Birla Cellulose aims Net Zero Carbon Emissions across its operations

31 Jan 2022 , 01:05 PM

In its press release on Monday, Birla Cellulose, the pulp and fibre business of Grasim Industries Ltd. a flagship company of the Aditya Birla Group, announced its goal to bring down its net carbon emissions to zero across all its operations by 2040, with a possibility to reach it earlier by 2035. This is the most ambitious target set by any company in the Man-made cellulosic fibre (MMCF) industry globally.

Birla Cellulose’s net-zero announcement aligns with the United Nations Sustainable Development Goals (SDGs) 7 & 13 on climate change and affordable and clean energy.

The company also targets to reduce its greenhouse gas (GHG) emissions intensity to half by 2030 from the baseline of 2019. Birla Cellulose’s commitment to carbon neutrality and GHG reductions includes scope 1, scope 2, scope 3 emissions, and the carbon sequestration in managed forests and are derived using science-based methods.

“This is a natural progression in Birla Cellulose’s global leadership in the area of sustainability. Birla Cellulose’s climate target is at the core of its business strategy that aims to address climate change-related risks and adapt to changing consumer preferences for more sustainable, nature-based, and low emission products,” stated Mr. H K Agarwal, Managing Director Grasim Industries Ltd and Business Director, Birla Cellulose.

Currently, around 40% of the energy for the global operations of Birla Cellulose comes from renewable sources. In addition to this, in an assessment carried by E&Y in 2019, the carbon sequestered in its directly managed forests exceeded the entire scope 1 and scope 2 emissions from global sites during the year.

The roadmap would include increased use of renewable energy in its processes, investment in innovative low emission technologies, net positive carbon sequestration in its managed forests, and a sharp focus on circular fashion.

Birla Cellulose leads the industry in sustainability practices such as sustainable forestry (ranked #1 in Canopy Hot Button Ranking 2021) and has set the industry benchmark for the lowest water intensity for viscose and lyocell production. It has recently commissioned the first Zero Liquid Discharge (ZLD) plant in the MMCF industry globally and has the largest social responsibility program in the industry.

Grasim Industries is currently trading at Rs1,721.05 up by Rs23.45 or 1.38% from its previous closing of Rs1,697.60 on the BSE. The scrip opened at Rs1,693.95 and has touched an intraday high and low of Rs1,731 and Rs1,693.95 respectively.