Climate Change Data

Ambuja Cements Limited

Climate Impact & Sustainability Data (2016, 2019, 2022-04 to 2023-03, 2023-04 to 2024-03)

Reporting Period: 2016

Environmental Metrics

Total Carbon Emissions:13,543,643 tCO2e/year (Scope 1)
Scope 1 Emissions:13,543,643 tCO2e/year
Scope 2 Emissions:883,894 tCO2e/year
Scope 3 Emissions:2,075,625 tCO2e/year
Renewable Energy Share:6.5%
Total Energy Consumption:18,155,555 MWh/year
Water Consumption:6,617,731 m3/year
Waste Generated:314,942 tons/year
Carbon Intensity:543 kg CO2/t cementitious material

ESG Focus Areas

  • Climate Change
  • Circular Economy
  • Water & Nature
  • People & Communities
  • Health and Safety

Environmental Achievements

  • Reduced net specific CO2 emissions by 29.7% from 1990 levels
  • Became 5.5 times water positive
  • Co-processed 51,405 tonnes of plastic waste (1.54 times the plastic used in cement bags)
  • Used 2.6 lakh tonnes of alternative fuels

Social Achievements

  • ACF reached over 1.8 million people across 21 locations
  • ACF established 17 Skill and Entrepreneurial Development Institutes (SEDIs), training over 30,000 rural youth
  • Supported 6,107 households for toilet construction
  • Improved overall safety performance, significantly reducing onsite injuries

Governance Achievements

  • Improved Dow Jones Sustainability Index score
  • Won CII-ITC Sustainability Award
  • Implemented an effective Health & Safety Improvement Plan (HSIP)

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Reduce net specific CO2 emissions from cement plants by 40% (Vs. 1990) by 2030
  • Use 13.5 million tonnes of waste-derived resources per year by 2030
  • Reduce freshwater withdrawal in cement operations by 15% by 2030
  • Improve water balance index to 6 by 2030
  • Reduce LTIFR <0.20 by 2030
  • Reduce TIFR by 50% by 2030
Short-term Goals:
  • Reduce net specific CO2 emissions from cement plants by 33% (Vs. 1990) by 2020

Environmental Challenges

  • Energy costs (coal price escalations, stressed supplies)
  • Water availability (unpredictable weather patterns)
  • Climate change (physical risks to coastal facilities, water scarcity)
  • Increasing logistics expenses
  • Mining challenges (land acquisition, groundwater intersection, mine rehabilitation)
  • Social unrest due to income inequalities in rural areas
Mitigation Strategies
  • Reducing traditional energy consumption (greener fuels, blended cements)
  • Water conservation (tracking water withdrawal, monthly Water Management Reports)
  • Climate change mitigation (reducing clinker factor, improving thermal efficiency, waste heat recovery, alternative fuels)
  • Strengthening distribution network, optimizing distribution costs
  • Sustainable mining practices (surface miners, controlled blasting, overland belt conveyors, mine rehabilitation)
  • Community engagement (Community Advisory Panels, Social Engagement Scorecard, Site Specific Impact Assessments)

Supply Chain Management

Supplier Audits: 4% of high-risk, high-spend suppliers in 2016

Responsible Procurement
  • Sustainable Procurement Initiative (SPI)
  • Supplier Code of Conduct (SSC)
  • Third-party assessment (Avetta)

Climate-Related Risks & Opportunities

Physical Risks
  • Rise in sea levels affecting coastal facilities
  • Water availability issues in water-scarce regions
Transition Risks
  • Dynamic fuel market
  • Stringent environmental regulations
Opportunities
  • Use of alternative fuels and raw materials
  • Renewable energy investments
  • Energy efficiency improvements

Reporting Standards

Frameworks Used: GRI Standards (Comprehensive)

Certifications: ISO 14001, OHSAS 18001

Third-party Assurance: Emergent Ventures India

UN Sustainable Development Goals

  • Goal 1
  • Goal 2
  • Goal 3
  • Goal 4
  • Goal 5
  • Goal 6
  • Goal 7
  • Goal 9
  • Goal 10
  • Goal 11
  • Goal 12
  • Goal 13
  • Goal 15
  • Goal 17

Details provided in the report on how various initiatives contribute to the UN SDGs.

