Hindalco Ranks as World`s Most Sustainable Aluminium Company for the 5th Consecutive Year
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Hindalco Industries Limited, the Aditya Birla Group metals flagship, has emerged as the World's Most Sustainable Aluminium Company for the fifth consecutive year in the 2024 edition of the S&P Global Corporate Sustainability Assessment (CSA) rankings.
Hindalco, the only Aluminium company to secure the top position in the S&P Global CSA, achieved a total score of 87 points (as of 30 October 2024), thereby improving its tally by 9 points from the last year, and is 22 points ahead of its closest peer.
The DJSI World Index comprises the top 10 percent of the largest 2,500 companies by market capitalisation in the S&P Global Broad Market Index based on long-term economic and ESG factors.
Mr. Satish Pai, Managing Director, Hindalco Industries Ltd. said, “We have been able to significantly boost our score because of our consistent efforts to raise our Environmental, Social, and Governance standards. This highlights our inclusive approach to ESG, which includes committed efforts to maintain biodiversity, water positivity, zero waste to landfill, and ultimately achieving net-zero emissions.”
Hindalco achieved the 100th percentile in most aspects of the three dimensions of environmental, social, and governance (ESG), including climate strategy, environment and social reporting, and water-related risks, as well as in operational eco-efficiency parameters such as waste management and resource consumption, cybersecurity, community engagement, and employee development. The company made significant improvements in environmental, social, and governance (ESG) performances and its sustainability ranking showed continuous improvement in all parameters.
The company is leading in climate action and emission reduction programs and has taken a number of initiatives in this direction, such as setting up a 100 MW round-the-clock carbon-free power project for its Odisha smelter, which also earned the prestigious ‘Energy Transition Changemaker’ award at COP28.
It has also achieved a remarkable 19.54% reduction in specific GHG emissions compared to its FY 2011-12 baseline and is making further investments to support eco-friendly smelter expansions as a part of its vision to source 30% of its energy from renewables by 2030.
Hindalco recycled 85% of its operational waste in FY24, and three of its units received zero-waste to landfill certification in line with the company’s goal to achieve zero-waste to landfill by 2030.
Its US-based subsidiary Novelis, the largest aluminium recycler, processed about 2.3 million metric tonnes of recycled aluminium in FY24, contributing to a significant reduction in carbon emissions.
All these initiatives helped Hindalco secure the 100th percentile in the environmental segment with an overall score of 87 per cent, which is the highest among its industrial peers and is 24 percentage points higher than its nearest peer.
In the social category, the company retained its top position by scoring 89 per cent, which is 26 percentage points ahead of its closest peer. As part of its social commitment, the company invested ?154 crore in community programs in FY24, impacting more than 2.5 million lives.
In terms of governance, the company scored an impressive 84 per cent, which is 12 percentage points higher than its nearest competitor. To improve governance across all segments, the company emphasizes more on transparency and accountability. Its Risk Management and ESG Committee plays a vital role in overseeing sustainability and risk mitigation strategies, ensuring comprehensive oversight of ESG initiatives.
S&P Global’s Dow Jones Sustainability Indices (DJSI) is the world’s leading provider of ratings that evaluate publicly listed companies against environmental, social, and governance (ESG) criteria. Only the most sustainable companies in each industry are considered for inclusion in the list. S&P Global Corporate Sustainability Assessment (CSA) covers over 10,000 companies around the world, and it tracks the performance of the world's leading companies in terms of economic, environmental, and social criteria.
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