Hindalco

No leading practices were identified for this company.

No leading practices were identified for this company.

No leading practices were identified for this company.

No leading practices were identified for this company.

Hindalco has established a target to decrease its scope 1 and 2 emissions intensity by 25% by the fiscal year 2024-25 relative to the base year 2011. However, no disclosure was found of the company’s targets for scope 3 emissions. Hindalco is committed to achieving net carbon neutrality by 2050. However, it should set intermediate targets at gaps of no more than five years to incentivise near-term action on its longer-term goals. Additionally, it should clearly report its base year emissions and any offsetting it intends to use to allow for a complete analysis of its targets and progress against them.

The Hindalco Board of Directors delegates primary responsibility for climate change oversight to the Risk Management & Environmental, Social & Governance (ESG) Committee. However, no evidence was found that the committee has expertise in climate change and low-carbon matters. Hindalco’s transition plan includes targets aligned with a low-carbon scenario, encompassing reductions in greenhouse gas emissions and energy consumption as well as renewable energy capacity goals. While the company details short-term actions for energy efficiency, no evidence was found that its plan outlines financial details and discussions on long-term actions.

Hindalco’s subsidiary Novelis uses recycled scrap aluminium to reduce the environmental impact of its operations. While 60% of the total material used in production at Novelis was from recycled aluminium scrap in 2022, no evidence was found that Hindalco has a scrap reduction strategy at the group level. Moreover, the company has not disclosed its research and development (R&D) expenditure over the last three years, nor has it provided quantitative data on its investment in low-carbon technologies.

Hindalco lacks both supplier and client engagement strategies to promote emissions reduction and the low-carbon transition. Moreover, the company lacks a policy for engaging with trade associations on climate change. The company should encourage emissions reduction by shifting demand towards low-carbon alternatives and implementing action plans. While Hindalco publicly supports significant climate policies aligned with the Paris Agreement, there is no evidence of a company-wide monitoring and review process to ensure consistency with the Paris Agreement goals.

Hindalco sets a target to reduce its specific scope 1 and 2 emissions by 25% by the fiscal year 2024-25 compared to the base year 2011-12. However, the company should also set targets to reduce its scope 3 emissions and should increase its collaboration across the value chain to achieve this.

Hindalco discloses a low-carbon transition plan wherein it shows its ambition to strategically reposition itself through investments in energy efficiency, renewable energy projects, and exploring alternative low-carbon fuels. However, the plan lacks long-term actions and financial viability and cost estimates. Further, the company should set out a strategy for carbon reduction in its supply chain to better align with a fully transitioned low-carbon economy. Moreover, the company seems to focus more on climate goals for its subsidiary Novelis than for its main operations at Hindalco.

The company consistently reports emissions intensity data for its electrolysis and refining processes. In 2016-2022, the company saw a 10% reduction in the emissions intensity for both processes.

Hindalco does not provide information regarding its low-carbon capital expenditure and low-carbon mitigation R&D. The company also does not disclose whether it is creating or expanding low-carbon business models or implementing actions to decarbonise activities within its existing business models.

Although Hindalco shows strong governance regarding its climate strategy, it can strengthen its roadmap for achieving net carbon neutrality by 2050 by including financial details and long-term actions related to the low-carbon technologies and solutions it plans to rely on. Further, it can provide a breakdown of the expected emissions reduction for each of its activities to make its transition plan more credible.

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 actions 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. Further, no public commitment by the company was found stating its intention to reskill and upskill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company reskills and upskills workers in a way that ensures gender balance and inclusion of vulnerable groups.

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.

The company commits to respecting human rights. However, no evidence was found that it commits to respecting the ILO fundamental rights at work or that it expects its business relationships to respect the ILO fundamental rights at work. The company provides the process and results of its human rights risk assessment at various locations. However, no evidence was found of the company’s process to mitigate salient human rights risks in its operations and supply chain, or of the company disclosing the stakeholders whose human rights have been affected by its activities. Moreover, no evidence was found of the company having 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 from its business relationships. No evidence was found of the company having a time-bound target for paying all workers a living wage. While the company discloses the proportion of its direct workforce covered by collective bargaining agreements, no relevant disclosure was found of 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.

The company commits to protecting personal data, but no evidence was found of the company having a privacy statement regarding the collection, sharing and access to personal data. The company discloses its global tax strategy and the corporate income tax it pays in each relevant jurisdiction. It also has a policy prohibiting bribery and corruption, and it includes corresponding clauses in its business relationship contracts. There is no evidence that the company has a lobbying and political engagement policy, or that it specifies that it does not make political contributions. The company does, however, disclose its expenditure on lobbying activities.