Dalmia Bharat

Between 2017 and 2022, the company decreased its emissions intensity at the rate required by its 1.5°C pathway. The average historical annual decrease in its emissions intensity was nearly 3%.

The company is actively developing business models for a low-carbon future, such as low-clinker cement products. In 2022, blended cement represented more than 80% of DCBL’s cement production. Blended cement has a carbon footprint almost two times lower than the average emissions intensity in the cement sector.

No leading practices were identified for this company.

DCBL publicly demonstrates support for the Paris Agreement. It does this through lobbying activities, public policy engagement and its stated climate change positions. The company actively participates in cross-sectoral initiatives to mitigate climate change, such as the Mission Possible Partnership and the Business Ambition for 1.5°C.

DCBL has set a target to reduce its scope 1 emissions intensity by 32% and its scope 2 emissions intensity by 62% by 2034 compared to 2019. These targets have been validated by the Science Based Targets initiative (SBTi) as consistent with a well below 2°C pathway. The company has also set a ‘carbon negative’ target for 2040. However, the company does not disclose enough emissions data to meaningfully assess this target.

DCBL should include financial commitments to make its ‘carbon negative roadmap’ more credible and robust. The company has completed a scenario analysis to test its low-carbon transition plan against both 1.5°C and well-below 2°C scenarios. The company can improve on this by better highlighting the results of the analysis and mentioning which scenarios have been considered for transitional risks. DCBL is actively developing business models for a low-carbon future, such as low-clinker cement products. In 2022, the company used 42% of recycled materials, such as fly ash and slag, to substitute raw materials in its cement production.

DCBL disclosed that it used a 17% share of alternative fuels in 2022. The company has been using industrial wastes, municipal solid waste, renewable biomass and hazardous waste. It has also invested USD 1.7 million in research and development (R&D) from 2020 to 2022. These investments relate to low-carbon technologies such as carbon capture, use and storage (CCUS) and adaptations to manufacture clinker using renewable energy. The company does not, however, disclose a breakdown of its investments by research areas or activities.

DCBL specifies neither emissions nor other low-carbon requirements to its suppliers. The company also provides limited evidence of a client engagement strategy to promote the use of low-carbon alternatives or influence its clients to reduce their emissions. The company can improve its climate performance by providing clear guidance to its suppliers on how it expects them to align with the low-carbon transition and by implementing a client engagement strategy.

DCBL has set various climate targets between 2026 and 2040. The company mainly considers the carbon footprint of its cementitious material production, energy production, renewable electricity consumption, alternative fuels, fleet electrification and share of blended cement.

DCBL dedicates some of its capital expenditure and its research and development (R&D) investments to solutions to decarbonise its cement production. The company also claims that R&D in decarbonisation solutions will be a growing activity in its roadmap, which is necessary given that the company requires significant expansion to secure some existing and new markets in India.

DCBL tracks its progress against its climate targets. The company is on track for the majority of these targets and has decreased its scope 1 emissions intensity at the rate required by its 1.5°C pathway in the last five years.

In 2022, 84% of the cement sold by DCBL was blended cement, which is considered a low-carbon product. Further, the company has substituted 17% of its fossil fuel consumption with alternative fuels. The company has also implemented projects to better source the electricity it consumes and has bought 22 heavy-duty vehicles for its transportation operations.

DCBL has set its roadmap with the intention of being the first cement company worldwide to reach ‘carbon negative’ emissions by 2043. While the company has ambitious climate goals and already shows progress against them, it can still make its transition plan clearer to external stakeholders.

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 of the company undertaking 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 of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups.
No relevant disclosure was found of the company’s assessment of employment dislocation risks. The company discloses the actions it takes to provide reskilling and upskilling training opportunities for workers and affected stakeholders. For instance, it offers training programmes to its employees and particular initiatives to support the training of young people. 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 programmes targeting microenterprise trainings. 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 reskill or upskill.

No relevant disclosure was found to show if the company identifies the impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to their 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.

No company policies or commitments related to respect for human rights were found in the public domain. This includes the necessary policies and systems by which the company can ensure respect for basic human rights in its operations and supply chain.

The company discloses some statistics regarding the diversity of its workforce, such as gender and age of employees by employee category. However, no other evidence of the company’s policies or commitments related to key decent work issues was found in the public domain. These issues include the provision of safe, secure and healthy workplaces, where workers are fairly renumerated and have a meaningful say in decision-making.

No company policies or commitments related to key ethical business topics – personal data protection, tax, bribery and corruption, and lobbying and political engagement – were found in the public domain. This includes ensuring ethical business conduct throughout its operations and in its business relationships.