Water Resource

 

Though 71% of Earth’s surface is covered with water, clean and safe freshwater suitable for drinking, cooking, bathing, and growing food is a scarce resource, especially in certain parts of the world. An absence of clean and safe freshwater, and associated problems with sanitation, also significantly increases the risk of illness and diseases, specifically for the young and old. As the population continues to grow and societies develop, the need for water is only going to increase, resulting in greater competition between the demands of industry, agriculture, and domestic households. Operations of JSW are also very much dependent on the availability of water which makes it a material topic for the company. JSW has identified risks associated with water scarcity and is continuously working towards water conservation and reduction of water consumption in its operations. There were no water-related incidents with substantial impacts on costs/revenues in the last four fiscal years.

 

SDG Mapping of JSW Steel’s Initiatives & Projects

SDG 12: Responsible Consumption and Production

 

As a large steelmaker, we depend on natural resources for running our operations. JSW Steel strives to reduce the usage of water not only in its operations but across the complete value chain by adopting water consumption reduction technologies along with water recycling activities.

Production of High Quality Demineralized Water from Sewage Water for Industrial Application at Cold Rolling Mill

  • JSW Steel Vijayanagar has installed various state of the art water treatment facilities which has contributed in making it a benchmark in Specific Water Consumption.
  • The sewage from Shankar Hill township (SHT) and Vijay Vittal (VV) Nagar township was treated in the sewage treatment plant (STP). Membrane Bio-Reactor (MBR) technology was chosen to further improve the STP water. This was used for production of demineralized (DM) water and utilized in the critical processes of the Cold rolling mill (CRM).
  • Reduction in freshwater consumption of 3800m3/d.
  • Reduced power consumption (1.84 Million kWh per year) as compared to the pumping of freshwater from source, leading to a reduction in CO2 emission: approx. 1508 tCO2e/year.
  • No groundwater contamination and no deterioration of soil properties through proper handling of the sewage.


​JSW has not only promoted the responsible usage of water inside its operations but has also done the same in the communities through its CSR activities.

  • JSW Steel Salem Works made provision to provide drinking water throughout the year, besides arranging for water tankers during summers to alleviate perennial water problems faced by the local communities. Apart from this, a long-term water management plan was designed for a five-year horizon. Conserving rain water and creating safe drinking water sources are the pillars of this plan, along with strong partnerships with local NGOs, panchayats and National Bank for Agriculture & Rural Development (NABARD) for successful implementation.
  • JSW Steel Vijayanagar in its commitment to offer sustainable prosperity to the farming community, has treated 17,400 hectares of land through watershed management around the facility.
  • The public toilet constructed at Marine Drive, Mumbai by JSW Foundation was awarded the "Swachh City Award" by the Government of India - Ministry of Housing and Urban Affairs, in recognition for its innovation and best practices. This smart sustainable innovation in public utilities includes 90% less sewage, intelligent sewage disposal, solar powered, vacuum technology that saves 90% of freshwater, weathering steel and unique design.

Details of other such community uplifting initiatives by JSW Steel along with JSW Foundation can be found here.

SDG 9: Industry, Innovation and Infrastructure

 

  • The Company aims to address the efficient use of water with the aid of new and innovative technologies.
    • Vijayanagar plant has put up extensive instrumentation in water flow measurement to monitor water use on an hourly basis.
    • CCTV cameras, additional flow-meters, pH meters, and conductivity meters were installed for effective monitoring of water discharge.
    • Installation of CO2 injection system in Steel Melting Shop-1 (SMS) has improved thickener water quality in Vijayanagar further reducing freshwater consumption.
    • Through the implementation of zero liquid discharge (ZLD) in all the manufacturing units of JSW Steel to reduce the freshwater intake, JSW contributes to SDG 6. All the wastewater generated in the unit is treated through reverse osmosis and reused as process water or in horticulture. More details on the efforts of wastewater reduction and ZLD can be found on Framework Waste Water
    • JSW Steel has made the coke oven operations more water-friendly by replacing Wet Quenching by Coke Dry Quenching to cool hot coke.

