Indian conglomerates step up sustainability goals amid rising climate risks

Increased frequency of extreme weather events, including heatwaves, landslides and floods, has spurred Indian conglomerates such as Larsen & Toubro (L&T), RPG Group and Vedanta to strive for new sustainability milestones.

L&T – which has interests spanning engineering, construction, manufacturing, information technology and financial services – has launched a Green Campus initiative this year, under which all of its permanent campuses will work on initiatives related to energy and emissions, water, biodiversity, waste, resilience and inclusivity.

At natural resources and technology conglomerate Vedanta, environmental, social and governance (ESG) metrics are now fully embedded into business performance goals, covering carbon intensity, water reuse, biodiversity restoration, safety incidents and diversity hiring, according to Priya Agarwal Hebbar, non-executive director, Vedanta Limited.

Besides, one-third of payouts under the Long-Term Incentive Plan are now driven by long-term ESG targets, including specific carbon reduction goals.

L&T is also planning to get its facilities certified as single-use plastic-free and zero-waste-to-landfill by a recognised third party. It is switching from a diesel generator to an electricity generator and replacing lower-energy-efficiency equipment and appliances.

The company has also reduced emissions in the galvanisation process by using compressed biogas (CBG) instead of LPG. “This required changes in process and equipment, special arrangements for stable fuel supply and iterative testing,” said Santosh Kumar Singh, head - sustainability, L&T.

Now the company is exploring the deployment of CBG at other facilities as well in other manufacturing processes.

L&T has developed an innovative solution for the ElectroSlag Strip Cladding process, a critical technology used to apply corrosion-resistant layers such as stainless steel or Inconel alloys to reactor surfaces.

Tyre manufacturer CEAT, originally founded in Italy and now part of the RPG Group, has developed Sustainmax, a high-end VF (very high flexion) tyre with 90% sustainable material.

A company spokesperson said these tyres are made from renewable raw materials drawn from bio sources, such as natural rubber, bio circular polybutadiene rubber, rice husk silica, bio-based resin and recycled material.

KEC International, also part of the RPG Group, and a diversified infrastructure engineering procurement and construction firm, built the first and largest digital substation in India for PowerGrid in Navsari, Gujarat, in April. These digital substations will reduce carbon emissions as they use fibre optic cables and digital technology instead of traditional copper wiring.

“We have also mandated the use of fuel-efficient vehicles for all factory-related transportation, ensuring that our logistics operations contribute to our low-carbon agenda,” said Vimal Kejriwal, managing director and CEO, KEC International. “At KEC, sustainability is not a separate function; it is a mindset that informs how we build, operate and innovate.”

Raychem RPG has facilitated the retirement of 222 tonnes of carbon dioxide equivalent (tCO₂e) through investments in verified carbon offset initiatives, including a 25 MW photovoltaic solar project in Gujarat and afforestation efforts in the Keo Seima Wildlife Sanctuary, Cambodia.

“We have deployed EVs (electric vehicles) for our outsourced service provider, which has helped reduce vehicular emissions by approximately 3 tCO₂e,” said Vivek Venkatachalam, CEO, Raychem RPG.

IT services management firm Zensar launched a 250 kW solar carport solution project in March at one of its key facilities. The project generates clean, renewable energy and provides shaded parking.

Early this year, Vedanta launched VEDAS (Academy for Sustainability) in partnership with AXA Climate, where it is training more than 100,000 employees in climate mitigation, resource efficiency, biodiversity and community engagement modules.

For all sustainability initiatives, Vedanta is working with both in-house and external experts.

It is currently rolling out a double materiality assessment across its business units - aluminium, zinc, oil and gas, iron-ore, copper and power. “The idea is to check both sides of the equation,” said Hebbar.

Vedanta is also deploying artificial intelligence-machine learning-driven ESG data platforms, in partnership with SunTec and SG Analytics, for real-time data capture, anomaly detection and streamlined reporting.

In April, the conglomerate introduced an electric vehicle purchase subsidy for employees, encouraging cleaner personal mobility, one of the first such steps in India’s industrial sector.