Climate Change has become a word which no longer needs a definition anymore. Unfortunately, we live in an era where we are first hand experiencing the effects of climate change. It has not only caused a shift in the Earth’s weather patterns and average temperatures but has also affected a lot of people and their communities. Increased levels of carbon dioxide, methane, nitrous oxides, and other greenhouse gases in the atmosphere, which have been generated since the industrialization, are leading to increased global warming.
Globally there is an increasing awareness regarding the perils of climate change. Under the aegis of the UNFCCC, nations have come together to institute a concerted plan of action under the Paris Agreement to contain the global temperature rise in this century under 2˚C, if not under 1.5˚C. However, in spite of the several actions planned, it is being realised that additional efforts need to be put in place to achieve the global target of 2˚C. One of the major areas that is being now targeted is the decarbonisation of the industrial sectors specifically Steel, Cement, Petrochemicals, and fertiliser, which essentially use fossil fuels as their raw material.
Among the above industries, steel accounts for nearly 50% of the carbon emissions. By 2050, the carbon intensity of steel production needs to be reduced by at least 70% globally, to be able to maintain the temperature rise within the 2˚C scenario. In India, the Ministry of Steel has committed a reduction of a specific emission of carbon dioxide to around 2.0tCO2/tcs by 2030 from 3.0t CO2/tcs in 2005 and transition towards a pathway to ‘Zero Carbon Steel’.
As India’s leading steel producer, JSW Steel, has taken the challenge to combat climate change by incorporating sustainability to its core operations and decision making. JSW Steel is committed to the reduction of a specific emission of carbon dioxide to around 2.0tCO2/tcs by 2030. To achieve this JSW has taken a pledge for,
1) Prevention of the causes of climate change
2) Mitigation and adaptation of the impacts of climate change
3) Building resilience to climate change
SDG Mapping of JSW Steel’s Initiatives & Projects
SDG 13: Climate Action
JSW Steel and its subsidiaries together account for ~23% of India’s steel production. As one of the premier players in the industry, we consider it our responsibility to proactively reflect on and manage the challenges arising out of climate change. JSW has integrated climate change scenarios in its risk management system to build resilience and strengthen adaptive capacity to climate-related hazards and natural disasters. Some of the major tasks undertaken by JSW Steel to manage its climate change-related risks and opportunities are,
Climate Action Group
Considering the rapid developments related to climate change viz. technology, regulations, taxation, investors’ growing expectations, disclosures, and so on, we have constituted a Climate Action Group (CAG) with cross-functional expertise encompassing R&D, strategy, operations, communications, etc. Facilitated by the Corporate Sustainability Team, the CAG operates as a central think-tank, to formulate and drive the climate change mitigation strategy and actions for JSW Steel towards a low carbon road ahead.
The primary responsibilities of the CAG are expected to be:
Internal Carbon Price
JSW Steel has adopted a shadow internal carbon price of USD 20/tonne
Targets for a better tomorrow!
JSW Steel, as well as JSW Energy, has set-up long term internal targets for all the sustainability KPIs across all locations
Company-wide target for specific energy consumption for 2030 (GCal/tcs)
Company-wide target for specific GHG emissions for 2030 (tCO2e/tcs)
Company-wide target for specific freshwater consumption for 2030 (m3/tcs)
Company-wide target for waste recycling for 2030 (%)
To achieve a ‘no net loss’ of biodiversity at all our currently operating sites by 2030
To achieve a ‘no net loss’ of biodiversity at all our currently operating sites by 2030
Worldsteel Association Climate Action Member
JSW Steel has been recognized by the World Steel Association for fulfilling the commitment to participate in the Climate Action Program for CO2 emissions data collection for two consecutive years. In 2008, Climate Action was launched by Worldsteel with an aim to collect and report CO2 emissions data for both on site-level and company-level CO2 emissions in order to obtain a base level of emissions for the steel industry as a whole. This data collection program is at the core of the steel industry's global steel sectoral approach to climate change. More details can be found here
As the world takes steps towards building climate resilience, disclosure of the same provides the bedrock for ambitious action. CDP is one such global platform for climate related disclosures – actions & progress towards building a truly sustainable economy for people and planet. By reporting to CDP, JSW Group companies (JSW Steel, JSW Energy & JSW Cement) gain competitive advantage as it helps to identify and tackle growing risks and find new opportunities. While JSW Steel has been associated with CDP since a 2013, JSW Energy & JSW Cement started disclosing the data in the recent years. In terms of carbon footprint, JSW Steel has been scored ‘B’ by the CDP. This score pertains to the ‘Management’ band, which acknowledges that the Company is taking coordinated actions on climate issues. The score is higher than the global average, the Asia average and the average of the metal smelting, refining, and forming industry. JSW Steel, due to its consistent and comprehensive CO2 emissions data disclosure, has also been ranked 1 by the CDP Steel Report 2019 in the Data Transparency rankings.
