ENVIRONMENT

COMMITTED TO RESPONSIBLE STEWARDSHIP

Our approach

Steel is a resource-intensive industry that has a strong reliance on natural capital. The process of steelmaking involves complex activities that require heavy energy utilisation and effective waste and emissions management. As a large-scale steelmaker, we are mindful of the impact our operations have on the environment and attempt to minimise our environmental footprint throughout our integrated operations.

On the input side, we maintain a sharp focus on sustainable sourcing and resource conservation, adhering to or exceeding compliance on all grounds. During our operations, we strive to achieve maximum energy efficiency and recover waste heat for use in the process.

We are equally aware of our carbon footprint and have taken active steps to reduce CO2 emissions through the deployment of state-of-the-art equipment and technology-led systems. We also restrict our Particulate Matter (PM), SOx and NOx emissions to levels below statutory limits by use of best available technologies (BAT), conscious of their possible impact on the local environment. All our major manufacturing units are ZLD facilities and the process wastewater is treated, recycled and reused after proper treatment.

Our approach to circular economy has set new industry benchmarks with slag being converted into raw material for cement manufacturing, sand making and road building. With such initiatives and novel applications of waste material, we constantly challenge ourselves to achieve better circularity in our operations.

Globally, there is an increasing dialogue regarding the perils of climate change, with the world currently experiencing its wide-ranging effects first-hand. The Paris Agreement and India’s Intended Nationally Determined Contributions (INDC) assume importance in this context. Climate change has emerged as one of the paramount perils of the 21st century, with nations across the world formulating their own policies and also deepening multilateral dialogue and coordination among themselves to arrest its impact on economies and society. Further, there is a call for active decarbonisation by industries such as steel, which have historically contributed to large-scale carbon emissions. Towards this end, the Ministry of Steel in its 2017 policy has included specific reduction of GHG emissions in iron and steel sector to a level of 2.2–2.4 tonnes per tonne of crude steel in the BF-BOF route and 2.6–2.7 tonnes per tonne of crude steel in the DRI-EAF route by 2030. Going forward, India's iron and steel demand is expected to grow significantly by 2050 and therefore, it is essential that Indian steel manufacturers innovate and transition towards a pathway of deep decarbonisation.

As one of the premier players in the Indian steel industry, we consider it our responsibility to proactively consider and manage the challenges arising out of climate change.

TARGET

WE COMMIT TO REDUCING SPECIFIC GHG EMISSIONS (SCOPE 1 AND SCOPE 2) FROM THE THREE INTEGRATED STEEL PLANTS TO

2.0 tC02/tcs

by 2030

WE ALSO COMMIT TO ACHIEVING CARBON NEUTRALITY AT JSW STEEL COATED PRODUCTS LTD. BY 2030

As part of our efforts to remain focused on climate change issues to support delivering our Sustainability Vision, we have established a climate change policy that includes our commitments on the following:

"As the world faces a number of grave threats, it is important that we all step up to the existential challenges, including the biggest and the most insidious one in climate change. In an industry where increasing importance is being placed on the disclosure to inform all stakeholders, JSW is making clear progress showing a path for others to follow. We must accelerate the transition to a #Netzero emissions society to avert the #ClimateEmergency"

Damandeep Singh, Director, CDP India

Notable interventions and intended outcomes aligned to the policy objectives

Key performance indicators

In terms of carbon footprint, JSW Steel has been scored ‘B’ by 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.

GHG EMISSIONS AT JSW STEEL ISPS (STANDALONE)

(‘000 tCO2e)

2.52 tC02/tcs

GHG EMISSION INTENSITY 8.15% REDUCTION AS COMPARED TO LAST YEAR (2.75 tCO2/tcs)

37.6 kg CFC11e

EMISSIONS OF OZONE DEPLETING SUBSTANCES

Climate Action Group

In light of the rapid developments related to climate change within technology, regulations, taxation and stakeholders’ growing expectations, JSW Steel has 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 CAG meets regularly, with primary objectives of deciding on actions on mitigation plans for climate change risks for all operating units, formulation of low carbon strategy, need analysis of research and development, development of targets, and formulation of long-term action plan and policy advocacy with external stakeholders, among others.

