Galvanizing Today for a Sustainable Tomorrow |
Task Force on Climate |
Related Financial Disclosure |
(TCFD REPORT) |
FY2022-23 |
TCFD REPORT FY2022-23
About this Report
Task Force on Climate-Related Financial Disclosures ("TCFD") report (this "Report") is for Hindustan Zinc Limited. All data in this Report is as of March 31, 2023.
The TCFD recommendations, first launched in 2017, are designed for consistent and comparable reporting on climate-related risks and opportunities by organisations to their stakeholders. The TCFD recommendations have four content pillars: (i) Governance; (ii) Strategy;
- Risk Management; and (iv) Metrics & Targets; eleven recommendations to support effective disclosure under each pillar. Throughout this Report, Hindustan Zinc Limited has sought to provide information on all four pillars and eleven recommendations.
Perspective included in this report
This is our third Climate Change report aligned with the recommendations of the Financial Services Board's Task Force on Climate-related Financial Disclosures (TCFD). We at HZL have adopted TCFD framework for climate change risk and opportunity management to ensure our sustainability commitment.
This report contains our disclosures against the four core elements recommended by the TCFD, for all our operations including five mining, three
smelters, and one refinery plant. It is our firm belief that this TCFD aligned report enables our stakeholders to evaluate our climate change- related performances for present & future.The report sets out our current understanding of the strength and resilience of our strategy and business model under different climate scenarios.
This report focuses on climate related risks and opportunities, Hindustan Zinc has also published Sustainability Review Report for disclosures related to other Environmental, Social and Governance (ESG) parameters following the GRI, UNGC, FIMI, SASB frameworks.
External Assurance
We safeguard the quality of information contained in this report through a robust assurance process. The content & data disclosed in this report have been externally assured by Ernst & Young Associates LLP in accordance with the requirement of the ISAE3000 Assurance Standard.
What's Inside
Message from Chairperson | 02 |
CEO Message | 03 |
Executive Summary | 05 |
Governance | 11 |
Strategy | 19 |
Risk Management | 37 |
Metrics & Targets | 47 |
Way Forward | 53 |
TCFD Mapping | 55 |
Abbreviation | 57 |
Assurance Statement | 59 |
TCFD REPORT FY2022-23
~75% | ||
Market share | ||
in India's primary | ||
zinc industry | ||
India's Largest | 5th Largest | |
Integrated | Silver producer | |
producer of zinc, | ||
globally | ||
lead and silver | ||
#3 Globally and | ||
2nd Largest | #1 in Asia-Pacific | 25+ Years |
Ranked at S&P Global | ||
Integrated zinc | Corporate Sustainability | Mine Life |
Message from the Chairperson
Innovation remains at the heart of our journey,as exemplified by the deployment of India's First Underground Battery Electric Vehicle at Hindustan Zinc
producer globally
Assessment in the metals
and mining sector
World's Largest | Among India's |
Underground zinc | Largest |
Wind power producers | |
mining operations | |
with a generation capacity | |
at Rampura Agucha | |
of 273.5 MW across | |
5 states |
Dear All,
Today, we stand at an essential juncture in our pursuit of a sustainable future. Climate action is no longer a choice but an imperative, and at Hindustan Zinc, we have embedded sustainable practices in every aspect of our operations to create a greener future for all.
I am thrilled to present Hindustan Zinc's 3rd Taskforce on Climate-Related Financial Disclosures (TCFD) report. This document is a testament to our unwavering commitment towards sustainable growth. Last year, we witnessed significant milestones that brought us closer to achieving our ambitious sustainability goals by 2025.
At Hindustan Zinc, we are driven by our bold targets to reduce our Scope 1 & Scope 2 emissions by 50%, and Scope 3 emissions by 25% by 2030. As a group, Vedanta's larger vision is to achieve Net Zero emissions by 2050, and at HZL we have taken significant steps towards
goal by signing a Power Delivery Agreement for 450 MW of renewable energy. A cleaner, better world can only be realised with positive action and scientific progress grounded in affirmative change. Innovation remains at the heart of our journey, as exemplified by the deployment of India's First Underground Battery Electric Vehicle (BEV) at Hindustan Zinc's Sindesar Khurd Mine.