Sustainable Products & Innovation

  • Fly ash-based PPC cement
  • Composite cement
  • Alccofine micro-fine cement
  • Dirk brand classified fly ash

Awards & Recognition

  • CII-ITC Sustainability Award
  • FICCI CSR Award
  • Golden Lion at Cannes
  • Rajasthan Energy Conservation Award
  • Bombay Chamber Civic Award
  • Sustainable Energy Development Award
  • Gold Award at Greentech Safety Awards
  • Best Channel Loyalty Programme Award
  • Electrical Safety Award
  • Institute of Internal Auditors’ Excellence Award

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:14,523,738 tCO2e/year (Scope 1)
Scope 1 Emissions:14,523,738 tCO2e/year
Scope 2 Emissions:551,219 tCO2e/year
Scope 3 Emissions:1,973,623 tCO2e/year
Renewable Energy Share:7.9%
Total Energy Consumption:18,713,323 MWh/year
Water Consumption:6,512,930 m3/year
Waste Generated:414,287 tons/year
Carbon Intensity:530.7 kg CO2e/tonne of cement

ESG Focus Areas

  • Climate and Energy
  • Circular Economy
  • Environment
  • Community

Environmental Achievements

  • 31.3% reduction in specific net CO2 emissions per tonne (using 1990 baseline)
  • 5.4% Thermal Substitution Rate attained through waste fed into kilns and captive power plants
  • 94,570 tonnes of plastic waste co-processed in kilns (2.7 times the HDPE bags used for packaging)
  • 8.7 million tonnes of waste-derived raw materials (fly ash, slag, etc.) used, bringing down the clinker factor to 64.9%
  • Eight times Water Positive in 2019

Social Achievements

  • Ambuja Cement Foundation (ACF) expanded social programs to 32 districts across 11 states, impacting over 2.6 million people
  • ACF spent ₹62.57 crore on CSR (approximately 5% of the average net profit over the last three years)
  • 27.6% reduction in total onsite injuries
  • Significant progress in road safety: 39% drop in incidents and 46% reduction in injuries

Governance Achievements

  • 89% average board attendance in 2019
  • MD & CEO's variable compensation linked to ESG performance (15% weightage)
  • Ethical View Reporting Committee received 51 complaints, investigated 34

Climate Goals & Targets

Long-term Goals:
  • Net positive impact on biodiversity by 2030
Medium-term Goals:
  • Achieve 33% reduction in specific CO2 emission per tonne of cement (against 1990 levels) by 2020; 40% by 2030
  • Increase use of waste-derived resources to 9 million tonnes by 2020; 13.5 million tonnes by 2030
Short-term Goals:
  • Reduce specific freshwater withdrawal by 15% by 2030

Environmental Challenges

  • Slow GDP growth rate (5%) due to NBFC crisis and low private sector participation in construction
  • Staggered monsoon, slowdown in construction projects, and shortage in raw materials
  • Balance between capacity utilization rate and commissioning of new capacity in the Indian cement sector
  • Increasing logistics expense and distribution cost
  • Challenges associated with mining operations: land acquisition, mineral distribution, mineral quality, mine rehabilitation, biodiversity, and groundwater table intersection
  • Widespread income inequalities in rural communities
  • Demographic changes due to migrant workers
  • Changes in regulations (environment, tax, competition)
  • Scarcity of natural resources (limestone, coal, minerals)
  • Climate change: physical risks (extreme weather events) and transition risks (regulatory changes, market shifts)
Mitigation Strategies
  • Reducing energy consumption through process improvements, greener fuels, and blended cements
  • Diversifying fuel mix/sources, coal block acquisition, use of alternative fuels, and long-term supply contracts
  • Water conservation, utilization, and harvesting; target to reduce specific freshwater withdrawal by 15% by 2030
  • Sustainable construction with internal product development, R&D, and technical services; 90% of product portfolio is low-carbon
  • Optimizing distribution costs through sea transportation and collaboration with Indian Railways
  • State-of-the-art mining techniques, environment-friendly and safe mining practices; mine rehabilitation and biodiversity protection
  • Institutionalised community engagement through Community Advisory Panels; Social Engagement Scorecard
  • Compliance in all areas; new emission control systems installed
  • Circular economy model using waste-derived resources; target to increase use to 13.5 million tonnes by 2030
  • Four focus areas for low-carbon operations: reduction in clinker factor; improving energy efficiency and process technology; waste heat recovery; and optimizing fuel composition; investment in renewable energy projects

Supply Chain Management

Supplier Audits: 518 (46.5%) of critical suppliers assessed for sustainability in 2019

Responsible Procurement
  • Code of practice encouraging fair, open, and transparent competition
  • Supplier Code of Conduct (SCC) covering SA 8000 and EMS ISO 14001 standards
  • Supplier CSR and OH&S management system questionnaire

Climate-Related Risks & Opportunities

Physical Risks
  • Increase in frequency and intensity of precipitation/extreme weather events
Transition Risks
  • Increase in carbon tax on coal
  • Renewable Purchase Obligations (RPO)
  • Volatility in fossil fuel prices
  • Increase in prices of Alternative Fuel and Raw Materials (AFR)
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards (Comprehensive)

Certifications: ISO 14001 (Environment Management System), ISO 50001 (Energy Management System)

Third-party Assurance: Third-party assurance provider (name not specified in provided text)

UN Sustainable Development Goals

  • Goal 7 (Affordable and clean energy)
  • Goal 13 (Climate action)
  • Goal 6 (Clean water and sanitation)
  • Goal 8 (Decent work and economic growth)
  • Goal 1 (No poverty)
  • Goal 2 (Zero hunger)
  • Goal 3 (Good health and well-being)
  • Goal 4 (Quality education)
  • Goal 5 (Gender equality)

The report maps various initiatives to these SDGs.

