Approach to Climate-related Disclosures
Reliance acknowledges that climate-related disclosures are more than just corporate responsibilities. The Company’s climate related disclosure emphasises Governance, Strategy and Risk Management in line with the Task Force on Climate-Related Financial Disclosures (TCFD) guidelines. These guidelines are now integrated into the broader IFRS S2 Climate-related Disclosures under the ISSB Standards.
Governance
Reliance is enhancing its approach to embedding climate change considerations into both strategic and operational decision-making. The Board plays a key role in overseeing, reviewing and guiding the Company’s energy transition strategy through ongoing engagement with management and external experts.
The Board is supported by the ESG Committee, which helps identify and assess emerging climate risks and opportunities, evaluates their potential impacts on the business and stakeholders, and proposes mitigation strategies or opportunities for growth. Additionally, the Board supervises overall risk management and internal controls through dedicated committees.
Details on the Terms of Reference of the ESG Committee can be accessed on the Company’s website: www.ril.com/about/board-committees
The ESG Committee convenes quarterly to review the Company’s sustainability initiatives, progress made, advancements towards goals and targets, and upcoming plans. A comprehensive overview of the Committee proceedings is reported back to the Board.
As the shift towards low-carbon energy accelerates, relevant expertise is crucial to tackling associated complexities. The Board brings knowledge in areas such as operations, risk management, strategic planning and regulatory frameworks to address climate challenges.
Additional details on Board expertise are available in Reliance’s Corporate Governance Report on PG 46
When necessary, knowledge sessions are conducted to enhance Board members’ understanding of regulatory updates, best practices and implications for the Company.
Guided by a capable Board, Reliance’s management plays a central role in evaluating and managing climaterelated risks and opportunities while monitoring climate progress. Dedicated teams reporting to the Executive Committee focus on decarbonisation, New Energy initiatives and related plans. The Executive Committee ensures strategic alignment with the Net Carbon Zero objective and keeps the Board informed about climate-related metrics, risks, energy transition opportunities, partnerships and disclosures.
Risk Management
Reliance has a structured framework in place for identifying, assessing and managing climate-related business risks, in accordance with TCFD recommendations. This includes physical risks (both acute and chronic) as well as transition risks such as policy changes, regulatory shifts, market fluctuations, technological advancements and reputational concerns. Reliance integrates these risks within its Enterprise Risk Management (ERM) framework, allowing for effective risk identification, resource allocation and evaluation of response strategies.
Board committees regularly review risk mitigation strategies and governance mechanisms, ensuring operational stability, reducing disruptions, leveraging new opportunities and consistently delivering stakeholder value.
More details about Reliance’s Risk Governance Framework can be found on PG 25
Strategy
Reliance has formulated a comprehensive climate change and energy transition strategy, addressing the challenges and opportunities in this evolving landscape. This strategy is based on an in-depth analysis of material climate-related risks and opportunities, factoring in shifting regulations and stakeholder expectations.
More information on the Company’s Net Carbon Zero strategy is available on PG 32 of the report.
Just Transition: Reliance understands that a ‘just transition’ is essential to navigate the challenges posed by the shift towards cleaner energy sources in line with the broader goals of environmental sustainability, social equity and economic resilience. The Company collaborates with leading academic institutions in India to conduct research and development for low-carbon solutions. Emphasising the ‘Make in India’ approach, Reliance is committed to advancing its vision of positioning India as a world leader in energy transition by investing in the promotion of domestically developed products and technologies and empowering its talent resource pool to actively embrace the technologies of the future.
Metrics and Targets
Reliance assesses and oversees its initiatives concerning climate-related risks, opportunities and strategies by continuously monitoring key metrics and assessing performance against established targets. These metrics play a pivotal role in enabling well-informed decision-making and offer insights into the Company’s advancements towards achieving its objective of becoming Net Carbon Zero by 2035.
Renewable energy consumption, overall energy consumption, energy savings due to conservation efforts and GHG emissions are the key metrics that the Company monitors for measuring progress against its Net Carbon Zero commitment.
For details on the performance of Reliance’s assured climate-related parameters, refer to Natural Capital on PG 34 of this Report.
In line with its commitment to invest ` 75,000 Crore in clean energy to become a Net Carbon Zero Company by 2035, Reliance has outlined targets for enhancing solar capacity for meeting its captive requirements. Reliance is establishing giga factories to transition into New Energy and New Materials business. By establishing and enabling 100 GW of renewable energy by 2030, Reliance will work towards meeting India’s Nationally Determined Contributions (NDCs).
For more details on targets along with the progress made in the current fiscal, refer to PG 32.
Note: BRSR 2024-25 can be accessed here: https://www.ril.com/reports/BRSR202425.pdf
