As India is preparing for its carbon market launch and envisions a Net Zero future by 2070, diversified conglomerate Aditya Birla Group is positioning itself at the forefront of industrial decarbonisation. From UltraTech Cement’s SBTi-validated targets and Hindalco’s renewable-powered smelters to ABFRL’s push for circular fashion, the Group claimed to be embedding sustainability into its business strategy and innovation pipelines. In a conversation with BW Businessworld, Deeksha Vats, Chief Sustainability Officer, Aditya Birla Group, explains how the company is aligning near-term action with long-term ambition, leveraging ‘sustainability 3.0’ to shift from disclosure to demonstrable impact, and preparing for a climate-resilient future by 2047.

What concrete milestones is your company setting for 2047 to ensure your net-zero journey is credible, measurable, and aligned with global climate benchmarks?
At Aditya Birla Group, we are a diversified conglomerate with operations across sectors such as cement, aluminium, carbon black, textiles, chemicals, financial services, paints, and renewable energy. Recognising this diversity, we have adopted a dual approach—a group-level ambition supported by sector-specific targets and pathways. In recognition of this diversity, we follow a multi-speed, sector-specific approach anchored in a Group-level ambition of Net Zero by 2050, with clear near-term targets at the business level. Importantly, several of our businesses have already set near-term emission reduction targets, and two companies – UltraTech Cement and Aditya Birla Fashion & Retail (ABFRL) – have had their targets independently validated by the Science Based Targets initiative (SBTi).

UltraTech Cement has committed to a 27 per cent Scope 1 reduction (base year: FY2017) and 69 per cent Scope 2 reduction per ton of cementitious material by FY2032. ABFRL targets a 54.6 per cent absolute reduction in Scope 1 and 2 emissions and a 32.5 per cent reduction in Scope 3 emissions by FY2033. Meanwhile, Birla Carbon, Hindalco, and Novelis have announced net-zero targets by 2050 with interim goals.

On the clean energy front, UltraTech has become India’s first industrial consumer to achieve 1 GW of renewable energy installations. Hindalco is pioneering a 100 MW round-the-clock renewable project integrating pumped hydro storage for its smelters, Aditya Birla Renewables is targeting 4.5 GW of capacity by FY2026, and ABFRL is deploying rooftop solar, biomass briquettes, and hybrid RE systems across its facilities.

The Group is also advancing innovation and collaborations. UltraTech is working with BITS Pilani Goa and IIT Madras on CCUS pilots under the DST programme, Hindalco is engaging with academia to develop next-gen low-carbon pathways, and Novelis has partnered with the VELUX Group to supply aluminium with over 70 per cent recycled content for the building sector.

On value chain emissions and transport decarbonisation, Hindalco and Grasim have piloted LNG-based trucking to lower freight emissions, while UltraTech is rolling out 500 EVs and piloting modal shifts to sea and river transport.

By 2047, we envision a significantly decarbonised Group across all major emission sources, powered largely by renewables, and leading global efforts in industrial innovation and solutions for a net-zero future, subject to the technologies evolving in a techno-commercially viable manner.

In a future where regenerative business becomes the benchmark, what systemic shifts is industry making today to lead that transformation by 2047?
A holistic view of what sustainability means for businesses is fundamental to the systemic shifts. This is through mainstreaming sustainability lens into business strategy at all stages and across the value chain. There is steadily increasing collaboration amongst key stakeholders across the value chain, considering risks as well as opportunities, both inside-out and outside-in. It allows businesses to be aware and in sync with global trends which are expanding and shrinking the world at the same time.

For example, UltraTech is a founding member of Global Cement & Concrete Association wherein it is working along with other domestic and global peers on defining and delivering on most sustainable pathways to cement and concrete making. This allows to broaden the definition of sustainability through diverse regulations, end uses, stakeholder expectations, technological advancements among other things and acts as an excellent nudge to move the mean.

With Scope 4 emissions gaining traction, how is your company innovating to reduce downstream emissions—and is industry ready to track and report these benefits?
At Aditya Birla Group, we believe our role in the climate transition extends beyond operations. Many of our businesses are at the forefront of enabling downstream decarbonisation through the materials and solutions we provide. While Scope 4 (avoided emissions) is still evolving, our innovations are already delivering measurable climate benefits across sectors like transport, infrastructure, renewables, and energy storage.

UltraTech Cement is contributing to reduced tailpipe emissions through its use in projects like the Mumbai and Bengaluru Metro, while also adopting greener cement formulations. Hindalco supplies lightweight aluminium for EVs and copper conductors for renewable energy systems, with its products finding applications in EV chassis, battery enclosures, and power transmission. Birla Carbon offers sustainable carbon black made from end-of-life tires, used in rubber and plastics. Meanwhile, ABFRL is integrating circularity and recycled fibres into its fashion lines, driving sustainable practices in the apparel sector.

As ESG 2.0 redefines credibility, how can organisations shift from disclosure to demonstrable impact across environmental, social, and governance metrics?
ESG 2.0 is a pivot—moving beyond disclosure-led compliance to demand real-world impact, business integration, and stakeholder relevance. At Aditya Birla Group, we call this evolved approach Sustainability 3.0. It is grounded in the belief that sustainability is not just a responsibility, but a practical enabler of performance, innovation, and future readiness.

Structured around three imperatives—People, Planet, and Product—Sustainability 3.0 drives both value protection and value creation. This has evolved from risk mitigation (Sustainability 1.0) to business integration (2.0), to financial quantification and impact delivery (3.0).

Our ESG goals are embedded into leadership KPIs, signalling that sustainability is a core performance imperative. Our disclosures align with globally recognised frameworks such as the SBTi, GRI, and TCFD, ensuring transparency and credibility with investors, regulators, and other stakeholders. The ESG 360 digital platform integrates Group-wide data on emissions, water, and waste, enabling real-time tracking, stronger governance, and faster action.

We are also investing in capability building and inclusive leadership through our People for Sustainability programme. Furthermore, sustainability is embedded into our innovation pipeline—from green fibre to low-carbon cement—ensuring that future-ready solutions are both impactful and scalable. Sustainability 3.0 is our blueprint to turn vision into velocity—creating impact that is inclusive, climate-aligned, and innovation-led.

How is your company planning to trace and reduce embedded (Scope 3) emissions across its global value chain by 2047?At Aditya Birla Group, most businesses have matured significantly in Scope 3 reporting. Robust systems are now in place to track and manage indirect emissions across our global value chain. For businesses like Novelis and ABFRL, where Scope 3 emissions represent a significant share, strategic reduction efforts are already underway.

Key strategies for Scope 3 reduction include Supplier Engagement, where sustainable supplier engagement initiatives are underway, focusing on GHG performance; Green Procurement, with Birla Estates integrating carbon assessments into project design and other businesses adopting low-carbon materials, clinker substitutes, and sustainable fibres; Digital Traceability, through pilots of product-level LCAs, blockchain tools, and digital MRV systems to improve visibility; and Industry Collaboration, where we are active in platforms such as IAI, WBCSD, and GCCA to harmonise Scope 3 methods and boost low-carbon demand.

 As India launches its carbon market in 2026, how do you see it driving meaningful change—and what safeguards are necessary?
India’s carbon market could be a powerful lever for decarbonisation if implemented with rigour and transparency, offering key opportunities such as cost-effective abatement by enabling emissions reduction where it is most efficient, price discovery that can signal innovation and investment in climate solutions, and monetisation of ecosystem services to support reforestation, clean technologies, and carbon sinks. With the right checks and incentives, the carbon market can significantly accelerate India’s path to net zero.