Our efforts have been recognised across multiple platforms, with Hindustan Zinc ranking among the top three sustainable companies in S&P Global Corporate Sustainable Assessment, and achieving an impressive 'A' rating in the climate change category by CDP. Under our ESG vision we are committed to driving sustainable economic development and value creation for our stakeholders.
Together, let us harness the power of sustained collective action and undertake this transformative journey towards a greener future.
Priya Agarwal Hebbar
Chairperson, Hindustan Zinc Limited
01 | 02 |
TCFD REPORT FY2022-23
Message from the CEO
I strongly believe that sustainability is not just a choice but an imperative for our long-term success and the well-being of the planet
we have signed power delivery agreement of 450 MW Renewable Energy- Round the Clock (RE-RTC), and our Pantnagar Metal plant has started sourcing 100% green power. The move is in line with our strategic purpose of reducing dependence on thermal power by scaling up our renewable energy to cover 50% of our energy requirement by 2030 and reduce the GHG emissions from our operations. During FY 2022- 23, we became the 1st company in India to introduce underground battery electric vehicle (BEV) in our operations. We have already launched passenger EVs to reduce our carbon footprint and our business partners have also introduced electric vehicles in our smelting operations. Since joining TCFD in February 2021, our company has continued to support the guidelines and are reporting the progress annually.
valuable resource for our business continuation and for nearby communities. To address this risk, we have been practicing Rainwater Harvesting, installed Zero Liquid Discharge Plant at our smelting locations and utilizing treated sewage water and other initiatives. Currently, we are 2.41 times water positive, and we further aim to become 5 times water positive by 2025.
Furthermore, we will continue to update climate risks since we recognize that the information and understanding about the climate are uncertain and need to be updated. We have structured this report in accordance with the guidelines and advice of the TCFD enabling high- value stakeholder engagement while providing comprehensive information at one place.
We are hopeful that this report will accelerate further action towards climate change
TO OUR STAKEHOLDERS,
Hindustan Zinc is pleased to present the third report aligned to the recommendations of the Task Force on Climate-Related Financial Disclosures ("TCFD"). The report is aimed at fostering future dialogue and action towards climate change mitigation plans, besides showcasing company's resilience towards climate related risks & opportunities as we transition to a clean energy future.
I strongly believe that sustainability is a way of life for our long-term success and the well-being of our planet. The greatest risk humanity is currently facing is climate change and extreme weather trends. We are making strides to address the climate catastrophe because we believe it is the right thing to do for our stakeholders and our own business. With this shared objective, both the board and management are committed to lead the climate change mitigation and adaptation efforts.
Low-carbon transition is the core of our business strategy and is further helping us in setting a
clear pathway to deliver long-term value as well as ambitious targets to decarbonize our business.
To deliberate & mitigate the impact and inform our stakeholders about our disclosure procedures for financial risks related to climate change, we released our first TCFD report in August 2021 . The report provided a comprehensive understanding of our approach to identifying, measuring, managing, monitoring, and reporting opportunities and risks related to climate change. Our second report that was released following year included analysis for each impact and transition risk in accordance with IEA steps and NDCs while this year in our third report, we analyzed our transitional risk basis IEA STEPS, APS & NZE 2050 scenarios and for physical risks we have considered Intergovernmental Panel on Climate Change's (IPCC) global scenarios, i.e., Representative Concentration Pathways (RCPs) as per the Fifth Assessment Report (Ar5).
