Three important ESG disclosures for FY25 have been released by India's largest aluminium producer, Vedanta Aluminium. The Sustainable Development Report marks a clear discussion concerning the Taskforce on Nature-related Financial Disclosures (TNFD) Report and the Taskforce on Climate-related Financial Disclosures (TCFD) Report.
With these documents, the firm can uphold ongoing efforts to enhance transparency and accountability by aligning with the country's ambitious Net Zero 2070 vision as well as upholding a sustainable industrial landscape.
The company's firm commitment towards achieving its ESG vision, stating "Transforming for Good", it is working towards weaving sustainability into every aspect of its operations. To achieve this, the firm is propelling decarbonisation in smelting and refining processes, as well as nurturing community development and supporting ecosystem restoration as a part of its long-term goal.
The TNFD & TCFD report
The firm's TNFD Report aligns with the widely recognised LEAP (Locate, Evaluate, Assess, Prepare) framework, helping the company systematically specify and dive into nature-related risks and opportunities. Considering its adherence to CSR responsibility, the Indian aluminium company has set an ambitious goal of achieving No Net Loss by 2050, and this is drafted in accordance with the Biodiversity Management Plans rolled out in its total operations.
On the other hand, the TCFD Report delineates the company's keen technique for adhering to the climate risks, which includes analysing different scenarios, assessing transition risks and planning for resilience throughout its operations. With reference to the global best practices, these revelations support the company in positioning itself as a thought leader in sustainability.
Reflection on FY25 performance
The company, in its FY25 performance, showed that an impressive milestone was unlocked concerning aluminium production, which surpassed 2.42 million tonnes. The output is nearly half of India's total output. With this milestone, the firm successfully bagged the esteemed ASI Chain of Custody (CoC) certification. This certification congealed Vedanta's status as a reliable global supplier of responsibly produced aluminium. Apart from this, a 2nd spot in the S&P Global Corporate Sustainability Assessment 2024 world rankings for the aluminium industry had been provided to the firm.
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Additionally, the organisation's greenhouse gas (GHG) intensity has been cut down by 8.96 per cent, reaching 17.01 tCO₂e for every tonne of aluminium produced. The company, in regard to this achievement, is eyeing to secure 1,500 MW of renewable energy by 2030 through long-term Power Purchase Agreements (PPAs).
Rajiv Kumar, CEO, Vedanta Aluminium, stated, "Our sustainability strategy is deeply rooted in the company's ESG vision, which provides a clear and actionable roadmap for responsible growth. We continue to make steady progress toward this vision. At Vedanta Aluminium, sustainability is not just about compliance; it's our growth strategy. Our ESG progress demonstrates how a hard-to-abate sector like aluminium can embrace innovation, renewable energy, and circularity to drive meaningful change. We are proud to lead India's journey toward Net Zero, proving that industrial growth and environmental stewardship can go hand in hand."
In the same year, the firm recycled and reused 14.6 million tonnes of waste, creating a direct implication upon its strong dedication to being resource-efficient and reducing reliance on landfills. Its approach to circularity is beyond reusing materials as it also includes efforts in water conservation, protecting biodiversity and rehabilitating mines, benefiting both the environment and local communities.
Firm's clean energy transition
The firm collaborated with GAIL Gas Limited to access its natural gas to the Jharsuguda smelter, a strategic alliance supporting its goal of a successful transition towards clean energy. The timeline to achieve the clean energy transition is expected to be completed by the end of 2025, aiding in cutting down the carbon emissions by nearly 47 thousand tonnes every year. This strategic partnership is drawn for the upcoming 5 years, where GAIL will be delivering a 7.5 km pipeline for providing 32,000 SCM/day of gas. This delivery will be redirected to the firm's 430 KTPA cast house for its decarbonisation efforts.
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The firm unlocked a milestone by making use of 100 per cent of its ash, successfully transforming 12.08 million tonnes of ash produced from its operations into various practical applications. These include road construction, brick manufacturing, cement co-processing and even backfilling for mines or quarries.
Restora: The flagship product
The Indian aluminium company's flagship low-carbon product lines, Restora and Restora Ultra, have impressively achieved a GHG intensity of under 4 tCO₂e per tonne. This is deemed to be nearly half of the global benchmark for low-carbon aluminium. With this, the company has set an ambitious goal to have 30 per cent of its product portfolio significantly contributing to these sustainable options by 2030.
The firm is clear with its sustainability goals, open disclosures and a commitment to national initiatives like Make in India and Net Zero 2070. This is enabling it to take the charge towards the country's green energy transition, by setting impressive global standards for sustainable aluminium production.
To know leader’s take on aluminium sustainability & recycling, read our latest e-Magazine, “Sustainability & Recycling: Aluminium's Dual Commitment”
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