is all about
     increasing refining capacities and ensure we
     run our refineries in a safe manner and
     ensure zero loss of life and property”
                              Mr. R. K. Singh
                             Director (Refineries)
22




            PERFORMING FOR A PURPOSE



                                                                             12
             Employee benefits and wages                                                                   around our CSR thrust areas of Education,                           Expanding Financial Inclusion
             25
                                                                                                           Environment Conservation, Community                                 One of our important customer segments is the Small Distance Commercial Vehicle (SDCV)
                                                                               22.78
                                                                                                           Infrastructure, Water Management and                                community who account for nearly 40% of the retail diesel trade. These customers are small time
                                                         20.08                                             Community Health. Our community
             20                                                                                                                                                                single vehicle owners, drivers and helpers. In July this year we formally launched the “Financial Inclusion
                                                                                                           investments across refineries this year was                         program for SDCV customers” in association with program partners Corporation Bank and UTI AMC.
             15                   13.81                                                                    ` 137.32 million.                                                   The aim of the program was to enable our dealers to build a strong relationship with the target
     billion `




                                                                                                                                                                               customers who have no bank accounts but have a propensity to save. This endeavor would help them
             10                                                                                            Community Investments - Refineries
                                                                                                                                                                               move away from the clutches of small time money lenders who often charge safe keeping charges from
                                                                                                                                     million `                                 the customers with very high interest rates of borrowing. We intend to fulfill our motto of energizing
                  5
                                                                                                                0      30         60          90     120   150                 lives through this initiative which provides financial inclusion for one of our important stakeholders.
                                                                                                                2007 - 2008
                  0
                               2007 - 2008           2008 - 2009           2009 - 2010
                                                                                                                                                                               In the program, BPCL’s select Retail Outlet Dealers will work as Business Correspondent of Corporation
                                                                                                                                              71.6                             Bank to facilitate branchless banking to the trucking customers through biometric smart card based
                 We contribute to development of our supply                                                                                                                    technology. The customers will be offered basic savings account involving small cash deposits and
                 chain business associates by supporting and                                                                                                                   withdrawals, recurring deposit, micro credit, micro pension from UTI, micro insurance from LIC and
                                                                                                                 2008 - 2009
                 providing them with business and technical                                                                                                                    health insurance from United India Insurance. Micro credit to eligible customers will be given at normal
                 assistance. Local procurement and hiring                                                                                             104.72                   banking rates as against rates between 30-40% charged by Micro Finance Institutions.
                 remains one of the important ways in which
                 BPCL contributes to the local economic
                                                                                                                 2009 - 2010
                 development. Though not guided by a formal
                 policy, we always prefer to procure goods                                                                                                     137.32
                 and supplies from local economy, where in
                 our case local is defined as India, and where
                                                                                                                                                               Community
                 an equivalent is not available in the local
                                                                                                                                                               Investments –
                 market, we procure it from international
                                                                                                                                              7.48             Refineries
                 sources.                                                                                                                                                13
                                                                                                                    15.28       14.91                          (2009-10)
                 Our approach towards growth is a holistic                                                                                                     million `

                 one, wherein community development is an                                                        Community Infrastructure

                 integral component. We invest in community                                                      Community Health
                 development through numerous initiatives                                                        Education
                 across the locations we operate in, focused                                                     Others
                                                                                                                                                       99.65



             12
                 The values for 2007-08 and 2008-09 have been restated to include the employee car / scooter mileage reimbursement benefits
             13
                 Others include community trainings and awareness, agri-allied support, promotion of sports and culture
                                                                                                                                                                                                                                                                                                                                                                     25

                                                                                                                                                                     17
Consuming resources respons
   suming           responsibly                                                                        year. At our marketing locations , we                                                                 Total material re-processed at refineries                                                            used to regain oil from the sludge at the
                                                                                                                                    18
                                                                                                       consumed 520,611.98 tons of materials                                                                                                                                                                      bottom of the crude tank. The remaining soil
                 ments lect our f
While our investments reflect o efforts
                    nts ec                                                                                                                                                                                  200000
                                                                                                       and 94.68 kilolitres of BMCG additive, along                                                                                                                                                               that has low oil content is bio-remediated
                            b future, we a
towards building a sustainable f t          are
                                                                                                       with 15,215.46 tons of packaging material.                                                                                                                                                                 with the help of a specialized
                        esponsibility
                                    y
also cognizant of our responsibility towards                                                                                                                                                                                                       154,430.00
                                                                                                       LPG cylinders are reused multiple times
                                                                                                       LP
                                                                                                       LP                                                                                                   150000
                                                                                                                                                                                                                                                                                                                  micro-organisms based technology from The
                                  s with
consuming the earth’s resources w h
                                                                                                       which reduces the requirement of new                                                                                                                                                                       Energy Research Institute (TERI). In this way,
                                  t       f
discretion. Aware of the fact that one of our                                                                                                                                                                            112,790.00
                                                                                                       cylinders. Due to increased demand and
                                                                                                              rs
                                                                                                            ders.                                                                                                                                                                                                 we ensure that we recover oil from sludge
                             cts d to
                              t
largest environmental impacts is due t our                                                                                                                                                                  100000




                                                                                                                                                                                                     Tons
                                                                                                       replacement of damaged cylinders,                                                                                                                                     78,763.60
                                                                                                                                                                                                                                                                                                                  before disposal. In 2009-10, 1,147.12 tons of
                              renewable
heavy dependence on non-renewable
                                                                                                       2,714,343 new cylinders were used for LPG
                                                                                                       2                                                                                                                                                                                                          oil was recovered from sludge. More than
                             uce our material
                               ce
resources, we strive to reduce ou materia e
                                         teriia                                                                                                                                                                                                                                                                            3
                                                                                                       during the reporting period.
                                                                                                                  rep                                                                                       50000                                                                                                 7000 m of sludge, generated mostly from
footprint through improved operational
                                                                                                                                                                                                                                                                                                                  crude oil tank bottom cleaning, was treated
efficiency and endeavor to use additives and                                                           In 2009-10, we reprocessed 78,763.6 tons
                                                                                                                  0, w
                                                                                                                  0
                                                                                                                                                                                                                                     1,157.70                   537.20                   1,147.12                 successfully at the refineries using efficient
chemicals that have minimal harmful impact                                                             of slop at our refineries which decreased
                                                                                                              p                                                                                                  0                                                                                                                               19
                                                                                                                                                                                                                              2007 - 2008              2008 - 2009               2009 - 2010                      techniques including BLABO technology
on the environment. In 2009-10, our                                                                    from 155,430 tons last year. The decrease is
                                                                                                                                                                                                                                                                                                                  recovering valuable oil before residual
refineries processed 23.03 MMT of crude oil,                                                           attributed to reduction in slop generated                                                                        Total slop re-processed            Total oil recovered from sludge
                                                                                                                                                                                                                                                                                                                  treatment.
our single-most significant raw material                                                               which was achieved through tighter
throughout our operations, out of which 14.1                                                           operational control. To reduce wastages, we                                                           Building capabilities to reduce waste                                                                Similar to oily sludge, spent catalysts from our
MMT was imported with the remaining crude                                                              have striven to minimize leakages and have                                                            generation                                                                                           refineries are either recycled by the original
processed being indigenous.                                                                            installed vapor recovery systems. Floating                                                                                                                                                                 catalyst suppliers or disposed off to secured
                                                                                                       roof tanks with secondary seals and still well                                                        We try to reduce waste generation from our                                                           landfill sites in accordance with the central
In each of our SBUs, we have applied                                                                                                                                                                         operations by identifying opportunities to
                                                                                                       sleeve systems have enabled us to significantly                                                                                                                                                            and state statutes. At our Mumbai refinery,
continuous innovation to produce superior                                                                                                                                                                    reuse or recycle them in a feasible manner.
                                                                                                       curtail our losses of material.                                                                                                                                                                            we also minimize the disposal of our
products at lower costs. Our Tondiarpet                                                                                                                                                                      We take special precautions to ensure that                                                           non-hazardous waste by converting canteen
installation pioneered the implementation of a                                                         Total material processed at refineries                                                                our hazardous waste is disposed off in a safe                                                        food waste to cooking gas through a bio gas
blending facility for in-site production of                                                                                                                                                                  and efficient manner.                                                                                plant. We have put in focussed efforts to
Speed-97. This facility was created with a                                                             10000
                                                                                                                                                                        8,420.10
                                                                                                                                                                                                             A comprehensive system for hazardous                                                                 reduce our waste footprint and are glad to
minimal budget and time and it eliminates the                                                                      7,910.13                   8,089.61                                                                                                                                                                                                        20
                                                                                                       8000                                                                                                  waste management has been implemented at                                                             report that there have been no significant oil
huge transportation and logistic expenditure
                                                                                                                                                                                                             BPCL refineries. A mechanized oil recovery                                                           spills in the year.
involved in producing Speed 97. Additionally,
                                                                                                       6000                                                                                                  system for oil recovery from oily sludge is
BPCL commercially launched a cost effective
                                                                                                Tons




and superior corrosion inhibitor developed by                                                          4000                                                                                                  Waste                                                                    Total amount of waste from Refineries (tons)
                                                                                                                                                                                                                                                                                                                                                          21

Research & Development for Ethanol                                                                                                                                                                                                                                                  2007-08               2008-09               2009-10
Blended Motor Spirit (EBMS). While the cost                                                            2000
                                                                                                                                                                                                             Spent catalyst                                                          203.39                 465.6                568.64
of the product is 1/8th the cost of hitherto                                                                                    180.00                    172.80                      158.22
                                                                                                          0                                                                                                  Spent Catalyst (Reuse)                                                   70.08                   0                     0
imported chemical and has been extensively                                                                              2007 - 2008              2008 - 2009                2009 - 2010
evaluated, it meets NACE and ASTM                                                                                                                                                                            Sludge                                                                  256.23                244.32                222.53
                                                                                                           Associated prossess materials                Semi-manufactured materials
standards as well.                                                                                                                                                                                           Waste Bituminous Oil                                                       0                  359.65                   0
We consumed 8,420.10 tons of significant                                                                                                                                                                     Waste Transformer Oil                                                      6                   24.97                   5
                    14
associated materials and 158.22 tons of                                                                                                                                                                      Spent resin                                                                0                     30                  13.37
                          15
semi-manufactured goods at our refineries                                                                                                                                                                    FCC Catalyst fines                                                        86                     89                    78
during the year. Our refineries also used                                                                                                                                                                    Lube Additive                                                              0                      0                  13.34
            16
6407.6 tons packaging material during the                                                                                                                                                                    Spent molecular sieves                                                    10                      0                   56.1
14
  Materials contributing to more than 5% of the total annual material consumption (excluding crude) are considered as significant associated materials
15
  Associated materials at the refineries include Hydrochloric acid, caustic soda, fresh catalysts, rock salt, diethyl amine, anti foulant, demulsifiers, re-gasified liquified natural gas, corrosion inhibitors and others in small quantities. Semi-manufactured goods at the refineries include cetante improver.
16
  Information for only Mumbai and Kochi refineries
17
  Materials included for reporting at Marketing SBUs are purchased base oils and packaging material (Lubes SBU) , HSD and MS additives, blue dye, ethanol, oil and grease (Retail SBU)..
18
  This year we have expanded the scope for material consumption for our marketing SBUs by including the material consumption from LPG SBU and oil & grease consumption across marketing SBUs.
19
  Non-man entry tank cleaning and oil recovery system
20
   Significant spills are defined as spills greater than 159 litres in a single occurrence of an incident.
21
   Includes the waste generated by Mumbai Refinery, Kochi Refinery, and Numaligarh Refinery
26




     CONSUMING RESOURCES
     RESPONSIBLY

                                                                           3
     In addition to the above mentioned wastes, 8,132 used barrels,1,800 m of solid waste, 44.47
     MT of bio sludge, and 100 MT of tank bottom sludge have been generated at our refineries
     during the year.
     Our marketing locations generated approximately 579.4 tons and 920.11 kilolitres of hazardous
     waste by weight and volume respectively during 2009-10. This waste includes used oil, oily
     sludge, oil filters and cotton waste contaminated with oil. Additionally, we discarded 488 used
     batteries under buy-back scheme, 1,137 used oil filters and 1,454 damaged hoses. We
     encourage the re-use of non-hazardous waste generated at our locations, but we also dispose a
     part of the scrap generated through contracted vendors. At our Lube plants we disposed close to
     489.73 tons of non-hazardous waste this year that comprised of wooden scrap, MS scrap,
     corrugated boxes and packaging material.




