Executive Summary

The cement industry accounts for more than 7% of the global carbon emissions.
Simultaneously Governments across the globe are mulling stricter environmental
regulations to tackle climate change exposing cement companies to rising risks in
today’s volatile global economy. Therefore, it is becoming pertinent for cement
manufacturers to decarbonize their operations, thereby de-risking their business.

This report presents a decarbonization strategy for UltraTech Cement, the market leader in
the Indian cement industry, following a S.M.A.R.T (Specific, Measurable, Attainable,
Realistic, and Time-bound) approach. The strategy focuses on setting decarbonization targets
without affecting the current growth plans. It ensures accountability and transparency at each
milestone, assuring the regulators and investors of UltraTech’s commitment to net-zero by
2050.

The Road Ahead

Taking 2021 as the base year, we recommend the following three staged roadmap to reduce
Scope 1 & 2 emissions by UltraTech Cement:

Phase 1: In the first phase, we aim to reduce the emissions by 25 percent before 2030. We
plan to achieve this by accelerating clinker substitution, incorporating digitalization and AI
across all business operations, increasing the share of biomass in the fuel mixture, and
sourcing all electricity from renewable sources.

Phase 2: In the second phase, we aim to reduce emissions by 55 percent before 2040. We
plan to achieve this by incorporating process improvements and substituting the current fossil
fuel-based furnaces with electric furnaces that run on renewable energy or using green
hydrogen as an alternative fuel source.

Phase 3: In the third and final phase, we plan to achieve the ambitious target of becoming
carbon neutral before 2050 by incorporating Carbon Capture and Storage (CCS) technology,
which along with the other decarbonization exercises undertaken in phases 1 and 2, is
expected to reduce emissions by 85 percent. A comprehensive reforestation program to plant
10 million trees will offset the remaining emissions.