Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Labour
• Human Rights

Environmental Achievements

• Commissioning of a pilot project for carbon sequestration by algae at the CPP
• Rainwater harvesting in all units
• Zero effluent discharge in all units
• 50.4 MW Wind Power Plant commissioned in Gandikotta, AP
• Highest ever production since inception at Bauxite Mines: 54.19 lakh MT
• Highest ever production since inception at Alumina Refinery, alumina hydrate production of 18.02 lakh MT

Social Achievements

• Invested Rs. 30.99 crores in CSR activities
• 401 children were enlisted from tribal dominated peripheral villages of Damanjodi for residential education
• Operating six Mobile Health Units (MHUs) in the periphery villages of its units, covering 43 villages at S&P Complex Angul & 142 villages at M&R Complex Damanjodi.
• All production units comply with SA 8000 standard

Governance Achievements

• Adoption of the Integrity Pact Programme in September 2012
• Received an 'Excellent' rating with a score of 1.50 for the year 2012-13 based on MoU performance
• All modules under ERP including HR, e-procurement and service contracts were implemented

Climate Goals & Targets

Environmental Challenges

• Falling price of aluminum
• Subdued market sentiment
• Prevalent lower Alumina Tri Hydrate (ATH) content in feed bauxite
• Fluctuations in US Dollar/Euro, rising oil & coal prices, power shortages and weak growth in traditionally strong economies
• Fluctuation in LME prices, exchange rate, rising oil and coal prices, restricted availability of linkage coal, uneconomical power purchase

Mitigation Strategies

• Implementing an Integrated Management Systems (IMS) on Quality (ISO 9001), Environment (ISO 14001), Health & Safety (OHSAS 18001) in all units
• Energy Management System (ISO 50001) implemented at the Captive Power Plant
• Investments in renewable energy and power sector
• Initiatives to reduce energy consumption through technological innovation and use of energy-efficient technologies
• Adequate steps to address the various risks that have been identified

Supply Chain Management

Responsible Procurement

• SA 8000 based questionnaire for screening vendors

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3.1

Certifications: ISO 9001, ISO 14001, OHSAS 18001, SA 8000, ISO 50001

Third-party Assurance: DNV GL (DNV Business Assurance India Private Limited)

Sustainable Products & Innovation

• Zeolite-A

Awards & Recognition

• Dun & Bradstreet's Best PSU Award
• Performance Excellence Award
• Best Mother Plant award
• Think Odisha Leadership Award
• Non-ferrous Best Performance Award
• IPE-CSR Corporate Governance Award
• Global HR Excellence Award
• Caring Company Award
• EEPC INDIA (Eastern Region)’s Gold Trophy
• Star Performer Award
• Gem Granites Environment Award

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social
• Energy

Environmental Achievements

• Achieved Perform, Achieve & Trade (PAT) cycle 1 targets for Alumina Refinery and S&P Complex. All three units (CPP, Alumina Refinery, and Smelter) certified to ISO 50001.
• Successful commissioning of 260 KWp rooftop solar power system, generating 167 MWh energy.
• 181 MU of wind energy generated (highest ever).
• 20.38 Ha of mined-out areas reclaimed (cumulative 263.30 Ha).

Social Achievements

• Spent Rs.19.09 crore towards Corporate Social Responsibility (CSR), exceeding targets set by the Ministry for constructing toilets in schools.
• Launched ‘Nalco ki Ladli’ Scheme to promote girl students from BPL families.
• Successfully operated 4 Mobile Health Units (MHUs) in Damanjodi and 3 MHUs & 1 OPD in Angul, benefiting 1,06,272 patients.
• Sponsored 655 students from peripheral villages to residential schools.

Governance Achievements

• Rated 'Excellent' as per the Memorandum of Understanding (MoU) with the Government of India.
• Implemented and certified Energy Management System (EnMS) conforming to ISO 50001 at Smelter.
• Developed Succession Planning Policy and conducted Employee Satisfaction Survey.

Climate Goals & Targets

Environmental Challenges

• Global aluminium prices under pressure due to high global inventory, sluggish Chinese economy, and appreciation of the US dollar.
• Uncertainty in the global macroeconomic environment.
• Growth rate of primary metal supply in India higher than demand growth.
• Substantial rise in coal prices.

Mitigation Strategies

• Continuously monitoring market trends and future prospects to safeguard profitability.
• Exploring opportunities to overcome challenges and ensure sustainable growth.
• Focusing on domestic demand growth in power transmission, packaging, and automobile sectors.
• Exploring opportunities in downstream and value-added products.

