SAIL

No leading practice identified for this company.

No leading practices were identified for this company.

No leading practice identified for this company.

No leading practice identified for this company.

SAIL targets scope 1 and 2 emissions intensity reduction to 2.30 tonnes of carbon dioxide per tonne of crude steel by 2030. However, the company has not disclosed if it plans to use carbon offsets. SAIL is also aiming for carbon neutrality by 2070, but it lacks a quantitative pathway or baseline for a feasibility assessment of this target. The company’s lack of specific information hampers a thorough evaluation of its commitment to long-term climate action.

While SAIL has set a concrete target for carbon dioxide reduction by 2030, it lacks a clearly structured transition plan and comparable auxiliary measures to monitor progress towards decarbonisation. Though the company acknowledges financial risks from carbon taxes and emission caps, it does not provide a detailed analysis of how a global low-carbon transition could impact its operations and profitability.

There is no strong evidence of the company having planned low-carbon technology investments over the near future that would lead to a significant reduction in emissions. While the company makes efforts to procure green power for its operations, demonstrating some commitment to low-carbon changes, the impact of this action is only about 2%..

While SAIL aligns its position with the Indian government’s decarbonisation timeline of 2070 and publicly commits to international carbon targets, it lacks active participation in sectoral initiatives against climate change. The company should establish a strategy and monitoring process to ensure its policy positions are consistent with the Paris Agreement goals. Additionally, it should develop supplier and client engagement strategies focused on reducing emissions throughout its value chain.

SAIL has established a target aiming for a reduction in emissions intensity to 2.30 tonnes of carbon dioxide per tonne of crude steel production by 2030 (from 2.5 in 2022), covering only its scope 1 and 2 emissions. However, the company has not clearly disclosed whether it will involve the use of carbon offsets.

SAIL’s ambition to achieve carbon neutrality by 2070 is purely aspirational and not backed by any quantitative pathway or baseline investments required to achieve the goal. There is no evidence the company is making efforts to substantially integrate low-carbon technologies in steel production, beyond its memorandum of understanding with the Indian Institute of Technology for carbon capture and geological sequestration.

In 2022, SAIL’s crude steel production volume reached approximately 17.4 million metric tonnes, marking a notable 14% increase from the previous year. Consequently, between 2021 and 2022, SAIL’s emissions surged by a remarkable 11%, underscoring the company’s insufficient progress in reducing emissions intensity from steel production.

SAIL acknowledges that transitioning to low-carbon steelmaking is crucial for long-term success and has identified it as a significant material issue. Its present focus is on process optimisation, introduction of new technologies, increase in waste heat recovery, and reduced consumption of purchased fuel and power.

While SAIL has set a concrete target for carbon dioxide reduction by 2030, it lacks a clearly structured transition plan and comparable auxiliary measures to monitor its progress towards decarbonisation. Additionally, there is no identifiable body within the company responsible for climate change oversight, making it difficult to assess the presence of climate expertise among its employees or committees.

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. 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 in a way that specifically embed equality of opportunity as it offers programs that target women and young people. 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 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.

No policies or commitments of the company 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 commits to respecting the health and safety of its workers and expects the same commitment of its business relationships. Additionally, the company discloses statistics of the gender of its workforce by employee category. However, the company can strengthen its disclosure on these and other key decent work issues including collective bargaining and living wage practices.

The company commits to protecting personal data, and it has a publicly avaliable policy statement prohibiting bribery and corruption. Additionally, the company discloses the amount of corporate income tax paid in each relevant jurisdiction. The company can however strengthen its disclosure on these and other key ethical business topics, including responsible lobbying and political engagement.