We also measure and monitor Scope 3 GHG emissions as a result of business operations. During the reporting period, we have a credit of about 0.85 million tCO2e as per the guidance of the World Steel Association. The inbound and outbound movement of material and employee commute contributed to about 0.87 million tCO2e emissions. Estimation of emissions on account of material movement and employee commute was carried out on the basis of guidance provided in the GHG protocol.

Energy runs industries and economies and uninterrupted energy supply is indispensable to operating a steel business. As the global population continues to grow and technologically develop, demand for (and the price of) energy is bound to increase, resulting in greater competition among industry, transportation, domestic use and others. Improved efficiency in energy use is seen as key in ensuring our long-term capability to satisfy the ever-growing energy demand. As every mode of conventional energy generation results in an environmental impact, there is a growing call for the adoption of renewable energy as well.

We, at JSW, believe that every unit of energy saved is a unit of energy produced. Therefore, we have adopted the most energy-efficient systems and practices in our operations and thus, aim to conserve resources and energy by adopting the best available practices in the industry. We strive to continuously optimise our energy usage and are planning to build infrastructure to produce green electricity as a part of our overall energy portfolio.

As part of our efforts to deliver our Sustainability Vision, we have formulated an energy policy to demonstrate our commitment to energy conservation through:

Notable interventions and intended outcomes aligned to the policy objectives

Key performance indicators

SPECIFIC ENERGY CONSUMPTION (STANDALONE)

(GJ/tonne)

ENERGY CONSUMPTION (STANDALONE)

(million GJ)

ENERGY CONSUMPTION OF SUBSIDIARIES

Earth has a limited supply of natural resources such as metal ores, minerals, precious metals, coke and coal. As the population continues to grow and technologically develop, demand for finite raw materials will only increase, resulting in greater competition between different industries. To mitigate this challenge, improved efficiency in the use of raw materials is a key consideration.

Being aware of the fact that efficient use of natural resources is critical to sustainability, we at JSW Steel are committed to responsible usage of resources and conservation of the environment through scientific and innovative practices. For example, our state-of-the-art coal blend system utilises lower grade coking coal, reducing the wastage of raw material and offsetting the need for higher grade coking coal throughout.

As part of our efforts to deliver our Sustainability Vision, we have formulated an policy to demonstrate our commitment to resource conservation through:

Notable interventions and intended outcomes aligned to the policy objectives

Key performance indicators

SPECIFIC MATERIAL CONSUMPTION (STANDALONE)

(T/T of crude steel)

5.01 MnT

RECYCLED INPUT MATERIALS USED IN PRODUCTION IN FY 2019-20

Even though water is available abundantly across the world, 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 disease. As the global population continues to grow and societies develop, the need for water is continuing to increase, resulting in larger requirement by various sources of consumption.

At JSW Steel, our operations are heavily dependent on the availability of water, which makes it a material topic for us. We have identified risks associated with water scarcity and are continuously working towards water conservation and reduction of water consumption in our operations, especially in water-stressed regions. We have also undertaken requisite aquifer mapping and hydrogeological studies of aquifers in and around our locations.

TARGET

WE COMMIT TO REDUCING SPECIFIC WATER CONSUMPTION FOR PRODUCTION FROM THE THREE INTEGRATED STEEL PLANTS TO

2.41 m3/tcs*

by 2030

*Considering the crude steel production process only.

As part of our efforts to deliver our Sustainability Vision, we have established a policy to demonstrate our commitment to preventing water scarcity through:

Notable interventions and intended outcomes aligned to the policy objectives

Key performance indicators

SPECIFIC FRESHWATER CONSUMPTION (STANDALONE)

(kl/tonne)

This includes water consumption for crude steel production process, CPP, ore beneficiation plant, rolling mills and other ancillary systems inside the plant. The specific water consumption for steel production process is 2.60 kL/t for FY 2019-20.

