ACC operates in a dynamic environment where evolving risks can influence strategic objectives. To address these, the Company has established a robust Enterprise Risk Management framework and strong internal controls to identify, assess and mitigate risks. Emphasis remains on transparent communication, independent third-party reviews and consistent stakeholder engagement to reinforce governance and resilience.
To ensure comprehensive risk analysis, the framework incorporates transaction evaluation, process implementation, and regular review and monitoring of key risk indicators. The Company adopts a structured approach to identifying risks and opportunities, with each function assessing its own operations independently.
The risk management framework integrates risk mapping, environmental scanning and comprehensive assessments. The Company fosters a 'risk-aware' culture supported by a standardised framework that promotes a common risk language across the organisation. This approach enables proactive identification, assessment and management of risks, ensuring preparedness ahead of emerging challenges. Simultaneously, individual departments periodically review current and future operational scopes to identify function-specific risks and opportunities and implement appropriate mitigation measures. These assessments are consolidated to provide an organisation-wide risk overview. Robust mitigation plans are developed for critical risks and closely monitored by senior management. Stringent controls across operations ensure regulatory compliance and effective business functioning.
Enterprise Risk Management (ERM) provides a structured and objective approach to risk assessment and management. Supported by various stakeholders, the ERM framework enables comprehensive identification, evaluation, prioritisation, mitigation, monitoring and reporting of critical risks. With support from key stakeholders, risks are proactively identified, evaluated and mitigated.
The Company has a structured process to identify and assess risks across operations, evaluating their likelihood and impact and prioritising them based on overall significance to ensure effective risk management.
Following risk identification and assessment, the Company develops comprehensive mitigation strategies. These include the implementation of effective controls, procedures and policies to reduce both the likelihood and impact of identified risks.
The Company maintains a robust system for monitoring and reporting risks, enabling the timely identification of emerging threats and the evaluation of existing mitigation measures. Regular updates on risk profiles, mitigation actions and changes in risk exposure are presented to the Board and senior management.
ACC implements key control mechanisms, adheres to relevant guidelines, and institutionalises consistent and sound practices. This approach fosters sound governance and enhanced operational efficiency.
ACC adopts a comprehensive approach to managing internal and external risks. This includes a robust risk assessment process, through which the management is empowered to identify, evaluate and mitigate risks while ensuring regulatory compliance and operational efficiency. A strong risk governance framework further enables informed and strategic responses based on risk ratings. Quarterly reporting to the Risk Management Committee, led by the CEO and CFO, ensures transparency and accountability.
The Company adopts both top-down and bottom-up approaches to risk assessment. The Risk Management Committee oversees the ERM process, maintaining its adequacy and monitoring mitigation progress. ACC maintains a clear and focused approach to addressing risks and implementing actionable solutions, thereby strengthening its ability to adapt, safeguard the business and support sustainable growth.
The Risk Management Committee (RMC), comprising 50% Independent Directors, operates within a comprehensive risk management framework to monitor, report on and mitigate the risks faced by the Company. In line with the SEBI Listing Regulations, the RMC reviews risk governance structures, assessments, policies and practices and supports its responsibilities with the assistance of four subcommittees.
This subcommittee supports the RMC in reviewing risks related to the Company's commodity price exposures, while promoting risk awareness and adherence to the Code of Conduct. It formulates and periodically reviews the Commodity Price Risk Management (CPRM) in line with prevailing market conditions.
Supports the RMC in reviewing the Company's legal, tax and regulatory matters while overseeing tax and other regulatory compliance programmes.
It supports the RMC in reviewing risks related to the Company's reputation, while fostering a culture of risk awareness and upholding high standards of conduct. The sub-committee also evaluates and addresses specific issues, potential conflicts of interest and other reputation-related risks reported to the committee.
Assists the RMC in evaluating the Company's acquisition strategy, reviewing proposed mergers, acquisitions, investments and divestments, and assessing the robustness of the due diligence process.
Definition
The Indian cement market is evolving rapidly, with consolidations and ongoing capacity additions increasing competitive pressure on market share and profitability.
Mitigating Factors
To mitigate this risk, ACC is focusing on capacity expansion, thereby strengthening its market position across India. In addition, the Company is enhancing its brand equity through innovation and digitalisation to remain competitive and profitable.
Material Topics Impacted
Definition
Regulatory requirements are evolving rapidly across countries in response to climate and environmental concerns. Non-compliance with these new standards introduces significant complexity, with potential reputational and financial consequences. Addressing these challenges necessitates transformation, which entails upgrading and modifying strategies, which can often involve substantial costs.
Mitigating Factors
The Company is investing in various initiatives across its operations to lower carbon emissions and comply with the new emission standards for dust, SOx and NOx, as mandated by the Ministry of Environment, Forest and Climate Change (MoEF&CC). These initiatives help ensure compliance with environmental regulations and minimise any adverse impact.
Material Topics Impacted
Definition
The cement industry is capital-intensive and heavily reliant on energy and resources (like limestone, fly ash and coal), which constitute a significant portion of operating costs. Consequently, effective cost management and efficiency improvements are critical to the industry's sustainability and competitiveness.
