Cement is one of the most widely used substances on earth after water. However, the cement industry is also one of the highest contributors of carbon dioxide that is approximately 8% of the total CO₂ emission. As a member of the Global Cement and Concrete Association (GCCA), we are committed to GCCA's visionary roadmap for achieving Net Zero concrete by 2050.

We demonstrate our commitment towards net zero through following :

• We have already met our target under EP100 in FY23-24. Currently, we are a member of the RE100 and EV100 initiatives.
• Committed to Science Based Targets initiative (SBTi) in July 2022. FY 2024-25 has been a significant year, as we have achieved another milestone with the validation of our near-term CO₂ reduction targets by the SBTi aligning with a 1.5 degree pathway. As per validated targets, we aim to reduce Scope 1 and Scope 2 GHG emissions intensity by 32.9% by FY 2034-35 from a FY 2023-24 base year of 274 kg/T. With 2.5% reduction target in gross emissions intensity of Scope 1+2, in our first year (FY 2024-25) of SBTi targets, we have achieved 2.3% reduction in FY 2024-25 vs FY 2023-24.
• Signatory to the Global Framework Principles for Decarbonising Heavy Industry, which provides clear steps to reduce emissions in heavy industries across the world to limit global warming to 1.5°C.
• Signatory to the UN Energy Compact, a voluntary commitment of action with specific targets and timelines to achieve SDG7 in line with the Paris Agreement on Climate Change.
• Member of UNIDO’s Industrial Deep Decarbonisation Initiative’s (IDDI) advisory group since 2022.
• Member of Development Council for Cement Industry (DCCI), set up by Government of India in 2021.
• Signed the Confederation of Indian Industry's (CII) Climate Charter and became a member of CII Climate Council in 2022.

As a part of our climate action strategy, we keenly focus on 4 levers which played a big role in achieving our carbon reduction targets:

• Clinker substitution: We continue to use industrial waste, such as blast furnace slag/fly ash, to substitute clinker in the production of cement or cementitious products; more than 90% of our products are slag-based.
• Alternative Fuel and resources: In FY 2024-25 we witnessed a rise in our Thermal Substitution Rate (TSR) from 6.89% to 16.5% owing to increased consumption of industrial waste, plastics/RDF waste, and biomass waste at our Nandyal plant. Our target is to reach 30% by 2030. We have initiated AFR utilization at Shiva plant also.
• Clean and Green Energy: We are progressively increasing our clean and green energy portfolio. We have installed 12 MW of Waste Heat Recovery System (WHRS) at Nandyal in FY 24. The 9 MW WHRS at Shiva Cement meets almost 70% of its energy needs. Further, we have secured solar power, through JSW Energy, from the 15.5 MW solar plant at Nandyal, 8 MW at Vijaynagar and 3.5 MW at our Salboni unit, which are helping us decarbonise our footprint. Thus we have built ~ 48 MW of Clean energy portfolio.
• Energy efficiency: We take periodic upgrades and initiatives to achieve better energy efficiency in our processes. This helps further in decarbonisation.
  In addition, we are aggressively developing low carbon products such as Geopolymer cement, LC3 cement etc.
  Owing to all above initiatives, in the past 10 years, we have quadrupled our production while we have reduced our carbon emission intensity by more than 50%. From FY-24 to FY-25, CO₂ emission intensity (Scope 1+ Scope2) has reduced by 4.4% from 270 kg/T to 258 kg/T of cementitious material wherein major reduction was in scope 1 emission intensity which dropped from 241 kg/T to 230 kg/T. We are proud that we have the lowest average net CO₂ emission intensity of 230kg/T of cementitious material (scope 1) which is much below the global average of ~580 kg/tonne and national average of ~530 kg/tonne, leading the way with low-carbon products to combat climate change in a hard-to-abate sector.
  We recognize the role that finance can play in supporting the transition to a low-carbon economy, particularly for industries such as the cement (hard-to-abate) sector that have a key role to play in economic and social development, yet historically have been highly carbon-intensive. As such, we signed our first Sustainability Linked Loan (SLL) of $50 million with Japan’s Mitsubishi UFJ Financial Group (MUFG) in October 2022. We plan to deploy these funds as capital expenditure to achieve our capacity expansion, with increasing focus on sustainability. In June 2023, we also signed our SLL deal with BNP Paribas Singapore to raise a further $50 million.
• We, as a responsible organization towards climate change, have initiated a Task Force for Climate-related Financial Disclosures, TCFD assessment in March 2023 to disclose our climate related risk and opportunities. Please find a summary report here.
• We scored a B grade for climate change and water in FY 2024. Rating was reduced to B from A- in the previous year owing to change in the CDP criteria, guidelines, reporting and scoring methodology.
• Climate Risk Assessment: Our climate risk assessment is integrated into a multi-disciplinary, company-wide risk management process through a documented framework that aligns climate-related risks and opportunities with our centralized enterprise risk management system. We conduct scenario analysis using a combination of qualitative and quantitative methods to evaluate the potential financial and strategic impacts of climate change on our business. This assessment covers all stages of our value chain, including our own operations, upstream activities such as raw material sourcing, and downstream activities involving market dynamics. The types of climate-related risks considered in our assessment include current regulation, emerging regulation, technology risk, legal risk, market risk, reputational risk, acute physical risk, and chronic physical risk. These risks are evaluated across short-term (0-2 years), medium-term (3-9 years), and long-term (10 years and beyond) to ensure that climate risks are systematically identified, evaluated, and addressed across all aspects of our business.
• Financial Risk of Climate Change: India’s Carbon Credit Trading Scheme (CCTS) presents a potential risk, particularly as CO₂ reduction targets transition from voluntary to mandatory compliance. Some of our plants have been assigned mandatory CO₂ reduction targets starting this financial year. While initial compliance is expected, meeting targets beyond two years may be difficult due to stricter benchmarks and technological limits. Non-compliance could lead to penalties or carbon credit purchases, with an estimated financial impact of ₹1 crore. To mitigate this, we plan to raise the Thermal Substitution Rate (TSR) from ~16%, requiring a chlorine bypass system. This involves investment with a fixed timeline, essential for long-term compliance and cost control. We recognize significant physical risks from coastal flooding at our operations in India, particularly at the Dolvi cement plant in Maharashtra. Located in a vulnerable coastal zone and reliant on slag from the adjacent JSW Steel facility, the plant faces high exposure to extreme rainfall and flooding over the medium to long-term future. Such events could disrupt operations, causing temporary production loss and supply chain interruptions. The estimated financial impact is ₹6 crore, with a corresponding internally estimated response cost.
• Financial Opportunity of Climate Change: At JSW Cement, we have identified a significant medium-term (3–10 years) environmental opportunity in increasing the use of low-carbon energy sources. We currently import coal from countries such as Indonesia, South Africa, and the USA. With the Government of India imposing a "Coal Cess" on imported coal, we have proactively adopted waste-derived fuels since 2018 to reduce our dependency on coal. In FY 2022–23, new regulations under Extended Producer Responsibility (EPR) required brand owners to manage plastic waste generated from their products. We have used plastic waste as a fuel substitute which helped us reduce our fuel/ energy costs and net CO₂ emissions. Overall, the anticipated financial effect of this opportunity is estimated at ₹445.5 crore, with a cost to realize the opportunity of ₹150 crore.
• Physical Climate Risk Adaptation: We have developed a context-specific physical climate risk adaptation plan based on the outcomes of our climate risk assessment. This plan covers 100% of our both existing operations and new operations that are currently in the planning or early development stages. Adaptation measures have been identified according to the severity of each risk, ensuring a targeted and effective response. The implementation timeline for these measures is set between 5 to 10 years.
• Net Zero/ Other Climate Related Commitments: In line with the GCCA 2050 Roadmap to net-zero concrete, developed in 2023, we are committed to achieving Net-Zero Concrete by 2050. Further to this, in March 2025, we led the development of GCCA India’s Roadmap, targeting Net-Zero emissions for the Indian cement industry by 2070, with an interim goal of Viksit Bharat by 2047. FY 2024-25 has been a significant year, as we have achieved another milestone with the validation of our near-term CO₂ reduction targets by the SBTi. We aim to reduce our gross Scope 1 and Scope 2 GHG emissions intensity by 32.9% per tonne of cementitious materials by FY 2034–35 from a FY 2023–24 as the base year. This target includes a 30.5% reduction in Scope 1 emissions and a 68.2% reduction in Scope 2 emissions within the same timeframe. In our first year of implementation, we targeted a 2.5% reduction in gross Scope 1 and 2 emissions intensity and successfully achieved a 2.3% reduction compared to the base year. Extending our efforts across the value chain, we are also committed to reducing our gross Scope 3 GHG emissions from purchased goods by 36.3% per tonne of purchased clinker and cement by FY 2034–35 from FY 2023–24 as the base year.
• Carbon Pricing:At JSW Cement, we have adopted an internal carbon pricing mechanism as a strategic tool to advance our climate commitments and support our transition to a low-carbon economy. This initiative aligns with our broader sustainability objectives and is designed to:
  
