Materiality Determination Process

Thermax Materiality Matrix

Material Issues Measures Linked KPIs*
Product performance

Ensuring equipment reliability

Ensuring product performance

Product safety

Diversifying and scaling businesses

Cumulative no. of equipment with remote monitoring functionality
Design upgradation and improvement

New designs/products launched

Focus on research and innovation

Number of products launched

Number of patents applied and granted

Number of trademarks registered

SDGs Impacted

Material Issues Measures Linked KPIs*
Waste management
For customers:

Adoption of a new technology for waste management

For Thermax:

Converting waste to value

Creating awareness through Thermax Cares initiatives such as conducting monthly webinars on plastic waste disposal and e-waste

Hazardous waste

Non-hazardous waste

% of waste converted as value

Number of awareness events organised

Climate change related risks

Charting a decarbonisation roadmap

For customers:

Environment-friendly vapour absorption cooling

For Thermax:

Capex on carbon footprint reduction related projects

Measuring GHG emissions

Carbon dioxide emission equivalent savings from various initiatives

Energy management
For customers:

Introducing new energy management solutions

Diversifying and expanding renewable energy portfolio

For Thermax:

Energy mapping and efficiency

Increasing renewable energy capacity at the premises

Renewable and non-renewable

Energy savings from various initiatives

Water management
For customers:

New product/technologies developed

For Thermax:

Water conservation initiatives

Monitoring water consumption of domestic plants

Water recycling and zero liquid discharge initiatives

No. of new product launches by the Water and Waste Solutions business

No. of zero liquid discharge (ZLD) installations within the Company’s own facilities

Water consumption at all domestic plants

Recycled water

Rainwater harvested

Emission management
For customers:

Emission management technologies

For Thermax:

Environmental compliance at all plants

For customers:

Air treated through air pollution control system

For Thermax:

Measurement of non-carbon emission data PM, NOx, SOx, VOCs

SDGs Impacted

Material Issues Measures Linked KPIs*
Compliance and integrity

Adherence to the standards prescribed by certification bodies

Diversity and inclusion of the Board

% of gender diversity in the Board
Material Issues Measures Linked KPIs*
Local employment

Promoting local employments around our plant area(s)

Greater than 80% local employment
Community engagement

Initiatives under Social Compact

Thermax Foundation activities

No. of families directly benefitted through CSR around our manufacturing facilities

No. of student beneficiaries of The School Project

Occupation, health, safety and emergency preparedness

Ensuring safety measures to achieve zero harm

Awareness campaigns for health and safety

Pursuing excellence in safety processes

Lost time injury frequency rate (LTIFR)


Total recordable incident rate (TRIR)

HSE training records

No. of OHS audits/ inspections

Talent acquisition and retention

Flexible working policy

Talent mobility

Training for people development

Creating inclusive workplace to attract and retain diverse talent

No. of training man-hours

Investment in training and development initiatives

Regrettable attrition rate

Protection of human rights


Code of conduct for employees and vendors

No. of whistleblower complaints resolved

No. of anti-social harassment act complaints received and resolved

Training / declaration of compliance from employees

Responsible supply chain management

Vendor connect portal to ensure that the vendor fulfils the sustainability criteria

Ensuring that all vendors sign the Thermax vendor code of conduct

No. of suppliers trained on sustainability

37% of material sustainably sourced

SDGs Impacted