JSW Steel – Decarbonization of steel production with a defined roadmap I India CSR

Advancing the Sustainable Development Agenda

Thanks to strategic investments, advanced technologies and a clear commitment to reducing carbon dioxide emissions, JSW Steel is a leader in green steel production.

NEW DELHI (CSR India): JSW Steel, a pioneer in the steel industry, is committed to promoting sustainable development through targeted CO₂ emission reductions and innovative technologies. The company aims for a 42% reduction in CO₂ emissions intensity by 2030 and aims to achieve net carbon neutrality by 2050. This ambitious vision is supported by a robust roadmap and a range of strategic initiatives to transform steel production into a cleaner, greener process.

Commitment to Sustainable Development

JSW Steel’s sustainability initiatives are comprehensive and forward-looking. The company plans to reduce CO₂ emission intensity of up to 1.95 tonnes per tonne of crude steel by 2030. By implementing advanced technologies such as green hydrogen, the use of syngas and carbon capture, utilization and storage (CCUS), JSW Steel is positioning itself as a leader in sustainable steelmaking.

These efforts have earned the company global recognition, including inclusion in the DJSI World Index and the DJSI Emerging Markets Index. The Sustainable Energy Environment and Decarbonisation (SEED) programme, a flagship decarbonisation initiative, was awarded the Global Energy Transition Changemaker Award at COP 28.

“Meanwhile, our sustainability efforts continued to gain global recognition, with Leadership ratings from CDP for climate change and water. We were included in the Dow Jones World and Emerging Markets Sustainability Indices. We were named a Sustainability Champion by the World Steel Association for the sixth consecutive year,” Sajjan Jindal, CEO of JSW Steel Limited reported in the Annual Report 2023-24.

$1 billion investment to achieve net carbon neutrality by 2050

JSW Steel also plans to invest $1 billion in its operations to reduce carbon emissions, aiming to achieve net carbon neutrality by 2050. While India has committed to achieving net carbon neutrality by 2070, JSW Steel has set an ambitious target of achieving this 20 years earlier.

In the first phase, by 2030, JSW Steel intends to reduce emissions to 1.95 tonnes of CO₂ for every tonne of steel produced, compared to the current 2.36 tonnes of CO₂ per ton of steel.

In the second phase, by 2050, the company aims to achieve net neutrality. This will be achieved by combining the use of green hydrogen and carbon capture, utilization and storage (CCUS) technology.

“In January 2024, we announced our commitment to achieve net carbon neutrality by 2050, significantly ahead of India’s commitment to achieve net zero emissions by 2070, through both near-term and long-term initiatives. We recently published our first Climate Action Report, which outlines our progress towards decarbonization and future efforts,” Sajjan Jindal, he said.

The Role of Steel in Nation Building

Steel is an integral part of nation building and a significant contributor to industrial CO2 emissions.₂ emissions, accounting for 12% of India’s total energy infrastructure emissions. As India accelerates its development, JSW Steel is committed to pioneering clean and green steel production. The company’s goal of achieving net carbon neutrality by 2050, ahead of India’s 2070 commitment, underscores its commitment to sustainability.

The planned investment of USD 1 billion across all operations and the issuance of USD 500 million of sustainability-linked bonds demonstrate JSW Steel’s proactive approach.

“At JSW Steel, we are in ‘mission mode’ to play a key role in realising the full potential of India’s growth story. I remain very confident about the future prospects of the steel industry in India. Our commitment to nation building also includes realising our dream of seeing the country as a sports powerhouse. As a sponsor of Team India, our efforts are geared towards creating champions who will stand proudly on the podium at the 2024 Paris Olympics.” Sajjan Jindal, CEO of JSW Steel Limited he said.

Table 1: Emission Reduction Targets and Achievements

Goal/Task	Description
2030 WHAT2 Emissions intensity target	1.95 tons of CO2 per ton of raw steel (42% reduction)
Net neutrality target for 2050	Achieving carbon neutrality for all operations under direct control
Sustainability-linked bonds	Raised $500M in US Dollar-denominated Sustainability-Linked Bonds
Global recognition	Included in the DJSI World Index and DJSI Emerging Markets Index; Climate Change Leadership Assessment
SEED Program Award	Global Energy Transition Changemaker Award at COP 28

Vijayanagar: A Model of Sustainable Development

From a greenfield project in a barren area to India’s largest integrated steel plant at a single location, the Vijayanagara story exemplifies JSW Steel’s commitment to sustainability.

With a production capacity of 12.5 MTPA and a vast green area comprising 18 lakh trees spread over 7,800 acres, the Vijayanagar plant reflects the company’s focus on technology, innovation and environment.

