Building Strength
for a Greener
Tomorrow

Ambuja Cements becomes the leading cement company in India to have its Near-Term (2030) as well as Net-Zero (2050) targets validated by the Science Based Targets initiative (SBTi) under the Cement Sectoral Decarbonisation Approach (SDA). These targets comprehensively cover Scope 1, Scope 2 and Scope 3 emissions. Ambuja Cements’ validated targets can be viewed on the https://sciencebasedtargets. org/target-dashboard

Ambuja Cements recognises a range of climate-related risks-physical as well as transition, including evolving regulations, technology and market risks, and physical risks such as extreme weather events, that can disrupt production and supply chains. To strengthen business continuity and long-term resilience, the Company has undertaken a comprehensive Climate Change Risk Assessment across short-, medium- and long-term horizons and has embedded climate risks within its Enterprise Risk Management (ERM) framework. While these risks are material, there are also opportunities to drive innovation, deepen sustainability leadership and strengthen competitive advantage.

This assessment provided actionable insights into potential impacts under different warming pathways, enabling the Company to design and implement targeted mitigation and resilience measures.

Ambuja Cements has implemented an Internal Carbon Pricing (ICP) framework to integrate carbon accountability into decision-making. With an internal carbon price of $ 28 per tonne of CO₂, the Company evaluates financial implications of emissions across operations and uses the insights to steer investments towards low-carbon alternatives and decarbonisation goals, emissions reduction progress and warming above 2°C.

Given the energy-intensive nature of cement manufacturing, Ambuja Cements closely monitors energy performance across all sites, with key insights reviewed in monthly management meetings. The Company is focused on reducing both thermal and electrical energy consumption through process improvements, cost optimisation initiatives, increased integration of renewable energy such as solar and wind, and efficient utilisation of waste heat. Through sustained innovation and targeted investments, Ambuja Cements remains on track to achieve its 2030 energy targets while strengthening cost competitiveness and lowering environmental impact.

The cement industry is one of the largest industrial contributors to global greenhouse gas (GHG) emissions, accounting for approximately 7–8% of global CO₂ emissions. This is primarily due to the energy-intensive nature of cement production and the chemical process of calcination involved in clinker manufacturing.

Ambuja Cements is making substantial investments in renewable energy to lower its carbon emissions and reduce dependence on traditional fossil fuel-based electricity. The company plans to increase its proportion of green power to 60% by 2028, Its renewable and green energy strategy includes installing 1 GW of solar and wind power, along with 376 MW of Waste Heat Recovery Systems (WHRS) by fiscal year 2028. This approach reinforces Ambuja’s dedication to environmental sustainability and climate action, supports the reduction of greenhouse gases, and promotes the adoption of clean energy solutions. The percentage of renewable and green power in the company’s total energy consumption continues to rise each year.

Ambuja Cements is consistently working to reduce both thermal and electrical energy consumption per tonne of product. Several of its facilities are engaged in India’s Perform, Achieve and Trade (PAT) scheme, which has led to a continuous decline in specific thermal energy consumption over time. Under the PAT programme, industries identified as high-energy consumers are required to submit annual energy consumption reports and undergo mandatory energy audits. The scheme establishes energy consumption benchmarks, verifies savings through Energy Saving Certificates (Ecerts), and enables the trading of these certificates. This initiative has effectively reduced energy usage and carbon emissions, thereby supporting the advancement of more sustainable operations.

A series of targeted interventions have been implemented across multiple plants to improve both thermal and electrical energy efficiency.

The cement industry is characterised by high energy consumption, with emissions from fossil fuels constituting a significant source of carbon output in this sector. Ambuja Cements addresses this challenge through the adoption of advanced co-processing technologies. The Company’s facilities, located throughout India, are equipped with dedicated storage areas, feeding systems, and laboratories to ensure efficient operations. Pre-processing units play a vital role in transforming diverse waste streams—originating from agricultural, municipal, and industrial sources—into a homogenised mixture. This process facilitates the effective feeding of alternative fuels into kilns, thereby reducing dependency on conventional fossil fuels.

Initiatives through Geoclean to co-process wastes are closely aligned with the Company’s broader sustainability strategy and carbon reduction goals. By integrating alternative fuels into the Company’s fuel mix, it not only prevents wastes from ending up in landfills and causing environmental harm, but also advances circular economy principles, reduce carbon footprint and enhance fuel flexibility.

Ambuja Cements proactively adopting cutting-edge technologies to accelerate its decarbonisation journey and enhance operational intelligence throughout its manufacturing processes:

• Energy-Efficient Manufacturing Solutions: It is implementing state-of-the-art energy optimisation technologies in both new projects and existing plant upgrades, driving greater efficiency and reducing energy consumption.
• AI-Powered Process Optimisation: By piloting advanced machine learning algorithms, it can refine process parameters, lower energy usage, and ensure consistent product quality.
• Smart Sensors and Real-time Monitoring: The deployment of intelligent sensor networks enables it to accurately monitor emissions and respond swiftly to maintain regulatory compliance and optimise operational performance.
• Digital Tools for Operational Excellence: Leveraging sophisticated digital platforms, it streamlines workflows and foster a culture of continuous improvement across its facilities.
• Computational Fluid Dynamics (CFD) and In-house Process Innovation: Utilising CFD simulations and targeted internal enhancements, it has increased its Productivity Rate Index (PRI), achieved more efficient thermal profiles and decreased energy consumption.

