APL Apollo Tubes Ltd accelerates its ESG transformation journey

Highlights:

- APL Apollo Tubes Limited (APL Apollo) has committed to reduce Scope 1 and 2 emissions per metric ton of production volume 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 as per guidelines set by the Science-based targets initiative (SBTi), aligned with a 1.5°C world

- In FY22, 38% of APL Apollo's total energy consumption was from renewable energy sources. At two of APL Apollo's plants, over 85% of energy needs were met through renewable energy

- APL Apollo plans to assess climate-related risks and opportunities in line with the recommendations given by the Taskforce for Climate-related Financial Disclosures (TCFD)

- APL Apollo has introduced environmentally friendly products, such as Chaukhat (Steel door frames) and Tubular Steel products for heavy construction 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°C world.

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."

Shares of APL Apollo Tubes Limited was last trading in BSE at Rs. 1118.60 as compared to the previous close of Rs. 1118.55. The total number of shares traded during the day was 207700 in over 838 trades.

The stock hit an intraday high of Rs. 1135.55 and intraday low of 1109.80. The net turnover during the day was Rs. 232785566.00.

Source : Equity Bulls

Keywords

APLApolloTubes INE702C01027 Emissions ESG TransformationJourney