     Reuse of Plastic Waste
     Kochi refinery R&D developed a road paving
     mix using disposed plastic waste. This Clean
     Kochi initiative focuses on collection and
     segregation of various bio-degradable and non
     bio-degradable wastes from different parts of
     the city municipal corporation limits and their
     disposal in a scientific manner. A 350 km
     stretch of Kaloor-Manapatti Parmbu road uses
     the shredded plastic wastes in road paving. Up
     to 5% of shredded plastic waste could be
     disposed off in this way. This road-care initiative
     implemented in association with the makers of
     Natural Rubber Modified Bitumen (NRMB)
     helped strengthen our bond with nature and
     society.
27
28




                               MANAGING
                               ENERGY
                               EFFICIENTLY
     Energy and climate change as a
     business issue is of paramount
     significance to us. We approach this
     key issue by working towards securing
     crude oil supplies, improving
     operational efficiency and exploring
     new opportunities in alternate energy.
                                                                                                                                                                                                                                                                                                                                                                                              29


The global demand for energy is expected to                                                             marketing locations are enlisted below:                                                       175,324.3 GJ of direct energy of which HSD                                                  Indirect energy consumption at refineries
rise in the decades to come with oil as the                                                                                                                                                           is the single largest fuel source. Apart from
                                                                                                        1. Our lube installation at Wadi, Mumbai,
single largest source of energy to satisfy this                                                                                                                                                       HSD consumed for our operations, DG sets
                                                                                                           installed a condensate recovery system in                                                                                                                                                                 250
demand. This increase in demand provides                                                                                                                                                              and Fire engines, HSD consumed by our                                                                                                                                   224.60
                                                                                                           order to utilize energy from condensate
the industry with significant opportunities but                                                                                                                                                       own vehicles at our marketing locations are a




                                                                                                                                                                                                                                                                                                  ‘000 Giga Joules
                                                                                                           from the boilers at the unit. This enabled                                                                                                                                                                200
at the same time growing concerns of climate                                                                                                                                                          significant contributor to our total HSD
                                                                                                           the unit to save furnace oil consumption                                                                                                                                                                                               152.20
change pose significant risks to businesses and                                                                                                                                                       consumption. In FY 2009-10, our own                                                                            150       138.10                                    139.10
                                                                                                           for its boilers
society at large. We intend to contribute                                                                                                                                                             vehicles consumed 66,662.93 GJ of energy                                                                                       116.40             110.70
                                                                                                        2. Several initiatives to conserve energy and
towards building a sustainable future by                                                                                                                                                              from HSD. The indirect energy consumption                                                                      100
                                                                                                           increase efficiency were taken at Mumbai
continuing to satisfy the energy demand while                                                                                                                                                         at our refineries for 2009-10 was 363,697 GJ                                                                                                                                     0.00
                                                                                                           refinery and Kochi refinery, through process
mitigating the risks related to climate change                                                                                                                                                        while our other SBUs consumed 562,503.36                                                                        50
                                                                                                           modifications and retrofitting of existing
to the extent possible.                                                                                                                                                                               GJ of indirect energy.                                                                                                             0.00                    0.09
                                                                                                           equipments, leading to energy savings of over                                                                                                                                                               0
Energy security                                                                                            37,047 GJ and 149,704 GJ respectively.                                                     Direct energy consumption at                                                                                                 2007 - 2008      2008 - 2009            2009 - 2010

                                                                                                        3. We have installed a 4.8 KWh solar power                                                    refineries                                                                                                      Mumbai Refinery         Kochi Refinery            Numaligarh Refinery
Securing crude oil supplies is undeniably one
                                                                                                           system at two of the sectionalizing valves
of the key challenges for oil and gas                                                                                                                                                                                                                                                             Indirect energy consumtion at marketing
                                                                                                           (SV) stations of our MMBPL pipeline, at
companies globally. This year we have taken                                                                                                                                                                                 35                                                                    SBUs
                                                                                                           SV 38 near Kota (Rajasthan) and SV 45                                                                                   32.00                31.10
significant steps towards securing our energy
                                                                                                           near Mathura (UP). Commissioned in                                                                               30
supplies. Ramping up the oil and gas                                                                                                                                                                                                                                          25.10
                                                                                                           March 2010, this facility fulfills energy                                                                        25
                                                                                                                                                                                                                                                                                                                        600                                                   563
exploration capacities through a joint venture




                                                                                                                                                                                                     million Giga Joules
                                                                                                           needs of the 2 stations, supplying power                                                                                                                                   20.61
of our subsidiary BPRL and Videocon                                                                                                                                                                                         20          17.90                   17.80                                                   500
                                                                                                           for SCADA, telecom, fire alarm system,
Industries, in 2008 we acquired participating
                                                                                                           essential lighting and sectionalizing valve.                                                                     15                  12.70               12.10                 12.30                         400            364                 371
interest in 10 blocks in Brazil. New natural




                                                                                                                                                                                                                                                                                                   ‘000 Giga Joules
gas discovery was made in Mozambique,                                                                   Energy saving from initiatives                                                                                      10
                                                                                                                                                                                                                                                                                                                        300
Africa where BPRL has participating interest.                                                           at refineries                                                                                                        5
BPRL also acquired a new block in Nunukan                                                                                                                                                                                                                                                                               200
                                                                                                                                        1200       1,151
                                                                                                                                                                                                                             0
basin in Indonesia. At present, BPRL and its                                                                                                                                                                                         2007 - 2008         2008 - 2009           2009 - 2010                              100
                                                                                                     Energy saving in’000 Giga Joules




subsidiary companies hold participatory                                                                                                 1000
                                                                                                                                                                                                                           Mumbai Refinery        Kochi Refinery            Numaligarh Refinery
interests in 26 exploration blocks with total                                                                                                                                                                                                                                                                              0
                                                                                                                                        800                                                                                                                                                                                         2007 - 2008      2008 - 2009           2009 - 2010
acreage of 81,000 sq. km                                                                                                                                                                              Direct energy consumption at
                                                                                                                                        600                                                           marketing SBUs
Achieving operational efficiency                                                                                                                               423                                                                                                                                Green House Gas (GHG) emissions from our
We are exploring every opportunity to                                                                                                   400                                                                                200                                                                    processes are due to direct and indirect
                                                                                                                                                                            238                                                                            174                    175
increase our operational efficiency thereby                                                                                                                                                                                                                                                       energy consumption. We constantly endeavor
                                                                                                                                        200
reducing impact on the environment. The                                                                                                                                                                                    150         143                                                        to reduce the footprint of our operations on
continuous improvement in our specific                                                                                                    0                                                                                                                                                       the atmosphere. This year we continued our
                                                                                                                                               2007 - 2008   2008 - 2009   2009 - 2010
                                                                                                                                                                                                     ‘000 Giga Joules




energy consumption is attributed to various                                                                                                                                                                                                                                                       research collaborations with a number of
                                                                                                        This year our refining processes have                                                                              100                                                                    leading institutions of the country. These
corporate-level and plant-level initiatives
                                                                                                        consumed a total of about 58 million GJ of                                                                                                                                                include collaborations with IISc, Bangalore,
taken each year. Few of the energy
                                                                                                        direct energy. The direct energy sources                                                                           50                                                                     Osmania University, Hyderabad, Tamil Nadu
conservation and efficiency improvement
                                         22                                                             include Naphtha, HSD, LPG and LNG. Our                                                                                                                                                    Agricultural University, Coimbatore, IIT
initiatives undertaken by our refineries and
                                                                                                        other SBUs together have consumed                                                                                                                                                         Roorkee, IIT Madras and Institute of Plasma
                                                                                                                                                                                                                            0
                                                                                                                                                                                                                                   2007 - 2008          2008 - 2009           2009 - 2010




22
     A detailed list on the energy conservation initiatives at our refineries is available in our Annual Report 2009-10 at http://www.bharatpetroleum.in/EnergisingBusiness/In_Financial.aspx?id=1
30




     MANAGING ENERGY EFFICIENTLY



       Research, Gandhinagar. The projects with IISc                                                  Clean and Alternate Energy Focus                                                              Measuring our carbon footprint – ‘MeCO2’
       were on cutting oils, adsorption of natural gas                                                We are consciously working towards                                                            This year we initiated the assessment of our GHG emissions. The pilot of the project was carried out
       using nano technology and photo voltaic cells                                                  producing cleaner fuels. In early 2010, all our                                               for our Lubes SBU which will be replicated across our SBUs. The assessment done by M/s Wipro
       using new materials like copper, indium,                                                       refineries commenced production of petrol                                                     Limited, estimated our Lubes SBU total GHG emissions to be 14,212.21 MT of CO2e for 2008-09.
       gallium, sulphur and zinc.                                                                     and diesel conforming to Euro IV norms,                                                       Scope III emissions contributed to nearly 58% of total emissions while Scope I and Scope II emissions
       Owing to our efficiency improvement and                                                        which are more stringent with respect to                                                      contributed to 23% and 19% respectively. This study has enabled us to identify opportunities to
       energy conservation initiatives we were able                                                   emission standards as compared to Euro III                                                    reduce possible carbon risks and seek opportunities for improving our process efficiencies further. We
       to avoid 17,805 tons of GHG emissions at                                                       norms. The Government of India (GoI) plans                                                    also intend to create carbon emission labels for our products, providing our customers with information
       our refineries                                                                                 to mandate sale of Euro IV petrol and diesel in                                               on GHG emissions emitted on account of manufacturing and transportation of our products. The
                                                                                                      13 cities across the country from 1 April                                                     assessment established a baseline of 85.6 grams of GHG emissions per kilo gram of our lubricant
       GHG emissions from refineries23
                                                                                                      2010. We continue to blend a fixed                                                            products for 2008-09.
                         5000       4,669.35           4,676.19
                                                                           4,337.15
                                                                                                      proportion of ethanol in our base petrol and
                                                                                                      diesel products, in compliance to and in
                         4000
                                                                                                      support of GoI’s initiative to reduce the
     ‘000 tons of CO2e




