Reliance Industries sees big opportunity in global consensus against climate change

RIL Chairman and Managing Director Mukesh Ambani

Reliance Industries has articulated its Environmental Social and Governance (ESG) strategy to achieve net-zero carbon status by 2035 in its annual report, as the company that runs the world’s largest refining complex sees big opportunity in the sustainable business.

“This is part of a wider ambition to achieve best-in-class standards across environmental, social and governance parameters under the oversight of our Board,” Chairman and Managing Director Mukesh Ambani said in his note to the shareholders.

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Ambani’s comments come at a time when a global consensus is emerging for action against climate change, helped by strong support from US President Joe Biden, while fossil fuel majors like Exxon are facing what its director Ursula Burns called a “tidal wave” of investor concerns on ESG issues.

Ambani sees opportunity in this. “The world is now closing ranks for strong global action on climate change. This gives Reliance the right opportunity to accelerate our new ambitions New Energy and New Materials business wedded to the vision of clean and green development,” he said.

02C Business Future Sustainable Growth Strategy

Carbon emitting businesses worldwide are devising innovative ways to be sustainable. Reliance Industries’ flagship Oil To Chemicals (O2C) business has charted out the strategy to reduce its carbon footprint.

The conglomerate is in transition from fossil fuels to renewables for captive energy demand in the O2C business.

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Other measures include the transition from transportation fuels to produce chemical building blocks integrated with sustainable downstream derivatives. Scaling up recycling in materials & CO2 capture and conversion to useful chemicals and materials will give the added thrust. Conversion cost reduction through productivity and minor capex projects is also part of an investment to achieve the environmental goals.

Road To Sustainability

RIL’s annual report highlights various aspects of its moves to meet its ESG target, the note said. “The company considers the Net Carbon Zero target as its moral responsibility to protect the earth from the rising impact of climate change.”

Reliance, operating in different verticals, is putting in place a cross-business approach to reduce environmental footprint. It is also banking on its adoption of technology solutions to ensure sustainability of operations. Water management, waste management, energy efficiency, circular economy are all the tenets being adopted across various businesses, it said.

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