Sustainable Products & Innovation

  • Ambuja Tilocol (Tile adhesive)
  • ColorSave (wall putty)
  • Ambuja Plazto (Readymix plaster)
  • Ambuja SeelanSeal (Integral water-proofing compound)
  • Ambuja Kawach (premium water-proof cement)
  • PuraSand
  • AAC Cool Wall Blocks
  • Ambuja Roof Plus
  • Composite Plus

Awards & Recognition

  • Ranked 4th globally in Dow Jones Sustainability Index 2019
  • Ranked 6th in Responsible Business Ranking 2019
  • Seven Domain excellence awards in Environment Management and CSR at CII-ITC Sustainability Award 2019
  • Vasundhara Award 2019 from Maharashtra Government
  • CII National Award 2019 as Energy Efficient Unit
  • Best in Class Logistics Safety award
  • Warehouse and Logistics Excellence – Manufacturing Company of the Year 2019 award
  • Two MarTech Leadership Awards 2019 for Ambuja Brahmaand

Reporting Period: 2022-04 to 2023-03

Environmental Metrics

Scope 3 Emissions:2,111,065.60 tCO2e (Purchased goods and services) + 1,552,704 tCO2e (Fuel and energy) + 750,884 tCO2e (Upstream transport) + 1,023.51 tCO2e (Business travel) + 10,205.60 tCO2e (Employee commuting) + 367,572 tCO2e (Downstream transport)
Water Consumption:2.227 Million m3 (FY2022)

ESG Focus Areas

  • Climate Change
  • Water Management
  • Circular Economy
  • Biodiversity
  • Diversity and Inclusion
  • Human Rights
  • Health and Safety
  • Stakeholder Engagement
  • Risk Management
  • Supplier ESG

Environmental Achievements

  • Reduced Scope 1 and Scope 2 GHG emissions by 21% per ton of cementitious materials by 2030 from a 2020 base year (target)
  • 86% share of products are blended cement, resulting in 7,362,819 tCO2e emissions avoided
  • Increased use of waste derived resources (target of 21 million tonnes by 2030)

Social Achievements

  • Implemented several wellbeing programs for employees including sports and mental health initiatives
  • Provided 4.8 hours of average training per employee
  • Achieved an engagement rate of 4.03 out of 5 in a Gallup engagement survey

Governance Achievements

  • Established a Corporate Responsibility Committee (CRC) overseeing sustainability and ESG performance
  • Implemented a robust risk management process integrated into the enterprise risk management system
  • CEO compensation linked to Cash Flow, RoC, and EBITDA targets

Climate Goals & Targets

Long-term Goals:
  • Net-Zero emissions (implied)
Medium-term Goals:
  • Increase the share of waste derived resources to 21 million tonnes by 2030
  • Increase WHRS capacity of 42 MW, provision to utilize 50% AFR and increase the share of renewables
Short-term Goals:
  • Reduce Scope 1 and Scope 2 GHG emissions by 21% per ton of cementitious materials by 2030 from a 2020 base year

Environmental Challenges

  • Volatility of energy prices and availability of alternative fuels
  • Water scarcity in some operating locations
  • Climate change impacts on supply chain and operations
  • Meeting stakeholder expectations regarding decarbonization
  • Depletion of natural resources
Mitigation Strategies
  • Developed and validated Science Based Targets (SBTi) aligned with the Well-Below 2 Degree Scenario (WB2DS)
  • Increasing share of blended cement
  • Increasing use of waste derived resources
  • Climate risk management process integrated into enterprise risk management system
  • Adaptation plan to mitigate physical climate risks

Supply Chain Management

Responsible Procurement
  • On-site evaluation of vendors on health and safety and compliance to labor laws
  • Vendor screening based on country of operations and risk categorization
  • Continuous review and alignment to Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Sea level rise
  • Temperature rise
  • Heat waves
  • Severe weather events
  • Natural disasters
  • Water scarcity
Transition Risks
  • Volatility of energy prices
  • Availability of alternative fuels
  • Evolving regulatory landscape
  • Increasing price of traditional fuels & alternative binders
  • Meeting stakeholder expectations regarding decarbonization
Opportunities
  • Development of low-carbon products/solutions

