Cement manufacturing requires limestone as a primary raw material and other raw materials such as alumina, iron ore and gypsum. The materials are mixed together in a kiln to heat them up and form a clinker. In the process, CO₂ emissions are generated from the chemical conversion of limestone (known as process emissions ) and fossil fuel combustion. At JSW cement, our business model is based on the circular economy wherein we primarily substitute emission intensive clinker with Slag - a waste or a by-product from the steel industry. Since FY 09, we've prioritized the use of Blast Furnace Slag, thereby replacing clinker and reducing direct CO₂ emissions. During FY 25, slag-based products (GGBS, PSC, PPC) constitued ~80% of our portfolio. Besides this, we also use other alternative raw materials and fuels. In FY 25, we utilised ~8.8MT of waste-derived resources, comprising slag, fly ash, artificial gypsum and flue dust.

We have taken a target of reaching 10.4 Million T of waste derived resources by FY26. Additionally, we also aim to achieve 30% Thermal Substitution Rate (TSR) by 2030.

While some circularity initiatives are implemented at our integrated unit Nandyal and Shiva, others are practiced in other grinding units

• Clinker Substitution: Since ~80% of our product portfolio uses slag, our clinker factor is very low.
• Increasing share of Alternative Fuels: We witnessed an increase of the TSR from 6.89% to 16.5% in FY 2024-25, due to increased consumption of industrial waste, plastics/RDF waste besides biomass waste from different industries such as steel, alumina, pharmaceutical, municipal waste, pulp and paper industry, textile industry, amongst others.
• Innovation: Our commitment to innovation extends to collaborations with academic & research institutions, resulting in advancements such as geopolymer concrete, 3D concrete printing and biodegradable polymers for eco-friendly packaging. We are also exploring alternative raw materials like calcined clay and developing super sulphate cement to further enhance our sustainable practices.
• Memberships: We are active members of various industry associations particularly working on Circular Economy - FICCI’s Resource Efficiency and Circular Economy Industry Coalition (RECEIC), International Council for Circular Economy(ICCE), and relevant working groups and committees of GCCA, CMA etc. This helps to strengthen our efforts on the circular economy and decarbonisation at the sector level. We are also among the founding members of ‘Build Ahead', an industry-first coalition with Xynteo.
• Revenues from Sustainable Construction Materials: JSW Cement produces cement, blended cement, and other cementitious materials and the activities align to manufacture of cement as per EU Taxonomy. Our product portfolio—including Ground Granulated Blast Furnace Slag (GGBS), Duraflor, Portland Slag Cement (PSC), Concreel HD, POWER PRO, Compcem, Krysta Leakproof, Enduro Plast, and Slag Sand—is listed in the Green Product Catalogue of GRIHA (Green Rating for Integrated Habitat Assessment). These products are engineered to deliver a lower carbon footprint compared to conventional Ordinary Portland Cement (OPC), thereby contributing to climate change mitigation, sustainable use, supporting circular economy principles and biodiversity and ecosystem protection. In addition, they comply with the Do No Significant Harm (DNSH) safeguards outlined in the EU Taxonomy. As per the Environmental Product Declaration (EPD), our net specific greenhouse gas (GHG) emission intensity is recorded at 0.325 tCO₂e per tonne of cement for PSC and 0.108 tCO₂e per tonne of cement for GGBS. This product range is fully aligned with our long-term sustainability objectives and reinforces GRIHA’s vision for environmentally responsible building design and compliance. During the year FY 2024-25, 79% of our total revenue accounting to INR 4,571 crore was from sustainable construction material (low carbon products). During the previous year FY 2023-24, we reported 83% of our total revenue i.e. INR 4,986 crore from sustainable construction material.