Esg Practices towards Achieving Sustainability: A Case of JSW Ltd.

 

Sathvik S

Associate Professor, Department of Management Studies,

Ballari Institute of Technology and Management (Autonomous Institute Under VTU- Belagavi)

Jnana Gangotri Campus, Ballari- Hosapete Road, Near Allipur, Ballari-583104, Karnataka.

*Corresponding Author E-mail: ssathvik9262@gmail.com

 

ABSTRACT:

The concept of green finance aims at achieving sustainable development goals and economic development of nation by utilizing natural resource to improve the efficiency of business. In order to finance business operations every firm need capital to meet the objective of sustainable financing through green investments. Green growth is achieved through harmony between economy and environment through sustainable business practices. Green projects are financed through stocks, bonds, mutual funds etc. The underlying principle of green investments is to minimize the hazardous risks and socially responsible investments which aim at eco-friendly and these investments emerged as sustainable accounting and reporting meeting with Economic, Social and Governance compliance. The ESG framework drives towards sustainable investments and pushing entities to make investments in green projects. Covid-19 Pandemic has brought tremendous changes in investment pattern and perception of investors was positive, which is evident from increased in assets under ESG funds post covid-19 scenario. The present research study aims to understand the Significance of ESG in achieving sustainable business. Author has made an attempt to demonstrate how the JSW group evolved itself into sustainable investments. The present study concentrates on sustainable investment practices of JSW ltd, secondary data has been collected from annual reports, financial statements, ESG data book and BRSR reports etc besides this ESG scores has been collected from NSE index, authentic e-sources, research articles published in repute journals are majorly utilized. Green investments emerged as new approach to invest funds in socially responsible projects and these investments are part and parcel of sustainable development goals. Green investments have greater power to drive innovation and foster long term growth as well as economic development of nation. 21st century investments have seen rapid increase in sustainable investments. Investments are driven by environmental risks and such investments have become need of the hour. Green energy sector is rapidly expanding globally green finance investments in India demonstrate 25% of total requirement across sectors. Author of the study has only concentrated on JSW ltd and sustainable investment practices of the company. An attempt is made to understand the current status of sustainable investment only simple key financial ratios are used to analyse the financial performance.

 

KEYWORDS: ESG, Economic development, Green finance, Sustainable investments, JSW ltd.

 

INTRODUCTION:

Investment is the key for development of any economy in the world and sustainable finance comprises of investment decisions pertaining to procurement of funds and its utilization in sustainable economic activities and projects and the major consideration sustainable finance includes Environmental, social and governance frame work. Sustainable finance can be viewed as financial support for economic growth by considering environmental considerations like climate change, green gases emissions etc besides this protection of environment and species on earth. Social considerations comprises of inclusiveness, gender inequality, employee relations and welfare of general public. The governance is twofold public and private institutions which includes management and organizational hierarchy, share holder and stakeholder’s relationship, executive remuneration plays a major role in ensuring the inclusion of Environmental and social considerations in strategic planning and decision making of any organization. Sustainable finance incorporates the transparency when it is associated with risks pertaining to ESG factors that may have significant influence on financial system and requires mitigation of such risks through proper governance and mechanism in corporate.Green finance is the emerging investment avenue which is pertaining to employment of funds in environmental friendly projects over a period of time the concept has gained significant importance due to changes in climate and global warming, potential risks associated with living organism on earth etc are the factors promoted green investments in India and globally. The concept of green finance aims at achieving sustainable development goals and economic development of nation by utilizing natural resource to improve the efficiency of business. In order to finance business operations every firm need capital to meet the objective of sustainable financing through green investments. Green growth is achieved through harmony between economy and environment through sustainable business practices. Green projects are financed through stocks, bonds, mutual funds etc. The underlying principle of green investments is to minimize the hazardous risks and socially responsible investments which aim at eco-friendly and these investments emerged as sustainable accounting and reporting meeting with Economic, Social and Governance compliance. The ESG framework drives towards sustainable investments and pushing entities to make investments in green projects. Covid-19 Pandemic has brought tremendous changes in investment pattern and perception of investors was positive, which is evident from increased in assets under ESG funds post covid-19 scenario.

 

REVIEW OF LITERATURE:

SI NO

Author/ Sustainability Reports/ Year

Objectives of the research

Outcomes of the research

01

Danilov (2021)

The objective of research work is to develop a theoretical framework for sustainable finance and investments. To examine the UN models of environment

The study has provided valuable insights pertaining to ESG frame work, author has opined investment patterns and way of conducting investment approaches towards sustainable investments requires attention in financing its operations.

02

Ranjan, Ghosh and Nath (2021)

The objective of the study is to study the status of green investments in India and developed economies.

Findings of the study revealed that awareness among investors has increased towards green investments, green finance is one of the higher priority for making public policy.

03

Mitra et.al (2020)

Had examined the green finance infrastructure in India.