JSW Steel intends to expand the plant’s production capacity to 25 MTPA, aiming to make it the largest steel-producing complex in the world.

Table 2: Key facts about Vijayanagar plant

Function	Description
Production capacity	12.5 million tons per annum (MTPA)
Green cover	18 lakh trees spread over 7800 acres
Plant evolution	From a Greenfield Project to India’s Largest Integrated Steel Plant at One Place
Future expansion plans	The goal is to increase the capacity to 25 MTPA
Commitment to Sustainable Development	Driven by technology adoption, innovation, environmental protection and community well-being

Steel at the heart of progress

JSW Steel believes that steel is essential to economic progress and prosperity because of its versatility and infinite recyclability. The company’s high-quality steel products are essential to building India’s critical infrastructure, from high-speed rail networks and highways to nuclear power plants and renewable energy projects.

JSW Steel also supports the energy sector by supplying materials for solar and wind energy projects, helping India transition towards sustainable energy sources.

Strategic Decarbonization Levers

To achieve its 2030 and 2050 goals, JSW Steel has identified key strategic levers:

Ensuring energy efficiency

The company is focused on improving energy efficiency in its operations, using renewable energy sources and increasing the use of steel scrap. Pilot projects are being implemented on deep decarbonization technologies to increase process efficiency.

Table 3: Strategic levers for decarbonization

Lever	Description
Energy efficiency	Focus on improving energy efficiency and using renewable energy
Alternative fuel sources	Use of Syngas, TGR in Blast Furnace and Green Hydrogen for Steel Production
Use of steel scrap	Increasing the use of steel scrap to reduce emissions
Renewable energy purchases	Planned addition of 600 MW of solar and wind combined with 320 MWh of battery storage
Green Steel Production Plant	Establishment of a green steel production plant, initially with a capacity of 2 MTPA, with the possibility of expansion to 4 MTPA
Carbon capture, utilization and storage	Large-scale implementation of CCUS and Nature-Based Solutions (NbS)
Environmental Product Declarations (EPD)	Obtained for all finished products

Focus on energy transformation

JSW Steel is actively transitioning to renewable energy, with plans to add 600 MW of solar and wind power combined with 320 MWh of battery storage. This will increase its total renewable energy supply to over 1.6 GW. The company is also planning to set up a green steel plant at one of its existing locations, initially with a capacity of 2 MTPA with the possibility of expansion to 4 MTPA, meeting the global demand for green steel.

Alternative fuel sources

The use of alternative fuel sources, such as syngas and TGR in blast furnaces (carbon cyclicity), is a key element of JSW Steel’s strategy. The company is also exploring the commercial use of green hydrogen for steel production and the use of electric arc furnaces for scrap.

Long-term vision and recognition

JSW Steel’s decarbonization strategy is aligned with the International Energy Agency’s (IEA) Iron and Steel Technology Roadmap (2020), supporting the Paris Agreement’s goals to limit global temperature increase. The company aims to achieve net zero emissions by 2050, including both direct and indirect emissions.

SEED Initiative: Leading the Way

Initially launched in Vijayanagar and expanded to Dolvi, the SEED project is at the forefront of JSW Steel’s decarbonisation efforts. Recognised as a leading Global Energy Transition Changemaker at COP 28, SEED is an example of the company’s commitment to sustainability.

Paving a greener path

In January 2024, JSW Steel reaffirmed its commitment to achieve net carbon neutrality by 2050, significantly ahead of India’s 2070 target. The company’s first Climate Action Report details its progress and future plans, including obtaining Environmental Product Declarations (EPDs) for all finished products and achieving GreenPro certification for Auto Steel and TMT.

Table 4: Decarbonization goals and strategic levers

Year	Objective	Strategic levers
2030	1.95 tons of CO2 per ton of raw steel (23% reduction from 2021)	Ensuring energy efficiency Focus on energy transformation (renewable energy) Active improvement of material quality Use of alternative fuel sources Increased use of steel scrap Deep Decarbonization Technology Pilot Projects Increasing process efficiency
2050	Net neutrality in Carbon dioxide emissions	Commercial use of green hydrogen in steel production Electric arc furnaces for scrap Use of Syngas and TGR in BF (Closed Carbon Cycle) Large-scale CCUS implementation Carbon offsetting and sequestration Nature Based Solutions (NbS) Increasing material efficiency on the demand side Alternative steel production technologies, e.g. electrolysis

JSW Steel continues to earn global recognition for its efforts while remaining steadfast in its mission to build a sustainable future for the steel industry and beyond.

(CSR in India)