Sustainability

Sustainability

1. Intro

Sustainability

Smart Solution for Better Future — starting with how we manufacture it.

As a manufacturer of HVAC equipment, we sit in an unusual position: our own operations consume energy and resources, but the products we build also help the buildings they go into run more efficiently. We take both sides of that seriously. This page shares our actual environmental, safety and operational performance for FY 2025-26 — not aspirational claims, the numbers we report for certification and compliance.

2. Our Approach

Our approach to sustainability rests on four principles: meet or exceed every applicable environmental, health and safety requirement; track our resource and emissions data closely enough to find real efficiency opportunities; run a zero-harm workplace; and disclose our performance consistently, not just when it’s convenient.

We’re early in formalizing this — today, oversight sits with facility and operations management rather than a dedicated sustainability function, and our materiality review is a preliminary one. Energy management, GHG emissions and occupational health & safety came out as our highest-priority topics, and that’s where most of this page focuses.

3. Performance at a Glance — FY 2025-26

Stat Value
HVAC units produced 1,537
Workforce 192 employees
Major safety incidents Zero
Total energy consumption 7,99,870 kWh
Total GHG emissions (Scope 1+2) 851.1 tCO2e
Water consumption 12,419 KLD

Two numbers we watch more closely than the totals above, because they let us compare performance fairly as production grows:

  • Energy intensity: 520.4 kWh per HVAC unit produced
  • GHG intensity: 0.554 tCO2e per HVAC unit produced

4. Our Carbon Footprint

We measure our footprint using the GHG Protocol’s Scope 1 (direct) and Scope 2 (indirect, purchased electricity) categories:

tCO2e Share
Scope 1 — direct (fuel, on-site combustion) 66.5 7.8%
Scope 2 — indirect (purchased electricity) 784.6 92.2%
Total 851.1 100%

Purchased electricity is, by a wide margin, the biggest share of our footprint. That tells us where our real leverage is: energy efficiency on the shop floor and, over time, cleaner electricity sourcing — not offsets or side initiatives. It’s why our nearest-term targets (below) start there.

We don’t yet report Scope 3 (value-chain) emissions; that’s a future addition as our data collection matures.

5. Where We're Headed

Focus area Next 12 months Next 3 years
Energy efficiency Audit our top energy-consuming processes Reduce energy intensity per unit produced
GHG emissions Establish a formal reduction baseline Evaluate renewable electricity sourcing
Water Install sub-metering at key points Implement water recycling/reuse where feasible
Waste Maintain zero non-compliance in hazardous waste disposal Explore waste minimization at source
Health & safety Sustain our zero-major-accident record Pursue formal safety management certification
Workforce Expand structured training hours per employee Strengthen skill development and retention programs

We’re also expanding ethics and responsible-sourcing coverage: 85% of employees have completed business ethics training (target: 100%), and between 68–91% of our targeted suppliers are currently covered by a code of conduct, ESG contract clauses, or a sustainability assessment, depending on the measure — all trending toward full coverage.

6. Reports & Disclosures

Sustainability Report — FY 2025-26 Our full environmental, social and operational performance disclosure: governance, materiality, workforce and safety data, environmental performance, compliance, and forward targets.

GHG Emissions Report — FY 2025-26 Our Scope 1 and Scope 2 greenhouse gas inventory, prepared with reference to the GHG Protocol, including methodology, emission factors, and year-on-year tracking.

Both reports are prepared from internal facility records, utility billing and production logs. They have not yet undergone third-party external assurance; we’re open to facilitating third-party verification if a customer, certifier or partner needs it.

7. Contact

Questions about our sustainability performance or requests for supporting documentation can be directed to our QMS & Sustainability Department at qms@aerail.in.