CII Working Group
JSW is the convener of the CII Working Group for Green House Gas (GHG) data collection from Industrial Processes and Product Use (IPPU) sectors for Iron & Steel and Cement.
Other key aspects of our climate change resilience building exercise
- JSW Steel and its subsidiaries together account for ~23% of India’s steel production. As one of the premier players in the industry, we consider it our responsibility to proactively consider and manage the challenges arising out of climate change.
- JSW Group is shifting its focus to increase the share of renewable/non-conventional energy consumption. JSW Energy is also looking at increasing the renewable energy in its production portfolio through solar & hydropower plants.
- The most recent initiative of JSW Group to improve the environment is the “Single Use Plastic Ban” across all JSW Group manufacturing locations. Through this JSW has successfully built awareness among its employees and their families on the negative impacts of plastic on our environment and promoted the use of alternative sustainable materials. JSW Steel also plans for plastic waste utilization in its coke oven & Electric Arc Furnace. For more details on all the projects taken up by JSW in the field of waste management please visit the Waste Framework.
- Through various initiatives of awareness improvement and building institutional capacity on climate change mitigation, adaptation, impact reduction, and early warning, JSW is contributing to Goal 3 of SDG 13.
SDG 12: Responsible Consumption and Production
- Climate change is associated with the exploitation of natural resources and JSW has taken upon itself to achieve sustainable management and efficient use of natural resources. Details of all the projects taken up by JSW in the field of resource management can be found in Resource Framework
- JSW Steel also incorporates social and environmental considerations while developing products. Key examples include:
- Speciality steel that is used to manufacture energy-efficient motors
- Steel structures that are used to install solar panels
- Products for the agricultural market that have helped farmers to prevent spoilage of food grains and other crop yields
- Products for the automobile industry that enable import substitution, leading to local employment generation and savings of foreign exchange
- Given the fact that steel maintains an average of 86% recyclability, a substantial quantity of steel demand can be met using converted steel scrap. This ability of steel to be recycled again and again makes it a perfect material for circular economy.
- JSW supports SDG 12: Goal 6 of sustainability information disclosure by regularly disclosing information on its performance of key sustainability parameters along with the sustainable practices adopted in its integrated report which is publicly available on JSW Steel’s website here.
- A circular economy is an economic system of closed loops in which raw materials, components, and products lose their value as little as possible, renewable energy sources are used and systems thinking is at the core.
- As a permanent material, steel is fundamental to achieving a circular economy through the 4 Rs – Reduce, Reuse, Remanufacture & Recycle.
- Reduce – To promote circular economy of steel, the amount of material, energy & other resources required for steel production should be decreased, along with reduction of usage of steel in products without compromising their quality. JSW Steel has over the years increased the efficiency in the steel making process through augmentation of existing facilities and implementing energy consumption reduction initiatives. JSW also works together with its customers to understand the application of steel in their products and come out with better grades of steel which are well suited to their needs.
- Reuse – It is the use of material or object again either for its original purpose or for a similar purpose, without significantly altering the physical form of the object. JSW contributes to circular economy by reusing the steel-making byproducts in other applications. For e.g. slag is used in cement making, dust is used for extraction of Zinc, hot process gases are used for electricity generation & tar is used for pitch, plastic and fertilizer production
- Re-manufacture – It is the process of restoring durable used steel products to as-new condition to be used for the original application again.
- Recycle – This involves melting of steel products at the end of their useful life to produce new steel. JSW recycles end-of-life steel to produce steel again by replacing hot liquid metal by scrap in the electric arc furnace. Currently, JSW Steel consumes only 4% of scrap and rest all is manufactured by conventional process where iron ore and coal are consumed to make steel. Major challenge was and still persists is the ready availability of end-of-life steel which can be resolved through a national policy in place.
- JSW supports SDG 12: Goal 6 of sustainability information disclosure by regularly disclosing information on its performance of key sustainability parameters along with the sustainable practices adopted in its integrated report which is publicly available on JSW Steel’s website at link
SDG 9: Industry, Innovation, and Infrastructure
- The Company aims to address the environmental impact of its operations with a strategic and long-term approach. This involves up-gradating and retrofitting infrastructure to make it sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes.
