Shree Cement

No leading practices were identified for this company.

The company conducts climate scenario analysis when setting its targets, covering the entire organisation and calculating projections until 2050. It evaluates the materiality of four categories of climate-related risks and opportunities, considering scenarios such as the 1.5°C scenario. Further, the analysis involves five key assumptions and focuses on specific areas to qualitatively inform the company’s strategic decisions.

Shree Cement has allocated an average of 81% of its research and development (R&D) expenditure to low-carbon technologies over the past three years. The company’s focus includes initiatives such as carbon capture, utilisation and storage (CCUS); fuel switching; low-clinker cement; solar and wind energy; and waste heat recovery.

No leading practices were identified for this company.

Shree Cement has established scope 1 and scope 2 emissions target for 2030 validated by the Science Based Targets initiative (SBTi). However, these targets iare not aligned with the 1.5°C pathway. In addition to increasing the ambition of these targets, the company should also set intermediate targets at intervals of no more than five years to drive near-term progress. The company’s data for emissions intensities was too limited to conduct a comprehensive assessment of its emissions performance.

The company discloses that sustainability performance influences its executive remuneration, but it needs to provide more clarity on how this integrates into the long-term incentive plan and aligns with emissions reduction targets. The company has set 2030 targets for 2030. It has opportunities to strengthen its transition plan by disclosing relevant long-term actions, extending its targets beyond 2030 and extending the plan’s coverage to its entire value chain. Further, it should incorporate a carbon price, provide detailed cost estimates and future business impacts, alongside a transparent review and updating process for its transition plan. The company should report its revenue share from low-carbon products. Additionally, it can further diversify and increase the revenue share of the low-carbon business models it is exploring and developing.

Shree Cement currently derives less than 4% of its total energy consumption from alternative fuels, such as biomass, solar energy and waste heat recovery, but has the potential to increase this share. Additionally, the company can enhance transparency on its low-carbon efforts by disclosing information about the patents it has applied for in the past five years, specifically those related to low-carbon technologies.

Shree Cement’s Sustainable Procurement Policy and Supplier Code of Conduct ensure its suppliers’ adherence to environmental standards. However, the company can strengthen this strategy by setting emissions reduction targets, requiring public emissions reporting and explicitly addressing non-achievement of targets. Similarly, while engaging with clients, the company can strengthen its focus on environmental sustainability by incorporating emissions reduction targets and expanding its action levers. Although the company discloses its trade association memberships, it can enhance transparency by articulating a clear engagement policy with these associations and monitoring their climate policy positions. Further, though the company supports climate policies and participates in climate initiatives, it is recommended to make a stronger commitment to the Paris Agreement and to align its policies with the agreement’s goals.

Shree Cement has established SBTi-validated targets for its scope 1 and scope 2 emissions, aiming to reduce them by 12.7% and 27.1% per tonne of cementitious material by 2030 compared to the 2019 baseline. There is an opportunity for the company to also set targets for its scope 3 emissions from its supply chain.

Driven by its 2030 emissions targets and its 2050 net-zero concrete commitment, the company details short-term plans and reports progress on its carbon footprint reduction. While the company outlines capital expenditure and investments in environmental projects, it can include detailed costs associated with its transition plan and estimates of the future business impact. Though it has a policy to engage with suppliers and clients on environmental matters, it can strengthen this by setting quantified emissions targets and low-carbon requirements.

Shree Cement’s scope 1 emissions intensity decreased from 0.58 tonnes of carbon dioxide equivalent (tCO2e) per tonne of cementitious material in 2019 to 0.52 in 2022. However, its scope 2 emissions intensity increased from 0.007 tCO2e per tonne of cementitious material in 2019 to 0.014 in 2021. The company has yet to set targets for its scope 3 emissions, which have also increased since 2019.

Shree Cement has disclosed its R&D spending over the last three years, with 81% allocated to low-carbon technologies on average. Additionally, 41% of the company’s total investments are alloted to environmental protection. Its focus areas include CCUS, fuel switching, low-clinker cement, solar and wind energy and waste heat recovery.

The company has a transition plan stating its goals to achieve reductions in scope 1 and scope 2 emissions by 2030, and to enhance its wind and solar capacity in the short term. The company has provided a detailed outline of its plan, actions and progress for reducing its carbon footprint in the short term, and it provides a vision of what the company could look like in terms of physical assets and business model in the future. While the company mentions it has been making continuous efforts to transition into a low-carbon organisation, it does not disclose the long-term actions it expects to implement.

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. 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 and the ILO fundamental rights at work. No other company disclosures related to human rights, such as a human rights due diligence process, stakeholder engagement or grievance mechanism, were found in the public domain.

While the company commits to respecting the health and safety of its workers, there was no evidence that it expects the same commitment from its business relationships. Additionally, 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 some indicators of workforce diversity, such as 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 has a privacy statement regarding the collection, sharing and access to personal data. While the company discloses its global tax strategy, no relevant disclosure was found of the corporate income tax it pays in each relevant jurisdiction. The company has a policy prohibiting bribery and corruption, and it includes corresponding clauses in its business relationship contracts. However, no evidence was found that the company has a lobbying and political engagement policy, or that it specifies that it does not make political contributions. No relevant disclosure was found of the company’s expenditure on lobbying activities.