BALANCING ESG WITH FISCAL PRUDENCE THROUGH RENEWABLE ENERGY

PROBLEM STATEMENT

As the focus of the world is shifting towards green energy, it becomes imperative for a global sustainability leader like Hindustan Zinc to lead the sector by becoming early-adopter of utilisation of renewable energy for metal production, significantly decreasing the global footprint of one of the world’s largest metal portfolios.

OUR APPROACH

• Signed three round-the-clock renewable energy power delivery agreements with Serentica Renewables India Private Limited, totalling to 530 MW, catering to 70% of the overall power requirement by FY2028
• Cheaper sourcing of renewable energy at a fixed rate for 25 years under this partnership, insulated from inflation and exchange rate fluctuations, enhancing visibility on the power cost
• Received certification for our low carbon zinc by a globally renowned sustainability consulting firm through a detailed life cycle assessment

KEY OUTCOMES

• Cheaper green power sourcing from the partnership, aiding in cost reduction on a sustainable basis every year
• Launched Asia’s first low carbon zinc, EcoZen, with an impressive carbon footprint of under 1 tCO₂e, which is 75% lower than the global average. This not only provides a cleaner alternative to the customers enabling a reduction in their Scope 3 emissions, but also drives the global transition to low-carbon, responsible sourcing
• Low carbon product portfolio fetches higher premiums as compared to traditional metals, as it also enables the customers to easily comply with carbon policies of other countries like Carbon Border Adjustment Mechanism (CBAM), etc. With the recent announcement by the London Metal Exchange on introducing a green premium for sustainable metals, EcoZen is well-positioned for a stronger value realisation