Hindalco Tops Global Sustainability Rankings Again

Hindalco Industries Limited has been recognised as the world’s most sustainable aluminium company for the fifth consecutive year. This achievement comes from the 2024 S&P Global Corporate Sustainability Assessment (CSA) rankings. Hindalco secured the top position with a score of 87 points, an increase of 9 points from the previous year. It outperformed its nearest competitor by 22 points.

About the S&P Global CSA Rankings

The S&P Global CSA evaluates companies based on their sustainability practices. It focuses on environmental, social, and governance (ESG) factors. The rankings include the top 10 per cent of the largest 2,500 companies in the S&P Global Broad Market Index. Companies are assessed on their long-term economic performance and sustainability efforts.

Key Achievements in Environmental Standards

Hindalco achieved the 100th percentile in many ESG categories. This includes climate strategy, water-related risks, and waste management. The company has set up a 100 MW carbon-free power project at its Odisha smelter. This initiative earned them the Energy Transition Changemaker award at COP28.

Reduction of Greenhouse Gas Emissions

Hindalco reported a 19.54 per cent reduction in specific greenhouse gas emissions compared to its FY 2011-12 baseline. The company plans to source 30 per cent of its energy from renewable sources by 2030. These efforts are part of their commitment to sustainability and reducing their carbon footprint.

Waste Management Initiatives

In FY24, Hindalco recycled 85 per cent of its operational waste. The company aims to achieve zero waste to landfill by 2030. Three of its units have already received zero-waste-to-landfill certification. This reflects their commitment to responsible waste management practices.

Social Responsibility and Community Impact

Hindalco scored 89 per cent in the social category, ahead of its peers. The company invested ₹154 crore in community programmes during 2023-24. These initiatives impacted over 2.5 million lives, showcasing Hindalco’s dedication to social responsibility.

In governance, Hindalco achieved an impressive score of 84 per cent. This score is 12 percentage points higher than its closest competitor. Strong governance practices are essential for maintaining transparency and accountability in corporate operations.

Hindalco’s continuous improvement in sustainability practices is evident in its rankings. The company leads in climate action and emission reduction. Its commitment to environmental, social, and governance standards sets a benchmark in the aluminium industry.

Important Facts for Exams:

1. DJSI: The Dow Jones Sustainability Indices evaluate companies on environmental social and governance criteria. It includes the top ten percent of the largest 2,500 companies globally.
2. GHG: Greenhouse gases contribute to global warming. Hindalco reported a 19.54 percent reduction in specific GHG emissions compared to its baseline in FY 2011-12.
3. ESG: Environmental social and governance factors are critical for assessing corporate sustainability. Hindalco achieved the 100th percentile in many ESG categories in the S&P Global CSA rankings.
4. COP28: The 28th Conference of the Parties focuses on climate change. Hindalco earned the Energy Transition Changemaker award at COP28 for its carbon-free power project in Odisha.

Month: Current Affairs - November, 2024

Category: Environment Current Affairs