Hindalco share price: This Birla Group company eyes boost from three R of sustainability

Jefferies highlights that Aluminum production is energy intensive, high recycled content in downstream is helping reduce carbon footprint. Rising use of aluminum in autos and packaging is also positive for the environment. Hindalco is also reducing its water consumption and waste. Its high ESG score in global ratings is a testament to its efforts.

Hindalco emphasized how it applies Aditya Birla Group's (ABG) sustainability framework to its business. ABG has adopted a four-dimensional framework for sustainability which encompasses industry, geography, value chain and time horizon; including various operational and strategic aspects.

Hindalco is looking at three R of sustainability:

1) Resilience includes resource security, balanced portfolio, and balance sheet strength;
2) Reliability includes operational excellence, safety, stakeholder engagement and product stewardship;
3) Responsibility towards the environment, people and community. Hindalco's high ESG score in global ratings is a testament to its efforts

Waste and water management:

Hindalco has become the first aluminum company to achieve full red mud utilization at three out of its four refineries by tying up with cement manufacturers. Its is also working to reduce bauxite residue per ton of alumina through ore beneficiation and refining process redesign. It has achieved zero liquid discharge at 75% of its locations and its water consumption has declined by 21% over FY17-20.

Occupational safety, health and human rights:

Hindalco added that it is focussed on establishing inherently safer processes with the help of technology. It is also committed to respect the human rights of its workforce and the community around its operations. It has also created due diligence processes aimed to identify, assess and manage human right risks.

Social impact and governance policy:

Hindalco has integrated its social vision with the business vision and all projects are identified in consultation with the community. Focus areas in corporate social responsibility include education, health care, sustainable livelihood, water & sanitation, rural infra development, and promoting social causes.

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Governance and compliance take place at three interlinked levels:

1) Strategic supervision by the Board of Directors,
2) Strategic Management by the Corporate Management Committees,
3) Executive Management by the units and functional heads

The current share price of Hindalco is Rs 256 down 2% today.