WATER CONSUMPTION OF SUBSIDIARIES

Globally, and in India, solid waste generated is disposed by diverting them into landfills or for incineration. Apart from requiring fresh resource withdrawal, creation and disposal of waste are found to have a detrimental effect on the natural environment. Contemporary concepts, such as circular economy are thus becoming mainstream, which suggest maximum product utilisation and sustainable waste disposal.

For us at JSW Steel, managing waste in an environmentally friendly, socially responsible, and techno-commercially viable manner is of crucial importance in our steel manufacturing process. At JSW Steel, our sites and activities produce solid waste in various forms and quantities, especially steelmaking slag/ash/slime. Some of this waste can be classified as ’hazardous’ and, as such, can present more significant risks to the wider environment and to the health & safety of people. We have an integrated strategy towards efficient waste management that ensures optimal utilisation of resources and minimal disposal of solid waste that supports a circular economy.

TARGET

WE COMMIT TO ACHIEVING

100%

RECYCLING OF ALL WASTE GENERATED FROM OUR OPERATIONS

by 2030

As part of our efforts to deliver our Sustainability Vision, we have established a policy to demonstrate our commitment to the implementation of the widely used ’waste hierarchy', as follows:

Notable interventions and intended outcomes aligned to the policy objectives

Key performance indicators

TOTAL CO-PRODUCT/WASTE GENERATED (STANDALONE)

(‘000 tonne)

WASTE GENERATED AT SUBSIDIARIES

Feature story

Making circular economy in steel a reality

In building a sustainable future for all, the steel industry has a huge role to play. The high recyclability of steel, combined with its multifarious applications, sets it apart from other materials. Over 50% of all steel consumed in the world finds applications in long-service life areas such as buildings and infrastructure.

This enables steelmakers such as ourselves to examine the ‘resource challenge’ through different perspectives, including securing supply, reducing waste and diminishing environmental pressure on production. These form the context to our approach to creating a circular economy.

Reduce

At JSW Steel, we look at this lever in a two-fold manner:

DECREASING THE AMOUNT OF RESOURCES USED IN THE MANUFACTURING OF STEEL

Towards this end, we minimise the consumption of non-renewable resources from the environment, such as coking coal and constantly upgrade our systems to optimise the use of available material. We also strive to reduce the consumption of energy from non-renewable sources by optimising our processes and repurposing heat loss.

CALIBRATING THE AMOUNT OF STEEL USED IN PRODUCTS

With the help of our in-house R&D team, we constantly innovate to create newer grades of steel, which have specific properties such as lightness, durability and strength. These value-added products may contain lesser amount of steel while possessing better qualities suited for various applications.

In line with the objectives of Worldsteel (of which we are a member), we engage the levers of ‘4Rs’—Reduce, Reuse, Remanufacture and Recycle—to mitigate the resource challenge and progress on all fronts.

Reuse

In a circular economy, product reuse needs to be considered at the design stage itself so that post the intended application of a product/resource, it can be repurposed quickly and efficiently for secondary uses.

The by-products that emerge from steelmaking can be fed as raw material for ancillary activities or for other industries and applications.

During our operations, we generate a large quantity of slag from the BF and SMS. While the BF granulated slag is entirely sold to cement companies, slag generated in the Energy Optimising Furnace (EOF) is used in-house for road formation and is also sold to cement industries. Collaborative efforts with R&D to utilise EOF slag for paver block manufacturing has further widened its utility. Our Salem unit has also installed a paver block machine, that utilises a unique blend developed in-house. Blocks made using this machine and blend have been used for paving in various areas in the plant township. Further, the blend has been accorded a patent by the Controller General of Patents, the Government of India.