Supply Chain Management

Supplier Audits: SA 8000 based questionnaire sent to prospective bidders.

Responsible Procurement

• Promoting local vendors and contractors.
• Development of MSE units.
• E-procurement process.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 9001, ISO 14001, OHSAS 18001, ISO 50001, SA 8000

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Performance Excellence Award-2013
• Eastern Region Export Excellence Gold Trophy
• Sita Ram Rungta Social Awareness Award 2013-14
• National Energy Conservation Award
• Kalinga Safety Award
• EEPC Gold Trophy

Environmental Metrics

ESG Focus Areas

• Economic
• Social
• Environmental
• Energy
• Governance

Environmental Achievements

• Achieved SEC reduction of 6.66% and 5.85% in energy efficiency improvement targets for reducing specific energy consumption (SEC) during the three-year PAT Cycle 1 (2012-15).
• Successfully fulfilled the renewable purchase obligation (RPO) on non-solar front through wind power generation of 156 MU.
• Highest-ever production of 1.01 lakh MT of wire rod and 48,636 MT of tee ingot achieved in smelter.

Social Achievements

• Spent `27.17 crore towards Corporate Social Responsibility (CSR) adopting all the thrust areas identified in the Schedule-VII of the Companies Act, 2013.
• Implemented 'NALCO ki Ladli' scheme as part of 'Beti Bachao, Beti Padhao' programme and the Swachh Vidyalaya Abhiyan.
• Achieved highest ever alumina hydrate production of 19.53 lakh MT.

Governance Achievements

• Rated 'Excellent' as per the Memorandum of Understanding (MoU), signed with the Government of India for the Financial Year 2015-16.
• Company has signed an MoU with Iranian Mines & Mining Industries Development & Renovation Organization (IMIDRO) for business co-operation and collaboration.
• Implemented Business Excellence (BE) initiative at Alumina Refinery, awarded “BE Star Recognition as Leader in Process Industry”.

Climate Goals & Targets

Environmental Challenges

• Gloomy global scenario and sluggish market for Aluminium industry, with about 70% aluminium smelters worldwide operating with losses.
• Uncertainty of supply of critical inputs like coal, coke, lime, aluminium fluoride, pitch, caustic & power.
• Water scarcity in the near future due to seasonal fluctuations in availability of water from natural sources.

Mitigation Strategies

• Envisaged a New Business Model to address market dynamics through modernization, Greenfield and Brownfield expansions, upstream and downstream integration, diversification into green power, IPP, caustic soda, rare metals, recovery of iron from red mud waste and merchant mining.
• Developing multiple sources for procurement of raw material and adopting a detailed procurement plan.
• Implementing river management strategies like Jack-Jetty and submerged vane for diverting the flow towards the pumping main, in-stream water storage creation on the river bed by providing piano weir water storage system.
• Adopting energy efficient and cost effective technology to reduce Green House Gas emissions. Upgrading the existing 4.6-lakh tonnes per annum aluminium smelter based on AP18 technology to AP2Xn.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Purchase preference extended to MSE units and ancillary industries.
• Vendor Development Programmes for SC/ST Entrepreneurs.
• Integrity Pact Programme for procurement transactions of INR 5 crore & above.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and processes.

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 9001, ISO 14001, OHSAS 18001, ISO 50001, SA 8000

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• EEPC's Gold Trophy
• CAPEXIL's Highest Export Award
• National Energy Conservation Award
• Pollution Control Excellence Award
• Kalinga Safety Award
• OTV CSR Award
• Performance Excellence Award
• Business Excellence Star Recognition Award
• Best Mother Plant Award

Environmental Metrics

ESG Focus Areas

• Economic
• Social
• Environmental
• Energy

Environmental Achievements

• Alumina Refinery achieved highest ever alumina hydrate production (21.00 lakh MT), 100% normative capacity utilization.
• Aluminium Smelter produced 3.87 lakh MT cast metal, surpassing previous year production by 4.03%.
• Mines achieved highest ever bauxite production and transportation (68.25 lakh MT), 100% capacity utilization.
• Steam Generation Plant (SGP) at Alumina Refinery achieved highest ever net power generation (453 Million Units).
• CPP generated 6066 MU net power, registering a growth of 3.85% over previous year generation.
• Wind Power Units contributed 206 MU clean energy.

