JSW Energy

As a purely power generation company, JSW Energy’s scope 1 and 2 targets cover the majority of its electricity generation emissions. The company aims to reduce its emissions by 79% by 2030 and by 100% by 2050 compared to 2015. The company can improve its targets by bringing forward its zero emissions target to 2045, consistent with the International Energy Agency’s (IEA) recommendation for electricity generation companies in emerging economies. JSW should also set intermediate targets at gaps of no more than five years to incentivise near-term action towards its longer-term goals. Moreover, the company should make it clear what percentage of its targets it plans to achieve through offsets, as lack of disclosure means the targets can currently not be assessed for alignment with a 1.5°C pathway.

JSW has not illustrated any plans to decrease its use of coal. Instead, it states that it will continue to invest in coal to meet its increased energy demand. As a consequence, the company is expected to significantly exceed its 1.5°C carbon budget between 2022 and 2037. To improve its performance, the company should align with the IEA’s Net Zero Emissions by 2050 (NZE) Scenario which requires emerging economies to phase out unabated coal by 2040. Making this change in the near future will also support the company to make the emissions intensity reductions needed to align with its 1.5°C pathway in 2027.

JSW has set out clear transition planning elements until 2030. The company has set an emissions reduction target, discloses plans to increase its renewable energy and storage capacity and reports its plans to finance its transition by supplying power purchase agreements (PPAs) and raising funds through green bonds. However, the company does not disclose any plans beyond 2030, making it unclear how it will reach its 2050 emissions target. To improve, JSW should ensure its plan is sufficient for a 1.5°C pathway, includes medium- and long-term targets, verifiable and quantifiable key performance indicators and financial commitments.

JSW is actively developing business models for a low-carbon future. By 2025 the company aims to expand its wind, solar and hydropower capacity to 5.9 gigawatts (GW), from 3.5 GW in 2022, and for its green hydrogen plant to be operational. JSW is also developing pumped hydropower and battery storage and will expand this capacity to 3.4 gigawatt-hours (GWh) by 2024 and 40 GWh by 2030. Additionally, from 2025 the company will manufacture 1 GW of solar photovoltaic (PV) energy per year. The company can improve by planning deployment schedules for its existing business models beyond 2030. It can also explore additional business models that will support decarbonisation, such as smart grids and energy efficiency services.

JSW has set a target to reduce its scope 1 and 2 emissions by 100% by 2050, with an interim target of a 79% reduction by 2030, compared to 2015. The company has committed to have these targets validated by the Science Based Targets initiative (SBTi) in the next two years.

By 2025, JSW aims to expand its wind, solar and hydropower capacity to 61% of its portfolio. The company also plans for its green hydrogen plant to be operational and produce 3,800 tonnes per year. Additionally, JSW is planning the expansion of its energy storage capacity to 3.4 GWh by 2024 and 40 GWh by 2030. Additionally, from 2025 the company will manufacture 1 GW of solar PV energy per year. The company does not disclose plans beyond 2030.

Beyond altering the distribution of its fuel mix, JSW has been taking limited action. The company does not disclose any services to increase energy efficiency or work more broadly with its clients to reduce emissions. The company has not undertaken research and development (R&D) into low-carbon technologies. There is no clear evidence that the company collaborates with local authorities to achieve local emissions reductions or that it leads any climate initiatives.

JSW’s emissions intensity trend decreased between 2017 and 2022; however, this reduction rate was not fast enough to align with the company’s 1.5°C pathway. On average, three-quarters of the company’s energy generation has been fuelled by coal. As this proportion has not changed significantly over the last five years it is thought the decrease in emissions intensity has been driven by increased generation efficiency.

In the short term, JSW has plans to rapidly scale up its renewables and energy storage capacity and it has backed this up with significant capital expenditure (CapEx) in 2022. However, the company’s energy generation is still dominated by coal and the company plans to increase its thermal capacity to meet electricity demand. To align with its 1.5°C pathway in 2027, JSW needs to increase its rate of emissions intensity reduction. Continuing to rely on coal will only slow the company’s progress.

No evidence was found of the company’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 showing the company undertakes low-carbon transition planning to mitigate the social impacts of the 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 the company 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 showing 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 technical training, behavioral training, and functional training to its employees. However, no relevant disclosure was found of the company embedding equality of opportunity for women and vulnerable groups in these actions. Furthermore, no evidence was found of the company having a process for identifying skills gaps for workers and affected stakeholders or a public commitment to help workers displaced by the transition to reskill or upskill.

No relevant disclosure was found to show if the company 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.

The company commits to respecting human rights and the ILO fundamental rights at work, and it expects its business relationships to respect the ILO fundamental rights at work. However, no evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and supply chain. No evidence was found of the company disclosing the stakeholders whose human rights have been affected by its activities. The company does, however, have a grievance mechanism available to workers and external stakeholders.

The company commits to respecting the health and safety of its workers and expects the same commitment of its business relationships. However, no evidence was found of a time-bound target for paying all workers a living wage. No evidence was found that the company discloses the proportion of its direct workforce covered by collective bargaining agreements and the company’s required working hours. The company discloses the gender of its workforce by employee category. However, no relevant disclosure was found of additional indicators of workforce diversity. No evidence was found that the company commits to gender equality and women’s empowerment.

No evidence was found that the company commits to protecting personal data and that it has a privacy statement regarding the collection, sharing and access to personal data. Moreover, no relevant disclosure was found of the company’s global tax strategy and the corporate income tax paid for each relevant jurisdiction. The company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its contracts with business relationships. While the company specifies that it does not make political contributions, no evidence was found of the company’s lobbying and political engagement policy as well as expenditure on lobbying activities.