JSW Steel uses EOF slag (20%) as a coolant in EOF process. It is also used in sinter plant as a hearth layer (70%) to replace the raw material in smaller proportions.

Besides slag, dust from the bag filters and cyclones as well as filter cake from the Gas Cleaning Plant (GCP) are completely recycled in the sinter plant. Fly ash generated from the power plant is sold to fly ash brick manufacturing units. Another innovative application of fly ash is its utilisation in the coke oven plant as a top layer in coke making to minimise burning loss.

"Every piece of steel can eventually be recycled to
meet the growing global demand for new steel".
Worldsteel

Remanufacture

The various steel grades and value-added products we make are designed to be remanufactured into various new applications, as the life of the primary application expires. This ensures that we do not need to produce the specific components again to match the requirements of new applications. For example, machinery, engines, motors and applications are heavily using remanufactured steel components.

BENEFITS OF REMANUFACTURING

Economies in production

Affordability to customer

Up to 80% energy saving in manufacturing the product

Large-scale conservation of raw materials

Recycle

The recyclability of steel is its most defining contribution to the circular economy. Steel as a material maintains ~86% recyclability and a substantial quantity of steel demand can be met using converted steel scrap. With the use of the right processes and scientific methods, steel scrap belonging to lower value steel products can be converted into high-value steel as well.

STEEL ATTRIBUTES

Infinite recycling without loss of properties

Permanent material

Easy magnetic separation and recovery

Raw materials conservation

70% energy saving

Job creation

At JSW Steel, ~10% of our raw material can be attributed to recycled materials. We use all the scrap we produce in our processes. Further, we are also engaging with the Government of India to trace and make available scrap from the end-of-life products, so that they can come back to us and we can recycle them for further steel production.

Feature story

A conscious call to eliminate Single-use plastic

Globally, there is a rising threat caused by Single-use Plastic (SUP), which endangers biodiversity and disrupts the marine ecosystem. In India alone, 9.46 MnT of plastic waste is generated annually and up to 40% of this waste goes untreated and unrecycled. To battle this menace and do our part, we, at JSW Group, undertook an industry-first initiative to eradicate SUP from all our key locations, starting 02 October 2019.

There is a significant scope for reduction and alternative usage of plastic in our steel operations. Since plastics are derivatives of petroleum products, intrinsically they exhibit calorific value similar to coal. There is potential in the resource-intensive steel industry to convert waste plastic into useful products such as energy, coke, light oils, gases, etc. by using it as a raw material in the coke ovens without any significant modifications in the existing plant. Co-processing them within our plants is thus a viable avenue that we are pursuing, which will not only ensure better disposal of plastics, but also partially offset the need for fresh coal. It will also result in lesser CO2 emissions.

We are also mindful of the plastic being used in the packaging of our products, particularly for moisture resistance and impact protection during transit. Currently, we have charted a multi-phased roadmap to develop alternatives and eliminate the usage of UNEP-designated SUP in packaging. This is aimed at JSW Steel progressing towards being a plastic-positive organisation, while retaining packaging quality.

We are committed to completely banning SUPs and progressively reducing the usage of other types of plastic products and packaging from all our owned entities in order to reduce our plastic footprint.

Over a span of eight months (October 2019 to May 2020), all our targeted locations banned the use of SUPs either by complete elimination or by replacement with sustainable alternatives. Manufacturing locations, through internal assessment and dedicated interventions, phased out the intended SUPs.