International financial infrastructure has to be developed for green investments an establishment of green bank and frame work has to be developed.

04

Ferriani and Naptoli (2021)

To examine the ESG and sustainable practices of companies and investors view point.

Investors focus towards green investments and sustainable projects has increased. Investments are increased in assets with stronger ESG.

05

Mathhew Archer (2019)

Objective of his research work is to highlight the strategies of companies to enable investors in making sustainable investment projects

Findings of the study had revealed that changing perception and consideration of investors towards sustainable investments, concern towards society and environment are major influencing factors in case of rational investors

06

Mariam AI Muhairi et.al (2019)

Aim of the study was to trace out the major factors attracting ESG investments and its impact on climatic factors and environment

The authors have suggested that a proper and well planned framework has to developed to address the climate risks, green house gases and othe sustainable issues. Study concludes that ESG has significant impact on climate and environment.

07

Bhati (2015)

Has examined the performance of equity mutual funds.

The study revealed that more investment opportunities available in green investments for investors.

08

Banerzee (2022)

To study the parameters and disclosure norms on social investments.

To enable better comparability and standardization in sustainable investments ESG parameters has to be followed.

 

OBJECTIVES OF THE STUDY:

1.     To comprehend the existing literature pertaining to sustainable investments.

2.     To present comprehensive analysis of ESG practices of JSW Ltd towards achieving sustainability.

 

RESEARCH METHODOLOGY:

The present study is purely descriptive, qualitative and exploratory in nature, data has been collected from secondary sources such as BRSR, financial statements, annual reports, ESG data book reports NSE index, Authentic e-sources.

About JSW Ltd:

JSW group is ranked among leading business house with US $ 24 billion its innovative and sustainable presence in diversified sectors including steel, energy, infrastructure, cement, paints, venture capital and sports is helping the group play an pivotal role in accelerating economic development of India. The Group strives for excellence by leveraging its strengths and capabilities including a successful track-record of executing large capital-intensive and technically complex projects, differentiated product-mix, state-of-the-art manufacturing facilities and greater focus on pursuing sustainable growth.With a culturally diverse workforce spread across India, USA, Europe and Africa, JSW Group directly employs nearly 40,000 people. It also has a strong social development focus aimed at empowering local communities residing around its Plant and Port locations. JSW Group is known to create value for all its stakeholders by combining its growth roadmap, superior execution capabilities and a relentless drive to be Better Everyday. JSW Steel has always been at the forefront of research and innovation. It has a strategic collaboration with global leader JFE Steel of Japan, enabling JSW to access new and state-of-the-art technologies to produce and offer high-value special steel products to its customers.

 

These products are extensively used across industries and applications including construction, infrastructure, automobile, electrical applications, appliances, etc. JSW Steel is widely recognized for its excellence in business and sustainability practices. Some of these recognition include World Steel Association’s Steel Sustainability Champion (consecutively 2019 to 2021), Leadership Rating (A-) in CDP (2020), Deming Prize for TQM for its facilities at Vijayanagar (2018) and Salem (2019). It is part of the Dow Jones Sustainability Index (DJSI) for Emerging Markets (2021) and  SandP Global’s Sustainability Yearbook (consecutively for 2020 and 2021). JSW Steel is the only Indian company to be ranked among the top 15 global steel producers by World Steel Dynamics for 13 consecutive years since 2008. As a responsible corporate citizen, JSW Steel’s carbon reduction goals are aligned to India’s Climate Change commitments under the Paris Accord.

 

JSW Company Profile:

Parameters

 

Head quarters

Mumbai

State

Maharashtra

Entity type

Public

Key people

Sajjan Jindal (Chairman) Sangita Jindal (Chairperson) Parth Jindal (MD)

Products

Steel, Energy, Cement, Sports, Infrastructure, paint

Market capitalization

2.48 trillion INR

Revenue in FY

Rs.51,228.9 crore

No of employees

55,000

 

 

ESG scores of JSW:

Company

Industry

Country

Environment

Social

Governance

Total

JSW Steel

Steel

India

68

88

102

258

JSW Energy

Utilities

India

71

95

97

263

JSW Hydro energy

Utilities

India

59

73

61

193

JSW cement

Cement

India

75

90

90

255

 

Pillars of Sustainability:

Enivornment

Key focus area

Alignment To SDG’s

 

Climate Change

SDG 13: JSW is committed towards climate change risk assessments. Aims to achieve net zero emissions by 2050 besides this implementation of renewable energy solution. Minimization of C02 emissions

 

Energy

SDG 7: Ensure access to affordable reliable, sustainable modern energy sources for all.

 

Resources

SDG 12: Sustainable consumption and production patterns.

 

Water Resources

SDG 6: Water conservation and usage aims to implement water treatment technologies. Zero liquid discharge facilitates reduces freshwater intake, aim at local water protection.

 

Waste

SDG 11 and 12: make human settlement safe, cities inclusive, safe, resilient and sustainable.

