Target for 2030
Achieve CO2 emission intensity of 1.95 tCO2/tcs
(42% reduction from 2005 levels).
We aim to lead the industry in low‑carbon steel production by adopting cleaner energy, circular economy principles, and process efficiency improvements. Our targets reflect our long‑term commitment to carbon reduction and neutrality.
Achieve CO2 emission intensity of 1.95 tCO2/tcs
(42% reduction from 2005 levels).
Achieve carbon neutrality for our Scope 1 and Scope 2 emissions across all operations.
We have already achieved a 29% reduction in CO₂ emissions per tonne of crude steel from baseline 2005.
For more details about our Decarbonisation Strategy, please refer to our
Climate Action Report 2024..
Sustainability is at the heart of our business strategy. Guided by strong leadership and a robust governance framework, our climate governance is anchored at the Board level through the Business Responsibility & Sustainability Reporting Committee and the Risk Management Committee, which jointly oversee climate strategy and risk management. Oversight is strengthened by the Executive Committee, ensuring sustainability KPIs and performance are reviewed regularly. Driving implementation is the Climate Action Group (CAG), a cross-functional team that integrates climate considerations into operations, R&D, supply chain, and strategy. This structured approach ensures accountability, proactive risk management, and alignment with our long-term sustainability goals.
Our actions are guided by the company’s policies and reflect JSW Steel’s commitment to sustainability and guide our long-term strategy. Read more about our Climate Change Policy .
We recognize that climate change presents both transition and physical risks to our business. Climate-related risks and opportunities are integrated into our enterprise risk management framework and are further supported by dedicated climate risk assessment processes. Using internationally recognized climate scenarios and methodologies, including IPCC and IEA pathways, and aligned with TCFD recommendations, we assess current and emerging regulatory, legal, technology, market, reputational, acute physical and chronic physical risks across our own operations, upstream supply chain and downstream markets. Climate resilience is evaluated across short-, medium- and long-term time horizons, with insights embedded into strategic planning, capital allocation, decarbonization initiatives and adaptation measures to support a resilient, low-carbon future.
To ensure resilience and alignment with national and global climate goals, we integrate climate risk considerations into our governance, operations, and financial planning. We have developed a 2030 low carbon and sustainable development roadmap for all our operations to accelerate transition towards green and climate resilient business as well as meet our net neutral by 2050 goal. This is driven by our context specific plan to implement adaptation measures to mitigate the physical and transitional climate risks.
For detailed insights into our climate risk assessment, mitigation strategies, and scenario analysis, please refer to our Integrated Annual Report and Climate Action Report
Below are the most material climate-related risks and opportunities affecting our business, along with the measures implemented to manage and respond to them:
The European Union’s Carbon Border Adjustment Mechanism (CBAM) entered its definitive phase on January 1, 2026, requiring importers of regulated goods to report embedded emissions and surrender corresponding CBAM certificates. Designed to prevent carbon leakage and align the carbon cost of imports with that faced by EU manufacturers, CBAM presents a regulatory transition risk for exporters to Europe. It may increase compliance and carbon-related costs, affect the competitiveness of emissions-intensive products, and influence customer demand and market access. The potential financial impact associated with this risk is estimated at 605 Cr. Given Europe’s importance as a market for our products, we are strengthening emissions accounting, engaging customers and suppliers to ensure timely and verifiable data, assessing potential exposure, and exploring opportunities to reduce product carbon intensity. These measures enhance our preparedness and resilience as the regulatory framework evolves.
Our operations depend on a stable and reliable water supply. Climate-driven changes in rainfall patterns and rising water stress may constrain water availability, potentially disrupt operations and increasing costs, thereby presenting a material physical risk. The potential financial impact associated with this risk is estimated at 318 Cr. To manage this exposure, we have implemented an integrated Water Stewardship Programme across our operations, focused on improving water efficiency, expanding rainwater harvesting and recycling, and maintaining zero-liquid discharge (ZLD) through technology-driven and community-oriented initiatives. These measures strengthen operational resilience and support the responsible management of increasingly scarce water resources and associated natural capital dependencies.
JSW Steel integrates climate change and broader Environmental, Social and Governance (ESG) considerations into its performance management and remuneration framework, reinforcing accountability for the delivery of the Company's sustainability objectives across leadership and relevant business functions. ESG-related targets are incorporated into the performance assessment of senior leadership, including Executive Directors, as well as relevant business unit managers and employees across operations. ESG parameters constitute a mandatory Key Result Area (KRA) for senior leadership and account for approximately 15-20% of the annual performance assessment linked to variable remuneration. Key performance areas include safety, environmental stewardship, climate change, community impact, product responsibility, and governance.
We have embedded carbon costs into our investment decisions to future-proof operations and accelerate low-carbon growth. This pricing mechanism acts as a reference cost for our central CAPEX committee when evaluating Annual Business Plans (ABPs) and new capital projects. By integrating carbon costs into financial decisions, we aim to:
We have adopted a shadow internal carbon price of USD 20/tonne across Scope 1, Scope 2 and Scope 3 emissions. The internal carbon price is used as a strategic tool to assess climate-related risks and opportunities, support investment decision-making, evaluate the financial implications of carbon-intensive projects, and strengthen long-term climate resilience.
