UltraTech Cement

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.

UltraTech Cement discloses Scope 1 and 2 emission reduction targets but these are not aligned with the Paris Agreement, hence the company should increase the ambition of its targets to align with a 1.5°C pathway as well as disclose reduction targets for Scope 3 emissions. Additionally, it should set intermediate targets no more than five years apart to incentivise near-term action on its long-term goals. Furthermore, UltraTech Cement’s locked-in emissions from current and planned assets are expected to exceed its carbon budget.

UltraTech Cement has a low-carbon transition plan but does not include targets for scope 3 emissions. To ensure alignment with a 1.5°C pathway, the company should include targets that cover the majority of its emissions. Additionally, UltraTech Cement should disclose more information about its transition plan. This should include medium and long-term targets, verifiable and quantifiable key performance indicators and financial commitments. The plan should be informed by scenario analysis to ensure that the plan’s ambition is sufficient for a 1.5°C pathway. Although the company has implemented board-level oversight of climate change, there is no evidence that its board has adequate climate expertise. A lack of expertise at board or equivalent level could be a barrier to successful management of low-carbon transition.

UltraTech Cement invested USD 9.3 million in research and development (R&D) over the last 3 years, of which less than 8% was invested in low-carbon technologies. R&D expenditure on low-carbon technologies will be essential for the company to develop a low-carbon product portfolio and be successful in a low-carbon economy.

Although UltraTech Cement has implemented supplier and client engagement strategies, they do not specifically include GHG emissions reduction requirements. Creating quantified targets would provide clear direction for the whole supply chain. The company can improve transparency around its engagement strategies by disclosing the proportion of clients and suppliers the strategies target by revenue or scope 3 emissions. UltraTech Cement does not have a policy for engagement with trade associations/industry organisations. Finally, the company can increase its credibility by developing and publicly publishing a monitoring and review process to ensure its policy positions are aligned with the values of the Paris Agreement.

UltraTech Cement has set a target to reduce Scope 1 emissions by 27% per ton of cementitious materials and Scope 2 emissions from purchased electricity by 69% by 2032, based on a 2017 baseline.

The company reports that 69% of its sales come from green cement, however, it doesn’t clearly define what qualifies as green cement or whether it follows any widely recognized norms. Additionally, a number of externally reported incidents bring into question the credibility of the company’s transition plan and its ability to adhere to current and future environemtal norms.

The company’s total emissions have increased over the past few years, however, the company has also increased the share of its R&D invested dedicated to low-carbon technology research.

UltraTech Cement invested $692.9 thousand in low-carbon research and development (R&D) in 2022, which accounts for 23% of its total R&D spend that year, a considerable increase from previous years. The company is investing in CCUS technology research and focusing on developing and promoting products that require less clinker.

The company is exploring ways to increase its use of biomass and alternative energy and reduce its clinker ratio.

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 and educational programs for workers and affected stakeholders. For instance, it has training systems for employees at all levels and works to provide education to communities it is active in. 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 providing upskilling opportunities for women and rural inhabitants to help them attain the skills to set up a sustainable business. 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.

The company commits to respecting human rights. Furthermore, the company discloses a human rights due dilligence proces that indludes the identification of human rights risk, and the engagement with stakeholders whose human rights may have been affected by its activities. The company can however strengthen its disclosure on its human rights due dilligence process.

The company commits to respecting the health and safety of its workers and expects the same commitment of its business relationships. However, no evidence was found of a time-bound target for paying all workers a living wage. The company does disclose the share of women in its workforce by employee category and has 30% women on its board. The company can however strengthen its disclosure on these and many other decent work issues including collective bargaining and living wages.

The company has a policy prohibiting bribery and corruption, and includes corresponding clauses in its contracts with business relationships. Additionally, the company discloses its global tax strategy and board level accountability for the strategy. The company can however strengthen its disclosure on these and other key ethical business topics including personal data protection, lobbying and political engagement.