                         3000
                                                                                                      country’s GHG footprint from fuel use.
                                                                                                      While we are committed to produce cleaner
                         2000                                                                         fuels with improved emission standards, we
                                                                                                      are exploring alternate energy sources in a
                         1000
                                                                                                      significant way, with development of Bio-diesel
                                             54.36                56.42             76.22             capacity using Jatropha through our Triple
                            0
                                      2007 - 2008        2008 - 2009       2009 - 2010                One project. We have also invested in wind
                                                                                                      and solar energy projects at several locations
       GHG emissions from marketing SBUs24
                                                                                                      across the country. We have installed capacity
                           150                                                                        of Wind power of 5 MW in Kappatguda,
                                                                                  128.12
                           120                                                                        Karnataka, and solar power of 1 MW at our
     ‘000 tons of CO2e




                            90                 84.07            85.44                                 LPG bottling plant at Lalru, Punjab. Along with
                                                                                                      this, we have also installed 5 KVA
                            60
                                                                                                      solar-cum-wind generator at one of our
                            30                                            12.27                       company-owned company-operated
                                     10.18              12.23
                                0                                                                     (COCO) retail outlet near Kolkata and a 5
                                     2007 - 2008        2008 - 2009       2009 - 2010

                         Direct emissions         Indirect emissions


     23
       For calculating GHG emissions from direct sources at NRL, IPCC default values for emission factors were used. The values for the previous year’s data are based emission factors developed by the NRL.
     24
       For calculating GHG emissions from direct sources, we have used tools provided by GHG Protocol initiative, accessible at www.ghgprotocol.org/calculation-tools/all-tools
       For calculating our indirect GHG emissions, we have used an emission factor of 0.82 tCO2e/MWh, based on Central Electricity Authority’s CO2 baseline data for Indian Power sector v5, Nov 09
                                                                                                                                                                                                                                                31




5 KVA solar power generator at another                      Depleting Substances (ODS) across our SBUs                             Fuel switch – Liquid to Gas
COCO outlet near Bangalore. We endeavor                     honouring the GoI’s milestones as set by
                                                                                                                                   Our Mumbai Refinery has successfully shifted from liquid based Naptha and Bombay High Gas Oil to
to increase our energy production and                       Montreal Protocol.
                                                                                                                                   gas based Re-gasified Liquified Natural Gas (RLNG). Earlier the refinery was dependent on Naptha
in-house consumption from renewable
                                                           Other air emissions from refineries                                     and Bombay High Gas Oil as fuel for gas turbines to generate power and steam. Natural gas being
sources in the future. In this attempt, we have
                                                                            11,646.80                                              environment friendly, sulfur free, having high caloric value and priced lower than distillate fuel for
planned to make further investments in wind                       12000                       11,185.50
                                                                                                                ,10351.60          equivalent heat input ,was the preferred choice for replacing the liquid fuels.The refinery capitalized on
energy in the states of Rajasthan, Maharashtra,
                                                                  10000                                                            the commissioning of Dahej Uran pipeline by M/s Gas Authority of India Limited to transport gas from
Gujarat and Madhya Pradesh.
                                                                                                                                   Hazira to Uran. This pipeline made natural gas available as an alternate to liquid based fuels. To meet
                                                                  8000
In May 2009, our Kochi Refinery commenced                                                                                          the additional gas requirements, an agreement was made with Reliance Industries Ltd, and RIL KG D6
                                                           tons




operations of its biogas plant constructed using                  6000                                                             gas was taken along with RLNG. The refinery invested in conversion of equipments to suit the gas
technology developed by BARC. This plant                                                                                           based fuels. By replacing liquid fuel with gaseous fuels we were able to improve thermal efficiency of
                                                                  4000
enabled scientific management of canteen                                                                                           gas turbines contributing to increased power generation, reduce maintenance costs by improving
waste to produce energy, thus solving                             2000                                                             reliability of gas turbines and reduce CO2 and SO2 emissions due to low carbon and sulphur content of
                                                                                   1,126.20          1,051.10           1,127.40
problems of canteen waste disposal and                                                                                             the fuel, Natural gas being a cheap and cleaner fuel helped to reduce the impact on environment.
effecting energy generation. We are making                              0
                                                                              2007 - 2008       2008 - 2009        2009 - 2010
sincere efforts to increase our energy                            SOx       SPM
production and in-house consumption from
these sources in the future.
                                                     25
Air emission monitoring
All our refineries have Continuous Emission
Monitoring (CEM) systems installed for
monitoring flue gases for air pollutants. We
contain our air emissions levels within the
prescribed regulatory norms and have
implemented measures like low NOx
burners, desulphurization of vacuum off gas
systems at our refineries to further reduce the
impact.
We are in the process of phasing out Ozone




25
     The NOx emissions are currently not being monitored
32




                               CONSERVING
                               WATER
     Water conservation is a priority in our
     agenda and in recent past we have made
     concerted efforts to save, re-use and recycle
     water. Additionally, we are aggressively
     implementing rain water harvesting across
     our installations as we progress towards
     achieving our dream of becoming a water
     positive organization.
36




                              NURTURING PEOPLE,
                              FOSTERING TALENT
     “For us, sustainable development is an
     ongoing process. Our employees make all the
     difference by putting the vision of building
     sustainable future into effect with the
     objective to innovate for a better tomorrow”
                                Dr. S. Mohan
                     Director (Human Resources)
                                                                                                                                                                                                                                             33

As we focus our efforts on reducing our             belt of the Arabian Sea to minimize ingress of                                 Water harvesting – knowledge sharing
material and emission footprint, it is vital that   saline water into the water table. Over 100
                                                                                                                                   To further give shape to our aspiration of implementing rain water harvesting in each and every unit of
we also focus on our efforts to manage our          retail outlets in the Southern region alone
                                                                                                                                   the organization, we have released a detailed book on this subject, which empowers installations with
water use responsibly. At BPCL, we realize          have implemented rain water harvesting
                                                                                                                                   requisite knowledge on the subject. The book provides valuable information on the Indian water
that water is one of the most precious              through percolation pits to recharge the
                                                                                                                                   scenario, efficacy of ground water resource deployment, artificial recharge schemes, water harvesting
resources in the world today and is critical for    ground water.
                                                                                                                                   initiatives at BPCL, rain gardens, acceptance of roof water as drinking water, shortage of rainwater
a sustainable future.
                                                      Water withdrawal and recycle/ reused                                         and conservation tips. This information provided the necessary impetus at many of our location to
Our sources of water are varied, depending            by refineries                                                                practice water conservation and harvesting initiatives in structured and efficient manner.
largely on the availability of water at the                        60
location of our units – in some places sea                                  55.00
                                                                                            49.00             44.68
water is a primary source, while in others,                        50
ground or river water is relied upon. In
                                                                   40




                                                     million m3
2009-10, the total water withdrawal by the
refineries was 44.68 million cubic metres. Our                     30
marketing SBUs withdrew 1.49 million cubic
                                                                   20
meters of water during the reporting year.
A number of our marketing locations have                           10
                                                                                     3.24             3.20              3.28
been at the forefront of water management                              0
and have successfully implemented pilot                                     2007 - 2008      2008 - 2009        2009 - 2010
projects to be replicated at other locations.                     Total water withdrawal         Water recycled / reused
For instance, our Pune LPG plant has started                                                                                        In March this year, Rajkot Territory became the first LPG Territory to install the Roof Top Rain Water
a unique initiative of recycling all the soap        Water withdrawal by source at                                                 Harvesting System. The RWH unit installed at Rajkot consists of SFM and HFM units along with bore
water, resulting in a closed loop and zero           refineries in 2009 -10                                                        recharge well and down-take pipes running along the length of the roof-top of the sheds. The fresh
wastage of water. All our refineries have                                                                                          roof water of new unit which will be diverted to ground will be of around 100 to 200 TDS. The SFM
implemented sour water stripping units to                         Surface water       40004.58                                     unit operates on gravity and does not require electricity and can filter up to 30 cubic meter of water
remove hydrogen sulphide and ammonia                                                                                               per hour. In addition, the top module of HFM is provided with gravels which restrict physical particles
                                                                  Muncipal water 11.34
from waste water so that this water can be                        supplies       252.17                                            like vegetation and plastics entering the module and lower modules acts as sedimentation/settling
reused. At the refineries, we were able to
                                                                  Rain water                                                       tank. This initiative is expected to generate a ripple effect across the organization with many units
                                                                                4412.50
recycle 7.32 % of water withdrawn during                          Ground water
                                                                                                                                   planning to implement RWH systems similar to the one installed in Rajkot.
the year.
                                                                                                                               3
Additionally, we have studied the rain water                                                                            ‘000 m
harvesting potential at every location of BPCL       Treated effluent discharge at refineries
to facilitate its implementation. Mumbai                          40         37.10
refinery conducted a comprehensive rain                           35                          30.98             31.54
water harvesting study and implemented                            30
                                                    million m3




                                                                  25
roof-top water harvesting systems at several                      20
locations in the refinery and staff residential                   15
colony. Kochi refinery has constructed a rain                     10
                                                                   5
water harvesting pond in an area of 5 acres
                                                                   0
with a capacity of 25,000 KL on the coastal                                2007 - 2008      2008 - 2009       2009 - 2010
34




     CONSERVING WATER



     Water re-use at Pune LPG Installation                                                                    Monitoring effluent streams
     The Pune LPG Plant is situated in village Sanswadi where the water table is very low resulting in        Effluents from oil and gas operations, if not
     non-availability of ground water. Hence the site is procuring water from external sources at a higher    properly managed, can be a major source of
     cost. A water conservation project primarily to recycle and reuse was implemented at the site to         pollution in surrounding areas, damaging
     reduce fresh water requirement. This intervention resulted in avoidance of around 9 KL of fresh water    public health and affecting property. Keeping
     usage every day. Recycled water is used for cleaning soap trays, cylinder test baths and for gardening   this in mind, we have taken determined efforts
     purpose. This project also resulted in annual savings of close to ` 72,000.                              to ensure that the effluent is managed in an
                                                                                                              efficient and effective manner and bears
                                                                                                              minimum impact on the environment outside
                                                                                                              our premises. None of our operations are in
                                                                                                              or close to any notified bio-diversity hotspots.
                                                                                                              We have installed oil and water separators
                                                                                                              wherever needed, to ensure that wastewater
                                                                                                              discharged outside our boundaries is not
                                                                                                              contaminated with hazardous waste oil. We
                                                                                                              also make sure that our refineries have
                                                                                                              well-maintained effluent treatment plants, and
                                                                                                              that the treated effluent meets the regulatory
                                                                                                              environmental standards. In 2009-10, our
                                                                                                              refineries discharged 31,542,261 cubic metres
                                                                                                              of treated effluent
                                                                                                                                                                                                                                                                                             37