Reporting Standards

Frameworks Used: TCFD, SBTi

Sustainable Products & Innovation

  • Blended cements

Reporting Period: 2023-04 to 2024-03

Environmental Metrics

Total Carbon Emissions:14,459,785 tCO2e/year (Scope 1+2+3)
Scope 1 Emissions:14,459,785 tCO2e/year
Scope 2 Emissions:589,017 tCO2e/year
Scope 3 Emissions:6,373,975 tCO2e/year
Renewable Energy Share:19.1% of total energy use
Total Energy Consumption:19,536,346 MWh/year
Water Consumption:5,644,386 m3/year
Waste Generated:286,114.66 tons/year
Carbon Intensity:559 kg CO2e/tonne of cementitious material

ESG Focus Areas

  • Climate and Energy
  • Circular Economy
  • Water and Nature
  • People and Community

Environmental Achievements

  • Reduced specific freshwater consumption from 64 to 44 litres/ tonne of cementitious material
  • Achieved 11x water positive
  • 8x plastic negative by co-processing of plastic waste
  • Blended cement accounting for over 85% of production, reducing carbon footprint by 30%
  • 7.76% Thermal Substitution Rate (TSR) achieved through co-processing of alternative fuels

Social Achievements

  • Launched ‘BeConnected’ initiative to empower women
  • CSR initiatives benefiting more than 4.67 million people
  • Implemented comprehensive employee support programs
  • 77% placement rate achieved for trainees in skill development programs
  • Established 8 women’s federations with over 22,026 members

Governance Achievements

  • Received a ‘Good’ rating in the Indian Corporate Governance Scorecard (2023) by IIAS
  • Zero cases of bribery, corruption, or unethical conduct reported
  • Zero breaches of Code of Conduct reported
  • Implemented robust ESG governance framework

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050
Medium-term Goals:
  • Achieve 30% TSR by 2030
  • Increase green power share to 60% by FY 2027-28
  • Plant 2.42 million trees by 2030
Short-term Goals:
  • Reduce specific thermal energy consumption to 710 kCal/kg of clinker by 2030

Environmental Challenges

  • Maintaining market position in a dynamic industry environment
  • Compliance with changes in the regulatory landscape
  • Health and safety priorities
  • Fuel and raw material security challenges
  • Cybersecurity threats
  • Increased carbon pricing regulations
  • Shift towards sustainable building materials
  • Expectations of faster career shifts
  • Climate-exacerbated logistic breakdowns
Mitigation Strategies
  • Capacity expansion to 140 MTPA by FY 2027-28
  • Investment in innovation and digitization
  • Systematic review of systems, processes, and procedures to identify and address gaps in health and safety
  • Optimizing fuel mix, enhancing plant efficiency, and increasing the use of alternative energy sources
  • Securing adequate limestone resources
  • Increasing the share of renewable energy and fuels in the portfolio
  • Focusing on reducing process emissions, 96% of the product portfolio comprises blended cement
  • Positioning as an employee-friendly workspace with a higher focus on wellbeing, equal pay, and equal opportunity
  • Investing in training programs for regular upskilling and offering internal transfer options for employees
  • Increasing supplier base with higher procurement from local suppliers
  • Diversifying logistics routes and introducing new modes of transportation

Supply Chain Management

Supplier Audits: 114/year

Responsible Procurement
  • Supplier Code of Conduct
  • Supplier ESG Assessment
  • Local procurement (93% from within India)

Climate-Related Risks & Opportunities

Physical Risks
  • Pluvial flooding
  • Cyclone
  • Wildfire
  • Extreme Temperature
  • Water Stress
Transition Risks
  • Policy and Legal
  • Technology
  • Market
Opportunities
  • Use of lower emission sources of energy

Reporting Standards

Frameworks Used: GRI 2021 Universal Standards, UNGC, SASB, WEF-core metrics, UN SDGs, GCCA Sustainability Charter, TCFD, IFRS S2

Certifications: ISO 9001:2015, ISO 50001:2018, ISO 14001:2015, ISO 45001:2015, ISO 45001:2018

Third-party Assurance: Intertek India Private Limited

UN Sustainable Development Goals

  • Goal 6 (Clean Water and Sanitation)
  • Goal 7 (Affordable and Clean Energy)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 9 (Industry, Innovation and Infrastructure)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)
  • Goal 15 (Life on Land)

Initiatives contributing to SDGs detailed in the report

Sustainable Products & Innovation

  • Blended cement products (Ambuja Cement, Ambuja Plus, Ambuja Kawach, Ambuja Compocem)

Awards & Recognition

  • India’s Most Trusted Cement Brand (TRA Research)
  • India’s Top 50 Most Sustainable Companies (BW Businessworld)
  • India’s Top 50 companies contributing to inclusive growth (SKOCH)
  • Best Customer & Influencer Engagement Initiatives Award
  • Best Customer Service Award