JSW Steel on July 18 said it has partnered with US-based Boston Consulting Group (BCG) to meet its decarbonisation goals. JSW Steel has an ambitious target of reducing its carbon emission by 42 per cent by 2029-30 versus base year 2005.
According to a ministry document, the iron and steel industry globally accounts for around 8 per cent of total carbon dioxide (CO2) emissions on an annual basis, whereas in India, it contributes 12 per cent to the total CO2 emissions. Thus, the Indian steel industry needs to reduce its emissions substantially in view of the commitments made at the COP26 climate change conference.
Seshagiri Rao, Joint Managing Director of JSW Steel and Group CFO said, JSW Steel is partnering with BCG to accelerate its journey towards meeting emission targets. This collaboration is focused on applying digital and analytics to track, measure, simulate and enhance the company’s environmental performance, Rao said in a statement.
In the process, BCG will also focus on upskilling JSW Steel’s employees and enhance the sustainability culture across the manufacturing operations. This transformative initiative will play a critical role in scaling up the company’s sustainability initiatives.
Christoph Schweizer, CEO of Boston Consulting Group said, "We will be deploying our proprietary and patented CO2 AI solution to achieve focused change management and impact. This is our second strategic collaboration with JSW Steel following the successful Digital Transformation partnership."
As per the statement, the programme includes a rigorous target-setting exercise, at an overall manufacturing level, devolving them into shop-level targets, and converting emissions targets into actionable tasks on operating metrics.
A team of sustainability champions will lead the deployment across the manufacturing operations. For all mid-to-long term initiatives, a roadmap will be designed aimed at introducing new technologies and initiatives including use of hydrogen, carbon capture and storage, among others.It will also include end-to-end assessment of diverse technology options relevant for existing and new capacities and investments required to further the sustainability goals.