##### Board and Management oversight on ESG
Our governance structure follows the best practices by integrating the Environmental, Social and Governance considerations in business decisions. The Board ensures that ESG performance monitoring and decision making permeates through different levels in the organization. From the Executive Director level the overall direction to our sustainability efforts is provided. Post the global crisis of 2020, the company has increased focus on Corporate Resilience. The financial disclosures involving climate-related risks and opportunities are an integral part of the sustainability transition.
The ESG aspects and Risk Management are further incorporated within the organization by establishing a corporate Risk Management program. This system has been implemented across the Company to enable all the employees and business associates to raise any kind of risk identified by them up to the next level. The risk management framework has the provision to evaluate, prioritize and escalate the risk till the highest governing body within the organization. Plans for managing and mitigating material risks, including climate related and other environmental topics as appropriate and external risks, are regularly reported to the leadership.
The Board examines and approves the ESG priorities, action plan, risks and its mitigation plans. Its business plan incorporates the guidelines to promote a sustainable business model and lay down the basis for long term value creation. The Board is supported in the ESG oversight through dedicated committees, the details of which are available at https://graphiteindia.com/investors/. The climate-related risks and opportunities are overseen by GIL through the following committees.
###### Corporate Social Responsibility (CSR) Committee
The Board appointed the CSR Committee for overseeing the execution of the company's CSR policy. The Chairperson along with other board members oversees the execution of the CSR policy. The Committee meets periodically to track progress of our CSR activities and budget allocations.
###### Risk Management Committee
The committee is responsible for identifying major business risks and monitor and review the risk management plan including policies and process. The climate-related risks and opportunities and their transmission into the financial system is overseen by the committee. They are responsible for meeting periodically and assessing the adequacy of risk management systems in place. The Board is informed periodically about the nature of risks including external risks, the content of discussions at RMC meetings, recommendations and actions taken.
###### Enterprise Risk Management Program
GIL's Enterprise Risk Management (ERM) program is the company's framework for identifying, assessing, monitoring, and mitigating the company's most significant risks. The Management is responsible for overseeing implementation of the program. The ERM process requires a broad understanding of internal and external factors that can impact the company's objectives, and the ability to adapt to an evolving risk landscape.
A wide range of risks faced by GIL are included in this ERM process, including ESG-related issues that could present enterprise-wide financial risks such as credit risk, liquidity risk, market risk, etc. This includes the evaluation of a wide array of issues associated with climate change through their transmission into the financial system. Some risks include customer requirements/issues (e.g., need for energy efficient products to address climate change regulations, consumer demands, profitability, etc.); operational issues (including new climate-related regulations, or issues resulting from natural disasters); and supply chain challenges (including weather-related disruptions influenced by climate change).
Risks identified are then prioritized according to significance on business. The risks are reviewed annually with GIL's senior leadership and the Board of Directors. Identified risk owners are responsible for overseeing the development and execution of detailed mitigation plans and reporting to, and updating, the Risk Management Committee.
GIL's approach to governance for climate-related risks and opportunities aims to provide a comprehensive framework that can identify, manage, and respond to risks and opportunities in a timely and effective manner. In many instances, GIL leverages the existing Board and enterprise processes to manage these risks and opportunities.