 

Waste water

SDG 6, 11 and 12: JSW has come up with an initiative to reduce wastewater discharge from its premises by the installation of a Zero Liquid Discharge (ZLD) facility across all its steel manufacturing locations. ZLD is an advanced water treatment process that purifies and recycles the wastewater, besides helping industries limit wastewater discharge and maintaining a sustainable environment. Key areas where wastewater is reused include slag cooling, slag granulation plant.

 

Air Emission

SDG 13: take urgent actions to combat climate change impact on regulating carbon emissions also promoting developments in renewable energy.

 

Bio diversity

SDG 15: Aims to protect, restore and promote terrestrial eco-systems, land degradation and halt bio diversity loss.

 

Local Consideration

SDG 11: make human settlement safe, cities inclusive, safe, resilient and sustainable

Social Development

Health and People

SDG 15 and 12: Aims to protect, restore and promote terrestrial eco-systems, land degradation and halt bio diversity loss.

 

Indigeneous people

SDG 11: make human settlement safe, cities inclusive, safe, resilient and sustainable

 

Cultural Heritage

SDG 11: make human settlement safe, cities inclusive, safe, resilient and sustainable

 

Social sustainability

SDG 10 and 17:  reduce income inequalities within and among countries, through various entities working towards achieving sustainability focus on revitalising global partnerships engaging with stakeholders. Implementation of initiatives across environment, social and governance.

 

Supply chain Sustainability

SDG 11 and12: Ensure sustainable consumption and production pattern

 

Employee well being

SDG 8, 5 and 10: full productive decent employment work for all, achieving gender equality of women, reduce income in inequalities within and among the countries.

Governance

Human Rights

Business ethics

SDG 16, 5 and 10: Aim to ensure that the Company keeps the stakeholders’ interests at the centre of all operations and business decisions, JSW Steel follows a stringent corporate governance policy. Transparency and openness are the core principles of corporate governance at JSW Steel and it has established a corporate governance structure that works towards achieving sustainable growth in the medium- and long-term.

 

RESULTS AND DISCUSSION:

JSW group has identified the significance of environment, social and governance aiming to be part of sustainable development JSW Steel and its subsidiaries together account for ~23% of India’s steel production. As one of the major players in the industry,  consider it our responsibility to proactively reflect on and manage the challenges arising out of climate change. JSW has integrated climate change scenarios in its risk management system to build resilience and strengthen adaptive capacity to climate-related hazards and natural disasters. To reduce the carbon emissions 1.95 tonnes of C02 for every tonne of steel production currently emission stands at 2.36 per tonne. Biodiversity conservation and JSW ltd is ambitious target to achieve “No Net Loss (NLL)” by 2030.  Considering timeline of  7 more years to achieve the target, besides this jsw group has taken a holistic approach to act swiftly and decisively to make significant, measurable and verifiable results. Always the company is committed to ensure no net deforestation due to our own operations, and our commitment is endorsed by its executive management. JSW group has a human rights policy that addresses human rights issues across the supply chain. It articulates the Company’s stand on human rights, including non-discrimination, prohibition of child and forced labour, freedom of association and the right to engage in collective bargaining. JSW ltd actively supports organizations and initiatives that preserve and promote art, culture, and heritage of India. It is achieved through setting up art precinct, restoring the heritage structures and preserving legacy by establishing museums thereby leading to enhancement of our cultural heritage. The company ensures employees including women receive equal pay for performing similar job roles and responsibilities. Promotes women empowerment through skill development, training programmes.

 

CONCLUSION:

The present study provide a key insight pertaining to sustainable investment of JSW ltd. JSW ltd is more commitment towards sustainability through various initiative. Integration of Environment, social and governance considering those key elements in its business strategy aiming to be part of achieving sustainability. ESG strategies of JSW may help to create long term value in highly competitive business environment. JSW ltd believe sustainability is the core pillar of its business strategy which make the company to think upon on ecological well being, reducing emissions. JSW ltd has designed a framework to carry its business operations which align with UN sustainable development goals. It concentrates on resource optimisation through continous improvement. JSW Ltd strives to influence positively on lives of community, employees and its strategic global partners. JSW ltd exhibits its ethical practices by disclosing ESG information in annual reports. According to KnowESG report JSW has secured rating score 35. JSW steel has secured score of 82/100 by SandP global. Further more, JSW steel manufacturing units are using Zero liquid discharge for reusing and waste water treatment within plant. Aims to curb carbon emissions installation of dry fog system for fugitive emission controls.JSW steel ltd uses conveyors to minimise truck usage, fuel saving to improve safety at work place. JSW group is striving for well being of society where all needs and desires are met through sustainable business practices.

 

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Received on 24.06.2025      Revised on 26.07.2025

Accepted on 25.08.2025      Published on 07.11.2025

Available online from November 17, 2025

Asian Journal of Management. 2025;16(4):289-292.

DOI: 10.52711/2321-5763.2025.00043

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