  • Drive energy efficiency across our operations
  • Encourage investment in low-carbon technologies and infrastructure
  • Identify and seize low-carbon business opportunities
  • Navigate evolving regulatory frameworks related to climate policy
  • Perform cost-benefit analyses to evaluate climate-related initiatives
  • Incentivize the integration of climate-related considerations into strategic decision-making
  • Shape strategic direction and financial planning through climate insights
  • Establish and work toward climate-related goals and policy commitments
  Scope and Pricing Structure: Our internal carbon price applies across Scope 1, Scope 2, and Scope 3 greenhouse gas (GHG) emissions, ensuring a comprehensive approach to emissions management. We currently utilize a shadow pricing model, with the price set at INR 1,775 per metric tonne of CO₂ equivalent (CO₂e). This price is integrated into selected business decision-making processes to assess the financial implications of carbon emissions and to guide investment prioritization. We implement our internal carbon price in some of our business decision-making processes such as greenfield projects and high CAPEX projects.

Policy Advocacy

We have a defined framework and management approach towards administering our lobbying activities and trade association memberships. The association and participation in forums is overlooked by the CEO and the CSO. Our CSO is also a part of the Board for GCCA in India. We are associated with Cement Manufacturing Association, GCCA (India and Global) for policy advocacy.

In FY 2024-25, we have paid total membership fees of INR 1.5 crore towards these collaborative initiatives and platforms. Our top five membership fees include GCCA Global and GCCA India (~ INR 60 lakh), CMA (~ INR 40 lakh), Climate Group (INR 12 lakh) and Xynteo’s Build Ahead Initiative (~ INR 12.5 lakh).

We are partnering and supporting on topics such as decarbonization of the built environment in partnership with various organizations as listed above. As part of our initiatives towards circular economy, we are constantly communicating and partnering with the International Council for Circular Economy. In addition to this, we are working closely with engineering colleges, engaging students for sustainable construction. We regularly monitor and review our practices and initiatives in order to align with the Paris Agreement.

JSW Cement’s policy on Climate Change is available here.