Nurturing people, fostering talent                                                                                                                                                  33 cases of employee grievances were               contract labor. Of our Marketing SBUs, LPG
                                                                                                                                                                                    received by the ESE cell, out of which 22          employed the maximum number of
BPCL seeks to create talent by nurturing people through a positive team culture and a high                                                                                                                                                                             27
                                                                                                                                                                                    complaints were resolved satisfactorily and        contractual labor in 2009-10 followed by
performance environment where individuals and teams perform to their fullest potential. We
                                                                                                                                                                                    the balance are in process of redressal. To        Retail, Aviation and Lubes. We prohibit the
endeavor to implement policies and practices that help employees to balance their work and
                                                                                                                                                                                    fulfill its mission of making BPCL a great place   deployment of child labor and forced labor in
personal demands.
                                                                                                                                                                                    to work, the ESE cell undertakes visits to         our sites. Our security personnel have been
                          26
Our workforce included 14,707 employees at year end 2009-10 of which 5,245 belonged to                                                                                              upcountry locations to personally interact with    trained to maintain a strict vigil on under-age
the management cadre and 9,462 were workmen.                                                                                                                                        the staff posted there. During the year more       workers entering the premises.
                                                                                                                                                                                    than 65 group meetings were held by ESE all
Employees at BPCL and NRL                                                                                                                                                                                                              Knowledge management
                                                                                                                                                                                    over the country covering more than 1,300
                                                      2007-08                                          2008-09                              2009-10                                 management and non-management                      We aim to make knowledge management an
                                                                                                                                                                                    employees.                                         inherent part of the daily activities especially in
Cadre                                         BPCL                  NRL                   BPCL                   NRL                 BPCL                    NRL                                                                       terms of awareness on safety aspects and
                                                                                                                                                                                    A significant portion of our employees are
Senior management                               165                   13                     172                      15               173                    16                                                                       procedures. Towards our endeavor of
                                                                                                                                                                                    represented by labor unions. We negotiate
                                                                                                                                                                                                                                       fostering talent by nurturing people, in
Middle management                             1,141                   58                  1,272                       56             1,365                    87                    collective bargaining agreements including
                                                                                                                                                                                                                                       2009-10 a total of 146,256 manhours of
                                                                                                                                                                                    decisions on any operational changes and
Junior management                              3126                  229                  3,186                      272             3,318                   286                                                                       training were imparted to our management
                                                                                                                                                                                    extensions with these unions. We do not                        28
                                                                                                                                                                                                                                       employees while our non-management
Non-management                                9,542                  384                  9,389                      376             9,059                   403                    prevent any of our employees on their right
                                                                                                                                                                                                                                       employees participated in training that
                                                                                                                                                                                    to choose or be part of any collective body.
Our goal is to recruit, hire and promote the                                                                                                                                                                                           amounted to 101,512 manhours.
                                                                                          Employee turnover at BPCL
most qualified candidates while diversifying                                                                                                                                        Respecting Human Rights
                                                                                              200
                                                                                                                                                      198                                                                              We are working towards creating business
our workforce, and ensure that training and                                                                                                                                         Responsible operations and business practices      leaders for tomorrow who share the ethos of
                                                                                                               166
developmental opportunities are available to                                                                                  153                                                   help us manage risks, foster a positive            the company in creating a long term
further enhance the diversity composition in                                                  150        137                                                                        business climate, improve stakeholder              stakeholder value for a sustainable future. We
                                                                                                                      128
professional and managerial positions. We                                                                                            107                                            relations and gain access to global resources.     understand the importance of grooming our
also believe that by engaging in local hiring we                                              100                                                                                   We respect the human rights of all                 next generation leaders and invest in
                                                                                        Numbers




                                                                                                                                            85                     81
will be able to create a direct positive impact                                                                                                              73                     stakeholders and raise awareness of related        necessary trainings. We have launched an
on the development of the local regions. Our                                                                                                                                        issues across the organisation. We have the        initiative to validate the organizational culture,
                                                                                                  50
officer cadre recruitments are based on                                                                                                                                             challenge of ensuring that employees,              values and competencies with a view on the
parameters like qualification, merit with                                                                                                                                           business partners, security forces and others      business imperatives for future, to build a
designated quotas for differently-abled,                                                          0
                                                                                                           2007 - 2008          2008 - 2009             2009 - 2010                 are aware of these expectations, and that          robust framework of assessment for all levels.
economically backward and tribal                                                                                                                                                    relevant stakeholders receive training on          The framework endeavours to build a
                                                                                                         > 30 Years              30 - 50 Years              < 30 Years
communities. We are also guided by various                                                                                                                                          these aspects.                                     sustainable leadership pipeline by linking the
state statutes in providing local employment                                             remuneration, performance and potential                                                                                                       assessments to all critical HR processes viz.
                                                                                         assessment, as well as training, respect the                                               A significant portion of our workforce is
for both officer and workmen cadres.                                                                                                                                                                                                   career planning, progressions etc
                                                                                         principle of equal opportunities for all                                                   contractor-based and we work closely with
This year the employee turnover was 352                                                                                                                                             them to ensure the contract labor entering         The company’s training, mobility, assessment
                                                                                         employees, regardless of their ethnic origin,
which include retirements, resignations,                                                                                                                                            our premises are well equipped and trained         and other policies and programs allow it to
                                                                                         gender or age. Employees can approach the
deaths-in-service and dismissals.                                                                                                                                                   to carry out our operations in a safe and          manage the careers of the people who make
                                                                                         ESE cell which is responsible for registering
BPCL is working to ensure that its policies and                                          employee grievances and facilitating the                                                   efficient manner. On account of the capacity       up the organization in an integrated way. We
practices, including those on promotion,                                                 resolution of grievances. In the year 2009-10,                                             expansion of our refineries at MR and KR,          ensure that the training provided to our
                                                                                                                                                                                    there has been an increased inflow in the

26BPCL and NRL
27This year, we have included contract laborers from operations including   security personnel, housekeeping as well as the contract laborers for projects who were involved in construction activities at sites
28Includes marketing employees at all marketing SBUs and Refineries
35
38




     NURTURING PEOPLE, FOSTERING
     TALENT

                                                                       29
      Training manhours at BPCL
                                                                                                                                                                                                       Apprentices at our refineries received a total of
                                                                                                    2007-08                                 2008-09                               2009-10                                             32
                                                                                                                                                                                                       537,120 manhours of training on the job
      Management employees                                                                             56,704                                 79,744                              101,512              during the year.
      Non-management employees                                                                       125,184                                 108,368                              146,256              Special emphasis was given to training
      Contract labour                                                                                271,470                                 351,287                              576,589              programs with a thrust to reinforce safety
      GATs                                                                                             68,088                                112,619                                88,592             culture in the organization. In this direction,
                                                                                                                                                                                                       several training programs and workshops
      Apprentices                                                                                      79,184                                318,645                              448,528
                                                                                                                                                                                                       covering workplace health, workplace security
      employees is a right mixture of technical,                                                            rotation – geographical and intra-functional.                                              & surveillance and safe driving were arranged
      functional and interpersonal domains. In order                                                        This enables us to create multi-talented                                                   regularly across SBUs.
      to use the superior level of performance of                                                           workforce while contributing to the career                                                 During the year, “Bharatgas University”, a
      few employees as a benchmark, it was                                                                  development of individuals.                                                                knowledge portal developed by LPG SBU,
      decided that we should develop Competency                                                                                                                                                        was upgraded to include a learning
                                                                                                            Focusing on the strategic thinking skill set, the
      based models for various roles. 360 degree                                                                                                                                                       management system and additional e-learning
                                                                                                            talent management group of the corporate
      assessment of the competencies was done as                                                                                                                                                       programs on functional topics in LPG
                                                                                                            HRD organized a customized program for 37
      part of project CALIBER for the middle and                                                                                                                                                       operations.
                                                                                                            employees in the senior management category
      upper management categories to assess the
                                                                                                            at ISB Hyderabad in May 2009. The                                                          Educating the Trade Unions
      strengths and areas of improvement. This was
                                                                                                            participants examined the idea of sustained
      followed up with targeted developmental                                                                                                                                                          Aiming to apprise Trade Union leaders about the
                                                                                                            strategic competitive advantage as the primary
      programs for individuals in collaboration with                                                                                                                                                   global economic crisis, its impact on BPCL and
                                                                                                            source of value creation.
      several premier institutes. Innovative learning                                                                                                                                                  the way ahead, a workshop was organized for
      platforms like e-learning, case study                                                                 While it is important to constantly nurture                                                them in the western region. The leaders were
      competitions, experiential learning have also                                                         talent at the management level, it is equally                                              urged to align themselves to the realities of global
      been integrated within the learning framework,                                                        important to ensure that the competency of                                                 challenges with a view to combat the crisis
      the efficacy of which is being evaluated through                                                      the people involved at ground level in the                                                 efficiently. The leaders were given cognitive inputs
      reassessments.                                                                                        operations is enhanced continually The                                                     to cope with the present challenge by formulating
      Internal mobility at BPCL is seen as an
                                                                                                                            30
                                                                                                            contract labor at our refineries and marketing                                             apt strategies with a positive attitude.
                                                                                                                   31
      opportunity for the professional development                                                          SBUs received a total of 576,589 manhours                                                  At Kochi refinery, a half day information sharing
      of employees exposing them to various facets                                                          of training, significantly up from 351,286                                                 exercise was conducted for the employee unions
      of the business. Internal mobility includes job                                                       manhours in 2008-09. The GATs and                                                          covering aspects of OHSAS 18001, ISO 9001
                                                                                                                                                                                                       and 14001.

     29
        Training manhours for GATs and Apprentices are only for refineries
     30
        We have asked the sites to refurnish data for the last 3 years for training as we have included training imparted to all contract labor on site which was not reported in totality last year
     31
        Training imparted to PCVO crew has also been included
     32
        The entire time spent by GATs and Apprentices has been considered as training
39
40




                               ENSURING SAFETY
                               AND SECURITY,
                               PROMOTING HEALTH
     The main objective of the initiatives
     undertaken and to be planned in the future at
     our locations continues to be the reduction of
     the frequency and severity of accidents, as
     well as the prevention and mitigation of the
     risks associated with our operations.
                                                                                                                                                                                                                                                                                                                   41

Creating safe workplaces                                                                                                                                                                                                                                       A first in BPCL, a new module on Personal
                                                                                                                                                                  2007-08                                   2008-09                                  2009-10
The protection of our employees, of the                                                                                                                                                                                                                        Protective Equipments System, went live in
                                                                                         Refineries (including NRL)                                                                                                                                            Kochi Refinery in October. This module
communities around our operations, and of                                                Near misses                                                                    34                                        75                                     168
our production assets is our major priority,                                                                                                                                                                                                                   displays the details of PPE’s issued to eligible
                                                                                         Minor injuries                                                                 7                                         24                                      18   employees for a period and makes them
regardless of the excellent results obtained in
the past. We have prioritized this as a key                                              First aid cases                                                                30                                        49                                      32   more aware of the minimum safety
focus area for us to build a sustainable                                                 Lost time injuries                                                             16                                        22                                       5   equipment they are supposed to wear
                                                                                                    34                                                                                                                                                         thereby increasing safety awareness. We also
workforce for the future.                                                                Lost days                                                                     787                                      5,563                                    292
                                                                                                                                                                                                                                                               ensure proper use of PPEs through inclusion
Lost Time Injuries at refineries                                                         Marketing SBUs                                                                                                                                                        of safety specific clauses in collective
          25                                                                             Lost time injuries                                                             53                                        13                                      4    bargaining agreements across our SBUs.
                                            22
                                                                                         Lost days                                                                     206                                       621                                     147
          20
                                                                                                                                                                                                                                                               We believe in not only training our own
                        16                                                                                                                                                                                                                      36             employees, but also other stakeholders who
                                                                                         A testimony to our improved safety                                                           9.73% of our full time employees are part                                are a part of our safety journey. A 6 month
          15
Numbers