Coke Dry Quenching
 

Coke Dry Quenching (CDQ) is a heat recovery system to quench red hot coke from a coke oven to a temperature appropriate for transportation. It is an energy-saving system in which, during the quenching process, the sensible heat of the red-hot coke is recovered and utilized for power generation or as steam. Unlike water quenching, which takes place in a span of a few seconds, CDQ is a gradual coke quenching system and improves coke strength and coke size distribution. CDQ results in cost reduction as even with lower quality coal good quality coke can be obtained. The CDQ coke has a lower moisture content (0.1 to 0.3%) which helps in reducing the Coke ratio of a Blast furnace. CDQ has an added benefit of a Steam generation of around 500-700 kg/t-coke and power generation of 140-185 kWh/t-coke. Due to all the above qualities, JSW is implementing CDQ in its upcoming projects as well and also slowly replacing existing wet quenching units in the existing plants.

SDG 6: Clean Water and Sanitation

 

  • In pursuance of our stated commitments to source water carefully and use it inefficient and innovative ways, we have laid down a few objectives towards which we will strive.  
     
  • Vijayanagar plant is located in a water-scarce area and the unit has implemented numerous measures to secure adequate water for uninterrupted operations.
    • A new Water Reservoir of 1.3 TMC storage capacity ensures an adequate supply of water for uninterrupted operations of the plant, mitigating an operational risk as Vijayanagar is a water-scarce region.
    • Installation of a 500 m3/day Sewage Treatment Plant-Membrane Bio-Reactor (STP-MBR) and biodigester for treatment of sludge from STP and Canteen waste in Vijayanagar. The plant reuses 100% of industrial as well as domestic wastewater after proper treatment. More details of the STP and the initiatives taken to recycle/reuse waste effluent can be found at Waste Water Framework.
       
  • JSW Mines have also done tremendous work in line with wastewater reuse and in-turn conserve water
    • Implementing Scientific Water Conservation Plan
    • Constructing structures that will filter silt and clay which otherwise would have flown to fertile fields rendering it infertile.
    • Reducing the speed of water flow by constructing a series of check dams for reducing erosion and enhancing percolation.
    • Water Storage structures on streams for better water augmentation and its use of ecological purposes.
  • JSW Foundation, the CSR arm of JSW Group, also addresses the importance of responsible use of water and the adoption of water conservation activities by communities to ensure clean and safe drinking water availability for all. Some of the key works done by JSW Foundation are,
    • Restoration of conventional water sources to revive natural water bodies to facilitate effective soil and water conservation.
    • Partnered with the Government of Maharashtra in its ‘Jalyukt Shivar Abhiyan’ to build water conservation structures across villages in the Konkan region. Konkan, unlike many parts of Maharashtra, is not a drought-prone region; but being a coastal region, the water table is salty and being on the receding slope of Sahyadri ranges, the rainwater ends up in the sea. Thus, during summer, villagers of Jaigad and nearby villages complain of water scarcity not only for farming but for drinking purposes. JSW has tried to address this problem through its watershed management initiative. Under this project 21 small and medium-size dams have been constructed to arrest the rainwater and create a reservoir that could be used by villagers throughout the year.

For more details on the areas of focus and initiatives taken by the JSW foundation for the community visit here.

Water Efficiency Management Programs

Understanding how and where water is used within our operations is the foundation of our water efficiency strategy. We conduct thorough water use assessments across all our facilities to identify inefficiencies and potential areas for improvement.

Based on the insights gained from our water use assessments, we implement a variety of actions aimed at reducing water consumption. These include upgrading to water-efficient fixtures and equipment, and optimizing process water use. These actions are carefully selected and tailored to maximize water savings without compromising operational efficiency. Details of initiatives for FY 24 can be found in our Integrated Report.

As part of our commitment to responsible water management, we focus not only on reducing water consumption but also on improving wastewater quality. At our steel manufacturing facilities, we are deeply committed to maintaining our Zero Liquid Discharge status. Furthermore, we operate on-site Sewage Treatment Plants which are designed to ensure that wastewater undergoes proper treatment, enabling us to repurpose the treated water effectively. We continuously monitor our wastewater quality and seek ways to further enhance our treatment processes.

Setting clear, measurable targets is essential to our water efficiency efforts. These targets are regularly reviewed and adjusted to reflect changes in our operations and advancements in water-saving technologies. We are committed to reducing specific water consumption for production from ISPs to 2.21 m3/tcs by 2030.

To further enhance our water efficiency, we have implemented water recycling programs across our operations. This involves capturing and reusing water from various processes, which would otherwise be wasted. By reusing water in this way, we significantly reduce our demand for fresh water and minimize the volume of wastewater generated.

We believe that every employee plays a crucial role in achieving our water efficiency goals. To empower our workforce, we provide comprehensive training programs focused on water efficiency management. By setting clear reduction targets, embracing water recycling, and providing comprehensive employee training, we ensure that water efficiency is a shared responsibility across our organization.

