Chennai Petroleum Corporation has filed its Business Responsibility and Sustainability Report (BRSR) for FY 2025-26, revealing a long-term strategy to achieve net-zero operational emissions by 2046. The filing, submitted to stock exchanges on August 1, 2026, under Regulation 34(2)(f) of the SEBI (Listing Obligations & Disclosure Requirements) Regulations 2015, outlines the company’s environmental, social, and governance performance. The report was assured by Bureau Veritas (India) Private Limited, which provided reasonable assurance on the disclosed data. This disclosure is material for investors tracking the company’s transition risks and capital allocation towards decarbonization amidst evolving regulatory landscapes.

The company reported a turnover of ₹78,610.66 crore and a net worth of ₹10,800.02 crore for the financial year. Operations remain concentrated in the domestic market, with no direct international sales, although CPCL supports exports through Indian Oil Corporation. The refinery processes crude oil into refined petroleum products, with High Speed Diesel (HSD) contributing 49.17% of turnover, followed by Motor Spirit (MS) at 12.64%, Naphtha at 11.45%, and Aviation Turbine Fuel (ATF) at 10.10%.

Environmental Performance and Climate Strategy

CPCL identified climate change as a primary risk and opportunity, aiming to mitigate physical and transition risks through operational resilience. The company achieved an actual Modified Benchmark Norm (MBN) of 75.2 against a PAT Cycle VI target of 76.85 for FY 2022-23, making it eligible for 18,162 Energy Saving Certificates (ESCerts). To reduce greenhouse gas emissions, CPCL utilized Re-Gasified Liquefied Natural Gas (RLNG), generating a CO₂ reduction of 475,745 metric tons. Other initiatives included wind power generation of 31.4 million units and solar power generation of 2.62 million units.

The company faces ongoing environmental litigation regarding compensation levied by the Tamil Nadu Pollution Control Board (TNPCB). An interim stay was granted by the National Green Tribunal (NGT) in March 2025 on a ₹73.68 crore levy related to the Michaung cyclone oil spill, conditional on a bank guarantee of ₹19.12 crore, which was submitted in April 2025. A separate demand of ₹6.24 crore is also under trial before the NGT.

Social Governance and Stakeholder Engagement

CPCL employs 739 permanent employees and 664 permanent workers. The workforce includes 20 differently abled employees and 18 differently abled workers. The company reported zero fatalities and zero reportable safety incidents over the past four years. Training coverage reached 100% for Board of Directors and Key Managerial Personnel on human rights and sustainability principles.

Corporate Social Responsibility (CSR) spending focused on health, education, and infrastructure in aspirational districts. Notably, ₹1,079 crore was allocated to projects in Ramanathapuram, Tamil Nadu. The company also undertook rehabilitation and resettlement for 2,163 families affected by the New Grassroot Refinery cum-Petrochemical Project (CBRPL), disbursing ₹122.29 crore during the year.

What the Numbers Show

The data indicates a strong reliance on process optimization for emission reductions rather than new large-scale capital projects, as evidenced by the significant CO₂ reduction from RLNG utilization and energy conservation schemes compared to renewable energy generation. While the company maintains a zero-incident safety record, the pending environmental compensation cases highlight residual regulatory risks associated with legacy incidents. The substantial CSR outlay in Ramanathapuram suggests a strategic focus on social license to operate beyond its immediate operational footprint in Chennai.

Chennai Petroleum Corporation has scheduled its 60th Annual General Meeting (AGM) for Monday, August 24, 2026, to approve a final equity dividend of ₹54 per share and appoint new board members. The meeting, held via Video Conference/Other Audio-Visual Means (VC/OAVM), will also see shareholders ratify the remuneration of cost auditors and consider the re-appointment of retiring directors. This marks a significant shareholder event for the Government of India enterprise, which is also a group company of Indian Oil Corporation Limited (IOCL).

The Board of Directors recommended the final equity dividend of 540% on paid-up share capital, corresponding to ₹54.00 per share, during its meeting on March 26, 2026. Additionally, the company proposes a preference dividend of 6.65% (₹0.665 per Preference share) on outstanding preference shares up to their redemption date of September 23, 2025, amounting to ₹15.94 crore for FY25-26. This preference dividend is payable to IOCL as per the offer document terms. Shareholders holding shares on the record date of Friday, August 7, 2026, will be eligible for the equity dividend if approved.

Director Appointments and Re-appointments

The AGM agenda includes ordinary resolutions for the re-appointment of Inder Jeet and Rohit Kumar Agrawala, who retire by rotation and are eligible for re-appointment. Inder Jeet serves as a Government Nominee Director, while Rohit Kumar Agrawala is the Director (Finance).

Under special business, shareholders will vote on the appointment of S.G. Venkatesh as Director (Technical). Venkatesh, who was appointed as an Additional Director effective January 5, 2026, brings 31 years of experience in petroleum refining and petrochemicals. He previously served as Executive Director (Petrochemicals) at IOCL. Also seeking appointment is V.C. Asokan as a Nominee Director, nominated by holding company Indian Oil Corporation Limited. Asokan was appointed as an Additional Director effective April 2, 2026, and brings over three decades of experience in the oil and gas sector, including roles in sales and marketing across India and Sri Lanka.

Cost Auditor Remuneration

The company seeks ratification for the appointment of M/s. Vivekanandan Unni & Associates, Cost Accountants, Chennai, as the Cost Auditor for FY26-27. The proposed aggregate remuneration is ₹2,75,000 plus applicable taxes and out-of-pocket expenses. This proposal was recommended by the Audit Committee on March 25, 2026, and approved by the Board on March 26, 2026, in compliance with Section 148 of the Companies Act 2013 and Rule 14 of the Companies (Audit and Auditors) Rules, 2014.

What the Numbers Show

The proposed final dividend of ₹54 per share follows an interim dividend of ₹8.00 per share declared in March 2026 and paid on April 15, 2026. The total dividend payout for FY25-26, if the final dividend is approved, will be ₹62 per share. The preference dividend of ₹15.94 crore represents a fixed obligation to IOCL, reflecting the structured capital relationship between the refinery and its holding company. The appointment of technical and nominee directors from IOCL underscores the strategic alignment and operational integration within the Indian Oil group structure.

Key Dates and Procedures

Shareholders must submit relevant documents for Tax Deducted at Source (TDS) determination by August 14, 2026, as dividends are taxable under the Income Tax Act, 2025. The company has appointed M/s. KFin Technologies Limited as the Registrar and Transfer Agent to facilitate VC/OAVM participation and e-voting. M/s. Chitra Lalitha & Associates, Company Secretaries, have been appointed as the Scrutinizer for the voting process. Participation through VC/OAVM will count towards the quorum under Section 103 of the Companies Act 2013.