APL Apollo announces its plans to accelerate its push toward ESG (Environment, Social and Governance)

APL Apollo, India’s largest structural steel company, has announced its plans to accelerate its push toward ESG (Environment, Social, and Governance). APL Apollo has committed to reduce Scope 1 and 2 emissions per metric ton of steel produced by 25% by year 2030, against 2022 base-year. The company has also committed to set near term and Net Zero targets for decarbonizing its operations per guidelines set by the Science-based targets initiative, aligned with a 1.5 degree Celsius world.

APL Apollo announces its plans to accelerate its push toward ESG (Environment, Social and Governance)

To achieve its near-term emissions reduction targets, APL Apollo plans to increase the use of renewable energy. In FY22, 38% of APL Apollo’s total energy consumption was from renewable energy sources. At two of APL Apollo’s plants (in Malur, Karnataka and Hosur, Tamil Nadu), over 85% of energy needs were met through renewable energy.

As the company continues to drive its expansion plans, ESG remains a key priority. APL Apollo has entered collaboration with leading global consulting firm, PricewaterhouseCoopers (PwC) to accelerate its decarbonization and ESG agenda. Under this strategic partnership, PwC has provided advisory services to APL to help account for the Greenhouse Gas (GHG) emissions of the company (across Scopes 1, 2, and 3), create an ESG Governance Framework and communicate APL Apollo’s progress on key ESG metrices.

As part of its sustainability push, APL Apollo has also introduced new products to help its customers in their decarbonization journey. For instance, the company’s Tubular Steel product aims to replace conventional construction methodologies. The company believes that Tubular Steel products are more environment friendly due to benefits such as zero dust, lower water consumption, recyclability, and fast speed of construction. Another product, Apollo Chaukhat (Steel door frame), is replacing wood as the material of choice for door frames. The company estimates that adoption of steel door frames instead of wooden frames results in saving of 250,000 trees annually. APL Apollo is hopeful that its products will be instrumental in helping the buildings sector reduce its carbon footprint.

Commenting on the announcement, Mr. Sanjay Gupta, CMD, APL Apollo, said, “Sustainability lies at the heart of APL Apollo’s operations, and we strongly believe it to be the driving philosophy for our business. Our environmentally friendly products such as Chaukhat and Tubular construction solutions are a testament to our sustainability efforts. The partnership with PwC will help us chart our decarbonization strategy and analyze climate related risk and opportunities faced by the business, in line with recommendations set by the Taskforce for Climate-related Financial Disclosures (TCFD). We believe this will enhance our ability to meet stakeholder expectations and drive meaningful contribution to the environment.”