Social Achievements

• Rs 3000.80 Lakh spent towards Corporate Social Responsibility (CSR) obligations.
• Participative management system with high employee union membership.
• Various employee benefits and welfare measures implemented.
• Low employee turnover.

Governance Achievements

• Rated 'Very Good' in Corporate Governance by Ministry of Mines.
• Compliance with SEBI listing regulations and DPE guidelines.
• Implementation of Integrity Pact and Whistle Blower Policy.

Climate Goals & Targets

Environmental Challenges

• Paucity of resources in India (18% of world population with 4% of world resources).
• Poverty and illiteracy.
• Lack of access to modern cooking energy.
• Climate change.

Mitigation Strategies

• Enhanced Green Energy generation capacity (wind and solar power).
• De-fluoridation plant utilizing Nano-based Emiron technology.
• CSR activities in underdeveloped areas.
• Skill India mission engagement for bridging skills gap.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Preference given to MSE units and ancillary units.
• Integrity Pact for contracts above INR 5 Crore.
• SA 8000 certification for suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4 Guidelines

Certifications: ISO 9001, ISO 14001, OHSAS 18001, ISO 50001, SA8000

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• CH-90 grade Billet (High Speed Extrusion Billet)

Awards & Recognition

• 5-Star Rating by Ministry of Mines
• Highest Export Award by CAPEXIL
• Performance Excellence Award from IIIE
• SCOPE Meritorious Award for CSR
• SCOPE Excellence Award
• DGMS awards for safety and water management
• India Pride Award
• Outstanding CSR Practices Award
• CSR Excellence Award
• Emerging Global Brand Award
• Best Exporter Awards
• Best Mother Plant award

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social
• Governance

Environmental Achievements

• Generated 285 MU from wind power & 0.52 MU from Solar power Plants
• Planted 1,39,159 saplings
• Achieved zero discharge with respect to wastewater and sewerage water in all its units
• Total ash utilization is 101.47 % in Alumina Refinery and 75.69% in CPP during 2020-21

Social Achievements

• Spent ₹35.00 crore on various CSR projects
• Set up a 200 bedded exclusive COVID-19 hospital at Nabarangpur
• Set up two 50 bedded Covid Care Centers at Angul and Damanjodi
• Supported the State Health Department by providing 2 Ventilator Ambulances

Governance Achievements

• Company's provisional self-assessed score falls under “Excellent” rating for the year 2020-21
• No complaints of violation of code of conduct received during the reporting period
• Company is rated 'Very Good' as per the self-appraisal report for the financial year 2020-21

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and subsequent lockdowns
• Cheap imports
• Stringent government measures against environmental hazards
• Threat of substitutes
• High concentration of silica in bauxite and low calorific value of coal

Mitigation Strategies

• Formulated strategies to face the global crisis and kept the units running with reduced manpower
• Adopted digital measures such as e-office, video conferencing, work from home
• Secured extension of existing mining leases
• Accorded mining leases of Utkal D and Utkal E blocks of coal mines
• Entered into long-term contracts with CIL and MCL for sourcing coal
• Achieved zero discharge with respect to wastewater and sewerage water in all its units
• Implemented renewable energy sources such as wind and solar energy
• Implemented emission control technologies

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Support for MSEs
• Ancillary Development Policy
• e-Procurement
• Compliance with applicable labour statutes

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather and natural calamities

Transition Risks

• Stricter emission norms

Opportunities

• Increased use of Aluminium in sectors like automobiles, railway traction, packaging and construction

Reporting Standards

Frameworks Used: GRI Standards: Core option

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

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation and infrastructure)
• Goal 11 (Sustainable cities and communities)
• Goal 13 (Climate action)

NALCO's initiatives contribute to these goals through employment generation, infrastructure development, renewable energy adoption, emission reduction, and community development programs.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Best Productivity Excellence Award 2020 (Smelter Plant)
• Productivity Excellence Award 2020 (CPP)
• Best Energy Efficient Power Plant-Coal (CPP) (Eastern region, 2020)
• Kalinga Safety Platinum award 2019 (Alumina Refinery)
• Certificate of Excellence (Public Sector category, Odisha MSME Trade Fair 2021)
• CII-EXIM Bank Gold Plus Award (Business Excellence, Panchpatmali Mine & Smelter Plant)
• CII-EXIM Bank Platinum recognition (Business Excellence, Alumina Refinery)
• PSE Excellence Award (Excellence in CSR)