The energy sector is not insulated from climate change impacts and particularly vulnerable to risks due to its dependency on fossil fuels, energy-intensive production processes, and large carbon footprints. However, the sector becomes a solution to climate change mitigation and provides with an opportunity for transition to production of non-fossil-based energy, i.e., energy from renewable sources, nuclear energy, hydrogen based energy, etc. As the world is transitioning towards net-zero, energy companies have a critical role to play in this transition by giving the world access to sufficient amount of renewable energy or non-fossil energy.
With renewables becoming a significant part of JSW Energy’s power generation mix of the future, we are on the forefront to cater to growing demand for the cleaner fuel mix leading towards a better tomorrow. Apart from Solar, Wind & Hydro, we are assessing emerging technologies across green hydrogen and its derivatives, offshore wind, and storage solutions, including battery, and pumped hydro storage. We have set our targets to reduce our emissions and contribute in mitigating climate change. We made a commitment to endorse and uphold the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). By aligning with these recommendations in its four pillars, we aim to enhance our understanding of the potential impact of climate change and make well-informed decisions regarding current and future decarbonisation strategies.
JSWEL provides incentives for the management of climate change issues, including the attainment of targets.
JSW Energy’s board of directors demonstrates strong leadership in overseeing climate-related matters, ensuring that they are fully integrated into the company’s overall business strategy. At the Board level, the Sustainability Committee and the Risk Management Committee review climate-related matters during biannual meetings and report to the Board of Directors. At the management level, the Executive Committee and corporate function teams oversee climate-related matters. We have a dedicated climate change policy with focus on preventing causes, mitigating impacts, and building resilience to climate change.
Our sustainability efforts prioritise non-fossil-based energy and sustainable development, along with transparency in operations and investments. Recognising the significance of climate risks in our business strategy and decision-making, we conducted a climate change risk assessment. Scenario analysis as per RCP 4.5 and RCP 8.5 that played an important role in assessing climate-related risks and opportunities. Where, RCP 4.5 represents a pathway where greenhouse gas emissions are moderately stabilized by the end of the 21st century through significant mitigation efforts. On the other hand, RCP 8.5 depicts a high-emission pathway without adequate climate policies, resulting in substantial increase in greenhouse gas concentration.
By utilising scenario analysis, we gained insights into potential climate-related risks and opportunities. This assessment guides our climate strategy and business planning for the future. It has helped us embed sustainability at the heart of our business strategy.
JSW Energy has conducted a climate scenario analysis using two Shared Socioeconomic Pathway (SSP) models to assess potential climate-related risks across short-, medium-, and long-term horizons:
| Time Horizon | Risk Likelihood | Description |
|---|---|---|
| 2024–2027 (Short-term) | Moderate | Manageable impacts with potential operational challenges |
| 2027–2037 (Medium-term) | High | Increased exposure to floods, water stress, and infrastructure vulnerability |
| 2037–2052 (Long-term) | Low (SSP2-4.5) / High (SSP5-8.5) | Varies by scenario; long-term risks may be mitigated under SSP2-4.5 |
JSW Energy has identified several location-specific physical risks requiring proactive mitigation:
| Physical Risks | JSW Asset | Mitigation Strategy |
|---|---|---|
| Landslides – High Risk (Short, medium & Long term) |
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| Glacial Lake Outburst Floods (GLOF) – medium to High risk (Medium & Long term) |
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| High Sediment Flow – medium to High Risk (Long term) |
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| Opportunity | Opportunity Type | Opportunity Description |
|---|---|---|
| Shift in consumer preferences | Energy source | JSW Energy intends to increase its renewable portfolio up to 10GW capacity by FY 2025. This target has been overachieved. Further, we intend to have total 30 GW capacity with 70% renewable capacity by FY 2030. |
| Lower costs of Solar Power generation products | Products and Service | In the last 8-9 years the cost of solar panels has reduced by 75%-80% and the technology has improved by leaps & bounds. The combined effect has brought the cost per unit down and very comparable or even lesser than the conventional thermal power costs. These reduced costs serve as an opportunity for JSW Energy to foray into the renewable space at a quick pace. |
| Use of new technologies | Energy Source |
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| Raising investments through green bonds | Market |
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| Access to new assets (increased diversification of assets) | Market |
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| Recycling | Resource Efficiency | 100% fly ash recycling and wastewater recycling. |
| Risk/Opportunity | Description |
|---|---|
| Risk 1: Flood-Induced Shutdowns of Hydropower Plants |
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| Risk 2: Escalating Coal Cess and Thermal Efficiency Challenges |
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| Opportunity 1: Shift in Consumer Preference |
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At JSW Energy, we aim to act in collaboration with stakeholders and create value for them. We engage with various stakeholders such as industry, government and regulators, customers in the policy advocacy efforts. Across all our operational locations, we follow a well-defined and rigorous process to evaluate and prioritise significant public policy issues.
| Issue or topic | Corporate Position | Description of Position / Engagement |
|---|---|---|
| Enhancement and maintenance of power systems | Support | We are a member of Northern Region Power Committee (NRPC) and Southern Region Power Committee (SRPC) who are working towards maintenance and improving the performance of grid. We expect our efforts through NRPC and SRPC would help in improving the distribution of power inter-state and inter-region, through maintenance of the power distribution system and to resolve issues related to efficiency and economy of the power system. |
| Enhancing energy transmission and distribution | Support | We are a member of Association of Power Producers (APP). Through APP we are working towards bridging the gap between private sector and government of India for efficient transmission and distribution of power to customers. |
| Enhancement and maintenance of power systems (Grid reliability) | Support | We are a member of Western Regional Power Committee (WRPC), which plays a critical role in ensuring the reliability and stability of the power grid in the western region of India. Through WRPC, we actively participate in initiatives aimed at improving grid performance, optimising power distribution across states, and addressing operational challenges. Our engagement helps in enhancing coordination among stakeholders, ensuring efficient power flow, and contributing to the overall economy and efficiency of the regional power system. |