                                                                                         performance at the refineries has been the                                                   of joint safety committees with each location                            certificate course in Fire Safety Engineering for
                                                                                         fact that Mumbai Refinery completed 4                                                        dealing with important health and safety                                 engineering graduates/science
          10                                                                                               35
                                                                                         million manhours without LTA on 31st                                                         aspects that arise due to day to day                                     graduates/diploma holders was inaugurated at
                                                                  5
          5
                                                                                         March 2010 and Kochi Refinery completed                                                      operations.                                                              KR this year. Around 24 participants enrolled
                                                                                         15 million accident-free manhours on 30th                                                                                                                             in the program. The main objective of the
                                                                                                                                                                                      Fostering safety culture
          0                                                                              August 2009. NRL extended its run of                                                                                                                                  program is to enhance the employability of
                  2007 - 2008          2008 - 2009          2009 - 2010                  accident (LTA) free manhours to 8 years and                                                  Safety of contract labour is given high
                                                                                                                                                                                                                                                               the participants in the field of Fire safety. KR
                                                                                         1 month (as on 31st March 2010) which is                                                     importance and is treated at par with the
                                                                                                                                                                                                                                                               also tied up with the Kerala State Fire &
This year, at our refineries, the employee                                               equivalent to a commendable 14 millon                                                        safety of our own employees. Only
                                                                                                                                                                                                                                                               Rescue Services to equip firemen in the state
injury frequency rate was 0.017. The                                                     accident free manhours.                                                                      experienced contractors are allowed to work
                              33                                                                                                                                                                                                                               services to respond to hazardous chemical
contractor injury frequency rate was 0.043,                                                                                                                                           in the refineries. Supervisors and employees
                                                                                         All our refineries are OHSAS 18001 certified                                                                                                                          emergencies more scientifically, through a
down significantly from 0.18 last year.The                                                                                                                                            of the contractors are trained at regular
                                                                                         and strive for continuous improvement in                                                                                                                              series of two-day workshops.
severity rate for contract labour was 2.54,                                                                                                                                           intervals. Mandatory safety training by BPCL
down by a huge margin from 63.86 last year.                                              operational safety. During the year KR                                                                                                                                Regular reviews of onsite emergency plans
                                                                                                                                                                                      for all contract labour and supervisors is a
The total lost time injuries have come down                                              upgraded its accreditation to OHSAS                                                                                                                                   and mock drills are conducted at our
                                                                                                                                                                                      pre-requisite for obtaining a gate pass for
from 22 last year to just 5 this year. We                                                18001:2007.                                                                                                                                                           refineries.This year we conducted a specific
                                                                                                                                                                                      working inside the refinery.
deeply regret the loss of three lives due to                                             At our refineries, the overall safety                                                                                                                                 drill on handling gas leak from mounded
                                                                                                                                                                                      Lost Time Injury Frequency Rate at
work related fatalities at our refineries. We                                            performance is reviewed every quarter in the                                                                                                                          bullets and measures were recommended to
                                                                                                                                                                                      refineries - contract labour
are further strengthening our safety                                                     Management Safety Committee meeting                                                          0.30
                                                                                                                                                                                                                                                               disperse and dilute vapor cloud in the
management systems in an endeavor to                                                                                                                                                                    0.266                                                  emergency area.
                                                                                         which is chaired by Director (Refineries).
achieve zero fatality.                                                                   There is an apex manual (OHSMSM) which                                                       0.25
                                                                                                                                                                                                                                                               Conducting safety talks for the truck driver
Safety performance at all our marketing SBU’s                                            provides the framework for safety                                                            0.20                                     0.181                           community has been high on our agenda
also improved significantly with drop in the                                             management. Recognizing the good work                                                                                                                                 considering the nature of our products. A “Drive
                                                                                         done by the forum, KR’s joint HSSE                                                           0.15
lost time injuries from 13 last year to just 4                                                                                                                                                                                                                 Safely” booklet was released at the annual HSSE
this year. In the process we lost only 147                                               committee was adjudged the Best Safety                                                                                                                                awards this year which highlighted safe driving
                                                                                                                                                                                      0.10
mandays to these injuries as compared to                                                 Committee by the NSC, Kerala Chapter for                                                                                                                              tips for drivers of tank lorries, trucks and even
                                                                                                                                                                                                                                                 0.043
621 mandays last year.                                                                   the year 2009-10.                                                                            0.05
                                                                                                                                                                                                                                                               two and four wheelers. This was aimed to
                                                                                         Across our SBUs and refineries, close to                                                     0.00                                                                     reduce the accidents on road and encourage
                                                                                                                                                                                                    2007 - 2008           2008 - 2009         2009 - 2010      safe driving practices
 33Frequency rate and severity rate are sans the fatalities
 34The values for 2007-08, 2008-09 restated in consistency with global safety reporting practices. The lost days   pertain only to the lost time injuries and do not include lost days of 6000 per fatality as per The Factories Act, 1948.
 35LTA free manhours corresponds to cumulative performance that may extend beyond the reporting period
 36BPCL & NRL – Management & Non-Management employees
42




     ENSURING SAFETY AND SECURITY,
     PROMOTING HEALTH


     Endorsing safe use of products                   In the last year, awareness programs covering        the refinery availed of the services and made        We have developed an in-house “security
                                                      preventive and personal care on swine                this event a huge success.                           scorecard” to assess the emergency
     We believe in the motto ‘Pure for Sure’ and
                                                      influenza, kidney care and management of                                                                  preparedness and adequacy of the security
     strive to deliver quality product to our                                                              Workplace security
                                                      renal disorders, heart care, diabetes, and eye                                                            set up at the site which are rated on certain
     consumers. We have four NABL accredited
                                                      care were undertaken across the organization         Workplace security remained a key concern            fixed parameters including competency on a
     testing laboratories and our products have
                                                      for employees and in some cases their                for the entire sales network in general and oil      scale of 100. This scoring system was used by
     regularly been tested for superior quality. We
                                                      families and the local community as well             & gas storage locations in particular. Locations     locations to assess the site security
     assess customer satisfaction through periodic
                                                                                                           were operating under the frequent security           preparedness and was reviewed by regional
     surveys intended to capture the feedback of      With the objective of reducing absenteeism
                                                                                                           alerts raised from time to time even as they         and corporate HSSE role holders for
     the customers on various aspects of our          due to life style based diseases, and thereby
                                                                                                           kept the supply and distribution chain               deploying appropriate security measures.
     products and services.                           increasing productivity, in-plant training for the
                                                                                                           uninterrupted. Security preparedness and
                                                      operating personnel was organized on
     Although health and safety impacts of our                                                             response was ensured at all locations across
                                                      creating awareness on the adoption of life
     products have not been formally assessed                                                              the country.
                                                      style changes to live a quality and healthy life.
     along the entire value chain, we understand
                                                      A full day seminar was organized for Union           Kochi Refinery has been making trials of a databank pertaining to health of all BPCL-KR employees.
     the need for safe manufacture, use and
                                                      representatives on life style diseases with the      They have procured software to capture, update and maintain the data. This will help them in the easy
     disposal of our products. We provide our
                                                      help of external faculty in April’09                 retrieval of relevant health related information of the employees in case of emergencies.
     customers with necessary information about
     the products and their safe usage as             At our regional office – North, a cancer
     mandated by various regulatory bodies. Many      awareness camp for women was organized.
     of our LPG retailers have conducted              48 women employees took advantage of the
     workshops highlighting the safety precautions    session where special equipment was
     during use and disposal of LPG cylinders to      brought by M/s Fortis. At Chennai transit flats,
     housewives and local communities.                we arranged medical checkup for catering
                                                      staff and other contract labor in a phased
     Promoting health for workforce
                                                      manner to enhance hygiene standards and
     Our employees would perform at their             service with help of Ranbaxy.
     potential when they maintain a healthy
                                                      Responding to requests made at the local
     lifestyle and we strive to provide necessary
                                                      suppliers and vendors meet as part of the
     channels for their benefit through regular
                                                      vigilance week, KR conducted a free medical
     medical camps, awareness sessions and
                                                      camp for the contract laborers. Over 350
     access to premium healthcare.
                                                      people including few poor villagers living near
                                                                                                                                                                                                                         43




Train the trainer on ‘Workplace health and hygiene’
We started this initiative as a pilot in the year 2008 with an objective to increase awareness on
workplace health and hygiene among employees and contract labor at marketing locations. The
trainers were equipped with training modules in both English and Hindi, in order to enable them to
train non-management employees and contract labor at their respective workplace. The results were
encouraging and this year we expanded this initiative to cover southern region by training 25 HSSE
role holders from installations, LPG bottling plants, aviation stations, and regional office based
entities. The genesis of the initiative is – while people know everything about health, there is little or
no effort at individual level to apply the knowledge in day-to-day life in terms of food diet, physical
fitness, stress management, hygiene practices, and lifestyle management.
Further, as a continuity measure refresher workshop was arranged for trainers trained during the pilot phase.




                                                                                                                Security Preparedness at our locations
                                                                                                                As a competency building process for HSSE Role holders at locations, Corporate HSSE in coordination
                                                                                                                with Regional HSSE council, organized two day workshop on ‘Workplace Security & Surveillance’ in close
                                                                                                                co-ordination with State Police / CISF experts at some of our vital locations. The training module had
                                                                                                                built-in session for ‘Case Study’ during which participants in three groups deliberated on the given
                                                                                                                scenarios for security preparedness followed by group presentations. Based on the feedback from the
                                                                                                                participants, the review panel concluded that such training should be undertaken at all locations to
                                                                                                                create synergy in the area of security preparedness.
44




                               DEVELOPING
                               SUSTAINABLE
                               COMMUNITIES
     We build long term relationships by investing
     in our communities. Our commitment
     towards boosting local development involves
     initiatives in the fields of education, water
     conservation, health, community
     development and environment conservation.
                                                                                                                                                                                                                                                                                                           45


