Reliance recognises the importance of climate-related disclosures to inform and align stakeholders on its climate change agenda. In line with the recommendations of the Task Force on Climate Related Financial Disclosures (TCFD), the Company transparently reports on climate-related risks and the progress on its energy transition strategy to realise its goal of Net Carbon Zero by 2035 under the able oversight of its Board and its Committees and senior leadership.
Strong governance related to climate issues underlines Reliance’s efforts to address climate change. The Company’s Board brings unparalleled depth and breadth of experience and expertise across leadership, operations, strategic planning, domains, research and development, global business, financial, regulatory/legal, risk management and corporate governance and provides oversight of Reliance’s climate-related risks. The Board also oversees, reviews and guides the Company’s energy transition strategy and activities to address climate change through regular engagement and structured discussions.
A dedicated ESG committee at the Board level has been constituted in FY 2022-23 to strengthen climate-related and energy transition oversight. This Committee will play a key role in reviewing and identifying material ESG issues, including climate risks and opportunities. It will also monitor Reliance’s performance on realising its goals of reducing Net Carbon Footprint, addressing climate change, fostering a circular economy, facilitating energy transition and nurturing inclusive growth.
FOR DETAILS ON THE TERMS OF REFERENCE OF THE ESG COMMITTEE, PLEASE REFER TO READ MORE OF THIS REPORT OR VISIT THE COMPANY’S WEBSITE: https://www.ril.com/OurCompany/Leadership/BoardCommittees.aspx
Under the leadership of a competent Board, the Company’s management plays a crucial role in assessing and managing climate-related risks and opportunities and monitoring the progress on climate change ambitions. Concerns related to decarbonisation, the New Energy business and associated plans are addressed by dedicated teams reporting to the Executive Committee, which provides oversight of strategic decisions and related portfolio of initiatives in line with the Company’s Net Carbon Zero goals. The management regularly updates the Board on climate-related metrics, associated current and potential risks, energy transition opportunities, results of related initiatives, partnerships and disclosure practices.
New Energy Council
The Reliance New Energy Council (NEC) comprises some of the finest minds in the field of renewable energy and storage globally. NEC members are global advocates and thought leaders of the New Energy business. These members will help the Company validate strategies and embrace disruptive pathways to achieve its goals. Please refer to read more for the profiles of the Council members.
NEC Meeting 2022
During the NEC meetings held in October 2022, members discussed and deliberated on Reliance’s platform strategies and roadmaps. Through these discussions, the NEC members provided valuable views drawing on their respective field(s) of expertise to validate the Company’s strategies for the New Energy business. The members assessed risks and mitigation strategies across platforms and manufacturing. Furthermore, in order to expand the New Energy business in an effective and efficient manner, the NEC members also suggested several emerging tools, technologies, and solutions in the renewable energy domain that could accelerate Reliance’s progress on its New Energy business.
Sustainability topics discussed by the Board and its committees in FY 2022-23
ESG risks and opportunities
Formation of an ESG committee
Energy transition initiatives aligned with New Energy and New Materials business
Reliance is cognizant of the risks and opportunities posed by the climate crisis and energy transition and the impact of the same on its business, strategy and financial planning in the short, medium and long term. The Company follows a well-defined system of identification, assessment and management of climate-related business risks in line with TCFD’s recommendations on physical risks (acute and chronic) and transition risks (policy and regulatory, market, technology and reputational issues) as part of its group-wide Enterprise Risk Management (ERM) framework. This structured approach enables the Company to identify risks and their potential exposure, manage it through resource allocation and assess the effectiveness of the response. For details, please refer to read more in the Risk and Governance Section.
The Board oversees the management of the Company’s overall risk management and internal control mechanisms through various Committees, who regularly review the ongoing effectiveness of strategic, operational and financial risk mitigations and governance practices. This ensures that the Company can continue to operate without disruptions, minimising losses, capitalising on opportunities, and delivering sustained value to stakeholders.
DETAILS ON RELIANCE’S RISK GOVERNANCE FRAMEWORK CAN BE ACCESSED ON READ MORE.
