Business Wire IndiaVijay Singla of JTL Infra announced adoption ESG (Environmental, Social, and Governance) within his company, along with voicing concern about increasing focus on the environmental challenges plaguing various countries and communities in the world. He says “from eating habits to spending patterns to social attitudes to challenging regressive customs- there is a rising awareness of how minor changes may make a big difference in society. In the same way, adopting ESG will set slow but definite new carbon expectations for steel industry.”
The recent forward-looking Union Budget, as well as the fact that energy transition and climate action are both critical to the economy's long-term viability, are two of the government's development pillars. "The budget continues to give encouragement for growth, particularly in the Steel and mining industry," Vijay Singla, JTL Infra says.
According to Saurabh Bhatnagar, Partner, Ernst & Young LLP, EY India National Mining & Metals Consulting Leader “Companies with stronger ESG performance can acquire project finance at a reduced cost, improve resource management, minimize operational risk, and strengthen resiliency against future changes,” says the report.
When determining the profitability of capital investments, several steelmakers consider the impact of carbon emissions. Adopting shadow internal carbon pricing can aid in the identification of sustainability inefficiencies as well as the economic implications of a low-carbon economy.
Vijay Singla strongly feels that JTL Infra must focus on finding solutions, including a collaborative approach, to the difficulties that continue to afflict it. "The steel sector is on the verge of a much-anticipated transformation, with all eyes on ESG," he adds. The actions taken from here on should support that shift. This would include leveraging the power of modern technologies, a necessity highlighted by the epidemic, as well as an emphasis on decarbonization, digitalization, and decentralization. "Today's cutting-edge technology has the capacity to fulfill energy demand while also pushing sustainability," Singla stated.
Vijay Singla of JTL Infra is looking forward to embracing the ESG practice within the company and has a few suggestions on how to make it happen. The most important of these is to create an environment with built-in structural incentives that not only encourage but also enable the sector to get comfortable with new technologies. He believes “government green stimulus packages and the global green infrastructure investment push will have a double-edged effect on the metals and mining sector like JTL Infra that helps the company to grow in adversity.”
Vijay Singla has a strong intuition that digital solutions may assist in boosting productivity, reducing energy usage, reducing waste, and managing pollutants.
“Blockchain has the potential to validate the steel value chain's sustainability quotient, providing end users with verifiable data to analyze their net carbon footprint. Cloud computing may also aid in the creation of more flexible supply networks, while central command and control centers can monitor geographically scattered mine-to-metal value chains,” he added.
Decisions about sustainability efforts cannot be made solely on the basis of financial expenses to the company. Vijay Singla has figured out a solution, he says, “We must act in the best interests of all stakeholders and be willing to make a fair trade-off between industry, end users, and the environment. Stakeholder alignment will be important to accelerating the speed of change and enabling the collaboration required to co-develop realistic solutions to complicated issues.”
Finally, Vijay Singla (JTL Infra) underlined the need for a reliable supply system. He believes that "in the long term, it will establish a win-win paradigm that benefits customers, distribution companies, and franchisees."
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