 

Water Risk Management

We have put in place a well-defined, robust Enterprise Risk Management (ERM) framework to identify and manage key risks for achieving our strategic objectives. Identification and assessment of risks are carried out by the individual risk owners at each plant. The ERM framework provides us with a platform to identify risks, discuss risk factors, and prioritize risks - by classifying these into high, medium, and low level risk categories based on the probability of occurrence and the expected impact of identified risks on our business and operations.

In order to evaluate the potential physical climate risks our business may encounter, we also conduct a comprehensive analysis focusing on key climatic parameters that significantly affect water security. This analysis specifically considers rainfall patterns, water stress levels, and projected sea level rise. By examining these parameters in detail, we gain valuable insights into the potential risks associated with water availability and developed strategies to mitigate and adapt to the same.

For Physical Risks, the risk assessment framework is based on two parameters:

  1. Probability of Occurrence: It is defined as the likelihood of occurrence of a given risk at regional (district) level due to projected changes in the climatic parameters.
  2. Expected Impact: It is defined as the extent of impact that our business is likely to witness from an identified risk. Extent of impact is a function of our resilience to identified risks (for each site).

To examine these risks, we have conducted a comprehensive assessment of water scarcity risks using the India Water Tool 3.0. Through this assessment, we have identified that our Vijayanagar and Salem works are situated in regions characterized by high water stress.

We are engaged with CII Triveni water institute to evaluate the water scenario, both inside the plant and its watershed to identify strategies for ensuring water security & towards water neutrality.  The project aims to assess water risks in the present scenario i.e. risks likely arising from land use change scenario for plant’s basin. The study identifies mitigation strategies and interventions to increase in water flow of river over time.

Recognizing the potential financial and strategic impacts of unavailability of proper quantity and quality of water, we have implemented proactive measures to mitigate these risks. This includes implementing water conservation measures, optimizing water usage, exploring alternative water sources, and investing in technologies that promote efficient water management. Details of these initiatives can be found in our Integrated Report for FY 2023-24.

Additionally, we identified the financial impact of the risks associated with water security for the future. The key risks identified were –

  1. Uncertainty in water availability leading to partial or complete shutdown of operations of water dependent processes in the plant.
  2. Changes in water quality due to heavy precipitation-run off of pollutants into water supplies making it unusable.
  3. Droughts causing coastal water resources to become more saline as fresh water supplies from rivers are reduced.
  4. Increased evaporation loss from water storage provisions during heat waves. 

A scenario analysis was conducted to understand the impacts associated with each scenario by 2030 and 2050. IPCC RCP scenarios are used to model the climate related physical risks to enable us to identify all the risks associated with water at all locations & understand the financial impact of each of them. This included both the physical risks and transition risks. Regulatory risks have been identified and mitigating actions towards the same have been identified as per this assessment

We recognize that emerging and identified risks must be mitigated to:

  1. Protect the interests of our shareholders and other stakeholders.
  2. Achieve business objectives.
  3. Enable sustainable growth.

We have implemented water efficient technologies and ensure maintenance of Zero Liquid Discharge at our operations. We are collaborating with external stakeholders such as the government and local communities to ensure that our water use does not compromise water requirements of other stakeholders.

We also envisage that water allocation may be reduced by Govt. as water is scarce. Stringent mandates for freshwater withdrawal are one of the identified Policy Risks. As per National Steel Policy 2017 of Government of India, steel industry is encouraged to conserve water at all levels and pursue plans to reduce specific water consumption per ton of crude steel. The policy also mentions about the formulation and adoption of standards at par with global best practices with regard to water consumption and zero or near zero liquid discharge. Hence, policy changes can be expected to bring in more stringent norms by Ministry of Steel for effective water management. Regulatory risks have been identified and mitigating actions towards the same have been identified as per this assessment.

We also actively participate in meetings with the Ministry of Environment Forest and Climate Change (MoEFCC), which allow us to assess evolving regulatory trends and align them with our forthcoming sustainability policies.

Additionally, our product (steel and steel products) by nature, does not have the possibility for contamination of water, and also does not have any impact on water use efficiency during the product use phase.

 

Water consumption trends of JSW Steel

 

 

Water Consumption in Water Stressed Areas UOM FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Total Net Freshwater Consumption in Water Stressed Areas   (total water withdrawals – total water discharges*) million m3 49.92 49.42 54.93 52.50

* Since JSW Steel operates Zero Liquid Discharge facilities, there are no water discharges at any of our operational sites.