Reliance understands the importance of integrating climate-related considerations in business planning and strategic decision-making processes. To this end, the Company has undertaken a comprehensive analysis of material risks and opportunities across business segments and developed a robust climate change and energy transition strategy. The Company recognises that limiting the rise in global temperatures to 1.5°C above pre-industrial levels is not optional anymore, but rather an imperative. Reliance has been taking actions to decarbonise its operations to contribute to the global agenda. The Company announced an ambitious target of achieving Net Carbon Zero goal by 2035.
Reliance’s Net carbon Zero strategy focuses on:
As the momentum builds on the New Energy business as the latest growth engine, the Company understands that the social dimension of its transition plan is as crucial as its environmental challenges. Reliance is cognizant of the opportunities and challenges of energy transition for both external and internal stakeholders. For communities and customers, Reliance is committed to make this transition affordable for all and one that is ‘Made in India’. A crucial driver for the transition to succeed will be the enablement of Reliance’s talent pool which is the Company’s biggest asset. The Company is upskilling its employees with new-age technologies and domain knowledge to ensure their future readiness.
Metrics and Targets
Reliance continues to measure and monitor its actions on climate-related risks, opportunities and strategies by tracking key metrics and performance against targets taken. These metrics facilitate informed decision-making and provide transparent insights into the Company’s progress toward its goal of becoming Net Carbon Zero by 2035.
The key metrics monitored include overall energy consumption, renewable energy consumption, energy savings due to conservation efforts, GHG emissions, and water use. Reliance has committed to invest `75,000 crore in clean energy over three years in a drive to become a Net Carbon Zero company. The Company will establish 20 GW of solar energy generation capacity by 2025 for captive needs of round-the-clock (RTC) power and intermittent energy for Green Hydrogen. Once proven at scale, Reliance is prepared to double the investment to scale up the manufacturing ecosystem.
The Company will also enable at least 100 GW of the 500 GW of solar energy targeted by India by 2030 as part of its Nationally Determined Contributions (NDCs). Reliance plans to begin production at its 10 GW solar PV and module factory, based on REC technology in Jamnagar by 2024, with plans to scale up to 20 GW by 2026.
FOR DETAILS ON DISCLOSURES, PLEASE REFER TO THE SECTION ON NATURAL CAPITAL ON READ MORE. OF THIS REPORT, WHICH PROVIDES MORE INFORMATION ON THE PERFORMANCE OF RELIANCE’S ASSURED CLIMATE-RELATED PARAMETERS.
TCFD core elements and recommended disclosures
Disclose the organisation’s governance around climate-related risks and opportunities.
Describe the Board’s oversight of climate-related risks and opportunities.
→ BOARD OVERSIGHT ON ESG, READ MORE
Describe management’s role in assessing and managing climate-related risks and opportunities.
→ GOVERNANCE, READ MORE
Disclose the actual and potential impacts of climate-related risks and opportunities on the organisation’s businesses, strategy, and financial planning where such information is material.
Describe the climate-related risks and opportunities the organisation has identified over the short, medium, and long term.
Describe the impact of climaterelated risks and opportunities on the organisation’s businesses, strategy, and financial planning.
→ RISK MANAGEMENT, READ MORE
Describe the resilience of the organisation’s strategy, taking into consideration different climaterelated scenarios, including a 2°C or lower scenario.
→ STRATEGY, READ MORE
Disclose how the organisation identifies, assesses, and manages climate-related risks.
Describe the organisation’s processes for identifying and assessing climate-related risks.
→ ENTERPRISE RISK MANAGEMENT (ERM) AT RELIANCE, READ MORE
Describe the organisation’s processes for managing climaterelated risks.
→ RISK MANAGEMENT, READ MORE
Metrics and Targets
Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material.
Disclose the metrics used by the organisation to assess climaterelated risks and opportunities in line with its strategy and risk management process.
→ METRICS AND TARGETS, READ MORE
Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks.
→ NATURAL CAPITAL, READ MORE
Describe the targets used by the organisation to manage climate related risks and opportunities and performance.
→ ACCELERATING PROGRESS TOWARDS A NET CARBON ZERO FUTURE, READ MORE