Water Resources

Natural Capital Impact Assessment

We conducted natural capital impact assessment to assess the invisible impacts (both positive and negative) on nature or natural capital. Natural Capital Impacts are calculated (quantity and economic valuation) across six KPIs - namely, greenhouse gas (GHG) emissions, air pollution, water consumption, water and land pollution, waste generation, and land use change. The assessment study was carried out to quantify and value the natural capital impacts of JSW’s direct operations, upstream indirect impacts, avoided impacts due to waste recycling, selling of co-products, etc., and impacts due to biological carbon sequestration. The assessment covered JSW Steel's three Integrated Steel Plants and evaluated direct operational impacts, upstream value chain impacts, avoided impacts arising from waste recycling and co-product utilisation, and benefits associated with biological carbon sequestration. Standardised methodologies were applied to quantify environmental impacts and translate them into monetary values, enabling a comprehensive understanding of the relationship between business activities and natural capital.

The assessment also considered the perspectives of key stakeholders, including society, consumers, suppliers and the environment, providing insights into the broader value created or impacted through our operations. By quantifying natural capital impacts in financial terms, we are able to better understand potential risks, dependencies and opportunities associated with the use of natural resources and ecosystem services.

The assessment enables us to identify environmental externalities across our operations and value chain, supporting informed decision-making and helping identify nature-related risks and opportunities. The findings provide a holistic view of sustainability performance by linking environmental impacts with economic valuation and highlighting priority impact areas across both operations and the upstream value chain. Insights from the assessment are used to support prioritisation of resource-efficiency initiatives, emissions reduction measures and broader environmental management interventions across the business. The measures can be found in our Integrated Annual Report and the Climate Action Report .