by Manoj Rustogi, Chief Sustainability & Innovation Officer, JSW Cement
As a part of our decarbonisation strategy, we are shifting towards using alternate fuels and raw materials (AFR), installing Waste Heat Recovery Systems (WHRS) and enhancing our renewable energy portfolio through sourcing solar power through Power Purchase Agreements. We are continuously enhancing our energy efficiency through necessary upgradation and modification of our current systems. The company has set-up a very modern and well equipped R&D Lab at Vijayanagar (Karnataka) and is involved in basic research to innovate on manufacturing process and develop new low-carbon products. As a strategy we work with various global research organizations and leading academic institutes in India, to embrace new greener technologies.
With a carbon emission intensity which is 37% of global average and 40% of India average, JSW cement has already positioned itself as a leader in its decarbonisation journey. In 2021-22, our cementitious volume produced was 7.97 Million MT. Our green cement products offer among the lowest clinker ratios in the world, which adds to our efforts of conserving natural resources and energy. As a result of our planned product mix, our specific Net CO2 emissions of 219.7 Kg per MT of cementitious material during FY 2021-22, were the lowest in the cement industry. We are also shifting towards renewable sources and have consumed 15.2 million units of solar power and renewable energy. We intend to gradually expand the proportion of renewable energy in our energy mix.
Working towards enhancing alternative fuels usage, last year, we doubled our Thermal Substitution Rate (TSR) from 4% to 8% owing to increased consumption of Industrial waste, plastics/RDF waste, and biomass waste at our Nandyal plant.
Few highlights of our commitments and achievements:
– Being a member to GCCA, JSW is committed to follow GCCA’s roadmap to net zero concrete by 2050.
– JSW Cement is the first company to commit to the Climate Group’s RE100, EP100 and EV100 campaigns in one go
-Prepared its first Integrated Report in FY 2021-22
-Received the prestigious CII-ITC Sustainability Award 2022 under corporate excellence category; youngest company to get this coveted award
– the only construction material company selected across the world for the UN 2045 sustainability movie campaign
ESG Risk Rating Exercise by Sustainalytics
In Jan 2023, JSW Cement undertook the comprehensive Environmental, Social, and Governance (ESG) risk rating exercise for which the company has engaged Sustainalytics. Considering various factors, JSW cement’s exposure was found to be of Medium level which is similar to sub-industry average. In the same assessment, the company's overall management of material ESG issues was found to be strong. Management refers to how well a company is managing its relevant ESG issues. The management score assesses the robustness of a company's ESG programs, practices, and policies.
As summarised and concluded in the final report, the company is at low risk of experiencing material financial impacts from ESG factors due to its strong management of most of the material ESG issues. With an ESG risk score of 17, JSW Cement ranks first among all 140+ global construction materials companies analysed by Sustainalytics. The score of 17 is perhaps the lowest any cement company has ever achieved. The company has made efforts to comply with local and global frameworks related to ESG and on a broader Sustainability agenda.
The public ESG rating definitely validates the company is in the right strategic direction, and is a milestone in its journey towards the “NET-ZERO” and helping the nation grow sustainably.
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