These technological advancements empower predictive maintenance, drive process stability and deliver ongoing efficiency improvements across its production lines— underscoring its commitment to sustainable, intelligent manufacturing.

Ambuja Cements remains steadfast in its commitment to reducing freshwater intensity across its manufacturing operations. The Company has made consistent progress towards lowering water use per tonne of cement produced and has achieved its target of a 10% reduction in gross water intensity by 2030. This reflects a deep-rooted focus on efficiency, conservation, and responsible resource management.

As a cement manufacturer, the Company has a direct and material dependence on natural capital, particularly through raw material extraction and water use, while also relying indirectly on ecosystem services that regulate climate, water cycles and protection from natural hazards. Recognising that mining and land-use changes can affect biodiversity and ecosystem resilience, the Company undertook a comprehensive Nature Risk Assessment, including a Biodiversity Risk Assessment, for all its sites except for Penna and Sanghi sites which recently got merged with Ambuja, and 10 km distance around the site, to better understand these dependencies and impacts.

The assessment was conducted using the Taskforce on Naturerelated Financial Disclosures (TNFD) LEAP approach, a globally recognised framework that enabled the Company to map interactions with nature, evaluate dependencies and impacts, and identify nature-related risks and opportunities. These risks span physical, transition and systemic categories, ranging from extreme weather and ecosystem degradation to regulatory shifts and large-scale ecological change.

Adani Cement, comprising Ambuja Cements and its subsidiaries and part of the diversified Adani portfolio, has become the first company in the Indian cement industry to adopt the Taskforce on Nature-related Financial Disclosures (TNFD) recommendations.

As the world’s ninth-largest building materials solutions provider, Adani Cement now joins a select group of global leaders championing naturepositive business transformation.

Through this commitment, the Company will systematically identify, assess, manage and disclose nature-related risks and opportunities, strengthening its leadership in sustainable manufacturing. This milestone builds on recent decarbonisation advances, including the world’s first commercial deployment of Coolbrook’s RotoDynamic Heater™ technology, reinforcing the Company’s journey towards nature-positive growth and climate leadership.

In response to identified risks, Ambuja Cements developed a comprehensive Biodiversity Action Plan (BAP) aligned with the International Union for Conservation of Nature (IUCN) Mitigation Hierarchy and built around naturebased solutions.

The BAP includes site-specific actions such as greenbelt development, wildlife monitoring, rainwater harvesting structures, and mangrove restoration initiatives, reinforcing the Company’s commitment to managing biodiversity risks while strengthening long-term ecological sustainability.

Ambuja Cements ensures strict compliance with Indian environmental laws and regulations, including the Forest Conservation Act and the Compensatory Afforestation Fund Management and Planning Authority (CAMPA) Act, reinforcing its commitment to the principle of No Net Deforestation. In line with the Forest Conservation Act, 1980 and the Compensatory Fund Act, 2016, the Company undertakes afforestation to offset any forest land utilised for operational requirements.

A comprehensive Mine Closure Plan is implemented across all mining locations, integrating compensatory afforestation and site rehabilitation measures at the time of closure. Ambuja Cements also follows the Green Belt Development guidelines prescribed by the Government of India, further strengthening ecological safeguards around its operations.

To prevent environmental degradation and support biodiversity enhancement, the Company has adopted multiple initiatives, including active collaboration with local communities to manage afforested and rehabilitated areas, along with joint oversight of adjoining offset zones. As part of the Adani portfolio, Ambuja Cements has committed to planting 8.3 million trees by 2030, with 7.2 million trees already planted. The Company is also implementing habitat management plans to restore degraded ecosystems across operational sites. Overburden and waste materials are disposed of systematically in designated non-mineralised zones as per approved Mine Plans, supported by progressive mine closure strategies aligned with statutory requirements. In sensitive locations near protected areas, mining and raw material movement are restricted to daylight hours to minimise ecological disturbance. To prevent spillage during transportation, mine tippers are equipped with advanced multicap covering systems. Continuous training and awareness programmes for employees and communities further strengthen responsible practices and help reduce biodiversity-related impacts across stakeholders.

Ambuja Cements acknowledges the critical importance of regulatory compliance in maintaining responsible and sustainable business practices. The Company adheres to a wide array of environmental regulations across its diverse operations. It ensures that all required permissions and approvals are obtained to meet these regulatory obligations. To track and manage compliance efficiently, Ambuja Cements uses Legatrix software. Some of the key environmental regulations applicable to its operations include:

• Environmental Clearances and EIA Notification, 2006
• The Water (Prevention and Control of Pollution) Act, 1974
• The Air (Prevention and Control of Pollution) Act, 1981
• Noise Pollution (Regulation and Control) Rules, 2000
• The Environment (Protection) Act, 1986
• Hazardous and Other Wastes (Management & Transboundary Movement) Rules, 2016
• Solid Waste Management Rules, 2016
• Bio Medical Waste Rules, 2016
• Plastic Waste Management Rules, 2016
• E-Waste Rules, 2016
• The Construction and Demolition Waste Management Rules, 2016

Ambuja Cements’ commitment goes beyond mere regulatory compliance. The Company strives to set a benchmark within the industry, not only adhering to environmental regulations but also excelling in sustainability practices and promoting best-in-class environmental stewardship.