It again emerged as the world’s most sustainable aluminium company, following the ranks in the 2024 S&P Global Corporate Sustainability Assessment (CSA). The Hindalco had topped the ranking for five consecutive years to stand as the only aluminium company on the roster to achieve this milestone for five years running. The company garnered 87 points, 22 points ahead of the nearest competitor and nine points up from the previous year.
The rankings by S&P Global CSA address the economic, environmental, and social performance of companies. Only the best companies are included in the DJSI Dow Jones Sustainability Indices, representing only 10% of the largest 2,500 companies measured by market capitalization. This success is realized through its very comprehensive approach to ESG standards, whereby the company has scored in the 100th percentile of most of the ESG dimensions. Specific strengths stand out in the strategy on climate, water-related risk management, and community engagement and represent Hindalco’s efforts towards eco-efficiency and waste management and social responsibility.
In line with the global climate action goals, Hindalco had several initiatives that cut across, aimed at reducing green house gas emissions and reliance on renewable sources of energy. The most distinctive was the 100 MW carbon-free power project for its Odisha smelter initiated by the company-an initiative that won the prestigious “Energy Transition Changemaker” award at COP28. In addition, it reported a decrease of 19.54% in absolute specific greenhouse gas emissions compared to the FY 2011-12 baseline and is well placed to achieve its target of ensuring 30% of its energy from renewable sources by 2030.
Another significant area of focus for Hindalco is in waste management, which recycled 85% of its operational waste in FY24. Three of its plants are zero-waste-to-landfill, well on track to meet the company’s aim to achieve zero waste to landfill by 2030. Novelis, its subsidiary in the U.S., is the world’s largest recycler of aluminum and accounts for 2.3 million metric tons of recycled aluminum in FY24. This goes a long way to cut carbon emissions.
Under the social prism, Hindalco scores 89 percent, representing substantial investment in the community; the company spent ₹154 crore on initiatives that positively affected over 2.5 million lives. The governance stands at 84 percent, indicating commitment to transparency and accountability. There is an ESG and Risk Management Committee overseeing the sustainable practices.
Satish Pai, managing director at Hindalco, attributed the leadership in sustainability over such a long period of time to the company’s commitment to principles of ESG through the generally accepted principle of being one-planet conscious and responsible citizens.