Hindalco Scope 3 Strategy: Sustainable Manufacturing

Hindalco Industries, the metals flagship of the Aditya Birla Group, has taken a significant step towards addressing Scope 3 emissions with its latest sustainability initiative at the Aditya Aluminium plant in Odisha. The project demonstrates Hindalco's commitment to reducing its carbon footprint and showcases how companies can extend their sustainability efforts throughout their supply chain.

Transforming Transportation with EVs

Hindalco's introduction of EV bulkers for fly ash transport marks a pivotal moment in the company's sustainability journey. The innovative approach tackles Scope 3 emissions head-on by focusing on transportation, a key component of the supply chain.

Sukanta Das, President and Chief Logistics Officer at Hindalco Industries, highlighted the significance of the move: 

"This marks an important milestone as we induct the first set of EVs into our transportation fleet. These EVs will be pivotal in transporting our critical waste, Fly Ash, to the cement industry as input material, contributing to a greener transportation system and the circular economy".

Environmental and economic benefits

The shift to EV bulkers is expected to yield substantial environmental and economic benefits:

• Annual reduction of 3,500 tonnes of CO2 emissions
• Decrease in freight costs by Rs 1.5 crore

The outcomes demonstrate how addressing Scope 3 emissions can lead to both environmental sustainability and cost efficiency.

Expanding green transportation initiatives

Hindalco's commitment to sustainable transportation extends beyond EV bulkers. The company is actively working on:

1. Increasing the use of liquefied natural gas (LNG) for road transport
2. Expanding rail transportation by connecting new mines and plant locations to India's rail network

The multifaceted approach to green transportation aligns with expert opinions on addressing Scope 3 emissions. As noted by industry experts, "Scope 3 is a very complex matter that requires a lot of collaboration within companies and across organisations, with financial institutions".

Circular economy and waste management

Hindalco's sustainability efforts go beyond transportation, encompassing a broader circular economy vision:

Waste utilisation in cement production

It actively promotes the use of various waste materials in cement production:

• Fly ash
• ETP sludge
• Red mud
• Spent pot liners
• FGD waste

The materials contribute to producing eco-friendly cement varieties like Portland Pozzolana Cement (PPC) and composite cement, conserving finite natural resources.

Copper slag in construction

Hindalco supplies copper slag, a byproduct of its copper smelting process, for use in ready-mix concrete. The innovative approach replaces sand in construction, further contributing to sustainable practices.

Global recognition for sustainability leadership

Hindalco's comprehensive approach to sustainability has earned it global recognition:

• Ranked as the world's most sustainable aluminium company by the Dow Jones Sustainability Indices (DJSI) from 2020 to 2023
• Received the Energy Transition Changemaker award at COP28 for its 100 MW round-the-clock carbon-free power project at the Odisha smelter

Satish Pai, Managing Director of Hindalco Industries, highlights the company's holistic approach to sustainability: 

"We have been able to significantly boost our score because of our consistent efforts to raise our Environmental, Social and Governance standards. This highlights our inclusive approach to ESG, which includes committed efforts to maintain biodiversity, water positivity, zero waste to landfill and ultimately achieving net-zero emissions".

Hindalco's initiatives at the Aditya Aluminium plant in Odisha demonstrate how companies can effectively address Scope 3 emissions while promoting sustainability throughout their supply chain.

Hindalco is setting a new standard for sustainable manufacturing in the metals industry by focusing on green transportation, waste management and circular economy principles. As companies worldwide grapple with the challenges of reducing their environmental impact, Hindalco's multifaceted approach offers valuable insights into creating a more sustainable and resilient future.

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