The shadow carbon price helps drive energy efficiency initiatives, identify and prioritize low-carbon investment opportunities, support the achievement of climate-related targets, navigate emerging regulatory requirements, and incorporate climate considerations into enterprise risk management and financial planning. It is also used to conduct cost-benefit analyses and stress-test investments under different carbon-constrained scenarios, enabling informed decision-making as we progress towards a low-carbon future.
At JSW Steel, we have established a comprehensive Decarbonization Pathway to support our ambition of achieving net-neutral carbon emissions across all operations under our direct control by 2050. The pathway is aligned with the Paris Agreement and follows a trajectory consistent with efforts to limit global warming to 1.5°C above pre-industrial levels, while remaining well below 2°C. As an interim milestone, we have committed to reducing our emissions intensity to 1.95 tCO₂ per tonne of crude steel (tCO₂/tcs) by 2030, representing a 23% reduction from our 2020 baseline. This target has been derived with reference to the International Energy Agency's Iron and Steel Technology Roadmap and is aligned with a 1.5°C pathway.
To support implementation of our transition plan, we have committed to invest approximately USD 1 billion in decarbonization initiatives and emission reduction projects across our operations. We have also raised USD 1 billion through Sustainability-Linked Bonds, with commitments linked to the achievement of our 2030 emissions intensity target. In addition, we continue to invest in decarbonization-enabling infrastructure, including renewable energy projects, ore beneficiation facilities, energy efficiency improvements, and low-carbon technologies.
Our transition plan is built around a phased decarbonization approach. Key actions planned through 2030 include improving energy efficiency, enhancing operational efficiency through the worldsteel Step Up programme, increasing the use of renewable energy, improving raw material quality, utilizing alternative fuels, and enhancing material circularity through increased scrap utilization. Beyond 2030, we intend to accelerate the deployment of breakthrough technologies, including green hydrogen-based steelmaking, carbon capture, utilization and storage (CCUS), scrap-based electric arc furnaces, and syngas and top gas recycling technologies. These initiatives form the principal decarbonization levers that will enable achievement of our emissions reduction targets.
Our transition plan primarily focuses on reducing Scope 1 and Scope 2 emissions, which form the basis of our 2030 and 2050 decarbonization commitments. In parallel, we monitor and assess emissions across our value chain and report relevant Scope 3 emission categories. We remain committed to progressively quantifying, evaluating, and addressing value chain emissions wherever feasible in support of our broader decarbonization ambitions.
Stakeholder engagement is a key element of our transition plan. We actively collaborate with technology providers, academic institutions, industry experts, government bodies, and cross-sector organizations to strengthen our decarbonization strategy and accelerate implementation. We have established partnerships and collaborative initiatives with organizations including Boston Consulting Group (BCG), JFE Steel Corporation, Larsen & Toubro, IIT Bombay, SMS Group, and the India Hydrogen Alliance (IH2A) to support innovation, technology development, capability building, and sector-wide climate action. Through these engagements, we also work closely with value chain stakeholders, industry associations, and public institutions to advance the transition to a low-carbon economy.
We recognize that the transition to a low-carbon economy can create significant implications for workers, suppliers, communities, customers, and other stakeholders. To address these considerations, we have adopted a dedicated Just Transition Policy, through which we seek to anticipate and manage potential social impacts, promote stakeholder engagement, support reskilling and capability development, strengthen supply chain resilience, and maximize the opportunities arising from decarbonization while minimizing adverse impacts on affected stakeholders and communities.
JSW Steel applies Life Cycle Assessment (LCA) to measure the environmental impact of its products, including their Global Warming Potential (GWP). We have developed high-strength steel with a lower or equivalent lifecycle footprint, enabling:
JSW Neosteel TMT bars and 14 roofing sheet categories are GreenPro certified, reflecting our commitment to sustainable manufacturing. We’re proud to be the first to earn the GreenPro ecolabel for automotive steel, having co-developed its standards.
We have also secured Type III Environmental Product Declarations (EPDs) for all 14 finished products from our ISPs and for all products from our downstream facilities, reinforcing our leadership in sustainable innovation.
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JSW GreenEdge is our certified low-carbon steel solution, designed to help customers reduce their carbon footprint with flexibility and confidence. Through real CO₂ reduction projects within JSW’s value chain, these savings are independently verified and securely tracked in a monitored virtual CO₂ bank. We provide flexible reduction certificates, including for Scope 3 emissions, enabling customers to offset their impact with confidence.
GreenEdge is fully aligned with international standards such as the worldsteel Chain of Custody Guidelines (2024), GHG Protocol, and ISO 22095:2020, and leverages the Book and Claim methodology to ensure complete transparency and traceability without requiring physical segregation of materials. As part of our broader commitment to climate action, GreenEdge empowers industries to transition toward net-zero while maintaining operational efficiency and product integrity. To know more, click here
We actively engage and collaborate with policymakers and trade associations such as ASSOCHAM, WBCSD, World Steel Association, Indian Steel Association, CII, and FICCI to advance climate-focused policies aligned with the Paris Agreement and our sustainability goals. Oversight of these activities is provided by our Board and Sustainability Committee and governed by internal policies such as the Policy on Influencing Public and Regulatory Policy and Climate Change Policy. We advocate for climate-related initiatives that support greenhouse gas reduction, energy transition, carbon pricing, and sustainable resource management, ensuring all engagements remain consistent with the Paris Agreement and our long-term objectives.
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