Driving into Sustainability : Lucid's Journey as
Responsible Global Corporate Citizens

Background

Lucid Colloids Ltd. (LCL) is a renowned manufacturer of natural and modified hydrocolloid derivatives, including Guar Gum, Cassia Gum, and various food additives. As a company committed to conducting all the operations with the highest levels of safety, health, environmental protection, and social standards to aim for zero industrial incidents, zero product defects and the least impact on the environment; Lucid aimed to enhance its sustainability practices by accurately measuring and managing its greenhouse gas (GHG) emissions, improving its ESG ratings, and setting science-based targets for carbon reduction. To achieve these goals, Lucid partnered with NEPRA Environmental Solutions Technologies Private Limited (NEPRA) to guide them through GHG Accounting, SBTi target setting, Decarbonization Planning, ESG reporting, and enhancing their EcoVadis and CDP ratings.

Challenge

Lucid Colloids Ltd. was at a crucial juncture in its sustainability journey. The company needed a comprehensive approach to measure its Scope 1, 2, and 3 GHG emissions and set realistic targets for reducing its carbon footprint. Lucid also sought to elevate its ESG performance, making it more transparent and aligned with global standards. The challenge was to seamlessly integrate these initiatives into Lucid's existing operations and prepare the company for stricter assessments by global rating platforms such as EcoVadis and CDP. Additionally, Lucid required a robust ESG report to effectively communicate its sustainability efforts to stakeholders, investors, and clients

Our Approach

NEPRA Environmental Solutions Technologies Private Limited (NEPRA) adopted a structured and detailed methodology to address Lucid's needs:

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1. GHG Accounting

  • Training on GHG Accounting : We organized capacity-building sessions for Lucid’s teams on GHG accounting, focusing on standards like the GHG Protocol and ISO 14064. This training helped Lucid understand the complexities of GHG measurement and the importance of accurate data collection.
  • Introduction to Global Sustainability Trends : We conducted sessions on global sustainability trends, ESG strategies, and the significance of transparent reporting. These sessions helped Lucid align its internal communication and sustainability strategies with broader ESG goals.

2. Desk Review & Gap Analysis

  • In-Depth Review : We conducted a thorough review of Lucid's existing sustainability practices & policies. This review helped us identify gaps in their current approach and areas that required improvement.
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3. Stakeholder Engagement & Boundary Setting

  • Defining Boundaries : We engaged withBenchmarking & Recommendations: We benchmarked Lucid’s practices against industry standards and competitors, providing tailored recommendations to enhance their sustainability efforts and address any shortcomings.
  • key stakeholders, including plant managers, sustainability officers, and technical experts, to define Lucid's organizational and operational boundaries for GHG reporting. This step ensured that all relevant emissions categories were accurately captured.
  • Understanding Operations : Through discussions with various departments, we gained insights into Lucid’s manufacturing processes, energy consumption patterns, and supply chain mechanisms. This understanding was crucial for setting realistic and science-based emission reduction targets.

4. Data Collection & Collation

  • Customized Data Collection : We assisted Lucid in collecting accurate data on GHG emissions across Scope 1, 2, and 3 categories. Using Nepra’s ESG Konnect tool, we facilitated real-time data tracking and analysis, ensuring that Lucid had a clear view of its emissions profile.
  • GHG Inventory & AnaIEC Engagement & Training:lysis : We used relevant emissions factors from established databases to calculate Lucid’s GHG emissions. We also evaluated the impact of ongoing sustainability initiatives, such as renewable energy integration, on reducing overall emissions. 
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5. GHG Inventory Report & Decarbonization Plan

  • Comprehensive Reporting : We compiled the collected data into a detailed GHG accounting report, highlighting Lucid’s emissions across all scopes. This report provided a clear narrative on the company’s carbon footprint and areas for improvement.
  • Decarbonization Roadmap : We assisted Lucid in setting science-based targets (SBTi) and developed a Decarbonization Plan with a clear roadmap for achieving carbon neutrality. This plan included actionable steps and timelines to guide Lucid’s sustainability journey. 

6. ESG Reporting & Rating Enhancement

  • Enhanced ESG Report : We developed a comprehensive ESG report based on the GRI framework, showcasing Lucid’s commitment to sustainability and transparency. This report was designed to resonate with stakeholders and align with global reporting standards.
  • Improvement of EcoVadis & CDP Ratings : We supported Lucid in improving their responses to EcoVadis and CDP assessments, ensuring that their sustainability efforts were accurately reflected and rated. 
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Results

The collaboration between Lucid Colloids Ltd. and NEPRA yielded significant and genuine outcomes 

  • Clear Decarbonization Roadmap : Lucid now has a well-defined and actionable plan to reduce its carbon emissions, with clear targets and milestones set through the SBTi framework. This roadmap has provided Lucid with a structured approach to decarbonizing its operations and achieving long-term sustainability goals.
  • Enhanced ESG Ratings : Enhanced ESG Ratings: The improvements made in Lucid’s sustainability practices led to higher ESG ratings on platforms like EcoVadis and CDP. These enhanced ratings not only reflect Lucid’s commitment to environmental stewardship but also position the company as a leader in sustainable practices within its industry.
  • Increased Transparency and Trust : The thorough and transparent reporting process has built stronger trust with stakeholders, investors, and clients. Lucid’s detailed ESG report and audited GHG inventory have demonstrated the company’s genuine commitment to sustainability, enhancing its reputation in the market.
  • Progress Toward Global Leadership : Lucid’s proactive approach to sustainability, backed by robust data and clear targets, has put the company on a solid path toward becoming a responsible and globally recognized leader in the hydrocolloid industry.
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