Varroc Engineering Limited has reaffirmed its long-standing commitment to sustainability and environmental stewardship, marking World Earth Day with significant updates on its environmental, social and governance (ESG) performance and community initiatives, including the ongoing restoration of the Kham River.
The company reported notable progress in strengthening its ESG credentials, with its latest rating improving to 75, as assessed by CFC Finlease Private Limited, a SEBI-registered ESG rating provider. This follows earlier ratings from CRISIL ESG Ratings & Analytics and SES ESG Research. In addition, Varroc’sEcoVadis score has improved from 44 to 52, earning the “Sustainability Committed” recognition and elevating its global percentile ranking from the 18th to the 34th percentile.
Tarang Jain, Chairman and Managing Director of Varroc, stated that sustainability remains central to the company’s growth strategy. He noted that ongoing improvements in ESG performance reflect focused efforts in energy transition, emissions reduction, and responsible manufacturing practices.
Varroc has made measurable progress in renewable energy adoption, with nearly 40% of its total electricity consumption now sourced from renewables in FY26. Overall energy consumption, including process fuels, saw renewable contribution reach approximately 36%, with a roadmap to exceed 50% in the near term. Energy efficiency initiatives across global operations helped avoid more than 28,000 tonnes of carbon dioxide emissions during the year, while overall emissions declined by around 26%, supported by over 100 efficiency projects implemented worldwide.
The company continues to advance circular manufacturing practices, recycling over 90% of the waste generated across its facilities. Improved scrap management systems and reduced waste generation have further strengthened its resource efficiency. Water conservation also remains a priority, with Zero Liquid Discharge systems enabling over 90% wastewater recycling and reuse at key manufacturing sites.
Beyond its operational footprint, Varroc has played a pivotal role in the restoration of the Kham River through sustained environmental and community-led initiatives. The programme has led to the restoration of 54 acres of riparian zones, cleaning of over 46,000 square metres of river area, and greening of more than 21,000 square metres of riverbanks with over 22,000 saplings planted. Additionally, 110 garbage-vulnerable points have been addressed, and structured waste collection systems now benefit approximately 25,000 households.
The initiative has also seen participation from over one million people through awareness drives and community engagement programmes. The restored river stretches now support biodiversity, public spaces, and reduced flood risks, with the river remaining stable during recent monsoon seasons. The project has received international recognition, being named among the top five finalists for the World Resources Institute Ross Center Prize for Cities.
Looking ahead, Varroc aims to deepen its ESG integration across supply chains, address Scope 3 emissions, and enhance transparency through stronger disclosures and external validation. With sustainability embedded across its global operations, the company continues to align business growth with environmental responsibility and long-term value creation.
Varroc Engineering Limited is a global tier-1 automotive supplier with a presence across multiple international markets. The company continues to focus on building a future-ready workforce to support innovation and growth in the evolving mobility ecosystem.