Key actions taken and current progress

  • All manufacturing locations banned SUP inside plant premises
  • Employees reached out and engaged to act through awareness meetings and programmes; they were requested not to use any SUP item inside the JSW premises as well as at home.
  • Posters on SUP ban were displayed in offices and on notice boards

KEY UMBRELLA INITIATIVES

  • Distribution of glass/steel bottles to all employees
  • Procurement of glass jug and tumblers for conference rooms
  • Replacement of plastic dustbins with steel dustbins and plastic folders with paper folders
  • Items made of plastics apart from SUPs were also targeted such as plastic folders, plastic stationery, plastic decorative items, plastic dustbins, food-grade plastic water bottles, and plastic chairs. The future procurement of these items is proposed to be stopped and in-stock items are targeted to be replaced in due time
  • Many plants came up with innovative ideas to tackle SUP-related issues specific to their locations
  • Procurement and use of PET water bottles, plastic carry bags, and plastic and thermocol cutlery was prohibited
  • Plant canteens were also made aware of the hazards of SUP and were asked not to use it henceforth
  • Plant administration teams found sustainable alternatives to banned plastics. Some locations allowed plastic bags greater than 50 microns, while others moved towards adopting alternatives made of paper or wood
  • Internal assessment of all targeted locations was carried out in 2020 to check for any non-conformities and provide recommendations for improvement. Good practices encountered during internal audits were also shared across all locations for others to emulate

The impacts of industrial waste water can be many and varied, depending on the pollutants that are present in the water, the quantities involved and the nature and means of how waste water makes its way back into the wider environment. Proper management of waste water is essential to contain ground contamination and pollution, and arrest adverse impact on all living beings.

TARGET

TO REMAIN AND MAINTAIN ZERO LIQUID DISCHARGE STATUS

As part of our efforts to deliver our Sustainability Vision, we have established a policy to demonstrate our commitment to the prevention, effective treatment and safe, responsible disposal of waste water.

Notable interventions and intended outcomes aligned to the policy objectives

ZERO LIQUID DISCHARGE

We have installed ZLD facilities across all our steel manufacturing locations. ZLD is an advanced water treatment process that purifies and recycles the waste water and limits waste water discharge. Key areas where waste water is reused include slag cooling and slag granulation plant. At JSW Steel, we draw the following benefits from the ZLD facilities:

  • Lowered waste volumes to decrease the cost associated with waste management
  • Recycling water water on-site, thus lowering water acquisition costs and risk
  • Recycling on-site, resulting in fewer treatment needs, versus treatment of effluents required to meet stringent environmental discharge standards
  • Improvement in environmental performance

SEWAGE TREATMENT PLANT (STP)

Apart from industrial effluents, our locations also manage sewage through STPs and recover quality water through Reverse Osmosis (RO). This water is then used in horticulture. The water thus recovered is also supplied for irrigation purposes to water-starved regions around our units.

Key performance indicators

TOTAL WATER REUSED AND RECYCLED (STANDALONE)

(‘000 kl)

Deterioration of air quality, acidification, forest degradation and public health concerns have led to local and international regulations to control emissions of pollutants such as PM, SOx and NOx. At JSW Steel, we are cognisant of the adverse effects of these pollutants on local ecosystems, air quality, habitats, agriculture, and human and animal health.

We firmly believe that lesser emissions of regulated pollutants have a significant bearing on the health of our employees and the communities living around our units. It is imperative that we maintain strict adherence to emission norms to continue and enhance our relationship with them. By virtue of the industry that we operate in, we generate different polluting air emissions, which have been controlled according to prescribed regulatory norms. However, we recognise that we have definite moral and social obligations to do more in this respect.

In pursuance of our stated commitment to prevent, abate and mitigate our emissions to air, we have revisited our policy on air emissions management, with a focused approach towards addressing point and non-point source emissions. Point source emissions i.e. stack emissions are those released at height from identifiable sources and are dispersed in the atmosphere, while non-point emissions i.e. diffuse and fugitive emissions originate from material handling, stockpiling and transport activities. Interventions to address both these types of emissions have been established at our units, aligning to the statutory laws with regard to point emissions and clamping down on local nuisance caused by non-point emissions.