At BPCL, we believe that developing communities is an integral part of our contribution towards                                                                                                         Numaligarh and Mumbai Refinery have              minimize the digital divide between urban
building a sustainable future. This year our focus was to develop a robust internal CSR structure                                                                                                       supported various educational initiatives such   and rural children and also accelerate overall
including a company wide CSR policy. A 5 member committee was entrusted to formulate this                                                                                                               as adoption of schools, counseling for           academic progress. Around 100 BPCL
policy which was subsequently signed by the Board and C&MD in December’09. A CSR blog,                                                                                                                  students, scholarships and felicitation          employee volunteers from across the
Ummang was created to share the employee volunteering experiences and also capture various                                                                                                              programs for encouragement of excellence in      company enthusiastically participated in the
CSR projects being undertaken across the company. For the first time we captured these                                                                                                                  studies.                                         project by volunteering to teach children
energized efforts of our employees and we accomplished 1,921 volunteering hours in 2009-10.                                                                                                                                                              Mathematics and English. In addition, a
                                                                                                                                                                                                        Kochi Refinery launched an “Integrity Club” in
This year we have included CSR targets as a part of our MoU with MoP&NG and we have                                                                                                                                                                      session was held to orient the staff and family
                                                                                                                                                                                                        Cochin Refineries School in Feb 2010.
achieved all our targets for 2009-10.                                                                                                                                                                                                                    members of Uran about the project and seek
                                                                                                                                                                                                        Integrity club is a corporate initiative for
                                                                                                                                                                                                                                                         more volunteers to take the movement
                                                                                                                                                                                                        rekindling human values in school children
                                                                 2009-10 Performance                                                             2010-11 Targets                                                                                         ahead. The collaboration with NGO
                                                                                                                                                                                                        based on the directive of the Central
                                                                                                                                                                                                                                                         ‘Pratham’ would be extended to initiate an
Education                                                             2,700 children                                                                 5,000 children                                     Vigilance Commission. The aim was to help
                                                                                                                                                                                                                                                         education programme in two Districts i.e
                                                                   (Through project CAL)                                                             (Over 3 years)                                     students transform themselves as young
                                                                                                                                                                                                                                                         Nandurbar in Maharashtra & Sagar in Madhya
                                                                                                                                                                                                        champions of ethics.
Water Conservation                                                  Supply to 5 Villages                                                         Supply to 9 villages                                                                                    Pradesh. Through the project we will be
                                                                 (Through project Boond)                                                                                                                In order to emphasize the significance of        reaching out to around 50,000 children in the
                                                                                                                                                                                                        ‘Education is must and a basic need for all      next three years.
Income Generation                                     Enhanced livelihood of 120 Women                                                     Provide livelihood to 300                                    children’, many retail installations have
                                                          through vocational trainings                                                        unemployed youth                                                                                           Providing Healthcare
                                                                                                                                                                                                        conducted programs for tank lorry crew
Imparting Education                                                                                                                                                                                     members with an aim of creating awareness        Creating awareness and providing healthcare
                                                                                                                                                                                                        about the importance of education and            services is one of our social responsbility
Education creates awareness and helps in                                                                                                                                                                encouraging people to educate their children.    thrust areas. Maintaining a healthy
building a secure future which in turn fosters                                                                                                                                                          As a token of communicating this message,        environment is vital for development of
the development of the country. Keeping in                                                                                                                                                              notebooks were provided to all participants      sustainable communities. Various initiatives
mind the indispensable value of education,                                                                                                                                                              who had school-going children.                   such as conducting medical camps, extending
we provide various educational services to                                                                                                                                                                                                               universal heath insurance, providing
our local communities. Donating science                                                                                                                                                                 Project CAL (Computer Aided Learning) was
                                                                                                                                                                                                                                                         monetary aid for treatments and
laboratories, development of infrastructure                                                                                                                                                             initiated in collaboration with NGO ‘Pratham’
                                                                                                                                                                                                                                                         development of health care infrastructure for
for schools, self-entrepreneurship guidance                                                                                                                                                             to impart computer education to around
                                                                                                                                                                                                                                                         community have benefited many
programs, aptitude tests and career guidance                                                                                                                                                            2700 children of Zilla Parishad schools near
                                                                                                                                                                                                                                                         communities around our operations.
programs, imparting computer education and                                                                                                                                                              our Uran LPG plant. The project intended to
                                                                                                     enhancement program. This year, an amount
scholarship programs are some of our
                                                                                                     of `1.4 million was spent for educational
educational initiatives.
                                                                                                     assistance. The needs and requirements of
At Kochi Refinery, considerable social                                                               many neighboring schools were identified and
development has been achieved by extending                                                           schemes were implemented with a focus on
primary education to the villages around.                                                            improving the facilities in Government and
Every year, thousands of poor students                                                               private schools in the state. Kochi Refinery
studying in 17 schools benefit through the                                                           has also undertaken the responsibility of
various schemes of Kochi Refinery, which                                                             setting up a science park to promote scientific
include noon meal assistance, uniform                                                                temper among children in the Ernakulum
donation, scholarships and intelligence                                                              district by joining hands with the SRV School.

26
     BPCL and NRL
27
     This year, we have included contract laborers from operations including security personnel, housekeeping as well as the contract laborers for projects who were involved in construction activities at sites
28
     Includes marketing employees at all marketing SBUs and Refineries
46




     DEVELOPING SUSTAINABLE
     COMMUNITIES


     Tripunithura Taluk Hospital: With over 650                                                            responsibility and in order to fulfill the same     Project Boond
     outpatients and 146 inpatients on an average                                                          we have adopted 37 villages across India.
                                                                                                                                                               Continuing for the fourth year, Project Boond
     being treated everyday, this hospital is one of                                                       This adoption included making substantial
                                                                                                                                                               has been instrumental in developing and
     the most important Government hospitals in                                                            investments in them for nearly a decade and
                                                                                                                                                               providing access to waters sources in many
     the district and lacked infrastructure facilities                                                     a half to make them completely self reliant,
                                                                                                                                                               villages. The project included cordoning of
     such as operation theatres and surgical                                                               providing them with access to fresh drinking
                                                                                                                                                               natural springs, roof top harvesting, de-silting
     equipment to keep pace with the growing                                                               water, sanitation facilities, medical facilities,
                                                                                                                                                               of ponds, stone pitching, repair of wells,
     medical requirement of people.                                                                        rehabilitation, enhancing their income
                                                                                                                                                               excavation of new wells and construction of
                                                                                                           standards by imparting vocational training,
     BPCL extended financial assistance for                                                                                                                    KT bund walls with vents. This year Project
                                                                                                           agricultural innovations and providing
     constructing an operation theatre and labor                                                                                                               Boond IV was successfully completed in 3
                                                                                                           electricity.
     room at Tripunithra Hospital at a cost of                                                                                                                 villages near Kasagra Ghat as well as 2 in
                                                         benefited 384 patients, wherein medical
     ` 2.5l million. Following the construction,                                                           Adoption of SC Colonies in Kochi                    Bharatpur. Our vision for the next five years
                                                         consultation and free medicines were
     modern medical equipment worth ` 0.6                                                                                                                      would be to transform 150 villages from
                                                         provided. Also a medical camp conducted at        Following the success of adopting Scheduled
     million was also donated to the Taluk                                                                                                                     “Water Scarce to Water Positive”
                                                         the Narayan Acharya School, Mahul                 Caste Colonies, in 1994 six Harijan colonies
     Hospital. In 2003, we had equipped the
                                                         benefited 564 children. BPCL Servant colony       of Vadavucode Puthencruz Panchayat and              Arresting salinity in Periyar river
     hospital to store blood and the unit was
                                                         at Balwadi which is run by Mobile crèche          Tripunithura Municipality were adopted. An
     donated as well. Since then, the facility has                                                                                                             High salinity in the lower reaches of Periyar
                                                         provides daily nutrition and care to 35           integrated sanitation package was extended
     been of critical help especially in emergency                                                                                                             River, the life line of Kerala, is a perennial
                                                         children. In addition to all these initiatives,   to the colonies. Systems for disposal of waste
     cases.                                                                                                                                                    problem. Kochi refinery provided funds for
                                                         counseling on prevention and control of           water and solid waste were set up. More
                                                                                                                                                               setting up two Bridge and
     In association with ML Dhawale Trust,               HIV/AIDS was given for a total of 1,000 truck     efficient pressure cookers were also donated.
                                                                                                                                                               Lock-cum-regulators across Periyar River at
     Medicare is provided for patients in Mahul.         drivers, lorry crew and cleaners.                                                                     Manjummel and Pathalam. This initiative will
     On an average 300 patients are benefited
                                                         Building Community Infrastructure                                                                     help in arresting the salinity ingress and
     every month through this initiative. We also
                                                                                                                                                               ensure adequate availability of water during
     provided financial assistance towards cataract      A substantial portion of the geographical area
                                                                                                                                                               lean periods. The initiative is being
     surgery for 15 cataract patients. In order to       in our country comprises of villages. These
                                                                                                                                                               implemented with a total cost of ` 175
     create awareness among villagers, talks on          villagers face a number of difficulties ranging
                                                                                                                                                               million which would benefit all people of
     various health issues like parenting, marital       from lack of infrastructure, medical facilities
                                                                                                                                                               Kochi city and suburbs, farmers of rural
     issues, and addiction are given by expert           and access to basic amenities to inefficient
                                                                                                                                                               Ernakulam and all small and large industries in
     doctors at our community centre. The                means of transportation. Responding to the
                                                                                                                                                               the District.
     medical camp conducted at Washala                   needs of the villagers is our corporate
                                                                                                                                                                                                                  47




Restoring Thannerchal lake                         Legislation for Industries. The main aim of this   Tree Plantation                                        Capacity building for NGOs
                                                   workshop was to create awareness among
Kochi Refinery along with Thiruvankulam                                                               By partnering with communities, NGO’s and              For the first time a Capacity Building Session of
                                                   industries on the importance of
Panchayat has initiated the revival of the lake                                                       our business associates we have conducted              NGO partners working on water conservation
                                                   environmental legislation in the contemporary
by removing waste, weeds, vegetation,                                                                 tree plantation drives at various locations. We        with BPCL was organized in Chennai on 12 &
                                                   world and contribute to the overall
de-silting and construction of earthen bunds.                                                         also conduct tree plantation drives on special         13th November 2009. A field visit near Chennai
                                                   development of the society and economy.
After the completion of the project, the lake                                                         events like World Environment Day to                   was also organized to see the completed work of
covering 10 acres shall serve as natural           Flamingo Festival                                  communicate the significance of trees in our           Dhan Foundation (our NGO partner) and also
resource of water and will result in raising the
                                                   BPCL sponsored the much publicized
                                                                                                      ecosystem.                                             interact with villagers on their participation,
water table of surrounding areas. The project
                                                   Flamingo Festival which was organized by                                                                  contribution and ownership after exit.
is also envisaged as an eco tourism initiative
                                                   Bombay Natural History Society (BNHS).
which would help tourists to understand the
                                                   Thousands of bird lovers and general public
importance of revival and maintenance of our
                                                   made a beeline to the jetty all through the
natural resources.
                                                   afternoon where over 15,000 Greater
Creating water supply schemes                      Flamingos and about two dozen other
                                                   waders on the mud-flats near Sewri Jetty
Our Numaligarh refinery has worked
                                                   provided a mesmerizing sight that charmed
towards improving the availability of drinking
                                                   Mumbaikars, young and old.
water in nearby villages. These schemes have
benefited many villages with better access to
water sources.
Conserving Environment
We are reliant for survival on the
environment; and hence, conserving the                                                                Sammohik Rasoi Ghar (community kitchen)
environment is of significant importance for a
sustainable future.                                                                                   Community kitchens are safe, effective, environment friendly and offer a unique convenience to villagers.
                                                                                                      Keeping all these objectives in sight, BPCL along with other OMCs has taken a proactive lead to
In association with the Kerala State Pollution                                                        establish community kitchens, Necessary grants were secured by Government of India during the year.
Board and National Safety Council, BPCL                                                               We intend to pilot the initiative in the eastern regions of Raiganj, Kolkata, Khurda and Durgapur.
Kochi Refinery Learning Centre organized a
one day workshop on Environmental                                                                     Goa LPG Territory took a small step towards a greener environment by converting the Holy Family
                                                                                                      Convent at Sancaole from wood fuel to LPG where the institute was facing difficulties while cooking.
48




     ASSURANCE STATEMENT



                                                                                                                                                                                     principles of Inclusivity, Materiality and Responsiveness, as outlined in AA1000AS (2008), and GRI 2006 (GRI G3)
                                                                                                                                                                                     guidelines were used as criteria against which to evaluate the Report.

