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Hindalco Industries Limited, the metals flagship of the Aditya Birla Group, has been ranked as the World’s Most Sustainable Aluminium Company for the fifth consecutive year in the 2024 edition of the S&P Global Corporate Sustainability Assessment (CSA) rankings.
Achieving a total score of 87 points as of October 30, 2024, Hindalco's sustainability efforts are further underscored by its impressive 9-point improvement over the previous year. The company remains 22 points ahead of its nearest competitor, securing its position as the top aluminium company in the rankings. Hindalco’s continued dominance in the sustainability sector highlights its focus on long-term environmental, social, and governance (ESG) factors.
The S&P Global CSA ranks the top 10 percent of companies from the 2,500 largest companies in the S&P Global Broad Market Index based on ESG performance. Hindalco’s consistent efforts to raise its ESG standards have earned it a position in the DJSI World Index, which includes only the most sustainable companies across various industries.
Mr. Satish Pai, Managing Director of Hindalco Industries, commented on the achievement: “Our significant score improvement reflects our ongoing commitment to raising our Environmental, Social, and Governance standards. Through initiatives such as biodiversity conservation, water positivity, zero waste to landfill, and net-zero emissions, we continue to make strides in our sustainability journey.”
Key Achievements:
Hindalco's exceptional ESG performance spans all three pillars—environmental, social, and governance—where it achieved the 100th percentile in key categories such as climate strategy, social reporting, waste management, and resource consumption. The company made substantial progress in emissions reduction and climate action, such as the 100 MW carbon-free power project established at its Odisha smelter, which won the 'Energy Transition Changemaker' award at COP28. Furthermore, Hindalco reduced its specific greenhouse gas (GHG) emissions by 19.54% from the FY 2011-12 baseline, aiming to source 30% of its energy from renewable sources by 2030.
The company also achieved a significant recycling milestone, with 85% of its operational waste being recycled in FY24. Three of Hindalco’s units received zero-waste-to-landfill certification, moving towards its goal of achieving zero waste by 2030. Hindalco’s US-based subsidiary, Novelis, is the largest aluminium recycler in the world and processed approximately 2.3 million metric tonnes of recycled aluminium in FY24, reducing carbon emissions globally.
In addition to its environmental performance, Hindalco maintained its top position in the social category with a score of 89%, outperforming its closest peer by 26 percentage points. The company’s social investments in FY24 included ?154 crore for community programmes that impacted over 2.5 million lives. Hindalco’s governance practices also received a score of 84%, which is 12 percentage points ahead of its nearest competitor, underlining its commitment to transparency and risk management.
Sustainability and Future Goals:
Hindalco’s ranking in the S&P Global CSA reinforces its leadership in sustainability within the aluminium industry. The company’s focus on improving its ESG performance aligns with its vision of creating a positive, lasting impact on the environment, communities, and stakeholders. Hindalco aims to continue its efforts to reduce emissions, increase recycling, and integrate sustainable practices across its global operations.
The S&P Global Corporate Sustainability Assessment tracks over 10,000 companies worldwide, evaluating their performance based on key economic, environmental, and social criteria. Hindalco’s consistent performance over the past five years demonstrates the company's dedication to maintaining its position as a global leader in sustainability.