Mitigating Factors
ACC prioritises long-term supply agreements to ensure business continuity by optimising its fuel mix, enhancing plant efficiency, and increasing the use of alternative fuels such as WHRS and solar energy, while also ensuring reliable fly ash availability through long-term sourcing agreements.
Material Topics Impacted
Definition
Cybersecurity is of utmost importance within the organisation. ACC continuously identifies and mitigates potential data leakages that could threaten its information systems. Simultaneously, measures are being implemented to establish a secure and monitored environment for the use of AI tools and solutions. As the digital landscape evolves nationally and globally, ACC recognises the need for the construction sector to adapt, driving the development of more efficient and effective solutions.
Mitigating Factors
ACC operates within a secure environment, supported by advanced cybersecurity solutions and air-gapped, cyber-safe backup procedures to protect critical systems. Regular upgrades, patching, policy reviews and user awareness programmes strengthen resilience across networks, cloud infrastructure, data centres, business applications and cybersecurity frameworks.
Material Topics Impacted
Definition
Health and safety are fundamental to how ACC operates, requiring a multidisciplinary, collaborative approach, with a strong commitment from all stakeholders across every level of the organisation.
Mitigating Factors
ACC continuously reviews systems and processes to enhance frontline safety. Initiatives such as Unchaai Kendra and Life-saving Safety Rules raise awareness and help prevent accidents, while regular risk assessments further support onsite and offsite measures in ACC's commitment to achieving 'Zero Harm'.
Material Topics Impacted
Definition
The main ESG risks fall under the category of climate risk, water risk and biodiversity risk. Climate risks consist of physical risks (acute: flooding, droughts, etc.; chronic: heat stress, water stress, etc.) and transitional risks (regulatory, technology, market, and reputation risks) which may impact operations and supply chains. The water stress in certain areas may impact water availability for operations as well as communities around. The dependencies and impact of our operations on the surrounding ecosystems may cause biodiversity risks.
Mitigating Factors
A strong climate governance mechanism is in place, supported by clear metrics, resilient infrastructure planning, emergency preparedness, and continuous monitoring aligned with climate targets, water efficiency and conservation initiatives and biodiversity conservation and enhancement.
Material Topics Impacted
Definition
The cement industry is heavily reliant on natural resources such as limestone and coal. Ensuring a continuous supply of these essential materials, while maintaining optimal cost and quality standards, is critical for smooth business operations.
Mitigating Factors
To mitigate risks associated with natural resources, ACC is enhancing operational resource efficiency to optimise resource utilisation. The Company is also prioritising resource conservation, reuse and recycling, implementing initiatives to improve the clinker factor and thermal substitution rate, alongside investments in renewable energy and WHRS systems to reduce reliance on non-renewable sources. Additionally, ACC is investing in coal and limestone mines to secure the supply of key raw materials, aiming to enhance sustainability, minimise environmental impact and build a more resilient supply chain.
Material Topics Impacted
Definition
Energy security is critical for ACC, as it directly affects both operations and overall production costs. With energy expenses constituting a significant portion of production costs, particularly during the energy-intensive kilning and grinding processes, efficient management of energy consumption is essential for the Company.
Mitigating Factors
Recognising the significance of mitigating the risks associated with energy price inflation, ACC implements a strategy to diversify fuel sources, including deploying alternative fuels. This approach minimises the impact of fluctuating energy prices and supports sustainability. The Company continually evaluates energy procurement options and implements innovative technologies to improve energy efficiency and operational resilience, ensuring it remains competitive in a dynamic cement industry.
Material Topics Impacted
Definition
Project execution is central to the Company's vision of achieving 119 MTPA by FY 2026-27, with large-scale projects already underway at multiple sites. Ensuring timely completion, upholding the highest safety and quality standards, and adhering to budgetary targets remain ACC's foremost priorities.
Mitigating Factors
The Company leverages synergies with the Adani Group's project management arm to execute large-scale projects efficiently. Strong cash flow through internal accruals and an EPC-led project delivery model with global suppliers and streamlined processes under the Projects team's 5S approach help achieve maximum efficiency, speed and scale.
Material Topics Impacted
The comprehensive assessment of risks across market dynamics, regulatory shifts, natural resource security, cybersecurity, climate exposure, energy volatility and project execution also reveals significant strategic opportunities. Capacity expansion and consolidation under the One Cement Platform strengthen scale advantages, logistics optimisation and market leadership.
Regulatory and climate imperatives accelerate innovation in blended cements, renewable energy integration, alternative fuels and circular economy practices, enhancing ESG differentiation. Resource and energy security challenges encourage investments in captive assets, green power and Waste Heat Recovery Systems, improving cost stability and long-term resilience. Digital and cybersecurity considerations are driving advanced analytics, IoT-enabled manufacturing and stronger governance frameworks, unlocking productivity and operational agility.
Together, these responses transform risk management into a catalyst for efficiency, innovation, competitive advantage and sustained stakeholder value creation.
