JSW Steel

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.

JSW Steel has set an interim target to reduce its scope 1 and 2 emissions intensity. However, it does not specify a timeframe for its net-zero target. Moreover, no evidence was found that the company discloses the emissions intensity of its ore-based crude steel production and scrap electric arc furnace (EAF) crude steel production, or the emissions intensity of purchased steel for its operations over the past 3-5 years.

JSW Steel should set up incentives for its directors to manage the low-carbon transition. There is also no evidence of the company’s board having climate-related expertise or experience. Further, the company does not have a low-carbon transition plan that is aligned with a 1.5°C pathway. Neither does it disclose a process to review and update its low-carbon transition plan or a commitment to report on progress against its transition plan. Moreover, even though JSW Steel has disclosed its revenue from low-carbon activities/products, the proportion of this revenue remains low. Though the company has integrated decarbonisation actions in its business model, it should disclose detailed information about these actions, including their scope.

No evidence was found that JSW Steel’s projected scope 1 and 2 emissions intensity is expected to decrease in alignment with the sectoral-level expectations for emissions reduction. Furthermore, though the company allocates R&D expenditure to low-carbon technologies, it does not specifically target non-mature low-carbon technologies. Also, it does not detail the extent nor the maturity of its existing interventions aimed at reducing emissions for purchased products.

JSW Steel does not publicly disclose supplier and client engagement strategies. Additionally, no evidence was found that the company requires its suppliers to reduce emissions. Furthermore, although the company is a member of associations that support climate policies, it is also a member of associations that have climate-negative or mixed activities or positions. JSW Steel does not publicly publish an action plan detailing its response when associations that it is a member of are found to take a climate-negative stance, nor a process to review these memberships. Additionally, no evidence was found of the company having a process to ensure its policy positions are consistent with the Paris Agreement goals.

JSW Steel discloses its scope 1, 2 and 3 emissions data and has a target to reduce its scope 1 and 2 emissions by 42% by 2030. It also has a net-zero target for 2050. However, the company should clearly state the timeframe for its net-zero target. Moreover, it does not have specific targets for scope 3 emissions originating from its supply chain.

JSW Steel invests in low-carbon technologies. Yet, it is a member of associations that have climate-negative or mixed activities or positions. Also, the company has a goal to achieve net-zero emissions by 2050. However, it should set out a clear timeline for this target and its transition plan should provide comprehensive information, including detailed activities planned to achieve its targets, financial implications and structured processes to review, update and report progress.

JSW Steel has achieved around 70% of its interim 2030 emissions target. The company tried to reduce its carbon dioxide emissions by launching the Sustainable Energy, Environment and Decarbonisation (SEED) project in one of its plants with a vision to expand it to other plants. However, the company’s current transition plan focuses on efficiency improvements and a comprehensive change management approach with existing assets. The company requires active investment in new low-carbon technologies to align with a 1.5°C pathway.

JSW Steel has been investing in technologies related to hydrogen use in steelmaking. The company reported that its R&D expenditure for the past three years was USD 16 million, which it spent on low-carbon technologies. However, the company should better highlight its respective investments in mature and non-mature climate technologies.

JSW Steel has a transition plan which sets out targets for 2030 and 2050. It focuses on improving its existing assets while investigating the feasibility of new low-carbon technologies. The company briefly describes activities that it plans to undertake to achieve its targets and the financial implications. However, it should disclose detailed financial and other information about its decarbonisation activities, including a process for reviewing and updating its transition plan and for reporting its 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 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. The company discloses the measures it takes to ensure equality of opportunity for women and vulnerable groups. In particular, it empowers local women through vocational training programmes and skills development initiatives. However, no evidence was found of a company commitment to create and support access to green and decent jobs as part of the low-carbon transition.

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 and the ILO fundamental rights at work, and it expects its business relationships to respect the ILO fundamental rights at work. The company also discloses a human rights due diligence process that includes the identification and assessment of salient human rights risks. However, no evidence was found of the company’s process to mitigate salient human rights risks in its own operations and supply chain. The company has 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 of the company having a commitment to promote gender equality and women’s empowerment.

No evidence was found that the company commits to protecting personal data, or that it has 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. The company also has a policy prohibiting bribery and corruption, and it includes corresponding clauses in its business relationship contracts. While the company has a lobbying and political engagement policy, no evidence was found where it specifies that it does not make political contributions. The company discloses its expenditure on lobbying activities.