Cement manufacturing requires limestone as a primary raw material and other raw materials such as alumina, iron ore and gypsum. The materials are mixed together in a kiln to heat them up and form a clinker. In the process, CO2 emissions are generated from the chemical conversion of limestone (known as process emissions ) and fossil fuel combustion. At JSW cement, our business model is based on the circular economy wherein we primarily substitute emission intensive clinker with Slag – a waste or a by-product from the steel industry. Since FY 09, we have prioritized the use of Blast Furnace Slag, thereby replacing clinker and reducing direct CO2 emissions. During FY 26, slag-based products (GGBS, PSC, PPC) constituted ~ 77 % of our portfolio. Besides this, we also use other alternative raw materials and fuels.

For FY26, we were chasing a target of reaching 10.4 Million T of waste-derived resources however, we utilised ~9.8 MT of waste-derived resources, comprising slag, fly ash, artificial gypsum and flue dust. The shortfall in the target is on account of lesser production than the projected one at the time of target setting. Additionally, we also aim to achieve 30% Thermal Substitution Rate (TSR) by 2030.

While some circularity initiatives are implemented at our integrated unit Nandyal and Shiva, others are practiced in other grinding units

  • Clinker Substitution: Since majority of our cement products are slag based, our clinker factor is very low.
  • Increasing share of Alternative Fuels: While the Thermal Substitution Rate (TSR) decreased from 16.5% in FY2024-25 to 13% in FY2025-26 due to operational challenges at a few sites, we continued strengthening our AFR infrastructure and systems to improve our TSR performance and remain committed to achieving our target of 30% TSR by 2030.
  • Innovation: Our commitment to innovation extends to collaborations with academic & research institutions, resulting in advancements such as geopolymer concrete, 3D concrete printing and biodegradable polymers for eco-friendly packaging. We are also exploring alternative raw materials like calcined clay and developing super sulphate cement to further enhance our sustainable practices.
  • Memberships: We are active members of various industry associations particularly working on Circular Economy – FICCI’s Resource Efficiency and Circular Economy Industry Coalition (RECEIC), International Council for Circular Economy (ICCE), and relevant working groups and committees of GCCA, CMA etc. This helps to strengthen our efforts on the circular economy and decarbonisation at the sector level. We are also among the founding members of ‘Build Ahead’, an industry-first coalition with Xynteo.
  • Attributes of Building Materials: At JSW Cement, we are committed to sustainable construction through our range of blended cement and cementitious products, which deliver significant environmental advantages such as reduced carbon dioxide emissions, conservation of natural resources and fuel, and the beneficial use of industrial by-products. By sourcing raw materials such as limestone locally and expanding the use of alternative fuels, renewable energy, and alternative raw materials, we aim to become a leader in eco-friendly cement production. While blended cement contributes to lowering environmental impact, certain risks may persist — such as those associated with raw material extraction, transportation, and cement manufacturing. We disclose our key health and environmental impacts in our Environmental Product Declarations (EPDs) and Material Safety Data Sheets (MSDSs) and take measures to reduce the impacts. By incorporating materials such as slag, we reduce the clinker factor in our cement, significantly lowering the carbon intensity.
  • Revenues from Sustainable Construction Materials: At JSW Cement, our product portfolio comprises cement, blended cement, and other cementitious materials. We have a sustainable products programme focused on the development and manufacture of low-carbon construction materials.Our sustainable/green product portfolio includes Ground Granulated Blast Furnace Slag (GGBS), Duraflor, Portland Slag Cement (PSC), Concreel HD, POWER PRO, Compcem, Krysta Leakproof, Enduro Plast, and Slag Sand. These products are listed in the Green Product Catalogue of GRIHA (Green Rating for Integrated Habitat Assessment). Several of these products are independently verified through certifications such as GreenPro, Environmental Product Declarations (EPDs), and GRIHA certifications. Out of the total products sold in the reporting year 77% were sustainable (low carbon products).As disclosed in our Environmental Product Declarations, our net specific greenhouse gas (GHG) emission intensity stands at 0.360 tCO₂e per tonne of cement for PSC and 0.108 tCO₂e per tonne of cement for GGBS.

    To strengthen our sustainable products portfolio, we continue to invest in research and development focused on low-carbon technologies, including geopolymer cement, LC3 cement, clinker substitution, alternative raw materials, and Carbon Capture, Utilisation and Storage (CCUS) solutions. We also collaborate with leading academic and research institutions to accelerate the development and commercialisation of next-generation sustainable construction materials.

    In addition, we undertake capital and operational investments to support sustainable manufacturing and product innovation. These include investments in renewable energy, waste heat recovery systems, alternative fuel utilisation, resource-efficiency initiatives, and capacity expansion projects. Our planned increase in manufacturing capacity to 35.25 MTPA by 2028 and 46 MTPA in the next few years further enhances our ability to produce and market low-carbon cementitious products. We have a target to maintain over 75% of our product portfolio as low-carbon cementitious products.

    Our employees engaged in product development, innovation, manufacturing, and sales receive regular training on sustainable products, low-carbon technologies, innovation, and environmental performance. Sustainability and green product-related Key Result Areas (KRAs) are integrated into the performance management framework of relevant functions, including product development and sales teams, to support the growth, adoption, and commercialization of sustainable construction materials.