I am delighted to share that strengthening our efforts towards decarbonization journey,
We are determined to play a significant role in shaping a sustainable future for our organization by spearheading innovative initiatives, collaborating with key stakeholders, and adopting cutting edge technologies. We believe our activities will help reducing our environmental impact across our operations, from energy consumption and waste management to water usage and emissions which is in-line with our commitment towards achieving Net Zero emission by 2050. We at Hindustan Zinc have set an ambitious target of 50% reduction in Scope 1 & Scope 2 GHG emissions, 25% reduction in Scope 3 GHG emissions by 2030 and achieving carbon neutrality by 2050.
In addition to our tangible efforts, we have taken steps to reduce the impacts of climate change by lowering emissions, advocating for low carbon strategies, and are focused on managing the potential physical risks and their impact. We are conscious of the fact that we are majorly operating in the state of Rajasthan which is water scarce area as per physical risk assessment modeling, so it is even more imperative for us to conserve this precious and
mitigation, encourage dialogue, and enhance opportunities for collaboration with our stakeholders and communities, as we continue to build a Safe, Smart & Sustainable future.
I am pleased to deliver our 3rd TCFD report.
Arun Misra
CEO, Hindustan Zinc Limited
03
04
TCFD REPORT FY2022-23
Executive Summary
Hindustan Zinc has set an ambitious target of Net Zero GHG emissions by 2050 in-line with our commitment of a greener future. We are India's largest and only Integrated producers of Zinc Lead & Silver. We consistently strive to reduce our environmental footprint by increasing our dependency on renewable energy in line with our vision of Zero Harm - Zero Waste - Zero Discharge. We have committed to Science Based Target Initiatives (SBTi) and are proactively working to reduce direct and indirect GHG emissions. We have integrated TCFD recommendations in our business strategy.
Since we are an energy intensive industry, we have taken series of energy efficiency and emission reduction initiatives like signed Power Delivery Agreement (PDA) for 450 MW Renewable Energy- Round the Clock (RE-RTC) which will cater to more than 50% of electricity needs by 2030. As a pathbreaking initiative Hindustan Zinc is the 1st company in India to introduce Underground Battery Electric Vehicle amongst its peers.
We believe that a robust governance structure will help manage climate related risks and opportunities. Our overall Board has clear
making body in the organisation to shopfloor at sites.
We have implemented robust Enterprise Risk Management framework across all our locations. The identified climate related risks are also integrated in our risk management framework and are closely monitored. This is part of our strategy to proactively manage and mitigate any upcoming potential climate related risks.
We continuously monitor and transparently disclose our climate related metrics such as GHG emissions against Scope 1, Scope 2 & Scope 3, renewable energy consumption, water withdrawal etc. This helps us to strategize and measure our impact. Disclosures related to climate change can be found in annual Sustainability review report, Integrated annual report and CDP Climate change response.
As a responsible corporate, we intend to do more to increase the use of renewable energy in our operations. We are committed to a long- term vision that protects environmental, social, and business values for our people, communities, and nature.
Setting ambitious
SBTi targets aligned
with 1.5oC scenario
4.8% reduction in Scope
1 + Scope 2 from previous year
100% green power sourcing for Pantnagar Metal Plant
1st Indian company to introduce
Underground Battery Electric Vehicle
Green company (GreenCo)
certifications for all our smelters
and two mining locations CII
PDA signed for
450 MW Renewable Energy
Round the Clock (RE-RTC)
GHG Emission
Scope 1: 3.44 million tCO2e
Scope 2: 1.14 million tCO2e
Scope 3: 4.16 million tCO2e
89,896 tCO2e emission reduced by biomass use
Introduction of Group EV purchase policy for employees
CDP Climate Change Rating A CDP Water Security A-
oversight on climate-related issues as they are quarterly updated with recent developments. They also provide guidance on regular basis. We have a unique three tier structure to drive sustainability practices from highest decision-
Moving towards a low carbon business can pose challenging, however we have already started our transition to a low carbon business and plan to develop it further.
Key Highlights - FY2023
05 | 06 |
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Disclaimer
Hindustan Zinc Limited published this content on 25 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 August 2023 12:50:01 UTC.