WE COMMIT TO REDUCING SPECIFIC DUST EMISSIONS TO

0.28 kg/tcs

SPECIFIC EMISSIONS OF OXIDES OF SULPHUR TO

1.69 kg/tcs

AND SPECIFIC EMISSIONS OF OXIDES OF NITROGEN TO

1.64 kg/tcs

FOR THE THREE INTEGRATED STEEL PLANTS

by 2030

Notable interventions and intended outcomes aligned to the policy objectives

Key performance indicators

OTHER EMISSIONS (STANDALONE)

(kg/tcs)

Particulate matter (PM)

NOx

SOx

OTHER EMISSIONS AT SUBSIDIARIES

(kg/tcs)

Biodiversity represents the variety of flora and fauna on the Earth that sustain ecosystems and keep them balanced and thriving. However, the world’s critical biodiversity is threatened in many ways, including deforestation and habitat loss, overexploitation, the presence of invasive species, pollution and the impact of climate change. If left unchecked, these threats will eventually lead to the extinction of countless unique species and the loss of irreplaceable natural habitats. This will potentially lead to the collapse of whole systems, resulting in a range of impacts on individuals and societies, including loss of food supplies on which millions rely.

JSW Steel has wide-ranging operations across mining and manufacturing, and some of our units are located in ecologically sensitive regions. Cognisant of this fact and with a view to co-exist sustainably with the natural environment, we have taken several proactive steps to study and manage biodiversity in and around our direct impact zones. We undertake specific projects through JSW Foundation, involving communities for self-sustenance and employment generation. We are also a Working Group (WG) member of the India Business and Biodiversity Initiative (IBBI) Chapter of CII-CESD.

WE COMMIT TO ACHIEVING

'NO NET LOSS'

OF BIODIVERSITY AT ALL OUR OPERATING SITES

by 2030

As part of our efforts to deliver our Sustainability Vision, we have formulated a policy to demonstrate our commitment to biodiversity conservation.

Our way forward in biodiversity management includes:

  • Alignment to 12 National Biodiversity Targets (NBTs) based on 20 Biodiversity Targets of the Convention on Biological Diversity (CBD) as a part of the National Biodiversity Action Plan
  • Risk-based approach for making biodiversity an integral part of business decision-making
  • Continue with the journey of site-specific assessment of biodiversity impact with International Union for Conservation of Nature (IUCN)

"JSW Steel recognises that the growth of industry should not have a negative effect on the Natural Capital situated around it and has consistently taken steps to replenish the biodiversity in the ecologically sensitive regions. The Company, through its association with IUCN, is committed to increasing its efforts to protect and preserve the biodiversity of this nation." Vivek Saxena, International Union for Conservation of Nature (IUCN)

Notable interventions and intended outcomes aligned to the policy objectives

Key performance indicators

253

NUMBER OF IUCN RED LIST SPECIES IDENTIFIED IN VIJAYANAGAR

31,305

TREES PLANTED DURING FY 2019-20

MANGROVE PLANTATION

JSW Steel has signed two Memoranda of Understanding (MoUs) with Bombay Natural History Society (BNHS), Mumbai and People For Environment (PFE), New Delhi for biodiversity assessment in the surroundings of its Vijayanagar complex.

In the recent past, we have acquired the licence to operate 10 mines in India, spread over the states of Karnataka and Odisha. In line with the guidelines of the Indian Bureau of Mines, we have developed a mining plan, and have commenced scientific and environmentally conscious mining.

During the operation of industrial sites and processes, there is potential for noise from machinery and vehicles, odours, smoke, fumes, dust, etc. to be generated. In some instances, these emissions can have a negative impact on neighbours, if the local considerations are not taken into account. If not resolved quickly, such issues can result in a strained relationship between the parties involved and can, in some instances, result in legal proceedings.

At JSW Steel, we consider it our moral and social duty to ensure that the local population is not negatively impacted by our operations, and have adopted a four-step strategy towards local considerations that include identification, prevention, feedback and monitoring.

As part of our efforts to deliver our Sustainability Vision, we have established a policy to demonstrate our commitment to local considerations.

Notable interventions and intended outcomes aligned to the policy objectives