- To achieve this, JSW is continuously evolving to improve raw material quality, energy efficiency, increase steel-making via electric arc furnace process and exploring possibilities in carbon capture and storage/utilization.
- Installation of BF gas holder
- Top-pressure recovery turbine for BF
- Hot stove waste heat recovery
- Installation of energy monitoring and management systems
- Coke oven waste heat recovery boiler
- LD converter dry Gas Cleaning Plant (GCP) and gas holder
- LD convertor waste heat recovery boiler
For more details on all the projects taken up by JSW in the field of resource management please visit the Resource Framework.
SDG 6: Clean Water and Sanitation
- JSW has been contributing towards the SDG 6 goals by implementing protection and restoration of water-related ecosystems
- JSW has taken up various water biodiversity conservation initiatives, ‘Mangrove Conservation Project’ in Dolvi being one of the highly appreciated one. In fact, it was also highlighted as a case study in IBBI India Business & Biodiversity Initiative publication 2019.
Mangrove Conservation Project
JSW Steel Dolvi Works depend upon JSW Infrastructure’s Dharamtar Port for its inbound and outbound logistics. The Dharamtar Port is a riverine port situated on the creek which is formed by the flow of River Amba, with uniform depth in the range of 10 m, and has moderate cover of mangroves with mud flats and low-lying, marshy areas on its sides.
Heightened anthropogenic activities such as coastal development, deforestation, urbanisation, conversion into paddy fields and aquaculture ponds, over-harvesting of timber and fuel-wood, and dumping of domestic sewage have resulted in depletion of the mangrove's habitat and impeded its ability to provide ecological services. This also negatively impacts agricultural land due to intrusion of saline water, resulting in loss of crops for the local farmers. Considering these factors as well as the current port operation and future expansion, the role of mangroves in sustaining the creek has become even more crucial.
Taking cognisance of future operational modalities of the port and various impacts of anthropogenic activities, JSW has developed a 3-year Mangrove Restoration Plan in consultation with local stakeholders to mitigate impacts of the port, consider adaptation measures for future climate change impacts, and control intrusion of salt water into the agricultural lands.
The project was started in 2016, covering 5 contiguous villages and impacting around 16,500 fishermen and farmers from 6 group Gram Panchayats. The project was planned for three years and bifurcated in phases as summarised below.
- Plantation of 3,00,000 saplings on a 60-hectare area with an investment of INR 283.35 lakhs
- 3 awareness- cum- training sessions for local stakeholders
- Construction of embankment around the 5,000-hectare land to control intrusion of saltwater into agricultural land with an investment of INR 134 lakhs
- Plantation of 1,05,000 saplings on a 20-hectare area with an investment of INR 21.08 lakhs
- 7 awareness- cum- training sessions for local stakeholders
- Plantation of 4,30,000 saplings
- Target to plant 1 million saplings cumulatively by 2020 (3,00,000 done in 2019-2020)
The initiative of JSW supports India's National Biodiversity Action Plan 2014.
For more details of other biodiversity improvement initiatives of JSW Steel please visit Biodiversity Framework
SDG3: Good Health & Well Being
- JSW aims to contribute to the Goal 3.9 of SDG 3 whose objective is to substantially reduce the number of deaths and illnesses caused due to hazardous chemicals and air, water and soil pollution and contamination.
- The hazardous chemical used or produced by JSW steel are handled with utmost care ensuring no spillage into soil or water, which thereby causes contamination of the surroundings. Such waste materials are disposed as per the Hazardous Waste Management Rule 2016. The effluent generated is treated and reused inside the plant. All of JSW Steel’s manufacturing locations are Zero Liquid Discharge (ZLD) i.e. they do not discharge any liquid effluent outside the plant premises and this water post treatment is either recycled in process or used for domestic purposes or horticulture. For more details on how JSW has implemented ZLD please visit the Waste Water Framework.
- JSW regularly monitors the air emissions to ensure they are under the prescribed limit set by Central & State Pollution Control Board (CPCB & SPCB). In addition to that, JSW also implements various air emission management plans to curb and minimize emissions. Some of them include,;
- Dry fog systems installed at 105 junction houses for fugitive emission control
- More than 3 km of wind curtains laid at raw material handling area
- Installation of scrubbers, electrostatic precipitators and bag filters for emission control
Performance of JSW Steel on Climate Change related Parameters
JSW Steel regularly discloses its sustainability performance and initiatives in its integrated report. These reports are available here