CRISIL Limited
Climate Impact & Sustainability Data (2022, 2023)
Reporting Period: 2022
Environmental Metrics
ESG Focus Areas
- Environmental
- Social
- Governance
Climate Goals & Targets
Environmental Challenges
- Lack of ESG data on small and mid-cap companies.
- ESG funds underperforming compared to non-ESG peers.
- Limited diversification across sectors in some funds.
- Some funds investing in companies with poor ESG scores.
Mitigation Strategies
- BRSR (Business Responsibility and Sustainability Reporting) is expected to improve data availability.
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Period: 2023
Environmental Metrics
ESG Focus Areas
- Climate Change
- Carbon Emissions
Environmental Achievements
- Steel mills are taking efforts to adopt best available technologies, aiming for 20% emission intensity reduction by 2030. Some companies target emission intensity of < 1.95 tCO2/tcs by 2030 and < 1.8 tCO2/tcs by 2030. One company aims for < 2 tCO2/tcs by 2025 and Net-Zero by 2035. Another company aims to reduce emissions from India ops by ~1.5 million tonne/year.
Climate Goals & Targets
Long-term Goals:
- Net-Zero by 2035 (one company)
- Net Zero by 2070 (India's commitment)
Medium-term Goals:
- Reduce emission intensity by 20% by 2030 (India's target)
- Achieve CO2 emission intensity of < 1.95 tCO2/tcs by 2030 (some companies)
- Achieve CO2 emission intensity of < 1.8 tCO2/tcs by 2030 (some companies)
- Reduce emissions from India ops by ~1.5 million tonne/year (one company)
Short-term Goals:
- Reduce CO2 emission intensity to < 2 tCO2/tcs by 2025 (some companies)
Environmental Challenges
- EU's Carbon Border Adjustment Mechanism (CBAM) will increase the cost of Indian steel exports to the EU by as much as 17%, potentially up to 40% with greenflation. Other countries (USA, Canada, Australia) are also considering similar emission-based tariffs.
- India's steel mills have higher emission intensity (2.2-2.6 tCO2/tcs) compared to European mills (~1.4 tCO2/tcs).
- Lack of pathbreaking technologies in India's BF-BoF steel production.
- Natural resource constraints (high-grade iron ore and natural gas) hinder emission reduction in India.
Mitigation Strategies
- Indian steel mills are investing in decarbonization to reduce emission intensity.
- Phased taxation and allowance period under CBAM will provide time to adapt.
- Steel producers are exploring strategic partnerships (e.g., with Greenko Group) to reduce emissions.
Supply Chain Management
Climate-Related Risks & Opportunities
Transition Risks
- CBAM and similar regulations
- Changes in carbon pricing
Opportunities
- Development of energy-efficient technologies
UN Sustainable Development Goals
- Goal 7 (Affordable and Clean Energy)
- Goal 13 (Climate Action)