Cement, Energy and Environment

ESG in the Cement Industry LCA and Sustainability In the cement industry in India, major cement players have been reporting on ESG indicators as per guidelines to some extent. In the last couple of years, there has been improvement seen in the sustainability reporting and coverage of ESG indicators. Even earlier, few of the companies were just publishing the social responsibility report and environmental performance for compliance requirements, but over the years the report spectrum has been broadened. An emerging indicator has been included in the reporting. Global Reporting Initiative (GRI) standard, Cement Sustainability Initiative (CSI) have been adopted by most of the cement companies in India, which is also Life cycle assessment (LCA) is a scientifically structured, comprehensive and internationally standardised environmental management tool. Which quantifies all relevant inputs encompassing all resources, electrical, and thermal energy consumed and outputs like emissions and products. The aware of the company's operating practices, reputation and commitment can play a vital role assessing the companies wherever there are providing an insight into the intangible assets of a company is the second driver of ESG investment. The company goes beyond simply accessing its financial assets that investors should rely on. An overall evolution of a company to determine its market value. The company can afford to invest in human capital through employee training and its corporation with the product standard and safety regulations and its reputation for fair working practices among many other previously mentioned ESG factors can contribute to establishing the viability of an investment decision. Lastly, the entrepreneur, government, the media and the public have become strong supporters of ESG investment, fuelling its rapid growth. Growing demand from environmentally and socially conscious consumers and business clients around the world has spurred companies to be more accountable for their working practices and the impact of their activity on society and the environment. As a result, companies are placing greater focus on ESG factors and indicators and improving transparency reporting to demonstrate their commitment to remain competitive with other companies. Trend and Prospects in recent decades, ESG investment has gained global momentum, and it is now regarded as one of the fastest-growing investment areas in the world. Behind this rapid growth has been the knowledge that the ESG factor can increase a company's financial performance in contrast with the previous belief that intangible environmental and sustainable performance could only be improved by sacrificing financial gain and profit. aligned with the Sustainability Accounting Standards Board (SASB) that played a pivotal role in standardising ESG reporting among Indian companies. There are some areas which need to be focused while making ESG disclosures. Carbon emission trends are available, but carbon neutrality and upsetting have not gained the same momentum. Science-based target setting and internal carbon pricing are lacking by the majority of the company. Enterprise risk management integration with climate risk and interlink financial disclosures are yet to be quantified by the companies and be incorporated in the ESG disclosures. The sample represents approximately 50% of the cement production, which gives inferences that approximately 60% of the company still has the opportunity to establish more strategic and quantifiable disclosure on ESG indicators. The importance of ESG considerations in business has gained significant attention globally. Driven by increasing awareness of environmental issues, social inequalities and corporate governance failures. In the context of India, a similar awakening is taking place within the corporate landscape. Companies operating in India are increasingly recognising the imperative nature of aligning their strategies and operations with ESG principles. This shift represents a significant departure from traditional business practices, highlighting a big transformation in Indian business and government while widespread discussions and research are going on. All ESG at the global level, but there is limited understanding of how Indian companies are following this transformative journey. Regulatory bodies in India such as. Securities and Exchange Board of India (SEBI) and Ministry of Corporate Affairs (MCA) are crucial in promoting environmental, social and governance reporting. 29