                                                                                                                                                                                     OUR APPROACH
                                                                                                                                                                                     In order to form our conclusions we undertook the following key steps:
                                                                                                                                                       Ernst & Young Pvt. Ltd.       1. Reviewed the Company’s approach to stakeholder engagement and processes for determining material issues
                                                                                                                                                       3rd Floor, Block ‘C’
                                                                                                                                                       22 Camac Street
                                                                                                                                                                                         through interviews and review of relevant documents with issue owners at the corporate office and at the
                                                                                                                                                       Kolkata-700016, India             following 15 sites across the Strategic Business Units (SBUs) mentioned : Mumbai (Mahul), Kochi, Numaligarh
                                                                                                                                                       Tel: +91 33 6615 3400             (Refineries), Chennai (Aviation), Bijwasan, Mathura, Panipat (Retail), Tondiarpet (Retail and Lube), Budge-Budge
                                                                                                                                                       Fax: +91 33 2281 7750
                                                                                                                                                       www.ey.com/india
                                                                                                                                                                                         (Retail and Lube), Cherlapally (Retail and LPG), Pune (LPG), and Wadi (Lubes).
                                                                                                                                                                                     2. Interviewed select key senior personnel of the Company to understand the current processes in place for
                                                                                                                                                                                         capturing sustainability performance data as per GRI G3 and corporate guidelines, and the progress made
                                                                   Independent Assurance Statement                                                                                       during the reporting period.
                                                                                                                                                                                     3. Reviewed processes and supporting evidence for collecting, compiling, and reporting select indicators at the
                                                                                                                                                                                         corporate and site levels.
         The Management and Board of Directors                                                                                                                                       4. Interviewed the Company’s select stakeholders including middle and junior management, union leaders,
         Bharat Petroleum Corporation Limited                                                                                                                                            dealers, transporters, tank lorry drivers, distributors, contractors, security personnel, NGOs and communities.
         Mumbai, India.                                                                                                                                                              5. Reviewed the local systems and processes in place for managing and reporting on the Company’s sustainability
                                                                                                                                                                                         activities at the 15 sample sites visited. Information pertaining to workforce, training, safety and selected claims
                                                                                                                                                                                         made in the Report was reviewed centrally at the Corporate Office.
         OUR ENGAGEMENT
         Ernst & Young Pvt. Ltd. (EY) was retained by Bharat Petroleum Corporation Limited (the Company) to provide an                                                               SCOPE AND LIMITATIONS
         independent assurance on its Sustainable Development Report for the financial year 2009-10. The Company’s                                                                   The scope of the assurance covers sites and indicators considered relevant to the Company and include:
         management is responsible for engagement with stakeholders, identification of key issues and the collection and
         presentation of the information contained in the report. EY’s responsibility, as agreed with the management of the                                                             March 2010;
         Company, is to provide independent assurance on the report content as described in the level of assurance and
         confirming the GRI application level. Our responsibility in performing our assurance activities is to the management                                                           sustainability performance data;
         of the Company only and in accordance with the terms of reference agreed with the Company. We do not
         therefore accept or assume any responsibility for any other purpose or to any other person or organization. Any                                                                management, workforce, safety, security, community initiatives and training and covering six Strategic Business
         dependence that any such third party may place on the Report is entirely at its own risk. The assurance report                                                                 Units (SBUs) namely, Refineries, Aviation, Industrial & Commercial, LPG, Lubes and Retail.
         should not be taken as a basis for interpreting the Company’s overall performance, except for the aspects
         mentioned in the scope below.                                                                                                                                                  SBUs.

         ASSURANCE STANDARD AND LEVEL                                                                                                                                                Exclusions
                                                                                          A
         Our assurance engagement was planned and performed in accordance with ISAE 3000 and to meet the                                                                             The assurance scope excludes:
                                                                                                  B
         requirements of a Type 2 moderate level assurance engagement as defined by AA1000AS(2008) . The assurance



     A
     International Federation of Accountants’ International Standard for Assurance Engagements Other than Audits or Reviews of Historical Financial Information; Limited assurance
     B
     AA1000AS (2008) – The second edition of the AA1000 assurance standard from the Institute of Social and Ethical Accountability.
                                                                                       49




OUR CONCLUSIONS




                                                 OUR ASSURANCE TEAM AND INDEPENDENCE




                                                 for Ernst & Young Private Limited




OBSERVATIONS AND OPPORTUNITIES FOR IMPROVEMENT
50




     CONTENT INDEX

           Standard                                       Extent of   Page             Supplementary                           3.4    Contact point for questions regarding the            Full   55               -
           disclosure                                     Reporting   number           explanation                                    report or its contents.
     1.    Strategy and Analysis                                                                                               3.5    Process for defining report content.                 Full   13, 14, 15, 16   -
     1.1   Statement from the most senior                 Full        4, 5             -                                       3.6    Boundary of the report (e.g., countries,             Full   3                -
           decision-maker of the organization                                                                                         divisions, subsidiaries, leased facilities,
     1.2   Description of key impacts, risks,             Full        13, 15, 16, 19                                                  joint ventures, suppliers). See GRI
           and opportunities.                                                                                                         Boundary Protocol for further guidance.
     2.    Organizational Profile                                                                                              3.7    State any specific limitations on the scope          Full   3                Specific limitations (if any) pertaining to
                                                                                                                                      or boundary of the report                                                    the performance indicators reported
     2.1   Name of the organization.                      Full        Cover page       -                                              (see completeness principle for                                              have been detailed in the individual sections.
     2.2   Primary brands, products, and/or               Full        9, 10            -                                              explanation of scope).
           services.                                                                                                           3.8    Basis for reporting on joint ventures, subsidiaries, Full   3                -
     2.3   Operational structure of the                   Full        10               -                                              leased facilities, outsourced operations, and
           organization, including main divisions,                                                                                    other entities that can significantly affect
           operating companies, subsidiaries,                                                                                         comparability from period to period and/or
           and joint ventures.                                                                                                        between organizations.
     2.4   Location of organization's headquarters.       Full        Back cover page -                                        3.9    Data measurement techniques and the bases            Full   3                Relevant explanations have been provided
     2.5   Number of countries where the                  Full        3                -                                              of calculations, including assumptions and                                   in the individual sections, where necessary.
           organization operates, and names of                                                                                        techniques underlying estimations applied to
           countries with either major operations                                                                                     the compilation of the Indicators and other
           or that are specifically relevant to the                                                                                   information in the report. Explain any decisions
           sustainability issues covered in the report.                                                                               not to apply, or to substantially diverge from,
                                                                                                                                      the GRI Indicator Protocols.
     2.6   Nature of ownership and legal form.            Full        9                -
                                                                                                                               3.10 Explanation of the effect of any re-statements of Full        3                Relevant explanations have been provided
     2.7   Markets served (including geographic           Full        -                Please refer our Annual Report
                                                                                                                                    information provided in earlier reports, and the                               in the individual sections, where necessary.
           breakdown, sectors served, and types                                        2009-10 page no. 36 and 45.
                                                                                                                                    reasons for such re-statement (e.g., mergers/
           of customers/beneficiaries).
                                                                                                                                    acquisitions, change of base years/periods,
     2.8   Scale of the reporting organization.           Full        9, 10            For additional information refer page        nature of business, measurement methods).
                                                                                       no. 15, 16, 17, 18 and 19 of 2009-10
                                                                                                                               3.11 Significant changes from previous reporting            Full   3                Relevant explanations for changes in
                                                                                       annual report
                                                                                                                                    periods in the scope, boundary, or                                             measurements methods have been
     2.9   Significant changes during the reporting       Full        3A               new SBU for Gas has been formed              measurement methods applied in the report.                                     included in the report, where necessary.
           period regarding size, structure,                                           in the reporting year                                                                                                       http://www.bharatpetroleum.in/sustainability/
           or ownership.
                                                                                                                               3.13 Policy and current practice with regard to             Full   3                -
     2.10 Awards received in the reporting period.        Full        11               -                                            seeking external assurance for the report.
     3. Report Parameters                                                                                                      4. Governance, Commitments, and Engagement
     3.1   Reporting period (e.g., fiscal/calendar        Full        3                -                                       4.1    Governance structure of the organization, Full              19               -
           year) for information provided.                                                                                            including committees under the highest
     3.2   Date of most recent previous report            Full        3                -                                              governance body responsible for specific
           (if any).                                                                                                                  tasks, such as setting strategy or
                                                                                                                                      organizational oversight.
     3.3   Reporting cycle (annual, biennial, etc.)       Full        3                -
                                                                                                                                                                                                                                51




4.2   Indicate whether the Chair of the highest Full      19   Please refer our Annual Report               4.12 Externally developed economic,                  Full   19           -
      governance body is also an executive officer.            2009-10 for additional information.               environmental, and social charters, principles,
4.3   For organizations that have a unitary board Full    19   -                                                 or other initiatives to which the organization
      structure, state the number of members of                                                                  subscribes or endorses.
      the highest governance body that are                                                                  4.13 Memberships in associations (such as          Full     19           -
      independent and/or non-executive members.                                                                  industry associations) and/or
4.4   Mechanisms for shareholders and              Full   19   Please refer our previous sustainability          national/international advocacy organizations
      employees to provide recommendations                     report (2008-09) for comprehensive                in which the organization: * Has positions in
      or direction to the highest governance body.             information on our stakeholder engagement.        governance bodies; * Participates in projects
                                                                                                                 or committees; * Provides substantive
4.5   Linkage between compensation for                                                                           funding beyond routine membership dues;
      members of the highest governance body,                                                                    or * Views membership as strategic.
      senior managers, and executives (including
      departure arrangements), and the             Full   19   Please refer our Annual Report               4.14 List of stakeholder groups engaged by the Full         14           -
      organization's performance (including social             2009-10 for additional information.               organization.
      and environmental performance).                                                                       4.15 Basis for identification and selection of       Full   14           Please refer our previous sustainability
4.6   Processes in place for the highest           Full   19   Please refer our Annual Report                    stakeholders with whom to engage.                                   report (2008-09) for comprehensive
      governance body to ensure conflicts of                   2009-10 page no. 61 and 62 for                                                                                        information on our stakeholder
      interest are avoided.                                    additional information.                                                                                               engagement.
4.7   Process for determining the qualifications Full     19   Please refer our Annual Report               4.16 Approaches to stakeholder engagement, Full             14           Please refer our previous sustainability
      and expertise of the members of the highest              2009-10 for additional information.               including frequency of engagement by type                           report (2008-09) for comprehensive
      governance body for guiding the                                                                            and by stakeholder group.                                           information on our stakeholder
      organization's strategy on economic,                                                                                                                                           engagement.
      environmental, and social topics.                                                                     4.17 Key topics and concerns that have been          Full   14           -
4.8   Internally developed statements of mission Full     19   Please refer our corporate website                raised through stakeholder engagement,
      or values, codes of conduct, and principles              www.bharatpetroleum.in for                        and how the organization has responded
      relevant to economic, environmental,                     additional information.                           to those key topics and concerns,
      and social performance and the status of                                                                   including through its reporting.
      their implementation.                                                                                 DMA Disclosure on Management                         Full   21           -
4.9   Procedures of the highest governance body Full      19   -                                            EC Approach – EC
      for overseeing the organization's identification                                                      DMA Disclosure on Management                         Full   25, 29, 33   -
      and management of economic, environmental,                                                            EN Approach – EN
       and social performance, including relevant                                                           DMA Disclosure on Management                         Full   37, 41       -
      risks and opportunities, and adherence or                                                             LA  Approach – LA
      compliance with internationally agreed
      standards, codes of conduct, and principles.                                                          DMA Disclosure on Management                         Full   22, 37, 41   -
                                                                                                            HR Approach – HR
4.10 Processes for evaluating the highest          Full   19   -
     governance body's own performance,                                                                     DMA Disclosure on Management                         Full   19, 45       -
     particularly with respect to economic,                                                                 SO Approach – SO
     environmental, and social performance.                                                                 DMA Disclosure on Management                         Full   42           -
4.11 Explanation of whether and how the            Full   19   Precautionary principle aspects are          HR Approach – PR
     precautionary approach or principle is                    implicit in our governance framework.
     addressed by the organization.
52




