Godrej & Boyce and Thales forge strategic partnership for a sustainable future

Mumbai, 26^th March 2024: In a landmark move towards a low-carbon future, Godrej Precision Engineering, a key player in the Godrej & Boyce manufacturing conglomerate, has entered into a letter of intent with Thales, a global technology leader in defence and security, aeronautics and space, and digital identity and security, agreeing to work together to tackle climate change in their respective value chains. The agreement was formalised during Thales’ recent India Strategic Suppliers event, marking a pivotal moment in their collective commitment to environmental stewardship.

Underlining the significance of this collaboration, Godrej Precision Engineering has pledged to align its operations with Thales’ ambitious CO2 emission reduction targets for 2030 across Scope 1, 2, and 3 emissions. This includes comprehensive measures to identify, implement, and assess the impact of initiatives aimed at reducing carbon footprints. The company is dedicated to providing annual progress reports to Thales, showcasing its dedication to transparency and accountability.

Thales is working with its strategic suppliers to achieve its CO2 emissions reduction targets for 2030, which have been validated by the SBTi and are compatible with the objectives of the Paris Agreement. These include a 50% reduction in absolute CO2 emissions related to its operational processes (Scope 1) and energy consumption (Scope 2) and a 15% reduction in absolute CO2 emissions related to its supply chain and the use of its products by customers (Scope 3). Thales also aims to achieve net zero operations-related CO2 emissions (Scopes 1 and 2) by 2040.

Godrej & Boyce, in line with its recently declared sustainability goals for the next decade, continues to champion sustainable progress. The company has enrolled in the EP100 global business initiative, aiming for doubling energy productivity by 2030. Additionally, Godrej & Boyce has set an intensity-based decarbonisation target of reducing carbon intensity for Scope 1 and 2 emissions by 60% by 2031-32.

As part of its commitment to sustainability, Godrej & Boyce has launched the ‘Beyond Sourcing’ initiative, aimed at fostering a responsible, efficient, and resilient supply chain. As part of the initiative, the company aims at creating a greener supply chain by aiming to have 80% of its domestic buying from GreenCo certified or SBTi certified suppliers. Beyond Sourcing is a testament to the company’s overarching goal of ‘Building a Greener India’ and underscores its belief that a sustainable supply chain is not only vital for the planet but also a driver of business competitiveness.

Roque Carmona, Chief Procurement Officer at Thales, expressed enthusiasm for the collaboration, stating, “Thales is committed to a proactive and responsible approach to environmental protection in India and globally. As part of our strategy for a Low-Carbon Future, procurement teams across Thales are working diligently with growing numbers of key suppliers to reduce the carbon footprint of our respective value chains. We will only meet our ambitious objectives by working hand-in-hand with our suppliers to promote energy efficiency and the use of renewable energy sources, optimise our processes and logistics operations, and adopt the principles of eco-design for our new products. We are proud to join hands with Godrej & Boyce in line with our strategy.”

Sushil Agarkar, Executive Vice President and Business Head, Godrej Precision Engineering, echoed this sentiment, emphasizing the commitment to a fully green supply chain. He stated, “Our collaboration with Thales represents a significant step towards achieving sustainability goals as we work collectively to address climate change and create a positive impact within our respective value chains.”

Thales has already reviewed and approved action plans of more than 150 of its key suppliers, with over 100 suppliers committing to support Thales’s carbon footprint trajectory. This strategic partnership between Godrej & Boyce and Thales exemplifies the power of industry-level collaboration in driving meaningful change towards a sustainable and environmentally responsible future.