Macrotech Developers Ltd

Macrotech has set two targets, one to reach net zero for its own property development operations by 2035 and the other to reduce its scope 3 emissions by 30% by 2027 compared to 2022. These targets cover all of Macrotech’s emissions. Next to this, the company should set a long-term target for its scope 3 emissions specifically as these account for over 90% of the company’s total emissions. Nevertheless, the company’s targets show ambition. However, the company does not disclose the level of offsets used to achieve these targets and therefore cannot be scored. The company should quantify its anticipated use of offsets, and in fact focus on direct action where possible, only using offsets to eliminate residual emissions.

Macrotech has established a supplier code of conduct and set a target for 100% of its suppliers to sign it by 2023. However, it does not specifically include emissions reduction requirements in its code of conduct. Creating quantified targets for suppliers to reduce emissions would provide clear direction for the company’s whole supply chain. Additionally, the company can encourage suppliers to set science-based targets and develop joint low-carbon research and development (R&D) projects.

Macrotech has implemented board-level oversight of climate change. However, there is no evidence that board members have significant low-carbon transition-related experience. A lack of expertise at board level can be a barrier to the successful management of a low-carbon transition. Also, the company does not incentivise low-carbon performance through executive compensation. The company can improve the likelihood of a successful transition by aligning its incentives with its decarbonisation commitments.

Macrotech has set a target to reach net-zero scope 1 and 2 emissions for its own operations by 2035 and achieve a 30% reduction in its scope 3 emissions by 2027. The company has also committed to setting long-term targets in line with its 1.5°C ambition for 2050 for its scope 3 emissions.

Macrotech has established a strategic partnership with RMI to create the Lodha Net Zero Urban Accelerator. Through this initiative, the company will conduct research and initiate collaborations with a focus on promoting passive design features, reducing embodied emissions and expanding the use of renewables.

Macrotech is looking to expand its use of renewable energy to cover two-thirds of the electricity used at its construction sites at present. The company also engages with clients and suppliers to encourage emissions reductions and has set a carbon price of USD 40 per ton to guide decision making.

The company commissioned a baseline study to establish the main sources of embodied carbon for its developments. The company has successfully reduced the emissions intensity of its property development activities from 2019 to 2021.

Macrotech is in an early phase of its journey to decarbonise its operations but has started to take significant actions to reduce its emissions and is repositioning itself to align with the low-carbon transition. However, the company has not yet made a net-zero commitment covering all its emissions.

No evidence was found of Macrotech’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.

No evidence was found of the company undertaking just transition planning to mitigate the social impacts of the low-carbon transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

No public commitment by Macrotech was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks.

The company discloses the actions it takes to provide training opportunities for workers and affected stakeholders. For instance, it offers carbon emissions trainings to its procurement employees and has programmes for aspiring engineers. Furthermore, the company discloses the measures it takes to embed equality of opportunity for women and vulnerable groups in these actions. It does this through vocational skills training for women and young adults. However, no evidence was found of the company having a process for identifying skills gaps for workers and stakeholders affected by the low-carbon transition or a public commitment to help workers displaced by the transition to re- or up-skill.

No relevant disclosure was found to show if Macrotech identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.

No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

Macrotech commits to respecting human rights and the ILO fundamental rights at work, and it describes the processes it uses to identify its human rights risks and impacts in its own operations and in its supply chain. Additionally, the company has a grievance mechanism available to workers and external stakeholders. However, the company can strengthen its disclosure regarding its human rights due diligence process.

Macrotech expects its business relationships to respect worker health and safety and discloses a variety of workforce diversity information. The company can, however, strengthen its disclosure on these and other decent work practices.

Macrotech commits to protecting personal data and discloses a privacy statement regarding use of personal data. Additionally, the company discloses its global tax strategy and board accountability for the strategy. Furthermore, the company has a policy prohibiting bribery and corruption and includes corresponding clauses in its business relationship contracts. The company can, however, strengthen its disclosure on lobbying and political engagement.