     Report section                                                       GRI                                   API/IPIECA                                  Extent of   Supplementary Explanation
                                                      Core                      Additional           Core                Additional           Page number   Reporting
     Performing for a purpose                         EC 1, EC 3, EC 4,                              ECO 1, ECO 2,          ECO A2, ECO A3,   21, 22, 23    Full
                                                      EC 6, EC 8                                     ECO 3                  SOC A4,
     Managing energy efficiently                      EC 2                                                                                    29, 30, 31    Full
     Nurturing people, fostering talent               EC 7                                                                                    37            Full
     Responsible governance                           EN 28                                                                                   19            Full
     Performing for a purpose                         EN 30                                          ENV 6                                    23            Full
     Consuming resources responsibly                  EN 1, EN 2, EN 22,                             ENV 1                  ENV A1, ENV A3,   25, 26, 27    Full
                                                      EN 23, EN 27                                                          ENV A4, ENV A5
     Managing energy efficiently                      EN 3, EN 4, EN 16,        EN 5, EN 7, EN 18,   ENV 3, ENV 4, ENV 5 ENV A6, ENV A8       29, 30, 31    Full        EN17: We are augmenting capacities to monitor other
                                                      EN 17, EN 26              EN 19, EN 20                                                                            relevant GHG emissions. Other GHG emissions are not
                                                                                                                                                                        reported for 2009-10.
     Conserving water                                 EN 8, EN 11, EN 12,       EN 10                ENV 2, ENV A9          ENV A2, ENV A7    33, 34, 35    Full
                                                      EN 21
     Responsible governance                           LA 13                                                                                   19            Full        Please refer page no. 52-55 of our Annual Report
                                                                                                                                                                        2009-10 for additional information.
     Performing for a purpose                         LA 3                                                                                    21, 22        Full
     Nurturing people, fostering talent               LA 1, LA 2, LA 4, LA 5, LA 11, LA 12           SOC 5, SOC 6           SOC A2            37, 38, 39    Full        LA 4: (Partial) Information on percentage of employees
                                                      LA 10, LA 14                                                                                                      covered under collective bargaining agreements is
                                                                                                                                                                        currently unavailable.
     Ensuring safety and security, promoting health   LA 7, LA 8                LA 6, LA 9           H&S 1, H&S 2, H&S 3,                     41, 42, 43    Full
                                                                                                     H&S 4
     Developing sustainable communities               LA8                                                                                     45, 46        Full
     Responsible governance                           PR 6, PR 9                PR 4, PR 7                                                    19            Full        PR6: All marketing communication related to our
                                                                                                                                                                        products and services adhere to ASCI voluntary
                                                                                                                                                                        standards on marketing and communications
     Ensuring safety and security, promoting health   PR 1, PR 3                PR 2, PR 5           H&S 5                                    41, 42, 43    Full
     Responsible governance                           SO 2, SO 3, SO 4,                              SOC 2                  SOC A1            19            Full
                                                      SO 5, SO 7, SO 8
     Developing sustainable communities               SO 1                                           SOC 8                  SOC A5            45, 46, 47    Full
     Performing for a purpose                         HR 1, HR 2                                                                              21, 22, 23    Full        HR2: (Partial) Information on percentage of significant
                                                                                                                                                                        suppliers and contractors that have undergone screening
                                                                                                                                                                        on human rights and action taken is currently not available
     Nurturing people, fostering talent               HR 4, HR 5, HR 6,                              SOC 1, SOC 7           SOC A3            37, 38, 39    Full
                                                      HR 7
     Ensuring safety and security, promoting health                             HR 3,HR 8            SOC 9                                    41, 42, 43    Full

     Our 2009-10 Annual Report can be accessed from our website: www.bharatpetroleum.in
     Our 2008-09 Sustainability Report can be accessed from our website: www.bharatpetroleum.in
                                                                                                                                                                                                                53




                                                                                                          GLOSSARY

AIDS       Acquired Immunodeficiency Syndrome       COCO       Company-owned company-operated             IPIECA   International Petroleum Industry           OBC      Other Backward Classes
ASCI       Advertising Standards Council of India   CEM        Continuous emissions monitoring                     Environmental Conservation Association
                                                                                                                                                              ODS      Ozone Depleting Substance
API        American Petroleum Institute             DoPT       Department of Personnel and Training       IISc     Indian Institute of Science
                                                                                                                                                              OMCs     Oil Manufacturing Companies
ABCI       Association of Business Communicators    DGM        Deputy General Manager                     IIT      Indian Institute of Technology
                                                                                                                                                              PCVO     Professional Commercial Vehicle Owners
           of India                                                                                       ISB      Indian School of Business
                                                    ED         Executive Director                                                                             PMO      Prime Minister’s Office
ASSOCHAM Associated Chambers of Commerce and                                                              JV       Joint Venture
                                                    ESE Cell   Employee Satisfaction Enhancement Cell                                                         PBT      Profit Before Tax
         Industry of India
                                                    ERP        Enterprise Resource Planning               KR       Kochi Refinery
                                                                                                                                                              P&L      Profit and Loss
BARC       Bhabha Atomic Research Center
                                                    EBMS       Ethanol Blended Motor Spirit               LNG      Liquefied Natural Gas
                                                                                                                                                              PSU      Public Sector Undertaking
BPCL       Bharat Petroleum Corporation Limited
                                                    E&P        Exploration and Production                 LPG      Liquefied Petroleum Gas
                                                                                                                                                              PFS      Pure For Sure
BROMA      Bharat Petroleum Retail Outlet
                                                    FY         Financial Year                             LTAs     Lost-Time Accidents
           Maintenance Application                                                                                                                            PPE      Personal Protective Equipment
                                                    FICCI      Federation of Indian Chambers of           MW       Megawatt
BREL       Bharat Renewable Energy Limited                                                                                                                    R&D      Research and Development
                                                               Commerce and Industry                      MBTU     Million British Thermal Units
BS         Bharat Stage                                                                                                                                       ROs      Retail Outlets
                                                    GJ         Giga Joules                                MR       Mumbai Refinery
BAIF       Bharatiya Agro Industries Foundation                                                                                                               RBNQA    Ramakrishna Bajaj National Quality
                                                    GPS        Global Positioning System                  MoU      Memorandum of Understanding                         Award
BSC        British Safety Council
                                                    GoI        Government of India                        MDG      Milennium Development Goals                RLNG     Re-gasified Liquified Natural Gas
BIS        Bureau of Indian Standards
                                                    GATs       Graduate Apprentice Trainees               MMT      Million Metric Tons                        RWH      Rainwater Harvesting
BBL        Barrel
                                                    GHG        Greenhouse Gases                           MoP&NG   Ministry of Petroleum and Natural Gas      SCO      Supply Chain Optimization
BCCI       Bombay Chamber of Commerce and
           Industry                                 GDP        Gross Domestic Product                     MS       Motor Spirit                               SEBI     Securities and Exchange Board of India
BNHS       Bombay Natural History Society           GRI        Global Reporting Initiative                NACE     National Association of Corrosion          SEZ      Special Economic Zone
                                                    HSSE       Health, Safety, Security and Environment            Engineers
CAG        Comptroller and Audit General                                                                                                                      SBU      Strategic Business Unit
                                                    HSD        Hi-Speed Diesel                            NRMB     Natural Rubber Modified Bitumen
CISF       Central Industrial Security Force                                                                                                                  SDCV     Small Distance Commercial Vehicle
                                                    HIV        Human Immunodeficiency virus               NABL     National Accreditation Board for Testing
CAL        Computer Aided Learning                                                                                                                            TERI     The Energy and Resources Institute
                                                                                                                   and Calibration Laboratories
CVC        Central Vigilance Commission             HRS        Human Resource Services                                                                        TMT      Thousand Metric Tons
                                                                                                          NGOs     Non-government organizations
C&MD       Chairman and Managing Director           HR         Human Resources                                                                                TII      Transparency International India
                                                                                                          NRL      Numaligarh Refinery Limited
CFO        Chief Finance Officer                    HRD        Human Resources Department                                                                     UNFCCC   United Nations Framework Convention
                                                                                                          NSC      National Safety Council
                                                    INR        Indian Rupees                                                                                           on Climate Change
CVO        Chief Vigilance Officer
                                                                                                          OHSAS    Occupational Health and Safety
CDM        Clean Development Mechanism              I&C        Industrial and Commercial                           Assessment Series
CNG        Compressed Natural Gas                   IT         Information Technology                     OGCF     Oil and Gas Conservation Fortnight
CSR        Corporate Social Responsibility          IMC        Indian Merchant’s Chamber                  OISD     Oil India Safety Directorate
CII        Confederation of Indian Industry         IPP        Integrity Pact Program                     OIDB     Oil Industry Development Board
CPO        Central Procurement Organization         ISO        International Organization for             OSTS     One Stop Trucker-cum-Tourist Shop
                                                               Standardization
54




     EPILOGUE




                ‘Building a Sustainable Future’ is our fourth report sharing BPCL’s sustainable development performance for 22009-10. We are proud indeed to
                report that the assurance providers for this report have accredited A+ rating acknowledging the fact that the reporting is at highest application level
                                                                                                                           h
                of GRI 2006 (GRI G3) guidelines. This is the third consequent year reporting with A+ rating by independent assurance provider.
                During the year, locations were fully engaged in the areas of workplace health, safety, security and environment at the respective workplaces
                involved in refining, storage & distribution and marketing where neighbouring communities and stake holders are benefited. The fulfilling support
                and timely interventions from Management was encouraging and inspiring throughout the year. The sustainable development in BPCL has thus
                become co-created reality over the years.
                This year we have released a hand book on rainwater harvesting to disseminate knowledge and best practices on the topic. This provided the
                much needed impetus at many of our locations to replicate the best practices in rainwater harvesting. This year we have made efforts to adopt a
                focused dialogue process with select employees and stakeholders on our sustainable development agenda. The insights from these engagement
                sessions have helped us in prioritizing the material issues. We aim to expand the stakeholder engagement on our sustainable development agenda
                to include inputs from all our stakeholders as brought out by our assurance providers.
                With corporate focus on sustainable development year-on-year, we have build a clear road map for building a sustainable future for us. We are
                proud of our achievements and strive to enhance and seize new opportunities in the area of sustainable development.


                Mr. D K Mane
                Head – HSSE
                                                                                                                                                   55




                                                SHARE YOUR FEEDBACK




In our journey towards sustainable development, we greatly value the feedback from our stakeholders, which would go a long way in improving the
reporting process and information disclosure. We encourage you to provide your valuable feedback on “Building a Sustainable Future”, our 2009-10
Sustainable Development Report.

Please send in your comments to:

Mr. J.S.Bhatia
Senior Manager (Carbon Capture)

Email: bhatiajs@bharatpetroleum.in
 Chairman's Office
 Bharat Bhavan,
 4 and 6 Currimbhoy Road,
 Ballard Estate,
 Mumbai 400001,
 India
 Tel No.: +91-22-22713000, +91-22-22714000




http://www.bharatpetroleum.in

				
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